BACK GROUND INFORMATION
Company information
AEON Group, established in 1758, is among the largest retailing organizations globally, comprising over 179 member companies across Japan and beyond With a rich history of over 250 years, AEON holds one of the longest traditions in the retail sector in Japan.
During its operation, AEON Group has kept the unchanging commitment to putting
AEON Group's core principle, "Customer First," emphasizes its commitment to fostering a prosperous, stable society and promoting peace through its retail operations This dedication to corporate responsibility has earned AEON Group widespread customer trust, enabling the company to expand its business not only across Japan but also throughout various countries in Asia over an extended period.
AEON Vietnam Co., Ltd has been operating in Vietnam since 2009, initially as a Representative Office before establishing its Vietnam Company Limited on October 7, 2011, with approval from the People's Committee of Ho Chi Minh City The company focuses on constructing and managing modern shopping malls, General Merchandise Stores (GMS), and supermarkets, while also engaging in import-export and research activities Currently, AEON has four branches across Vietnam, including the AEON Shopping Center – Tan Phu Celadon and AEON Mall Binh Tan in Ho Chi Minh City, AEON Shopping Center – Binh Duong Canary in Binh Duong Province, and AEON Mall Long Bien in Hanoi With a total charter capital of 192,383,000 USD and registered investment capital of 204,648,000 USD, AEON employs approximately 2,200 staff across its malls.
The internal structure one of the branch of company is showed in the graphic as follow:
Head of Human Resources Department Head of Sales & Marketing Department Head of Legal Department Head of Administration Department Head of Accounting Department Head of Purchasing Department
Team 1, 2, 3,…, N Team 1, 2, 3,…, N Team 1, 2, 3,…, N Team 1, 2, 3,…, N Team 1, 2, 3,…, N Team 1, 2, 3,…, N
Diagram 1 – Company structure of AEON Vietnam
Company symptoms
Providing meals for employees plays a crucial role in enhancing their energy, relaxation, and productivity This benefit is an integral part of employee compensation, receiving special attention from AEON's business owners At AEON, both full-time and part-time employees are entitled to enjoy this valuable benefit.
Supervisors are tasked with counting and reporting daily meal orders to the administration The leader then summarizes these figures and places orders with the industrial catering company, which prepares meals based on the reported numbers To manage meal costs effectively, AEON Vietnam empowers the Administration with this responsibility.
The Department oversees meal ordering and the Accounting Department tracks meal expenses Semi-annually, the Administration Department reports on meal cost management to the Board of Directors and relevant departments In the six-month meeting early in 2017, the Head of the Administration Department highlighted the rising meal costs for employees at headquarters and three branches.
1 2 3 4 5 6 of Y2017 The below table shows the situation of these months in Y2017 compared with the same period Y2016:
Table 1 – The average meal cost in 6 months early of Y2016 and Y2017 (The data was provided by
According to the Administration Department's report, AEON Vietnam experienced a significant increase in employee meal costs during the first six months of 2017, rising by 87.44% compared to the same period in 2016 Notably, while the total number of employees decreased, the average meal cost per person continued to rise This trend is illustrated in the accompanying chart.
Chart 1 - The changing in average cost per one employee in 6 months early of Y2016 and Y2017
(The data was provided by AEON Vietnam’s Administration Department)
PROBLEM IDENTIFICATION
Potential problems
In-depth interviews with key personnel, including the Head of Administration, team leaders, supervisors, and accountants responsible for meal cost management at AEON Celadon Tan Phu, AEON Binh Tan, Canary Binh Duong, and AEON Long Bien, reveal significant challenges in the current meal cost management situation These challenges contribute to rising meal quantities and prices, indicating a pressing need for effective solutions to address these issues.
1.1 Lack of experience to control situation:
In 2017, the meal costs for employees significantly increased despite a slight decrease in the workforce, with average expenses rising from 529,304.25 VND to 672,887.32 VND, marking an 87.44% change compared to 2016 Current staff lack the necessary understanding and experience to effectively address these rising costs, and there is a shortage of capable managers to oversee the situation According to the Head of Administration, the number of experienced managers at AEON is dwindling, with a turnover rate of approximately 10% per year, exacerbating the challenges faced in managing meal expenses.
To address the issue, the Human Resource Department must recruit new staff to manage costs associated with vacancies in the company However, the instability created by these new hires makes it challenging for them to identify and resolve existing problems Additionally, the lack of automated systems for order management means that meal calculations and forecasts rely entirely on manual processes, leading to inevitable inaccuracies in management.
1.2 The big gap between number of order meals and the actual meals:
AEON Vietnam boasts a professional team of chefs who prepare a variety of delicious and safe foods for customers at their delicatessen However, these chefs do not handle meal preparation for AEON employees Instead, the company partners with a third-party service provider for industrial catering Prior to lunch or dinner, store supervisors tally the number of employees dining each day, and this information is then compiled by the admin team leader and forwarded to the catering service for meal preparation.
The Head of the Administration Department at AEON Vietnam highlighted significant discrepancies between the ordered and actual meal quantities, attributing this issue to a lack of accountability among store supervisors and the administrative team This gap arises not only from insufficient oversight but also from daily fluctuations in employee numbers, particularly among part-time staff, which complicates accurate meal order predictions The high turnover and occasional unapproved absences of part-time employees further contribute to this variability A report presented during the mid-year meeting of 2017 detailed the extent of this problem across the headquarters and three branches, underscoring the challenges faced in managing meal orders effectively.
CELADON BINH TAN CANARY LONG BIEN
Ordering Actual Ordering Actual Ordering Actual Ordering Actual
Table 2 – The number of ordering and actual meals of head quarter and 3 branches of AEON Vietnam in 6 months early of Y2017 (The data was provided by AEON Vietnam’s Administration Department)
According to Table 2, the total surplus of meals over six months in 2017 for the headquarters in Celadon and three branches amounts to 6,845 units, with Celadon contributing 3,108 units, Binh Tan 576 units, Canary 261 units, and Long Bien 0 units Celadon - Tan Phu exhibits the highest surplus, accounting for 63.44% of the total Additionally, Binh Tan's surplus surpasses that of Canary in Binh Duong Province and Long Bien in Hanoi, representing 28.80% of the overall surplus Chart 2 illustrates the distribution of surplus meals across each branch and the headquarters.
Chart 2 – The number of surplus meal of AEON Vietnam in 6 months early of Y2017 (The data was provided by AEON Vietnam’s Administration Department)
The Head of Administration Department agreed that the cost managing system causes the difference between the rate of surplus meals of AEON Celadon Tan Phu, AEON
The cost management system in Binh Tan, AEON Canary Binh Duong, and AEON Long Bien Ha Noi emphasizes the importance of coordinating preparation and quantity checks A lack of coordination can result in surplus meals, leading to inaccurate meal reporting Notably, the effectiveness of this system is higher in AEON Canary Binh Duong and AEON Long Bien Ha Noi compared to AEON Celadon and AEON Binh Tan.
To address the issue of meal orders versus actual consumption at AEON Celadon and AEON Binh Tan, it is essential to gather insights from store supervisors and the admin team leader Store supervisors report that the fluctuating number of employees, particularly part-time workers, makes it challenging to accurately predict daily meal needs, leading to reliance on estimates rather than precise counts This inconsistency is compounded by a significant portion of employees ordering meals but not consuming them, with over 20% of orders going uneaten monthly, primarily due to dissatisfaction with the quality of the catering, which is often repetitive and low-priced Additionally, employees feel no obligation to cancel orders since they are not refunded for meals they do not eat The admin team leader noted that the catering company often inflates meal counts in their reports, further complicating the situation These factors contribute to a substantial gap between meal orders and actual consumption, highlighting the need for improved communication and accountability within the catering process.
Certain staff members of an industrial catering company are exploiting AEON to collect excess leftovers Consequently, the reliability of meal counts is contingent upon the catering company's practices, yet there is a lack of oversight from the administrative team to ensure the accuracy of the actual meals served.
The surplus figures for Canary Binh Duong and Long Bien Ha Noi are relatively low, representing only 5.34% and 2.42% of the total, respectively This indicates that the conditions in these areas are not as critical as those in other branches and the headquarters located in Ho Chi Minh City.
1.3 The increasing in cost for per one unit of meal:
The rising cost of meals is contributing to a decrease in the number of employees, as confirmed by the Accounting Department In the first six months of 2017, the cost per meal unit increased from 24,800 VND to 25,000 VND, including a 10% Value Added Tax This price hike is primarily due to the escalating costs of input materials for the industrial catering company.
To address the issue of rising meal costs at AEON Vietnam, it is essential to engage in discussions with relevant stakeholders The Head of the Administration Department highlighted the unresolved negotiations with the industrial catering company, which has led to increased costs per meal unit AEON Vietnam has opted to work exclusively with a single catering company, foregoing a competitive bidding process and failing to compare prices with other providers in the industry Consequently, this has resulted in the catering company charging higher prices than its competitors.
Theory informs and define the central problem
Effective cost management is crucial for a business's success, as failures often stem from poor capital management rather than a lack of financial resources By maximizing and efficiently utilizing resources, businesses can address shortcomings in various areas The importance of managerial roles in cost management cannot be overstated, as they make critical decisions that influence the organization's sustainability and growth Stiner Don E (1992) emphasizes that real cost control begins with a mindset from executive management Experienced managers, akin to cost engineers, play a vital role in overseeing various functions such as estimating, scheduling, and contracts management, which extend beyond mere cost control Their accumulated experience equips them to make informed decisions and avoid mistakes that less experienced managers might encounter Identifying experienced managers involves assessing criteria such as tenure, contributions, team size, and performance evaluations John Dewey (1938) highlights two key principles of experience: continuity and interaction, which further underscore the significance of experience in effective management.
This thesis highlights that the primary issues faced by AEON Vietnam Co., Ltd in Celadon Tan Phu and AEON Mall Binh Tan are the significant disparity between ordered meals and actual consumption, along with the rising cost per meal unit These challenges, particularly the increase in meal prices, are largely driven by economic factors and inflation, as outlined by John Maynard Keynes While the lack of experienced management can be addressed, it remains a central factor contributing to meal cost increases Conversely, the surplus meal problem is more complex, as employee dining habits and fluctuating staff numbers complicate meal order accuracy, making it challenging for the company to implement effective solutions.
CAUSE VALIDATION
Possible causes
The high turnover rate of senior managers at AEON Celadon Tan Phu and AEON Binh Tan, reaching 10% in 2017, highlights a significant issue in meal cost management due to a lack of experienced personnel This rate, which has increased from 8% in 2016, indicates that one in ten employees is leaving the company, posing a challenge for AEON Vietnam despite being lower than the retail industry's average turnover rate of 32.2% The instability in human resources is a common problem in the retail sector, which is attractive to candidates for its dynamic and creative nature, yet struggles with retaining talent According to a recent Mercer-Talentnet survey, the retail sector, along with real estate, faces the highest turnover rates in Vietnam, underscoring the urgent need for effective solutions to address this issue.
In 2017, a survey revealed that foreign companies experienced a higher turnover rate compared to Vietnamese firms, with consumer goods leading at 17.3% and trading trailing at 11.9% Notably, 60% of respondents indicated that the average tenure at retail companies is only 2 to 3 years, highlighting a trend of shorter employment durations in the industry.
To uncover the underlying reasons for this central issue, insights were gathered through interviews with the Head of the Administration Department, accounting staff, supervisors, and employees at AEON Vietnam locations including Celadon Tan Phu, AEON Binh Tan, Canary Binh Duong, and AEON Long Bien Several hidden factors have been identified.
Stress significantly hampers employee productivity at AEON Vietnam, primarily due to excessive workloads, high stress levels, and limited career advancement opportunities As a subsidiary of the AEON Japanese group, the company adheres to Japanese cultural practices, which can enhance employees' work skills but also contribute to overwhelming stress and workload A survey conducted by the Japanese government revealed that approximately 10.8% of 1,743 enterprises reported their employees working an additional 80 hours, highlighting the pressing issue of overwork within the organization.
A significant number of employees are working excessive hours, with 11.9% of companies reporting that their staff work more than 100 hours a month This trend is mirrored in AEON Vietnam, where 90% of senior managers from a survey conducted across various locations, including Celadon Tan Phu and AEON Long Bien, acknowledged the necessity of overtime The overwhelming workload faced by these managers often leads to heightened stress levels as they strive to meet deadlines and maintain productivity.
Chart 3 – The number of senior managers have to work overtime in Celadon Tan Phu, AEON Binh
Tan, Canary Binh Duong and AEON Long Bien (The data was conducted from survey in 2017)
At AEON Vietnam Co., Ltd, employees with potential strengths can be promoted, but opportunities for advancement are limited, particularly for Vietnamese staff Japanese nationals predominantly occupy higher positions and key roles within the Board of Directors, making it challenging for local employees to ascend the corporate ladder This structure reflects AEON's Japanese investment ethos, prioritizing control by Japanese personnel Consequently, many experienced managers have left the company due to a lack of opportunities to showcase their abilities and contribute meaningfully, as evidenced by survey results highlighting this issue as a primary factor in their departures.
Based on the above developing, the following initial cause and effect tree has been developed:
The increasing cost for meal
The failure in negotiation with industrial catering company
Lack of experience to control situation
The big gap between number of order meals and the actual meals
Not exact number of order meals
Not exact number of actual meals
Lack of responsibility of admin and supervisors
Not stable number of part time employees daily
Not check the actual meal quantity
Lack of responsibility of admin and supervisors
Not diverse kind of daily food
Diagram 2 - Initial cause and effect map Not good in meal’s quality
Theory informs and determine potential causes of the problem
According to Branham, Leigh (2005), the seven hidden reasons make employees leave:
Many employees enter the workplace with unrealistic expectations, often shaped by misconceptions about the job or misleading information received during the interview process This disconnect between expectations and reality can lead to dissatisfaction and disengagement in the workplace.
The common misconception that lower-level jobs require less skill can lead to a significant mismatch between the job and the person hired Employers often overlook the fact that excellence can be achieved in any role, making it essential to thoroughly evaluate candidates to ensure they possess the right qualifications and attributes for success, regardless of the position within the organization.
Many managers still rely on infrequent, annual performance appraisals for coaching and feedback, which is insufficient for employee development This outdated approach often fosters a parent-child dynamic, encouraging compliance rather than genuine commitment Additionally, some managers avoid providing corrective coaching due to the fear of confrontations, further hindering effective communication and growth within their teams.
Many younger top performers express frustration over the lack of advancement and growth opportunities in their workplaces When evaluating today's managers on their leadership skills, the ability to foster the development of their direct reports consistently ranks as one of the lowest competencies.
Feeling undervalued and unrecognized in the workplace can manifest in various ways, such as inadequate compensation, lack of appreciation for accomplishments, and disrespectful treatment Employees may experience frustration when their contributions are ignored or when their unique qualities are belittled Additionally, insufficient access to necessary tools and resources, along with an unacceptable work environment, further exacerbates these feelings of devaluation.
Stress from overwork and work-life imbalance.
Loss of trust and confidence in senior leaders.
Wu Lisa (1988) identified several key factors that lead corporate employees to resign, including limited opportunities for advancement, insufficient recognition, dissatisfaction with management, issues related to salary and benefits, and job boredom.
A 2017 survey by Talentnet and Mercer revealed that the retail industry in Vietnam has one of the highest turnover rates, with only 14.8% of employees receiving bonuses, compared to logistics at 12.5% and education at 9.6% This low reward structure makes retail employees more susceptible to offers from competitors, who often provide better incentives, leading to increased turnover in the sector.
The rising meal costs in Celadon Tan Phu, AEON Binh Tan, Canary Binh Duong, and AEON Long Bien can be attributed to several factors, including a lack of career opportunities, excessive workloads, and high stress levels Additionally, employees face issues such as inadequate recognition for their contributions, slow salary growth, diminished trust in management, and unchallenging job responsibilities, all of which contribute to the current challenges within AEON.
Misconceptions regarding job roles and mismatches between employees and their positions do not significantly impact a manager's decision to leave The following table illustrates the influence of various factors, based on survey data collected from management personnel at AEON Vietnam Co., Ltd The analysis includes calculations of Mean, Standard Deviation, and Coefficient of Variation derived from the survey results.
Loss believe in management way
Not recognized for 4.3 1.69 0.39 your contribution
Job duties boring/not challenge
Mismatch between job and person
Table 3 – The Mean, Standard Deviation and Coefficient of Variation of causes (The data was conducted from result of survey in AEON Celadon Tan Phu and AEON Binh Tan)
According to the data presented in Table 3, several significant factors contribute to the high turnover of experienced managers at AEON Vietnam Co., Ltd The primary reasons identified include a lack of career advancement opportunities (Mean = 4.5), insufficient recognition for contributions (Mean = 4.3), high levels of stress (Mean = 4.2), and excessive workload (Mean = 3.5) These four factors strongly influence the decision of experienced managers to leave their positions.
Many experienced managers leave companies due to limited career advancement opportunities For instance, the story of a former colleague in AEON highlights that despite having potential, he felt there were no pathways to higher positions, which are often reserved for Japanese employees in leadership roles This lack of promotion opportunities can lead to decreased employee satisfaction, as emphasized by Daria Ionova (2016), who notes that growth within an organization enhances self-esteem and recognition When employees perceive a lack of career advancement, it signals frustration and dissatisfaction, ultimately impacting their commitment to the company.
Senior managers often leave their companies due to stress and work overload, which disrupts their work-life balance While individual stress is not the focus of this discussion, workplace stress can arise from excessive workloads, isolation, long hours, toxic environments, limited autonomy, poor relationships, and lack of advancement opportunities (Banerjee Sudatta and Mehta Payal, 2016) Qureshi et al (2012) noted that perceived work overload correlates with increased stress and decreased job satisfaction In the case of AEON, 90% of respondents reported working overtime, with 70% stating they exceed 8 hours a day, indicating that managers are working beyond legal standards.
Experienced managers at Celadon Tan Phu, AEON Mall Binh Tan, Canary Binh Duong, and AEON Long Bien have left the company due to a lack of recognition for their contributions According to Maslow's hierarchy of needs, recognition is a meta need that sits at the top of the pyramid, highlighting its importance in motivation When individuals in high positions dedicate their talents to a company but do not receive appropriate acknowledgment, they often feel disappointed This dissatisfaction can lead to a lack of fulfillment in their roles, prompting these managers to seek new opportunities elsewhere.
AEON Celadon Tan Phu and AEON Mall Binh Tan face several challenges contributing to employee turnover, including insufficient allowances for long-term employees and a low annual salary increase rate.
Lack of experience to control situationExperience managers quit job
The lack of recognized contributions among employees at AEON Vietnam leads to a mere 5% increase in total salary for those with over a year of service A significant factor contributing to employee turnover is the erosion of trust in senior leadership, exacerbated by cultural differences between Japanese managers and their Vietnamese counterparts These differing management styles often result in conflicts and misaligned problem-solving approaches, prompting many employees to resign, while those who remain experience decreased job satisfaction Although this thesis acknowledges these issues, it focuses on other factors, noting a low average salary increase rate of 2.9 and a loss of confidence in management practices rated at 1.7 The accompanying diagram illustrates the primary causes of this central problem.
Based on the previous initial cause and effect map and the above developing, has been developed updated cause and effect map as below:
Overload working Lack of experience to control situation
The increasing cost for meal The increasing quantity Experience managers quit job
Lack of recognized and valued contribution
Diagram 4 - The updated cause and effect map
SOLUTIONS
The money solutions
The Head of the Administration Department emphasizes that promoting employee benefits is a top priority, as adequate compensation and recognition are crucial for rewarding contributions to the company Encouragement plays a vital role, particularly for self-motivated top performers who thrive on praise and rewards To foster ongoing motivation and innovation, it's essential to review compensation and benefits packages at least annually, especially since the current salary increase rate of 5% is below industry standards Compensation should encompass hourly wages or salaries, bonuses, incentives, and benefits like health coverage, disability insurance, and retirement contributions Additionally, attractive benefits such as international holidays or health check-up packages can enhance employee satisfaction Notably, the retail sector offers the lowest bonuses in the industry, with a bonus rate of only 14.8% compared to 22.1% in finance, contributing to high turnover rates in retail.
32.2 % It shows the important role of bonus, reward and compensation and needs focus on it.
To effectively address employee overload and stress, organizations must implement policies that promote time off for recreational activities, such as visiting friends, engaging in sports, or pursuing personal hobbies Achieving a healthy work-life balance is essential, as excessive work hours can be counterproductive; a Stanford University study indicates that productivity significantly declines after 50 hours of work per week, with performance dropping to zero at 55 hours If overtime is unavoidable for high-performing employees, offering additional benefits like bonuses and promotions can incentivize and reward their efforts Greg Melikov (1997) supports these strategies for reducing stress in the workplace.
Get up on time so you can start the day unrushed.
Say no to projects that just won't fit into your schedule and will compromise your mental health.
Delegate tasks to capable colleagues.
Allow extra time to do things and get to places.
Make friends with happy, nonstressed people.
Carry a paperback with you to read while waiting in lines.
Listen to relaxing tapes while driving to and from work.
Laugh and then laugh some more.
Take your work seriously, but yourself not at all.
The money – free solutions
Retaining experienced managers requires a different approach than that used for senior employees These managers seek opportunities to express themselves and demonstrate their value within the organization It is crucial to communicate their significant role in the company's success and to involve them in decision-making processes that align with management strategies AEON Vietnam should acknowledge their contributions and provide a clear vision for the future, as experienced managers desire to understand their potential career paths and how to achieve them Unlike lower-level employees who prioritize salary, seasoned managers are more focused on opportunities to showcase their skills and talents.
To foster personal development, companies must create a supportive environment that encourages managers to showcase their skills By investing significantly in development and motivation, organizations can cultivate a culture where employees feel valued and engaged This positive atmosphere not only nurtures talent but also reduces turnover, as employees are less likely to leave when they see ample opportunities for growth within the organization.
The recruitment new managers
Recruitment plays a crucial role in human resource management, directly impacting a company's ability to secure high-quality staff essential for its survival and growth By effectively recruiting talented individuals, companies can ensure they have the right people in place to manage operations When organizations hire the right candidates, they not only enhance cost control but also make strategic decisions that improve overall company performance.
The recruitment new employees depends on specific need of each companies and the purpose of companies Hence, it is not the same between the different business period.
AEON Vietnam is currently facing challenges in meal cost controlling due to a shortage of experienced managers To address this issue, the company should prioritize recruiting new managers with the necessary expertise and skills to effectively manage meal costs.
ACTION PLAN
Plan A: Retain the current managers
Recognizing employees for their contributions fosters a positive work environment, making rewards essential for reinforcing good behavior While initial investment in employee rewards may seem costly, the long-term benefits can significantly reduce overall expenses Ultimately, the equation for successful employee rewards can be summarized as: Right People + Right Rewards = Right Results.
To do this, it is necessary to set up the process for a Recognition and Reward System, which includes 7 steps:
Step 1: Choose the elements/ requirements for process
Step 2: Select the right person
Step 3: Select the right rewards and estimate the budget
Step 6: Evaluating and improving process
Step 7: Providing in the future
This Recognition and Reward System can be both tangible and intangible awards that everyone can earn and that everyone enjoys them.
Step 1: Choose the elements/ requirements for process
In the first step, the company has to measure current Recognition and Reward System.
To enhance the effectiveness of its system, AEON must identify both its strengths and weaknesses By leveraging its strong points, AEON can foster growth, while addressing and mitigating any weaknesses is essential for improvement To uncover these weaknesses, AEON should gather insights through targeted questions.
Are you pleased with your company’s current situation?
Does AEON have any congratulatory parties or other events to thank for employee’s contribution?
Could you tell some reward that you got, please?
Is the reward value to you?
If you have power to make changes current system, what will you do?
Based on this data, company can analyze weakness of current Recognition and Reward System, which employees are not happy with this.
Step 2: Select the right person
The goal of this step is to identify the ideal candidate who can make significant contributions to AEON Selection can be based on the company’s annual performance evaluations or by establishing a scoring system for employees AEON must ensure that the selection process accurately identifies the most suitable individual.
It needs to identify the criterias to select the right people Questions to be asked to support for finding the criterias as below:
Who is in a role to influence the company?
What are some of the characteristics you would like to see in a person who have the good contribution for AEON?
What specifically will you require of your selected people?
Who are the person with good recognition in AEON?
Step 3: Select the right rewards and estimate the budget
Choosing appropriate rewards is a crucial aspect of the Recognition and Reward System after identifying deserving employees These rewards should align with employees' needs and expectations while remaining within AEON's budget Additionally, the cost of these rewards can be deducted from the company's taxable income, allowing AEON to reduce tax liabilities while motivating employees to enhance their contributions to the organization.
Position Current system Planning system Different expenses
Director A car Award certificate + A car Award certificate
A trip in the other countries
Award certificate + a trip in the other countries or heal check - up package for member in family
Team leader A trip in Vietnam 1 monthly salary Estimate 7 million
Supervisor No 1 monthly salary 1 monthly salary
Table 4 – The rewards per year
In February 2018, AEON will initiate the implementation of its Recognition and Reward System, allowing individuals to understand, test, and evaluate the newly designed process.
In March 2018, AEON implemented a Recognition and Reward System, leveraging existing employee assignment records to facilitate the selection process for deserving individuals.
Step 6: Evaluating and improving process
AEON should establish an evaluation mechanism to assess its processes, recognizing that meaningful change requires time to yield results Implementing an effective Recognition and Reward System will not only enhance employee motivation but also aid in promoting talent and reducing turnover rates.
Evaluating is a meaningful step to find out the mistake Based on the result of valuating, AEON can fix the mistake of this system or develop strong points.
Step 7: Providing in the future
To ensure the successful implementation of future processes, AEON must develop a strategy that effectively reminds individuals and departments to utilize the Recognition and Reward System, while discouraging reliance on outdated methods.
Plan B: Recruiting the new managers
The departure of experienced managers has led to a shortage of skilled leadership in managing meal costs, highlighting the necessity to recruit qualified individuals with adequate experience and capabilities To enhance efficiency and maintain consistency in the recruitment process, it is essential to follow a structured approach.
When an employee leaves a company, replacing their role is essential, necessitating a clear understanding of the recruitment goals to attract qualified managers with relevant experience The hiring process for experienced managers is often more challenging than for regular employees, as these candidates may currently be employed at other firms To entice them to join AEON Vietnam Co., Ltd., it's crucial to create compelling job offers that highlight the benefits of switching jobs Additionally, it's important to assess any necessary adjustments regarding job responsibilities, required skill levels, work hours, and benefits to ensure a successful recruitment strategy.
A well-crafted job description is essential for an effective recruitment process, serving as the foundation for interview questions, evaluations, and reference checks It should clearly outline the roles and responsibilities of the position, the necessary skills, important personality traits, and relevant experience that can set candidates apart Key components of a job description include general information, the purpose of the position, essential job functions, minimum requirements, and preferred qualifications.
The recruitment plan, endorsed by the Board of Directors and Human Resources, outlines strategies for attracting and hiring highly qualified candidates Key elements include the posting period, placement goals, advertising resources, diversity agencies, and resume banks Candidates will be sourced both internally and externally through job postings on internet job boards, social media, local and national publications, and other print advertisements Additionally, job fairs and professional conferences serve as opportunities to engage with candidates directly while promoting AEON’s brand and image.
To minimize personal bias in the selection process, a diverse selection committee is formed to evaluate applicants for interviews and final consideration Human resources managers will appoint members who will interact with the applicants during their roles, ensuring representation from various staff backgrounds Special efforts are made to include under-represented groups and women, providing equal opportunities for participation on search committees.
Step 5: Review applicants and develop short list
Once the job position is advertised, candidates will submit their applications, which must be thoroughly reviewed by the committee After evaluating the feedback from all committee members, a shortlist of candidates will be created for interviews If this shortlist does not reflect the desired diversity in alignment with the company's objectives, the process will revert to the candidate search phase to identify more suitable applicants.
The interview is a crucial step in the selection process for AEON Vietnam Co., Ltd, allowing both the company and prospective employees to gain valuable insights about each other It is essential that interview questions are tailored to the position, focusing on the specific skills and abilities required for experienced managerial roles Candidates must demonstrate their capability to take on high-level responsibilities effectively.
The selection process involves identifying the most suitable candidates based on the job description and making informed decisions to select those who will be offered the position Following this, the Human Resources Department takes charge of preparing and dispatching offer letters to the chosen candidates.
Comparison and selecting action plan
After reviewing the two action plans, it is crucial to choose the one that best aligns with the current circumstances of AEON Vietnam Co., Ltd Assuming that the basic salary remains the same for both current and new managers, increasing the seniority allowance rate from 5% to 10% of the total basic salary will have a significant impact The estimated monthly cost comparison per individual is outlined below.
Plan A - Retaining the current managers
Plan B - Recruiting the new managers
Table 5 – The estimated cost comparison between Plan A and Plan B
A cost comparison between Plan A, which involves retaining current managers, and Plan B, focused on recruiting new managers, reveals a significant difference of 11,000,000 VND, indicating that retaining current managers is more cost-effective Additionally, existing managers possess a deep understanding of the company's operations due to their long tenure, which allows for quicker and more effective decision-making In contrast, hiring new managers necessitates training and adjustment to the work environment, and there is always the risk that they may leave after the probationary period, resulting in wasted resources on training and recruitment Therefore, Plan A—retaining current managers—presents a more viable and efficient option for the company.
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INTERVIEW GUIDE
All the in-depth interviews are conducted by talking face to face with each other Interview time is about from 20 to 30 minutes per one interview.
We are seeking interviewees from the Administration Department and related positions at AEON Vietnam, specifically individuals who have been directly involved in managing meal cost activities.
The purpose of these interviews is to explore the methods for managing meal quantities for employees at AEON Vietnam, while also examining the perspectives of managers, administrators, supervisors, and individual employees, as well as the industrial catering company This investigation aims to identify potential issues and uncover their underlying causes.
The major interview questions were contributed for this research showed as below:
A Interviewee’s information: name and position in the company
1 Could you introduce yourself and your position in company, please?
2 How long have you worked in AEON Vietnam?
3 Could you tell me something about your daily work, please?
B The current situation/problem in your work:
1 As you know, in this morning semi-annual general meeting, you have already mentioned the increasing in meal cost for employees in headquarter and 3 branches in
6 months of Y2017 Could you describe it in detail?
2 How long has this problem began?
4 Does it occur in all branches? PROMPT: What is difference?
1 What does cause the cost of meals increase?
2 Anything else that makes increasing in meal cost?
3 Based on what you have found, what is the main cause make increasing of meal cost?
4 What are the causes that are difficult to solve them?
D Discussion about proposal for the future:
1 With the current situation, do you intend to solve it?
2 How about the effectiveness of other solutions? What do you think?
3 Would you arrange of efficiency of the solution based on priority?
1 Anything else do you want to share with me?
2 Can I contact you again whenever more questions arise?
3 Thank you for your supporting.
4 Goodbye and see you later.
TRANSCRIPT
Location of interview: at AEON Mall Vietnam, Tan Phu District, Ho Chi Minh City, Vietnam.
Interviewer: Good afternoon, my name is Thien Now I am working as a staff in Administration Department of AEON Vietnam Could you introduce yourself and your position in company, please?
Thuy, the Head of the Administration Department at AEON Vietnam since 2016, has a long-standing career with the company, having first joined in 2012 as a store leader before advancing to her current role.
Interviewer: Could you tell me something about your daily work, please?
Interviewee: I am responsible for doing all tasks, which are related to administration activities I solve the cost problem in company.
During the semi-annual general meeting this morning, the interviewer highlighted the rising meal costs for employees at the headquarters and three branches over the past six months of 2017, requesting a detailed explanation of this increase.
In early 2017, a notable issue arose as the total number of employees experienced a downward trend over six months, while simultaneously, the average meal cost per person continued to rise This presents a pressing problem that needs to be addressed.
Interviewer: How long has this problem began?
Interviewee: It has being in 6 months early of Y2017 The meal cost of Y2017 is higher than its Y2016.
Interviewer: How does it trend?
The company is facing unresolved issues with its meal expenses, as the budget for employee meals has significantly increased despite the number of employees remaining constant This indicates a problem with controlling meal costs for staff.
Interviewer: Does it occur in all branches?
Surplus meal quantities have slightly increased in the Canary branch in Binh Duong and the Long Bien branch in Ha Noi, with rates of 5.34% and 2.42%, respectively These increases are within acceptable limits, as detailed in the report.
Interviewer: Yes, I see But the rate of Celadon and Binh Tan is too high.
Interviewee: Yes, I am also in trouble with it now.
Interviewer: Why does it have the differences between Celadon, Binh Tan and
The interviewee acknowledges the complexity of the question, indicating that they are actively exploring the underlying causes of the differences observed They conclude that the fewer employees at Canary – Binh Duong and Long Bien – Ha Noi allow for easier meal quantity management compared to Celadon and Binh Tan Additionally, they note that the cost management systems in Canary – Binh Duong and Long Bien – Ha Noi are more effective than those in Celadon and Binh Tan.
Interviewer: You said the cost managing system What is this?
Effective coordination in meal preparation and quantity checking is essential; without it, there is a risk of surplus meals being produced, which can result in inaccurate meal reporting.
Interviewer: How this coordination happened?
The company relies on a third-party service for industrial catering, where supervisors count and report daily employee meal numbers to the admin team The admin team then summarizes this data and sends it to the catering service for meal preparation However, due to insufficient oversight from the supervisors and the admin team in verifying meal quantities, there is a significant discrepancy between the number of meals ordered and the actual meals served.
Interviewer: Why do not you set up the better management way to avoid the deviation?
The limited number of experienced managers at AEON poses challenges in establishing an effective management system, as their role is crucial in guiding organizations and problem-solving Experienced managers can swiftly address difficulties by leveraging their accumulated knowledge, making it essential for the company to cultivate a robust leadership team to navigate challenges effectively.
Interviewer: Why do you said that the number of experienced managers in AEON is small?
The current staff lacks the necessary experience to effectively address problems as they arise, leading to a growing trend of experienced managers leaving their positions This situation contributes to a turnover rate of approximately 10% annually.
Interviewer: Do you know why they leave job?
An interviewee shared insights about career advancement in AEON Vietnam, highlighting that opportunities for promotion are limited for Vietnamese employees His friend, a former human resource manager, recently left the company due to a lack of high-level career prospects While employees can be promoted based on their performance and potential, key positions in the Board of Directors are predominantly occupied by Japanese individuals, making it challenging for local staff to ascend to these roles.
Interviewer: Are there have any reasons for leaving job?
Interviewee: Uhm… In my opinion, may be overload working, stress They can make employees want to quit job.
Interviewer: Come back to the problem, which I asked you before a little bit In your opinion, besides increasing the number of meals, what does cause the cost of meals increase?
The price of a meal unit has seen a slight increase, rising from 24,800 VND to 25,000 VND compared to the same period in 2016, making it a significant factor to consider.
Interviewer: Why does it have this increasing in price?
Due to unsuccessful negotiations with the industrial catering company, our organization lacks leverage in discussions, resulting in the catering company proposing a higher price.
Interviewer: Why do not we choose the other industrial catering company?
Interviewee: This is the decision of general director We do not bid to determine the industrial catering company but design the fixed company.
Interviewer: Anything else that makes increasing in meal cost?
Interviewee: Uhm, I am also in the process of finding out the reasons Hope that there are more deep causes will be found as soon as possible.
Interviewer: Based on what you have found, what is the main cause makes increasing of meal cost?
Determining the primary cause of rising meal costs is challenging, as various factors contribute to the issue, each with its own consequences While some causes can be addressed, others remain difficult to resolve.
Interviewer: What are the causes that are difficult to solve them?
The negotiation failure with the industrial catering company remains unresolved, as the decision ultimately lies with the general director Instead of bidding to select the catering company, we are tasked with designing a fixed partnership, leaving me unable to influence the general director's decisions.
Interviewer: With the current situation, do you intend to solve it?
SUMMARY OF TRANSCRIPT
QUESTIONS Trans 1 Trans 2 Trans 3 Trans 4
A Interviewee’s information: name and position in the company
Name Thuy An Tram Chi
1 Could you introduce yourself and your position in company, please?
Team leader in Administration Department
2 How long have you worked in
Vietnam was found until now
3 Could you tell me something about your daily work, please?
All tasks, which are related to administration activities and solve the cost problem in company
Making work permit in Vietnam for foreign employees and controlling system to booking air tickets and ordering meals, checking actual meals for employees
Check the goods and ordering meals for employees
Making financial report, taxation and write down transactions, which are related to company
Summary All of interviewees are the employees of AEON Vietnam and they are related to controlling meal cost
B The current situation/problem in your work:
1 Could you describe the increasing meal cost in detail?
Although the total number of employees has trend decreasing in 6 months early of Y2017, the average cost per person for meal is increasing
The gap between quantity of order meals and actual meals
Some of employees ordered before but after that, they do not eat meals
The total number of employees has trend decreasing in 6 months early of Y2017, the average cost per person for meal is increasing
2 How long has this problem began?
N/A Started in 6 months early of Y2017
The number of employees does not increase but the cost for meal increased
4 Does it occur in all branches?
Yes Yes Do not know about other branches
Less the number of employees and the better cost managing system
Better controlling system and have a machine for counting the number of employees
N/A The effective of cost managing system
Summary The current situation of AEON Vietnam is the increasing of average cost per person for meal
1 What does cause the cost of meals increase?
The experience managers quit job more and more
Employees order meals but they do not eat meals
Some of employees ordered before but after that, they do not eat meals
The increasing in price of one of unit meal
PROMPT: Why? No career opportunities
The bad quality of industrial catering
The bad quality of industrial catering
The failure in negotiation with industrial catering company
Stress Low price No refund money if they do not eat meals makes them feel free to order
2 Anything else that makes increasing in meal cost?
That’s on Not stable number of part time employees daily
Lack of responsibility of admin and supervisors Although our company has the canteen and it has surplus food, our company hires the industrial catering company
PROMPT: Why? The failure in negotiation with industrial catering company, no bidding
The food hygiene and safety
3 Based on what you have found, what is the main cause make increasing of meal cost?
Difficult to determine the main cause make increasing of meal cost
Lack of controlling in checking number of actual meal
Employees order meals but they do not eat meals
Lack of responsibility of admin and supervisors
4 What are the causes that are difficult to solve them?
The failure in negotiation with industrial catering company, no bidding
Controlling the number of order meals and actual meals to minimize the number of surplus meals
Employees order meals but they do not eat meals
Lack of responsibility of admin and supervisors
The article highlights several key issues affecting the situation, including a flawed control system, unsuccessful negotiations with the industrial catering company, and significant price hikes that have created a stark contrast between the number of meals ordered and the actual meals served.
D Discussion about proposal for the future:
1 With the current situation, do you intend to solve it?
Develop the ordering and counting process
Use a counter machines to know exactly the actual number of meals
Assign tasks to staffs to control the number of employees who will eat or not
The role of management should be strengthened
Need an experienced management team
Have more power in deal price of unit meal with the industrial catering company
Choose catering companies by using the bidding
2 How about the effectiveness of other solutions?
One of solution has its own benefits
Conflict between improving meal quality means increasing costs and find solutions to reduce the cost
3 Would you arrange of efficiency of the solution based on priority?
Promoted and benefit policy for employees
Controlling system to identify the right employees who register but not eating
Improve the power of AEON’s negotiation
Improve the quality of meals
Summary Setting a tight controlling system; Use a counter machines; Improve quality of meals and Improve the power of AEON’s negotiation
1 Anything else do you want to share with me?
That is all That’s on Not at all Not at all
2 Can I contact you again whenever more questions arise?
Yes of course Ok Yes of course Yes, I am pleasure
Summary All of interviewees are willing to answer the question later
QUESTIONNAIRE
THE FACTORS AFFECT EMPLOYEES QUIT JOB IN AEON CELADON AND CANARY
This research aims to identify the factors influencing employee turnover at AEON Vietnam locations in Celadon Tan Phu, AEON Binh Tan, Canary Binh Duong, and AEON Long Bien We kindly request your assistance in gathering data for this study, assuring you that all information will be kept confidential Your contribution is greatly appreciated Thank you for your support!
I Personal and job position information:
3 How long have you worked in AEON?
1 How long do you work in a day?
2 Do you often work overtime?
3 Are you happy with your current job?
4 Do you intend to quit current job in AEON Vietnam to find the new job?
5 Which reasons make you intend quit current job in AEON Vietnam?
6 Arrange the piority reasons make you intend to quit current job in AEONVietnam (Notice: From 1 to 5 corresponding with increasingly important level)
5 Loss believe in management way
6 Not recognized for your contribution
7 Job duties boring/not challenge
9 Mismatch between job and person
7 Can you make some comments to solve these job problems in AEON Vietnam?
SUMMARY OF SURVEY
Based on answers are conducted from 10 respondents, who take part in make survey and are cost managers the result as below:
I Personal and job position information
Controlling meal cost Controlling gerneral cost
3 How long have you worked in
Under 2 years 2 years Over 2 years
Summary + Gender: 60% respondents are female and
40% male + All respondents are responsibility for cost managing in AEON Vietnam
+ More than half of respondents have only under 2 years work for AEON Vietnam Almost of respondents are managers and have under 1 year of experience
1 How long do you work in a day?
Under 8 hours 8 hours Over 8 hours
2 Do you often work overtime?
3 Are you happy with your current job? PLEASURE WITH JOB
4 Do you intend to quit current job in AEON Vietnam to find the new INTEND QUIT JOB job?
5 Which reasons make you intend quit current job in AEON
+ No career opportunities + Overload working + Stress
+ Low icreasing salary rate+ Loss believe in management way+ Not recognized for your contribution+ Job duties boring/not challenge+ Other reason
6 The reasons make you intend to quit current job in AEON Vietnam
No career opportunities Overload working
5 Loss believe in management way
6 Not recognized for your contribution
7 Job duties boring/not challenge
9 Mismatch between job and person
Low increasing salary rate Loss believe in management way
Not recognized for your contribution Job duties boring/not challenge Misconceptio ns about the work
Mismatch between job and person Other reasons
Summary There are four factors which have the highest
Mean: No career opportunities (Mean = 4.5); Not recognized for your contribution (Mean 4.3); Stress (Mean = 4.2) and Overload working (Mean = 3.5)
+ Make more opportunities + Recognize contribution + Give more reward
Based on information, which was collected from 10 participants, caculating the Mean, Standard Deviation and Coefficient of Variation (CV) of each factors based on the formulas as bellow:
In which: i : Sequence number of variables n : The number of attendees x : The value of variables
The Mean and Standard Deviation are essential metrics in data analysis The Mean represents the average value of a dataset, while the Standard Deviation and Coefficient of Variation indicate the degree of variability or dispersion within the numbers.
Loss believe in management way
Not recognized for your contribution
Job duties boring/not challenge
Mismatch between job and person
Based on the survey result, apply the formula of calculating Mean, Standard Deviation and Coefficient of Variation (CV), we have the calculating table as below: