PROBLEM IDENTIFICATION
From Vice Director’s perspective
There are 2 main reasons from Vice Director’s perspective:
- No opportunity for promotion -> Some good workers move job
- Large orders and some workers leave -> pressure of work on the current workers
Excessive overtime has led to worker fatigue and a lack of promotion opportunities, prompting employees to seek positions at larger, more prestigious companies As some workers leave, the remaining staff must shoulder their responsibilities while the company recruits new talent This situation is exacerbated by an influx of large orders, forcing current employees to work even more overtime, resulting in increased stress and exhaustion Consequently, many are choosing to resign as well The Vice Director noted, "With some workers quitting, those who remain face additional workloads during the recruitment process, and the recent surge in orders has only intensified the need for overtime."
Excessive overtime, driven by the need to cover for departed employees and fulfill large orders, has created significant pressure on workers This overwhelming workload has led many to resign, with long hours being the primary reason for their departure.
The company's location played a significant role in employee recruitment, as the Vice Director noted that many individuals may have found jobs close to their homes or near the center To accommodate workers living farther away, the company plans to hire a bus for transportation.
In an interview, it was revealed that the initial salaries of "skateboard workers" were comparable to those of other employees, but the company conducted annual performance evaluations that led to higher salary increases for these workers, ranging from 5% to 8%, compared to the 3% to 5% increases for others Additionally, the monthly bonuses for skateboard workers were also more substantial The Vice Director mentioned that while the company might consider salary increases to retain workers who resign over pay issues, such adjustments would be limited to a maximum of VND 500,000 per month and would depend on individual performance and experience However, she expressed skepticism that salary was the primary reason for employee resignations.
From workers perspective
Strict purnishment regulation Unpleased with
Interviews with resigned employees reveal the underlying reasons for their departure, offering valuable insights into the issues they faced These discussions clarify workers' expectations, enabling the company to identify effective solutions to address their concerns.
The interviews conducted with four former skateboard production workers revealed significant insights into their experiences The participants, Mr Thuan (32), Mr Phuc (35), Mr Thanh (30), and Mr Long (32), expressed their exhaustion due to excessive overtime, particularly on Mondays, Wednesdays, and Fridays, with additional hours on Tuesdays and Thursdays This relentless schedule left them feeling fatigued and deprived of quality time with their families Mr Thanh noted that while the company offers attractive benefits, including holiday bonuses and performance-based salary increases, the demanding work hours hinder their ability to spend time with loved ones, highlighting a critical issue in the workplace culture.
The inconvenient location of the company, situated far from employees' homes, resulted in long commutes that led to fatigue Mr Thuan noted that although he was initially aware of the distance and accepted the job for its attractive benefits, including good insurance and bonuses, he ultimately chose to switch to a job closer to home when a friend offered him a position with a similar salary.
The third reason from workers was that they were not pleased with the supervisor because she always followed the rules rather than be sympathized the workers One of
High Turnover Rate Low Production Lack of discussion with the workersToo much customer orders Too much working overtime
Mr Phuc, a factory worker, experienced a significant decrease in his bonuses due to strict adherence to regulations by his supervisor He recounted an incident where he received a phone call during work hours, driven by concern for his sick child, only to be reprimanded instead of having his situation understood He expressed frustration, stating, “It was not necessary to follow the rules all the time; some situations warrant a reminder rather than punishment.” Additionally, he faced another reprimand after a disagreement with a coworker, which he believed was unjust, further highlighting the challenges workers face when regulations overshadow individual circumstances.
Many employees feel that their salaries do not reflect their qualifications and expertise Mr Long highlighted that while the current salary may be acceptable for sewing workers, it is unfair for positions requiring advanced mechanical skills and knowledge Additionally, although skateboard workers receive higher bonuses than sewing workers, they prefer a higher base salary, viewing it as a more stable form of compensation.
From supervisor perspective
The supervisor recognized that she was receiving excessive customer orders without consulting her team, leading to a need for better communication She realized that discussing these large orders with her workers beforehand would allow them to manage their schedules more effectively.
In an interview with Mrs Nguyen, the supervisor of the third factory, it was revealed that excessive overtime is the primary reason behind employee resignations.
On September 25, the production department confirmed receipt of large customer orders despite a shortage of workers The supervisor justified this decision by stating that there had been a lack of large orders for some time, leading the team to believe that overtime work was manageable She emphasized that the company would compensate workers with overtime pay, which was higher than regular wages, providing them with adequate benefits However, she expressed concern that rejecting the orders could result in customers seeking other suppliers, ultimately harming the company The oversight, she noted, was the failure to consult with workers before accepting the orders and a lack of forecasting regarding the potential impacts of this decision.
B/ LITERATURE REVIEW OF THE PROBLEMS
Reasons of High turnover rate
According to Smith 4 , there are 12 reasons for employee turnover:
- Rude behavior: everyday indignities have an negative influence on productivity and result in good employees quitting.
Work-life imbalance often arises when organizations downsize or restructure, leading to increased demands for longer working hours and weekend work This situation forces employees to make difficult choices between their personal lives and professional responsibilities, ultimately impacting their overall well-being and job satisfaction.
- The job did not meet expectations: it is too common when the initial description of job and what was promised during the interview are different to the real work.
Organizations must prioritize hiring qualified employees who align with their goals, as misalignment can hinder success Managers should avoid attempting to fit individuals into roles where they do not belong By ensuring a proper fit, companies can foster an environment where employees recognize opportunities for growth, leading to increased retention and commitment.
Feeling undervalued can significantly impact employee motivation and productivity Recognition for a job well done is essential, as it fosters a sense of appreciation and encourages individuals to contribute more to the organization Effective employee recognition not only communicates gratitude but also enhances overall workplace morale.
Effective coaching and feedback are essential for employee performance improvement When employees receive constructive feedback from their employers, it fosters a stronger connection between them and their managers, ultimately benefiting the organization as a whole.
- Decision-making ability is lacking: Employees need “empowerment” of decision- making so that they embrace the trust with enthusiasm and have more responsibility for their job.
Many managers excelled in their previous roles, leading to promotions based on their strong performance and results However, this does not necessarily equip them with effective leadership skills While people skills can be cultivated, having a natural talent for connecting with and motivating others is advantageous It is essential for managers to lead by example and recognize their team members through meaningful actions.
Organizational instability leads to frequent changes in goals, directions, and plans, leaving employees uncertain about their roles and responsibilities This lack of clarity fosters confusion and reduces overall efficiency in the workplace.
Economic factors often lead to freezes on raises and promotions, which can hinder an organization's future development Without competitive wages and benefits, retaining employees becomes increasingly challenging.
As a company's revenues and profits grow alongside increasing workloads, it is crucial for employers to reassess their overall compensation packages Employees who contribute to the company's success naturally expect to be acknowledged and rewarded for their efforts, as their faith and confidence in the organization can be shaken without appropriate recognition.
Many talented individuals often leave organizations when they feel stuck in unfulfilling roles Successful companies actively seek to provide growth opportunities by helping employees acquire new skills and take on additional responsibilities.
Besides these reasons, Querrey 5 also indicated five main reasons of high turnover rate as below:
Low salary significantly influences employees' decisions to remain with a company Competitive salaries and substantial budgets for pay raises encourage talented staff to enhance their contributions Conversely, if a company fails to offer attractive compensation, skilled employees may be lured away by competitors offering higher salaries and better benefits.
Ineffective management can lead to a toxic workplace, as inadequately trained managers and supervisors often lack essential conflict resolution skills Companies must monitor employee interactions with supervisors and track the frequency of conflicts to gain insights into workplace dynamics This approach is crucial for understanding employee needs and improving retention rates.
Employees often choose to leave their jobs when they feel their contributions go unrecognized Implementing an internal recognition program that rewards employees for their hard work can significantly enhance retention and job satisfaction.
Problem 1: Excessive Working Hours
a) Definition of Long working time
The normal working hours for labor is not more than 48 hours per week with the average
8 hours per day and 40 hours per week is encouraged by government for the best of productivity.
According to the issue Beswick 6 et al discussed Harrington’s research, working more than 48 hours means working extended hours Similarly, Beswick 6 also mentioned The
The 1993 European Directive on Working Time establishes key regulations for employee work hours, stipulating a maximum of 48 hours per week averaged over a 17-week period It mandates a minimum daily rest period of 11 consecutive hours and requires at least one day of rest per week, averaged over a 14-day span.
KODZ et al 7 also defined long working hours as more than 48 hours a week. b) Problems of excessive working hours
Excessive work hours are a significant issue in Chinese manufacturing facilities, as highlighted by Verite 8 Internal challenges, like malfunctioning machinery and high employee turnover, combined with external pressures such as urgent customer orders, often lead factory managers to impose longer working hours on employees as a means to resolve these difficulties.
Similar to Chinese factories case, in the case of Parapex, the workers had to work overtime too much because the supervisor of factory receive the rush order from customers.
Excessive working hours lead to numerous negative consequences, including heightened health issues, increased safety risks, reduced productivity, elevated turnover rates, lowered employee morale, and difficulties in family life.
As businesses experience growth and attract more customers, the demand for increased output often leads to higher operational costs While paying employees overtime may appear to be a cost-effective solution for boosting productivity, it can ultimately harm the business Overtime often results in diminished productivity and fosters an unhealthy workplace culture, leading to increased stress, more sick days, and higher employee turnover rates.
Excessive working hours at Parapex have led to high turnover rates and a significant decline in profits Employees reported that the demanding workload required them to work long hours to meet distribution needs, resulting in fatigue, stress, and insufficient family time Consequently, many workers chose to leave the company, highlighting the negative impact of overworking on employee retention.
Excessive overtime can lead to employee burnout, causing tired and frustrated workers to leave their jobs in search of better opportunities.
Long working hours significantly contribute to high staff turnover and recruitment challenges, as noted by Kodz et al Additionally, a survey conducted by WFD revealed that 40 percent of managers believe work pressure is a key factor driving employee turnover.
Overtime can be advantageous for both employees and companies by providing extra income and helping cover unexpected absences However, excessive overtime can lead to negative consequences, including health issues, safety risks, decreased productivity, and increased absenteeism Notably, high turnover rates often stem from a lack of work-life balance and employee fatigue, further exacerbating the challenges associated with excessive absenteeism.
Reducing long working hours can enhance both employment levels and productivity Extended hours often lead to sleep disruption, negatively impacting task performance through increased errors, slower work pace, and impaired social interactions Furthermore, long hours diminish employee motivation and contribute to higher rates of absenteeism and turnover Research indicates a strong correlation between lengthy work hours and elevated staff turnover, with many employers expressing concern that such hours may result in increased sickness absence and employee attrition.
Excessive overtime hours can lead to employee turnover, even when employers provide appropriate overtime pay, as highlighted by the Alberta Institute 14 Employees seek recognition and evaluation of their contributions, and a lack of balance between work hours and personal time can drive them to leave their jobs.
Excessive working hours pose significant health risks and create conflicts with family responsibilities, often leading employees to resign Research from the Alberta Institute, as noted by Beckers et al., highlights that overtime work adversely affects health due to insufficient recovery time after work Furthermore, Beckers et al emphasize that prolonged work hours contribute to various health issues, including high blood pressure, an increased risk of cardiovascular disease, diabetes, and mental fatigue.
In the case of Parapex, large orders resulted in supervisors pressuring workers to increase their hours, leading to fatigue, stress, and diminished family time Consequently, many employees chose to leave the company, resulting in a high turnover rate and a significant drop in profits Addressing the issue of excessive overtime is essential for improving employee retention and enhancing the company's profitability.
Problem 2: Low Salary
Salary is a crucial factor influencing employee turnover; if competitors offer significantly higher wages, employees may be tempted to leave Consequently, low salaries can lead to increased labor turnover within a business It is essential for companies to ensure their pay rates are competitive and align with industry standards Even with budget constraints preventing substantial pay raises or robust benefit packages, employers can explore alternative compensation methods, such as offering flexible working hours or additional paid time off to attract and retain talent.
The Overture Group 16 agrees with Querrey that low salaries or a lack of salary increases contribute significantly to high employee turnover rates During periods of low growth, companies often face budget cuts, resulting in minimal raises for current employees As competitors focus on attracting new talent with higher salaries, existing employees may be tempted to seek new job opportunities However, while salary is an important factor, intrinsic motivation appears to play an even more crucial role in employee retention.
During challenging economic times, employees often remain committed to supporting their company, anticipating that their dedication will be acknowledged through fair compensation once the economy improves.
Workers at Parapex reported dissatisfaction with their salaries, feeling that their pay did not reflect their experience and efforts This inadequate compensation contributed to their decision to leave the company, resulting in a high turnover rate.
Problem 3: Strict Punishment Policy
Vaden 17 discusses Casison’s view that strict punishment policies lead to decreased productivity, high employee turnover, low morale, and lost profits Such policies negatively impact job performance and satisfaction, as negative punishment removes reinforcing stimuli While these measures may yield short-term gains, they ultimately damage the essential positive relationship between employees and managers, which is crucial for the long-term development of the company.
Using punishment as a control tool in the workplace can create a fear-based environment, ultimately hindering employee growth and company development Inappropriately applied punishment leads to employees being reluctant to take risks, which are essential for organizational growth and competitiveness Vaden (2017) identifies four types of risks that employees may avoid: fear of failure, fear of success, fear of judgment from others, and fear of uncertainty Consequently, a strict punishment policy can stifle both individual and corporate advancement.
The case of Parapex highlights how a strict punishment policy can lead to high employee turnover rates This approach negatively impacts job satisfaction, leaving workers feeling demoralized and unwilling to continue contributing to the company.
High Turnover Rate Decrease in sale performance Strict Punishment Policy
C/ POTENTIAL PROBLEMS AND MAIN PROBLEM IS SELECTED TO
Interviews with problem owners, former employees, and supervisors, alongside a literature review, identified four key issues: excessive overtime, low salaries, a strict punishment policy, and the company's remote location Among these, excessive overtime was chosen as the primary focus for resolution in this report due to its feasibility Relocating the company to a more central area is not an immediate option due to high costs and time constraints, while the punishment policy, established during the company's early days, cannot be altered quickly.
Changing company policy requires careful consideration and time Due to budget constraints, significant salary increases are not feasible, and the owner believes the current salaries are appropriate for employees Consequently, excessive overtime has been identified as a key issue that necessitates an effective resolution plan.
D/ INITIAL CAUSE AND EFFECTS MAP
CAUSES AND EFFECTS OF THE REAL PROBLEM
Causes and effects from Human Resource perspective
The factory supervisor's inadequate training has led to a significant skills gap in planning, resulting in the acceptance of large orders despite a shortage of production workers Consequently, employees are forced to work excessive overtime, leading to increased pressure and ultimately causing many to resign from their positions.
Main reasons of lack of training
- Company considered carefully the education background and working experience to select the candidates for recruiting position.
- The boss believed that training in the real job was more effective rather than studying theory in class.
Mrs Trang, an HR officer, identified a significant issue with the supervisor's lack of management experience and essential skills, such as forecasting and planning She noted that Nguyen struggled to create effective production plans, resulting in a shortage of workers during peak orders Consequently, she had to request additional recruitment from the boss or reassign workers from other factories, leading to serious staffing shortages This situation caused undue stress and pressure on the existing workers due to excessive workloads.
Mrs Trang echoed the Vice President's concerns, identifying inadequate training as the primary issue She emphasized that Nguyen's insufficient training resulted in a deficiency of essential skills, particularly in forecasting and planning.
The reasons of lack of training was that company considered carefully the education background and working experience to select the candidates for recruiting position.
The boss believed that on-the-job training is more effective and cost-efficient than traditional schooling Mrs Trang noted that the company often encourages experienced employees to mentor newcomers, as hands-on experience helps new hires adapt quickly to their roles She emphasized that courses often focus on theory, leaving employees ill-prepared for practical tasks, which can lead to higher training costs.
Receiving too much orders
As a business grows, it experiences an increase in customers, orders, and workload To efficiently boost output while minimizing costs, many companies resort to overtime work as a practical solution.
There are many reasons of long working hours such as increase salary, the increase volume of work, culture of long working hours, occupational commitment, and career enhancement (IES 13 )
Parapex's third factory supervisor faced an overwhelming number of orders, neglecting to assess the factory's capacity and workforce To meet deadlines, she opted for overtime work as a solution to ensure timely order fulfillment.
2) Effects of poor decision making
Managerial decisions can significantly impact both departmental issues and overarching company goals, with profitability being a crucial factor Poor decision-making by managers can lead to serious financial repercussions for the organization.
Poor decision-making can significantly impact human resources and production, as highlighted by Edmunds Overburdening staff may lead to the loss of key employees, underscoring the importance of balanced workload management.
3) Decision making skill and reasons of poor decision making
The role of a "decider" is vital in business, as highlighted by Alton 19 Decision-making is a skill that requires training and practice; without experience in this area, individuals may struggle to perform effectively.
There are many reasons to make the poor decision.
A key reason for decision-making failures is insufficient research Managers must invest adequate time and effort to analyze potential costs, risks, existing human resources, and the outcomes of similar past decisions before committing to large orders.
Alton 19 also stated that the second reason was “going on instinct” It means that some managers made decisions based on charisma and intuition.
Many managers rush decision-making due to time pressure, fearing that prolonged deliberation could have negative consequences However, this haste often results in poor choices, which can lead to even more severe repercussions.
Overall, decision making was considered as a necessary skill that needs to be trained for the better working performance.
In the case of Parapex, the supervisor's poor decision to accept large orders without considering human resource and production challenges resulted in excessive overtime for workers This left employees fatigued and with little time for family, ultimately leading to a workforce strike that caused a decline in production, sales, and profits.
The Ministry of Business, Innovation and Employment highlights that a deficiency in necessary skills and capabilities is a key factor contributing to employees' inability to meet required quality standards in their work.
Especially, Odendaal 21 mentioned that lack of skills was the reason why many small, medium sized companies and micro enterprises (SMMEs) failed.
Forecasting is the process of predicting future events based on available information It encompasses two main types: qualitative forecasting, which relies on non-numerical data, and quantitative forecasting, which uses numerical data for future planning.
Forecasting is a crucial leadership skill that plays a significant role in managing an organization's profitability It enables leaders to identify errors and recognize new factors that may impact performance Additionally, effective forecasting acts as a safeguard against potential failures, allowing for the early detection of potential problems.
In Parapex case, if the supervisor of factory was good in forecasting, she could predict the potential problems that resignation of workers because of the pressure of job.
Planning skills are essential for anticipating future challenges and achieving goals while minimizing emotional, financial, physical, or social difficulties These skills enable effective decision-making and implementation.
Effective planning is a crucial skill for every successful entrepreneur, as one misstep can jeopardize the entire business Entrepreneurs must carefully evaluate risks, benefits, and costs when developing their strategies Additionally, considering time and budget constraints is essential to transform their plans into reality.
Hill 26 stated that planning skill was so important in business because it assisted for efficient use of resources The planning provided the necessary information for making decisions about how to allocate resources effectively in order to reach the goal Planning also assists to maximize productivity and avoid the waste on projects.
Parapex Company faced significant challenges due to its factory supervisor's inadequate forecasting and planning skills By accepting large orders without considering potential issues related to human resources and production capacity, the supervisor inadvertently forced workers to endure excessive overtime This led to employee fatigue and a lack of time for family, ultimately resulting in a workforce strike that caused a decline in production, sales, and profits.
7) Causes of lack of working skills
• Employees were promoted before being ready
Decision making skill and reasons of poor decision making
The role of a "decider" is vital in business, as highlighted by Alton 19 Decision-making, like any other skill, requires training and practice; without experience in this area, individuals may struggle with their performance.
There are many reasons to make the poor decision.
One major reason for decision-making failures is insufficient research Managers must dedicate adequate time and effort to investigate factors such as potential costs, risks, current human resources, and the likely outcomes of large orders, as well as the impacts of similar past decisions.
Alton 19 also stated that the second reason was “going on instinct” It means that some managers made decisions based on charisma and intuition.
Many managers make hasty decisions due to time pressure, fearing that prolonged deliberation may have negative consequences Unfortunately, these rushed choices often result in even more significant problems.
Overall, decision making was considered as a necessary skill that needs to be trained for the better working performance.
In the case of Parapex, a critical issue arose from the supervisor's poor decision-making, as she accepted large orders without properly forecasting the impact on human resources and production capabilities This decision forced employees to work excessive overtime, leading to fatigue and insufficient family time Consequently, the workforce became disengaged, resulting in decreased productivity, sales, and overall profit for the company.
Lack of required skill
The Ministry of Business, Innovation and Employment identifies a significant issue in the workforce: the lack of essential skills and capabilities among employees, which hinders their ability to meet required quality standards in their work.
Especially, Odendaal 21 mentioned that lack of skills was the reason why many small,medium sized companies and micro enterprises (SMMEs) failed.
Forecasting skill
Forecasting involves predicting future events based on available information and can be categorized into two main types: qualitative and quantitative forecasting Qualitative forecasting relies on non-numerical insights to make predictions, while quantitative forecasting utilizes numerical data to inform future planning.
Forecasting is a crucial leadership skill that helps organizations manage profitability effectively It enables leaders to identify errors and recognize emerging factors, thereby safeguarding against potential failures Additionally, forecasting serves as a proactive approach to detect potential problems early on.
In Parapex case, if the supervisor of factory was good in forecasting, she could predict the potential problems that resignation of workers because of the pressure of job.
Planning skills
Planning skills are essential for anticipating future needs and achieving goals, helping individuals to navigate potential emotional, financial, physical, or social challenges These skills enable effective decision-making and implementation, ensuring a proactive approach to life's obstacles.
Effective planning is a crucial skill for every successful entrepreneur, as a single misstep can jeopardize the entire business Entrepreneurs must carefully assess risks, benefits, and costs while formulating their strategies Additionally, it's essential to factor in time and budget constraints to ensure that their plans can be successfully implemented.
Hill 26 stated that planning skill was so important in business because it assisted for efficient use of resources The planning provided the necessary information for making decisions about how to allocate resources effectively in order to reach the goal Planning also assists to maximize productivity and avoid the waste on projects.
Parapex Company faced significant challenges due to the supervisor's inadequate forecasting and planning skills By accepting large orders without considering the implications for human resources and production capacity, the workforce was pushed to work excessive overtime This led to employee fatigue and a lack of personal time, ultimately resulting in a work stoppage that caused a decline in production, sales, and profits.
Causes of lack of working skills
• Employees were promoted before being ready
Bernard 27 also explained the cause of lack of skills was that the employees were promoted before being ready or they were assigned a new set of job duties In this case, some extra training or mentoring would solve the problems of performance.
Similar to Bernard, George 28 stated that employers should have ensured that employees had enough training before moving them into a position of greater responsibilities or before changing their job duties.
Mathis 29 stated that the employees would have lack of skill and perform at low level if they did not obtain enough training in all aspects of their job Mathis 29 also provided some reasons for lack of training:
- Avoiding training cost: The employers assumed employees had enough knowledge and skill to avoid the training cost
- Poor selection: The employer believed in the employee’s resume or application without testing carefully.
Many leaders mistakenly believe that sending employees to training automatically ensures they are adequately trained This often results in a lack of follow-up, as employers fail to debrief employees on their learnings and how to effectively apply their new knowledge and skills in the workplace.
Employers often trust in on-the-job training, believing that employees gain valuable skills and experience more effectively through real work situations than through traditional schooling This approach emphasizes practical learning, allowing employees to develop their expertise while contributing to the organization, ultimately reducing the time and costs associated with formal training programs.
• Skills not match with the job
Mathis 29 also stated that employees will perform at a lower level if “their skill set does not match the job” Sometimes, managers recruit an employee with one particular job but then, assigning entirely different tasks In addition, managers sometimes arbitrarily stop employees from their assignments to execute other special projects.
In the Parapex case, the supervisor lacked essential skills due to insufficient training upon her promotion to manager This deficiency stemmed from three main factors: the company's desire to minimize training costs, inadequate candidate selection based solely on experience and certifications without assessing actual skills, and a belief in on-the-job training as a superior method The company prioritized real-world experience over formal training programs, ultimately impacting the supervisor's effectiveness in her role.
Receiving too much orders without consideration Lack of required skills Poor decision making Excessive working overtime
High Turnover Rate Avoiding training cost
Believing in on the job training
POSSIBLE SOLUTION AND ACTION PLAN
Possible solution
Bong 31 indicated the steps employer can take to react an employees who has low performance because of lack of skills or knowledge to perform their job responsibility.
To address performance issues effectively, employers should meet with employees to identify the underlying causes Bong 30 emphasizes the importance of understanding employee motivation and willingness to improve If employees are committed to overcoming challenges, the employer can collaboratively develop a plan to resolve these issues During these discussions, it is crucial to address any mistakes or quality concerns directly with the employees.
- Develop a performance improvement plan: the performance improvement plan needs to ensure the agreement between employer and employee The employee needs to take responsibility for their own development (Bong 30 )
There are many ways to solve the problem of lack of skills and working ability.
MindTools 31 indicated five main ways to overcome the performance problem caused by lack of skills and ability.
- Resupply: provide the resources to do the job This assists to ensure that the employees have enough what they need to perform well and meet the required quality.
- Retrain: provide additional training to employees “Explore with them whether they have the actual skills required to do what's expected”.
- Refit: when two above measures are not sufficient, the employer needs to refit the job to employees This means some parts of job should to be reassigned.
If refitting a poor performer’s role proves ineffective, employers should consider reassigning them to a position with reduced demands This may involve lowering the requirements for responsibility, technical knowledge, and interpersonal skills, ultimately fostering a more suitable work environment for the employee.
- Release: this is the final option for poor performer.
Similar to Bong’s opinion, the Ministry of Business, Innovation and Employment 20 indicated “training and development opportunities as a part of performance improvement plan” The Ministry of Business, Innovation and
Employment 1 also mentioned that if the employee fails to develop the required skills, the following steps may be conducted such as reassignment of duties, or move to another area to obtain a better job fit Finally, recruitments process should be reviewed to ensure the selection of the appropriate employees to the recruiting position.
Action plan
4 - Put item 2.3 (Reasons of High turnover Rate) after analysing the data and exploring the tentative problems
5 - Revise the Initial Cause and Effect Map 27
6 - Numbering parts in page 27, page 35 27 to 35
(Ký, ghi rõ họ tên)
Lecturer’s Name Associate Professor : Mrs.Le Thi Thanh Xuan
Title of Assignment Excessive working overtime in Parapex Company.
Student Name Nguyen Nhat Tuong Vi
Contact Number or Email Nguyen.nhat.tuong.vi@gmail.com
I hold a copy of this assignment if the original is lost or damaged.
I affirm that this assignment is entirely original and has not been plagiarized from any other student or source, except where proper credit is given.
No part of the assignment/product has been written/produced for me by any other person except where collaboration has been authorised by the subject lecturer/tutor concerned.
I understand that my work may be reproduced and submitted to plagiarism detection software, which could retain a copy in its database for future checks on potential plagiarism.
Signature: Nguyen Nhat Tuong Vi
Note: An examiner or lecturer/tutor has the right not to mark this assignment if the above declaration has not been signed)
Excessive working overtime in Parapex Company
University of Economics Ho Chi Minh city
Lecturer: Dr.Le Thi Thanh Xuan
Many organizations resort to overtime as a quick fix for increasing output and addressing unexpected challenges, but excessive overtime can lead to serious negative consequences, including health issues, safety risks, decreased productivity, high turnover rates, and family life troubles, ultimately harming the business in the long run This thesis investigates the issue of excessive overtime at Parapex Company, utilizing qualitative methods such as in-depth interviews with key stakeholders to understand the underlying causes and develop effective solutions Key symptoms identified through interviews with the HR Department include high employee turnover and declining sales performance Interviews with former employees revealed their reasons for leaving, while discussions with the Vice Director and factory supervisor provided further insights into the situation The analysis uncovered four primary issues: excessive working overtime, low salaries, a strict punishment policy, and the company's remote location, with excessive overtime being prioritized for resolution due to its feasibility Further interviews highlighted that the supervisor's poor decision-making in accepting large orders without adequate consideration of workforce capacity, coupled with a lack of essential skills in forecasting and production planning, contributed significantly to the overtime problem The action plan developed is based on potential solutions derived from literature reviews and recommendations from the problem owner.
2.2) Definition and calculation of turnover rate 13
A/ INTERVIEW TO RECOGNIZE THE PROBLEMS 16
B/ LITERATURE REVIEW OF THE PROBLEMS 20
C/ MAIN PROBLEM IS SELECTED TO BE SOLVED 27
D/ INITIAL CAUSES AND EFFECTS MAP 27
PART 3 - CAUSES AND EFFECTS OF THE REAL PROBLEM 27
3.1)Interview 1) Causes and effects from Vice Director perspective 28
2) Causes and effects from Human Resource perspective 29
2) Affects of poor decision making 31
3) Decision making skill and reasons of poor decision making 31
7) Causes of lack of working skills 33
PART 4 - POSSIBLE SOLUTION AND ACTION PLAN 35
2) Solution from problem owner’s perspective 36
Founded in Vietnam in 2000 with 100% foreign investment, Parapex Company specializes in the production and distribution of a diverse range of sport kites and paragliders The company's high-quality products are exported to various countries, including England, Russia, the Netherlands, Italy, France, and Germany.
Our mission is to provide the most comprehensive selection of gliders available, catering to every skill level from beginners to world champions, and accommodating all styles of flight.
Parapex ensures top-notch quality by sourcing materials from trusted suppliers and conducting thorough inspections at multiple production stages Each product undergoes rigorous final checks and is test-flown before delivery Additionally, the company offers comprehensive service and technical check-ups for the wing, guaranteeing optimal performance for clients.
Products: There are six main types of product which include Paragliders, Paramotor, Speed Wings, Land Kites, Snow Kites and Kitesurf.
(Note: Picture of products of Parapex)
Vice-Director (Production) Office Manager st
Import Dpt (1 Leader, 2 staffs & 5 workers) nd
1 IT staff Export Dpt (1 Leader, 2 staffs & 8 workers) rd
4 Factory (1 Supervisor, 100 workers) Pattern Dpt (1 Leader, 2 staffs & 8 workers)
Testing Dpt (1 Leader, 1 staff & 6 workers)
The company boasts a substantial size, featuring six factories and a central office, employing over 600 workers alongside approximately 30 office staff Rigorous recruitment and testing processes are implemented to guarantee exceptional workmanship and sewing skills among the workforce.
The Chief Executive Officer (CEO) holds the top position in a company, bearing ultimate responsibility for its overall operations The CEO is empowered to sign crucial business contracts that ensure the company's best interests are served.
1 3 that, The CEO is responsible for making relevant decisions to ensure the sustainable development of company.
Office Manager: is responsible to manage HR, IT, Admin and Accountant and inform to CEO the operation of these department.
- IT Staff: manage the software of company, ensure the good software for every day operation.
- HR: includes 3 HR staffs who is responsible for recruiting, timekeeping, managing insurance and salary of staff and workers, and solve all problems related to HR.
- Admin: is responsible for all tasks related to admin such as stationery order, arranging business trips, receiving and transferring outside phones or mails.
- Accounting: chief accountant allocates the financial resources to maximize company’s wealth and profitability and 2 accountants are responsible for all tasks of accounting such as payment, tax, and assets managing.
Vice Director: is responsibility for the productivity and efficiency in the chain of production.
The Import Department consists of a manager and two staff members responsible for liaising with local and international suppliers to procure materials for production while managing the raw material inventory Additionally, they handle all documentation related to customs and import duties To support these activities, five workers assist in organizing materials within the inventory.
The Export Department comprises one manager and two staff members responsible for customer communication regarding product exports and invoice issuance Additionally, there are eight workers dedicated to supporting export operations, including the preparation of goods for distribution.
- Pattern Department: includes 1 manager and 2 staffs who design, draw patterns, choose the suitable materials and create molds for production There are 8 workers to support work related to pattern.
- Testing Department: includes 1 manager and 2 staffs who check the products carefully before distributing to customers.
- 6 production factories: Each factory includes one supervisor, 4 leaders and near
A supervisor oversees a team of 100 workers in a factory setting, ensuring the efficient management of the production chain Each factory specializes in manufacturing a variety of products, including paragliders, paramotors, speed wings, land kites, snow kites, and kitesurfing gear.
- Company will pay 13 th month salary and bonus for employees at the end of the year.
- Company will evaluate performance each year for increasing the salary and promotion.
- Employees will receive the bonus each month base on their performance.
- Employees will receive the bonus on public holidays
- Company will organize one trip/year for employees.
- Annual health check one time/year
- Company will organize training courses for new employees or new products.
Employees are required to work 8 hours daily from 7:30 AM to 4:30 PM, Monday through Saturday, with a one-hour break included Saturday work is limited to a half-day, totaling 4 hours, and any overtime is compensated at 150% of the regular salary Additionally, on Mondays, Wednesdays, and Fridays, employees will extend their hours until 8:00 PM, also earning 150% for any overtime worked during these days.
- Employees have to work on-time If they come late or stop to work soon, they have to inform to the manager and provide the relevant reasons.
- Employees have to inform for manager in 3 days before they take leave In the special case, they have to phone to manager and explain the reasons for leave.
- Do not bring food or beverage into factory except purified water.
- Do not use phone into factory, especially in working time.
- Do not accept fighting, arguing loudly, dishonor or sexual harassment with other employees.
- Do not repair the products Employees have to inform to manager to solve the defective goods.
- Do not disclosure the confidential information of company and cause any disadvantages or bad influence to the image of company.
Employees who commit a single infraction will receive a reprimand report and forfeit their monthly bonus However, repeated violations may lead the company to make the decision to terminate employment.
The third factory employed approximately 75 workers, with 12 dedicated to skateboard production, 55 focused on kites, and 8 responsible for quality control The supervisor frequently toured the facility to ensure workers maintained their focus on production The factory environment was notably quiet, with the only audible sounds coming from the machines While the kite production area featured only sewing machines, the skateboard section was equipped with a variety of machinery.
The skateboard production process involves various machines, including CNC machines, drill machines, veneer press machines, and side sealer machines, alongside numerous components such as wheels, footstraps, griptapes, decks, and axles Workers appear focused yet visibly stressed, indicating a high-pressure environment Many seem fatigued and rushed in their tasks, highlighting a noticeable shortage of labor in the skateboard manufacturing chain compared to other production lines.