BACKGROUND INFORMATION
Company background
Founded in Thailand in 1963, Srithai Superware expanded to Vietnam in 1996, forming a joint venture known as Vietthai Industrial Plastic Co Ltd in Ho Chi Minh City In 2005, the company relocated its head office and factory to Binh Dương province Today, Srithai operates three factories in Vietnam, with two located in the southern region and one in the north.
Srithai has more than 20 year’s experiences in Viet Nam with 46 Injection Machines and 20 Compression Machines The capacity is plastic 2.500 Tons/year, beverage 8.000 Tons/year, household 500 Tons/year.
Srithai is one of the leading manufacturers and distributors of three products group below: Industrial Plastic Product, Food & Beverage Packaging and Melamine
Tableware They do business with huge giant in plastic industry such as GS battery, Pinaco, Suntory Pepsi, Sapporo, Jotun, etc…
The business vision of Srithai Vietnam Co Ltd is using quality products and services to achieve customer's complete satisfaction, thereby ensuring company profitability and sustained market growth.
Company symptoms
1.2.1 The method of scan symptom
The research started from researching KIP of Plastic sales department There are five group of products such as Original Equipment Manufacturer (OEM), Material
This thesis examines the Material Handling Equipment (MHE) sector, focusing on key products such as plastic pallets and containers, which are imported from Srithai Superware Thailand Since beginning trade in June 2015, Srithai Vietnam secured its first customer in early 2016 after a year of outreach Although the MHE group achieved its targets in 2017, data analysis revealed significant profit losses, prompting multiple meetings among the Sales, Purchasing, and Finance departments in early 2018 to identify underlying issues and develop corrective actions.
In the first half of 2018, a significant discrepancy emerged between the sales budget and actual revenue, affecting not only the MHE group but also other divisions The sales budget was projected based on actual sales from 2017 and customer forecasts for 2018, leading to two critical questions for the management board: why is there such a stark difference between the 2018 sales forecast and actual returns, and what strategies will be implemented in the third and fourth quarters to recover from the revenue decline experienced in the first half of the year?
2018 Thus, the research starts from the history data such as sales report, profit report and customer’s satisfaction survey report, references from sales, finance and ISO department.
1.2.2 Justify the importance of symptoms
A business runs because of many purposes Goldman et al researched that
Businesses play a vital role in society, existing to produce goods and services that meet societal needs while fostering continuous improvement and advancement According to modern theory, the primary objective of an organization is to achieve sustained long-term profits, ultimately maximizing returns for shareholders and investors.
In today's rapidly evolving business landscape, both practitioners and the general public recognize that profit is essential for a company's survival and growth The necessity for organizations to adapt and innovate in response to constant changes has become increasingly clear, particularly with the rise of disruptive technologies like smartphones, e-commerce, and Industry 4.0 Companies that proactively embrace these changes and quickly reinvent themselves will gain a competitive advantage, while those that fail to adapt risk falling into mediocrity or facing complete failure.
A decline in a company's profits significantly affects all aspects of its operations Identifying the causes of reduced profitability is crucial, as failing to address these issues promptly can jeopardize the business's survival in today's rapidly changing environment.
Customers are essential to a company's survival, as they bring value and drive success To enhance customer satisfaction, many businesses invest heavily in understanding customer needs and behaviors Monitoring customer satisfaction rates is crucial, as it provides insights into a company's strengths and weaknesses, helping to inform strategies for improvement.
Most of improvements will base on customers’ behaviors.
Dawson highlighted the critical role of an organization's knowledge capabilities in navigating the dynamic competitive and market landscape He stated that the "effective real-time development and implementation of strategy—essential for organizational success—depends entirely on the organization’s knowledge capability." This implies that an organization's effectiveness is directly tied to its knowledge capabilities, making it essential for any improvements to be grounded in a clear understanding of these capabilities.
1.2.3.1 The first symptom: Low Customer’s satisfaction
Customer satisfaction of importing products group
Figure 1: The average customer’s satisfaction in 2017 and 2018 of importing products group
Source: Customer’s satisfaction index report 2018, ISO department
The ISO department is set to conduct a customer satisfaction survey in the middle of the year, focusing on four key areas: product quality, after-sales service, delivery service, and the knowledge of sales personnel.
From 2016 to 2018, Srithai engaged in the import trade and conducted a survey to assess customer satisfaction The results indicated that customers were generally pleased with the quality of products, delivery service, and the knowledge of sales personnel However, there was notable disappointment regarding the company's delivery service, with dissatisfaction rates of 45% in 2017 and 50% in 2018 Despite these concerns, Srithai managed to deliver products on time.
In 2017, there were 30 orders totaling 91 units, while the first two quarters of 2018 saw 10 orders amounting to 38 units The majority of late deliveries were linked to specific projects, including supplying pallets to major companies like Suntory Pepsi, MM Mega Market, Nestle, and Mondelez Kinh Do, as well as providing containers to retailers such as Big C, Pharmacity, and Bach Hoa Xanh.
In the import sector, an average late delivery timeframe of 7 to 20 days is considered standard Typically, the lead time for imported products is around 30 days from the release of the purchase order, accounting for potential delays Notably, Srithai has the longest lead time for delivery compared to its competitors in the industry.
Figure 2: Delivery lead time of Srithai, Dino and Platinum
Source: Internal meeting minutes of Sales department in January 2018
1.2.3.2 The second symptom: Gross profit decreases
Figure 3: Sales and %Gross Profit of Plastic Business Quarter 1, 2 in 2017,
Source: Finance report in July 15 th 2018
The figure 3 shows the big gap between revenue of quarter one and two in 2017 and
In 2018, actual sales during the first half of the year diverged significantly from initial forecasts Specifically, the sales and gross profit of the import products group mirrored the trends observed in the plastics business, both showing a notable decline compared to 2017.
Sales & GP of importing products group
-500 Jan Feb Mar Apr May June
Figure 4: Sales and Gross Profit of import products group quarter 1, 2 in 2017,
Source: Finance report in July 15 th 2018
1.2.3.3 The third symptom: High failing projects rate
In 2018, the Material Handling Equipment (MHE) group faced significant challenges, with a project failure rate surpassing that of 2017, particularly among existing customers, where we experienced a 50% failure rate This led to the loss of major clients, including ABI Bev, MM Mega Market, and Suntory Pepsi, to competitors like NPC Toda and Long Thanh Company Additionally, daily customers such as Kureha and SABMiller ceased orders due to our prices being uncompetitive in the market Despite the MHE team's efforts to engage an average of five new customers each month, they struggled with low pricing issues, exemplified by Asia Saigon Foods, which sought 10,000 plastic pallets.
Srithai Superware's quotation speed and lead time are significantly slower compared to competitors like Platinum and Dino While Srithai Superware takes up to a week to provide a quotation, competitors such as Dino can deliver theirs in just twenty-five minutes, highlighting a critical area for improvement in efficiency and customer responsiveness.
(sources: meeting minutes of sales department in March 2018) Moreover, about lead time of delivery, Dino has just taken fifteen days while Srithai needs near forty days.
There is currently no official import process between Srithai Vietnam and Srithai Thailand, making it challenging to manage orders and address issues as they arise.
PROBLEM IDENTIFICATION
Methodology
To identify the core issues, four research methods will be employed, with in-depth interviews being particularly effective due to the small number of employees in sales, purchasing, and finance, which is under thirty This method allows the interviewer to probe deeper and gather comprehensive responses, as participants often feel more at ease expressing their thoughts Additionally, in-depth interviews enable the interviewer to observe the emotions and behaviors of respondents, helping to determine the authenticity of their answers and allowing for adjustments in the interview approach if any discomfort is detected.
Identifying and Diagnosing Tentative Problems
Purpose: The research focus on MHE group consisted plastic pallet and container those in imported from Thailand There are three specific purposes:
Which reasons make profit decrease in period 2017 and 2018
Low customers ‘satisfaction in period 2017 and 2018
High failing project in in period 2017 and 2018
Method: Qualitative research- In-depth interview
Three experienced managers from Srithai, each with over five years of service, have been selected for an interview due to their in-depth knowledge of the company's activities in Srithai Viet.
Nam's management policy and the board's leadership style significantly influence employee performance and relationships within the company Additionally, strong connections with the parent company in Thailand enhance collaboration and knowledge sharing This comprehensive understanding of Srihai Company positions them for continued success.
The depth interview will be taken from July 27th, 2018 to July 30th, 2018 with three respondents from three departments in Srithai Vietnam as below:
No Full name Position Date
1 Nguyen Ngoc Thanh Finance Manager July 27 th 2018
2 Puripong Pinanong Sales Manager July 28 th 2018
3 Nguyen Thi Le Purchasing Manager July 29 th 2018
Table 1: The first depth interview arrangement Research findings
Having worked with Srithai Company for several years, I have developed a strong appreciation for its supportive company policies and inclusive working environment The management style fosters open communication and collaboration, encouraging employees to share their ideas and contribute to the company's success Additionally, the positive attitude of the staff creates a motivating atmosphere, making it a pleasure to be part of the team Overall, Srithai Company prioritizes employee well-being and professional growth, which significantly enhances job satisfaction.
All respondents have worked at Srithai for five years, gaining extensive experience in relationships, management, and company policies However, most individuals noted that Srithai suffers from slow transaction processes and a weak caution system.
Le highlighted that the company's workload management is inefficient, failing to prevent issues before they arise Respondents noted a lack of accountability within the management structure, with no specific individuals responsible for particular problems, leading to a weak appraisal and punishment policy that does not foster fairness or improvement Additionally, Mr Puripong Pinanong emphasized that Srithai Company does not effectively empower its employees, resulting in a lack of engagement and a tendency for workers to focus solely on their tasks without concern for their colleagues' responsibilities.
The working environment at Srithai Company is characterized by three key issues: a low workload that reduces employee pressure, weak leadership from management that leaves employees feeling unempowered and disengaged, and a lack of supportive camaraderie among staff These factors contribute to an unhealthy workplace culture, which is crucial for fostering a successful learning organization Ultimately, the organization's culture significantly hinders the company's development and overall effectiveness.
A report from mid-2018 indicates that the company experienced a decline in profits throughout 2017 and the first half of 2018, particularly in the imported plastic sector What do you believe are the factors contributing to the losses in the plastic import group over this year and a half?
Many candidates noted that Srithai Company faced significant challenges due to ineffective cost management Mr Puripong Pinanong and Mr Thanh highlighted that the company struggled during 2017 and the first half of 2018 due to excessively high input and transportation costs Additionally, Ms Le pointed out that sales representatives were selling products below the break-even price, further exacerbating the company's financial difficulties.
The lack of collaboration between the sales and purchasing departments has led to delays in information updates, resulting in sales representatives frequently selling products below the break-even point The overlapping responsibilities of these departments contribute to inefficiencies Mr Puripong notes that the slow importing process prevents timely access to input prices, which hinders the ability to set competitive selling prices for the Vietnamese market Consequently, salesmen often rely on outdated historical data for customer quotations, despite fluctuations in raw material prices that can affect input costs.
The purchasing department failed to provide timely and sufficient input to the sales department, while the finance department only offered analysis after deals were finalized Additionally, the finance team did not participate in the quotation process or alert the sales department to potential issues These factors highlight a lack of effective communication between departments.
The 2018 customer satisfaction report from the ISO department reveals a concerning on-time delivery rate of only 50%, indicating significant room for improvement This low performance raises questions about the underlying reasons contributing to this issue What are your thoughts on the factors that may be causing these delivery delays?
Both the sales manager and purchasing manager acknowledged that a 50% on-time delivery rate is unsatisfactory, attributing this issue primarily to a "complicated import process." They noted that there is minimal transaction activity between Srithai Vietnam and the Mother Company Mr Puripong highlighted that external factors, such as seasonal demand for trading pallets and containers, particularly at the end of the year, exacerbate the situation, straining the capacity of the Mother Company's factory He emphasized that the complexities and time-consuming nature of the import process hinder their ability to obtain input pricing and timely deliveries, ultimately harming their competitive edge in the market.
The importing process at Srithai Vietnam is characterized by three key issues Firstly, the pricing structure between Srithai Vietnam and its parent company remains unclear, as Mr Puripong noted that "the Mother company does not have a price framework for us," making it difficult to establish consistent pricing due to fluctuations in raw material costs in the plastic industry Secondly, salesmen rely on historical data for quotations rather than current market conditions, which can lead to inaccuracies in input pricing and pose risks to logistics and profitability Lastly, there is a lack of effective collaboration among the sales, purchasing, and finance departments, further complicating the importing process.
Consequences, each link of importing chain is not controlled effective.
2.2.1 The first tentative problem: Ineffective internal communication
Initial cause-effect map was draw base on face-to-face interview three people, sales plastic manager, finance manager and purchasing manager.
Complicated quotation In fact, importing process begins with asking quotation from
The approval of buying prices from the Mother Company often leads to challenges for salesmen, who rely on historical data to provide accurate information to customers Fluctuations in resin prices, currency exchange rates, and company policies can cause buying prices to vary significantly, sometimes exceeding the approved amounts This discrepancy arises during the importing process, where vague information can result in lost profits and unclear responsibilities among team members Consequently, successful project outcomes at Srithai Vietnam are contingent upon timely approvals and accurate pricing, highlighting the need for improved communication and clarity in job roles.
Slow transactions represent a significant weakness in the importing process, primarily due to employees' unclear understanding of procedures The overlap in responsibilities between the sales and purchasing departments contributes to extended lead times, often lasting an additional ten to twenty days As a result, Srithai has incurred extra costs for breaching delivery terms outlined in contracts with customers The company also suffers financial losses due to inadequate customer service; for instance, late product deliveries necessitate borrowing wooden pallets for customers' raw materials or paying fees to store goods in containers at the port Additionally, a costly trucking shipment from Amata Industrial Park to Hung Yen province, amounting to three thousand dollars compared to the usual one hundred fifty dollars for sea transport, serves as a cautionary tale from 2017 Consequently, customer dissatisfaction with Srithai Company has risen, and slow transactions ultimately lead to prolonged importing processes, significantly increasing costs and adversely affecting profit margins.
The real problem: Ineffective internal communication
The updated map identifies two key issues in face-to-face interviews across the sales, purchasing, and finance departments: ineffective communication and weak leadership These interconnected problems contribute to various challenges within the interviewing process, highlighting the need for improved strategies to enhance communication and strengthen leadership in these areas.
Effective communication is essential for both company operations and daily life, as highlighted by Hunjet et al Internal communication systems play a crucial role in providing competitive advantages and enhancing performance within a company Unfortunately, the internal communication system at Srithai Company is currently ineffective.
Ineffective communication within the importing process significantly affects daily operations, leading to a lack of accountability among employees This creates an environment where responsibilities can be easily neglected As trust diminishes, collaboration suffers, resulting in poor logistics management Consequently, the company struggles to control costs effectively, increasing the risk of financial losses.
Research by Hola, J indicates a strong connection between internal communication and employee loyalty Effective communication unites all employees within a company towards a common goal, enhancing competitive advantage and fostering a sense of purpose in their work.
Leadership plays a crucial role in the success of a company, significantly impacting its structure and operations, particularly at Srithai Company It encompasses both theoretical knowledge and practical application in real-life situations The management board, composed entirely of Thai individuals, adheres to an organizational structure established by the parent company Leadership styles are influenced by the knowledge, experience, and characteristics of this board, making it an external factor that Srithai Vietnam cannot control Conversely, individual leadership can tap into internal potential, affecting the motivation and performance of all employees at Srithai Vietnam.
Lack of trust amongst employees
Weak management Unclear job description
Unclear KPI of profit and cost
Weak leadership of BOD Low employee commitment
Figure 6: The updated cause effect map
Problem definitions of ineffective internal communication
Communication is defined as a dialogue between a speaker and a listener, aimed at informing or persuading through the exchange of signals According to Hunjet et al., it encompasses the sharing of information, ideas, and emotions through both verbal and non-verbal means.
According to Zondi et al., internal communication is essential for organizations, serving as their lifeblood It involves the exchange of information among employees, which is crucial for enhancing both individual performance and overall organizational success.
Figure 7: The internal corporate communications process
Miller outlines an effective internal communication process for businesses, emphasizing the importance of informing employees, engaging in dialogue, and obtaining feedback However, Srithai Vietnam struggles with an inefficient internal communication system The company's challenges stem from low cross-departmental communication and inadequate policies that fail to support effective communication Additionally, unclear working processes allow employees to evade responsibilities Furthermore, the lack of empowerment and motivation among employees hampers their engagement in interactions, which are crucial for knowledge transfer and sharing Lastly, a lack of trust leads to minimal active responses and feedback from employees, as they feel their opinions are often overlooked.
According to Hunjet et al (3), there are four part of internal communication in business:
Misunderstanding the term "communication" can lead managers to misidentify problems, resulting in poor decision-making When the actual issue is mislabeled, it creates an environment ripe for mistakes Research by Minter highlights that communication encompasses four key components, specifically focusing on communication channels.
Ineffective internal communication within hierarchical structures at Srithai can be attributed to three key aspects: communication attitudes, interpersonal communication behavior, and the overall communication culture Addressing these issues is essential for fostering a more effective communication environment.
Verifying the importance of ineffective internal communication
Ineffective internal communication at Srithai Company has been highlighted during two interviews, particularly concerning the disconnect between the sales and purchasing departments regarding the control of import prices Sales manager Mr Puripong Pinanong noted that the purchasing department is responsible for obtaining quotations from Srithai Thailand; however, the sales team often bypasses this process due to the urgent pricing needs of Vietnamese customers This lack of timely access to selling prices diminishes the company's competitive edge, as competitors are able to respond more quickly and efficiently.
Second evidence is weak to control cost lead to decrease bottom profit of importing products group Sales, purchasing and finance department work quite separately Ms.
Le presents that “There is a few meetings among departments to cooperate together
Meetings are often scheduled only when significant problems arise, highlighting a reactive approach to issues Additionally, the lack of coordinated information sharing between departments leads to prolonged and inefficient import processes.
Verifying the existence of ineffective internal communication
Effective internal communication is a vital tool for connecting employees and the organization, significantly enhancing the company's reputation, as highlighted in Holá, J.'s research.
Word-of-mouth marketing is often more effective than traditional methods, highlighting the importance of strong internal communication within a company Poor internal communication can lead to misinformation and delays, ultimately lowering productivity and efficiency This breakdown also negatively affects employee relationships and overall job satisfaction Consequently, these internal issues can harm external communication and damage the company’s reputation Therefore, fostering effective internal communication is crucial for both internal operations and external performance.
Declining employees ‘satisfaction and employees’ productivity Many studies show that internal communication has positive relationship with employees’ satisfaction.
Weak organizational communication patterns can lead to decreased employee satisfaction, resulting in lower commitment, increased turnover, and reduced productivity, as highlighted by Abugre, J B Additionally, research by Fletcher, M indicates a positive correlation between employee satisfaction and organizational profitability and productivity Ineffective internal communication can create a chain reaction that negatively impacts overall company performance.
Holá, J also indicated many results of unproductive internal communication such as (4)
“High rate of employee turnover (fluctuation);
Ineffective coordination of all activities of the company;
Failing to reach the company’s target;
Purpose: Finding evidences for proving importance of existence problem
Mr Puripong Pinanong and Ms Tran Thi Tuyet were selected for an interview due to their managerial experience and five years of service at Srithai, equipping them with valuable insights into the company's operations The organization faces challenges including a high turnover rate, low employee satisfaction, and decreased productivity, all of which are linked to human resource management issues Mr Puripong Pinanong is particularly well-suited for this discussion, as his perspectives on the company's performance and reputation will provide essential information for the research.
The depth interview will be taken from August 15th, 2018 to August 18th, 2018 with two respondents from two departments in Srithai Vietnam as below:
No Full name Position Date
1 Tran Thi Tuyet HR department manager August 15th, 2018
2 Puripong Pinanong Sales Manager August 16th, 2018
Table 3: The third depth interview arrangement
The company's reputation has significantly declined, impacting the profitability of the importing group over the past two years Specifically, sales figures have shown a consistent decrease in the first and second quarters of 2018, and this downward trend appears to be ongoing.
In 2018, actual sales diverged significantly from expectations, adversely affecting Srithai Vietnam's overall performance, particularly within the Material Handling Equipment sector of the Srithai Group globally, according to Mr Puripong Pinanong He emphasized that a decline in company performance can harm its reputation, leading to a decrease in investment capital from equity sources.
A poor working environment can lead to significant negative outcomes for a company, particularly due to ineffective internal communication This issue directly affects newcomers, as they rely on essential documents such as policies, history, strategies, and job guidelines to acclimate to their roles Adequate support from colleagues is also crucial, as it fosters a collaborative atmosphere that enhances employee performance A positive working environment not only boosts individual productivity but also contributes to the overall success of the organization Conversely, a negative atmosphere can disrupt all organizational activities, hindering performance and growth.
Reducing productivity of employees, employees’ satisfaction and increasing rate turnover Secondly, internal communication in Srithai Viet Nam is not fluent.
At Srithai, the lack of individual accountability leads to a culture of blame among employees, which hampers teamwork and diminishes morale This negative environment ultimately reduces employee productivity and satisfaction, resulting in a higher turnover rate.
Causes and Effects chart of real problem: Ineffective internal communication in
Different language Nowadays, economic integration is a trend of economic global
Many multinational companies, such as Pepsi, Coca-Cola, Apple, and Samsung, operate subsidiaries across various countries to benefit from cost savings in labor, taxes, and distribution networks However, these advantages come with challenges, including cultural conflicts, communication barriers, and legal complexities Research indicates that language significantly influences management decisions in international enterprises, highlighting the importance of knowledge transfer and sharing within multinational organizations Effective internal communication is crucial for this process, making language a key factor in conveying knowledge and strategies from the parent company to its subsidiaries Additionally, language differences can create barriers to trust within diverse teams, which is particularly relevant in the context of Srithai Vietnam, where the relationship between Thai bosses and their subordinates can be affected by these dynamics.
Inadequate employee motivation significantly impacts a company's success, as highlighted by Grynko's research, which emphasizes that well-motivated employees are essential for a thriving organization Employee motivation encompasses both external factors, such as salary, benefits, and bonuses, and internal factors, including job satisfaction, enjoyment, challenges, and recognition In the case of Srithai, the lack of adequate motivation is evident in the internal aspects, particularly in terms of employee satisfaction, enjoyment of work, and feeling appreciated and recognized.
Weak teamwork skills can hinder a team's ability to adapt in today's rapidly changing environment Effective teamwork relies on the collective knowledge, skills, and attitudes of its members to achieve common goals The success of a team is determined by the quality of interactions and the synergy among its members When teamwork skills are lacking, individuals struggle to connect effectively, leading to poor collaboration and ultimately preventing the team from accomplishing its objectives.
Weak individual leadership Individual leadership is call personal leadership
Personal leadership is considered as a significant element in management today(19) Freidman defied personal leadership through a person have leadership vision.
Leadership vision focuses on three key factors: the significance of goals, aspirations, and desires Klagge highlights that personal leadership encompasses four critical dimensions: mental, emotional, volitional, physical, and spiritual boundaries He further illustrates the essential characteristics of personal leadership behaviors.
use of facts and data;
Weak individual leadership in organizational area in Srithai is expressed clearly during previous analysis They are irresponsibility, finger-point together and explanation for their faults often.
ALTERNATIVES ANALYSIS AND POSSIBLE SOLUTIONS
Verify causes of the real problem
Purpose: Exploring causes of real problem: ineffective in internal communication in Srithai company.
Mr Withawin Laohakivjtoon and Mr Do Quoc Tu are both well-suited for this interview due to their unique strengths At just twenty-seven years old and with over two years at Srithai, Mr Withawin brings youthful dynamism, critical thinking, and a fresh perspective, making him eager to learn and explore his career options In contrast, Mr Tu’s twelve years of experience at Srithai provide him with extensive knowledge and valuable relationships within the company, making his insights crucial for the thesis Together, their diverse backgrounds offer a comprehensive view of Srithai’s culture and operational dynamics.
The depth interview will be taken from August 26th, 2018 to August 27th, 2018 with two respondents from two departments in Srithai Vietnam as below:
No Full name Position Date
2 Do Quoc Tu Assistant to Director August 27th, 2018
Table 4: The fourth depth interview arrangement Research findings
During of an interview, different language is not a real cause in internal Srithai
Miscommunication in English between the Mother company and Srithai Vietnam is significantly affecting import transactions, leading to the production of incorrect products that fail to meet customer expectations This misunderstanding can result in customers refusing to accept shipments and requesting contract fees, ultimately damaging the company's reliability Mr Withawin highlighted that the key contact at the Mother company has limited English proficiency, which exacerbates the issue and creates additional stress in the importing process for the MHE group.
Employees often struggle with teamwork skills, leading to ineffective communication and conflict resolution Mr Withawin emphasizes that the quality of communication significantly influences transaction and work quality, noting a lack of motivation among employees who complete their tasks without putting in extra effort Additionally, Mr Tu points out that about fifty percent of employees have family ties, which can result in avoidance of open discussions and differing opinions Consequently, many employees tend to stick strictly to their job descriptions without engaging in the overall process.
The interview revealed that Srithai's work environment lacks adequate motivation, primarily due to familial relationships among 50% of employees, which, while fostering support, also hinder the company's development by creating barriers to addressing conflicts Mr Tu noted, “The spirit of supporting between employees is low,” attributing this to a lack of motivation since all employees receive the same salary regardless of performance, with no bonuses or rewards Additionally, Mr Thanh highlighted the complexity of the working environment, stating that the numerous benefit groups and familial ties significantly impact the overall atmosphere at Srithai.
Half of employees have family ties, which can lead to a reluctance to express differing opinions openly Many workers tend to focus solely on their job descriptions without engaging deeply in the overall process.
Weak leadership is a significant issue at Srithai Vietnam, as highlighted by Mr Withawin, who identified two types of weak leadership within the company He noted that departments tend to operate in silos, resulting in minimal collaboration on projects, which reflects the ineffective leadership of Thai members on the Board of Managers This sentiment was echoed by most interviewees, with Mr Hai emphasizing the low level of cross-departmental communication Both Mr Withawin and Mr Tu concurred that the leadership dynamics among Thai board members contribute to this disconnect.
Manager are over sixty years old So, their style is more traditional, low dynamics and avoid risk” They depended too much on commands of Mother company.
Weak individual leadership at Srithai Vietnam affects not only office employees but also the Board of Management Mr Withawin pointed out that the influence of weak leadership from the Board results in a lack of strong leadership at all levels, fostering a culture of low individual motivation that is challenging to change over time Consequently, the interplay of weak leadership on both sides stifles development within the company Mr Tu emphasized that this weak leadership culture leads to a lack of support, cooperation, innovation, and overall progress in Srithai Vietnam.
Main cause of the problem: weak individual leadership
In four interviews conducted with employees at Srithai Vietnam, several key characteristics emerged, highlighting their empathy and commitment to completing tasks as described However, the organization faces significant developmental challenges, primarily due to a lack of clear accountability As noted by Ms Le in the first interview, the absence of a single responsible party hinders progress and efficiency within the company.
“The employees are not empowered so that they often wait for their bosses solving problems, they are not initiative to deal with their issues” She also mentioned that
“there is not specific person who responsible for specific problem The faults often belong to group”.
Many interviewers expressed concerns about the working environment at Srithai Vietnam, noting that while the workload is manageable and does not overly stress employees, the overall spirit of collaboration, innovation, and progress is lacking Mr Tu highlighted this issue, while Mr Withawin emphasized two key factors that reflect the quality of communication among employees: the frequency and quality of interactions Although interactions among employees occur frequently, the quality of these communications remains low.
A detrimental organizational culture is evident when individuals frequently shift blame and evade accountability, which hinders sustainable growth for Srithai Vietnam This behavior not only stifles progress but also poses a significant threat to the company's ability to adapt in an ever-changing and unpredictable environment.
Weak individual leadership is a significant issue at Srithai Vietnam, primarily influenced by the Thai composition of the management board and the organizational structure set by the Mother Company This external factor limits the company's ability to control its leadership dynamics However, the board's leadership style, shaped by their knowledge, experience, and characteristics, plays a crucial role in guiding Srithai Vietnam Effective leadership fosters organizational learning and contributes to the company's overall success By cultivating a leadership spirit among all employees, Srithai Vietnam can achieve sustainable growth and success.
Ineffective internal communication Weak teamwork skill
Figure 8: The final cause-effect map
High failing Gross profit project rate decreases
Declining employees’ satisfaction, employees’ productivity High rate of employees’ turnover
Possible solutions
3.3.1 Solution 1: Applying ROFO principle in office departments in Srithai Vietnam
Introducing ROFO principle of Mr Ah Bee Goh, COO of Schaffner Thailand company.
The content of ROFO principle is(21)
Mr Ah Bee Goh, COO of Schaffner, highlighted that ROFO serves as both a profound management insight and a powerful tool for addressing challenges Additionally, he noted that it acts as a guiding principle for staff behavior, enhancing workplace effectiveness.
Mr Ah Bee Goh emphasized the importance of self-internalization and self-motivation among employees, stating that it enables them to take ownership of the entire process until the desired outcomes are achieved He identified three interconnected factors—ownership, focus, and on-time corrective action—that work together in a continuous cycle This cycle fosters cooperation and enhances learning within the organization Ultimately, the interplay of these elements leads to improved results and a more collaborative work environment.
“outcome is attained with enthusiasm, passion and without blaming others”(21) Key factors that can be achieved with ROFO in training, applying and reflecting are
Ownership Mindset o Once every staffs in the process own the process together Everyone takes their tasks seriously. o There will be no more smart talk, excuses, finger-pointing and etc.
Effective cooperation and trust are essential for a successful team dynamic, as shared ownership of processes fosters unity The ROFO approach prioritizes problem-solving over assigning blame, encouraging a respectful reminder to individuals about avoiding past mistakes.
This will introduce trust and future cooperation among staffs.
A willingness to learn mindset is essential for committing to timely corrective actions and ongoing process improvements By adopting a ROFO (Right On First Opportunity) approach, individuals and teams can ensure that learning and development occur consistently, fostering a culture of continuous improvement every day.
In their article "Why Organizations Don’t Learn?", Gino and Staats highlight several actions that can help organizations overcome barriers to learning, ultimately enhancing their capacity for growth and adaptation.
Increase awareness and engage workers(22)
Encourage workers to own the problems that affect them(22)
Give workers different kind of experience(22)
Empowering workers to use their experience(22)
The actions align with the ROFO model, which emphasizes fostering a culture of learning and ownership among staff When employees are empowered to take on leadership roles, ROFO cultivates an organizational culture rooted in trust, encouraging a continuous willingness to learn and grow.
The solution proposed is specifically applicable to the case of Srithai Vietnam, as it shares similarities with Schaffner's operations Schaffner has established factories and offices globally, including locations in Kecskemét (Hungary), Lamphun (Thailand), Shanghai (China), and Wytheville (USA) The implementation of ROFO in the Thailand factory marked a significant milestone, reflecting the valuable lessons learned by Mr Ah Bee Goh throughout his career He emphasizes that people are the core of any action and are essential for driving change Upon his initial visit to Schaffner Thailand, Mr Goh observed conditions akin to those currently faced by Srithai Vietnam, where a challenging work environment hinders both employee performance and company success Long-standing negative workplace habits, such as finger-pointing and a lack of accountability, have become ingrained in Schaffner's culture.
Schaffner Thailand has become a prominent symbol of significant transformation in the country, particularly after implementing the ROFO principles This case has garnered widespread recognition, highlighting the parallels between Schaffner Thailand and Srithai Vietnam, suggesting that the ROFO framework could also be beneficial for Srithai Vietnam.
ACTION PLAN FOR SOLUTION
The purpose of applying ROFO principle in office depatments in Srithai Vietnam.
ROFO is a set working principles (mindset) and by getting staffs to adopt this mindset as their own is, in effect, to create a new corporate culture.
Leadership committed to Companywide training and learning keep staffs at all levels equipped with the appropriate knowledge required in successfully implementation of the intended Strategy
As can be seen in the table 1, timeline for each task will be applied in 2019 as follow:
The first step should be training for whole office employees of each department Mr
Ah Bee Goh has been invited to train employees at Srithai Vietnam, bringing his expertise in ROFO principles to inspire listeners He will also serve as a consultant during the implementation of these principles in 2019 The initial training session is scheduled for December 2018, aimed at preparing the company for upcoming changes A follow-up training session in the first quarter of 2019 will be conducted by the board of managers at Srithai Vietnam.
Action 2: Evaluating effectiveness of conducting ROFO principles
The effectiveness of implementing ROFO principles will be assessed using three methods The first method involves a comprehensive 360-degree evaluation conducted at the departmental level every three months, highlighting improvements across the entire office The remaining two methods focus on peer evaluations and self-assessments, providing additional insights into individual and team performance.
40 applied in each department in order to reinforce each employee knowledge of ROFO and apply it daily working day It helps to build habit to use ROFO of employees.
Action 3: Encouraging employees conduct ROFO principles
To promote adherence to ROFO principles, the appraisal program will be structured at two levels: the entire office department and individual departments The office department level will manage appraisals quarterly, while each department will operate its own appraisal processes.
Table 5: The prize and recognition of appraisal level
Each quarter, a 360-degree evaluation will be conducted to select one employee from each department for a prestigious award The prize, valued at one million dong, will be awarded to the outstanding employee, who will serve as a representative for the entire company over a three-month period.
Each department will conduct monthly evaluations where three employees will be voted on based on their performance The selected peer will receive a prize of 200 dong, and the evaluation process will be carried out within the department each month.
Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
Action 2 Evaluating effectiveness of conducting ROFO principle
Action 3 Encouraging employees conduct ROFO principles
Table 6: The timeline for implementing set solution 1
Ineffective internal communication is a critical issue affecting MHE Group, leading to reduced profits, decreased customer satisfaction, and a high project failure rate This communication breakdown has also harmed the company's reputation in the pallet and container industry and created a negative work environment at Srithai, where employees feel undervalued and dissatisfied Analyses indicate that weak individual leadership is the primary cause of these problems To address this issue, implementing ROFO principles is recommended, although resource limitations may hinder their effectiveness in this context.
Topic The reasons that impact on profit, customer satisfaction in MHE group
Venue No.2, Street 2, Di An Ward, Di An district, Binh Duong province
Interviewer Nguyen Thi Thuy (ID: 22160052)
I want to thank you for taking the time to meet with me today.
My name is Thuy and I would like to talk to you about your experiences with the reasons that impact on profit, customer satisfaction in MHE group.
The interview will last approximately 20 minutes and will be recorded to capture all your comments accurately While I will take notes, I may not be able to write everything down, so please speak clearly Rest assured, your responses will remain confidential and will only be shared with the research team, ensuring your identity is protected in the final report You are free to skip any questions you prefer not to answer, and you can end the interview at any time.
Are there any questions about what I have just explained?
Are you willing to participate in this interview?
1 Personal information Your job/responsibility/position within the company.
I have been with Srithai Company for several years, and my experience has been overwhelmingly positive The company's support policies foster a collaborative and inclusive working environment, where employees feel valued and motivated The management style is approachable and encourages open communication, which enhances teamwork and productivity Additionally, the attitude of the employees is generally positive, creating a friendly atmosphere that promotes both personal and professional growth Overall, Srithai Company is a great place to work, with a culture that prioritizes employee well-being and success.
In the first half of 2018, a report indicated that the company experienced a decline in profits during 2017 and the initial months of 2018, particularly within the plastic import sector This raises questions about the factors contributing to the losses in the plastic import group over this year and a half period.
The 2018 customer satisfaction report from the ISO department reveals a concerning on-time delivery rate of only 50%, indicating significant room for improvement This low performance raises questions about the underlying factors contributing to the issue What are your thoughts on the reasons behind this problem?
5 The failing project rate is very high as fifty percentage in 2017, do you think what the reason of this problem?
Does your company have an employee motivation program? If so, please provide details about the program If not, we would appreciate your insights on why the company lacks such a program.
7 Who do you think that should responsible for loss profit? Why?
After completing a project, it is standard practice to hold a review meeting to assess its successes and shortcomings while extracting valuable lessons However, the import group for plastics has experienced significant losses over the past year and a half Does your company implement an effective cost control system?
9 Are your employees clear their job description?
10 Do you want to share more information?
Topic The effective of internal communication system in Srithai Vietnam company.
Venue No.2, Street 2, Di An Ward, Di An district, Binh Duong province
Interviewer Nguyễn Thị Thủy (ID: 22160052)
I want to thank you for taking the time to meet with me today.
My name is Thuy and I would like to talk to you about your experiences in the effective of internal communication system in Srithai Vietnam company.
The interview will last approximately 20 minutes and will be recorded to ensure all your comments are captured accurately, as note-taking may not suffice Please speak clearly during the session to avoid missing any of your insights Rest assured, all responses will remain confidential, shared only with research team members, and your identity will not be disclosed in any reports You are not obligated to discuss anything you're uncomfortable with, and you can choose to end the interview at any time.
Are there any questions about what I have just explained?
11 Are you willing to participate in this interview?
12 Personal information Your job/responsibility/position within the company.
I have been with Srithai Company for several years, and my experience has been overwhelmingly positive The company's support policies foster a collaborative and encouraging work environment, while the management style promotes open communication and teamwork Employees exhibit a strong sense of camaraderie and professionalism, contributing to a productive atmosphere that enhances overall job satisfaction.
14 Gross profit of importing products group has decreased since 2017, do you think what the reasons are?
15 The failing project of importing products group rate is very high, do you think what the reasons are?
16 Do you think that lack of effective communication in work organization would affect employees’ productivity? How are its affects? Could you share some experiences?
17 What are your difficulties in your job? Do your boss and your colleagues support you?
18 Are you initiative to make decision in your job? If answer is no, what reasons are in your opinion?
19 What are your opinion about cross communication of department in company?
20 How do you think of effective of sharing information between departments?
21 Are you clear your department’s KPI and your description job?
22 How do you think of effective of leadership in company? Prompts: making decision ability, persuade ability, motivation employees, listening, etc.
23 Are you easy to tell your boss your idea or improvement?
24 Do you want to share more information?
Topic Finding evidences for proving importance of existence problem.
Venue No.2, Street 2, Di An Ward, Di An district, Binh Duong province
Interviewer Nguyen Thi Thuy (ID: 22160052)
I want to thank you for taking the time to meet with me today.
My name is Thuy and I would like to talk to you about your experiences in finding evidences for proving importance of existence problem.
The interview is expected to last approximately 20 minutes and will be recorded to capture all your insights accurately While I will take notes, the recording ensures that no comments are overlooked, so please speak clearly Your responses will remain confidential, shared only with the research team, and any identifying information will be omitted from the final report You are free to skip any questions you prefer not to answer and can choose to end the interview at any point.
Are there any questions about what I have just explained?
Are you willing to participate in this interview?
25 Personal information Your job/responsibility/position within the company.