CropProtectionIndustryOverview
GeneralOverview
The crop protection industry is experiencing rapid global growth, particularly in Vietnam, where it plays a crucial role in enhancing agricultural productivity Crop protection products are essential for farmers, enabling them to cultivate healthy and profitable crops Companies in this sector are committed to sustainably feeding the world by delivering high-quality agricultural products that increase crop yields and ensure a nutritious food supply Their mission focuses on achieving higher quantity, quality, and sustainability in the global food supply chain.
Populationg r o w t h a n d g r e a t e r e c o n o m i c p r o s p e r i t y ise m e r g i n g market w i l l d r i v e f u t u r e demandforfoodandfeedproduction.Thepopulationis expectedtorise fromarounds e v e n billiontomorethanninebillionin2050.Mostofthispopulationgrowthwilloc curind ev el o p i n g countries.TheCAGRis1%percentyearonyeargrowthofpopulation.
Inp a r a l l e l, a g r e a t e r n u m b e r o f p e o p l e w i l l e x p e r i e n c e i n c r e a s e d w e a l t h a n d h i g h e r purchasingpower,andasaresultwillincreaseconsumptionofprocessedfood,meat ,dairyand fish Ag ri cult ure mustmeetthisdemandtoprovide enoughfoodand feedproductiontoo urcurrentdemandofworld.
Vietnam’soverview
Overthepastyears,Vietnam’sagricultureproductionhasmadesignificanta c h i e v e m e n t s , c o n t r i b u t i n g t o t h e n a t i o n a l f o o d security,e c o n o m i c d e v e l o p m e n t , t r a d e b a l a n c e , r e d u c i n g i n f l a t i o n , d e f e n d i n g t h e t e r r i t o r y a s w e l l a s s t a b i l i z i n g s o c i o - p o l i t i c a l situationinVietnam.AlthoughVietnamhasundergoneobviouschangesineconomica ndl a b o r s t r u c t u r e , s o f a r , moret h a n 7 0 % o f Vietnamesep o p u l a t i o n l i v e s i n t h e r u r a l a r e a s T h e r e f o r e , agricultureproductionistheirmainlivelihoods.
Fori n s t a n c e , V i e t n a m enjoysa g o o d l o c a t i o n t o i n v e s t t h e c r o p p r o t e c t i o n w i t h ash u g e a g r i c u l t u r e a r a b l e l a n d a n d h i g h e s t l a n d p r o d u c t i v i t y c o m p a r e d t o C a m b o d i a , L a o s T h a i l a n d , r e s p e c t i v e l y ManyfamouscompaniessuchasSygenta,Bayer,Dow,DuPontandothersenjoyi nvestingtheirscienceproductsonagricultureproducts’treatmentoncrop.
Vietnam has seen a continuous increase in agricultural exports, establishing itself as one of the world's leading exporters of products such as rice, rubber, coffee, and pepper The country has achieved an impressive poverty reduction rate of 2% per year over an extended period Currently, Vietnam ranks as the second-largest rice exporter globally, following Thailand The nation's agricultural sector plays a crucial role in promoting social stability, political security, and environmental protection.
Thecontributionofagricultural productsaccountstothetotalexportsof Vietn amisr e m a r k ab l e from49%in2011to57.7%in2012.T h e exportvalueoftheagriculturalsector ha s significantlyincreasedsince2000(except2009).
ChallengeandDifficultyofAgricultureinVietnam
Despiteseveralinefficienciesandweaknesses,Vietnam’sagricultureisnowam ajord r i v e r i n t h e d e v e l o p m e n t c o n t r i b u t e d t o G D P s e c t o r u p t o 20%.A g r i c u l t u r e p l a y s a n importantroleintradebalanceofVietnam.Currently,economicdevelopmen tdependsmuchonagriculture.Itisknownthatagricultureremainsthegreatadvantageof Vietnam,g i v e n i n t e r n a l l y i n t h e agreemento f T r a n s -
P a c i f i c P a r t n e r s h i p ( T P P ) I n t h e c o n t e x t o f integration,Vietnamincreasingly definesitsstrategicroleinworldagriculture.Although, t h e r e aremanydifficultiesahead,wi ththenon- stopefforts,Vietnamagriculturewillcatchitschance,haveflexible,creativemethodsinthenear futuretodevelopendlessly.
CompanyIntroduction
Nowadays,businessownersfacethechallengesofmaintainingproductivity,aswellask e e p i n g theirworkforceengagedandmotivated.Thegreatestchallengeofanorganizationist o ensurethewell beingofitsemployee.Managerisfacingwiththemostcomplexareasinmanagingtheiremplo yees.Satisfiedemployeestendtoworkmoreproductivitythanemployeeshavenotsatisfied ThelowlevelofJobSatisfaction,itcouldmadehigha b s e n t e e i s m sinceemployeeswillsee kreasonstodonotworkortrytofindotheropportunity.Inaddition,Itcouldmadepotentiallowperfor manceintheorganization.
DuPontVietnamLtdisaglobalcompany,established itsbusiness cropprotecti on’sproductin1998anditsheadofficelocatedinHoChiMinhCity,Vietnam.Thecomp anyh a s builtthestrongnetworkofsales&marketingforcewith120includingISP(Indivi dualS e r v i c e Provider)andMDO(MarketingDevelopOfficer)inNorthern,CentralandSouthernr e g i o n s o f Vietnam.Int h e l a s t t w o years,t h e c o m p a n y h a s c o n f r o n t e d w i t h l o w s a l e s performanceyearafteryearupto10%andveryhighturnoverrateinSaleDepartmentupto2 5
% i n 2 0 1 4 H e n c e , t h i s d i s s e r t a t i o n t o f o c u s o n v i t a l f a c t o r s t h a t a f f e c t t o t h e h i g h turnoverrateofemployeeandlowsalesperformance Inthisstudy,Iwouldliketo focusonMekongdeltawith72ISPsandMDOssinceotherregionsareinstable,lessaffectedontheta rgetofsalesperformanceperyears.
CompanyBackground
DuPontVietnamLtdisaglobalsciencecompany,establisheditsbusinesscropp r o t e c t i o n ’ s productin1998anditsheadofficelocatedinHoChiMinhCity,Vietnam.
NameofCompany:DuPontVietnamLtdS h o r t na me:DuPontVietnam
Email:info.vietnam@vnm.dupont.comWebsite:www.dupont
Location:12ThongNhatStreet,SongThan2,IndustrialPark,DiAn,BinhDuong
ProblemContext
Agricultureofferingsbringinnovativescienceandsolutionstomeetthec h a l l e n g e f a c e d byfarmers todayand intothe future.DuPont, VietNamLtd has threekindso f portfolioproductsincropprotection:insecticide,herbicideandfungicide.I thasaround
DuPont employs 100 official staff and 120 additional personnel through service contracts based on performance against targets The company collaborates with three distributors and 80 dealers, supported by over 1,000 sub-dealers (retailers) Its market presence is distributed with 10% in the North, 10% in Central and South East, and a significant 80% in the Mekong Delta DuPont aims to enhance sales and engagement with sub-dealers, although sales have recently declined by up to 10% over the past two years Meanwhile, the turnover for ISP and MDO has risen by up to 25% Sales outcomes are closely tied to stock prices in the market, with major stockholders exerting pressure to improve DuPont's stock value It is imperative for DuPont to identify the key issues affecting these results and propose effective solutions to address organizational challenges.
DuPontsetsupitsbusinessorganizationalstructureintoparticularsectionsthatf ocu se sonsalesachievement.Indetails,salesdivisionisquiteheavyofallocationthattheen d leve l(ISP)hasthreesupervisor’slevelinwhichtwolevelsbelongtoheadcountofthecompanya n d o n e l e v e l b e l o n g s t o s e r v i c e c o n t r a c t o r M a r k e t i n g d i v i s i o n h a s t h e s ame structure.ThisstructurepresentstheSalesManagersandMarketingManagerisfacingwitht h e s t r u g g l e i n m a n a g i n g t h e e m p l o y e e s i n c e t h e r e a r e t h r e e l e v e l o f supervisiona n d i mmediatelysupervisorisnotaheadcountofthecompany.
GeneralSymptom
The primary goal of business owners is to achieve profitability, with employees playing a crucial role in determining a company's success According to Kim and Rhee (2011), employees are among the most important strategic assets of an organization Boudreau and Ramstad (2007) emphasize that recognizing employees as critical components of human capital is essential for strategic success and competitive advantage Therefore, enhancing employee satisfaction not only boosts productivity but also fosters a cost-efficient workforce, which cultivates quality external relationships and protects the company's reputation, ultimately serving as its most valuable asset (Berger, 2008).
Firstly,h e r e i s t h e t u r n o v e r i n c i d e n t t h a t h a p p e n e d i n t h e D u P o n t Vietna m.T h e s e employeesareISPsandMDOswhoworkundersalesteamandmarketingteam.Therewer e1 2 outof 62peoplein 2014and17outof 68peoplein2014leftthecompanyupto25%outoftotal employeebased onthe annualreportofHumanResource(HR)Department.In fact,t h i s turnoverishighturnoverratiosincetheaverageturnoverrateofallindustryinVietnamisap proximately10%(Gioi,2015).
Employeet u r n o v e r w e l l d e f i n e d a s r e p l a c i n g a terminatione m p l o y e e w i t h a n e w employee.Thisprocessiscompletedoncethereplacementtofilltheopenvacan cycalledsuccessfullyrecruited.Theturnoverrateisth e numberofemployeewholeavesduringa p e r i o d dividedbytheaveragenumberofemployeesduringaperiod(Price,1977)
High turnover rates, continuous recruitment, and significant training costs pose challenges for companies striving for success (Grig, 2005) The expenses associated with turnover vary depending on the specific mix of employees; while some are relatively inexpensive to replace, others can be significantly costlier Even the turnover of less skilled workers can incur substantial costs Hale (1998) noted that recruitment expenses can range from 50% to 60% of an employee's first-year salary, reaching up to 100% for high-skill positions Various costs linked to employee turnover include separation costs (such as exit interviews), replacement costs (like recruiting and interviewing), training for new hires, and general administrative expenses Additionally, reduced efficiency during the training period can lead to lower performance (Dess and Shaw, 2001) Woodruffe (1999) emphasized that every employee who leaves represents a lost investment, a sunk cost for the organization.
( 2 0 1 2)s t a t e d , “ E m p l o y e e t u r n o v e r i s o n e o f t h e largestthoughwidelyunknowncost andorganizationfaces”.AccordingtoHinkin&Bruce( 2 0 0 0 ) , anycompanythatisexperiencing ahighdegreeofturnoverisincurringunnecessaryf i n a n c i a l costsaswellasdecreasesinservicequal ityandthequalityofworklife.Similarly,S i l v e r t h o r n e (2004)notedthat,“turnovercausessignific antexpensetoanorganization,”
Category Cost Element Table3:Turnover-costcategories
Salesp e r f o r m a n c e i s t h e measurements a l e s r e s u l t s t h a t a n e m p l o y e e mak esf o r a bu si ness Highsales numbers determinethe succes s ofthecompanynomatte riftheydobusinesswithgoodsorservices.Intheotherwords,themoreproductsacompanys ellstheh ig hert h e i r p r o f i t i s Conversely,L o w s a l e s performanceh a s s h o w n t h e w e a k o f s a l e s r e s o u r c e aswellasmarketingstrategyintermofcreatingdemandandsalesin themarketplace.
Secondly,h e r e i s t h e s a l e s performancei n c i d e n t i n 2 0 1 3 a n d 2 0 1 4 c o m p a r e d w i t h target.Bothyear2013and2014hasdeclinedcomparedtargetandlastyear.Forinstance,2 0 1 3 salesresultisdecreased6%vs.targetand7%vs.2012.In2014,salesresult isreduced9%vs targetand10%vs 2013based ontheGCCAP global system o f D u P o n t Refertotable2-
SalesResultsofCropProtectioninVietnamwereshownthatothercompetitorsin2013ares tillslowlygrowthupto10%butlowerthanlastyear.In2014,theystillkeeptheg r o w th upto4%wh ileDuPonthasnegativeresultsintheseyears.
YEAR TargetSales SalesResults %vs.target Vs.LY
Notably,DuPontVietnamdidnot achievethetargetortheresultsevenlowerthanlastyear.T h i s p o o r s a l e s p e r f o r m a n c e l e a d s h i g h i n v e n t o r y r e l a t e d c o s t , h i g h p r o d u c t m a n a g e m e n t cost,lowsaleproducti vitycostandpoororderfulfillmentperformance(Jain,2008).Low sales performanceiscriticalissueofallcompanysincesales arethelifeblood oft hebusiness.
Whenthe salesreduce,the companymust considercuttingcost of manyareas.Th us, Lowsaleperformanceisthesecondbadsymptomtothecompany.
Herea r e somet e n t a t i v e problems,w h i c h t h e w r i t e r h a s f o u n d throught h e i n - d e p t h interviewands e c o n d a r y dataf r o m theannualreportsofHR,Finance,MarketingDepart menta n d o t h e r o u t s i d e r e s o u r c e F o r i n s t a n c e , a s a m p l e off i v e p e o p l e w h o a r e managersandmid- levelmanagersatDuPontVietnamwastargetedforindepthinterview.T h e s e peoplehav ethegoodexperienceandknowledgetoevaluatethecurrentsituationatth e company.
TentativeProblems
Referringtothetranscriptoftheindepthinterviewinchapter4,allfivepeoplerevealthatthec riticalproblemcanbeCompensationandBenefit.Mostofthemhavebeenworkingf o r thecompan yfrom5yearsabove.Theysaid,“Theturnover,intentionhappensduetolowj o b s a t i s f a c t i o n o n p a y , i n c e n t i v e s a l e s p r o g r a m a n d b e n e f i t o f s o c i a l insuranceandothers.I n f a c t , t h e y don o t s e e t h e b r i g h t f u t u r e t o h a v e a long- termc o m m i t m e n t t o t h e co mp a n y Fixpayislowerthanbenchmarkandothercompanieshave paidsocialinsurancesincet h e y a r e a h e a d c o u n t o f t h e c o m p a n y V a r i a b l e p a y i s h a r d t o a c h i e v e s i n c e t h e regressionofthecompany’ssalesresultsaswellaslevelpercent ageofachievementwouldf r o m 90%oftargetnumber.Consequently,theemployeesmaylos etheirinspirationworking toimpacttheirleavingaswellaspotentialoflowsalesfromy ear2013-
2014”.Generals p e a k i n g , e m p l o y e e s h a v e t h e r i g h t t o c h o o s e t o w o r k a t g o o d w o r k i n g en v i ro n m e nt Currently,I S P s a n d M D O s i g n t h e s e r v i c e c o n t r a c t w i t h f i x a n d v a r i a b l e paymentwithoutanybenefitsuchassocialinsuranceandune mploymentinsurance.Herrya n d N o o n ( 2 0 0 1 ) d e f i n e d p a y a s p a y m e n t , w i t h m a n y c o m p o n e n t s s u c h a s b a s i c salary,b e n e f i t s , bonuses,incentives.Martocchio(1 998)describedthatcompensationincludebothintrinsicrewardsandextrinsicrewards.Extrins icrewardsincludemonetaryandnon-m o n e t a r y rewards.Non- monetaryrewardsareapartfrombasicpaysuchasbenefits.
Accordingtosurveyresults,thereisnegativecorrelationcoefficientrelationshipb e t w e e n non- monetarycompensationinitiatives andsalesforceturnover(Johnatall,2013).For instance,ISPsandMDOsgetnothingfrombenefitofsocialinsurance,andless commissionofvariable paymentwhichhasstrong influenceonemployeemotivationa ndr e t e n t i o n accordingtoBarton(2002).Notably,payandbenefitisanimportantcompo nentfo r t h e r e t e n t i o n o f employeessincetheyf e e l i n e q u a l i t y r e g a r d i n g payb e t w e e n t h e i r c o m p a n y andother’scompanytheytendedtodissatisfiedanddisappoint with theircompany.L e s s paya s comparedt o w o r k d o n e i s o n e o f t h a t extrinsicf a c t o r w h i c h i s responsibleforjobdissatisfaction(Robbins,2003).
Thebasesalaryisquitegoodwithaverageis10millionVND.However,itexcludeda l l soc ial,unemploymentandhealthinsurancewithtotally11.5%accordingtoLaborlaw.L i k ew i s e , t h e a v e r a g e b a s e s a l a r y o f s a l e s p e o p l e i s a r o u n d 1 0 m i l l i o n V N D a c c o r d i n g tosomesurveysinVietnam.ThedifferentbetweenDuPontandotherscompanyinth esamei n d u s t r y isnosocialinsuranceandunemploymentinsurance.
Inaddition,Salesincentiveprogramsbelongscompensationpartareintendedtodrivesale srevenuetomotivateandrewardsalespeopleandcustomers.Acommissionmotivatest h e sales fo rc e t o w or k h a r d e r ( Co ug hl an & J o s e p h , 2 0 1 2 ) In th e study,U S c o m p a n ie s used$200billionU.S.onsalesforceincentivesin2010(Zoltners,Sinha&Lorimer,2012).A cco r d in g toresultofsurvey,therewasastrongpositivecorrelationbetweenthelevelofs alesi n c e n t i v e s a n d t h e l e v e l o f s a l e s p e r f o r m a n c e ( a c h i e v e m e n t )( B r a n t e , 2 0 0 4 ) S a l e s incentiveswouldhaveanimpactindrivings a l e s r e v e n u e i s c o n s i s t e n t ( e g , B l a t t b e r g
& W i s n i e w s k i , 1989:Murphye t al.,2004).Tobemoreclearly aboutISPsandMDOsco m m i ss i o n scheme, to understandhowhardtoachievethem,the belowtable wouldclarifymore.
0 % o f t arg et theywillgetnothingfromvariablecost.Iftheyachievefrom90%to100%,theywillg et 1 0 0 % o f V a r i a b l e amount,i f t h e y ac h i e v e f r o m 1 0 0 % -
1 1 0 % , t h e r e w i l l b e 1 2 0 % o f V a r i a b l e amount.Fromabove120%andlowerthan1 50%comparedtarget, theywillget2 0 0% o f v a r i a b l e a m o u n t , f i n a l p o i n t i s > 1 5 0 % , theyw i l l g e t 300%o f v a r i a b l e a m o u n t Y ear 2014isachallengingyearsincethesales islowerthantargetupto30%;ofcourse,theyachievenothingfromvariablecost.
Briefly,t h e f i r s t p r o b l e m o f D u P o n t V i e t n a m i s p o o r p a y , p o o r c o m p e n s a t i o n a n d b e n e f i t s Itdrasticallydecreasestheworkingmotivation,createtheturnover intentionanda f f e c t tosalesperformanceofthecompany.
Ms Tien, a Regional Leader managing the ISP team in Long An, Tien Giang, and Ben Tre Province for a crop protection business, expressed concerns about the dissatisfaction among ISP team members regarding their treatment and the lack of selling skills from their direct supervisors Similarly, Ms Diep, an HR Executive overseeing service contract management, noted that many employees cite dissatisfaction with their direct bosses as a primary reason for leaving, highlighting issues of fairness, inconsistent work practices, and insufficient support from consultants.
Leaders often treat their subordinates differently, which significantly impacts overall job satisfaction A survey revealed that 77% of American employees are unhappy with their jobs, with poor treatment from bosses being a primary reason for employee turnover Research indicates that employees who stay in their positions under poor supervision experience lower job satisfaction and increased work-family conflict Effective supervision plays a crucial role in employee turnover decisions, and inadequate supervisory skills can negatively affect sales performance, leading to disappointment and underperformance among team members Consequently, poor relationships between supervisors and subordinates contribute to low job satisfaction Numerous studies highlight supervisory behaviors that can enhance employee performance, emphasizing the importance of supervisors in developing their sales teams for optimal results There is a direct correlation between a sales professional's success and the competence, value, and mentoring abilities of their supervisors A survey found that over 80% of employees in a seven-country sample perceived their supervisors as supportive, indicating the significance of positive supervisory relationships.
Briefly,t h e s e c o n d p r o b l e m is P o o r s u p e r v i s o r S k i l l s i n s a l e s t e a m and marke tingteam,t hi sp ro bl em steadilyleadsto tu rn ov er i n t e n t i o n and lo wsa les performancei nt wo r e c e n t years.
Sales managers at DuPont Vietnam, including Ms Tien, express concerns over job security among ISPs and MDOs in the current environment They note that contracts are signed annually with no flexibility in duration, leading to a loss of stability and growing anxiety about future career growth The lack of social and unemployment insurance further exacerbates fears regarding financial security during retirement or unexpected job loss Job security is essential for employees, as it fosters peace of mind, focus, and overall satisfaction at work Research indicates a strong positive correlation between job security and organizational outcomes, highlighting its role as a key factor in job satisfaction Factors such as work environment, promotions, and compensation also contribute to employee efficiency, while a negative association exists between job security and turnover intentions.
Inefficient internal communication among team members, supervisors, and the marketing and sales teams poses a significant challenge, as highlighted by Mr Vinh, Business Manager, Mr Minh, Sales Manager, Mr Cole, Marketing Manager, and Ms Tien, Regional Sales Leader They noted that the lack of connection, understanding, and cooperation, particularly between sales and marketing, leads to ambiguity, insufficient information, and low teamwork spirit Effective communication is crucial for any organization, regardless of size or industry, to thrive in a competitive market It involves sharing ideas, information, and messages, which are vital for organizational success (Hargie, Dickson & Tourish, 2004) Strong internal communication boosts productivity and reduces absenteeism and costs (Argenti, 2007) Conversely, poor communication can result in negative consequences, including high employee turnover and ineffective coordination across departments (Muema, 2012; Hargie, 2004).
Thei n d e p t h i n t e r v i e w h e l p s t h e w r i t e r f i n d i n g o u t t h e s e f o u r t e n t a t i v e p r o b l e m s Somef a c t o r s a r e n o t s a t i s f i e d f r o m w o r k f o r c e s u c h a s c o m p e n s a t i o n a n d b e n e f i t , s a l e s incentiveprogram,supervisor behavior,job securityandinefficientinternal communicationa s w e l l a s l o w o f c o w o r k e r Theyc a u s e t w o b a d s y m p t o m s i n t h e c o m p a n y l i k e h i g h turnoverandlowsalesperformancerespectively.Aftershowingthet entativeproblemsand thelistofsomefacets,thewriterconductstoreviewliteratureinformedtoidentifytherealp r o b l e m
Firstly,therearemanystudiestoindicatethefactorsinfluenceJob Satisfaction (i.e.B e l l e n g e r , Wilco&Ingram,1984;Coster,1992;Strymdom&Meyer,2002citedinTan vir
Job satisfaction is influenced by various factors, including job security, promotion opportunities, working conditions, financial rewards, and communication (Shahi, 2012) Lawrence (2005) identified ten key aspects of job satisfaction, such as type of work, coworkers, company culture, advancement, pay, supervision, hours, benefits, and working conditions Smith, Kendall, and Hulin (1969) focused on five main facets: pay, promotion, coworkers, and supervision The Job Satisfaction Survey developed by Spector (1985, 1994) outlines nine facets, including pay, promotion, benefits, working conditions, coworkers, rewards, supervision, nature of work, and communication Additional research by Ladebo (2005) emphasized factors such as salary, staff, administration, and the nature of work Interpersonal behavior, working conditions, leadership style, and rewards are also positively associated with job satisfaction among employees (Donovan, Drasgow, and Munson, 1998) Each of these facets has been shown to correlate positively with overall job satisfaction (Spector, 1985; Warr, 1996).
1 9 9 5 , Huning&T ho mas,20 11 , S a a r i & J u d g e , 2 0 0 4 ) A d d i t i o n a l l y , T a l a t e t a l ( 2 0 1 2 ) a n d ( V r o o m , 1 9 6 4 ) claimedthatlowjobsatisfactionincreasestheabsenteeismandturnoverrates(Clarketal.,1 9 9 7 )
Thirdly,manyliteraturesinformedalsoprovedthatjobsatisfactionstronglyaffectstot h e resultsofsales(Fuetal,2011)andFu&Deshpande(2013)fromusingmodelSEMtoexamineo n476employeesworkinginChinesecompanywithconfirmedtheresultsofjobs a t i s f a c t i o n s t r o n g l y i n f l u e n c e d t o j o b p e r f o r m a n c e I n a d d i t i o n , H i r a a n d W a q a s ( 2 0
1 2 ) f o u n d therewasapositiverelationshipbetweenjobsatisfactionandjobperfor manceinasurvey of335respondentsthatworkinmiddlelevelofbankingsector.Iqbal etal.
Jobs a t i s f a c t i o n t e l l s h o w muche m p l o y e e l i k e t h e i r j o b s J o b S a t i s f a c t i o n (JS)i s d ef i n ed a s " t h e e x t e n t t o w h i c h p e o p l e l i k e ( s a t i s f a c t i o n ) o r d i s l i k e ( d i s s a t i s f a c t i o n ) t h e i r wo r k " ( S p e c t o r , 1 9 9 7 , p.2 ) I f workersfeelr e s p e c t e d a n d s a t i s f i e d a t w o r k i t ist h e foundationforeffectivework.Intheorganiza tion’spointofview,goodjobsatisfactioncanl e a d tobetterperformanceoftheworkersthataff ectstheresultofthecompany.Employeesatisfactionhasgenerallyconsideredasthedriver oftheemployeeretentionandemployeeproductivity.Satisfiedemployeesareincreasingp roductivity,responsiveness, quality,andcustomerservice(Kaplan,1996).Inaddition,
Jobsatisfaction,turnover,personalitytypes,motivationa n d r o l e clarityi n s t r o n g re lationshipsalesperformance( P r e d m o r e ,
1996;McNeilly,Russ,1992).Suchemployeesaremorelikelytoexperiencehigherlevelsofj o b s at isf act io na nd sh o u l d be l es s li ke ly tol e a v e a n or ga niz at io n ( H a n s o n &M i l l e r , J r , 2 0 0 2 )
Jobsatisfactionplaysakeyelementtosucceedanyorganization.Oncontrast,low j o b satisfaction in workplace is aser io us pr ob le m andbr in gs manyconsequencesf orthec o m p a n y such asl oss o f productivity,a b s e n t e e i s m , em pl oyee t u r n o v e r l o w c o m m i t m e n t , s a l e s p e r f o r m a n c e ( B e n k h o f f , 1 9 9 7 ) I n t h i s c a s e , D u P o n t Vietna m,l o w j o b s a t i s f a c t i o n c a u s e s highturnoverrateandpoorsalesresultsaretheclearlyvisualne gativeresults.
Firstly,t h i s i s h i g h t u r n o v e r r a t e , i n h u m a n r e s o u r c e c o n t e x t e m p l o y e e t u r n o v e r u n d e r s t a n d r e p l a c i n g a t e r m i n a t i o n e m p l o y e e w i t h a n e w e m p l o y e e I t c a n b e e x t r e m e l y devastating f o r anyo r g a n i z a t i o n I t makese m p l o y e e d i f f i c u l t t o maintaina s t e a d y a n d successfuloperation.MacintoshandD o h e r t y (20 10)statedt h a t j o b s a t i s f a c t i o n s t r o n g l y i n f l u e n c e d theintentionamongemployees. Inthisstudy,TurnoverrateinDuPontVietnami s highupto25%muchhigherthan10%avera geindustry(refertotable2).Itisnotonlyt hec a us e makingt h e c o m p a n y lost t h e t a l e n t b u t a ls o m a k e t h e c o m p a n y spend a l o t ofm o n e y ofcostofturnoverintentionthatisme ntionedatthefirstbadsymptomoftherealp r o b l e m
Secondly,t h i s i s l o w s a l e s performancei n 2 0 1 3 a n d 2 0 1 4 c o m p a r e d w i t h o t h e r c o m p e t i t o r s i n t h e s a m e i n d u s t r y ( r e f e r t o t a b l e 3 ) t o r e f l e c t t h e s i g n i f i c a n t r e d u c e salesr e l a t e d tothejobsatisfactionwhichistherealproblem.Itisnotonlythecau sereflectsthew ea k competitiveadvantageandhealthofbusiness butalsocreateahig hcostofproduct inventory,managementimprovementandothersrelatedfinancecost.Itismentionedatthesecond badsymptomoftherealproblem.
Afterf i n d i n g o u t t h e r e a l p r o b l e m , t o identifyaccuracyt h e r o o t c a u s e s o f c e n t r a l problem,t h e w r i t e r l i s t s o u t t h e p o t e n t i a l c a u s e s byc o n d u c t i n g t h e r e v i e w o f l i t e r a t u r e informed.Fromtheliterature r ev iew listofr es u l t s , following tabl e8 - L i t e r a t u r e informed r e v i e w –
Factorsi n f l u e n c e s j o b s a t i s f a c t i o n i n C h a p t e r 4 T h e w r i t e r mappedw i t h f o u r tentativeproblemsfromindepthinterviewandconfirmsthepotentialcausesofkeyp r o b l e m - J o b satisfactionasbelowC a u s e andEffectTree
Aftercrosschecking w it h the literatures informedandcombining withresultsr eceivingfromindepthinterview,thecausesandeffectmapisbuiltasbelow:
To verify the root causes of job satisfaction, a quantitative evaluation method was employed The writer conducted a mini-survey to identify the factors that contribute to employee dissatisfaction, using a questionnaire based on Spector's (1985) job satisfaction survey The questionnaire was revised to better align with the thesis's objectives, focusing on four key factors derived from a cause-effect tree Employees rated their satisfaction on a scale from 1 ("Strongly Dissatisfied") to 5 ("Very Satisfied") Out of 72 employees who received the questionnaire via email, 68 responses were valid, resulting in a response rate of 94.4% The results indicated that supervision was a significant factor in job satisfaction, with 42.6% of respondents reporting "Very Dissatisfied" and 27.9% "Dissatisfied," leading to a low mean satisfaction score of 1.87 This suggests that employees' feelings about their immediate supervisor's treatment, skills, and support are critical to overall job satisfaction at DuPont Vietnam.
The supervisor-subordinate relationship is crucial for organizational success, as it fosters support, trust, information sharing, and respect Research indicates that a positive dynamic between supervisors and subordinates enhances employee attitudes and performance (Gerstner & Day, 1997; Nystrom, 1990) Furthermore, studies highlight how a supervisor's attitude can significantly impact subordinate productivity, job satisfaction, turnover, and absenteeism (Fiorelli, 1988; Busch, 1980; Martin and Hunt, 1980) Ultimately, employees with strong supervisor-subordinate relationships tend to experience less stress and view organizational policies more positively (Joseph et al., 2011).
Supervisors play a crucial role in mentoring and coaching, as strong communication fosters effective relationships between them and their subordinates (Campbell & Swift, 2006) These robust coaching dynamics help alleviate the challenges of understanding and executing tasks at work They empower subordinates to articulate their needs clearly and seek guidance, policies, and explanations to address job-related issues Consequently, developing coaching skills is essential for supervisors to effectively manage and lead their teams Recognizing the distinct roles and skills of leaders and team members is vital, as successful coaching hinges on the alignment between them through regular interactions.
Front line Developfullpotentialof Implement 5- Achievethesales leaders frontlineleaderswith step coaching performance with proven sales and process successfulthetarget marketing coaching MotivationSkills Increasethelevelof techniques Management satisfiedsupervisors
Assess selling and Skills fromteammembers marketing skillsf o r Project Reduce turnover eachmemberofteam Management rate
Secondly,RewardandRecognitionisaformofemployeemotivationinwhichac o m p a n y r e c o g n i z e s , praises,andthanksemployeesfortheircontribution.Therewardsandr e co g n i ti o n keepshighspiritofjobsatisfactionamongemployeestocreatethehighperformanceinorga nization.Freedman(1978)statedthate f f e c t i v e rewardsandrecognitionproducedtheencou raged morale,whichmotivates employeest o e x c e l i n t h e i r p e r f o r m a n c e E m p l o y e e s t a k e r e c o g n i t i o n ast h e i r f e e l i n g s o f v a l u e a n d a p p r e c i a t i o n T h e r e f o r e , t h e c l e a r r e w a r d a n d r e c o g n i t i o n s y s t e m w i t h p r o p e r K P I s applytospecificpositionwillhel pworkforceworkingwithhighmotivationtoachievethegoals.
Increaseindividual Timetodesignand Rewardwithgift productivity implementtheprogram certificates
Directandclear Moneycostforproper PeerRecognitionby performancefeedback rewards emails.
Highloyaltyand Traininghowtogivethe Bestemployeeintheyear satisfactionscorefrom recognition withoverseapackage customers Costofintroducingthe
Implementing regular team-building activities is essential for improving relationships between supervisors and subordinates These activities foster understanding, goal sharing, and effective collaboration, which are crucial for bridging gaps in the workplace (Heathfield, 2007) Team building enhances a team's effectiveness in achieving its objectives while addressing the needs of its members (Huse, 1980) Ultimately, it helps dismantle barriers between supervisors and subordinates, promotes employee-to-employee connections, and improves cross-functional communication, thereby cultivating a positive team spirit.
Tos u m u p , a l l o f t h r e e a l t e r n a t i v e s a b o v e w o u l d a f f e c t j o b s a t i s f a c t i o n a n d p r o d u c t i v i t y p os i t i v e l y Actually,t h e s e c o n d a n d t h i r d a l t e r n a t i v e t h a t t e a m b u i l d i n g a n d r e w a r d and recognitionprogramisimplementingbutstillneeds toimproveinsomeaspects.Thefirstalternativeismanagementtrainingprogramsthatcriti calonesincemostofmid- managerlevelsareshortcomingskillsofcoachingtheirteam,notmotivateteammembersinc r e a t i n g salesthatisimportantelementasabloodofbusiness.
SusanHeathfield,anindependentHRconsultant,conductedasurveyofover22,00 0employeeswhenaskingwhattheyfeltmadeamanagerabadmanager.Herearetheresults:
Forinstance,themajorityofpoorsupervisionislackofskillsandwellequippedbytrainingtopr ovidethesupporttotheirsubordinates.Ef fe ct iv e managementtraininghelpssupervisorstobui ldorstrengthentheskillsneededf o r betterresultsandt eam wo rk Th is m a n a g e m e n t t r a i n i n g c o v e r s b a s i c s k i l l s t h a t m a k e a d i f f e r e n c e i n o r g a n i z a t i o n a l perfor manceandfinancialresults.
Possible Solution 1 :ProvidingtheManagementTrainingprogramstotheprovinc es leadersandregionalleadersonhowtoeffectivenesscoachingtotheirteams.
Possible Solution 2 :Implementthe additional rewardandrecognitionwithclearKPIs forbothsupervisorsandsubordinates
Possiblesolution1i s t h e mostp r i o r i t y inthes o l u t i o n s M a n a g i n g a s a l e s a n d marketingteamisprobablythemostchallengingpositioninanyorganizationrequiringaseto f skills.Supervisorsareresponsibleforarangeofdiversetaskssuchascoaching,recruitment, planningandadministration.Theyarethemainelementinanorganizationwhod i r e c t l y i m p l e m e n t s p l a n s o f S a l e s a n d M a r k e t i n g H e a d Whena company’st a r g e t a n d strategiesi nyearly,q u a r t e r l y ormonthlyplanscanbecarriedo u t successfullyo r n o t d e p e n d i n g o nthesepositions.Theydeliverthemarketinformation,campaign,salesresultsa s theycoacha ndpushtheirsubordinatetodotheirjobs.
In any organization, having a potential solution is essential, though it may not always be the top priority Currently, DuPont Vietnam implements a Reward and Recognition program that aligns with its financial status and capacity To effectively motivate employees, the Board of Management should consider introducing special incentives It is crucial for them to establish clear criteria for applying these incentives in specific situations Additionally, carefully setting up Key Performance Indicators (KPIs) is necessary, particularly from the perspectives of sales and marketing Preparing clear KPIs and accurately predicting the costs of rewards can be time-consuming, especially after the Board has made its decisions.
Possiblesolution3 i s s u g g e s t e d t e a m b u i l d i n g a c t i v i t i e s f o r s e p a r a t e d g r o u p s t h a t g r e at l y i n c r e a s e a n d e f f e c t o n productivity,morale,j o b s a t i s f a c t i o n a n d t u r n o v e r r a t e s Currently,t e a m b u i l d i n g i s h e l d f o r w h o l e employeeso n c e timea yeara s s o c i a t e d w i t h internaltrainingandmeeting.Theplaceofthisactivityissuchas
DaNang,PhuQuocandCambodia,etc Inaddition,thesalesworkshopisheld2timesayearatCanThoprovince whereis themost convenienceplace togatherworkforcefrom 2-
3days.Likewise,some specialsalestrainingtothet ea m isheldatt h e o f f i ce withinternaltraini ngf r o m expertsf r o m DuPontGlobal.H owe ver , the l o c a t i o n w or ki ng of IS Ps andM
D Os isfarwayeacho t h e r s o t h a t theya r e l e s s f a c e - t o - f a c e meetingt o c o m m u n i c a t e a n d improvet h e c l o s e r e l a t i o n s h i p intheteam.Boa rdofmanagementwillconsidercreatingmoreopportunityforsupervisorandsubordinatetomeet bys e p a r a t e d g r o u p afterc a r e f u l l y c o n s i d e r i n g t h e f i n a n c i a l statusandca pacityofthecompany.
Tos u m u p , t h e f i r s t p o s s i b l e s o l u t i o n 1 i s s e l e c t e d a n d i m p l e m e n t e d t o e n h a n c e t h e s a l es skills,coachingskills,managementskillstoleadtheteamworkingwithhighesteff orta n d motivation
Theimplementationplanisincludedfivesteps,whichareobjectives,actions,people,c h a n g e organization,andcommunicationplan(Akenatall,2012)asbelowtable:
2 Engagestaffi n becomingmoreresponsible,self- motivatedandself- reliantintheirjobbyeffectivedelegationandmonito ringperformance
Communication,feedbackperformance,maintainsg oodperformance,delegation,coaching,motivation,p ersonaleffectiveness,buildingrelationshipswithstaf fs.
1.Informingtheplantohumanresourcemanagertod iscuss,getthefeedback,comments,andadjustplan
2 Sendingt h e planandc o s t estimatingt o Procu mbentandFinanceforanycomments.
Aqualitativeresearchdesignedisused.In- depthinterviewingisaqualitativeresearchtechniquethatinvolvesconductingintensiveindividua linterviewswith6ofrespondentstoe x p l o r e theirperspectivesonaparticularidea,program,orsitu ation
Ic o n d u c t t h e i n - d e p t h i n t e r v i e w w i t h f i v e employeesw h o a r e w o r k i n g i n d i f f e r e n t p o s i t i o n inclu dingBusinessManager,SaleManager,RegionSalesLeader,MarketingManager,andHRexecu tivethosewhohavegoodknowledgeandexperienceontheissue.Theyareinvitedtoanswersixopen- endquestions
Iwanttothankallofyouforyourtimetomeetmetoday.MynameisSinhNguyena n d Iama MasterdegreestudentatISB.Iwouldliketogetyoursupportwithmyd i s s e r t a t i o n researchone mployee’sturnoverintentionandsalesperformancereducedfrom2 0 1 3 to2014.Iwouldappre ciateyourresponseinmyresearch.Ihavesixquestionsopen- ended anditmaytakearound1hour.
Mr.Vinh:HelloSinh,MyfullnameisNguyenNgocVinh,IamcurrentlyasaBusinessMan agerofcropp r o t e c t i o n b u s i n e s s i n D u P o n t V i e t n a m I h a v e b e e n w o r k i n g a t t h i s companysince2010
MrMinh:HelloSinh, Myfullname is B u i A n h M i n h ; I amcurrently workingasSa les ManagerofcropprotectionbusinessinDuPontVietnam.I havebeenworkingatthisc o m p a n y sinc e1998whenthecompanystartstooperatethisbusinessinVietnam.
Mr.Cole:MyfullnameisTruongVanCole;IamcurrentlyworkingasMarketingManagero f cropprot ectionbusinessinDuPontVietnam.Ihavebeenworkingatthiscompanysince2 0 1 1
Ms.Tien:H e l l o S i n h M y f u l l namei s NguyenT h i B e T i e n ; I amc u r r e n t l y w o r k i n g a sR e g i o n LeaderatLongAnprovinceincropprotectionbusinessatDuPontVietnam.Ihaveb eenworkingatthiscompanysince2012
Ms.Diep:MyfullnameisHuynhNgocDiep;IamcurrentlyworkingasHRexecutiveinD u P o n t Vietnammanagingtheworkforcefromservicecontract.Ihavebeenworkingatthisc o m p a n y si nce2011
Mr Vi's sales and marketing structure closely resembles a well-organized framework, dividing teams into small groups with specific provincial responsibilities to enhance sales effectiveness The structure features three levels of supervision, including the Province Leader, ensuring streamlined operations and accountability within the sales process.
Mr.M i n h : C u r r e n t l y ,S a l e s f o r c e a n d M a r k e t i n g f o r c e a r e n o t u n d e r D u P o n t ent ity.Wesigntheservicecontractwitheachofthemasdistributor.TheFixpaymentandvariab leisapp liedf o r t h i s k i n d o f c o n t r a c t T h e r e a r e t h r e e l e v e l o f s u p e r v i s i o n T h e f i r s t o n e i s immediatelysupervisorn a m e l y LeaderinProvincew h o belongstoservi cecontracttomanagethesmallteamtoachievethetargetwhichSales
Managersetupatthebeginningof season.ThesecondoneisRegionLeaderandthelastoneisSaleManager,bothofthembelon gt o D u P o n t V i e t n a m , w h o w i l l m a n a g e a n d i n s t r u c t S a l e s a n d M a r k e t i n g TeamdrivingtoachieveDuPont’stargetandcomplywithallcodeofconductatcompany.
Mr.Cole:Asyouknow,therearethreelevelofsupervisioninmarketingteam.Province
Ms.Tien:Therearethreelevelofsupervision,thelevel1:ProvinceleaderwhobelongstoServ icecontract,normally hemanagesasmallteamaround5-6personsof1-
Ms.Diep:SalesandMar ket in g teamhasco me fromDuPontent it y andse rv icec on tr act T h e s t r u c t u r e i s h i e r a r c h y w i t h t h r e e l e v e l o f s u p e r v i s i o n separately Theyi s P r o v i n c e L e a d e r , RegionLeaderandSale/MarketingManagerVN
Mr.Vinh:Year2013and2014istheyearthattheturnoverrateishighupto25%.Ihaveconsid ered a n d d i s c u s s e d w i t h S a l e s M a n a g e r a n d M a r k e t i n g M a n a g e r a s w e l l a s HRDepartmenttofindoutthereasons.Therearesomereasonsshouldbefocusandc onsider.T h e firstreasoniscomefromcompensationandbenefitsinceDuPonthasnoresponsi bilityt o paysocialinsuranceandunemploymentinsurance.Theyfeelnotsafetyincaseoflosing j o b o r r e s t r u c t u r e d u e t o r e g r e s s i o n Theyc o m p l a i n e d a b o u t t h i s i s s u e a l l t h e time.T h e s eco n d reasoniscommunicatingbetweenemployeesandsupervisors.Sincethe territoryisso l a r g e a n d S a l e s managersa n d M a r k e t i n g r a r e l y t o f a c e t o f a c e t h e I
S P s a n d M D O s Mostly,theycontacttotheRegionalleaderandthenRegionleaderwillworkwi thprovince leader.Heavyallocationoftheteamcouldcausethepoorcommunicationfromthetoplinetothebott omline.
Mr Minh acknowledges the challenges of managing the sales team at DuPont Vietnam, particularly concerning the high turnover rate of Independent Sales Professionals (ISPs) He identifies several key factors contributing to this issue, including low fixed pay budgets that primarily attract recent graduates who often lack essential sales, negotiation, and presentation skills While training is provided to bridge this gap, a disconnect remains between theoretical knowledge and practical experience Additionally, inadequate communication skills among employees and between employees and their immediate supervisors further exacerbate the problem Many supervisors are from service contracts and may not fully align with DuPont's vision and mission, which can hinder effective communication To improve the situation, supervisors need to regularly share information and foster an environment of open, two-way communication among ISPs.
I S P s toM D O s isquitelowbecausetherole locationandthetasksaccordinglyarenot verycleara n d transparent.Becauseof t h es e iss ues, I S P s andMDOsfeeluncomfor table, lo w motivationandinconsistentinwork.Forme,thecriticalproblemleadsthe highturnoverr a t e islowjobsatisfactionsincethePay,Benefit,Supervision,Coworkeran dJobSecuritya r e fairnessandunattractive.
Yearsrecently,salesperformanceisnotachievedthetarget;hence,ISPsandMDOshavej u s t receivedtheFixcostwhichislowerthanbenchmark.,togetherwithnosocialinsurance, unemploymentinsuranceandothersbenefitandpolicymakethemlowjobsatisfactionandtend tomakeadecisiontoleavewhentheyhaveanopportunitytooffer.
Ms.Tien:Forme,IamateamleaderwhoworksdirectlywithISPs.Ihavesixsubordinates,fi veworksforLongAnprovinceandoneforTienGiang,BenTreprovince.F i r s t , Icansaythatmy teamworkswithlowjobsatisfactionsincetheyalwayscomplaina b o u t thecompensat ion.Thesalaryisnothighandnobenefitduetothekindofcontract.LowlevelofJobsecur ityandtheyhavelowcommitmentwiththecompany.Theydonotfocusonhowtocreatesales buttheydistractandlookingforotheropportunitiestochange.Second,l o w l e v e l o f t r u s t i n t h e i r d i r e c t s u p e r v i s o r s l e a d i n g t h e m w o r k w i t h l o w j o b sati sfaction Theyd o n o t p u t t h e i r t r u s t tot h e m d u e t o t h e i r s a l e s s k i l l s , l a c k o f s h a r i n g infor mation,leadershipandcommunication.
Mr.Cole:Forme,intermofmarketingview,Isawthatourplanandimplementisquitecompe tedanattractivetoourcustomers,however,ISPsandMDOsalwaysputtheirbenefita b o v e ourco mpany’sbenefit.Theyworkwithlackofpassionandenthusiasmtoachieveag o al Theyarea f r a i d tol o s e t h e w o r k f o r c e s i n c e theyaren o t s a t i s f i e d t o w o r k w i t h t h e c o m p an y a nd willingtoleavethecompanywhentheyhaveachange.Weareconsideringtof i n d outthethirdpartyca ncovertheirbenefit.
Ms.Diep:IntheHRofview,IofteninterviewtheISPsandMDOswhomadethedecisiont o leaveth ecompany.Thereasonthattheyarenotsatisfiedwiththepolicyand benefitofthecompanyaswellassalaryisquitelowcomparedtotheirfriendsinthesamei ndustry.Inaddition,theyarenothappywiththeirsupervision,notwanttoobeythemandcooperat etoa c h i e v e agoal.
Mr Vinh highlights two main reasons for the challenges faced by Dupont in Vietnam Firstly, the economic regression has led to a 6% reduction in crop protection sales, with Dupont's decline being even steeper at 10% compared to competitors He emphasizes the need for a more effective marketing strategy to enhance brand awareness, price competitiveness, promotion, segmentation, and customer relationship management (CRM) Secondly, he notes that the workforce's low motivation and satisfaction stem from the challenging ISP scheme, lack of social insurance, employment benefits, and low salaries compared to industry benchmarks Dupont is actively seeking solutions to bridge the gap in job satisfaction and improve overall workforce capability.
Mr Minh identifies several reasons for underperforming sales, starting with limited market coverage and a lack of familiarity with the company's products among farmers, despite their high quality in crop protection He emphasizes the need for the marketing team to enhance brand visibility through targeted advertising on TV, radio, and farmer meetings to stimulate demand Additionally, he points out that ineffective price management requires adjustments to align better with the distribution channels, including dealers and retailers Lastly, improving job satisfaction within the team is crucial for boosting overall performance.
Ms.Tien:Forme,IamateamleaderwhoworksdirectlywithISPs.Ihavesixsubordinates,fi veworksforLongAnprovinceandoneforTienGiang,BenTreprovince.
First,Icansaythatourteamworkswithlowjobsatisfactionsincetheyalwayscomplain ab o u t t h e I S P ’ s s c h e m e T h et a r g e t s a l e i s h i g h a n d d i f f i c u l t t o achieve.I f t h e y a c h i e v e l o w e r than90%oftargettheywillget nothingfromvariablecost.Iftheyachievefrom90%t o 100%,theywillget100%ofVariableam ount,iftheyachievefrom100%-
In 2014, the sales team faced significant challenges, achieving only 70% of their target due to a 30% drop in sales This decline resulted in no earnings from variable costs, compounded by increased financial difficulties and heightened competition, requiring greater effort from the entire team The management's push for sales was hindered by a lack of understanding of market demands, leading to struggles within the sales and marketing teams to meet expectations Additionally, there was insufficient cooperation and communication across functions, particularly between sales and marketing Strict financial regulations further alienated customers, making them hesitant to engage with the sales and marketing teams during purchasing processes Mr Cole acknowledged that the Marketing Development Officers (MDOs) were underperforming due to low motivation and passion, which distracted them from their responsibilities The marketing executive's overwhelming workload, which included creating materials and managing meetings, hindered their effectiveness Furthermore, the overall market demand in Vietnam's crop protection industry has declined, exacerbating these challenges.
6%.Salesincropcreatethepressuretocustomerstopay.Salespushcustomerstostorethep r o d u c t s toachievethetargetwhilemarketisreducingthedemand.Company’spolicyisnot flexibleinthepaymentpolicytocustomers.
Ms.Diep:I n t h e H R o f v i e w , I c a n a d d somei d e a s f o r t h e r e a s o n s Firstly,l o w j o b s a t i s f a c t i o n sincelackofsocialinsurancebenefitandlowsalarycomparedthebenchmarkto makethemworkwithlowmotivation,effortandenthusiasm.Secondly,regressioncauses l o w demandofcropprotectionproductwithhighquality.Thecustomerstendtochoosethealtern ativeproductcall“generic”withlowpricesincethepriceofrice;tomatoislowinthemarket.Thirdly, MarketingneedstomoreMCprogramwithaggressivetofocusverycloset o ourcustomerstog ainthesalestothecompany.Currently,marketingprogramisnotsoaggressive;farmersd o n o t r e m e m b e r a n d e v e n n o t k n o w t h e veryfamousn a m e s u c h a s P r e v a t h o n , Ammate ofthecompany.
Interview:Inyouropinion,isthereanywaystoimprovethisincidentofhighturnoverofISPsan dMDOssuchascompensationandbenefit,co-worker,leaderships ?
Verifyingtheimportanceoftherealproblem
Jobs a t i s f a c t i o n t e l l s h o w muche m p l o y e e l i k e t h e i r j o b s J o b S a t i s f a c t i o n (JS)i s d ef i n ed a s " t h e e x t e n t t o w h i c h p e o p l e l i k e ( s a t i s f a c t i o n ) o r d i s l i k e ( d i s s a t i s f a c t i o n ) t h e i r wo r k " ( S p e c t o r , 1 9 9 7 , p.2 ) I f workersfeelr e s p e c t e d a n d s a t i s f i e d a t w o r k i t ist h e foundationforeffectivework.Intheorganiza tion’spointofview,goodjobsatisfactioncanl e a d tobetterperformanceoftheworkersthataff ectstheresultofthecompany.Employeesatisfactionhasgenerallyconsideredasthedriver oftheemployeeretentionandemployeeproductivity.Satisfiedemployeesareincreasingp roductivity,responsiveness, quality,andcustomerservice(Kaplan,1996).Inaddition,
Jobsatisfaction,turnover,personalitytypes,motivationa n d r o l e clarityi n s t r o n g re lationshipsalesperformance( P r e d m o r e ,
1996;McNeilly,Russ,1992).Suchemployeesaremorelikelytoexperiencehigherlevelsofj o b s at isf act io na nd sh o u l d be l es s li ke ly tol e a v e a n or ga niz at io n ( H a n s o n &M i l l e r , J r , 2 0 0 2 )
Jobsatisfactionplaysakeyelementtosucceedanyorganization.Oncontrast,low j o b satisfaction in workplace is aser io us pr ob le m andbr in gs manyconsequencesf orthec o m p a n y such asl oss o f productivity,a b s e n t e e i s m , em pl oyee t u r n o v e r l o w c o m m i t m e n t , s a l e s p e r f o r m a n c e ( B e n k h o f f , 1 9 9 7 ) I n t h i s c a s e , D u P o n t Vietna m,l o w j o b s a t i s f a c t i o n c a u s e s highturnoverrateandpoorsalesresultsaretheclearlyvisualne gativeresults.
Firstly,t h i s i s h i g h t u r n o v e r r a t e , i n h u m a n r e s o u r c e c o n t e x t e m p l o y e e t u r n o v e r u n d e r s t a n d r e p l a c i n g a t e r m i n a t i o n e m p l o y e e w i t h a n e w e m p l o y e e I t c a n b e e x t r e m e l y devastating f o r anyo r g a n i z a t i o n I t makese m p l o y e e d i f f i c u l t t o maintaina s t e a d y a n d successfuloperation.MacintoshandD o h e r t y (20 10)statedt h a t j o b s a t i s f a c t i o n s t r o n g l y i n f l u e n c e d theintentionamongemployees. Inthisstudy,TurnoverrateinDuPontVietnami s highupto25%muchhigherthan10%avera geindustry(refertotable2).Itisnotonlyt hec a us e makingt h e c o m p a n y lost t h e t a l e n t b u t a ls o m a k e t h e c o m p a n y spend a l o t ofm o n e y ofcostofturnoverintentionthatisme ntionedatthefirstbadsymptomoftherealp r o b l e m
Secondly,t h i s i s l o w s a l e s performancei n 2 0 1 3 a n d 2 0 1 4 c o m p a r e d w i t h o t h e r c o m p e t i t o r s i n t h e s a m e i n d u s t r y ( r e f e r t o t a b l e 3 ) t o r e f l e c t t h e s i g n i f i c a n t r e d u c e salesr e l a t e d tothejobsatisfactionwhichistherealproblem.Itisnotonlythecau sereflectsthew ea k competitiveadvantageandhealthofbusiness butalsocreateahig hcostofproduct inventory,managementimprovementandothersrelatedfinancecost.Itismentionedatthesecond badsymptomoftherealproblem.
PotentialCauses
Afterf i n d i n g o u t t h e r e a l p r o b l e m , t o identifyaccuracyt h e r o o t c a u s e s o f c e n t r a l problem,t h e w r i t e r l i s t s o u t t h e p o t e n t i a l c a u s e s byc o n d u c t i n g t h e r e v i e w o f l i t e r a t u r e informed.Fromtheliterature r ev iew listofr es u l t s , following tabl e8 - L i t e r a t u r e informed r e v i e w –
Factorsi n f l u e n c e s j o b s a t i s f a c t i o n i n C h a p t e r 4 T h e w r i t e r mappedw i t h f o u r tentativeproblemsfromindepthinterviewandconfirmsthepotentialcausesofkeyp r o b l e m - J o b satisfactionasbelowC a u s e andEffectTree
CauseandEffectMap
Aftercrosschecking w it h the literatures informedandcombining withresultsr eceivingfromindepthinterview,thecausesandeffectmapisbuiltasbelow:
Verifyrootcauseoftherealproblem
To identify the root causes of job satisfaction, a quantitative evaluation method was employed A mini-survey was conducted to determine the factors contributing to workforce dissatisfaction, utilizing a revised questionnaire based on Spector's (1985) job satisfaction survey The questionnaire focused on four key factors derived from a cause-effect tree, with five levels of satisfaction ranging from "Strongly Dissatisfied" to "Very Satisfied." Out of 72 employees who received the questionnaires via email, 68 responses were valid, yielding a response rate of 94.4% Results indicated that supervision emerged as a significant factor, with 42.6% of respondents reporting "Very Dissatisfied" and an average satisfaction score of 1.87 This highlights that employees' perceptions of their immediate supervision's treatment, skills, and support are critical to job satisfaction at DuPont Vietnam.
The supervisor-subordinate relationship is crucial for fostering success within organizations Building this relationship through support, trust, information sharing, and respect has been shown to enhance employee attitudes and performance (Gerstner & Day, 1997; Nystrom, 1990) Research indicates that a supervisor's attitude significantly influences a subordinate's productivity (Fiorelli, 1988), job satisfaction, turnover, and absenteeism (Busch, 1980; Martin and Hunt, 1980) Ultimately, a strong relationship with a superior can lead to improved outcomes for employees and the organization as a whole.
PossibleSolutions
Supervisors play a crucial role in mentoring and coaching, as effective communication fosters strong relationships that alleviate the challenges of understanding and executing work tasks (Campbell & Swift, 2006) These relationships enable subordinates to articulate their needs clearly, facilitating access to advice, policies, and solutions for job-related issues Consequently, developing coaching skills is essential for supervisors to manage and guide their teams effectively Recognizing the distinct roles and skills of leaders and team members is vital, as routine coaching helps align their efforts and enhances overall team performance.
Front line Developfullpotentialof Implement 5- Achievethesales leaders frontlineleaderswith step coaching performance with proven sales and process successfulthetarget marketing coaching MotivationSkills Increasethelevelof techniques Management satisfiedsupervisors
Assess selling and Skills fromteammembers marketing skillsf o r Project Reduce turnover eachmemberofteam Management rate
Secondly,RewardandRecognitionisaformofemployeemotivationinwhichac o m p a n y r e c o g n i z e s , praises,andthanksemployeesfortheircontribution.Therewardsandr e co g n i ti o n keepshighspiritofjobsatisfactionamongemployeestocreatethehighperformanceinorga nization.Freedman(1978)statedthate f f e c t i v e rewardsandrecognitionproducedtheencou raged morale,whichmotivates employeest o e x c e l i n t h e i r p e r f o r m a n c e E m p l o y e e s t a k e r e c o g n i t i o n ast h e i r f e e l i n g s o f v a l u e a n d a p p r e c i a t i o n T h e r e f o r e , t h e c l e a r r e w a r d a n d r e c o g n i t i o n s y s t e m w i t h p r o p e r K P I s applytospecificpositionwillhel pworkforceworkingwithhighmotivationtoachievethegoals.
Increaseindividual Timetodesignand Rewardwithgift productivity implementtheprogram certificates
Directandclear Moneycostforproper PeerRecognitionby performancefeedback rewards emails.
Highloyaltyand Traininghowtogivethe Bestemployeeintheyear satisfactionscorefrom recognition withoverseapackage customers Costofintroducingthe
Conducting regular team-building activities is an effective solution for enhancing relationships between supervisors and subordinates Successful team building fosters understanding, goal sharing, and collaboration, bridging the gap between different levels of staff (Heathfield, 2007) This process not only improves a team's effectiveness in achieving tasks but also addresses the needs of its members (Huse, 1980) Overall, team building promotes better communication among employees, strengthens bonds, and enhances the overall spirit of teamwork.
Tos u m u p , a l l o f t h r e e a l t e r n a t i v e s a b o v e w o u l d a f f e c t j o b s a t i s f a c t i o n a n d p r o d u c t i v i t y p os i t i v e l y Actually,t h e s e c o n d a n d t h i r d a l t e r n a t i v e t h a t t e a m b u i l d i n g a n d r e w a r d and recognitionprogramisimplementingbutstillneeds toimproveinsomeaspects.Thefirstalternativeismanagementtrainingprogramsthatcriti calonesincemostofmid- managerlevelsareshortcomingskillsofcoachingtheirteam,notmotivateteammembersinc r e a t i n g salesthatisimportantelementasabloodofbusiness.
SelectedSolution
SusanHeathfield,anindependentHRconsultant,conductedasurveyofover22,00 0employeeswhenaskingwhattheyfeltmadeamanagerabadmanager.Herearetheresults:
Forinstance,themajorityofpoorsupervisionislackofskillsandwellequippedbytrainingtopr ovidethesupporttotheirsubordinates.Ef fe ct iv e managementtraininghelpssupervisorstobui ldorstrengthentheskillsneededf o r betterresultsandt eam wo rk Th is m a n a g e m e n t t r a i n i n g c o v e r s b a s i c s k i l l s t h a t m a k e a d i f f e r e n c e i n o r g a n i z a t i o n a l perfor manceandfinancialresults.
Possible Solution 1 :ProvidingtheManagementTrainingprogramstotheprovinc es leadersandregionalleadersonhowtoeffectivenesscoachingtotheirteams.
Possible Solution 2 :Implementthe additional rewardandrecognitionwithclearKPIs forbothsupervisorsandsubordinates
Possiblesolution1i s t h e mostp r i o r i t y inthes o l u t i o n s M a n a g i n g a s a l e s a n d marketingteamisprobablythemostchallengingpositioninanyorganizationrequiringaseto f skills.Supervisorsareresponsibleforarangeofdiversetaskssuchascoaching,recruitment, planningandadministration.Theyarethemainelementinanorganizationwhod i r e c t l y i m p l e m e n t s p l a n s o f S a l e s a n d M a r k e t i n g H e a d Whena company’st a r g e t a n d strategiesi nyearly,q u a r t e r l y ormonthlyplanscanbecarriedo u t successfullyo r n o t d e p e n d i n g o nthesepositions.Theydeliverthemarketinformation,campaign,salesresultsa s theycoacha ndpushtheirsubordinatetodotheirjobs.
In any organization, having alternative solutions is essential, although it may not always be the top priority Currently, DuPont Vietnam implements a Reward and Recognition program that aligns with its financial status and capacity To effectively motivate employees, the Board of Management should discuss and establish specific criteria for applying special incentives Additionally, it is crucial to carefully define Key Performance Indicators (KPIs) that are clear and aligned with the goals of the sales and marketing teams Preparing these KPIs and accurately predicting the costs associated with rewards requires significant time and effort once the Board has made its decisions.
Possiblesolution3 i s s u g g e s t e d t e a m b u i l d i n g a c t i v i t i e s f o r s e p a r a t e d g r o u p s t h a t g r e at l y i n c r e a s e a n d e f f e c t o n productivity,morale,j o b s a t i s f a c t i o n a n d t u r n o v e r r a t e s Currently,t e a m b u i l d i n g i s h e l d f o r w h o l e employeeso n c e timea yeara s s o c i a t e d w i t h internaltrainingandmeeting.Theplaceofthisactivityissuchas
DaNang,PhuQuocandCambodia,etc Inaddition,thesalesworkshopisheld2timesayearatCanThoprovince whereis themost convenienceplace togatherworkforcefrom 2-
3days.Likewise,some specialsalestrainingtothet ea m isheldatt h e o f f i ce withinternaltraini ngf r o m expertsf r o m DuPontGlobal.H owe ver , the l o c a t i o n w or ki ng of IS Ps andM
D Os isfarwayeacho t h e r s o t h a t theya r e l e s s f a c e - t o - f a c e meetingt o c o m m u n i c a t e a n d improvet h e c l o s e r e l a t i o n s h i p intheteam.Boa rdofmanagementwillconsidercreatingmoreopportunityforsupervisorandsubordinatetomeet bys e p a r a t e d g r o u p afterc a r e f u l l y c o n s i d e r i n g t h e f i n a n c i a l statusandca pacityofthecompany.
Tos u m u p , t h e f i r s t p o s s i b l e s o l u t i o n 1 i s s e l e c t e d a n d i m p l e m e n t e d t o e n h a n c e t h e s a l es skills,coachingskills,managementskillstoleadtheteamworkingwithhighesteff orta n d motivation
Implementationplan
Theimplementationplanisincludedfivesteps,whichareobjectives,actions,people,c h a n g e organization,andcommunicationplan(Akenatall,2012)asbelowtable:
2 Engagestaffi n becomingmoreresponsible,self- motivatedandself- reliantintheirjobbyeffectivedelegationandmonito ringperformance
Communication,feedbackperformance,maintainsg oodperformance,delegation,coaching,motivation,p ersonaleffectiveness,buildingrelationshipswithstaf fs.
1.Informingtheplantohumanresourcemanagertod iscuss,getthefeedback,comments,andadjustplan
2 Sendingt h e planandc o s t estimatingt o Procu mbentandFinanceforanycomments.
In-depthinterview
Aqualitativeresearchdesignedisused.In- depthinterviewingisaqualitativeresearchtechniquethatinvolvesconductingintensiveindividua linterviewswith6ofrespondentstoe x p l o r e theirperspectivesonaparticularidea,program,orsitu ation
Ic o n d u c t t h e i n - d e p t h i n t e r v i e w w i t h f i v e employeesw h o a r e w o r k i n g i n d i f f e r e n t p o s i t i o n inclu dingBusinessManager,SaleManager,RegionSalesLeader,MarketingManager,andHRexecu tivethosewhohavegoodknowledgeandexperienceontheissue.Theyareinvitedtoanswersixopen- endquestions
Iwanttothankallofyouforyourtimetomeetmetoday.MynameisSinhNguyena n d Iama MasterdegreestudentatISB.Iwouldliketogetyoursupportwithmyd i s s e r t a t i o n researchone mployee’sturnoverintentionandsalesperformancereducedfrom2 0 1 3 to2014.Iwouldappre ciateyourresponseinmyresearch.Ihavesixquestionsopen- ended anditmaytakearound1hour.
Mr.Vinh:HelloSinh,MyfullnameisNguyenNgocVinh,IamcurrentlyasaBusinessMan agerofcropp r o t e c t i o n b u s i n e s s i n D u P o n t V i e t n a m I h a v e b e e n w o r k i n g a t t h i s companysince2010
MrMinh:HelloSinh, Myfullname is B u i A n h M i n h ; I amcurrently workingasSa les ManagerofcropprotectionbusinessinDuPontVietnam.I havebeenworkingatthisc o m p a n y sinc e1998whenthecompanystartstooperatethisbusinessinVietnam.
Mr.Cole:MyfullnameisTruongVanCole;IamcurrentlyworkingasMarketingManagero f cropprot ectionbusinessinDuPontVietnam.Ihavebeenworkingatthiscompanysince2 0 1 1
Ms.Tien:H e l l o S i n h M y f u l l namei s NguyenT h i B e T i e n ; I amc u r r e n t l y w o r k i n g a sR e g i o n LeaderatLongAnprovinceincropprotectionbusinessatDuPontVietnam.Ihaveb eenworkingatthiscompanysince2012
Ms.Diep:MyfullnameisHuynhNgocDiep;IamcurrentlyworkingasHRexecutiveinD u P o n t Vietnammanagingtheworkforcefromservicecontract.Ihavebeenworkingatthisc o m p a n y si nce2011
Mr Vi's sales and marketing structure closely resembles a tiered system, organized into small teams responsible for specific provinces This approach enhances accountability and efficiency in generating sales The structure features three levels of supervision: Province Leader, Sales Manager, and Sales Representatives, ensuring effective oversight and coordination across all teams.
Mr.M i n h : C u r r e n t l y ,S a l e s f o r c e a n d M a r k e t i n g f o r c e a r e n o t u n d e r D u P o n t ent ity.Wesigntheservicecontractwitheachofthemasdistributor.TheFixpaymentandvariab leisapp liedf o r t h i s k i n d o f c o n t r a c t T h e r e a r e t h r e e l e v e l o f s u p e r v i s i o n T h e f i r s t o n e i s immediatelysupervisorn a m e l y LeaderinProvincew h o belongstoservi cecontracttomanagethesmallteamtoachievethetargetwhichSales
Managersetupatthebeginningof season.ThesecondoneisRegionLeaderandthelastoneisSaleManager,bothofthembelon gt o D u P o n t V i e t n a m , w h o w i l l m a n a g e a n d i n s t r u c t S a l e s a n d M a r k e t i n g TeamdrivingtoachieveDuPont’stargetandcomplywithallcodeofconductatcompany.
Mr.Cole:Asyouknow,therearethreelevelofsupervisioninmarketingteam.Province
Ms.Tien:Therearethreelevelofsupervision,thelevel1:ProvinceleaderwhobelongstoServ icecontract,normally hemanagesasmallteamaround5-6personsof1-
Ms.Diep:SalesandMar ket in g teamhasco me fromDuPontent it y andse rv icec on tr act T h e s t r u c t u r e i s h i e r a r c h y w i t h t h r e e l e v e l o f s u p e r v i s i o n separately Theyi s P r o v i n c e L e a d e r , RegionLeaderandSale/MarketingManagerVN
Mr.Vinh:Year2013and2014istheyearthattheturnoverrateishighupto25%.Ihaveconsid ered a n d d i s c u s s e d w i t h S a l e s M a n a g e r a n d M a r k e t i n g M a n a g e r a s w e l l a s HRDepartmenttofindoutthereasons.Therearesomereasonsshouldbefocusandc onsider.T h e firstreasoniscomefromcompensationandbenefitsinceDuPonthasnoresponsi bilityt o paysocialinsuranceandunemploymentinsurance.Theyfeelnotsafetyincaseoflosing j o b o r r e s t r u c t u r e d u e t o r e g r e s s i o n Theyc o m p l a i n e d a b o u t t h i s i s s u e a l l t h e time.T h e s eco n d reasoniscommunicatingbetweenemployeesandsupervisors.Sincethe territoryisso l a r g e a n d S a l e s managersa n d M a r k e t i n g r a r e l y t o f a c e t o f a c e t h e I
S P s a n d M D O s Mostly,theycontacttotheRegionalleaderandthenRegionleaderwillworkwi thprovince leader.Heavyallocationoftheteamcouldcausethepoorcommunicationfromthetoplinetothebott omline.
Mr Minh acknowledges the challenges of managing the sales team at DuPont Vietnam, particularly regarding the high turnover rate of Independent Sales Partners (ISPs) He identifies several contributing factors, including the low fixed pay budget, which primarily attracts recent graduates lacking essential sales, negotiation, and presentation skills Despite recruitment and training efforts aimed at equipping these individuals for sales roles, a significant gap remains between their knowledge and real-world experience Additionally, poor communication skills among employees and between employees and their immediate supervisors hinder effective collaboration Since immediate supervisors are often service contractors not directly affiliated with DuPont, there is a lack of awareness regarding the company's vision, mission, and strategy Mr Minh emphasizes the importance of regular information sharing and fostering two-way communication to bridge these gaps and strengthen connections among ISPs.
I S P s toM D O s isquitelowbecausetherole locationandthetasksaccordinglyarenot verycleara n d transparent.Becauseof t h es e iss ues, I S P s andMDOsfeeluncomfor table, lo w motivationandinconsistentinwork.Forme,thecriticalproblemleadsthe highturnoverr a t e islowjobsatisfactionsincethePay,Benefit,Supervision,Coworkeran dJobSecuritya r e fairnessandunattractive.
Yearsrecently,salesperformanceisnotachievedthetarget;hence,ISPsandMDOshavej u s t receivedtheFixcostwhichislowerthanbenchmark.,togetherwithnosocialinsurance, unemploymentinsuranceandothersbenefitandpolicymakethemlowjobsatisfactionandtend tomakeadecisiontoleavewhentheyhaveanopportunitytooffer.
Ms.Tien:Forme,IamateamleaderwhoworksdirectlywithISPs.Ihavesixsubordinates,fi veworksforLongAnprovinceandoneforTienGiang,BenTreprovince.F i r s t , Icansaythatmy teamworkswithlowjobsatisfactionsincetheyalwayscomplaina b o u t thecompensat ion.Thesalaryisnothighandnobenefitduetothekindofcontract.LowlevelofJobsecur ityandtheyhavelowcommitmentwiththecompany.Theydonotfocusonhowtocreatesales buttheydistractandlookingforotheropportunitiestochange.Second,l o w l e v e l o f t r u s t i n t h e i r d i r e c t s u p e r v i s o r s l e a d i n g t h e m w o r k w i t h l o w j o b sati sfaction Theyd o n o t p u t t h e i r t r u s t tot h e m d u e t o t h e i r s a l e s s k i l l s , l a c k o f s h a r i n g infor mation,leadershipandcommunication.
Mr.Cole:Forme,intermofmarketingview,Isawthatourplanandimplementisquitecompe tedanattractivetoourcustomers,however,ISPsandMDOsalwaysputtheirbenefita b o v e ourco mpany’sbenefit.Theyworkwithlackofpassionandenthusiasmtoachieveag o al Theyarea f r a i d tol o s e t h e w o r k f o r c e s i n c e theyaren o t s a t i s f i e d t o w o r k w i t h t h e c o m p an y a nd willingtoleavethecompanywhentheyhaveachange.Weareconsideringtof i n d outthethirdpartyca ncovertheirbenefit.
Ms.Diep:IntheHRofview,IofteninterviewtheISPsandMDOswhomadethedecisiont o leaveth ecompany.Thereasonthattheyarenotsatisfiedwiththepolicyand benefitofthecompanyaswellassalaryisquitelowcomparedtotheirfriendsinthesamei ndustry.Inaddition,theyarenothappywiththeirsupervision,notwanttoobeythemandcooperat etoa c h i e v e agoal.
Mr Vinh highlights that the primary reason for the decline in crop protection sales in Vietnam is the overall economic regression, with a reduction of up to 6%, while DuPont's decrease is even more significant at 10% compared to competitors He emphasizes the need for a more effective marketing program to enhance brand awareness, including strategies such as price cutting, promotion, segmentation, and customer relationship management (CRM) Additionally, he points out that workforce motivation and satisfaction are low due to the challenging nature of the ISP's scheme, lack of benefits like social insurance and employment, and lower salary levels compared to industry benchmarks The company is actively seeking solutions to bridge the gap in job satisfaction and improve employee capabilities.
Mr Minh highlights several reasons for the underperformance in sales Firstly, the limited market coverage means that the company’s products are not well-known among farmers, despite being among the top five in crop protection quality To address this, the marketing team should focus on enhancing brand visibility through more marketing campaigns, including TV and radio advertising, as well as farmer meetings to generate demand Secondly, ineffective price management needs to be addressed; price adjustments should be made to align with the needs of the distribution channels, including dealers and retailers Lastly, improving job satisfaction among employees is essential for overall performance enhancement.
Ms.Tien:Forme,IamateamleaderwhoworksdirectlywithISPs.Ihavesixsubordinates,fi veworksforLongAnprovinceandoneforTienGiang,BenTreprovince.
First,Icansaythatourteamworkswithlowjobsatisfactionsincetheyalwayscomplain ab o u t t h e I S P ’ s s c h e m e T h et a r g e t s a l e i s h i g h a n d d i f f i c u l t t o achieve.I f t h e y a c h i e v e l o w e r than90%oftargettheywillget nothingfromvariablecost.Iftheyachievefrom90%t o 100%,theywillget100%ofVariableam ount,iftheyachievefrom100%-
In 2014, the sales team faced significant challenges, achieving only 70% of their targets due to a 30% decline in sales This regression resulted in increased financial difficulties and heightened competition, forcing the management team to push harder for sales despite a lack of understanding of market needs The sales and marketing teams struggled under pressure, struggling to meet management's expectations due to insufficient cooperation and communication Additionally, strict financial regulations made customers hesitant to engage with the sales and marketing teams during the purchasing process Mr Cole acknowledged that the MDOs were underperforming, lacking motivation and passion, which hindered their effectiveness The marketing executive's overwhelming workload, which included creating materials and managing meetings, further impacted their ability to excel in their roles Overall, the crop protection industry in Vietnam experienced a notable decline in demand due to these compounded issues.
6%.Salesincropcreatethepressuretocustomerstopay.Salespushcustomerstostorethep r o d u c t s toachievethetargetwhilemarketisreducingthedemand.Company’spolicyisnot flexibleinthepaymentpolicytocustomers.
Ms.Diep:I n t h e H R o f v i e w , I c a n a d d somei d e a s f o r t h e r e a s o n s Firstly,l o w j o b s a t i s f a c t i o n sincelackofsocialinsurancebenefitandlowsalarycomparedthebenchmarkto makethemworkwithlowmotivation,effortandenthusiasm.Secondly,regressioncauses l o w demandofcropprotectionproductwithhighquality.Thecustomerstendtochoosethealtern ativeproductcall“generic”withlowpricesincethepriceofrice;tomatoislowinthemarket.Thirdly, MarketingneedstomoreMCprogramwithaggressivetofocusverycloset o ourcustomerstog ainthesalestothecompany.Currently,marketingprogramisnotsoaggressive;farmersd o n o t r e m e m b e r a n d e v e n n o t k n o w t h e veryfamousn a m e s u c h a s P r e v a t h o n , Ammate ofthecompany.
Interview:Inyouropinion,isthereanywaystoimprovethisincidentofhighturnoverofISPsan dMDOssuchascompensationandbenefit,co-worker,leaderships ?
Mr Vinh emphasizes the importance of enhancing workforce motivation to address the issues faced by ISPs and MDOs He notes that many of these entities aspire to be part of DuPont Company; however, this is hindered by the company's policy of outsourcing workforces To improve the situation, Mr Vinh suggests implementing volunteer insurance in line with the new Labor Rule, alongside the current outsourcing practices He highlights the necessity of considering the existing budget and obtaining regional and legal approvals Furthermore, he advocates for improved communication and team connections through team-building activities and meetings Finally, he proposes providing training in sales and marketing skills to empower the workforce to leverage their competencies for increased sales.
Mr Minh emphasizes the importance of job security provided by social insurance and expresses his support for the new labor rule regarding voluntary social insurance for the workforce He notes the challenges of outsourcing due to company policies, legal approvals, and the need to assess the trustworthiness of third-party providers Additionally, he highlights the significance of training programs to enhance sales competencies, recommending biannual training sessions to boost confidence in customer interactions and sales performance Mr Minh also suggests improving salary and bonus structures, proposing a revised incentive scheme that allows sales personnel to earn a significant portion of variable pay even during downturns, with flexibility in local policies Finally, he advocates for an annual trip to reward employees after one year of service, which would enhance internal communication and foster better relationships among team members and supervisors.
Ms.Tien:Forme,Ihavesomesuggestion.First, restructurewholeteam toselectahighc a p a b l e people.Wecannotstandofthelowjobsatisfactiontoaffectwholeteam.Second, applyt h e l o n g d u r a t i o n i n t h e c o n t r a c t i n s t e a d o f o n e timep e r year.B e s i d e , c o m p a n y a p p l i e s s o c i a l i n s u r a n c e p e r n e w L a b o r R u l e , makingt h e m a r e a l parto f
D u P o n t T h i r d , increasethesupportfromteamandmanagementwithclearinstruction.Fourth,increasethemarketu n d e r s t a n d i n g o f management.T h i s i s i m p o r t a n t t h i n g toi m p r o v e t o u n d e r s t a n d w h a t themarket’sdemandandhowtomeetthisdemand.Fifth,th e companywouldhold moreinternaltrainingandmeetingtoimproveIPSsandMDOs’competency insalesan dmarketing.I n a d d i t i o n , t h i s w o u l d h e l p t h e i n t e r n a l c o m m u n i c a t i o n , d e l e t e t h e b a r r i e r b e t w e e n teammembersandsupervisor,andunderstandmorecul tureofthecompany.Last,m a n a g e m e n t findthewaytocreatetrustoffairandstabilitybyc onsistentinwork,fairinr e w a r d andclearinstructionaswellaskeepthepromise.
Mr.Cole:Forme,ISPsandMDOsworkwithlowmotivationduetolowjobsatisfaction.T h e compensation,rewardandbenefitisnotsatisfiedthem.Sincethe natureofthecontract,thereisnoinsurancefromcompany.ISPs’schemeishardtoachieveandthecontr actsignedo n e timeayear.Theyfeelnotsafetywiththecompanyandtendtofindanotheropportunity.
T o closethisgap,wecanhireThirdparty tomanagetheteambutweneedtoconsiderveryc a r e f u l aboutthecompanypolicy,confident ialinformationandlegalassessment.Second, trainingprogramisverynecessarytoimpr oveISPsandMDOsskillsofcreatingsalesandk e ep thegoodrelationshipwithcustomer s.Last,teambuildingwouldholdregularlycombinedinternalmeetingandtraining.Annualf avoritetripsuchasCambodia,Singapore,D a Nangcouldattractthemtofocusandworkwithhigheff orts.
Job satisfaction is a critical issue in HR management To enhance employee satisfaction, companies should offer competitive benefits, including fair wages and comprehensive packages that go beyond basic insurance, such as paid holidays and family insurance Additionally, fostering workforce engagement is essential; employees who find their work interesting and feel connected to the company's mission are more likely to be engaged Providing training opportunities, mentoring, and skill development can further motivate employees to improve their capabilities Lastly, personal recognition and informal celebrations can significantly boost morale and motivation, making employees feel valued and appreciated.
Interviewer:Inyouropinition,whatwouldyouwanttodotoincreasetheSalesperfor mancein2015onwards?
Mr.Vinh:Thisquestionisalwaysourconcernsincewehavenotachievedthetargetthreeyea rsrecently.F o r m e , f i r s t , w e n e e d t o s o l v e t h e p r o b l e m fromp e r s o n n e l t h a t i s
Job satisfaction within the workforce is influenced by compensation and benefits, as well as effective internal communication among team members and between teams and supervisors Additionally, fostering strong communication with customers is essential for maintaining relationships with existing clients and establishing connections with new ones The sales team should prioritize training programs to enhance their skills and knowledge, thereby increasing their competitiveness and driving sales Meanwhile, the marketing team must focus on initiatives such as the MC program, farmer meetings, and MDO training to create customer demand and boost brand awareness, which are crucial for influencing customer decisions.
Mr.Minh:Likewise,trainingprogramisalwaysnecessarythingtodotoenhanceworkforc es k i l l s a n d k n o w l e d g e t o c r e a t e s a l e s , maintaint h e g o o d r e l a t i o n s h i p w i t h t h e customers,sustainablegrowth.Inaddition,GroupCommunicationworkshop1or2coursea ye artoenhancethegoodcommunicationintheteam,encouragetheworkforce,inspire t h e m i n t h e i r c u r r e n t w o r k i n g w i t h h i g h m o t i v a t i o n , c r e a t e morec l o s e c o m m u n i c a t i o n b etw een e m p l o y e e s a n d s u p e r v i s i o n T o p r o p e r a c t i o n to o u r customers,c o m p a n y implementtodirectservetoretailerswithhighincentivepro gram,giftinsteadofservingt o o muchtodealerstoclosethegapofmarketcoverage.To makethefairness,Companykeepstheprofitfordealersfrom3-4%andretailersfrom5-
Ms Tien emphasizes the importance of enhancing the sales team's efforts to ensure customer satisfaction She suggests that ISPs and MDs should directly engage with farmers to generate demand for the company's products, providing alerts, follow-ups, and effective problem resolution Finally, the marketing team is tasked with developing programs that meet customer demands, ensuring they are satisfied with the company's offerings and workforce.
Mr.Cole:I nt e r m o f marketingv i e w , I t h i n k I w i l l c r e a t e moreM C p r o g r a m t o c r e a t e demandint h e m a r k e t I n a d d i t i o n , t r a i n i n g p r o g r a m t o M D O s w o u l d d o r e g u l a r l y t o e n h a n c e marketingskillsandcommunicationskills.Beside,Sa lesteamdoestheireffortstoc r e a t e saleswithsalescompetencyandmotivation.Finally,ISPs’sch emeshouldchangether a n g e oftargettoencouragesalesteamandmarketingteamtoworkh ardwithallthebesta n d notlosttheirmotivationofnothinggainfromseasonended.
Ms.Diep:Forme, Ithink, First,Marketingprogramshoulddoregularlysuchas advertisingo n T V t o c re a t e d e m a n d S e c o n d, S a l e s t eam withwe l l e q u i p p e d o f t h e i r s k i l l s t o cre ate sales onthemarket.Final, companytries tofulfill thegapbetweencompanyandworkforcetoenhancejobsatisfaction,whichcouldpotentialincreasesal esperformance.
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