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, exceeding the recrystallization temperature for steels Steelworkers typically need a high school diploma or equivalent, with apprenticeship opportunities available, emphasizing physical strength, dexterity, and stamina rather than advanced degrees According to Reiche et al., there are three types of service work: routine production services, in-person services, and symbolic-analytic services Routine production services involve repetitive tasks with employees compensated based on their working hours 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 the other two categories and focus on enhancing problem-solving and analytical 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 highly dedicated to their job, often leading to stress and imbalances in their personal relationships Positively engaged workers love their jobs and maintain a positive outlook, but their commitment can sometimes cause conflicts with family and health issues Enthusiastic workers enjoy their work and are diligent, though their output may not always be of the highest quality Relaxed workers experience minimal stress and maintain healthy relationships, contributing to a balanced work-life dynamic.
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).
According to the VinaOne Human Resource Department report, a significant factor contributing to employee turnover is performance appraisal bias, which accounts for 19% of the reasons employees leave the company This bias can negatively impact employee evaluations and overall job satisfaction Other factors, such as monotonous job duties, corporate culture issues, lack of career development opportunities, workplace relationship problems, and personal issues, were not frequently cited by employees as primary reasons for their departure In-depth interviews with employees, including Mr Tran Cao Thang from the Hot-Rolled Steel factory and senior worker Mr Nguyen Quang Huy, revealed that these factors were not top-of-mind concerns for most participants.
In 2015, research by Prendergast et al highlighted that supervisors can distort their opinions during performance appraisals, leading to significant issues The recruitment process may become inefficient if candidates fail to meet organizational requirements, and creating an effective performance assessment system proves challenging Poon noted 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 Additionally, Zimmerman et al found that supervisors' perceptions of employee performance significantly affect turnover intentions Khan further confirmed that employee satisfaction and commitment are negatively impacted by managerial biases, contributing to higher 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 According to Urbana and colleagues, job insecurity and ineffective organizational commitment negatively impact employee retention Statistics from the Human Resources Department at Vina One reveal that in 2015, there were 14 reported accidents in a 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 a lack of protective safety equipment Workers express concerns about safety levels in their jobs, leading to an increased intention to quit If the company does not 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 highlights a direct correlation between employees' communication satisfaction and their job performance and turnover intentions Effective communication encompasses discussions with supervisors, receiving company information, and obtaining personal feedback Min et al further emphasize that a lack of close personal interaction can diminish emotional attachment and loyalty to the organization, ultimately leading to higher employee turnover To mitigate this, supervisors should adopt a more objective approach in performance appraisals and engage with employees more frequently about 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 quickly Firstly, enhancing compensation for high-performing employees is a possibility, but it must be balanced with overall costs and benefits if applied company-wide Secondly, employees are motivated to work hard for higher incomes due to VinaOne's competitive compensation compared to firms like TVP Steel and Nguyen Minh Research indicates that perceived job desirability and ease of leaving an organization influence turnover rates Employees are less likely to leave if they see promising career prospects within the company However, this model lacks strong empirical support Ultimately, employees seek support from supervisors and fair performance evaluations to feel valued and reduce turnover intentions.
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 proper training in performance assessment and feedback, often relying on personal feelings rather than clear criteria Many supervisors are hired due to personal connections with HR executives, with little regard for their qualifications or leadership styles Some have no relevant experience in training or managing teams, having received only one day of training before assuming their roles The orientation and training programs are poorly organized and lack standardized documentation, resulting in negative outcomes when they begin their supervisory duties.
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 tailored to different types of workers, such as workaholics, positively engaged employees, enthusiasts, relaxed workers, disenchanted employees, and disengaged workers Effective leadership enhances employee satisfaction and retention, as workers are more likely to stay long-term when supported by good leaders Performance evaluations free of bias can further boost employee satisfaction, while organizations that prioritize job satisfaction can reduce turnover intentions Employees often feel distracted and experience negative emotions when job satisfaction declines Therefore, managers should engage with their employees regularly throughout the appraisal process, providing feedback on strengths and weaknesses to facilitate personal and professional growth.
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 expertise in a task tend to be less biased in their decision-making At VinaOne, some supervisors and managers evaluate employee performance based on personal biases, influenced by their feelings towards each employee To address this issue, implementing an annual 360-degree assessment for supervisors is recommended This assessment would incorporate feedback from line workers (30%) and current KPI results (70%) Supervisors scoring below 50 out of 100 would be replaced, while those scoring between 50 and 70 would undergo training to enhance their skills in employee management It is essential to carefully weigh the costs and benefits of these training options.
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 essential to incorporate feedback from workers, supervisors, and the HR department, ensuring a comprehensive evaluation that holds both parties accountable Open forums should be established for workers and top management to address mutual concerns, while direct communication channels, such as suggestion boxes and hotlines, can empower employees to reach out to management A critical issue is the disconnect between KPIs and job descriptions, which leads to subjective assessments; therefore, effective KPIs must be implemented for both workers and supervisors Additionally, a robust evaluation program should include second reviews and cross-comparisons to ensure fairness, with performance evaluations accounting for input from both supervisors (40%) and the HR department (60%) This dual approach aims to improve accuracy and fairness in appraisals, ultimately reducing turnover and enhancing organizational performance.
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 improving employee satisfaction and loyalty By gaining knowledge and skills through training, supervisors can better understand the significance of performance evaluations They also recognize that conducting fair evaluations is part of their responsibilities, with potential consequences for inaccuracies Research by Abuharris et al highlights that while training can facilitate positive change within an organization, its impact can be both direct and indirect When executed effectively, training can lead to increased profits, promotions, and new job opportunities Conversely, poorly conducted training can result in negative outcomes such as diminished credibility, decreased performance, and heightened conflict among employees.
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 employees, prioritizing the training of supervisors is essential This training program focuses on enhancing soft skills, leadership abilities, and knowledge management, while also providing performance evaluation practices and tools Ultimately, it aims to improve internal communication between leaders and employees, fostering a more effective workplace environment.
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.
Immediate actions are recommended to address biases from supervisors in order to reduce the high turnover rate at VinaOne and other heavy industry companies Due to time constraints, this study faced limitations that hindered a comprehensive investigation of the topic and the inclusion of more samples to support the findings Additional time for literature review would have enhanced the understanding of the subject and potentially influenced the conclusions drawn Future research should focus on exploring workers' perceptions and expectations regarding career development, as these factors significantly impact employees' intentions to quit Additionally, it is essential to determine the relationship between leadership styles and employee performance in subsequent studies.
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, four new supervisors were recruited from other companies to replace existing staff However, these new hires required at least 20 days to adapt to the company culture and procedures Two of them ultimately resigned due to high pressure and difficulties in acclimating to the culture and internal processes, as well as a lack of team engagement Replacing knowledgeable and skilled employees is costly, as seasoned employees bring valuable experience that streamlines training for new hires To enhance motivation and employee satisfaction, it is essential to promote team leaders within each factory to supervisory roles, fostering career advancement opportunities.
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 at the company, which has proven effective in enhancing their leadership skills A recent survey from the second half of 2015 revealed that 71.5% of employees under these trained supervisors reported increased job satisfaction, improved working conditions, and better leadership Since the program's initiation in 2015, there have been no employee departures or negative feedback regarding their supervisors Despite these positive outcomes, the Board of Directors at VinaOne has not prioritized employee training due to challenges in the steel industry, focusing instead on cost-cutting measures and undervaluing 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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