INTRODUCTION
Thecompanybackground
VinaOneManufacturingCorporation(herein calledVinaOne),whichwasestablis hedin2 0 0 7 w i t h c h a r t e r c a p i t a l o f V N D 4 5 0 b i l l i o n , i s o n e o f t h e b i g g e s t s t e e l m a n u f a c t u r i n g company inLongAnprovince,VietNam.In2015,VinaOneachievedst unningoperatingresultswithprofitsbeforetaxofaboveVND3,200billion,chartercapitalincrease dtoVND7 0 0 billion(Financialstatement2015).VinaOnewashonorablyawardedthecertifi cateofI S O 9001:2008issuedbytheInternationalBureauVeritasOrganization.Itisalsol istedintheVNR500ofbiggestprivateenterprisesofVietnam.
Companystructureandmission
VinaO n e i n c l u d e s 5 mainf u n c t i o n s : S a l e ( d o m e s t i c , i m p o r t & e x p o r t ) , Supplyc h a i n ( p r o c u r e m en t , planning),Finance,Operation,Factory.InFactoryfunction ,theyaredividedi n t o 2smalldivisions:Hot-RolledSteelfactoryandCold-
RolledSteelfactory.Hot-RolledS t e e l factory hastheresponsibilitytoproducehot- rolledsteelfromthesteelbilletfurnaces.T h i s isthefirstprocesstoproduceHot-
RolledSteel,galvanized,rectangulartubing,squaret u b i n g andCold-
RolledSteel.Thisdivisionhasthelargestemployeesinthecompanywith1 , 2 1 8 workers.Inthi sthesis,workerswillbethemainobjectsofthestudybecausetheyaref r o n t - l i n e employeeswhohave theresponsibilitiesforproducingHot-
RolledSteel(roundtubing,rectangulartubing,s q u a r e tubing, withvolumeof300,000 tonsannually)aswellasgalvanizedstrips,billets,s t e e l plates,etc.VinaOnegoeswiththemis sionofsustainabledevelopmenttobecometheleadingsteelmanufacturerinVietnamandSoutheas tAsianregionincomingyears.
Toachievethismission,VinaOnehasrecentlyfocusedonupgradingsteelproductionlinesa n d in creasingfactoryacreageofmorethan100,000m2, extendingofficebuildingsto30r oomswithspecializedfunctionsanddevelopingtransportationsystemswith30newtrucks.I n 2015,th eyinvestedinthesteelbilletfurnacesystem,galvanized Hot-
However,payingt o o mucha t t e n t i o n t o d e v e l o p p h y s i c a l p r o p e r t i e s h a s madet h e manag em en t b o a r d f o r g e t t h a t theya l s o h a v e a n o t h e r morei m p o r t a n t a s s e t w h i c h i s t h e intellectualcapitalofemployees.Accordingtothestatisticsshowninthecompany‟sr e p o r t s , thenumberofemployeesleavingVinaOnehasdramaticallyincreasedinthe past3years(2013-2015).EspeciallyinHot-
RolledSteelfactory,thisnumberofworkersquittedt h e i r jobsareevenmoresurprising.Thi sproblemposesathreattothecompany‟smissiontobecometheleaderinitsfield.
PROBLEMCONTEXT
Theturnoverratestatusinthe industrialandconstructionsector
AccordingtoGeneralStatisticsOfficeofVietNam,thenumbersofemployeesagedabove1 5 a r e a b o u t 5 2 9 m i l l i o n p e o p l e , increasing142thousandpeoplecomparedt o 2 0 1 4 A s s h o w n inF i g u r e 2 , thes e c t o r o f a g r i c u l t u r e , f o r e s t r y a n d f i s h e r y a c c o u n t e d f o r 4 4 3 % (46.3%in2014);industrialandconstructionsectorwas22.9%(21.5%in2014)and services sectorwas32.8%(32.2%in2014).
Ineachsector,theproblemofhighturnoverratehassignificantlyaffectedtotheallocationo f e mployee.AccordingtoPriceetal 1w i t h CausalModelofTurnover(voluntaryleavingf r o m a n o r g a n i z a t i o n ) , t u r n o v e r i s d e f i n e d a s t h e r a t i o o f t h e n u m b e r o f o r g a n i z a t i o n a l memberswhohaveleftanddividedbytheaveragenumberofpeopleinthat organizationd u r i n g t h e p e r i o d O p p o r t u n i t y , r o u t i n i z a t i o n , p a r t i c i p a t i o n , i n s t r u m e n t a l c o m m u n i c a t i o n , integration,pay,distributivejustice,promotionalopportu nity,professionalism,generaltraining,kinshipresponsibilityareindependentvariablesinmodelsi mpactingtojobs a t i s f a c t i o n andintenttostayorleave.Themodelindicatesthatintent tostayhasadirectn e g a t i v e impactonturnover,whenjobsatisfactionincreases,intenttosta ywiththeo r g an i z a ti o n willbeincreaseasstatedbyPriceetal 1
Therearemanyreasonsleadingtoincreasingnumberofemployeesleavingtheircompanies.Mrs.Nguye nLanNgoc-HumanResourcesManager-VinaOneCorporationstatedthat:
Hot-RolledSteelproductionislistedinthegroupofheavy-harmful–dangerousjobs byMinistryofL a b o r , WarInvalids,&SocialWelfare.Workershavetoworkveryhardintoxicenvironm entwhichi s fullofheat,dusta n d noise.Therefore,theyeasilyq u i t jobsift h e y arenotpaidaswhatt h e y des ervetocovertheirsufferings.
Workersintendtoquitafteronlyoneortwoyearsworkingbecauseofvariousreasonssucha s heavy workload,unfairperformanceappraisals,jobsafety,etc.Morethan70%workersi n steelorgan izationswhojoinedtheannualsurveysprovidethattheyareunsatisfiedwithcurrentjobs andwantto leavethejobs.Most workersi ngroup ofmanufacturingo r g a n i z a t i o n s su ggestthatbiasesf r o m supervisorsa n d u n f a i r treatmentsa r e i m p o r t a n t f a c t o r s thatp ushthemtoleave.
HumanResourcesManageratTanThanhQuyenSteelCo.,LtdmadeaspeechinTheAssociati onofLongAnProvinceSteelCompanyaboutthep r o b le m ofhighturnoverrateincurrentsociety. Shesharedthat:
Thepercentageo f workers,especiallyi n heavyi n d u s t r y sucha s Hot-
RolledSteeldivision,hasincreasedcontinuouslyovertheyea r s Mostofthemdecidedtoleaveearlyafterless than2yea r s working.Theyneedmoneytocovertheirlivingexpensesandsupporttheirfamilies,buttheydo notgett h e salaryleveltheydeservebecauseo f manyr e a s o n s Someo f t h e reasonsaret h e failureinevalua tingtheirperformance,managementbiases,lackingofbenefitandcompensation.
TheturnoverstatusofHot-RolledSteelfactoryinVinaOne
(Source:VinaOneHumanResourceDepartment)Ba s ed onthereportandanalysisofHumanResourcesDivisioninVinaOne(Figure3),thenumberof workersatHot-RolledSteelfactory(2015)were1,218(accountfor74.4%/total
(Source:VinaOneHumanResourceDepartment)Reg ar d i ng totheaverageagea s showninFigure4,ab ou t 63%
(equivalent763 workers) were 22to25yearsold,22.82%workerswere18to21yearsold andonly1.23%hastheag erangemorethan35yearofage.ItcanbeseenthatmostofworkersatHot -RolledSteelfactorywereveryyoung(22to25yearsold)andthereforealmostlackexperiences.
InFigure5, there were 744workers lessthan 6monthofexperience (61%intotal), 2 25wo r ke r s were6monthto1yearexperiencedandonly249workerweremorethan1yeare x p e r i e n c e Ba se d o n t h e populationi n f o r m a t i o n o f V i n a O n e i n gen er al an d H o t -
Hot rolling is a milling process that involves rolling steel at high temperatures, specifically above the recrystallization temperature for steels Steelworkers typically need only a high school diploma or equivalent, with apprenticeship opportunities available, emphasizing physical strength, dexterity, and stamina rather than advanced degrees According to Reich et al., there are three types of service work: routine production services, in-person services, and symbolic-analytic services Routine production services consist of repetitive tasks where employees are compensated based on their working time under routine supervision In-person services share similarities with routine production but require direct interaction with suppliers or customers Symbolic-analytic services, on the other hand, do not involve manual tasks like routine production or in-person services, but instead focus on enhancing problem-solving and identification skills.
RolledSteelfactorybelongstoroutineproductionservicesthattheyneedtoworkforlonghour sstranding,bendingorstooping.Theirresponsibilitiesa r e tosetupandoperateproduction machinesuptospecificstandards,gradebatchesofrawmaterialsandfeedthem intothemachines;storegoodsandrawmaterialsinfactorystoragea r e a s a n d w a r e h o u s e s , i n s p e c t f i n i s h e d p r o d u c t s t o e n s u r e t h a t theyc o n f o r m t o q u a l i t y standards.
Spence et al identified sixty types of workers, including workaholic, positively engaged, enthusiastic, relaxed, disenchanted, and unengaged workers A workaholic is someone who is excessively dedicated to their job, often leading to stress and work-life imbalance, which can strain personal relationships Positively engaged workers love their jobs and maintain a positive outlook, but their dedication may cause conflicts with family and health issues Enthusiastic workers are diligent and enjoy their roles, although their work quality might sometimes suffer due to lower stress levels Relaxed workers experience high emotional well-being and maintain harmonious relationships, showing a lack of conflict in their personal lives.
H o w e v e r , theymayn o t b e motivatedt o s t r i v e t o w o r k moreefficiently.A d i s e n c h a n t e d w o r k e r h a s veryl o w l i f e s a t i s f a c t i o n a n d l a c k ofp o s i t i v e emotion.T h i s g r o u p o f w o r k e r s i s a s e r i o u s p r o b l e m in corporations.Unengagedworkershavenomotivationtoworkandtheycandecidetomovet o othe rorganizations.Theydonothavealotofstressatworkandtheircapacitydependson therequ irementsoftheirmanagersorsupervisors.
Rolledfactory.FromTable1asb el o w , 87.4%ofemployees(equivalent1,218employee s)werefront- lineworkers,10.9%w e r e t e a m l e a d e r s a n d only1 7 % w a s s u p e r v i s o r s a n d b o a r d o f d i r e c t o r s I t meansthataveragely8workershave 1teamleaderand 60workersa reputunder1supervisor T h i s r a t i o canleadtoapressureonsupervisorswhenevaluatinge achworker‟sperformanceanditishardforthemtodothistaskcorrectly.
Position Quantity Income/month(millionVND)
(Source:VinaOneHumanResourceDepartment)Wor kersw h o a r e i n c h a r g e o f r e h e a t i n g f u r n a c e h a v e t o w o r k i n t o x i c a n d d a n g e r o u s e n v i r o n m e n t affectedbyheat,dustandnoise.Theseworkerswerehighest- paidemployeesb u t theirsalaryisonly8.5millionVND permonthwhichisnot highcomparedto thelivingstandardinbigcitieslikeHoChiMinhCity.Otherpositionsinthisdivisionalsohaveveryl o w w a g e s f r o m 6 5 -
8 millionV N D p e r montha s s h o w n i n t h e t a b l e a b o v e M o s t ofw o r k e r s (90%)havehi ghschooldiplomaorequivalent,apprenticeshipsavailable,only10%grad uat ed fromcollegesoruniv ersities.
(itmeans499w o r k e rs leftthe company)i n 2015, which is t h e highest numberin t h e last3 years.
(Source:VinaOneHumanResourceDepartment)Com paredtoothercompetitorsinthis industry,VinaOne has thehighest turnoverratewith4 1 % in2015.TheseratesinotherssuchasTanThanhQuyenSteelCo.,Ltd,Ng uyenMinhSteelManufacturing&TradingCo.,Ltd,TVPSteelareonlyintherangeof23%- 32%.MrsBu i ThiHaiHau-
Intheindustryofsteelmanufacturing,Hot- rolledsteeldivisionistheonewithhighestturnoverratebecauseworkersoftenfacemanydangersintheirworki ngenvironment.Theyalsohavelowsalaries;theirbenefitsandperformanceappraisalarenotconcernedaswe ll.Thisisoneofthereasonswhyt h e y wanttoleave.
VinaOneMan uf actu r in g C o rp or at io n
TanThanhQ uy en SteelC o.,Ltd
H u m a n Re so u r ce Department,the salariesofworkersin steelindustryarestablea ndonlyhaveasl i g h t risein theperiodof2014-2015 Thefactsfromthebelow chartshowthatVinaOne isnot t h e o n e h a v i n g l o w e s t s a l a r y w h e n c o m p a r e d t o o t h e r c o m p e t i t o r s i n t h i s i n d u s t r y T h e r e f o r e , itcouldnotconcludethattheworkersinVinaOnequittheirjobforl owsalary.
Machine control Making Cooling + coilers Structural iron hot rolled cutting
IncreasingturnoverrateofHot- RolledSteelworkersposesathreattoVinaOne‟svisionofbein g aleadingsteelmanufactureri nVietNamandSoutheastAsianregion.EllepolaMG4s t a t e d thatmaintaininglowturnoverrat ehelpsreducerecruitmentandtrainingcostsb e c a u s e new- recruitedemployeesdonotcontributetothecompanyoutcomesduringtheirtrainingandori entationperiod.Becausethehighturnoverrate,thedepartmentofHumanr e s o u r c e s atVinaO nehastorecruitnewworkersforHot-
RolledSteelfactoryeveryweek,leadingtospendalotofrecruitmentcosts(about10workersleftco mpanyperweek).Neww o r k e r s needtimetobe trained;thereforethe business resultsof thecompany inseveralweeksarenegativelyaffected.
Reheating furnace hotrolled cutting Structural iron Cooling+ coilers Making Machine control
(Source:VinaOneHumanResourceDepartment)In t h e l a s t t h r e e years,t h e p e r c e n t a g e o f leaversi n H o t -
R o l l e d S t e e l f a c t o r y ofh a s b e e n increasing.FromFigure9,workerswhoworkatreheatingfur nacehavethehighestturnoverr a t e with65%in2015(increased30%compareto2014).
A recent report from the VinaOne Human Resource Department highlights key reasons for employee turnover, with performance appraisal bias identified as a significant factor, accounting for 19% of departures This bias can negatively impact employee evaluations, leading to dissatisfaction and the intention to leave While other factors such as boring job duties, corporate culture, lack of career development opportunities, workplace relationship issues, and personal problems were considered, they were not frequently mentioned by employees in in-depth interviews Notably, these issues did not emerge as primary concerns for those interviewed, including Mr Tran Cao Thang from the Hot-Rolled Steel factory and senior worker Mr Nguyen Quang Huy.
In 2015, research by Prendergast et al highlighted that supervisors often distort their opinions during performance appraisals, which can lead to ineffective recruitment processes when candidates fail to meet organizational requirements Additionally, creating an appropriate performance assessment system proves challenging Poon emphasized that performance appraisals influenced by personal biases can result in low job satisfaction and increased turnover intentions among employees When employees perceive evaluations as biased or driven by ulterior motives, their workplace satisfaction diminishes Zimmerman et al found that a supervisor's perspective on employee performance significantly impacts turnover intentions, while Khan corroborated that managers' biases and emotions adversely affect employee satisfaction and commitment, ultimately raising turnover rates.
(Source:VinaOneHumanResourceDepartment)T u r no v er rateaffectsnegativelytoanorganization‟soperation suchasincreasing cost ofrecruitmentandtrainingnewcomers,reducingperformanceefficiency,etc.Thechartfrom
Theabovefiguresprovidestrongevidencesthathighturnoverrateofhot- rolledsteelworkeri s a n o u t s t a n d i n g p r o b l e m f o r t h e company‟so p e r a t i o n T h e m a n a g e r s a r e l o o k i n g f o r solutionstoreduceturnoverrateandachievefinancialtargets.In ordertoobtainthattarget,i t ‟ s necessarytounderstandthecausesof turnoverrate,whyHot-RolledSteelworkerswanttoleavethecompanyandifbiasesfromsupervisorshaveanyeffectsonthisra te.
PROBLEMIDENTIFICATION
Jobsafety
ThestudyofAmeenetal.10p ro v i d e s thatjobinsecurityisrelatedtoleavingintention.Whenj o b insecu rityincreases,jobsatisfactiondecreases a n d employees h a v e moreintentiontoseeko therjobs.IsmailH 11also found sameresultsshowingthat jobinsecuritysignificantlya f f e c t s todecisionsofquittingtheorganization.
RolledSteelfactoryalsoblamedthelackofw o r k p l a c e s a f e t y t o o l k i t , l a c k o f r e w a r d a n d r e c o g n i t i o n Theya r e n o t e q u i p p e d withadequateprotectiveeq u ip me nt ; manyofth em feeli nsec ur e whenworking inthefactory Theyoftenworkwi thharmfulobjectsandsufferdangerousworkingenvironmentsuchass t e e l fragments,e lectricalsparkwhichcouldinjurethemiftheymakeamistake.
SomeothersteelcompanieswiththesamescalesuchasTanThanhQuyenSteelCo.,Ltd,NguyenM i n h Ste elManufacturing& TradingCo.,L t d , VinaOneetcalsohavenotinvestedi n personalprotectiveequipmentf orworkersbecausetheyallwanttosavecostforotheractivitiestoenhancecompetitiveness.Witht h e small scalei n sucha middle- rankedcompanylikeT a n ThanhQuyen,savingcostsisconsideredasamainfactortocompetewithothercomp etitorssuchasVietNamSteelCorporation,HoaPhatSteelJSC,PominaSteelCorporation.
Mrs.NguyenTuongVi- afactoryworkerinReheatingfurnacedepartmentleftVinaOne3monthago after1yearworking,currentlyworkingforTVPSteelinLongAnprovince.Shesharedthat:
Shehadtried toworkbutshefeltunsafe forherhealthwhileshehad onebreastfedchildren.S heoftenexposedtotoxicgaseswhichisnotconducivetochildren,soshedecid edtoleave.
Work injuries in manufacturing firms contribute to high employee turnover rates Research by Urbana et al highlights a negative relationship between job insecurity and effective organizational commitment In 2015, the Human Resources Department at Vina One reported 14 accidents in their hot-rolled steel factory, including cases of fainting due to toxic gas exposure, hand and foot injuries from sharp objects, noise-related nerve damage, eye diseases, and one incident resulting in permanent disability due to inadequate protective safety gear Workers express concerns about safety levels in their jobs, which increases their intention to quit If the company fails to address these safety issues, employees may choose to leave the organization sooner rather than later.
Performanceappraisal
Zimmermanetal 8stated thatjobperformancehasanegativerelationshipwithintentiontoq u it Employeeswerelesslikelytoquitiftheirsupervisorsregardedthemasgoodperformers.
Mr.TranNhatTan–aworkerwhohasbeenworkingfor2yearsintheroleofHot-RolledS t e e l - TVPSteel(VinaOne„scompetitors)andnowhehasjoinedVinaOneinroleofHot-
Workersleftfactoryduetolackofsupportfromsupervisors,unclearjobdescription(misunderstandinga n d unsure)f o r workers.Workerperformanceevaluationwasb a s e d o n theirsupervisor‟sperspective.Ina ddition,therei s inconsistencyi n thewaysupervisorevaluatetheirteam.Afewofthemhadgoodperformance sbutwerenotrecognizedbecausetheydidn‟thavegoodrelationshipwiththeirsupervisors.DirectorsandHu manResourcesmanagerdonotcareabouttherealjobperformanceofworkers,onlybasedonevaluationfroms upervisor.
Bironetal 14found thattherewasanegativerelationship betweenperformanceappraisa la n d turnoverintentionsunderconditionsoflowtaskinterdependence.
RolledSteelfactoryreceivednosupportfromtheirsupervisors.Manyo f t h e m decidedt o workforotherste elcompaniessucha s NguyenM i n h SteelManufacturing&
TradingCo.,Lt d, HoaPhatSteelJointStockCompany,TVP Steelthoughtheseones offeredlessattractivebe nefits.
Selvarajane t a l 15p r o v i d e e v i d e n c e s s h o w i n g thate m p l o y e e ‟ s p e r f o r m a n c e a s s e s s m e n t r esu lt sareinfluencedbymanagement‟sbias.Managerscanevaluatewhet heranemployeeworksuccessfullyornotuptotheirperspectiveswithoutlisteningtoemploy ee‟sopinions.M o s t recentbehaviorsorpresenteditemsbecometheprimaryfocusoftherevi ew(recencye f f e c t ) Supervisorstendtomakeassessmentsbasedonshort- termevents,notbasedonthee n t i r e appraisalperiodthatcanleadtofalseperformanceappr aisals.Theyassumethatthet r e n d whichoccursinshorttermwillcontinueandrepeat.Thisis adangerousbiasbecauseo f inaccurateperformanceratings.
Ontheotherhand,Moers 16found thatsubjectivityinperformance evaluation canlead tod i f f i c u l t y inmakingaccuratedecisions.Thispaperundertakessomeliteraturereview sthatp r o v id e t y p e s o f b i a s e s a n d e r r o r s inp e r f o r m a n c e a p p r a i s a l p r o c e s s T h e s e b i a s e s a r e asb e lo w :
HaloEffectwasfirstintroducedbyEdwardThorndike 17t h a t isatypeofcognitivebiasinw h i c h ouroverallimpressionofaperson(featureortrait)andhowwethinkabouthimorh e r Forexample,whenweperceivehimorhertobesuccessful,beautifulorattractive,wea l s o tendt oseethemasintelligent,kind.Themanagersmayignoreotherobjectivetraitsofa n employeebe causehispositivequalities.This perspectiveisoftenbasedonpersonalityconflictor otherfactorsthatarenotrelatedtojobperformance.Managerscangivehighrateforemployeesw h o h a v e g o o d r e l a t i o n s h i p w i t h t h e m T h i s i n f l u e n c e s e m p l o y e e perform anceappraisalsaswell.
Centraltendencyisabiasthatmanagersrateallemployeesasmiddlelevel.Thisbiascanl e a d t o i n a p p r o p r i a t e int h e p e r f o r m a n c e a p p r a i s a l s b e c a u s e t h i s d o e s n o t r e f l e c t a l l t h e contributionsandproblemsofemployees.Manyemployeeshavelowperformanc ethatmayb e ratedslightlyaboveaverage,ontheothersideagoodemployeeshouldnotberatedinthesa merateastheydeserve abetter grade.Managersor supervisorswitha viewtoplayitsafet r y toavoidconflictsandotherissues.
Spillovereffectisabiasin which managersor supervisorsevaluate thecurrentperformanceofanemployeebasedonthebasisofhisorherperformanceinthepa st.Theworkerwhow as a g o o d p e r f o r m e r i n t h e p a s t i s a s s u r e d t o b e f i n e r a t e d a t p r e s e n t T h i s k i n d o f performancea s s e s s m e n t c a n n o t b e a c c u r a t e I f t h e performancer e v i e w o f employeesisg o o d , managerscankeepthesameratingfortheircurr entperformance 18
Leniencyandseverityerrorsarethebiasesdependinguponsupervisors‟standards,valu esa n d physicalandmentalmakeup.Supervisorscanrateinaharshorlenientway.They tendt o givehighscorestopeopleundertheirsupervisionorintheirteams.Leniencyorseverityer rorisimportantissuesthatleadtoinaccurateperformanceappraisals.Moers16s t a t e d thatsupe rvisorscangivemorelenientscoreofperformanceappraisalstowardtheiremployee w h e n theyh avepowertomakedecisioninperformanceevaluation.Iftheywanttogethighs co r e performer,the ytrytoreviewlenientlyfortheirworkerswithhighresultsinexchangef o r personalbenefitssuchasr ewardsandpromotions.
RolledSteelfactorywhointendedtoquith i s jobbutthenwereconvincedtostayandmovetoaneasie rjobatCold-RollSteel.Hehas contributedhis5yearstoworkatHot-RolledSteel– wherehehopedtoreceivehighsalaryf o r t h e h a r d a n d d a n g e r o u s c o n d i t i o n U n f o r t u n a t e l y , h e didn o t g o a l o n g w e l l w i t h h i s supervisor,andallhisoutstandingcontribution swerenotrecognizedthroughall theseyearsw i t h thelowsalarywhencomparedwiththemarket.
Watrousetal 19showed thattherearerelationshipsbetweenemployeeturnoverandperformance appraisalswhichcanbedifferentforeachmanagersatdifferentlevelsintheo r g a n i z a t i o n Kondrasuk 20provided thattheperformancereviewsofemployeesshouldbeb a s e d o nbothobjectiveandsubjectiveaspectsoftheemployee'sjobperformancewithinthec o n t e x t ofach allengingjobsituation.
The personalbiasleadsto unfairappraisalsfortheemployees.Personalbias cancomefromd i f f e r e n t sourcessuchascorevalues,socialandfamilybackgroundsand waysofthinkingo r believing Selvarajanetal.15d e v e l o p e d acognitiveperformance appraisalmodelthatwasi n f l u e n c e d byschematic,affectiveandattributionalprocess.
Research by Tsai et al (2021) highlights that employee communication satisfaction is closely linked to job performance and turnover intentions Effective communication encompasses discussions with supervisors, obtaining company information, and receiving personal feedback Min et al (2022) further emphasize that a lack of personal interaction can diminish emotional attachment and loyalty to the organization, leading to higher turnover rates Therefore, it is essential for supervisors to conduct objective performance assessments and engage with employees more frequently regarding their performance outcomes, rather than relying solely on personal biases.
Errorsinrecruitmentprocess
Ms.NguyenT hi ThanhThao - Operationm a n a g e r ofH o t -
R o l l e d S t e e l factory, has beenwor king a s ano p e r a t i o n managero f an1 , 2 1 8 - w o r k e r f a c t o r y a t V i n a O n e f o r nearly8 years.Shestatedthat:
WorkersleftVinaOneduetothefailuresinrecruitment,careerdevelopmentandteamengagement.T h e wo rkershavetherightstoknowtheirdetailedcareerpathsatthecompanybuttheywereunablet o reachtheinform ationwhichwasonlytransmittedthroughtopmanagers.Thiscouldleadtothemiscommunicationamongle adersa nd employees.Moreimportantly,rumorsh a d itthatthemanagerscommittedafraudbypurposelygiv ingfalseormisleadinginformationorwillfullyhidinginformationinordertogetbenefits.
Allen23indicates thatteamcommunicationismorecloselyrelatedwithintentiontoquitina n org anization.Ifemployeesengagewellwiththeirteams,theyarelessvoluntarilyintenttoleaveth eorganization.
Besides,M s N g u y e n T h i T h a n h T h a o a l s o p r o v i d e d somee v i d e n c e s o f p r i o r i t y recruitmentsw h e n h i r i n g a c q u a i n t a n c e s a s w e l l a s h o w i n e x p e r i e n c e d r e c r u i t e r s o f f e r e d p o o r jobdescriptionsandgivingunfairworkallocationswhichma demanyworkersc o n f u s e d Chenetal.24f o u n d thatdifferentchannelsofrecruitmenthaddiff erenteffectsonturnoverintention.Theacquaintancepriorityinrecruitment processwill makeemployeesc o n f u s e d anddiscriminatedintheworkplace 25O n theotherhands,thee mployeeswhoare hiredbytheiracquaintances,manyofthemcan‟tmeetthejobrequirementsandlowertheper formanceofthewholecompany.
EllepolaMG 4indicated thatcandidatesshouldbewell-screenedinthehiringprocess;if not,theynotonlyh a v e n o c o n t r i b u t i o n t o t h e o p e r a t i o n o f c o m p a n y , b u t a l s o w a s t e costso f trainingduringtheorientationprocess.Inaddition,Vispute26suggested thattherecruitmentp r o c e s s playsanimportantroleincreatingloyaltyandreducingturnoverrate.Themanagersn e e d t o p r e p a r e t h e i r recruitments t r a t e g i e s t o maintaint h e l o y a l t y o f e m p l o y e e s i n t h e o r g a n i z a t i o n
Compensation andbenefits
Arocas 27found t h a t t h e i m p o r t a n c e o f f i n a n c i a l i n c e n t i v e s ins t a f f r e t e n t i o n g o a l i s h u g e AccordingtocompensationpolicyinVinaOne,workers'wagesarepaidincluding4ele ments:basepay,jobperformance,overtimeandcostoflivingadjustment.
Basepay,w h i c h t a k e s a b o u t 5 0 % o f t o t a l income,i s q u i t e l o w from3 t o 4 millionp e r m onthbasedonthenumberofhoursworkedduringthemonth.Wagespaidinjobperformancea c c o u n t i n g f o r 3 0 -
3 5 % i n t o t a l incomei s e v a l u a t e d bys u p e r v i s o r b a s e o n productivity,teamwork,co mpliancewithregulationsandattitudeatwork.Overtimeispaide q u a l l y to150%ofthebasep aybutnotmorethan20%ofthemonthlybasepay.Costofl i v i n g adjustmentsareappliedo nlyforworkersresidingoutsideLongAnprovince(wheret h e companyisregistered).Weca nseethatmajorityintheincomeofworkersexceptbase paydependmuchontheassessmentofthesupervisors.Carraher28p r o v i d e d thatthereisa relationshipbetweenpaysatisfactionandturnover.Toretainemployees,thecompanyneedst o makebe ttersalarypolicythanwhatcompetitorsoffer.
Inaddition,Mrs.NguyenTuongVi-afactory workerinReheatingfurnacedepartmentleftV i n a One3monthago.Shethoughtthat:
Shewaswillingtoworkhardaslongastogainbettersalaryandbenefits,buthereffortswerenotp a i d off.L a c k ofreward,recognitionandunfairpayare thebiggestreasonwhyemployeedecidedtoleaveVinaOne.Theinconsistentcareerpaths,severedisciplineas wellaspoorpromotionalopportunitiespushedhertoleave.
O'Halloran 29 revealedthatbenefitstendtoreduceturnover.Ifworkersreceivesomemore benefitsbasedontheirgoodperformance,theirintentiontoquitislowerthanotherworkers.
Work-lifebalance
Work- lifebalanceiswhatcompanieshelptheiremployeestoimprovetheirhealth,satisfyt h e i r personallife,whichcanalso improvetheirproductivity andperformance.However,m a n y employeesnowadayshavetofacewithchallengestobalancetheirworkandpersonall i f e 30S u r i e n t y e t a l 31 providedt u r n o v e r i n t e n t i o n i s r e l a t e d t o w o r k - l i f e b a l a n c e , supervisorybehaviorandjobcharacteristics.
Work- lifebalanceisanimportantproblemimpactingonturnoverintentionbecausetheworkloadiss o heavy,theyc ouldnotmanagetimewellanddon‟thavetimefortheirpersonallife.Manyworkerscan‟t findtheirownmate,beunabletovisitfamilyduetotightschedule.
Azizetal 32stat ed thatworkaholicshavehigherlevelsofwork- lifeimbalancethane n t h u si as t s , an d disenchantedworkershavehigherlevelsofwork- lifeimbalancethanot h ers Positivelyengagedworkerscanimprovetheirwork- lifebalancebystayinginvolvedi n p e r s o n a l activities.Besidesthat,Leeetal.33p r o v i d e d t h a t peopleleavetheirjobs becauseofv a r i e t y o f e v e n t s ( c a l l e d s h o c k s t o t h e s y s t e m ) w i t h U n f o l d i n g M o d e l o f V o l u n t a r y EmployeeT u r n o v e r A s h o c k m i g h t bea n t i c i p a t e d o r u n a n t i c i p a t e d , p o s i t i v e , n e u t r a l , orn e g a t i v e Whenpeople experienceashock,theycanquicklydecidetoleaveanorganizationw i t h o u t planningforthefutureto pursueanotherjob.
Moreover,Mr.TranCaoThang–aworkeratHot-RolledSteelfactorysharedthat:
Heavyworkloadleadstolowengagementinteams.Workerscouldnotorganizetimeforworkandf o r theirf amilybecausetheworkingschedulefromMondaytoSaturday,8amto5h30pm.Inmanydays,theyhavetowo rkovertime(3to5hours/dayincludingSunday)inordertokeepupwiththeproductionprogress.
Devie t a l 34found t h a t b a l a n c e w o r k - l i f e playsa n i m p o r t a n t r o l e i n t h e d e v e l o p m e n t ofc o m p a n y workforce.Mitchelletal.
EmbeddednessModel”,explainingwhypeoplestayandleaveinorganizations.Jobe m b e d d e d n e s s modelindicatesthatmanynon-financialandnon- attitudinalfactorsservetop l a c e p e o p l e ina n e t w o r k o f forcest h a t k e e p t h e m i n t h e i r job.36Companies n e e d t o implementwork-life balanceprograms u c h as child care,f l e x i b l e w o r k arrangements,employeesupportprograminaccordancewiththedifferentpersonalitiesofempl oyees.
Compensation and benefits Job Safety
Job danger, Lack of reward and recognition Workload harmfulness
Lack of workplace safety Lack of life insurance
High turnover rate (Hot- Rolled Steel
Recency bias and personal bias errors
Increasing cost of recruitment and training
Unfair recruitment (priority acquaintance) Inconsistency across supervisors
Unclear job description (misunderstanding and unsure) Supervisors are not trained
Performance appraisal bias from supervisor Recruitment errors
Cause–and–effecttree
Fromtheresultofsurveysinsevenrespondentstogetherwithturnoverliteratures,performanceappraisalbiastheories,the p r e l i m i n a r y cause–and–effecttreewillbedevelopedasfivemaingroupsasfollow:
Fivefactorsleading tohighturnoverrateofHot-Rolled steelworkersincludecompensationan d b e n e f i t , work- lifeb a l a n c e , j o b safety,r e c r u i t m e n t e r r o r s , p e r f o r m a n c e a p p r a i s a l biasf r o m su pervisor.ThisproblemcouldhaveseriousimpactonVinaOne‟sactivitiesbecauseitc o u l d i n c r e a s e c o s t o f r e c r u i t m e n t a n d t r a i n i n g n e w e m p l o y e e s thatr e d u c e p e r f o r m a n c e effi ciency.37L a s h l e y
03types ofdirectcosts whenreplacingstaffincluding:t h e costof discontinuingofanexistingemployee,thecostoffindingareplacement,thecosto f bringingthenewco mersintocompanyandtrainingthemtofulleffectiveness.
Turnovercostsarenoteasytobecountedexactly,accordingtoareportofannualvolumefr omH o t - R o l l e d S t e e l factory,i t s c a p a c i t y r e d u c e d from2 5 0 , 0 0 0 ton/ yeart o 1 6 0 , 0 0 0 ton/ yearduetohighturnover,whichtakesthefactorymoretimetotrainnewworkers.Thec o m p a n y c u r r e n t l y suffersh i g h d e p r e c i a t i o n c o s t o f 2 3 0 millionV N D / m o n t h w h i l e thec a p a c i t y utilizationrate cannotexceed beyond 65% which cause hugewastesand low profitmargin.
Simonsetal 39a l s o foundthatturnoverdrivesoutprofits,manyofthespecifiedcostsderivef r o m prod uctivitylossesthataredifficulttoestimate.
CAUSEVALIDATION
Basedonth e cause andeffect tree, in- depthi nt er vi ew from7r e s p o n de n t s d i v i d e d in to 3 maingroups(see Interviewguides), secondarydata fromHumanResources departmentandtheories informed,itcanbeseenthatthemaincauses leadingtohighturnoverofworkersinh o t - r o l l e d steelfactoryareperformanceappraisalandrecruitmenterrors.ItisimportantforV i n aOnetohaveactionplanstosolvethisproblemimmediately.
Addressing compensation and benefits at VinaOne is a complex issue that cannot be resolved immediately Firstly, improving compensation for high-performing employees is essential, but any changes must balance costs and benefits Secondly, employees are motivated to work hard due to the competitive compensation and benefits offered by VinaOne compared to firms like TVP Steel and others Research indicates that perceived desirability and ease of leaving an organization significantly influence turnover rates Employees are less likely to leave if they see promising career prospects within the company However, this model lacks sufficient empirical support Ultimately, employees seek support from supervisors and fair evaluations to feel valued and motivated in their roles.
Regardingtowork- lifebalance,itisnotakeyfactorleadingtomassiveturnoverinVinaOn e.Formoney,wor kersareforcedtochoosebetweentheirpersonallifeandthedead- endj o b alongwithhighpressureandheavyworkload.Toearnmoneyandsupporttheirfamily, m a n y workersacceptthisfactasanormalsituation.Infact,notmanyworkersinVinaOnel e a v e jobsbecauseoftheworkloaditselfonly.Mr.TranNhatTan-aworkeratHot-
RolledS t e e l factoryandMrs.NguyenTuongVi- afactoryworkerinReheatingfurnacedepartmentalsoindicatedthatbiasesfromsuperv isorsonperformanceevaluationismainc a u s e thatleadstohighturnoverrate.
Forj o bs a f e t y , i tc a n b e s e e n t h a t r i s ks i n heavyindustryareu n a v o i d a b l e Theyallf a c e someformso f o c c u p a t i o n a l h a z a r d s i n t h e w o r k p l a c e H o w e v e r , t h a n k s t o s o m e requirementsinlawsandregulationsofthegovernment,manyfirmshaveimprovedtheir w o r k p l a c e andprovidedpersonalprotectiveequipmenttotheirworkers.Theproblemonl ya ri s es w h e n somec o m p a n i e s b r e a k l a w s orp u r p o s e l y a c c e p t thec u r r e n t o c c u p a t i o n a l a c c i d e n t rateasanacceptableone.Mrs.BuiThiHaiHau-
Noto n l y VinaOnebutalsohercompanya n d othersteelmanufacturersaretryingt o improveworkingcond itionsforworkersbyequippingworkplacesafetytoolkit,trainingemployeesonsafetyregulationsthathelpre ducetheriskofworkerinjuries.Thisissuecannotbesolvedinshorttimebutn e e d timetoexaminemanyaspe ctstoenhanceemployeeawarenessoflabor safety.
Itc a n b e s e e n t h a t p e r f o r m a n c e a p p r a i s a l a n d r e c r u i t m e n t e r r o r s a r e c o n s i d e r e d a s m a i n f ac t o r s thataffecttoworkers‟turnover.Inthesetwofactors,performanceappraisal hasthemostimpactontheturnoverrateatHot-RolledSteelfactory becauseofthreemainreasonsa s below.
Firstly,mostofthepeoplewhotookpartinthein-depthinterview statedthatthekeyreasonleadingtohighturnoveratHot- rolledsteelfactoryisrelatedonthebiasesfromsupervisoro n performanceappraisal.Theydidn otmentionalotthoseotherfactorsandtheyarenotthet o p ofmindideafromtheirends.
Itisimportantforallemployeestohaveagoodrelationshipwiththeirsupervisorsbecauseitwouldhaveimpact onhowtheirperformancesareevaluated.Ifnot,theemployeescanbeunfairlyjudgedwhichleadstothecrisis ofhighturnover.
Mr.TranCaoThang-aworkeratHot-RolledSteelfactoryandMrs.NguyenLanNgoc- HumanR e s o u r c e s M a n a g e r a l s o a g r e e d t h a t s u p e r v i s o r s ‟ p o i n t o f v i e w o n p e r f o r m a n c e a p p r a i s a l hasstrongconnectiontohowmanyemployeesquittheirjobs.
Secondly,mosto f workers‟incomecomesfromba s e p a y whicha c c o u n t s f o r moret h a n 5 0
% intotalsalarybutthiscouldnothelpthemaffordtomeettheirlivingstandardduetolowerl e v e l c o m p a r e d t o t h e market.T h e remainingp a r t o f t h e incomef r o m j o b performanceisa ssessedbasedontheirsupervisorperspectives(accountsfor30-
35%intotalincome).Therefore,ifthereareanybiasesinassessmentfromsupervisors, it could stronglya f f e c t totheworkers‟decisionstostayorleavethecompany.
Thirdly,w or ke rs a r e p u t u n d e r h ea v y pressured u e t o thel a c k o f supervisors‟ su p p o r t ind a i l y operationandnoresponseintheirdemandsofelucidationinwagesandperforman ceassessment.Moers 16al s o indicatethatperformancemeasurementwithsubjectivityisrelatedt o performanceappraisalsbias.
Currently,VinaOnehasrecognizedthesupervisor‟sbiasesasthemainreasonforitshighturn overrate.Thec o m p a n y hasappliedm a n y solutionsincludingchangingperformancea p p r a i s a l processandeliminatingrecruitmenterrors.However,theresultsfromthesesolutionsseemnot tobeveryeffectiveduetothesebelowreasons:
Firstly,theseprocessesneedtimetobechangedandcommunicatedtoallemployeeswhileh o w thecurrentsupervisorstreattheirworkersstillcauseschagrinanddisappointme ntinworker‟sm i n d s
Secondly,t h e s e p r o c e s s e s a r e r e n e w e d byt a k i n g f e e d b a c k s froms u p e r v i s o r s a s w e l l aso t h e r topmanagers,onlyafewfromworkers,whichmademostworkersfeeddisrespected.
Animmediateaction shouldbetakentoreducethenumberofworkersquitting theirjobsbybuildinga suitabletrainingcourseandimprovingbiasesfromsupervisoronperformanceapprai sal.However,VinaOnehasnotbeenfocusedontheseactions.Asupervisor,whoisnew- comerrecruitedoutsideo r promotedfromanormalworker,isnotwell- trainedaboutwhattheirresponsibilitiesandbenefitsa r e Thisissuemakesthemfollowonlytheirheartswh enevaluatingothersanddisregardingthefairperformanceappraisal.
Employeesofthetrainedsupervisorsalsoweremoresatisfiedintheirjobsthanagroupofworkerswhosema nagersdidnotundergotraining.However,thissolutionhassomelimitationsduetosomereasons:short- timetraining(only1day),notyetextendedtoallremainingsupervisors,thetrainedsupervisorsdon'talways havetheabilitytoshareeverythingwiththeiremployees.
ALTERNATIVESOLUTIONS
Thefirstalternative solution:biasesfromuntrainedsupervisors
At InVinaOne, supervisors lack training in performance assessment and feedback, relying instead on personal feelings without clear evaluation criteria Many supervisors are hired based on personal connections with HR executives, with some being current team leaders or having good relationships with internal employees There are no established criteria to assess their experience or leadership styles, and some supervisors have no relevant training or experience in managing people A report from the Human Resources Department indicated that they receive only one day of training before assuming their supervisory roles Additionally, the orientation and training programs are poorly organized and lack standardized documentation, resulting in negative outcomes when supervisors begin their jobs.
Weusedtoapplytrainingclassesforagroupof5supervisorswhoarecurrentlyworkingasexcellentemployeesi nthecompanyinmanyyears.Thoughthereisonlyafewpeopleattendingthisprogram,theireffectivenessinw orkingwiththeirsubordinatesprovethissolutiontobeworkable.
Indetails,itcanbeseeninarecentsurveyforthesecondhalfof2015,71.5%employeesunderthetrainedsu pervisorsweremoresatisfiedwiththeirjobs,workingenvironmentandsupervisor‟ leadershipstyle.From2016uptonow,therearenoemployeesleavingorhavinganybadfeedbacksa b o u t th eirsupervisors.T h i s givesmoreevidencesf o r h o w trainingmethodc o u l d helpreduceemployeeturno verrateinVinaOne.However,VinaOnehasnotyetfocusedontrainingemployeesd u e tomanydifficultiesi nsteelindustrynowadays.Thecompanywouldliketocutcostsandlookdowntotheimportanceoftrainingpe ople.
Supervisorsarenottrainedonleadershipandcommunicationskills.Theymaybeforcedtodoa p p r a i s a l s o n t h e i r w o r k e r s w h i l e theydon‟t k n o w t h e i r c a p a c i t i e s a n d c o m p e t e n c i e s A cco r d in g toGreen 42 ,trainingsupervisors intransformational leadership that canhelptoe n g a g e employeesandreduceemotionalexhaustionandintentiontoquit.MsN guyenLanN g o c – H u m a n R e s o u r c e s managers u g g e s t e d thati t i s i m p o r t a n t t o r e - t r a i n s u p e r v i s o r s a b o u t internalcommunicationprocessand softskills.Someimp ortantskillsarelistening,interactingandmotivatingontheirworkers,whichwouldh e l p t o e a s e t h e r e l a t i o n s h i p b e t w e e n supervisorsandworkers.Thus,supervisoryandm anagementskillstrainingseminarsshouldbeheldimmediately.
Knowingtheirtruerolesandresponsibilities, ga in in g experiencesindealingwit hissuesandconflicts.
Identifyingthe employees‟needs andhelpthemplantheircareer pat h aswellastr ainanddevelopthem.
Establishtherelationshipwiththeirpeers,gainthetrustandsupportoftheirstaff / man ger s Ast h e r e s u l t , i t h e l p s t o r e d u c e e m p l o y e e t u r n o v e r t h a t le adstoimprovethebusinessofHot-RolledSteelfactory.
Thecost fo r training seminars on supervisoryand ma nage me nts ki ll s perpe rs on is
5 Additionalc o s t ( e l e c t r i c i t y , t e l e p h o n e , n o t e p a p e r s , clipboard,pens,evaluationform,etal) 5,000,000
Thesecondalternativesolution:biasescausedbyinconsistencyacrosssupervisors
Eachsupervisorhastheirownpointofviewandjudgmentscale.Employeesworkingunderdiffer ent supervisorswillbeevaluateddifferently.Someeasysupervisorswouldbelikelytog i v e h i g h sc oreso n p e r f o r m a n c e s t h a n o t h e r s Whent h e r e i s n o standardp e r f o r m a n c e e valuationscaletobenchmark,managementskillsofsupervisorscanhavehugeimpactonjob performanceandemployees‟salaryandcareerpaths.
OnTurnoverModelbyMowdayetal 43w h o statedthatthereareinteractionofintentiontol eav e a ndalternativejobopportunities(easeofmovement)thatimpactonturnover.Theysug gestedthatjobexpectationsandaffectiveresponsesleadtoemployees‟decisiontostayo r l e av e anorganizationtoseekformorejobalternatives.Effectiveresponsescould leadanemployeetomakeeffortstochangehisorhermindtoleaveorquitajob.
Moreover,accordingtoSograeta l 44 ,s u p e r v i s o r s n e e d t o a v o i d a b u s i n g t h e i r p o w e r f o r assessingtheemployees'performancesothattheycanachievetheirownpoliticalbenefi t.T h i s problemmayleadtoconflictsamongemployeesandsupervisors.Theemployee canh a v e negativereactionsandintendtosabotagetheorganizationalenvironmentandbusinessr es u l t s
Leaders should adopt adaptable leadership styles to effectively manage different types of workers, including workaholics, positively engaged, enthusiastic, relaxed, disenchanted, and unengaged employees By understanding how to treat each employee individually, good leaders can enhance performance and increase job satisfaction, leading to higher employee retention Research indicates that unbiased performance evaluations can further boost employee satisfaction, and organizations can reduce turnover intentions by focusing on job satisfaction Employees often feel distracted or develop negative emotions about their future when job satisfaction declines Therefore, managers should engage more frequently with employees throughout the appraisal process, providing feedback on their strengths and weaknesses to foster improvement and development.
Orsini 49provided thatc o m m u n i c a t i o n toolsandpracticesthatcouldbringeffectiveinter nalcommunication.Thepracticesofinternalcommunicationaredividedtoeightbroad categories:managingtechnology,meetings,orientation,recognition,supportingpeople,tools,vi sibleleadershipa n d informationsharing.Itcouldhelptoreducetheturnoverrateifsupervisorssup porttheirw o r k e r s byt a k i n g q u i c k a c t i o n s f o r a r i s e n problemsa n d l i s t e n i n g t h e i r w o r k e r s ‟ v o i c e s Theymustavoidbiaswhenmakingdecisionsandkeephighintegrityandtranspare ncyinalla s s e s s m e n t s
Encouragingp a r t i c i p a t i o n o f a l l employees,ensuringt h a t anyoneg e t t h e samei n f o r m a t i o n atthesametime.
Increasinge f f i c i e n c y o f o p e r a t i o n throughcreatingopenl i n e s o f c o m m u n i c a t i o n b et w e e n supervisorsandemployees.Theycandiscussanyweaknessesorissuesthatemplo yeeshaveandhelpthemfindsolutions.
Creatinga p o s i t i v e c u l t u r e o f f e e d b a c k a n d i m p r o v e m e n t s E m p l o y e e s c a n f e e l h ap pyandcomfortableatworkplacethathelpsincreasetheirsatisfactioninth eirjoba n d decreaseintentiontoquit.
3 6 5 , 0 0 0 , 0 0 0 b a s e o n qu ot atio nofVinaOneHumanResourceDepartmentindetailasfoll ows:
1 Buildinginternalcommunicationtools(workteam s,information s h a r i n g f r o m l e a d e r s t h r o u g h meeting,weeklyreporttokeepstaffinformed)
2 Buildingsocialevents,officetours,companytripsot h a t a l l memberscanmeetf a c e –to- facec o m m u n i c a t i o n andcreateopportunitiesfor learninganddevelopment(~VND300,000/person)
3 Providing white board, brochures and regular 10,000,000 newslettersi n o r d e r t o k e e p s t a f f informedo f c o m p an y activities,recognizesstaffcontributions, hi g h li g h t birthday,otherevents,etal 49
AccordingtoK i m e t a l 50stated t h a t s u p e r v i s o r y c o m m u n i c a t i o n h a d s i g n i f i c a n t d i r e c t e f f e c t s o n t u r n o v e r i n t e n t i o n amongw o r k e r s S u p e r v i s o r s w h o h a v e e f f e c t i v e communication practices,cansupportemployeesinwork andimproverelationshipbetweenb ur no utandturnoverintention.
VinaOneshouldorganizesocialevents,officetours,companytriptoincreaseemployees‟engagement.Curre ntly,theseactivitiesareconsideredasapply foronly officersandnotyetextendedt o allremainingemployeesincludingworkers,d u e t o limito f b u d g e t (MsNguyenL a n N g o c - HumanResourcesManager)
Jeffrey 51stated thattravelishighlymotivatingtoemployees andcreatespositivefeeling stowardsthatleadtoincreaseorganizationalcommitment.Employeesarehighlymotivate dw i t h thewillingnesstoexertefforttoearntravelreward.
Thethirdalternativesolution:recencybiasandpersonalbiasfromsupervisors
Research indicates that individuals with familiarity and expertise in a task exhibit less bias in decision-making At VinaOne, some supervisors evaluate employee performance based on personal feelings, leading to potential bias To address this issue, implementing an annual 360-degree assessment for supervisors is recommended, incorporating feedback from line workers (30%) and current KPI results (70%) Supervisors scoring below 50/100 would be replaced, while those scoring between 50/100 and 70/100 would undergo training to enhance their skills in employee management It is essential to carefully weigh the costs and benefits of this training option.
Minetal 22stated thatthebeststrategytocopewiththehighturnoverrateistoincreasea c t i v e e m p l o y e e i n v o l v e m e n t byinstilling " b o t t o m - u p " m a n a g e m e n t attitudes.M o r e o v e r , V i n a Oneshouldreviewandbuildabetterperf ormanceassessmentprocessonworkersatn otonlyHot-
To enhance the assessment process at the rolled steel factory, it is crucial to incorporate feedback from workers, supervisors, and HR, ensuring a comprehensive evaluation system that holds both parties accountable Open forums should be established for workers and top management to address mutual concerns Mr Tran Nhat Tan suggested creating direct communication channels, such as suggestion boxes or hotlines, for workers to reach out to management Additionally, the disconnect between KPIs and job descriptions poses a significant issue that must be addressed Research by Pettijohn et al indicates that an effective appraisal system can reduce turnover rates VinaOne should implement clear KPIs for both workers and supervisors and develop an evaluation program that includes second reviews and cross-comparisons The appraisal process should involve assessments from both supervisors (accounting for 40% of the total score) and the Human Resources Department (60%) to ensure accuracy and fairness Supervisors should also engage in side-by-side comparisons of worker performance within teams and across similar job functions.
Providinginformationthathelpsmanagers/ supervisorsknowaboutwhattheiremployeeshavedone,whatisgoodandwhatisnot.The n,managerscanhelpthemtoachievetheirobjectivesaswell.
MeetingsbetweenrelateddivisionandH u m a n Resourcesdepa rtmentt o g e t i d e a s a n d c r e a t e a s s e s s m e n t c r i t e r i a f o r e a c h p o s i t i o n , keyperformance q u e s t i o n , keysr e s u l t a r e a , k ey performanceindicators
Tos u m u p , t r a i n i n g s u p e r v i s o r s , p r o v i d i n g b e s t p r a c t i c e s a n d t o o l s t o im provei n t e r n a l c o m m u n i c a t i o n programandprovidingeffectiveKPIsare3proposed solutionstoimprovethep r o b l e m o f biaseson performance appraisali n V i n a
Training is one of the most effective methods for enhancing awareness and skills among employees Through knowledge gained in classes and on-the-job experiences, supervisors can understand the critical role that performance evaluations play in employee satisfaction and loyalty This understanding also underscores their responsibility to conduct fair evaluations, as improper assessments can lead to consequences Research by Abuharris et al highlights that while training can facilitate positive change within an organization, it is essential to recognize its impact on all employees, both directly and indirectly When executed effectively, training can lead to increased profits, promotions, and new job opportunities; however, poorly conducted training may result in negative outcomes such as loss of credibility, decreased performance, and heightened conflict among staff.
V N D 75millionwhichisabettercostwhencomparingtoprovidingbestpracticesandtoolst o impro veinternalcommunicationprogram.ProvidingeffectiveKPIsisalsoagoodsolutionwiththelowes tcost,butittakestimetoresearchandreceivefeedbackstobuildab r a n d newKPIstoolaswellastotr ainandcommunicationthischangetoallemployees.
Thirdly,a c c o r d i n g t o somef e e d b a c k s f r o m m a j o r i t y o f w o r k e r s w h o l e f t V i n a O n e , t h e mainr e a s o n f o r t h e i r d e c i s i o n i s t h e i r s u p e r v i s o r ‟ s b i a s e s w h e n e v a l u a t i n g t h e i r p e r f o r m a n c e s Mr.TranCaoThang-aworkeratHot-
Ifsupervisorswerewelltrained,theywouldhaveknownhowtoevaluatetheiremployeesfairlyandconsiderthi staskasimportantasmanyothertasks assigned.Thiscouldhelpincreasetheemployees‟satisfactionandeasetherelationshipbetweensupervisorsand workers.
Anothersolutionistoreplacealltheexistingsupervisorsbyrecruitingnewones.However,thissolutionopt ionshouldbetakenintocarefulconsiderationbetweencosts(recruitmentc o s t , trainingcostsfornewco mer,operatingcosts,factorycapacityutilizationrateisnotoptimized)andbenefits.MsNguyenLanNgoc- HumanResourcesManager-addedthat:
Trainingthecurrentsupervisorsisbetterthanhiringnewonesbecausetheorganizationalcultureisdifferentat othercompanies,whichrequirestheemployeesandsupervisorstoadaptquickly.Intheperiodof 4/2015-8/2015,werecruited4n e w supervisorsfromothercompaniest o replacetheol d o n e s However,theyne edatleast20daystoadaptwithourcultureandtheprocedures.Thereweretwoofthemquittingtheirjobbecau seofthehighpressureandnotyetadaptingtotheculture,theinternalprocessaswellasthelackofengagementfr omtheirteam.Secondly,the oldoneshavemore experiencesandgetusedtothetasks,whichhelpsavetimetotrainnewones.Thirdly,accordingtocareerpatho fteamleadersateachfactory,theywouldbepromotedtobesupervisors.
When weighing the costs and benefits of training versus recruiting new staff, prioritizing the training of supervisors is essential This training program focuses on developing soft skills, leadership abilities, and knowledge management, while also enhancing performance evaluation practices and tools Ultimately, it aims to improve internal communication between leaders and employees.
ORGANIZATIONOFACTIONS
R o l l e d S t e e l f a c t o r y i s t h e u r g e n t p r o b l e m thatneedstobesolvedimmediately.Ther ewillalwaysbeanunavoidablenumberofemployeesleftcompanyatonetime,butthisnumbershou ldbemaintainedataminimumlevel.Aftercomparing costswithlongtermbenefits,one of actionthatVinaOneshouldtakei m m e d ia t e l y istor e v i e w q u a l i f i c a t i o n o f s u p e r v i s o r s t h r o u g h e v a l u a t i o n p r o g r a m totrainsupervisor.
RolledSteelemployeesincludingsupervisorsandworkerstodoth e assessmentt h r o u g h i n i t i a l e v a l ua t i o n p r o g r a m provided byaB o a r d including HumanResourc esDepartmentofVinaOneandanindependentHumanResourcesCon su lt in g co mpany.T h e p u r p o s e o f t h i s assessmenti s t o h e l p employeesu n d e r s t a n d a c o m p r e h e n s i v e r e v i e w o f t h e i r strengths,weaknesses,errorsintheevaluationproce ssmadebysupervisor‟sbiases.
Table2asbelowisanactionplantimelinewhichtake06monthsfromDecember2016toJune2017andwillbereviewedattheendoftheyear2017.
HR,Independenthuman resourcesconsultingco mpany,supervisors
-Re-evaluateaneffectivetrainingprogramand re-open newcourseifnecessary.
Providingpr actices,s o f t s killsandtool stoimprovei nternalcom municati on s intrainingp rogram
-Continuouspracticeimprovement HR,supervisors,employ ees
(*)AllactivitiesareorganizedatVinaOneheadquarters-NationalRoad1A,VoiLaHamlet,LongHiepCommune,BenLucDistrict,LongAnProvince.
CONCLUSION
Ins u c h a t r a d i t i o n a l c o u n t r y a s V i e t n a m , f o r m e r l y k n o w n f o r t h e c o n c e p t o f l i f e l o n g e m p l o y m e n t , there ha ve beensomedramatic cha nges People are n o t alwaysexpected tostaywiththeirorganizationsforyearslikebefore.Ontheotherhand,thehighturnoverratea t co mpaniesinheavyindustryhasbeenrisingasanoutstandingproblemwhichshouldbes o l v e d a s s o o n a s p o s s i b l e T h i s studywitht h e t o p i c “ T u r n o v e r r a t e a n d p e r f o r m a n c e appraisal b iasesfroms u p e r v i s o r s i n V i n a O n e M a n u f a c t u r i n g C o r p o r a t i o n ” h a s clarifiedsomepointsasbelow:
Secondly,therearemanyreasons leadingtotheturnoverintentionofworkersatHot- RolledS t e e l factorysuchasjobsafety,performanceappraisal,errorsinrecruitmentp rocess,etc.H o w e v e r , itcanbeseen thatthebiases fromsupervisorsonperformanc eappraisal isthe maincause.
Thirdly,somesolutionstoimprovetheperformanceappraisalbiasesfromsupervisorshaveb e e n examinedbyconsideringtheirbenefitsandcosts.Finally,thesolutiontotrainsupervisorsc ouldbeprioritizedtoimplementinVinaOnewithminimizedcostsandhaveap r o f o u n d impacto nchangingthecurrentsituation.
To address the high turnover rate at VinaOne and similar companies in heavy industry, immediate actions are recommended to mitigate biases from supervisors This study faced time constraints, limiting the scope of investigation and sample selection, which hindered a comprehensive exploration of the subject Additional time for literature review would have enhanced understanding and potentially influenced conclusions Future research should focus on workers' perceptions and expectations regarding career development, as well as the relationship between leadership styles and employee performance.
SUPPORTINGINFORMATION
Twotypesofdatawerecollectedinthisthesis.Firstly,secondarydatawascollectedfromso mer e l i a b l e s o u r c e s s u c h a s t h e r e p o r t ofHumanR e s o u r c e s d e p a r t m e n t -
V i n a O n e , r e l ev an t o n l i n e l i t e r a t u r e s , managementb o o k s a n d o t h e r j o u r n a l s , r e s e a r c h e s , e t c w h i c h strengthenthetheoryandconclusionswhencomparedtowhatthein tervieweesmentioneda n d t h e r e a l s t a t u s i n V i n a O n e recently.Secondly,p r i m a r y d a t a isc o l l e c t e d t h r o u g h conductinga q u a l i t a t i v e r e s e a r c h T h e mainmethodf o r collectingq u a l i t a t i v e d a t a i s i n - d e p t h interviews.Theserespondentsarecategorizedinthreemaingroupsasfollows:
Thepurposeoftheinterviewistocollectgeneraldataandopinionsofintervieweesabouttheturnoverr ateinVinaOneaswellasitscausesandtheirsuggestedsolutions.Allq u e s t i o n s thatrespondents ineachgrouphavebeenaskedasfollows:
2 Explorethecauseofhightur nover rateanddefinet h e mainrea son
1 Couldyoupleaseintroduceaboutyourself(yourname,age,workingex perience)andthepositionyouareworkingin? X X X
5 Couldyousha re thereasonwhyyouwantedtoleavebutt he n decided tostay? X
Address:VinaOneSteelManufacturingCorporation(NationalRoad1A,VoiLaHamlet,LongHiepCommu ne,Ben LucDistrict,LongAnProvince)
NguyenLanNgoc:Myname‟sNgocandIhavebeenworkinginVinaOnefor7years,nowIamManagero f HumanR esourceDepartment.
TranThanhHoa:7yearsissuchalongtime.Iwouldliketo askyouthatwhy youhavestayedinVinaOnef o r longtimelikethis?Whatdoyoulikeordislikemostaboutyourcurrentposition?
NguyenLanNgoc:I f e e l t h a t VinaOneisa g o o d p l a c e t o worka n d providesmes t a b i l i t y a n d equalopp ortunitiestoemployees.Everyoneisfriendly,helpfulandwillingtoassistanywaytheycan.
NguyenLanNgoc:T o me,a s a personf r o m HumanResources,therearemanyissuesthatneedtoberesolveds u c h a s l o w productivity,traininga n d development,h e a l t h a n d safety,e t c Amongthem,highturnoverratei s thebi ggesto n e f o r myteam.Inr e c e n t years,theturnoverrateh a s increasedveryf a s t , especiallythegroupofworkersa tHot-RolledSteel.
NguyenLanNgoc:Iti s importantt o re- trainsupervisorsaboutinternalcommunicationprocessa n d softskills.Someimportantskillsarelistening,interacting a n d motivatingtheirworkers,whichw o u l d helpt o e a s e therelationshipbetweensupervisorsandworkers.
Trainingthecurrentsupervisorsisbetterthanhiringnewonesbecausetheorganizationalcultureisdifferenta t otherco mpanies,whichrequirestheemployeesandsupervisorstoadaptquickly.Thenewonesneedtohavetimetoadaptwit hthecompanyculture(leadershipstyle,workingbehaviors,superiorandsubordinaterelationship,internalprocess,etc. )Someworkersfeelhardt o workwithnewsupervisorsf r o m outsidebecauseoftheirbiases.
TranThanhHoa:Thankyouforjoiningthein- depthinterviewwithme.Couldyouintroducesomethinga b o u t yourselfandthepositionyouareworkingin?
Nguyen HoaiNam:Well,Ithinkthatworkers left
Therearefewofrewardprogramsforworkers,whiletherearemanyregulationsanddisciplines,theywillbefinedabout VND 200,000toeven1,000,000foreverysmallerror.
Workersarenotequippedwithadequateprotectiveequipment;manyof themfeelunsafeinthefactory.Theya r e oftenfacedwithsharpobjects,dangerousdustsucha s steelfragments,electri calsparksthatl e a d toinjuries.Manyworkerswereinjuredintheprocessofhot- rolledcutting.Therehavebeencasesofseriousinjuriesresultinginpermanentdisability.Astheyhavetofrequentlybr eathetoxicgasesintheworkplace,manyworkerssufferfromlungdiseasesandrespiratorytract.
TranThanhH o a : Goodmorning.Couldyoupleaseintroduceaboutyourself(yourname,age,workingexperience)a ndthepositionyouareworkingin?
RolledsteelfactoryinVinaOne.Iworked2yearsatHot-RolledSteelTVPfactory(VinaOne„scompetitors)andnow IhavebeenworkingatVinaOnesince2013.
TranThanhHoa:I wouldliket o inviteyout ojoint he in- depthinterviewtoexploremorereasonswhyworkerswanttoquitthejobHot-
TranNhatTan:Inmyopinions,thereasonswhyworkerleftfactoryarelackofsupportfromsupervisors,unclearjob description(misunderstandingandunsure)forworkers.Workersonlyfollowtheinstructionsoftheirsupervisorsand theirmonthlysalaryiscalculatedbasedonthenumberofdaysworkingandhowtheirsupervisorsevaluatethem.
TranThanhHoa:Hello.Thanksforacceptingtojointhein- depthinterviewwithme.Couldyouintroducesomethingaboutyourselfandthepositionyouareworkinginfirst?
NguyenThiThanhThao:Yes,mynameis Tha o I‟mcurrentlyinchargeof Hot-
NguyenThiThanhThao:Tome,thereare3reasonswhyworkersleftVinaOne:thefailuresinrecruitment,poorcareer developmentandteamengagement.
Theworkershavetherightstoknowtheirdetailedcareerpathsatthecompanybuttheywereunabletoreacht h e informa tionwhichwasonlytransmittedthroughtopmanagers.IadmitthattherearedeficienciesinthecommunicationfromB o a r d o f directortothedivisionbelow,especiallyworkers.Thiscouldleadtothemiscommunicationamong leadersandemployees.
Moreimportantly,rumorshaditthatthesupervisorcommittedafraudbypurposelygivingfalseormisleadinginformat iono r willfullyhidinginformationi n ordert o getbenefitss u c h a s employeer e w a r d policy,emulationprogram.
TranThanhHoa:Whatweresolutionsthatt h e companyh a s takentodecreaset h e numberofworkersleaving?
NguyenThiThanhThao:Animmediateactionshouldbetakentoreducethenumberofworkersquittingtheirj o b s b y buildinga suitabletrainingcourseandimprovingb i a s e s f r o m s u p e r v i s o r s o n performanceappraisal.How ever,VinaOneh a s notbeenfocusedo n theseactions.A supervisor,whoisnew- comerrecruitedoutsideorpromotedfromanormalworker,isnotwelltrainedaboutwhattheirresponsibilitiesandbenef itsare.Thisissuemakesthemfollowonlytheirheartswhenevaluatingothersanddisregardingthefairperformanceapp raisal.
TranThanhHoa:Couldyousharewithmesomesolutionst o dealwiththisissue?Whati s t h e bestsolution?Why?
NguyenThiThanhThao:Itwouldbenecessarytoprovidepracticesand toolstoimproveinternalcommunications.Ith e l p s increaseefficiencyo f operationthroughcreatingo p e n l i n e s o f communicationbetweensupervisorsandemployeesthatmakepositivecultureoffeedbackandimprovement.
TranThanhHoa:FirstlyI wouldliket o thankyouf o r acceptingmef o r thisopportunitys o thatI c a n exploret h e re asonwhyworkerslikeyouwantt o leaveVinaOne.Couldyouintroducesomethingaboutyourselfandthepositionyoua reworkingin?
3 monthagoafter1 yearworking.Now,I lovemynewcompanyc ulture,mysupervisor‟smanagementstyleandthewo rkingenvironmenthere.
TranThanhHoa:Isee.CouldyousharewhyyoudecidedtoleaveVinaOneandwhyyoufeelsatisfiedinT V P Manu facturer?
NguyenTuongVi:IdecidedtoleaveVinaOneafter1yearworkingbecauseofbadworkingenvironment,l a c k oflif einsurancelackofreward,recognitionandunfairpaywhicharethesameproblemtomanyotheremployees.Reheatin gfurnacedepartmentis themostdangerousworkplacebutIh a d n o employmentinsurance.Inaddition,myperformanceappraisalsdependedmuchonmysupervisorbias.Iwaswill ingtoworkhardaslongastogainbettersalaryandbenefitbutmyeffortswerenotpaidoff.
TranThanhHoa:Goodafternoon,t h a n k youf o r j o i n i n g withmei n theinterviewtoday.Couldyouintroduceso methingaboutyourselfandthepositionyouareworkingin?
RolledSteelfactoryfor6months.IjustquittedVinaOne 2monthsagoand now amlookingfor a newjob.
TranCaoThang:Well,manyworkershavebeensufferingpoorworkingconditionswithconsecutiveshifts,unfairwor kingassessmentandunansweredrequests.Manysupervisorsknowthatbuttheycan‟thelpthembecauseeachsupervi sorhasadifferentmanagementstyle.Someevenhavebiasesonhowtoevaluatetheirteam‟sperformancea n d onlys a y goodwordsf o r thosewhotheylike.T h i s negativelyimpactso n therelationshipsbetweenthemandtheirteam.
TranThanhHoa:Ifyoucouldhavetherightstochangethecurrentsituation,whatactionsyouthinkshouldb e takentos olvethisproblem?Whatisthebest solution?Why?
Mr.TranCaoThang:Ithinkthatifsupervisorswerewelltrained,theywouldhaveknownhowtoevaluatetheiremploy eesfairlyandconsideredthistaskasimportantasmanyothertasksassigned.Thiscouldhelpincreaseourtrustandea setherelationshipbetweensupervisorsandworkers.
TranThanhHoa:Goodmorning.Iwouldliketoaskyouaboutyourselffirst.Couldyoupleaseintroducealittlebitabou tyourself?
NguyenQuangHuy.Yes,sure MynameisHuy.Ihavebeenworkingfor VinaOne- Hotrolledsteelfactoryf o r 5years.
TranThanhHoa:I heardfromHRthatyouwantedtoleavein2015andthenyoudecidedtocomeback.Couldyous harewithmethereasonwhyyoudecidedtoleave?
NguyenQuangHuy:IhadintentiontoleavemyjobbecauseIhopedtoreceivehighsalaryforthehardanddangeroustas k.Unfortunately,Ididnotgoalongwellwithmysupervisorandallmyoutstandingcontributionswerenotrecognized throughalltheseyearswitht h e l o w salarywhencomparedwiththemarket.M y supervisoronlye v a l u a t e d myper formancebasedo n hispersonalbias.I wantt o changet o anothercompanywhichhasthebetterworkingenvironmentt hanVinaOne.
TranThanhHoa:I s e e Thisdemonstratesthatt h e evaluationofsupervisorhasbiginfluenceo n yourdecisiontolea ve.CouldyousharewithmethereasonwhyyoudecidedtostayatVinaOne?
RolledSteelfactorybecauseI t r u l y lovemyj o b a n d wantt o t r y anotherdepartmentwheretheworkplacei s safe ra n d myperformancei s evaluatedb y a n o t h e r supervisor.Inaddition,work- lifebalancei s a n importantproblemimpactingonturnoverintention,so
Group 1: Managers/supervisors/workers whoarecurrentlyworkingforVinaOne
Theweakeng agementinth eteam,lacko f supportfrom theirsupervis ors;jobdange r,harmfulnes s
Lack ofrewardsa ndrecognit ions ; lacko fworkplac esafetytool kit
Lack ofsupportfro msupervisor s;bias fromsupervi soron perfor mance appraisal(inc
Thefailuresinrecr uitment(inexperie ncedrecruiter,prio rityacquaintance); p o o r careerdevelopme nta n d teamengag ement.
Biasfroms upervisoro nperforma nceapprais al;jobdang er,harmful ness;lacko flife
Unfairwor kingassess ment(supe rvisorsaren ottrained); unanswere d requests; work- lifeunbala nce
Work- lifeunbalanc e(timepressu re,unhealthy lifestyles);la ck of supportfrom theirsupervis ors;unfair on supervisors)
;unclearjobd escription insurancel ack ofreward,r ecognition and unfairpay
) performance evaluation(b ase onpersonalbi as
2 Themainca usethatlea ds tohighturn overrate
Bias fromsupervi soron perfor mance appra isal
Biasfroms upervisoro nperforma nceapprais al.
3 Thesolutio nsthat thecompan yh a s curre ntlytaken
Building asuitabletrainingc ourse andimprovingbias esfromsupervisor so n performancea
Create a direct linebetween workers- topmanagers
Address:Vina OneSteelManufacturingCorporation(NationalRoad1A,VoiLaHamlet,LongHiepCommu ne,Ben LucDistrict,LongAnProvince)
TranThanhHoa:HelloMs.Ngoc,thanksforacceptingtojointhesecondin- depthinterviewwithme.Inyourpointo f view,couldyousharet h e mainreasonwhymanyworkersa t Hot-
NguyenLanNgoc:Oneofimportantreasonislackofsupportfromtheirsupervisors.Manyof themdecidedt o workforothersteelcompaniessuchasNguyenMinhSteelManufacturing&TradingCo.,Ltd,HoaP hatSteelJointStock Company,TVPSteelthoughtheseonesofferedlessattractivebenefits.
TranThanhH o a : Int h e previousinterview,yous a i d thattrainingt h e currentsupervisorsi s betterthanhiringnew ones.Couldyousharememoredetailsaboutthereasonwhyyouhavesaidthat?
Between April and August 2015, we recruited four new supervisors from other companies to replace the existing ones However, these new hires required at least 20 days to acclimate to our company culture and procedures Two of the new supervisors resigned due to the high-pressure environment and their struggle to adapt, compounded by a lack of engagement from their teams Replacing knowledgeable and skilled employees is costly, as seasoned staff possess valuable experience that minimizes training time for newcomers To enhance motivation and employee satisfaction, it is essential for team leaders at each factory to be promoted to supervisory roles, ensuring a clear career path.
Inaddition,VinaOneshouldorganizesocialevents,officetours,companyt r i p t o increaseemployees‟engagement.C urrently,theseactivitiesareconsideredasapplyforonlyofficersandnotyetextendedtoallremainingemployeesinclud ingworkers,duetolimitofbudget.
TranThanhHoa:Couldyous h a r e youropiniona b o u t t h e reasonwhyyoucommentt h a t biasfromsuperviso rsonperformanceappraisalisthemain reasonthatworkerswanttoquitthe jobatHot-RolledSteelfactory?
TranNhatTan:Firstly,worker‟sperformanceevaluationisbasedontheirsupervisor‟sperspectives.Therei s incon sistencyin the waysupervisorevaluatetheirteam.Afewworkershavegoodperformancebutarenotrecognizedbecausetheydon‟tha vegoodrelationshipwiththeirsupervisors.Supervisorshavethefullrightt o evaluatetheresultsoftheirperformance. ThemainreasonforthisproblemIthinkisthattheirvoicesaren o t reallylistened.
Secondly,DirectorsandHumanResourcesmanagerdonotcareabouttherealperformanceofworkers,theyo n l y ju dgebasedontheevaluationfromsupervisors.Manyworkerswouldliketoappealtheresultsofthisevaluationbut thereis nofeedbackforthem.
TranNhatTan:IthinkthattheproblemofKPIsdisconnectedfromjobdescriptions(assessmentcriteriaare“unsure”a ndsubjective)shouldalsobesolved.VinaOneshouldprovideeffectiveKPIsforbothworkerandsupervisorposition.
TranThanhHoa:Hello,Ms.Thao.How aboutyourbusinesssituationinrecentyear?
NguyenThiThanhThao:T h e businesssituationofmycompanyisprettygood.However,i ntheperiod2014- 2015,theprofitbeforetaxdecreasedslightlyoverthesameperiodduetoincreasedcosts.Thecapacityo f factoryreduc edfrom250,000ton/yearto160,000ton/ yearduetohighturnover,whichtakesthefactorymoretimetotrainnewworkers.Thisisoneofthecausesofhugewastes andlowprofitmargin.
TranThanhHoa:Inthepreviousinterview,yousharethatVinaOneshouldbuilttrainingcourseforsupervisortoimpro vebiasesfromsupervisorso n performanceappraisalbesidesprovidingpracticesandtoolstoimproveinternalcommu nications.Couldyousharememoredetailaboutthissolution?
Nguyen Thi Thanh Thao highlights a pilot training program for five supervisors who have demonstrated exceptional performance over the years Although this initiative is not yet extended to all supervisors, the results indicate its effectiveness, as a recent survey revealed that 71.5% of employees under the trained supervisors reported higher job satisfaction and improved working conditions Since 2015, there have been no employee departures or negative feedback regarding their supervisors However, the Board of Directors at VinaOne has not prioritized employee training due to challenges faced in the steel industry, resulting in a focus on cost-cutting rather than the importance of staff development.
NguyenTuongVi:Lackofreward,recognitionandunfairpayarethebiggestreasonwhy employeedecidedt o leaveVinaOne.Theinconsistentcareerpaths,severedisciplineaswellaspoorpromotionaloppo rtunitiesp u s h e d metoleave.Inmynewcompany,Iamtreatedfairly throughKPIsthataredependentonnotonly thesupervisor‟sperspectivebutalsotheevaluationofHRa nd topmanagers.Overall,I amsatisfiedwithmycurrentjob
TranThanhHoa:Int h e previousinterview,yousaidthatp o o r workingconditionsa n d unfairworkingassessment andunansweredrequestsarethereasonsthatmakeworkerswanttoleaveVinaOne.Couldyousharewithmemoredeta ilaboutthat?
Mr.TranCaoThang:Heavyworkloada n d lacko f supportfromsupervisorsleadingtothework-lifeunbalanceand lowengagementinteam.Allworkersarewellawareofthisfact,butwemustaccepttodothej o b astheirjobrisksbecaus ewedonotknowanyotherbetterjobtomove.Wecouldnotarrangetimeforb o t h workandfamilybecauseofthebu syworkingschedulefromMondaytoSaturday,8amto5h30pm.Inmanydays,wehavet o w o r k overtime( 3 t o 5 h o u r s / d a y includingSunday)i n ordert o keepu p withtheproductionprogress.
TranThanhHoa:Inthelasttime,yousaidthatVinaOneshouldprovidetrainingcourseforsupervisors.Thiscould helpenhancetherelationshipbetweensupervisorandworkersthatleadtoreduceturnoverrate.W h a t areyouropinio nsabouttheeffectivenessofabovesolutions?
Mr.TranCaoThang:VinaOneusedtohavetrainingclassesforagroupofsupervisors.Employeesofthetrainedsuper visorsalsoweremoresatisfiedintheirjobsthanagroupofworkerswhosemanagersdidnotundergotraining.However, thissolutionhassomelimitationsduetosomereasons:short- timetraining(only1 day),notyetextendedtoallremainingsupervisors,thetrainedsupervisorsdon'talwayshavetheab ilitytoshareeverythingwiththeiremployees.
Group 1: Managers/supervisors/workers whoarecurrentlyworkingforVinaOne
1 Themaincauset hat leads tohighturnoverr ate
Bias from supervisor onperformanceap praisal
Recruitment errors Lack ofreward,r ecognition and unfairpay
Provide practicesa n d toolstoi mproveinternalcom munications,training supervisors
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