PROBLEMDEFINITION
Backgroundof InterLogCompany
InternationalLogisticsJointStockCompany(InterLog)wasseparatedfromInterlinkGroup– businessspecializinginfreightforwardingmultinationals.Inthecontextofinternationaltradedevelopment ,freightdemandforexportsanddomesticrisesupinVietnam,tomoreproactiveinbusiness,InternationalL ogisticJSCwasbornonAugust2005withitsheadofficebasedonHoChiMinhCity.
Establishedsince2005,InterLoghasbecomeastrongbrandandwonthetrustofmanydomesticcusto mers.Ithasbuiltapowerfulworkforcewithmorethan100officialstaffs,developedanofficialnetworkinf ivebigcitiesincludingtwobranchesinHaNoiandDongNai,andtwoagentsinDaNangandHaiPhong.
Headoffice:5thFloor,SaigonPortBuilding,03NguyenTatThanhSt.,W.12,Dist.4,HCMC. Telephone:+84.8.39435899
Email:Info@interlogistics.com.vnWebsite:www.int erlogistics.com.vn
Shippingandfreightforwardingbytruck,train,shipandaircraft(including:lessthancontainerlo aded-LCLandfullcontainerloaded-FCL).
Donotjustfocusontransportationandfreightforwardingimportandexportgoodsfromtheporttoth eport,butalsoInterLogexploitsairtransport,organizestheconsolidationand storageofgoods.Withextensiverelationships,agencynetworkofthecompanyhasbeenselectedtoenhan cethequalityofservice,tomeetincreasingdemandofdomesticandforeignclients.
Mission:Operatinginlogisticsbusiness,InterLoghasdevelopedwithmissiontocreatetheeffectives upplychainthatbringsbenefitstocustomers,themselvesandcommunity.
AsanofficialmemberofInternationalFederationofFreightForwardersAssociation(FIATA)an dVietnamFreightForwardersAssociation(VIFFAS).
Withthenatureoflogisticsbusiness,InterLogsetsupitsorganizationalstructureintoparticulardepartm entsthatruneachpartofeveryshipmentfromcustomers.Theorganizationalsy ste m ofInterLogcompriseso fSalesDepartmentandExpertBureauDepartment.Indetails,SalesDivisioncontainsthreespecificsegments ofExport,ImportandDomesticsshipmentsmean wh ile ExpertBureauDepartmentgetsinvolveinpaperwo rk,documents,customs,truckingandwarehousingdepartmentsetc.
Thediagrambelow(Source:InterLogCompany)isstructureofInterLogwiththreemaindivisions:P roduction,SalesandHR&Finance.Inthebottomofdiagramhasthenumberthatisthenumberofemployees ineachdepartment.
Board of Director Board of Supervisor
Warehous Customs Trucking Solutions Document ationMulti Transport Operator Interconso Agents Developmen Sales Supply Chain Hanoi Branch
Responsible for storage, loading, and distribution, including customs clearance and trucking services Manages import and export documentation, domestic inland trucking, and LCL consolidation (NVOCC) Coordinates with overseas agents and clients, overseeing export shipments from customers and import shipments to customers, particularly in the Northern region.
Currentsituationof InterLogCompany
In today's business landscape, employees are considered the most valuable assets, with investments in their benefits, career development, and training recognized as essential human capital investments Becker (1964) emphasized that these investments can be compared to capital expenditures on property and equipment, providing a sustainable competitive advantage This is particularly true in the service and logistics sectors, where employees, especially sales personnel, play crucial roles as internal customers and are significant revenue and cost contributors Effective management of salesforce resources is vital for a firm's success However, retaining key personnel remains a significant challenge, especially amid recent shifts in the labor market affecting various service sectors.
Althoughdevelopingstablythroughout10yearswiththestaffsanddiversifiedservices,InterLog stillmeetsproblemsofpersonnelaffects.Specially,fromthebeginningofyear2014to2015,theyfacedth ebiggestpersonnelchangesever.EmployeeturnoverratemaintainedatahighlevelistheproblemthatB ODofcompanyalwaysthinksaboutbecauseturnoverisextremelycostly,whetherit’sinvoluntary,su chasterminationduetopoorperformance,orvoluntary,suchasresignations.FollowingtoO’Connellet al.
(2007),employeeturnoverremainsoneofthemostpersistentandfrustratingproblemsthatorganizatio nsface.Andtherearethreemaincomponentsassociatedwiththecostof turnover:staffing,vacancyandtrainingwhichbusinessenterprisemustspend.Here,staffingisthecos tofrecruitingandhiringthenewpersontoreplace;vacancyistheperiodoftimewherethatpersonisn’tw orkinginthecompanyresultsinlostproductivityandpotentiallylostbusiness;andtrainingisthecostwh ichfirminveststime,resourcesfort rai ning newemployee.
Employeeturnoverrateincreasesfrom19.5%in2013to26.88%in2014(Table2.1)andpositionof employeesleave(Table2.2)alsoriseuparealarmingforthefirm.Basingon‘2014AnnualTalentandRew ardsSummit’and‘GeneralIndustryCompensationSurvey–
VietnamKeyInsightsfor2014’ofTowersWatsonVietnam,itssurveylookedatsalaryandturnoverrateof variousindustries,resultedasfollows:
In2014,theaveragestaffturnoverrateofgeneralindustryis12.7%,andthehighestemployeeturn overrateat15.9%ofpharmaceutical,however,thatofInterLogis26.88%,highercomparewithresultsurv eyofTowersWatsonVietnam.Andfollowingstatistics, turnoverrateofSalesDepartmentin2013and2014inturnare8/16(50%)and14/25(56%)ishighest(T able2.3).Withthisresult,IfocusonanalyzingturnoverintentionofemployeesofSalesDepartment.Tofi ndoutthecausesthatledtothissituation,Ihavedoneintakemeetingandinterviewswithsomememberso fSalesDepartmentaswellasbasingonthesecondarydatasuchas:annualHRreportofthecompanyintw oyears2013and2014,reportsofexitinterviews.Andherearesomemainreasons:
Firstcause: Conflict
Conflictsareunavoidablepartoforganizationallife;itisarangeofbehaviorsandf eelin gsorem otionalresponsestobehavior.So,conflictisanunpleasantfactinanyorganizationaslongeraspeopleco mpeteforjobs,resources,power,recognitionandse cu r i ty Organizationalconflictcanberegardedas adisputethatoccurswheninterests,goalsorvaluesofdifferentindividualsorgroupsareincompatiblewit heachother.Conflictcanarisefromavarietyofsources,andbetweensupervisorsandsubordinates,betw eenco- workers,andbetweenemployeesandcustomers.AndaccordingtoJamesandGraham(2008),havingt hreesourcesofconflict:
Personaldifferences:Individualskeepthedifferentroleintheorganizations.Theirvalues,needsaresetde pendingontheircultureprocess,levelofeducation,andexperience ineachbusinesssession.Fromthat,theconflictaboutright,beliefandfactarebuiltupfromthesedifferen ces.
Informationaldeficiencies:Conflictmayresultfromdeficienciesinthecommunication.Misinformation andmisunderstandingcanthemainreasonsleadstotheconflictinmisinformationandmisunderstandinga mongthepeopleintheorganization.Butthistypeofconflictisquitepopular.
Inefficient communication at InInterLog is a primary cause of conflict, leading to a fragmented organizational structure where each department is responsible for specific tasks This division, while intended to minimize the impact of individual salespeople leaving the company, has resulted in internal conflicts, particularly between the Sales Department and the Expert Bureaus Department The lack of effective communication, stemming from employees' varying backgrounds and knowledge, contributes to low performance levels Research has shown a strong link between internal communication and employee job satisfaction and performance Strategic internal communication not only enhances employee satisfaction and productivity but also positively influences a company's external public relations Well-informed employees can serve as the organization's best ambassadors or harshest critics, highlighting the importance of effective communication in enhancing corporate reputation and credibility.
(Dawkins,2004;Hannegan,2004).Putsimply ,employeesarethefaceofanorganizationandhaveapo werfulinfluenceonorganizationalsuccess.
ConflictswithExpertBureausDepartmentareinvisiblepressureonme.Connectingandsharing informationbetweenthetwod ep art men ts arenotgood.Iknow,infacteachdepartmenthasits ownpressures,butIthinkprovisionhastosupportmaximumforustogetmorecontracts…”
ExperiencedSalesperson “Failuretoclearlydefinepowersbetweensalesandprovisiondepart mentsdifficultforme;sometimeswithcustomerorders,followingthecompanylawIcouldmake,b utprovisionrefused,soIhavetoapologizetocustomers,thataffectrelationshipswithcustomers…."
In contrast to other logistics companies, the role of a salesperson at InterLog is primarily focused on finding and maintaining customer relationships, rather than managing the entire sales process While other companies require salespeople to handle tasks such as customer consultations, quotations, and customs procedures, at InterLog, these responsibilities are delegated to the provisions department This division of labor minimizes the impact of a salesperson's departure on ongoing contracts However, challenges arise when customs documents are rejected due to profit concerns or complex processes, leading to frustrations for salespeople Additionally, sales quotes depend on customs rates, and due to legal restrictions, salespeople lack the autonomy to make decisions, which can hinder their ability to respond effectively to customers The reliance on the customs department for support often results in communication overload, causing stress and limiting information sharing, ultimately leading to a frustrating work environment for sales staff.
Role ambiguity refers to the lack of clarity regarding job expectations, leading employees to feel helpless and uncertain about their roles (Onyemah, 2008) It arises when individuals do not have clear directions about their responsibilities, tasks, or authority (Rizzo et al., 1970) This situation can stem from inadequate training, poor communication, or intentional withholding of information (Luthans, 1989) Employees experiencing role ambiguity often struggle to understand their job descriptions, rights, and procedures, resulting in job dissatisfaction and a higher likelihood of leaving the organization Furthermore, role ambiguity can hinder employee productivity and overall organizational success (Beard, 1999) To mitigate these issues, providing clear job descriptions and defined authority relationships is essential, as it empowers employees to take responsibility for their actions and fosters better interaction with colleagues.
Withmore10yearsexperience,InterLoguntilnowhasnotbuiltasmoothworkingprocess.Worki ngprocessisunclearandinconsistentleadstooverlapinworkbetweendepartments.Itmakesemployeec onfusedinworkandfeelstress.
SalesDepartment “Everythingisgood,exceptfortheworkflowofthecompanyinrecenttimecha nge,thatisgoodforthecompanybuttocausedifficultiesfortheSalesDept.,suchaslackingofquot esforcustomermakesprocesslasts,socustomersarenothappy…”.
ExperiencedSalesperson“ Workflowofcompaniesisnotclear,althoughthecompanyhasre visedbutstillveryambiguous,notsupportforsales…”.
SalesManager“ Beamanager,Itaketheinitiativetobuildacommonworkflowforpeople,workfl owbasedonmanyfactors,suchas:myexperience,currentsituationsofdepartmentandqualificat ionsofstaff.Wesetupaprocedureindetail,fromhowtocallforcustomers,meetcustomers,totak ecarecustomers.Sofar,wedonothaveaconsistentworkingprocessbetweendepartment”.
ThishascausedmajordifficultiesfortheSalesDepartment,astheresultsobtainedfrominterview swithsalesstaff,theyalwaysmentiontheseissues,andambiguityintheworkprocessesalsoleadtoconfli ctsbetweentherooms,asmentionedinabovesectionon conflict.AccordingtoLogisticexperts,aunifiedworkflowbetweendepartments,tocreaterh y t h m inthe workprocess,reducecosts,human,idletimebetweenstagesaswellascreatetheabilitytomeetcustomer demandsatthehighestlevel.Atthesametime,itwillhelpbusinessesattractmorecustomers,increasem arketshare,costsavings,therebyincreasingrevenueandprofit.
Wehavetroubleswhenproposingstrengtheningpersonnel.Next,empowermentisnotclear,le adtolackofpersonsresponsiblefortheprojectwhenincidentsoccur.Finally,CEOdoesnottrus tmiddlemanagers”.
Followingtheresultofinterview,empowermentisalsoafactorthatcreatestheambiguityforem ployeesinInterLogCompany,especially,formiddlemanagers.
TeamleaderofCSwith8yearsexperiencessaidthat“IadmireandappreciatetheCEO,thatisth ereasonwhyIhavestuckwiththefirminalongterm(8years),Iadmirehisworkingstyle,managem entskills,professionalcapacities,andlong- termvision,andsoon,exceptapointthatisempowerment,inInterLog,
BODlacksofempowermentofmiddlemanagersthatcanonlybeinterpretedasalackofconfiden ceinthecapacityofmanagerstowork.ThiscreatestheoverloadforBOD,andalsocreatesasense ofapprehensionformanagerstoexpressthemselvesinfrontofthecompany'sprojects,andsometi mesitalsocreatesconflictsbetweenthemiddlemanagerswithBOD.”
Numerous studies have explored the connection between empowerment and frontline employees Conger and Kanungo (1988) define empowerment as a process that enhances self-efficacy among organizational members by identifying conditions that promote efficacy information Thomas and Velthouse (1990) conceptualize psychological empowerment as intrinsic motivation, which is reflected in four key cognitions: meaning, self-determination, competence, and impact According to Spreitzer (1995), these cognitions combine to create an overall sense of empowerment, leading individuals to actively shape their work roles Research indicates that psychological empowerment is linked to positive job behaviors, including proactive behaviors and organizational commitment (Anderson & Williams, 1996; Spreitzer et al., 1999) Empowered employees are more likely to engage in extra-role efforts, act independently, and demonstrate high commitment to their organization (Spreitzer, 1995; Aviolo et al., 2004) Since empowered employees find meaning in their work, feel in control, possess the necessary skills, and believe they can influence outcomes, psychological empowerment fosters greater engagement Evidence suggests that psychological empowerment is positively associated with various beneficial job outcomes, such as organizational citizenship behavior (Onyishi, 2006), organizational commitment (Manz & Sims, 1993), innovative behavior (Spreitzer, 1995; Spreitzer et al., 1999), as well as job satisfaction and performance (Dickson & Lorenz, 2009; Hechanova et al., 2009; Kirkman et al., 2004; Mohd et al., 2009).
Concluded,inInterLogCompany,ambiguityincludeslackofconsistworkingprocess,unclearrol eandresponsibilitiesofemployees(roleambiguity)andlackofempowermentofmiddlemanagers.
Compensationandbenefitsorrewardspracticesaretheessentialelements,whichplayavitalparti ntheemployeeretention.Lawler(1990),statesthatthekeyissueinretentionistheamountoftotalcompe nsationrelativetolevelsofferedbyotherorganizations.
Accordingtohimorganizationsthathavehighlevelsofcompensation,willhavelowerturnoverratesand largernumbersofindividualsapplyingtoworkforthem.Furthermore,heargues, highwageworkplac esmaycreatea"cultureofexcellence."InInterLog,thesalary,rewardandcommissionforthefunctiona ldepartmentareaveragelevelcomparewithothercompaniesinLogisticssectorinVietnam.Inthereality,somesalespeopleofInterLogleavedcompanytofindanotherjobwithhighsalary.Manystudieshavec onfirmedthatsalarylevelhasasignificantlypositiveeffectonorganizationalcommitment(Folger&
Konovsky,1989),aswellasonturnoverintention(Ghiselli,La,&Bai,2001;Summers&Henfrix,1991).
SalesDepartment“ Thisjobishighpressure,Iamnotsatisfiedwithsalaryandrewardoffirm.Inre ality,thissalaryisnotcompetitivecomparetoothercompaniesinthissector….Workingenvironme ntissogood,peoplearefriendlyandIcanlearnmorefromeveryone:managersandcolleagues…”.
In2013,salaryincreased16.36%compareto2012,andin2014salaryraised19.49% compareto2012(Table2.4).However,between2013and2014,salaryjustincreased2.69%
Emotional exhaustion arises from a depletion of energy and feelings of drained emotional resources, often due to excessive chronic work demands, and is a key aspect of burnout (Maslach, 1982) Burnout is characterized by emotional exhaustion, low personal accomplishment, and depersonalization (Maslach, 1982; Maslach & Jackson, 1981) Salespeople play a crucial role in bridging the gap between businesses and their customers, yet they frequently experience high stress levels from balancing client demands with organizational requirements (Bitner, 1995; Bole et al., 1997; Miller et al., 1988) This stress can lead to employee burnout, adversely affecting job performance, job satisfaction, organizational commitment, and turnover intentions (Singh et al., 1994).
Inspiteofhavingcomplaintsaboutsalaryandrewardsystem,butitisnotthefirstandisthemostimp ortantreasontoanemployeeleavedecision.Inin- depthinterviewwith7employeesofSalesDepartment,justonepersonmentionsitlikethefirstreasonwhi chsheisunsatisfiedbutwhenIaskmore“Iffindinganotherjobwithhighsalary,youwillquitjobhere
?”sheisnotsure,causeshelikesworkingenvironmentofInterLog.Thatmeanssalaryand rewardsystem isnotthemostsignificantfactortodecidequitjobofemployee.AndviewsoftheBODofInterLogalsodet erminedthat,willnotretainemployeesbysalary,becauseitisaweaklink.Manypreviousstudiesalsosaid thatretentionbasedontheprincipleof"compensation- basedcommitment"(Meyeretal.,2003)isofcoursesensitivetochangesincompensationwithinthecomp any.Employersthatbasetheirretentiononcompensation- basedcommitmentwillalwaysbevulnerabletothepossibilitythattheircompetitorswillbeabletooffer betterwagesandthuslureawaytheiremployees.Smith(2001)arguesthatmoneygetsemployeesinthed oor,butitdoesnotkeepthemthere.
Moneycanbeclassifiedasa"satisfier,"anditisanecessarybutinsufficientfactorinemployeeretention ,whileHarrisandBrannick(1999)agreethatmoneyisnottheprimarymotivatorforemployees.Infact, manycompanieshavedoneaverygoodjobofretainingtheiremployeeswithoutanypay- basedretentionincentives(Pfeffer&Veiga,1999).
Inclosing,therearefourmaincauses:conflict,ambiguity,salaryandrewardsystem,andhighwor kingpressureleadtohighstaffturnoverrateinInterLog.
Theoretically,paststudiesrelatingtoturnoverintentionhasshownthatorganizationalcommitme ntandjobsatisfactionareregardedastwoimportantantecedentvariablesthataffecttheturnoverintentio nofemployees(Clegg,1983;Karsetal.,2005).Infact,thefindingsofempiricalstudiesontherelationshi pbetweenorganizationalcommitment,jobsatisfactionandturnoverintentionhaveconfirmedthatthetw ovariableshavesignificantlynegativeeffectsonturnoverintention(Bartle,Dansby,Landis,&McIntyr e,2002;Parker&
Kohlmeyer,2005).Thissuggeststhatemployeeswithhighjobsatisfactionlevelshaveahigherlevelofw orkefficiency,organizationalcommitment,andwillingnesstosacrificefortheorganization,makingitm oredifficultforthemtoleavetheirjobs.So,todothisproject,Iwillfindoutantecedentsofjobsatisfactiona ndjobcommitment,andbasedonthosefactorstolimitemployeesleavetheirjobs.Andbelowistable,whi chlistsantecedentsandoutcomesofjobsatisfactionandjobcommitmentofpreviousstudies.
No AuthorsNa me Antecedents Outcomes ResearchFindings
- Coworkerrelationshipan dworkenvironmenthaspo sitiveeffectsonjobsatisfac tion.But,jobsatisfactionh asnosignificanteffectont urnoverintention.
- Salarylevelimpactstoo rganizationalcommit ment,buthasnotsignific antlyaffectturnoverinten tion.
Therearepositiverelation shipsbetweenleadershipst yleandorganizationalcult ure withorganizationalcommit ment.
TrainingEmpowerment EmployeeRewards SupportiveManagementSer vantLeadershipServiceTec hnology
- Jobsatisfactionandor ganizationalcommit mentinthisstudyhaven otrelationshipwithtur noverintention.
- Thisstudyassessedrolea mbiguityandroleconflict asmediatorsoftherelatio nshipbetweenemployees ocializationandcommit ment.
-Factorsmotivation,needf orachievement,leaderco nsideration,jobvariety,tas k
FeedbackJob varietyTaskid entify identityweresignificant antecedentstojobsatisfactio n.
EmployeeempowermentJobm otivatingpotentialLeadership behaviorAcceptancebyco- workerRoleambiguity Roleconflict
- Employeeempowerme nt,jobmotivatingpotential, leadershipbehaviorandac ceptancebyco- workerhavepositiveeffec ttojobsatisfaction.
-Roleconflict,roleoverlo adandroleambiguityare negativelycorrelatedwith jobsatisfactionandorgani zational behaviorsOrganization alrolebehaviors. commitment.
- Professionalrolebehav iorsimpactspositivelytoj obsatisfactionandorgani zationalcommitment,bu tresultjustpartiallysupport withjobsatisfactionandmi nimallysupportswithorga nizationalcommitment.
- Organizationalroleb ehaviorsarenegativel ycorrelatedwithjobsatis factionandorganization alcommitment.
-Thisstudyindicatesthatse veral,butnotalldimension sofbothjobsatisfactionan dburnoutsyndromeprovet oberelevantfactorsaffecti ngphysicians’turnoverinte ntion.
FollowingtoTable2.5,almostfactorshavestrongimpactonjobsatisfactionandorganizational commitmenthaveappearedintheresultcollectedofInterLogCompanysuchas:compensation,emotionale xhaustion,roleambiguity,roleconflict,empowerment.Forf a c t o r s : workenvironment,leadershipstyl e,training,organizationaljustice,respondentswhenwereaskedappreciatedthem.BODofInterLoghasfo cusedonbuildingcorporatec u l t u r e , workenvironmentandemployeetraining,whetheritislong- termgoalsofthecompany.
Ms.MongHien: “FortwoyearsworkingatInterLog,Ihavereceivedmanythings.Ihavelearneda lotofthingstohelpworkwell,especially,helpingandsharingfromMs.Hoa.Sheismyteamleader,alsomymanagerdepartment.IreallylovethisjobandworkenvironmentofInterLog ”
Mr.VanTri:“ InInterLog,BODfocusonbuildinganddevelopingcultureorganizationwell,sow orkingathere,everybodyisquitecomfortable…”
Ms.ThanhHoa: “Ihaveworkedheremorethansevenyears.Really,Ilovethisjob,andIalsolove workingstyleofBOD.Withme,thisisagoodworkingenvironmentandBODhasfocusedonbuild ingcorporateculture.Here,everybodyislikeasafamil y…”
Ms.HoangLinh: “After5yearsworkingatInterLog,Iappreciatetheworkenvironmenthere…”
Basedoncollecteddata,Ipayattentiononstudyingambiguityandconflictimpacttoper forma nce, jobsatisfactionandorganizationalcommitmentofemployees,andleadtoconsequenceishightu rnoverintention.Toimplementthegoalssetoutinthenextfiveyearsistobecomeleadingsupplychainin novatornotonlyinVietnambutalsoinIndochinaregionspecializinginservice"one- stop"forclientsandpackages,InterLogneedstofindoutthe adequatesolutionstosolvetwothesecauses.Iftheseproblemsarenotsolved,theywillleadtoahighturnoverrate.Thiswillcausefluctuationsinperson nel,constantpersonnelchangesfirstwillcostthecompanyahugeexpenseinrecruitingandtrainingne wemployees;secondwillaffectorganizationalperformance,thecompany’sproductivitywilldecrease;th irdwillaffectthecompany'simageintheeyesofclients,createunprofessionalandunstableimageforcust omers.
Betweenconflictandambiguity,BODofInterLogshouldsolvetheambiguityfirst;aconsistent workingprocedureandroleclearofemployeesarea“solidfoundation”forlong- termdevelopmentofthecompany.Andfollowingresultsofin- depthinterviews,conflictsarising inthefirmpartlydueworkflowisnotclear,leadingtoduplicationof workandr esp o nsi b il it y AndSawyer(1992)hasevenhypothesizedthatdifferenttypesofroleambi guitymayhavedifferentcauses,andSinghandRhoads(1991)believethatroleambiguityismoreamen abletomanagerial"intervention",thatisimplementingprogramstodiminishroleambiguitymaybeless difficulttoconductthaninterventionsforroleconflict.
Theorganizationalproblemisambiguity.Followingresultofin- depthinterviewsevenemployeesofSalesDepartment,wefindoutinterestingincidentscaninterpretthee xistenceambiguityproblemofInterLog,includingthreeincidents:inconsistentworkingprocess,empow ermentofmiddlemanagersandunclearroleofemployees(roleambiguity).
Untilnow,InterLogstillhasnothavetheofficialworkingprocedureforSalesDepartmentandEx pertBureauDepartment,soalotofconflictsarise.Likeasmentionabove,someemployeesofSalesDe partmentleaveduetotheseconflicts.Theoverlapinwo r k fl o w makesemployeesfeeltiredandnotha ppy.Therefore,it’snecessarytobuildtheofficialworkingprocess.
Firstly,ProvisionsDepartmentshouldmakequotationofpopularitemsforsalespeopletogogreet andexpandnewcustomerslikeascommentofarespondent“… lackingofquotesforcustomermakesprocesslasts,socustomersarenothappy”.Andthisthingalsomake ssalespeoplemoreconfidentandquickquotesforcustomers.Thequotationmustbeupdateatleastsixm onthsatime,orwhentohavechanges.
Secondly,eachdepartment(SalesandProvisions)itselfneedstosetupanownprocessthatisthem ostcomfortable.Afterthat,havingameetingbetweendepartmentstopresentandconsisttheprocess.Th eofficialprocessshouldmakesuretobeverydetailed,includingspecificestimatedtimeforeachphase, suchas:trucking,customsclearance,internationalfreight,…
Additionally,provisionsshouldnormalorganizeworkshopsforsalespeopletoupdatenewinformations uchas:thechangesoflaw,storage,soonandsupplyexpertiseknowledgetoavoidthesituationwhensales personmeetscustomerhavetoconstantlycallforprovisiontoaskproblemsandalsolimittheprovisionbu sinesstravelfrequentlytosupportsalesman.
Thirdly,whilebuildingtheprocess,BODisnecessarytoclearlydefinerightsandresponsibil itiesofeachdepartment,toavoidanyroomabuseofpower.I t isaproblemwhichrespondentscom plainedintheinterview
A d d i t i o n a l l y , t he d i v i s i o n o f p o w e r s a n d r es p o n s i b i l i t i es b e t w e e n roomsun knownisalsoanobstacleforbothstaffandmanagerofSalesandProvisionsDepartment.”
Tosetupanewworkingprocess,thefirmwillfacewithsomeobstacleswhendothechanges,but italsocollectsmorebenefits.Andbelowisthetabletocomparebenefitsandcostsofthissolution.
- Next,thisalsocreatesaprofessionalworke nvironment;thisthingmakesemployeeshap pyworkinInterLog,andattractsmorekeypla yers.
- CosttoorganizeworkshopsbetweenSalesan dProvisionsDepartment,howeverworkshops areregularactivitiesofInterLog,sothiscostdoe snotinclude.
- Timetoemployeesfamiliarwiththenewpro cess,therewillbesomeforcestoresistthechan ge,hence,departmentmanagersneedtofollow overseestafftosupportandexplainpromptly.
Firstly,basedonthestrategicdevelopmentofthecompany,thedepartmentheadsneedtopassitont ostaffmembersthatplan,aswellasthegoalsthatthecompanywilltargetinthenexttime.
Middle managers must provide timely performance feedback, which is crucial for employees to understand their effectiveness in their roles Feedback involves giving clear information about job performance, enabling individuals to adjust their actions and clarify priorities Studies have shown a positive relationship between feedback and role clarity, highlighting the importance of supervisors communicating expectations effectively The impact of feedback can vary based on its nature—whether positive or negative—and how it is delivered Timely assessments from supervisors can enhance a salesperson's understanding of expectations and contribute to perceived role clarity, especially when they are involved in decision-making processes.
Developing employee autonomy, particularly among middle managers, is crucial for empowerment Task autonomy refers to the degree of freedom and discretion individuals have in scheduling their work and determining procedures (Hackman & Oldham, 1976) It allows employees to choose the type of work they perform and how they accomplish it Research indicates that autonomy is a key motivational factor that enhances role clarity, especially in complex jobs where standardization is challenging (Hackman & Oldham, 1976; De Ruyter et al., 2001) In such environments, there is a positive correlation between task autonomy and perceived role clarity Conversely, in more structured settings like call centers, autonomy has little impact on role clarity (Mukherjee & Malhotra, 2006) Currently, InterLog is implementing a monthly reporting and evaluation program to encourage managers to focus more on employee engagement and morale, aiming to reduce turnover reasons.
Finally,settingupaclearpathpromotioninordertoemployeeshavetargettostrive.Aclearpathp romotionmakesemployeescomfortable,notdominated.Researchesbygroups ofresearchers(Zainuddinatel.,2010)andanothergroup(Danish&Usman,2010)andSsesangaandGar rett(2005)foundapositivesignificantrelationshipbetweenopportunitiesforpromotionandjobsatisfacti on.Wanetal.,
(2012)arguethatemployeesthatperceivedpromotiondecisionsasfairaremorelikelytobecommittedt otheorganization,experiencecareersatisfaction,performbetterandsubsequentlyhavealowerintentio ntoleavetheorganization.Today,manylecturerswillconsiderleavingtheinstitutionswheretheywork,if theydonothaveequalpromotionopportunitiesasofferedbyotherorganizations,particularlyyounglect urerswhoarelookingformoreworkexperiencesfromvariousinstitutionsbeforedecidingtoremainwit haparticularinstitution.AsthestudyofKhalidetal.,
Andyearly,theBODshouldcontestamongemployeestogethertofindexcellentstaff,suchas“Iw anttobesectionsdirector”.Thoroughthiscompetition,companywillfindoutt h ekeyplayersandcrea temiddlemanagersreserve.Whenhavinganewproject,BODcanusethisreserveforce,orwhenhavinga middlemanagerleaveout,thecompanywillsavetimetofindalternativepersons.Thecosttoorganizeth iscontestisnotmuch;itjustistheawardsforthewinners.Wecanhavethreeawardsforthefirst,secondan dthirdprizes.
Awardswillbethecoursesaboutmanagementskills.InHCMC,wenowhavequitemanyschoolssupply themanagementskillscoursesformiddlemanagerssuchas:PTI,PACE,SAMandsoon.Costforeachco urseabout6,000,000-7,000,000VNDanditlasts5-
6weeks.So,totalcostforallcoursesabout18,000,000-21,000,000VND.Andthecostfor organizingcontestdosenottake,becausewecangetupitattheofficeonSaturdayeveryweek.
- Empowermentformiddlemanagerswill decreasewokpressureforBOD,andthisal sowillmakethemfeelindependentandsel f- reliantandmoreactivelyintheworkand workwithmoreresponsibility.
- Departmentheadswillhavetocloselym onitorstaffintheroomandpromptlygivec ommentandfeedbackabouttheirwork.Thi swillconsumealittleoftheirtime,howeve ritwillcreategreaterefficiencyinthework, andwillhelpachievethedepartmenttarget swell.
Bothofabovesolutionshavemorebenefitsthancosts.Andeachthathasitsownadvantagesthatar enecessaryforInterLogtoexecutethenextfiveyearsobjectives,hence,In t e rL o g shouldcombinebot hofthem.But,thefirstsolutionisbuildingaconsistentworkingprocessshouldbegivenpriorityoverbe causeitwillpromotedevelopmentacrossthecompany,reducetimetodoworkpackagesandalsowillelim inatetheinternalcontradictionsunnecessary.
Firstalternativesolution
Untilnow,InterLogstillhasnothavetheofficialworkingprocedureforSalesDepartmentandEx pertBureauDepartment,soalotofconflictsarise.Likeasmentionabove,someemployeesofSalesDe partmentleaveduetotheseconflicts.Theoverlapinwo r k fl o w makesemployeesfeeltiredandnotha ppy.Therefore,it’snecessarytobuildtheofficialworkingprocess.
Firstly,ProvisionsDepartmentshouldmakequotationofpopularitemsforsalespeopletogogreet andexpandnewcustomerslikeascommentofarespondent“… lackingofquotesforcustomermakesprocesslasts,socustomersarenothappy”.Andthisthingalsomake ssalespeoplemoreconfidentandquickquotesforcustomers.Thequotationmustbeupdateatleastsixm onthsatime,orwhentohavechanges.
Secondly,eachdepartment(SalesandProvisions)itselfneedstosetupanownprocessthatisthem ostcomfortable.Afterthat,havingameetingbetweendepartmentstopresentandconsisttheprocess.Th eofficialprocessshouldmakesuretobeverydetailed,includingspecificestimatedtimeforeachphase, suchas:trucking,customsclearance,internationalfreight,…
Additionally,provisionsshouldnormalorganizeworkshopsforsalespeopletoupdatenewinformations uchas:thechangesoflaw,storage,soonandsupplyexpertiseknowledgetoavoidthesituationwhensales personmeetscustomerhavetoconstantlycallforprovisiontoaskproblemsandalsolimittheprovisionbu sinesstravelfrequentlytosupportsalesman.
Thirdly,whilebuildingtheprocess,BODisnecessarytoclearlydefinerightsandresponsibil itiesofeachdepartment,toavoidanyroomabuseofpower.I t isaproblemwhichrespondentscom plainedintheinterview
A d d i t i o n a l l y , t he d i v i s i o n o f p o w e r s a n d r es p o n s i b i l i t i es b e t w e e n roomsun knownisalsoanobstacleforbothstaffandmanagerofSalesandProvisionsDepartment.”
Tosetupanewworkingprocess,thefirmwillfacewithsomeobstacleswhendothechanges,but italsocollectsmorebenefits.Andbelowisthetabletocomparebenefitsandcostsofthissolution.
- Next,thisalsocreatesaprofessionalworke nvironment;thisthingmakesemployeeshap pyworkinInterLog,andattractsmorekeypla yers.
- CosttoorganizeworkshopsbetweenSalesan dProvisionsDepartment,howeverworkshops areregularactivitiesofInterLog,sothiscostdoe snotinclude.
- Timetoemployeesfamiliarwiththenewpro cess,therewillbesomeforcestoresistthechan ge,hence,departmentmanagersneedtofollow overseestafftosupportandexplainpromptly.
Secondalternativesolution
Firstly,basedonthestrategicdevelopmentofthecompany,thedepartmentheadsneedtopassitont ostaffmembersthatplan,aswellasthegoalsthatthecompanywilltargetinthenexttime.
Middle managers must provide timely performance feedback, which is crucial for employees to understand how effectively they are executing their job responsibilities (Hackman & Oldham, 1976) Targeted feedback from superiors helps individuals adjust their actions and clarify priorities, ultimately enhancing their work performance Research indicates a positive relationship between feedback and role clarity (Teasel et al., 1979; Singh, 1993; Evans et al., 2002; Mukherjee & Malhotra, 2006) The impact of feedback can vary based on its valence (positive or negative), response mode (advisory, interpretive, behavioral, or emotional), and directness For instance, the valence of feedback influences group cohesion, trust, and perceptions of feedback (Rotherham et al., 1982) Effective communication from supervisors, such as timely performance assessments, increases salespeople's understanding of expectations and their roles within the team (Walker, Churchill & Ford, 1975) Additionally, involving salespeople in decision-making processes can enhance their perceived role clarity.
Developing employee autonomy, particularly among middle managers, is essential for empowerment Task autonomy refers to the degree of freedom, independence, and discretion individuals have in scheduling their work and determining the procedures to follow (Hackman & Oldham, 1976) It allows employees to decide what tasks to undertake and how to execute them, contributing to role clarity, especially in complex job environments (Hackman & Oldham, 1976; DeRuyter et al., 2001) Research indicates a positive relationship between task autonomy and perceived role clarity in less standardized settings, while structured environments, such as call centers, show minimal impact of autonomy on role clarity (Mukherjee & Malhotra, 2006) To support this initiative, InterLog has implemented a monthly personnel report and evaluation program, encouraging managers to focus on employee engagement and well-being, thereby reducing turnover rates.
Finally,settingupaclearpathpromotioninordertoemployeeshavetargettostrive.Aclearpathp romotionmakesemployeescomfortable,notdominated.Researchesbygroups ofresearchers(Zainuddinatel.,2010)andanothergroup(Danish&Usman,2010)andSsesangaandGar rett(2005)foundapositivesignificantrelationshipbetweenopportunitiesforpromotionandjobsatisfacti on.Wanetal.,
(2012)arguethatemployeesthatperceivedpromotiondecisionsasfairaremorelikelytobecommittedt otheorganization,experiencecareersatisfaction,performbetterandsubsequentlyhavealowerintentio ntoleavetheorganization.Today,manylecturerswillconsiderleavingtheinstitutionswheretheywork,if theydonothaveequalpromotionopportunitiesasofferedbyotherorganizations,particularlyyounglect urerswhoarelookingformoreworkexperiencesfromvariousinstitutionsbeforedecidingtoremainwit haparticularinstitution.AsthestudyofKhalidetal.,
Andyearly,theBODshouldcontestamongemployeestogethertofindexcellentstaff,suchas“Iw anttobesectionsdirector”.Thoroughthiscompetition,companywillfindoutt h ekeyplayersandcrea temiddlemanagersreserve.Whenhavinganewproject,BODcanusethisreserveforce,orwhenhavinga middlemanagerleaveout,thecompanywillsavetimetofindalternativepersons.Thecosttoorganizeth iscontestisnotmuch;itjustistheawardsforthewinners.Wecanhavethreeawardsforthefirst,secondan dthirdprizes.
Awardswillbethecoursesaboutmanagementskills.InHCMC,wenowhavequitemanyschoolssupply themanagementskillscoursesformiddlemanagerssuchas:PTI,PACE,SAMandsoon.Costforeachco urseabout6,000,000-7,000,000VNDanditlasts5-
6weeks.So,totalcostforallcoursesabout18,000,000-21,000,000VND.Andthecostfor organizingcontestdosenottake,becausewecangetupitattheofficeonSaturdayeveryweek.
- Empowermentformiddlemanagerswill decreasewokpressureforBOD,andthisal sowillmakethemfeelindependentandsel f- reliantandmoreactivelyintheworkand workwithmoreresponsibility.
- Departmentheadswillhavetocloselym onitorstaffintheroomandpromptlygivec ommentandfeedbackabouttheirwork.Thi swillconsumealittleoftheirtime,howeve ritwillcreategreaterefficiencyinthework, andwillhelpachievethedepartmenttarget swell.
Bothofabovesolutionshavemorebenefitsthancosts.Andeachthathasitsownadvantagesthatar enecessaryforInterLogtoexecutethenextfiveyearsobjectives,hence,In t e rL o g shouldcombinebot hofthem.But,thefirstsolutionisbuildingaconsistentworkingprocessshouldbegivenpriorityoverbe causeitwillpromotedevelopmentacrossthecompany,reducetimetodoworkpackagesandalsowillelim inatetheinternalcontradictionsunnecessary.
ACTIONPLAN
Communicatecorpo rategoals,mi ssio n a ndvisionforemployee s
CONCLUSION
TherefourmaincausesleadtohighemployeeturnoverrateinInterLogCompany.While,confli ctandambiguityissuesareremarkable.Thoroughthisstudy,Ihaveproposeds o m e alternativesolution sforInterLogbasingoncollecteddatafromthefirm.Althoughitwillexistsomemistakes,BODofInterL ogcanuseitlikeasrecommendationstoadjustcurrentworkingprocessoffirmtobetter.
SUPPORTINGINFORMATION
Iusedqualitativeresearchmethodforthisproject.Thestrengthofqualitativeresearchisitsabilityt oprovidecomplextextualdescriptionsofhowpeopleexperienceagivenresearch issue.Itprovidesi nformationaboutthe“human”sideofanissue–thatis,theoften- contradictorybehaviors,beliefs,opinions,emotions,andrelationshipsofindividuals.Qualitativemetho dsarealsoeffectiveinidentifyingintangiblefactors,suchassocialnorms,socioeconomicstatus,gende rroles,ethnicity,andreligion,whoseroleintheresearchissuemaynotbereadilyapparent.
Who:managersofSalesDepartment,HRandFinanceDepartment,andProvisionDepartme nt.
Primarydate:I collectedfromin- depthinterviewwithemployeesofSalesDepartment,HumanResourcesDepartmentand ProvisionDepartment.Itistheresultoftheinterview.
Secondarydata:Iwastakenfromanumberofsourcessuchas:AnnualHRreports,intwoy ears2013and2014,exitinterviewreportsofInterLogCompany,somereportsofTowersWat sonaboutsalaryincreaseinVietnamfrom2004–
Firstquestion,almostrespondentssaidthatInterLoglacksofaconsistentworkingprocessbetween departments(SalesandProvisionDepartments),althoughtheybuildownprocessforeachdepartment.
Secondquestion,whenwereaskedaboutbiggestchallengesincompany,allrespondentsgavet heanswers,everyonehasevaluateddifferentineveryaspect.Theyappreciatedworkenvironment,corp orateculture,andleadershipstyle(CEO)inInterLog;b e s i d e that,theyalsomentionedsomeproblemst hattheyfaced,suchas:conflictwithProvisionDepartment,betweendepartmentslackofefficiencycomm unication,workpressure,ambiguityaboutroleandresponsibilityofindividualandeachdepartmentand e m p o w e r m e n t formiddlemanagers.Theyalsomentionedworkingprocessisnotconsistent.
Thirdquestion,theygaveahighturnoverrateduetointernalfactorssuchasinternalconflict,recrui tment,andexternalfactorssuchassalespeoplearehot,sothesalespeopleh a v e alotofchoices,leadingto thehighjob- jump.Besides,therearecommentsreferringtotheeffectswhenquittingjobrateincreasecompanywillc ostsomuchforrecruitmentandtr aini ng anewcomer,sotheyshareopinionstoreducethequitjobofsal esperson,theysupportedtheirbestforthesalespersoninworkingtogetgoodresultsaswellashighwag es.Thisthingwillcreatemotivationforsalesperson.
Forthquestion,whenaskedabouttheirdecidekeepornotwhenoneoftheirsubordinatesleftth ecompany,somepeoplesuggestedthattheywoulddecidenottokeephimwhenhedecidedtoleave,cau sethatifkept,itwouldnotlast;andtherestwereforthatcosttorecruitandtrainnewpeopleveryexpensiv e,sotheywillattempttofindwaystoretainthem,butonlyinthepermittedlevel.
Ms.M o n g H i e n : Ih a v e w o r k e d h e r e m o r e t h a n 2 y e a r s , a n d really,w e d o n o t h a v e a consistentworkingprocess be tw een departments(sales and provisionsdepartme nt) E ac hd e p a r t m e n t willdevelopitsownworkingprocedures.
Mr.VanTri:Inmydepartment,wesetupaworkingprocess,allpeoplewillbaseonittodophas eofwork,suchashowtomeetcustomers,howtomakeaquote,soon…
Ms.T h a n h H o a : B ea m a n a g e r , I t a k e t h e i n i t i a t i v e t o b u i l d a c o m m o n w o r k f l o w f o r people,w o r k f l o w b a s e d o n m a n y f a c t o r s , s u c h a s : m y e x p e r i e n c e , c u r r e n t s i t u a t i o n s o f departmentandqualificationsofstaff.Wesetupaprocedureindetail, fromhowtocallforcustomers,meetcustomer,… totakecarecustomer’ ‘Sofar,wedonothaveaconsistentwo r k in g processbetweendepartment.
Mr.ThanhTon:Wehavehad anownworking processforour department.Thisprocedureisregularlyadjustedtomatchthechangeofcompany.Yes,it’sprocedure ofmydepartmentthatmeanswedon’thaveaconsistentworkingprocessbetweendepartments.
Ms.HoangLinh:Wehavehadanownworkingprocessforourdepartment.Thisprocedurei sregularlyadjustedtomatchthechangeofcompany.
Ms.CatDuyen:Yes,wehave builtaworkprocess foreachdepartment Ithasallste psfromt h e f i r s t t o f i n a l s t e p s A n d i t w i l l b e u p d a t e d t o b e s u i t a b l e w i t h c h a n g e s f r o m customers,industryandcompany.
Ms.BichLoan: Asyouknow,I havejustworkedinInterLog foroneyear And Iwer e trainedaboutworkprocessofSalesDepartmentwhenIstared.
Question 2: During thetimeyouworkatInterlog, whatarethebiggestchallengesyou haveconfrontedsofar?
Ms.MongHien:FortwoyearsworkingatInterLog,Ihavereceivedmanythings.Ihavel earnedalotofthingstohelpworkwell,especially,helping andsharingfromMs.Hoa.Sheismyteamleader,alsomymanagerdepartment.Ireallylovethisjobandw orkenvironmentofI n t e r L o g , b u t I o f t e n f e e l t i r e d a n d s t r e s s b e c a u s e o f a r g u m e n t s w i t h E x p e r t B u re a u se Department,Ifeelmadeitdifficult.
Mr.VanTri:InInterLog,BODfocusonbuildinganddevelopingcultureorganizationwell,soworking athere,everybodyisquitecomfortable.However,conflictswithExpertBureausDepartmentareinvisi blepressureonme.Connectingandsharinginformationbetweenthetwodepartmentsaren otgood.Iknow,infacteachroomhasitsownpressure,butIthinkprovisionshastosupportm aximumforustogetmorecontracts.Additionally,thedivisionofpowersandresponsibilitiesbet weenroomsunknownisalsoanobstacleforbothstaffandm an ag e r ofSalesandProvisionsDepartment.
Ms.ThanhHoa:Ihaveworkedheremorethansevenyears.Really,Ilovethisjob,andIalsol oveworkingstyleofBOD.Withme,thisisagoodworkingenvironmentandBOD hasf ocusedonbuildingcorporateculture.Here,everybodyislikeasafamily,butitonly hap penswithineachdepartment,betweendepartmentslackofefficiencycommunication.Inaddition,fail uretoclearlydefinepowersbetweenSalesandProvisionsDepartmentsdifficultforme,some timeswithcustomersorders,followingthecompanylawIcouldmake,butp r o v i s i o n r e f u s e d , s o
I h a v e t o a p o l o g i z e t o c u s t o m e r s , t h a t a f f e c t relationshipw i t h customers.Asasales staff,Ithinkthisthingissoveryserious;itwillaffectthecompany'si m ag e intheeyesofclients,a ndalsomakecustomersfeelthewayt h e companyisunprofessional.
Mr.T h a n h T o n : T w oy e a r s w o r k i n g h e r e i s n o t s h o r t , alson o t long.I h a v e h a d o w n customers.E v e r y t h i n g i s g o o d , e x c e p t f o r t h e w o r k f l o w o f t h e c o m p a n y i n r e c e n t t i m e ch an g e that isgood forthecompanybuttocause difficulties fortheSalesDepartment, suchaslackingofquotesforcustomermakesprocesslasts,socustomersarenothappy.
Ms.Hoang Linh:After5years workingatInterLog, Iappreciatetheworkenviron menthere,butthereare somepoints Ifindinappropriate Firstly, workflow o f com panyis notcleara l t h o u g h t h e c o m p a n y h a s r e v i s e d b u t s t i l l v e r y a m b i g u o u s , n o t s u p p o r t f o r s a l e s Secondly,wehavetroubleswhenproposingstrengtheningpe rsonnel.Next,empowermentisnotclear,leadtolackofpersonsresponsiblefortheprojectwhenin cidentsoccur.Finally,CEOdoesnottrustmiddlemanagers.
Ms.CatDuyen:IadmireandappreciatetheCEO,thatisthereasonwhyIhavestuckwiththefirmi nalongterm(8years),Iadmirehisworkingstyle,managementskills, professionalc a p a c i t i e s , a n d l o n g - t e r m v i s i o n , a n d s o o n , e x c e p t a p o i n t t h a t i s empowerment,inInterLog,BOD lacksofempowermentofmiddlemanagersthatcanonlybeinterpretedasalackofconfidencei nthecapacityofmanagerstowork.Thiscreatestheoverloadf o r B O D , a n d a l s o c r e a t e s a s e n s e o f a p p r e h e n s i o n f o r m a n a g e r s t o expressthemselves i n f r o n t o f t h e c o m p a n y ' s p r o j e c t s , a n d s o m e t i m e s i t a l s o c r e a t e s c o n f l i c t s bet weenthemiddlemanagerswithBOD.
Ms BichLoan:Iama newemployee, I havejustwork here forone year During this time,Imainly trained andfamiliarwith thework,andnotcontactandworkwithcustomersmore,soIdonotencounteranydifficulty.
Question 3:Recently, theturnoverratiointhecompanyhaveincreaseddramatically i n severalpositionsanddepartments,doyouhaveanythoughtsaboutthatissue?
Ms.MongHien:Inmyopinions,highturnoverrateatSalesDepartmenthasalotofreason,buts o m e m y o l d c o l l e a g u e s w h o q u i t j o b , s a i d t h a t : “ T h e y f e e l t i r e d w i t h c o n f l i c t s w i t h Provi sionsDepartment”.
Mr.V a n T r i : Y e s ,i n t w o y e a r s 2 0 1 3 a n d 2 0 1 4 , t h e firmh a s a l o t o f employeesl e f t ; especiallys o m e m i d d l e m a n a g e r s a n d e x p e r i e n c e d e m p l o y e e s q u i t j o b a r e g r e a t l o s s t o I n ter L o g
Ms.ThanhHoa:Iknowitcostssomuchwhenhavinganemployeequitjobbecauseof trainingc o s t i s s o h i g h I n I n t e r L o g , o u r trainingp r o g r a m f o r n e w c o m e r s l a s t s f r o m 6 monthsto1year,somecases,itcanlast2years.So,highturnoverrateissomethingwe donotwish.Toavoidit,wesupportourbestforthesalespersoninworkingtogetgoodresultsandwel lashighwages.However,whenhe/ shehasintentionquitjob,personallyIwouldnottrytoholdhim/herback.
Mr.T h a n h T o n : N o w ,s a l e s i s a h o t c a r e e r , a l m o s t c o m p a n y n e e d s a l e s p e o p l e t o g r o w marketalsoincreaserevenues,sothesalespeoplehavealotofchoices,leadingtotheh ighjob-jump.
Ms.HoangLinh:SalesDepartmenthashighturnoverrate,thecauseofthisisduetothere cruitment,managersdepartmentdonottoinvolveinterviewingandchoosingpersonnel ,butdirectlyCEOparticipateinrecruitment,resultedinsomeconflictshowtoselectsuitablepersonne lfordepartment.
Ms.CatDuyen:Inmyopinion,Ithink,themovementofhumanresourcesofthecompanyinr e c e n t t i m e s , e s p e c i a l l y i n t h e S a l e s d i v i s i o n i t h a s m a n y c a u s e s , b u t p r i m a r i l y c o m e s frominternalcausessuchas:theambiguityinthedivisionofresponsibilitiesandrightsofth e departmentsledtotheconflictandhadtwoexperiencedemployeesofSalesDepartmentwereo f f w o r k b e c a u s e o f t h i s p r o b l e m , c o n f l i c t s b e t w e e n t h e m a r e i r r e c o n c i l a b l e contra dictions.AndpromotionopportunityinInterLogisnotreallyclear,thisalsomakesemp loyeesl a c k m o t i v a t i o n t o s t r i v e a n d e a s i l y g i v e c o m p a n i e s t h e y c a n f i n d a n o t h e r companywithmoreopportunitiesforadvancement.Thatistheinternalcause ofthe company,a n d t h e e x t e r n a l c a u s e i s v e r y c l e a r t h a t i n r e c e n t y e a r s , V i e t n a m ' s l o g i s t i c s industryisbooming,andpersonnelforthissectorisreallydeficient,especiall yintheSalesdepart ment,s o t h e w o r k i n o t h e r c o m p a n i e s w i t h h i g h e r i n c o m e l e v e l s a l w a y s a t t r a c t s Salespeopletodecidejob-hopping.
Ms.BichLoan:Accordingtomyopinion,currently,mostcompaniesfocusondevelopingsal esdepartmenttoexpandandseeknewcustomers,sothedemandforsaleslot,whichisthere asonforthesalesjumpandlookfortheopportunitiesthattheyfeelsuitablewiththem.
Ms.MongHien:Ithink,ifoneofmysubordinateswantstoleavethefirm,Iwillaccept,butI willhaveameetingwithhimorhertofrankdiscussionaboutreasonsmakehim/ herwantq u i t j o b F o l l o w m e , w h e n a p e r s o n h a d i n t e n t i o n t o q u i t j o b t h a t m e a n s h e h a s thoughtsandownestimates,sowecouldn’tkeepthemstay.
Mr.V a n T r i : B ea d e p u t y o f S C M , I k n o w c l e a r l y t h e c o s t w h e n a n e m p l o y e e q u i t LogisticsIndustryuntil nowisstill arelatively newindustry inVietnam, andisgrowing strongly,s o t h a t h u m a n r e s o u r c e s f o r t h i s s e c t o r i s r e m a i n s s c a r c e , especiallyt h e experiencedp e r s o n n e l T h e r e f o r e , I d o n ’ t w a n t a n y o n e o f m y s u b o r d i n a t e s l e a v e t h e company,especiallykeyplayers.So,whenithappens,Iwilltryt okeepthem.
Ms.ThanhHoa:AsImentioned,inworking,Iwillsupportmybestforsubordinates.But,iftheyw anttoleavethefirm,IwilnotkeepthembecauseIhavetriedmybesttohelpandsupportthem,they wanttoleavethatmeanstheyhavehadowntheirplan.
Mr.ThanhTon:Asamanager,whenoneofmysubordinatesleavethecompany,Iwil lkeephimornotdependonhisworkingability,ethic,…
Ms.H o a n g L i n h : Iw o u l d a s k w h y t o r e s i g n , d e p e n d i n g o n t h e r e a s o n s t h a t m a k e t h e variousworkarounds.Suchas:resignedbecauseofincapacitytofulfillthe job,Iwillnotkeepthemstay.
Ms.CatDuyen:Ifmysubordinateshaveturnoverintention,Iwillfindoutreasonwhytheydecidedtha t,ifthereasonstemsfromthewages,pressure,conflict, Iwilltrytosolve, analyzean dreleasethepressureonthem.Whatifafterallthattheystillwanttogo,Iwillnoth o l d t h e m a n y m o r e A n d d e c i s i o n t o r e t a i n t h e m a l s o d e p e n d m y j u d g m e n t o n t h e employee,ifthat'skeyplayerswilltrymybesttokeepthem.
Ms.BichLoan:Whenapersonwantstoleavethecompany,surehewillhavetheirownr easons,andIthink,ifyoukeephim,thiswilljustmaintainforashorttimebecausesoonerorlaterhe willalsoleavewell,soIwillnotkeephim,insteadofthatIwillhaveatalkingwithhimtounde rstandreasonwhyhedecidestoleave,andfromthatlessonstoavoidforthefollowingcases.
Ms.MongHien:AsImentioned,Ithinkinternalconflictisoneof reasons.Besideth at,workloadisalsoacause,forservicesector,competitionissohigh,sopressureisals osohigh.
Mr.VanTri:‘Inmyopinions,somecausescanleadtointention-quitjobofemployees:
Ms.T h a n h H o a : Il o v e t h i s j o b a n d c o o p e r a t e c u l t u r e o f I n t e r L o g , s o I n e v e r h a d t h e intentiontoquitjoborjob- hopping.But,workingheremanyyears,Icouldconcludesomecauses:
- Workisnotclear, overlapbetweendepartment andhave atransfer between departmentssomuch.
Ms.CatDuyen:AftereightyearsworkingforInterLog,Icanaccentuatesomereasonswhyemployeesqui tjob,suchas:
ThecommonthemesofsuggestionsforambiguityproblemofInterLogmanagersmentionedsetup astandardsworkingprocessfortwodepartmentsSalesandProvision,definetheclearrolesandresponsib ilitiesofeachemployee,aswellasthepowersofeachd ep a r t m en t toavoidoverlappingonwork,andal somentionedthatshouldmakeempowermentformiddlemanagerstoreducethepressuretotheCEO.Ina dditiontothegeneralideathat,thentherearesomesuggestionsonbuildingpromotionopportunities,perf ormingcommentsandfeedbacktimelyforemployees’performance.
4 DangNguyenThaoLinh DeputyofHR&Marketing(Rec ruitmentExecutive) 5years
InterLogishighturnover- ratethatIhavecommunicatedtoyou;inyouropinions,youwillproposewhatsolutionstoresolvethis situation?
Ms.ThanhHoa:First,theneedtoacceleratefinishingofworkflowprocessbetweentheSalesandProvis ionDepartments,inwhichhastoparticularanddetailonworkofeachstageaswellastheestimatedtimefor eachstage.Besides,BODneedsforcleardelineationofrolesandresponsibilitiesofeachdepartment,ino rdertoavoidoverlappingrightscauseconflictsatwork.AndtheCEOshouldalsoconsiderdecentralizatio ntomiddlemanagers,ith a s reducedtheworkpressurefortheCEO,andIthinkitwouldalsobemotivatedt oeachmanagertoworkwithmoreresponsibility.Intermsoftherolesandresponsibilitiesofeachemplo yeeisunclear,managerswillbecombinedwithHRmanagerstosolvethisproblem.
Ms.HoangLinh:Basedonthesurveyresultsofthesiblings,itisclearweneedtosolvetheimmediatefut ureistobuildcommonandunifiedworkingprocessforbothSalesandPr ov isio n Departments.Next,BODshouldpayattentiontosolvetheseparationofpowersformiddlemanagersasinthepreviousintervi ewIhavementioned.Theambiguityintheroleofemployeeperhapsgreaterfaultliesinthemanagers,wh ichIthinkwouldbe redressed.Plus,Ithinkthecompanyshouldbuildaclearpathpromotionorpromotionopportunities tomotivateemployeestostriveforthemselvesaswellasforthemanagers.
Mr.PhuLoc:Aboutthesolution,wefirstneedtoaddressthreeissuesraisedinthesurvey.Besides,Ialso proposeanumberofsolutionstohelplimitcurrentsituationofcompanyisthehighemployeeturnoverr ate.Itisnecessarytofocusontherecruitmentprocess,inrecruitmentsegmentIthinktheCEOshouldcha nge,shouldgivemanagerstherighttocheck/ testforpersonnel,insteadCEOwilltestfirstandthenistheheaddepartment,Ithinkthisprocessshouldber eversed.
Ms.ThaoLinh:Intermsofpersonnel,Ihavesomesuggestionsasfollows,continuetoperformthemont hlyreportonthesituationofeachdepartmentpersonnel,inaddition,themanagerneedstopayattentionto makecommentandfeedbacktimelytoencourage,motivateemployees,giveemployeesthefeelingofca reandappreciatetheirability.
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