Solution to enhance the internal communication issues interlog company

VIETNAM’SLOGISTICSOVERVIEW

GeneralOverview

G r o w t h R a t e ( C A G R ) o f 2 7 % f r o m 2 0 1 3 to2 0 2 0 w i t h i n c r e a s i n g 3 P L – o u t s o u r c i n g needsf r o m b ot h e x i s t i n g a n d n e w m u l t i n a t i o n a l c o r p o r a t i o n s a s w e l l I n f a c t , t h e 3 P L i n d u st r y inVietnamisgrowingquickintermsofrevenuesanda ctivefirms,particularlyi n theSouthernregion.Inaddition,the3PLrevenuesareprojectedtoachi eve11.8billionU S D i n 2 0 2 0 w i t h a C A G R a t 2 5 8 % from2 0 0 7 t o 2 0 2 0 I n d e e d , t h e n umbero f 3 P L membersofVietnamLogisticsAssociationincreasedtremendouslyfro mfourmembersintheperiodof1994to1997to275membersinJune2014.

 Infrastructure:ports,terminals,railway,androads

Themaino b j ec t i v e o f l o g i s t i c s ist o moveg o o d s fromth ei rp o i n t o f b e g i n n i n g tot h e pointofconsumptionwhileconformingtocustomerrequirements.

Amongtheaboveseveraltypesoflogistics,themostcommononeistransportation( o n t h e r i g h t - h a n d s i d e ) , w h i c h o c c u p i e s a b o u t 4 0 % t o 6 0 % o f l o g i s t i c s c o s t T r a ns p o rt a ti o n cantaketheformofmanycombinationsofmodesandroutes.Basically,thereare fiveroutesinworldwide:

Notably,Vietnamenjoysagoodlocationwithintheregionandisequippedwithah u g e transportinfrastructure.Aspeoplemayknow,ithasmorethan3,000kilometersofcoas tline,issituatednearbyvitalinternationalshippinglanes;49seaports,classifiedins i x groups accordingtotheirgeographiclocationalongthecoastlines (VietnamMarineAdmin istration–

VMA,2013);and206thousandkilometersofroadways(GSO,2012).N o n e t h e l e s s , the qualityofthetransportinfrastructureisstilllowcomparedwiththegoodg e o g r a p h i c a l condition. Vietnamwasranked44thininfrastructureLogisticsPerformanceI n d e x ( L P I ) , w h i c h i s mu chl o w e r t h a n M a l a y s i a ( 2 6 t h ) , C h i n a ( 2 3 r d ) a n d T h a i l a n d ( 3 0 t h ) A d d i t i o n a l l y , int h e “ G l o b a l C o m p e t i t i v e n e s s R e p o r t ” o f WEF,V i e t n a m w a s rankedlowintermsofqualityoftransportinfrastructurebutdidshowabitofim provementsfrom2012to2014.

LimitationsandObstacles

Presently,theWorldBankassessesthatthelogisticsinfrastructureofVietnammayb e a bletoaccommodatefastgrowthbuttherearestillmanylimitations.Thelimitationscomef romtheprevalenceofunpredictabilityinthesupplychainsasfollows:

(iii) Isolationinplanningandexecutingtransportationinfrastructure proje ctswithoutconsideringsupply–demand

Despites e v e r a l i n e f f i c i e n c i e s a n d w e a k n e s s e s , V i e t n a m ’ s l o g i s t i c s a r e n o w becomingamajordriverin thedevelopmentofthe nation’s economicdevelopmentsinceVietnam’slogisticscostoccupiesabout25%ofGDP.Itisexpe ctedtogrowataCAGRo f 27%from2013to2020,whichisinlinewiththerisingtrendo

P a c i f i c P a r t n e r s h i p a n d o t h e r f r e e t r a d e agreementssuch astheVietnam– EU,NAFTA,andAFTAetc.comingintoeffectinthen e a r f u t u r e w i l l s e r v e t o i n c r e a s e

Nevertheless,7 0 % t o 8 0 % o f t h e l o g i s t i c s marketc u r r e n t l y b e l o n g s t o 2 5 b i g foreign companiesamongthe1,200logisticscompaniesthatoperateinV ietnam.Likewise,assomesegmentsofthelogisticsmarketopensfullytoforeigncompa niesina c c o r d a n c e withWTOcommitments;thegrowthopportunityforVietnamese firmswilln a r r o w downsignificantly.Inordertoincreasecompetitivenessaswell asimprovethecapabilityo f t h e l o g i s t i c s s e c t o r , t h e V i e t n a m e s e g o v e r n m e n t hasd r a f t e d a d e t a i l e d masterplanforeachtypeof transportationmodeand logisticsservices.It definitelytakestimeandcosttotransformthemasterplanintothereallifeforVietnamlogisticsfirms.

PROBLEMCONTEXT

CompanyBackground

InterLogistic Company, established in August 2005 and headquartered in Ho Chi Minh City, has developed a strong workforce of over 100 full-time staff and a Board of Directors comprising three members The company has established an official network across three major cities in Northern, Central, and Southern Vietnam Its mission is to create an effective supply chain that benefits both customers and the community.

Email:Info@interlogistics.com.vn

Website:www.interlogistics.com.vn

Int h e n e x t 5 years,I n t e r l o g h a s o r i e n t e d tob e c o m e t h e l e a d i n g s u p p l y c h a i n innovatornotonlyinVietnambutalsoinIndochinaarea.O v e r 1 0 - y e a r d e v e l o p m e n t , theyhaveachievedseveralsignificantmilestones,including:

 2008:Becamea g e n t ofP C I ( P a c i f i c C o n c o r d I N T L ) a n d t o b e a p p r o v e d a s a n Offi cial LicensedCustomsBrokerbyVietnamCustomsGeneralAgency

MainAchievements

(LogisticsProvider)firstinVietnamandIndochinaspecializinginservice" one-sto p" forclientsandpackages.

OrganizationalStructure

Interlogs e t s u p i t s o r g a n i z a t i o n a l s t r u c t u r e i n t o p a r t i c u l a r d e p a r t m e n t s t h a t r u n ea ch partofeveryshipmentfromcustomers.TheorganizationsystemofInt erlogcomprisesofSalesDepartmentand ExpertBureau

Department.Indetails,SalesDivisionc o n t a i n s threesegmentsofExport,ImportandD omesticsshipmentsmeanwhileExpertBureau Departmentgetsinvolveindocuments,custo ms,truckingandwarehousingetc.

ThisorganizationalstructurepresentsthattheGeneralDirector(GD)hastod i re c t l y t a k e r e s p o n s i b i l i t y s i x o u t o f t w e l v e departmentsm e a n w h i l e t h e s o l e D e p u t y D i r e c t o r hastotakecarefivedepartmentsinthecompany.Thisisahugeworkloadf orb o t h twoofthemandtheymaynotbeabletocloselymonitoreachdepartmentsothatthec o m p a n y needsadditionalDeputyDirectortosharetheworkload.

PROBLEMIDENTIFICATION

ProblemSymptom

In today's competitive landscape, employees have become a vital strategic asset for organizations, significantly impacting overall performance They serve not only as the production force but also as corporate ambassadors, representing the organization to external stakeholders, such as customers and shareholders Fostering strong employee-organization relationships enhances productivity and cultivates a workforce that nurtures quality external relations while safeguarding the organization's intangible assets like reputation Additionally, delivering high-quality services and ensuring customer satisfaction are essential for achieving a sustainable competitive advantage Research indicates that employees who feel a strong sense of belonging are more inclined to learn new skills, share knowledge, and focus on quality and output Furthermore, the commitment literature highlights the strong interconnection between employee performance, job satisfaction, and the fulfillment of both economic and non-economic needs.

HereistheturnoverincidentthathappensintheInterlogCompany.Theseemploye esw o r k e d a t d i f f e r e n t p o s i t i o n s i n t h e c o m p a n y s u c h a s m i d - l e v e l m a n a g e r , assistantandstaffs.Therewere16outof82peoplein2013and25out of92peoplein2014leftthecompanythataccountabout20to27percentoutoftotalemplo yeesbasedo n t h e a n n u a l r e p o r t o f HumanR e s o u r c e ( H R ) D e p a r t m e n t I n f a c t , t h i s numberi s c o n s i d e r e d a s a highturnoverrateforasmalllogistics servicecompanyinVietnamsincetheaverageturnoverratein2014isapproximately10%

Amongt h e s e d e p a r t i n g e m p l o y e e s , t h e t u r n o v e r r a t e o f S a l e s D e p a r t m e n t a c c o u n t e d f o r 5 0 % o u t o f t o t a l a n d t h i s numberi s q u i t e h i g h f o r o n e o f t h e mostimportantd e p a r t m e n t s a t t h e c o m p a n y Thisd e p a r t m e n t c o m p r i s e s o f f o u r d i v i s i o n s : Interconsol,AgentsDevelopment,SalesandSupplyChainManage mentandtheyarethemainsourcestobringbacktherevenueforthecompanysofar.

Academically,employeeturnoveriswelldefinedasthemovementofemployeesa c r o s s thelabormarket;betweenfirmsandpositions(Ongori,2007).Afocusedd e f i n i t i o n focusingonasingleorganizationproposedbyPrice(2001)explainsturnovera st h e movementof aw o r k e r o v e r t h e membership boundaries of ano r g a n i z a t i o n Chikwe ( 2 0 0 9 ) a n d Cho,Woods,Jang and

Erdem( 2 0 0 6 ) claim,h o w e v e r , t h a t t h e d e f i n i t i o n ofturnoverreferstothereplacementofanemployeewholefttheorganizatio nw i t h a newlyh i r e d e m p l o y e e Ont h e f l i p s i d e , t u r n o v e r i s onlyc o m p l e t e d o n c e a replacementt o f i l l t h e o p e n v a c a n c y i s s u c c e s s f u l l y r e c r u i t e d

A d e g r e e o f e m p l o y e e turnoverisbeneficialtoanorganizationasnewtalentprovidesn e w perspectivesandskills.Nonetheless,whenturnovercostsurpassesthebeneficialvalueofnewe mployees,o r g a n i z a t i o n a l effectivenessdeclinesgradually.

SubstitutionCost AdvertisingpositionavailabilityinvariousmediachannelsPlacementtest andentranceinterviews Holdingdecision-making meetings

The turnover rate is calculated by dividing the number of employees who leave an organization during a specific period by the average number of employees during that same period, then multiplying by 100 (Price, 2001) This method is rarely used as it does not differentiate between voluntary and involuntary departures (Msomii, 2010) According to Perez (2008), the intention to leave an organization is heavily influenced by various organizational factors, including job stressors, organizational culture, management relationships, and support systems These factors play a significant role in an employee's decision to terminate their services Furthermore, Huselid (1995) found that a high turnover rate is closely linked to negative outcomes for organizations, such as reduced productivity and increased costs associated with hiring and training new employees.

1 9 8 4) andw e a k f ut ur e pe r f o r m a n c e as we l l ( B a r o n , Han na n andBu rt on, 20 01 ) T h u s , thisisabadsymptomforanycompanythatwantstoenlargeanddevelopco nsistentlyw i t h thehighturnoverrateasabove.

This article explores potential causes influencing employee turnover, specifically within the Sales Department of Interlog Company The study employs a qualitative approach, utilizing in-depth interviews and secondary data from HR and Finance annual reports, as well as external sources A targeted sample of eight mid-level managers and experienced employees was selected for interviews, as they possess the necessary expertise to assess the current situation at the company.

(Source:Allof thedataisgatheredfrom Annual HumanResourcereportofyear2013&2014)

Alloftheliterature reviewsinthistable belowwillbe usedinorder tofindoutthetentativeproblemsintheInterlogCompany.Eventhoughsomeoftheoriesarenotqu iteu p todated,theyarestillveryusefulsourcesfortheauthor.

No Author Antecedents Consequences Findings

EffectofManage mentCommitme nttoServiceQual ityo n FrontlineE mployees’JobAt titudes,Turnove rIntention.

Theorganizationalcomm itmentbecomesa ninsign ificantpredictorofturnov erintentionwhentheeffec tofjobsatisfactioni s take nintoconsiderationandth atthisisconsistentwithlo ngitudinalresearchindica tingthatjobdissatisfactio ncausesturnover.

Thestudyresultsalsosugg estthattraining,employee rewards,supportivemana gement,servantleadershi pandservicetechnologyj ointlyaffecttothejobsatisf actionandorganizational commitment.

02 Jing,Keng&Cho ong(2011).T he r elationshipbetwe enpeople- relatedtotalqualit ymanagementpra ctices,jobsatisfac tionandturnoveri ntention.

Thisstudyshowsthesecru cialfactorsofleadership,l eveloftraininganddevelo pment,degreeofemploye eempowerment,extentof employeeinvolvement,le velofteamworkaswellast heimpactofrewardandre cognitioni n increasingth ejob ofBusinessMan agement(Vol.5,

OrganizationalC ommitment,JobS atisfactiona n d T urnoverIntention ofMissionaries.

Theresultssupportthatten ure(notage)isthemoreim portantfactorintermsofor ganizationalcommitment ,jobsatisfactionandturno ver intention.Theaffectiveor ganizationalcommitment playsamediatingrolebet weenjobsatisfactionand turnover intentionrathert h a n jobs atisfaction.

04 Ceyda(2014).Im pactoffit,involv ement,a nd tenur eonjobsatisfacti ona n d turnoveri ntention.TheSer viceIndustriesJ ournal(Vol.3 4,

Accordingtothefindings ofthisstudy,longertenure d,highlyjob- involvedemployeesne e d to beprioritizedtobenefitfro mthejobdesignprograms. Thehighorganizationalc ostsassociatedwithemplo yeeturnoverinserviceind ustries,theretentionofthe sevaluableemployeesisa lsocriticalforthetransfer ofaccumulatedknowledg eandskillstone w employ ees.Bothrecruitersandap plicantst o developacom monunderstandingofthe basicjobattributesatt h e b eginningoftheemployme ntperiod

05 Ahmad,Mohama d,Ahamd,MOhd and

- ExtrinsicJobSatisfaction (WorkingCondition- Supervisor-Co-Worker)

Bothformsofjobsatisfac tion(intrinsica n d extrin sicsatisfaction)haveinve rserelationshipon relationshipbet weenJobSatisfa ctionandTurnov erIntention.

WorkValue) employees’turnoverinten tions.Howeveritisf o u n d thatinthisresearch,theintr insicsatisfactionhassigni ficantlyinversecorrelated withturnoverintentionasc omparedtotheextrinsics atisfaction.Thatmeanst h e extrinsicsatisfactionfou ndedtohavelessinfluence withnegativerelationship onturnoverintention

04).Internalcom municationissues in anITengineering department.AnIn ternationalJourn al(Vol.9,

High levels of dissatisfaction with organizational procedures and bureaucracy are hindering productivity due to excessive red tape Employees are facing unreasonable time pressures and job demands, indicating an unsustainable workload Additionally, there is a strong belief among organizational members that they have not received adequate training to effectively handle a wide range of customer issues essential for their roles Furthermore, management's actions are not perceived as demonstrating a commitment to the company's goals and objectives Lastly, employees feel insufficiently rewarded and recognized for their contributions and achievements.

07 Millissa&Cheun g(2010).Manage mentcommitme nttoservicequalit ya n d organizati onaloutcomes.A nInternationalJ ournal(Vol.2 0, I ssue3)

Themanagementcommit mentispositivelyrelatedt oeffectiveemployeeinvol vement,andthisinvolvem entispositivelyassociate dwithemployees’jobsati sfaction.Inaddition,effec tiveemployeeinvolveme ntfullymediatestherelati onshipbetweenmanagem entcommitmenttoservice qualityandorganizational outcomes

Doesinternalcom municationt o ge neratetrustalway sincreasecommit ment?

Internalcommunicationc a n b e consideredasjustonea mong manypossiblesolutionsto beu s e d toincreasecomm itment,butnottheonl yon e.

Theliteraturehighlightsth atinternalcommunicatio nactsas alevertogenerateemploy eetrustrelationships.Whatbecomesimportantt oincreasecommitmentist hereforet he relationship between managementandsinglee mployee,thecombination ofinformationthatmanag ementprovidestoemploy ees

TurnoverIntenti onandADiminis hedLevelofOrga nizationalComm itmentasAntece dents.

Allthreemindsetsoforgan izationalcommitment(aff ective,normativeandcont inuance)predictturnover intention.Thepracticalim plicationofthesefindings canassistmanagementine nhancinganarrayofwork behaviorssuchasj o b perf ormance,workattendanc eandorganizationalcitize nship,andalsoreduceturn overrate.

- JobFactors(Task Autonomy,TaskUn certainty)

TaskUncertainty willl e a d toemployees’l owerjobsatisfaction andhigherquitintentiond u e t o themediationeffectborn byroleambiguity.

Itshows thattherelationshipbetwe ent a s k uncertaintyandro leconflictwouldbepositiv eforlowself- efficacyemployees. Employeesaresupposed tobeabletolowertheirjob stresswhentheyhavethe decisionpowerontheirj o b s

TheLacklusterMotivation and Promotion

Accordingt o M r s M i n h N g u y e t w h o w o r k e d ast h e DeputyMa nage r o f Acco untingDepartmentfrom2009till2013andMrs.NgocDiepwhoworkedasastaffofDocu mentary

From 2008 to 2014, employee turnover intention stemmed from a lack of motivation and development opportunities within the company, leading to a diminished perception of career advancement Employees felt uncertain about their future due to the absence of a clear promotion roadmap, which resulted in a gradual loss of inspiration before leaving the organization Individuals have the right to choose various career paths, typically following one of two trajectories: a linear career path that progresses up the organizational hierarchy or a focus on becoming experts in their field To retain talent, companies must implement strategies that clarify career progression and align with employee aspirations Research by Wubuli (2009) on fast-food employees, including those at KFC and McDonald's, revealed that work conditions, pay equity, and promotion opportunities significantly influence job satisfaction, emphasizing the critical role of motivation in employee retention.

Accordingtotheannualreportinthefiscalyear2014and2013fromtheA c c o u n t i n g Department,Mrs.ThuyLoanwhoworksasanaccountingmanagerbelievedthatthepotent ialreasonthatcausedthehighturnoverrateofemployeemightnotbetheb asesalary.

LaborCost/People 99,167,613VND 115,387,261VND 118,502,135VND

Ane x p l a n a t i o n f o r t h e s e numbersi s t h a t in2 0 1 3 t h e c o m p a n y i n c r e a s e d t h e a n n u a l b a s e s a l a r y p e r e v e r y s i n g l e e m p l o y e e by1 6 p e r c e n t from9

9 , 1 6 7 , 6 1 3 M i l l i o n V N D to115,387,261MillionVNDforeachsingleemployee.Andt henin2014thebases a l a r y w a s increasedby3percentfrom115,387,261MillionVNDto11 8,502,135MillionVND.Thesenumberswerequitegoodwhenitwascomparedwiththein flationr ate inVietnamthatwasonly6.6percentand4.09percentin2013and2014respectively.T h a t meansthelaborforcestillgetthehigherbasesalaryafterdeductingtheinflatio np a r t i c u l a r l y duringtheVietnamrecoveringeconomy.

DHB International JSC Vietnam in year 2014)

Table 8:Vietnam’sLogisticAverageSalary EMPLOYEEPOSITIONS AVERAGESALARYPERMONTH

Non-experiencedemployees From4 to 6 MillionVND

Mid-levelmanager From15 to17 MillionVND

Mrs Thanh Hoa, a manager at the Sales Division of Interlog, notes that while the base salary and commission rates for the sales force are average compared to the logistics industry in Vietnam, some competitors allow their salesmen to manage customer service from start to finish, leading to higher commissions However, this approach poses a risk for companies, as customers may become loyal to the salesperson rather than the company itself, potentially following the salesperson if they leave To mitigate this risk, Interlog has implemented tactics to limit the power of salesmen by breaking tasks into smaller activities involving more team members, which enhances collaboration and increases the likelihood of successful contract negotiations This strategy also frees up sales personnel to focus on acquiring new customers, although it results in a significant decrease in commission rates from 16% to 12%.

Academically,P a p a s o l o m o u & V r o n t i s ( 2 0 0 6 ) h a v e i n d i c a t e d t h a t t h e r e i s n o d o u b t thatthemotivationisacrucialfactorwhichdrasticallyimprovest heperformanceo ft h e s t a f f s ; m a n y c o m p a n i e s b u i l d u p a systematicr e w a r d s y s t e m t o m o t i v a t e i t s employeesinordertodeveloptheirjobperformance.Likewise, rewardsarenotonlyvitali n incentivizingemployeestodeliverhighqualityofperformances butalsoimportantinmotivatingthemw h e n d e a l i n g w i t h h i g h p r e s s u r e d u r i n g w o r k i n g p r o c e s s ( F a r r e l l & Rusbult,1981).Analysesfoundthatanorganization’sreward structurecanhaveas i g n i f i c a n t impactonemployeesatisfaction ando r g a n i z a t i o n a l commitment aswell( B r o w n &Peterson,1993).Inreality,therewardinfrastructuresofmodernorganizati onsa r e c o m p r i s e d o f t w o majorc a t e g o r i e s o f r e w a r d s : f i n a n c i a l a n d n o n - f i n a n c i a l (ArmstrongandMurlis,2005;MilkovichandNewman,2008).AccordingtoNal dửkeneta l

( 2 0 1 1 : 2 8 6 ) , t h e f i n a n c i a l i n c e n t i v e s p r o v i d e d f o r e m p l o y e e s a r e l i s t e d asp a y m e n t raise,premiums,profitshare,economicawards,paymentpackages,etc.Ellis andP en n i ng t o n ( 2 0 0 4 ) c l a i m e d t h a t f i n a n c i a l i n c e n t i v e s h a v e a short - terme f f e c t o n t h e motivationl e v e l s o f employeesa l t h o u g h theyplaya c r i t i c a l r o l e i n t h e i r motivation.T h e r e f o r e , n o n - f i n a n c i a l i n c e n t i v e s a r e a l s o r e q u i r e d t o g i v e a l o n g - t e r m m o t i v a t i o n a l ef f ect i n s t e a d o f t h e s h o r t - t e r m e f f e c t s o f financiali n c e n t i v e s a t t h e s e p r e m i s e s Non- financialincentivesarelistedasenablingauthority,participatinginthemanagement,jobenric hment,promotion,holidays,betterworkingatmosphereandfacilitiesetc.

Briefly,thefirst problemof theInterlogCompanyis lackingof effectiveincentivemotivationandcareerladderpromotion.Itdrasticallydecreasesthewo rkingmotivationa n d createstheturnoverintention.

TheIneffectiveInternalCommunication

Mr Phuoc Loc, a manager at the Customs Department, highlights ongoing communication issues between the Sales and Customs Departments, which leads to internal conflicts and inefficiencies Employees at the Customs Department feel that the Sales team lacks professional knowledge regarding imported goods, while the Sales team believes the Customs Department imposes unnecessary complications, such as demanding certificates of origin and detailed customer profiles This friction wastes valuable working hours and creates a challenging work environment Research indicates that a positive organizational climate correlates with employee satisfaction, customer satisfaction, financial performance, and reduced turnover Although mid-level managers possess good professional knowledge, they often lack effective management skills, particularly in human capital management A conducive work environment can enhance employee performance and commitment to organizational goals Satisfaction in workplace relationships, defined as equitable reward distribution and positive feelings towards colleagues, is crucial for fostering long-term employee engagement According to Ni (2007), satisfaction is the most studied indicator of effective employee relations, as satisfied employees are more likely to commit to their organization.

Mrs Thao Linh, Deputy Manager at the HR Department, highlights that communication between the CEO and mid-level managers is unclear and inconsistent, impacting the empowerment of subordinates The CEO's recruitment strategy is particularly problematic; while he prefers hiring freshly graduated students for their trainability and lower salary expectations during economic downturns, mid-level managers are often too busy to provide adequate training Consequently, they request the hiring of experienced employees to minimize training time New hires typically undergo two months of training based on the experiences of senior managers rather than current professional theories, leaving them unprepared for a competitive environment Furthermore, the CEO's strong belief in Feng Shui and Chinese zodiac signs leads him to personally conduct final interviews, undermining the authority of mid-level managers and creating internal conflict, as they feel their opinions and capabilities are undervalued.

Inordertounderstandclearlythisaspect,Ms HoangLinh whocurrentlyworksasManageratInterconsoleDivisionsaid“thereareonlytwopeopleinthi scompanywhoh a v e MasterofBusinessAdministration(MBA)degreemeanwhileth emajorityofstaffs gotthebacheloranddiplomadegrees.Additionally,mostofthemid- levelmanagersdidn o t havemanagementbackgroundandbeforegettingpromotion,they weresenttolearnaveryshortcourseaboutmanagement.Thus theymaynotbeableto closelymonitorandsupporttheirsubordinatesintheappropriateway”.

In today's competitive market, companies require comprehensive information from both micro and macro environments to achieve their objectives Effective internal communication is crucial, as it addresses the information needs of all employees and can be more significant than external information in certain situations Defined academically as all forms of communication from management to employees, internal communication is a central component of effective business operations It plays a vital role in ensuring high service delivery satisfaction, fostering trust, respect, and loyalty among employees Organizations must implement robust strategies to enhance communication levels, facilitating the transfer of knowledge and information among employees.

Effective internal communication is crucial for enhancing productivity, reducing absenteeism and costs, and fostering higher levels of innovation and quality services (Argenti, 2007) Conversely, poor internal communication can significantly hinder work efficiency Hargie (2004) noted that ineffective communication can lead to high employee turnover, disorganized company activities, failure to meet organizational targets, ineffective strategies, marketing shortcomings, and an inability to compete in the market Additionally, inefficient communication between departments and inadequate managerial skills among mid-level managers contribute to employee dissatisfaction and low commitment.

TheHeavyWorkload

Ms.B a o N g o c w h o w o r k s a s t h e H R m a n a g e r i n t h e c o m p a n y noti ced“ t h e n u m b e r offemaleemployeesleftthecompanyincreasednearlytriplefrom2013 to2014duetotheheavyworkload”.AccordingtotheAnnualHumanResourcereportfrom

HRdepartmentofInterlogCompany,in2013,therewereonly6outof16femaleemployeesl e f t thecompanymeanwhilethisnumberin2014increasedsignificantlyto16outof25a n d th isnumberaccountedfor64percentoutoftotal.Thecommonreasonisthattheycan n o t enduretheextremelyhighworkloadofthelogisticindustry.

Many employees in the Documentation and Supply Chain Departments of the company often work overtime and miss public holidays due to the arrival of feeder and mother vessels at Vietnamese ports The company employs a significant number of female staff, as they tend to be more patient and careful, making them suitable for back-office roles such as documentation, procedures, and administration Although back-office functions do not directly generate revenue, they provide essential support and administration for the organization Front office staff interact with consumers and clients, relying on the back office to operate effectively.

(previously knownastheV i e t n a m FreightForwarderAssociation(VIFFAS)),therearemore than1,200enterprisesi n t h e l o g i s t i c s s e c t o r ( V n l o g i s t i c s v n , 2 0 1 5 ) H o w e v e r , e x c e p t t h e S t a t e O w n e d E n t e r p r i s e s , mostoftheenterprisesareverysmallwithacontri butedcapitalfrom

VND4b il li o n (USD187thousand)toVND6billion (USD 281thousand).Therear eabout25multinational logist ics companiesin Vietnam( e g DHL,UPS,FedEx, etc.),whicha c c o u n t f o r 7 0 % t o 8 0 % o f marketshare.Meanwhile,mosto f Vietnam’slogisticscompaniesonlyserveassub- contractorsoragenciesforforeigncompanies.Thelogistics

– outsourcingrateofVietnamesecorporationsisstilllowat25%to30%,whichismuchlowertha nChina(63%)andJapan(40%).

The logistics industry faces significant challenges in meeting customer demands for timely delivery of products and services, especially during peak seasons Delays in cargo delivery can disrupt production planning and trading, leading employees to frequently work overtime This situation poses particular difficulties for female employees, especially those who are newly married or have young children, as they require more time to care for their families Additionally, a study by Mora and Ferrer (2009) revealed that women are statistically less satisfied than men in job satisfaction domains such as promotion opportunities, earnings, and job security, highlighting ongoing gender disparities in the workplace.

Academically,G a r v i n ( 1 9 8 8 ) s t a t e d t h a t o r g a n i z a t i o n c o u l d c o m p e t e byg i v i n g r e c e i v e d valuethroughinnovationandquality.Somehow,thenichema rketisalucrativesegmentforthesmallandmediumfirmstoinnovatetheirproductsandser vicesqualitybyfinding n e w s o l u t i o n f o r e a c h customeri n o r d e r t o c u t d o w n timea n d w o r k p a p e r p r o c e s s t o o Satisfaction with thedeliveredproductsand services hasbeen suggested andempirically d o c u m e n t e d a s a f f e c t i n g t h e b u y e r ’ s d e c i s i o n s t o c o n t i n u e a r e l a t i o n s h i p

Tosumup,allofthetentativeproblemsthathavementionedaboveneedtosolveproper ly.Incasetheproblemcannotbesolvedcorrectly,itwillabsolutelyaffectpeoplei n o t h e r d e p a r t m e n t s a s a d o m i n o e f f e c t M o r e o v e r , t h e c o m p a n y ’ s p e r f o r m a n c e w i l l significantlygodownbecausesalesdepartmentplaysavitalroleinanybusiness.

TheRealCoreProblem

In today's competitive landscape, effective human resource management is crucial for a company's prosperity Satisfied and loyal employees serve as the foundation for enhancing internal communication, which fosters strong relationships between management and staff However, the importance of internal communication is often overlooked in managerial practices, hindering knowledge management and resource utilization When internal communication is effective, it not only improves the work environment but also raises employee awareness of company activities and plans This facilitates valuable feedback from employees, enabling the organization to leverage their collective experience Ultimately, robust internal communication empowers managers, fosters a positive attitude towards change, and helps address issues proactively, ensuring employee commitment and alignment with the company's objectives.

Actually,internalcorporatecommunicationisatermthathasbeenusedinpublicr e l a t i o n s andcorporatecommunicationsforyears(Kazoleas&Wright,2001;VanRiel

Effective senior management communication strategies are vital for fostering positive employee engagement, which enhances organizational performance and innovation Companies must gather essential information from their environments to thrive in competitive markets, and effective internal communication is crucial for aligning employees with corporate objectives Strong internal communication promotes positive relationships between senior managers and employees, although poor communication can undermine these relationships The success of internal communication hinges on delivering appropriate messages in useful formats Therefore, addressing the ineffective internal communication, particularly between the Sales and Customs Departments, is a critical issue that Interlog Company must resolve promptly.

Number Author Antecedents Consequences Findings

01 Steven,Barbara,S hapiro,Helen,Gi no,Lisa,David,P atriciaandNicolas (2004).Internalco mmunicationissu esin anITengineeringd epartment.AnInte rnationalJournal (Vol.9,

- Managementne edstodevisegoals andobjectivesclea rlyw it h it s organizational membersanddisse minatethisinform ationon aregularbasis

- Createadualcare erpathwhereby employeescangro won thetechnicalsideo ron themanagements ideof theorganization

- Uppermanage menttoimplem entappropriates uccessionp la n ni ng

Employee participation, also known as participative management or workplace democracy, is a process that engages the full potential of employees to foster greater commitment to organizational success By involving workers in decisions that impact them and enhancing their autonomy and control over their work lives, organizations can boost employee motivation, commitment, productivity, and job satisfaction.

- InternalCommuni cationIssues galvanizingroleinin ternalcommunicati on.

Theorganizationm ustprovidemanager satalllevelswithacc urateinformational ignedwithorganiza tionalvaluesandgo als,offernecessaryt rainingtoequipt h e m witheffectivetra nsformationalleade rshipthatfacilitates strategicinternalco mmunication,a n d developtheirleader shipcommunicatio nskills.

IndianInstituteo f ManagementK ozhikode &M anagementRevi ew(Vol.3,

- Produceanews letterthatprovid esamedley oflo cal,functionalan dcorporateinfor mation

- Organizequiz zes on theorganizatio n’sobjectives,v i s i o n , m i s s i o n , lineo ffunctioning

Theaimofmanageri alcommunicationin a n y organizationis t o achievecorrecta ndeffectiveinform ation,bothverticall yandhorizontally,i nordertoaccomplis hingoodconditionst h e internalandexter nalrequestaccordin gtothemanageriala ndorganizationalob jectives. managementande mployeestohavea real- timeunderstand ingofopinions,pe rceptionsandcond itions

- Conductregulard epartmentmeetin gstomaintain rol eclarity

Answeremploye es’anonymousq ueriesthrough“e mployeespeak” publication

Anadeptemployme ntoforganizationco mmunicationstrate giescanaddressthos ecomplexissuesrela tedtomotivation,tea mfunctioningandle adershipatworkplac ethatplaguethework ingo f HR managers.

Tobeeffective,wh endesigninga n d i mplementingrewa rd– performancepracti ces,managersmust becognizantofaran geofcontextspecifi candconfoundingf orcesthatcouldpot entiallyinfluencet heperformanceim plicationsofdiffere nt typesofrewards

Theattitudesonfin ancialincentivesar efound to belowerthannon- financialincentive s.

Besides,itcanbearg uedthatthemorepos itiveattitudetoward snon- financialincentives ,themorethejobsati sfactionincreases.

Thecashbonusc a n b e considereda s a meaningfulincen tivefortheemploye es.Theya l s o want edinformationabo utt h e operationoft he company,inclu dingitsplansa n d pr ojections.

Allth e a n t ec e d e n ts a n d f i n d i n g s o n t h e t ab le a b o v e isveryuseful an d v a l u a b l e s o u r c e f o r t h e w r i t e r top r o p o s e t h e s o l u t i o n s f o r t h e c u r r e n t c o r e p r o b l e m a t I n t e r l o g Company.Someofsolutionsarehighlypracticalandappropriatetoapply inthisthesis.T h e bestsolutionhastosatisfythreevitalelementsastime,capitalandcompetence.

SOLUTIONS

Whene m p l o y e e s w o r k r e s u l t s o r t h e i r w o r k b e h a v i o r a n d a t t i t u d e s a r e n o t i n accordancewiththecompany'sai ms,themanagementcanfindreasonsinsomespecifica r e a s asthefollowing:

Organizational commitment is significantly influenced by communication satisfaction Bambacas and Patrickson (2008) found that interpersonal communication skills, such as listening, clarity, and leadership, are crucial for managers aiming to enhance subordinates' commitment Research indicates that high-quality communication, including clear and accurate information, leads to better-informed employees and fosters job commitment (Johlke and Duhan, 2001) Furthermore, Allen and Meyer (1990) emphasized that open managerial communication and precise information sharing can enhance trust, which is vital for commitment To cultivate positive trust-commitment relationships, managers should communicate genuinely and directly with employees, especially during uncertain times (Whiten er, 2001), and encourage employee involvement in decision-making processes (Vuuren et al., 2007).

Partner Target Means Tools Measurability

Employees Positiverelationtothecomp any,formingthedesiredwor kingpositions,reinforcingl oyaltytospreadthereputatio nofthe company,meetingt heinformationneedsofwor k,coordinatingofworkandt eamwork.

Satisfaction,ahighd egreeofself- motivation,beliefi n theprospectoft h e c ompanyandinhis/ herowncareerladde r.

InternalPR,manage mentofworkperfor mance,t h e fulfillme ntofinformationnee ds,communicationst andardsatthebeginni ngofnewworkers,fu nctioningfeedback.

Performingthetasks ,theachievementoft heobjectives,specif icperformance,turn over,andsatisfactio nmeasurableshiftsi n timeseries.

Alternative 1 : U p g r a d i n g t h e c o m p e t e n c i e s o f m i d - l e v e l m a n a g e r s bys e n d i n g tot h e trainingcenterandinvolvingdeeperintheworkofsubordinatestohighlysupporteachoth er.

Creatinganddefiningrolesandresponsibilitiesfore a c h employeewithinthedepartmentwouldgoa longwayi nhelpingtheseindividualssolveproblemsmoreeffectiv ely.

Directlyaffecttothecompany,formingthedesiredwork ingpositionsorperformancea n d behaviorinordertoma tcht h e needso f work,smoothlycoordinationofteam workbetweeneachother.

Timeconsuminga n d C o s t l y becauset h e managem entteamhastospendaplentyoftimetoimplementman ynecessarythingsi n ordertomotivatetheirsubordinate s.Additionally,t h e trainingexpensewillbeincreasedsi gnificantlyduet o shortcomingin themanagerialskillsofmid-levelmanagers.

FourspecialtrainingcoursesareManagementf o r Mid- levelManagers,EffectiveTraining& CoachingSkills, EffectiveAssignment&DelegationSkills,andMotivat ingSkillsatPaceInstituteo f Management-

HCMCityformid- levelmanagerscost11,000,000VND.(Total12mid- levelmanagers).Total66hoursforallthecourses( 3 ho urspersection).

Alternative 2: C r e a t i n g dualcareerpath(expertormanager)topromoteemployeesto havelong- termcommitmentwiththecompany.Thissolutionwouldinvolvesignificantplanning byHumanResources,FinanceDepartmentsandBoardofDirectors.

Manyorganizationstodayseekcompetitiveadvantagethroughemployeesmustb ea b l e tomanagethebehaviorandresultsofallemployeesandrecognizethatmotivatinge mployeesa l s o r e q u i r e s a l e v e l o f r e s p e c t b e t w e e n m a n a g e m e n t a n d w o r k e r s T h i s r e s p e c t c a n b e s e e n a s involvingemployeesi n d e c i s i o n s t h a t a f f e c t t h e m , l i s t e n i n g t o employees,and implementing theirsuggestionswhereappropriate (Decenzo&

Robbins,2 0 0 5 , page43).Additionally,theyaddressedthemannerinwhichmanageme ntcanuseinternalmarketingtomotivateemployeetoprovidethebestpossibleservicetocustome rs.Theoretically,Berry(1984)definedInternalMarketingas"viewingemployeesasinternalc ustomers,viewingjobsasinternalproducts,andthenendeavoringt o o f f e r i n t e r n a l p r o d u c t s t h a t satisfyt h e n e e d s a n d w a n t s o f t h e s e i n t e r n a l c u s t o m e r s whileaddressingth eobjectivesoftheorganization".Furthermore,InternalMarketinghasbeenseenas"servicefirms'e fforttoprovideallmembersoftheorganizationwithaclearu n d e r s t a n d i n g ofthecorporatem issionandobjectivesandwiththetraining,motivation,a n d evaluationtoachievethedesiredob jectives.

Firstly,linearcareerpathforemployeeswhohave highprofessionalskillsbutlacko f managementcapability canbecomeexpertsi n apartic ularfieldof the organization Secondly,for thosewhoaregood at leadershipand capabilitymanagementcangraduallyr i s e intheorganizationuntiltheyreachthetopofhierarchy within.Lastly,theBoDneedst o quicklyincreasethetransparentofallworkingprocessesinor dertoavoidtheo v e rl a p p i n g betweeneachother.Thatmeansthe jobsdesignplaysav italrolebecausee a c h ofpositionmustbemeaningfulandcontributedistinctlytotheor

48 ganization.Particularly,thejobsdesignhastooptimizethreefollowingfactors:time,reso urcesand efficiency.F r o m t h a t p o i n t , t h e w o r k f l o w a m o n g d i f f e r e n t p o s i t i o n s a n d d e p a r t m e n t s w o u l d besmoothedandrapidaswell.

Itcancreateabrightandclearcareerladderforalltalente dandexperiencedpeople.Everyoutstandingemployee h a s chancet o getpromotedindifferentmethodsandhig hlydedicatetothecompany.

Thisalternativewilltakeaplentyoftimetocreatea new organizationalstructure;complicatedprocedure;t h e t otalsalarye x p e n s e wouldbeincreasedduetoadditio nalpositions.

Spreitzer (2008) emphasized that a supportive and trusting relationship with leaders is crucial for fostering psychological empowerment among employees Positive leadership significantly enhances employees' perceptions of their own empowerment, as leaders play a vital role in shaping their work experiences (Liden, Sparrowe, & Wayne, 1997; Yukl, 2010) Leaders can provide valuable information about strategic and operational goals, helping subordinates recognize the significance of their work, which in turn increases its meaningfulness Additionally, by promoting greater participation and autonomy, leaders enhance employees' feelings of self-determination and impact They also serve as role models, offering feedback and coaching to their teams At Interlog, empowering department managers in the recruitment process instead of relying solely on the CEO, along with clearly communicating job duties, presents a feasible and valuable solution.

Effective leadership is closely tied to employee motivation, particularly through a robust rewards system Employees often rely on the support of mid-level managers to achieve recognition such as "Top of the Quarter" or "Top of the Year." This collaboration benefits both employees and the organization, allowing for the implementation of a new rewards strategy Blanchard and Witts (2009) emphasize that failing to recognize and reward good performance can diminish employee motivation over time Therefore, it is essential to enhance both financial and non-financial incentives, including bonuses, commissions, and professional development opportunities (Roberts & Lombard, 2010) Research indicates that job satisfaction is influenced by various factors, including communication, integrity, and the physical work environment The Sales Department plays a crucial role in the organization, making it challenging for the Board of Directors to retain top sales positions To address this, companies can revise commission structures or offer higher base salaries in the short term, while considering long-term incentives like stock grants or options to attract and retain talent.

Mid- levelmanagershavemorepowerandresponsibility for thehumancapitalintheirdepartmentsduet ot h e ri ghtt o selecttheneededpersoni n recruitmentpro cess.Italsos h o w thehighlytrustoftheBoardofDir ectorsinworkingcapabilitiesof midlevelmanagers.

Thistypeofrewardsystemcouldsignificantlyraise t h e j o b satisfactionandtheproductivitysincether ewards y s t e m a t InterlogCompanywasnotasign ificantmotivator.

Int h e shortterm,t h e companyc a n considert h e commissionpercentagerevisionorpayabovet h e basesalaryframework;meanwhilei nthelong- termtheyshouldusesomeincentivetoolss u c h a s s t o c k grant,stockoptionorlongtermcashplan.

Settingt h e clearqualificationsandstandardsi n re cruitmentprocesstopreventtheuntalentedpeople buthavinggoodrelationshipwithemployers.

+)TopofPerQuarter(non- financial)suchas:giftvoucherorticketvacationis equivalentto2, 50 0, 0 00 VND.

+)TopofTheYear(financialornon- financial)t h e prizeequals10,000,000milVND. +)Managerreceivesextrabonusifhis/ hersubordinatesachievetheTopPosition.

The Bo emphasizes the importance of motivating mid-level managers and staff within the Sales Department by implementing a new policy One key challenge is helping managers differentiate between good, average, and poor performers (Noe, Hollenbeck, Gerhart, & Wright, 2006) To leverage employees' knowledge effectively, a management style focused on developing and empowering employees is essential, encouraging accountability for products and services In return, employees share in the rewards and losses of their results Additionally, most employees tend to compare their compensation with that of their colleagues, particularly those in similar roles (Noe, Hollenbeck, Gerhart, & Wright, 2006).

In conclusion, implementing two out of three proposed alternatives can significantly enhance job satisfaction and productivity at Interlog Company Clear communication of the company's goals and objectives by top management, along with adequate resources for training and developing mid-level managers, will facilitate effective coaching and collaboration While the financial and non-financial rewards may not be substantial, they play a crucial role in motivating employees and improving their self-actualization, ultimately leading to increased job satisfaction and productivity Additionally, addressing ineffective internal communication will strengthen relationships between employees across different departments and their managers These recommendations are prioritized based on Interlog Company's current financial status and capacity.

Alternative 1: Upgrading thecompetencies ofmid- level managers,adjustingthe recruitmentprocessanddistributingclearlytheinformationnecessaryforjobduties

Alternative1 i s t h e mostp r i o r i t y i n t h e s o l u t i o n s a n d t h e s e c o n d o n e ist h e alternative3.Thisisbecausemany peoplehaveclaimedthatmid- levelmanagersarethemainelementinanorganizationbecausetheyaretheoneswhodirectlyi mplementplanso f Broads ofDirectors o r themanagementteams.Whetheracompany

’sstrategiesand yearly,quarterlyormonthlyplanscanbecarriedout successfulor notdeeplydepends ont h e s e middlemanagers.Likewise,theyarealsosaidtobethemostproactiveonesinthe companyastheypushtheirsubordinatestodotheirjobs,delivermarketinformationto higherlevelofmanagers,andcontinuouslycontributetomodifyingthecompany’svisionw h e n otherconditionshaschanged.Inreality,mid- levelmanagersarethebridgebetweens t a f f membersandtheirbigbosses.Theyaretheonesw homostlikelyundertakehighermanagerialpositionsifneedbeandtheyarethose whoc ometotherescuewhentheirsubordinatesgetintotrouble.Thus,whetherabusinessowne risconfidentandwhetherh e orsheispreparedtoexecutelongtermplansornotcritical lydependsonthemiddlem a n a g e m e n t team.

The alternative option is complex and requires significant investment in promotional systems and organizational structure, which currently does not align with Interlog Company's objectives The Board of Directors (BoD) aims to restructure the organization to better define roles and responsibilities for expert positions, balancing benefits for mid-level managers and staff This approach could motivate skilled employees who lack management capabilities but cannot be promoted However, implementing this strategy necessitates several requirements and may take six months to a year for proper execution Meanwhile, alternatives one and three must be quickly implemented and closely monitored by the BoD, HR Department, and other relevant personnel to avoid unexpected issues.

IMPLEMENTATION

Hereisthestrategyexecutionofalternative1and3:Firstly,a“FromTo”noticeb o a r d canbeusedtoshowthedirectioninwhichthecompanyisnavigatingitsp r o gr es si v e m o v e s Ina d d i t i o n , t h e C E O a n d m i d - l e v e l m a n a g e r s c a n o r g a n i z e workshopsforstaffingroupsof15–

Engaging employees in organizational strategies can enhance communication satisfaction across various departments Periodic workshops and surveys conducted via the Intranet System by the HR Department allow for the assessment of employee satisfaction, with results analyzed and presented to management for effective solutions Employees are more likely to feel satisfied when their managers provide clear explanations and demonstrate genuine concern Implementing an anonymous suggestion box encourages employees to voice their questions, fostering trust in transparent governance Additionally, new HR policies and internal marketing activities should be communicated effectively through audio, video, and teleconferences to positively influence employee behavior and attitudes Managers can further support HR initiatives by integrating policy information into benefit statements, ensuring employees clearly understand their benefits, which can lead to a favorable response from the workforce.

Secondly,theBoDneedstoupgradethecompetenciesformid- levelmanagersbyo f f e r i n g trainingcoursesatareliabletrainingcenter.Thereasonw hytheBoDdoesnotwanttoreplacesomeofmid-level managersbecausemostofthemhavebeenworkingfors u c h alongtimeanddedicatingsomucht othecompanyeventhoughtheirmanagements k i l l s a r e s t i l l l i m i t e d i n somea s p e c t s

I n a d d i t i o n , r e c r u i t i n g a newp e r s o n e s p e c i a l l y managerpositionsalsohassomeris kssincetheyneedaplentyoftimetogetusedtotheo r g a n i z a t i o n a l cultureandworkingpr ocess.Ifthey maynotbeabletoadaptthesethingsa b o v e , theywillleavethecompanyverysoonandoncea gainthecompanyhastospendmoretimeandresourcestoseeksuitablepeople.Hence,the BoDprioritizestoimprovet h e managementskillstoallthecurrentmid- levelmanagersparticularlyinhandlingwithsubordinatesinsteadofrecruitingnewones.

To enhance the recruiting process, HRDepartment will implement an additional step involving interviews conducted by mid-level managers and the CEO This approach is beneficial as mid-level managers are more familiar with the qualifications needed for potential candidates, given their direct interaction with lower-level staff Empowering these managers in the decision-making process fosters a sense of authority and reduces reliance on the CEO's judgment According to Berry (1984), effective human resource practices, including selection and recruitment, are crucial for improving service quality, which is essential for companies to compete effectively Aligning candidate capabilities with job requirements can significantly enhance business performance and facilitate better internal interactions among employees Furthermore, targeted training in communication skills will improve service quality among coworkers Additionally, motivating employees encourages them to engage with training and development programs, enhancing their skills and understanding of the work environment.

Fourthly,a n y o n e w h o performsu n d e r the compulsoryq u a n t u m m o n t h l y d e f i n i t i v e l y r e c e i v e 0 p e r c e n t b o n u s a n d i f thisi n c i d e n t h a p p e n s int h r e e c o n s e c u t i v e months,thatsalesman c a n beter minated Meanwhile an yo ne w h o a c h ie v e s al u c r a t i v e t a r g e t permonthcanreceiv etenpercentextrabonusesontopofthebasesalary(excluding thesalescommissionasusu al).Likewise,thedirectmanageroftherewardedstaff ofthatdepartment willalsogetas mallbonusduetoeffective management.This

The implementation of effective incentive methods fosters a sense of responsibility among both managers and subordinates, enhancing collaboration in the workplace Non-financial rewards, such as recognition programs like "Top of Each Quarter" and "Top of the Year," are based on measurable performance metrics and allow individuals to choose from a pool of prizes, including sports gift vouchers, short vacations, and bonus shares This approach aims to promote self-actualization among talented employees, a concept popularized by Goldstein (1939) and Maslow (1943) and widely recognized globally.

ForGoldstein, thisstate ofself-actualizationis anongoing drive;i t isnotsomuchconcernedwiththeeliminationoftension,aswiththeexpressionoftheo rganism’spotentialities.AccordingtoMaslow(1943)

Self-actualization is the ultimate demand that must be satisfied once physiological, safety, and social needs are met This concept aligns with the intentions of the Board of Directors (BoD), which emphasizes the importance of fairness and transparency in performance evaluations for mid-level managers and staff Such evaluations should be based on actual performance rather than personal relationships, reducing workplace rumors and gossip Ultimately, successful organizations are those that genuinely care for, understand, encourage, and support their employees' personal growth towards self-actualization.

57 actualization.Infact,forthosewhoachievethe prize“TopofEachQuarter” or

Lastbutnotleast,therearesomesuggestionsonKeyPerformanceIndicators(KPI)t h a t t heInterlogCompanymayusetocompletelyanddeeplyevaluatetheiremployees’perfor mance.

Time X% deliverywi thinXtime and/ orMaintai naminimu mo f X%.

Surveyan d / or systemre ports/ logsa cr os s divisions

Annual SystemManag er relatedtrai ninganded ucation

Investme ntinrecor dmanage mentr el a t ed traini ngandedu cation

Investme ntinrecor dmanage mentr el a t ed traini ngandedu cation

Investme ntinrecor dmanage mentr el a t ed

Annual Recordssuper visor/ syst e m admin istration

Investme ntinrecor dsmanag ementre l a t ed train inganded ucation

Return Asperproposal, Asper Asper Survey Chief Asper Records on businesscase proposal, proposal, and/or Informatio proposal, Manager

Investme etc business business system nOfficer business nt(ROI) caseetc caseetc reports/logs caseetc. across divisions

CONCLUSION

This dissertation aims to critically review the key factors contributing to the high employee turnover rate at Interlog Company over the past two years and to recommend solutions to enhance organizational performance A significant finding is that internal communication plays a crucial role in influencing company operations, job performance, and employee attitudes Most employees believe that effective internal communication positively impacts their job performance and behavior, fostering loyalty Clear communication and sufficient information are essential for employees to understand corporate objectives, build confidence in the company's mission, and recognize the significance of their contributions Additionally, treating employees as internal customers whose needs must be addressed is vital for aligning individual goals with overall company performance Ultimately, recognizing that employees are the most valuable asset necessitates ongoing efforts from management to cultivate and sustain positive employee relations.

SUPPORTINGINFORMATION

ResearchMethodology

Qualitative research design is ideal for investigating employee perspectives and preferences In-depth interviewing, a qualitative technique, involves conducting detailed individual interviews with a small group of respondents to gain insights into their views on specific issues or situations In this dissertation, the author conducted two rounds of in-depth interviews with five employees from various positions and departments who have been with the company for an extended period The first interview took place in August 2015 at the Interlog Company meeting room in Ho Chi Minh City, aimed at identifying potential problems contributing to the high turnover rate observed over the past two years The second interview occurred at the end of November 2015 in the same location, focusing on determining the most effective solutions regarding time, capital, and capability to address the company's ongoing challenges.

Besides,t h e a u t h o r a l s o u s e s t h e s e c o n d a r y d a t a t h a t comesf r o m t h e a n n u a l r e p o r t s ofHR,FinanceDepartmentsoftheInterlogCompanyandotherout sidesourcess u c h as:VietnamLogisticsAssociation(VLA),VietnamNationalProd uctivityInstitute( V N P I ) etc.

ReportofTranscript

This reportisthesummaryoftheinterviewmeetingwithsome peopleindifferentp o s i t i o n s aboutthehighturnoverrateatInternationalLogisticsCompany(Inte rlog).

Firstly,alloftheintervieweeshaveagreedthatthissymptomhasoccurredinthec o m p a n y formorethantwoyearsalready,andSalesDepartmentisthedepartmentthath a s thehighestturnoverrate.

The organizational structure is currently too cumbersome, limiting employees' decision-making power as they require multiple approvals Additionally, the company's rewards system and career paths are unappealing, contributing to employees' intentions to quit The heavy workload in the logistics industry exacerbates this issue, as some employees lack the necessary skills and knowledge to meet sales targets and management styles Furthermore, inconsistent communication between departments, particularly between Sales and Customer Departments, has led to internal conflicts Mid-level managers also struggle with inadequate managerial skills, hindering their ability to effectively support their staff and build trust In summary, the primary causes of dissatisfaction include lackluster motivation and promotion opportunities, ineffective internal communication, especially between Sales and Customer Departments, and an overwhelming workload The most significant concern identified by interviewees is the ineffective communication between these departments, stemming from inappropriate leadership styles, poor working relationships, and managerial skill deficiencies.

Thirdly,t h e re a r e somecommons o l u t i o n s oft h e s e i n t e r v i e w e e s t h a t m a y qu iteappropriatewiththecurrentsituationofthecompanytoimprovetheincident.Initi ally,t h e c o m p a n y n e e d s toimprovet h e o r g a n i z a t i o n a l c u l t u r e bysomea c t i o n s s u c h a s : e n c o u r a g e mutualrelianceandrelationshipamongcolleague s;inspiresharingofusefuland p r a c t i c a l k n o w l e d g e M o r e o v e r , t h e r e w a r d s y s t e m o f S a l e s Departmenti n b o t h f i n a n c i a l andnon- financialsectorsneedstoadjustinordertoretainthetalentedpeople.In addition,avisib lycareerpathisdefinitelynecessarytopromoteemployeestohavealong- termcommitmentwiththecompanyaswell.Lastbutnotleast,thecompetenciesofmid- levelmanagersinmanagementneedtoenhanceatthesoonesttimeinordertohelpt h e m mo reeffectiveinhandlingwiththeirsubordinates.

Finally,a ll o f t h e p r o b l e ms a r e o cc u r r i n g a t I n t e r l o g C o m p a n y thatn e e d s t o be s o l v e d rapidlyandsuitablyinordertoincreasetheentirebusinessperformance.Infac t,t h e r e a r e s t i l l somem o r e o b j e c t i v e s a n d p e r s o n a l c a u s e s t h a t maya f f e c t i n t e n s e l y t h e p u r p o s e t o l e a v e j o b o f employeesb u t t h e w r i t e r c a n n o t a c c e s s d u e t o somel i m i t i n g f a c t o r s

DetailedTranscript

Iamreachingouttoyouforhelpingwithmydissertationresearchonemployee’sturno verintentions.Iwouldliketogatherinformationaboutemployees’reasonstoquittheirjobatInt erlogCompany.Iwouldappreciateyourparticipationinmyresearch.Theinterviewmaytakea roundonehour.EventhoughIwillbetakingsomenotesonpaperd u r i n g thesession,Iwillberec ordingbecauseIdonotwanttomissanyofyourthought.

Mrs.ThaoLinh:MyfullnameisDangNguyenThaoLinh.IamcurrentlytheDeputyMana geratHRDepartment.IgraduatedfromUniversityofEducationandIhavebeenw o r k i n g atInterlogCompanysince2010.

Mr.PhuocLoc:MyfullnameisHoPhuocLoc.IhaveworkedatInterlogsince2002an dIamamanageratCustomsDepartmentsince2011.

Mrs.ThanhHoa:MyfullnameisTranThanhHoa.IhavebeenatInterlogCompanyatthebegin ningofyear2009.Currently,IworkasManagerofSalesDepartment

Ms.H o a n g L i n h : Myf u l l namei s N g u y e n ThiH o a n g L i n h I h a v e b e e n a t I n t e r l o g C o m p a n y s i n c e 2 0 1 0 a n d t h e D e p u t y M a n a g e r o f I n t e r c o n s o l Depa rtments i n c e t h e b e g i n i n g of2014whichisbelongedtotheSalesDepartment.

R , S o c i a l Insurance,InternalMarketing,recruitmentandtraining.Additionally,Ihaveto skimands c a n t h e C V s o f manyc a n d i d a t e s f r o m d i f f e r e n t s o u r c e s s u c h a s : n e w s p a p e r s , o n l i n e , h e a d hunters,internshipstudentsetcinordertofindoutthesuitableoneforth ecompany.Thisisbecausetherequestforhumanofeachdepartmentismostlydifferentmea nwhilew e d o n o t h a v e e n o u g h timea n d r e s o u r c e s t o doe v e r y t h i n g p r o p e r l y I n r e a l i t y , H R DepartmentisoneofthebusiestdepartmentsatInterlogduetotheveryheavyworkl oad.

: c r e a t i n g g o o d r e l a t i o n s h i p w i t h s o m e u n i v e r s i t i e s i n o r d e r t o g e t h i g h q u a l i t y internshipstudentsforthecompany,planningwiththeBoD toimplementaconsistentp o l i c y inrecruitmentandtraining,settingupKeyPerformanceIndicator(KPI)toa p p r a i s e em ployeesmonthlyetc.

Mr.PhuocLoc:Mydepartmenttakesaresponsibilityinimportandexportproceduresa n d customdeclaraten.Thisisaveryimportanttaskbecauseifwemakeanymistakeinp a p e r w o r k , t h e g o o d s o f customersw o u l d g e t i n t o t r o u b l e ; a n d t h e c o m p a n y w o u l d receiveabiglossinbothreputationandfinance.Therefore,allofmysubordinateshavetore gularlyandcarefullyupdatethelastestdecreesofVietnamcustomstoensureeverytransacti onsarelegal.Additionally,wemustcooperatecloselywiththeSalesDepartmenti n providingsu fficientinformationandsupportingnecessaryproceduresbeforesigningc o n t r a c t withanycustomer.

I n t e r l o g C o m p a n y N o r m a l l y , w e h a v e t o r e g u a r l y c o n t a c t a n d u p d a t e i n f o r m a t i o n withmanyshippingcompaniesbothdomesticandinternaltionalinVietna mi n o r d e r t o p r e p a r e thes u f f i c i e n t t h i n g s f o r t h e s a l e s teamt o dot h e i r j o b s s u c h a s : quotation form,transactionjounal,workingformetc.Besides,trainingan dcoachingthen e c e s s a r y softskillsforthenewsalesmanisalsoanimportantissueforourdivis ionsucha s c a l l i n g , w r i t i n g f o r m a l email,e x p a n d i n g r e l a t i o n s h i p , n e g o t i a t i n g a n d s o l v i n g problemse t c I n a d d i t i o n , managerso f e a c h d i v i s i o n h a v e t o g e t a l o n g w i t h t h e n e w commersforawhiletosupportthembeforetheyarematureenoughtofi ndcustomersbythemselves.L a s t b u t n o t l e a s t , w e h a v e t o c o o p e r a t e c l o s e l y w i t h o t h e r d i v i s i o n s a n d departmentsi n o t h e r t h i n g s s u c h a s : r e c u r i t m e n t , c u s t o m d e c l a r a t e n , d o c u m e n t a t i o n , w a r e h o u s i n g , truckingetc.

Ms.HoangLinh:MydivisionisInterconsoleanditwasestablishedattheendof2012.G en e r al ly s p e a k i n g , t h e mainr e s p o n s i b i l i t y o f myd i v i s i o n i s d o i n g b u s i n e s s w i t h w h o l e s a l e c u s t o m e r s a n d f o r e g i n a g e n t s i n C h i n a , S i n g a p o r e e t c T h i s i s t h e n e w e s t divisoninthiscompany;thereforewehavetolearnandsetupalo tofthingsbasedonthe instructionsandguidelinesofforgeinagentssuchas:pricingcalculation,choosingsear o u t e s etc.Infact,themainjobsinthisdivisionstronglyrequestbroadanddeepimporta n d expor tknowledge;andalsoothersoft- skillssuchasproficienyEnglish,negotiatinga n d solvingproblemswithVIPcustom ers,willingtotravelalotoutsideofHCMCetc.T h e r e f o r e , thenewemployeemostlik elyneedsapproximatelytwoyearsinordertogetu s e d tomastertheworkproficiently.

Interviewer:Currently,manyfirmsin several industries i n Vietname s p e c i a l l y sma lla n d mediumlogisticscompanieshavetocopewiththehighturnoverrateofemployees.H a v e theInterlogcompanyfacedthisoutcomeandwhichdepartmenthasthehighestturnov errate?

Allo f i n t e r v i e w e e s : O fc o u r s e , i t h a s o c c u r e d i n t h i s c o m p a n y f o r a b o u t t w o yearsalready.S p e c i f i c a l l y , t h e d e p a r t m e n t t h a t h a s t h e h i g h e s t t u r n o v e r r a t e i s S a l e s Departmentw h i c h c o m p r i s e s f o u r smalld i v i s i o n s : I n t e r c o n s o l e , A g e n t s D e v e l o p m e n t , S a l e s andSupplyChainManagement.

Interviewer:Inyouropinion,whatarethe mainreasonsthatcausetothissymptoma n d wh y?

Mrs.ThaoLinh:Personally,Ithoughteverythinginlifehascomefrombothsidesandt h i s is s u e a l s o c a n b e s e e n t h r o u g h b o t h o b j e c t i v e a n d s u b j e c t i v e a s p e c t s O b j e c t i v e l y , logisticsindustryinVietnamcontainsmanychallengesanddifficultiesbutthisisaver ylucrativefieldthereforemanylogisticscompaniesrecruitmanynewemployeesalmost everyyearinordertomatchtherapiddevelopmentofthemarket.AtInterlog,therearem a n y f r e s h g r a d u a t e d s t u d e n t s a n n u a l l y w i t h d i f f e r e n t e d u c a t i o n b a c k g r o u n d s a p p l i n g i n t o thecompany.Afterspendingtwoorthree monthsofprobation pe riodindifferentp o s i t i o n s ofdifferentdepartmentsatdifferentlocations,somepeoplecanwi selyadaptthew o r k i n g enviromentandbeabletoworkmeanwhilesomepeoplemaynotbesuita bleandtheyleaveduetomanyreasons.Conversely,theexperiencedemployeesareeasytoadaptt h e jobsbuttheymostlyrequestquitehighsalariesandbenefitssoitisnoteasytoretainth em inthel ongperiodoftime.

Subjectively,theorganizationalstrutureiscurrentlytoobulkyandtheemployeesdonoth a v e thepowertomakemajordecisionsinworkbecausetheyneedtogettheapprovalf r o m manyrelevantpeople.Inreality,theCEOis lackingofaneffecitveassistantsothath e mostlikelygetsinvolvedintoomanysmalldetailsi neachdepartment.Furthermore,h e hasastrongbeliefinFengShuiandChinesezodiacsigns,th ushedoesnotcompletelyt r u s t anysubordinatesespeciallyinrecruitment process Hewants todirectlyconduct thef i n a l jobinterviewandthenmakeafinaldecisionratherthanbaseontherecommendatio nofdepartmentmanagersandHRmanager.Sometimes,itcausestothemisleadingofinternal communicationbetweentheCEOandmid-levelmanagers.

Ms.B a o N g o c : I nm y opinion, so mee xpe ri en ced e m p l o ye e s af ter wo rk in gf or a lo ng timemayh a v e d i f f e r e n t d i r e c t i o n s w i t h t h e company’sd e v e l p m e n t s t r a t e g y o r t h e i r c a r e e r laddersarenotasexpectedasbeforesotheyleavethecompany.

The import and export industry in Vietnam has rapidly developed due to deeper integration into global trade organizations like WTO and ASEAN This growth has resulted in a heavy workload, particularly for employees in seaports and customs, causing significant challenges for female workers, especially those who are newly married or have recently had children Notably, the number of female employees leaving the company nearly tripled from 2013 to 2014 According to mid-level employees, 2014 was perceived as a year of enthusiasm and energy, prompting many to start families, including those at Interlog Company Furthermore, the company's current rewards system is not sufficiently attractive, contributing to employees' intentions to leave.

Mr.PhuocLoc:Icanlistdownsometypicalreasonssuchas:thefirstoneis“overworkan dunderpa y”;thussomeonewouldliketofindothercompaniesthatofferbettersalarya n d benefitsforthe meventhoughtheworkingenvironmentinthatcompanyisextremelyh a r s h andnotfriendlyatall Thisonemostlikelyhappenedforthosewhodonotownah o u s e i n H C M C b e c a u s e they h a v e t o s p e n d m o r e m o n e y a n d t h e r e f o r e s t r o n g l y payattentionto thebase salaryratherthanthosewho own ahouseorlive withtheirfamilyinHCMC.

Inaddition, someemployees mightnotbe abl e toadaptwiththeirdirect managerso re v e n C E O ’ s managementstylesso thatit graduallycreated theinternal conflicts betweene a c h o t h e r I n reality,w h e n t h e c o n f l i c t s c o u l d n o t b e s o l v e d p r o p e r l y , theyl e f t t h e companywithoutanyhesitation.Inoticedthatthisincidenthap penedmostlyforthosew h o aretalentedandhighworkingexperience.

Mrs.T h a n h H o a : T ome,t h e r e a r e t w o mainr e a s o n s f o r t h i s symptom.Firstly,theyr e q u e s t ahighersalaryandcommisionpercentagebutthecompanycannotsatisfythems o the ydecidetoleave.Mostoftheseincidentshappenedtotheyoungemployeesandtheco m p a n y most likelyallowedthemtoleavefreely.ThisisbecausetheBoDknowsthattheycannota l w a y s s a t i s f y t h e i n c r e a s i n g d r a m a t i c a l l y demand o f them.S e c o n d l y , t h e w o r k i n g stylesofsomeonearenotconsistentlyfollowedthecompany’snewpoliciessoth at th eirdirectmanagershavetointenselypushandmonitorthemwhichcreateshighw o r k i n g p r e s s u r e f o r thema n d t h e i n t e r n a l c o n f l i c t s a r e easyt o h a p p e n asw e l l T h i s c a u s e happensmostlyfromthosewhohaveworkedatInterlogforalongtime,anditi sq u i t e hardformanagerstoconvincethemtostaylongerwithcompany.

Ms.H o a n g L i n h : P e r s o n a l l y ,someo f s a l e s m e n h a v e t o l e a v e t h e c o m p a n y d u e tolackingofskillsandknowledgeinthisindustry.Additionally,theconnectionbetwe ene a c h departmentisquiteloosebecausetheroleallocationisnotclearandthetransferofe mployeesmakethemfeeluncomfortableandinconsistentinwork.Lastbutnotleast,thes a l e s team doesnotfeelcomfortablebecausetheyhavetosharethesalescommisiondue tothenewpolicyofcompany.Theythinktheyarestronglydepenedonotherdivisionsind e a l i n g withcustomers.

Interviewer:Asanexpericencedemployeeandalsoa mi d- l evel managerin In ter lo g C o m p a n y , whatdoyouthinkisthemostcrucialproblemtha tcausesemployeestoleavetheirjobsatarelativelyhighrateandwhy?

Mrs.ThaoLinh:Personally,Ithinktheworkingprocessbetweendifferentdepartmentsi n a n or ga nza ti on i s n ot t r a ns p a r e n t an dc o n s i s t e n t ; and th e m a n a g e m e n t s t y l e of mid- l ev e l managersh a s n o t c o m p l e t e l y createdt h e t r u s t f o r t h e s u b o r d i n a t e s H e n c e , t h e s e f a c t o r s havecreatedtheinternal conflictsbetweeneachother andmostofthemchoosetoleavethecompany.

BaoNgoc:Inmyopinion,themostcrucialproblemthatcausedtothissymtomisthed i s s a t i s f a c t i o n b e t w e e n e x p e r i e n c e d e m p l o y e e s a n d managersp a r t i c u l a r l y i n w o r k i n g p r o g r e s s andthechangingpoliciesincompanyaswell.Infact,theymightnotbeabletoa d a p t anddidnotfeelsatisfiysothattheconflictoccuredallthetime.

Mr.PhuocLoc:Tome,Ithinkthebasesalaryofthecompanyisnotattractiveenoughtor e t a i n thet alentedpeopleparticularlythosewhocomefromotherprovincestoworkinH C M C I n reality,itisquitedifficultforthemtodenyanattractiveofferfromanotherf i r m becaus eitisnoteasyatallfornon-

Mrs Thanh Hoa emphasizes that the primary issue lies in the differing mindsets between employees and managers regarding work styles and future development plans She notes that while Interlog's base salary and commission rates for the sales force are average compared to the logistics industry in Vietnam, other companies allow their sales personnel to manage customer service from start to finish, leading to higher commissions However, this approach poses risks for the company, as customers may become loyal to individual salespeople rather than the company itself, potentially resulting in customer loss if a salesperson leaves To mitigate this risk, Interlog has implemented strategies to limit the sales team's authority by breaking down tasks into smaller activities that involve more personnel in the overall process, rather than relying solely on salesmen.

The most critical issue in management at MsH o a n g L i n h is the lack of managerial skills among its managers Currently, only two employees hold a Master of Business Administration (MBA) degree, while the majority possess only bachelor’s or diploma qualifications Furthermore, many mid-level managers lack a formal management background and have only completed short courses before their promotions This gap in training hampers their ability to effectively monitor and support their subordinates Additionally, the connection between departments, especially Sales and Customer Service, is weakened due to ineffective internal communication during work processes.

Mrs.ThaoLinh:Imyselfwanttoincreasethetransparentofallworkingprocessesin ordertoavoidtheoverlappingbetweeneachother.Thatmeansthejobsdesignplays av i t a l rolebe caus eeac h ofpos it io nm us tb e m e a n i n g f u l andcontributedistinc tlytotheorganization.Notably,t h e j o b s d e s i g n h a s t o optimizet h r e e f o l l o w i n g f a c t o r s : t i m e - r e s o u r c e s andefficiency From thatpoint, theworkflow amongdifferentpositi onsand departmentswouldbesmoothedandrapidaswell.

Ms.B a o N g o c : T om e , I reallyw a n t t o i m p r o v e t h e o r g a n i z a t i o n a l c u l t u r e b e c a u s e a c o m p a n y cannotdevelopconsistentlywithoutastrongculture.Herearesomeactions:

 Inspiresharingo fu sef ul andp rac ti cal kn ow le dge betweennon- experiencedand e x p e r i e n c e d employeeswithoutanyhesitation.

 Mid- levelmanagersn e e d t o paya t t e n t i o n a b o u t t h e i r s u b o r d i n a t e s n o t onlyi n w o r k butalsoinlife.

Mr.PhuocLoc:TheBoDhastohightlightthefairnessandtransparentinperformancee valuationo f e v e r y mid- levelmanagersan d s t a f f s in an or gan iza ti on I t hel ps themtov i s i b l y distinguishgoo d-averageandunderperformersandfromthat resultstheBoDwillhavesomeadjustmentsinordertohelpthemimprovetheirperform ances.Moreover,itw i l l s i g n i f i c a n t r e s t r a i n t t h e r u m o r s org o s s i p i n w o r k p l a c e b e c a u s e t h e e v a l u a t i o n i s b a s e d onrealperformancenotanykindofspecialrelation ship.

Mrs.ThanhHoa:Asamanagerofsalesdivision,Ijustwanttoadjusttherewardsysteminordertore tainthetalentedemployeesbysomeissues:

 Payings a l a r y an dc o m m i s s i o n a s w e l l a s t h e d i r e c t c o m p e t i t o r s int h e l o g i s t i c s market.

Ms.HoangLinh:Iamastraightforward personsoIreallywanttheCEO canchangehisc u r r e n t managementstylebyl e s s d i r e c t l y i n v o l v e i n t o o m a n y s m a l l d e t a i l s i n e a c h department.H e s h o u l d mostl i k e l y f o c u s o n b i g p r o j e c t s a n d l o n g - t e r m s t r a t e g i e s a n d c o n f i d e n t l y empowermoretothemid- levelmanagersinmajorissues.Ifso,themanagersw o u l d feelmoreconfidentandtrustinthe CEOandhealsocanhavemorefreetimetomanagethecompany.

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