Solution for ineffective leadership in cubes asia

UNIVERSITY OF ECONOMICS HO CHI MINH CITY International School of Business Tran Le Hoang Yen SOLUTION FOR INEFFECTIVE LEADERSHIP IN CUBES ASIA MASTER OF BUSINESS ADMINISTRATION Ho Chi Minh City – Year 2018 UNIVERSITY OF ECONOMICS HO CHI MINH CITY International School of Business Tran Le Hoang Yen SOLUTION FOR INEFFECTIVE LEADERSHIP IN CUBES ASIA MASTER OF BUSINESS ADMINISTRATION SUPERVISOR: DR PHAN THI MINH THU Ho Chi Minh City – Year 2018 SOLUTION FOR INEFFECTIVE LEADERSHIP IN CUBES ASIA TABLE OF CONTENT Executive summary Chapter Company background 1.1 1.2 Cubes Asia history and organizational structure Cubes Asia customer and proportion of sales by channels .7 Chapter Problem identification 10 2.1 General symptoms 10 2.1.1 The first symptoms: High employee turnover 10 2.1.2 The second symptom: Increasing employee complaints 12 2.1.3 The third symptom: Increasing customer complaints 13 2.2 Problem mess 14 2.3 Potential problems 29 2.3.1 The first potential problem: Poor employee training 31 2.3.2 The second potential problem: Ineffective leadership from managers 34 2.3.3 Central problem 36 2.4 Problem justification 37 2.4.1 Problem definition 37 2.4.2 Problem existence 38 2.4.3 Problem importance 42 2.5 Cause validation 45 2.5.1 Potential causes 45 2.5.2 Verify causes of central problem 46 Chapter Alternatives analysis and possible solutions 51 3.1 Solutions 51 3.1.1 Proposed solutions 51 3.1.2 Validated solutions 56 3.1.3 Alternative solution sets 60 3.2 3.2.1 Action plan 62 Objectives 62 3.2.2 Time line and cost estimation 63 3.2.2.1 Solution S1.2: Implement dedicated communication skill training programs 63 3.2.2.2 Solution S2: Implement strategic planning 66 3.2.2.3 Solution S3: Apply performance management and control framework 68 Conclusion 71 Chapter Supporting information 72 4.1Appendix 1: Samples of customer complaints 72 4.2Appendix 2: Company documents 78 4.3Appendix 3: Interview transcriptions 87 4.4Interview guide of interview ground 112 References 114 LIST OF DIAGRAMS Diagram - Initial cause effect map 16 Diagram - Updated cause effect map 30 Diagram - Final cause-effect map 49 Diagram – Proposed solutions for Cubes Asia’s central problem 60 Diagram – Solution set components 61 Diagram – Solution set components 61 LIST OF CHARTS Chart - Cubes Asia Organization chart, Feb 2018 Chart - Total sales by channel 2016 Chart - Total sales by channel 2017 Chart - Total sales by channel quarter 1, 2018 Chart - Total sales by channel quarter 2, 2018 LIST OF TABLES Table - Annual employee turnover 2014 - 2018 10 Table – Comparison of high and low performing managers 34 Table – Top five characteristics contribute to leadership inefficacy 39 Table – Top five indicators to evaluate leader effectiveness 40 LIST OF FIGURES Figure - Dimensions and categories of negative leadership and its consequences .42 Figure - Dimensions and categories of leadership and its antecedents 45 Figure – Stages of strategic planning process 54 Figure – Performance management and control framework 56 Executive summary Cubes Asia is a young company who develops quickly in recent years However, due to spending time to focus on sales and marketing, it is facing with several issues relating to personnel, customers, management system The research includes three important parts Firstly, it comes with the company background for readers to understand the company history, its customers, staffing, sales as well as the industry, the market Cubes Asia is in Secondly, the researcher identified problem through interviews and theories, it is found that the company is facing with poor employee training and ineffective leadership However, ineffective leadership has significant influences through most of variables Furthermore, the research presented the valid causes leading ineffectiveness leadership including personal traits of the boss, misuse of power from managers, poor communication between managers and employees, lack of financial and human resources, lack of strategic business plans, lack of internal and external control with the company context to contribute in later solutions Thirdly, there are solutions proposed and confirmed by employees through quick survey The alternatives plan are analyzed and presented which is a combination of developing communication strategy, implementing strategic planning and applying performance management and control framework The plan comes with total budget of 228.140.000VND in the duration of months for training programs, month for strategic planning and nearly month for applying performance management and control framework in Cubes Asia This total cost is feasible with the company who gained turnover of 54 billion and profit margin of approximately 30% in 2017 Furthermore, the ineffective leadership causes losing key customers which contribute – billion per year, losing money, business information and low productivity due to high employee turnover rate (over 25% through years) The presentation above support the readers have an overview on contents of this research From the work has been contributed, the full name of the study is "Solution for ineffective leadership in Cubes Asia" Chapter Company background 1.1 Cubes Asia history and organizational structure Cubes Asia was established in 2013 who specializes in distributing the top wellknown European coffee machines and grinders such as Melitta, Nuova Simonelli, Victoria Arduino, Animo, Cunill, Schaerer, Lelit etc Besides, the company also provides other related products such as coffee, blenders, juicers, water systems, milk frothers, etc to make a coffee competence that meets all customer demand The company is the pioneer in the field of trading professional coffee machines in Vietnam Its mission is to provide excellent products to enhance the quality of living, and we pride ourselves in customer satisfaction and faith Cubes Asia has built up a head office in Hochiminh (2013) then its three showrooms in Hochiminh (2016), Danang (2017) and Hanoi (2017) until now and it is expected to expand to other regions such as Nha Trang, Phu Quoc – all are potential markets to trade its main product line However, Cubes Asia is a small company that has over 40 employees in total until now The head office is responsible for all decision of the company as well as the main venue to take place most of training courses, official events, monthly meeting etc The company’s competitors who are also coffee machine distributors but from other manufacturers are Perfetto, Epicure, Quang Tan Hoa, Charles Wembley etc Among its competitors, Cubes Asia is considered as the leader of coffee machine distributor in Vietnam due to be pioneer and its high quality products Cubes Asia has a national presence, being in many areas around Vietnam by distribution system through dealers and agents: roasters (Shin Coffee, LaViet, Laha Coffee, Trung Nguyen, Cau Dat Farm, etc.), dealers (Phuong Binh, Tam Long, Meta etc.), Modern trade (Thien Hoa, Nam An etc.), Ecommerce (Yes24, Tiki, Sendo, Lazada etc.), Private agents (Barista, individuals, etc.) At Cubes Asia, most of decision is made by top managers who are founder, business development manager and company development manager In fact, the founder (boss) is always the person to make final decisions which are managerial, operational and business and other managers are those who implement and execute the boss’ decision In near future, the company expects to have complete organizational chart indicated as below: SOLUTION FOR INEFFECTIVE LEADERSHIP IN CUBES ASIA Chart - Cubes Asia Organization chart, Feb 2018 *(NN) means not yet available SOLUTION FOR INEFFECTIVE LEADERSHIP IN CUBES ASIA 1.2 Cubes Asia customer and proportion of sales by channels Cubes Asia target to both B2B and B2C customers who are resellers, agents, corporates, hotels, resorts, restaurants, coffee chains, coffee shops, households, individuals Among the company’s customers, it can be counted the most important coffee chains, hotel and restaurants as well as many other customers the company served around Vietnam such as The Coffee House, Trung Nguyen, Twitter Bean Coffee, Laha Coffee, Aha Coffee, Heritage Line, Khanhcasa, Caudatfarm, Hella, Piza 4P, Golden Gate, Novotel, Sol Beach, Part Hyatt, etc In general, B2B customers account for the overwhelming proportion of B2C customers The data of sales by channel from 2016 – 2018 is described below showing that B2B customers (Dealers, Roasters, Chains, HoReCa etc.) place extremely important role in the company turnover than B2C customers (Coporate, retails, showrooms, individuals) There are differences in the name and the way in dividing channels because the demands of splitting or merging sub channels by the time Chart - Total sales by channel 2016 Retail 16% SR 8% Dealer 31% Corporate 14% Horeca 31% Chart - Total sales by channel 2017 Own SR 13% Dealers 40% Retail 12% E-com/Mo.Tra 0% Coffee Client 3% Corp 8% Roaster 2% Ho.Re.Ca 17% Chain S tores 5% Dealers Ho.Re.Ca Chain Stores Corp Roaster E-com/Mo Tra Coffee Clients Retail Own SR Chart - Total sales by channel quarter 1, 2018 Co.Clients Retail 5% 3% Ecommerce /Modern… Own SR 14% Roaster 6% Corporate 1% Dealers 46% HoReCa 17% Chains 8% Dealers Corporate Co.Clients HoReCa Roaster Retail Chains Ecommerce/Modern trade Own SR with high employee turnover rate so I start with this and would like to know the reason why employees left company, what affect their decision How long had you worked for Cubes Asia? When did you start working at Cubes Asia? Tien: It’s too long for me to remember I only remember I had worked for Cubes Asia for years and left company last year (2017) Therefore, maybe I started working for Cubes Asia from 2015 Yen: At the beginning, you worked as sales executive, didn’t you? Tien: Yes And after that, I was proposed for Senior Sales Executive Yen: Which points does the company well? The good point etc Tien: I think the company has good compensation, it means salary, bonus, and good policies for customers Yen: What are the good policies for customers? Tien: For example, the company sell true and good products, aren’t similar to other companies which sell bad products Other company communicate different from the truth to lie customers Yen: Do you think the flexible working time is also the good point of the company? Tien: Yes I think so Yen: How about the relationship among people? Tien: I see it’s normal Of course, if some people who are suitable character for each other will communicate more to each other In work, everybody is just social to each other Yen: How about other aspect of good points? For infrastructure, does it support you much in your job? Tien: I think it’s ok Actually, I don’t pay much attention with all of that so when you mentioned, I will judge on that Yen: How you think if we compare with other companies? Tien: I think, about infrastructure, it’s similar to other companies For the featured points of our company, I think they are products, compensation Flexible time is also the same However, because I’m salesman so I think it’s not the point to me Yen: From 2015 – 2017, you remember how many people come in and come out company? Or the percentage Tien: I cannot remember but I think it’s about 20% or more Yen: Which position is the most unstable? Tien: Sales position, general admin I see these positions are easiest to leave Sales admin is also the same Yen: So sales team is the most unstable? Tien: When I still work for Cubes, I think the most changing position is general admin Yen: In your opinion, which factors affect on leaving decision of people? Tien: I think, firstly, after a long time to sell the products, we are not interested in that products any more Besides, with F&B Market, policies change too fast and I can’t catch up with it Also, the company structure is not clear, so people don’t know what is their benefit and responsibilities Actually, the cooperation among departments is not good so you will feel that you cannot continue working so you leave Yen: What you think about the policies change too fast? It’s because the policies change too fast or because people don’t meet the requirements to catch up with the new policies Tien: For example, the boss applies new policy, if we want to apply this to customers, we need time for them to accept However, if we change too fast, it will cause negative reaction from customers that influences us because I worked directly with them, they would tell me their problems If the things change like that, in the company, there are some departments are happy, others are not They are not happy because they don’t understand clearly about the policy, their benefit and responsibilities Therefore, I think it is the result of the unclear policy, not due to any individuals Yen: So, because the policies are unstable so it impact negatively on customers For you, these policies are not appropriate or… Tien: No I think the policy from the boss we need to follow We work for the company so we have to follow What I want to mention is the customers need time to adapt new policies Otherwise, policies change too much and we don’t work on only one channel, we work on a lot of channels, some channels gain benefit, some other channels lose benefit so they don’t want to work with us anymore Yen: What should the company do? Slow down the policy or consistent policy? Tien: It’s due to the boss We can’t change it because we are employed and work for him We have to follow Yen: You mentioned about unclear company structure, unclear responsibilities and benefit so it leads to unexpected conflicts So you think that these conflicts are the result of unclear company structure? Tien: As you know, the company has developed company structure, duties and responsibilities for each department, benefit etc However, at the end the opinions are not unified For example, if the sales team want other departments to support, the requests must be appropriate and clear We cannot ask them a job outside of their job description Therefore, if they don’t like, it’s just normal I think the structure is not good so everybody usually conflict each other Yen: Besides company structure, you think that the measurement system is not good? Because some people say that they feel unclear measurement system so it’s unfair to evaluate people’s performance Some people also mentioned that the boss is somehow emotional How you think about it? Tien: In fact, emotional character is common story If you like a person, you will prefer him/her Secondly, we are not a big company to have a KPIs like other company so that is normal thing In the past, I think that I had to work with customers and it’s very pressure but the boss thinks incorrectly about me so I don’t like that But now, I think it’s normal because each person has different opinion Because the boss doesn’t work directly with customers so his opinion is like that Yen: You think that the boss’ though is reasonable opinion or unreasonable? Tien: At the first time, I think it’s really difficult but later on, I think it’s normal You like or don’t like a thing is only a normal story Yen: For the training and direction, you think that the company is doing well? Tien: I think the company’s direction is very developing, when I still worked for the company, I saw that upcoming years the company will very develop The direction of the boss is very good, only the way of implementation, he needs to modify slowly and slowly for more improvement For direction of products and environment of approaching are very interesting Yen: What is the main reason that make you leave the company? Tien: As I mentioned, firstly, about environment of F&B Secondly, due to unclear company structure, it’s very hard to work with customers in this situation because we are the middle people between company and customers On the market, we talk with customers but at the company, we have to work with other departments When everything is unclear, people don’t know what to do, whether it is my responsibility or not, so people are not willing to For sales department, we have no choice, we only feel the conflicts and can’t move on Yen: So it’s about the unclear responsibilities, job description so sometimes there are jobs that we don’t know who they should belong to and who will support us Tien: Yes, that’s right Yen: If you can change something that keeps you stay with the company, what is it and how can it be changed? Tien: I think firstly we should clarify the company structure It means we mention the more specific, the better in every job among departments And when people finish the job, they should get benefit If there is no benefit, how comes they can support you best Yen: When you come in the company, did the company have job description? Tien: Yes, it had but it’s very simple so as you see, the nearly time, general admins several times but it hasn’t been successful Yen: Besides what we had discussed, you have anything to mention, about your job? Tien: I see it’s all main parts and also because it’s too long ago so I cannot remember much Yen: Do you remember how many people were there in 2015? Was it up to 20? Tien: No, I think it’s fewer, accountant, marketing, admin, salespersons, technicians I think it’s about 10 or something Yen: So in 2016, it’s still accountant, marketing, admin? admin is general admin or different? Tien: No, general admin is different I don’t remember much about that (From 20:00 – 31:21, little chatting for long time no talking) Interview transcript Type of research: Qualitative research – In-depth Interview Location: Coffee shop Interviewer: Tran Le Hoang Yen Interviewee: Pham Thi Yen Nhi – Position: Sales Executive (Current) Date: 24st August, 2018 Duration: 45 minutes 21 seconds Purpose: Explore the reasons of customer complaints and ideas for solutions to improve Content: Yen: Hi, Nhi Yen is researching a problem of the company so Yen need Nhi’s support All the information you share to me is confidential Thank you a lot for coming here Nhi: OK, Yen Yen: First of all, I see our company receives a lot of complaints, in your opinion, you think it’s true? Nhi: I think it’s right, about 70% When talking about customer complaint, they will be divided into groups: new customers and old customers For old customers, the most popular thing they complained is technical issues Yen: Is it about technical service? Nhi: Yes, service Yen: Is it after sales service? Nhi: Yes Usually, the old customers, when I started working for the company, for example, Kofi Kai, complained firstly the warranty period is still valid but the company is required them to pay money Secondly, they called a lot of times but no one answered the phone calls The service hotline must be available and answer customers If the technicians are busy and they cannot answer the phone when customers call in, they must call customers back later The customers call so many times so the technicians should know this is not the phone of insurance service, this is the important phone call of customers who need service Yen: Is it the hotline technical service or…? Nhi: I’m not sure about that Customers only told me that story I think it can be technical service hotline or the phone number of the technicians who used to install this customer’s machine The customer saved his phone number So that is the issue that the customer is not satisfied The customer said: “Ok I will pay the money but next time, I will not buy your company machines” Yen: Do you know why the warranty period is still valid but the technical team ask customer to pay money? Nhi: I don’t know but I know the warranty period is truly still valid The customer know our company from last Cafeshow exhibition and I met him on January, 2018 And from the show to that time, it’s only half year There is no reason that warranty period is invalid Yen: Do you know why? Nhi: I don’t know because at that time, I had just started working for the company, it’s the sensitive problem so I cannot ask technicians about that Therefore, I just told customer that next time, please call me for further support because if the customer call technicians, I cannot cover all And I apologized for that situation I had just worked for the company so I didn’t understand what was going on, all I could is apologizing customer about unclear event For some other customers, they complained that after selling products, we don’t have good technical service after sales Of course, salespersons have to take care customers However, technicians are the persons who technical service and sometimes they are not friendly with customers Yen: About the attitude of technicians? Nhi: Yes I explained to customers that this is because the technicians are tired or somethings and it’s not a big concern The technicians still well did their jobs as common If we evaluate the technical skills of our technicians, I think it’s quite OK I’m talking about other problem This procedure we should clarify more specific Yen: Currently, we don’t have clear procedure, don’t we? Nhi: Yes, that’s right Because I have worked for the company for long time, the technicians show me the way to do, otherwise, I don’t know how to deal with technicians At the beginning, how I can know how the procedure is This is the company’s system For example, if I want to know more about technical issue, who will train me, technician or technical department head, for example, Mr Phong, he has to train me all things relating to departments I directly work with Marketing doesn’t not relate to this Because only when the company has the promotion In this case, I don’t mention However, the related people, for example, accountants, sales admin, technicians who involve directly the sales procedure of mine must train me I can learn myself It should have a clear discussion In fact, I don’t see it’s clear in company procedure I know later on we will know how the procedure is but it takes a lot of time It means, for instance, if I want the technicians to service for customers, after customers call me, I have to send messages to technicians of which content is the name, phone number of customers, the specific status of the machines and which component is broken I cannot send messages to ask technicians call customers to fix machines without any description Technicians will not agree with that Ok, I accept that, I have to ask the situation in advance to see how it is For easy and simple cases, I consult customers by myself without technical support I think the company technical service is somehow OK Secondly, about the machine installation procedure, it’s completely unclear We cannot let a person many positions: sales, product, technical in the same time, especially, sales issues are very sensitive Because this position can get the benefit more from selling product If he does other position, certainly, the first person he wants to support is himself and this affects other people My last company, Perfetto (Cubes Asia’s competition), the procedure is very clear I have an annoying story At the first time, people told me if I want to pre-book machine, I have to inform Mr.Hien of warehouse team Ok, and I did However, waiting for long time later, Mr.Hien told me that if I want to book machine, I have to inform Mr.Phong No one tells me this issue, Mr.Phong doesn’t say that “all salespersons who want to book machine are required to inform me” to clarify anything If in the future, I don’t comply that, it’s my fault Furthermore, I think we have the rule “first come first serve” but I was very angry about an issue My customer booked a machine at Cafeshow event already but until July – month later, the machines arrived and all are out of stock immediately The result is I only delivered to customer only one machine while in the past, I used to fail losing machine for other salesman because I didn’t book officially to Mr.Hien, Ok, that was my mistake For that order, I only got machine but Mr.Phong took all other machines to deliver to his customers He told me his customers booked machine before I did Who know? All I know I booked machine before months At that time, as I remember that day is Thursday after a meeting Ms.Trang (sales admin) told me I don’t have enough machine to deliver to customers How come? I booked before months ago She said because the machines have to deliver to Mr.Phong’s customers How come my customer’s grand opening without machine? My order is asked to move for more week I directly asked Mr.Phong but he is elusory He explained something else but I don’t remember clear However, I am very angry because it’s not reasonable Later on, I am more aggressive with this issue and I asked any person to be responsible for that if the customer requires the reimbursement But, no one answers me I also complaint Mr.Hien but he said he didn’t know and I had to ask Mr.Phong Why in this company does every thing I have to ask Mr.Phong? In fact, Ms.Trang shared me the email that sent to all people exclude sales staff In that file, it addresses customer name, quantity of machine and sales in charge I saw up to or machines haven’t sent email to inform You understand what I mean? In that file, there is a column show the day confirmed email sent but there were two customers noted that in that afternoon he would send email That’s mean, Mr.Phong hadn’t sent email to Ms.Trang to book machine In this case, he put his customers in priority that deliver machines first although he hadn’t booked machine Why? I am very constrained but the problem is I know that email via Ms.Trang so I cannot argue with him Actually, it’s very difficult to find new customers and old customers almost don’t buy machine again For example, LaViet very long time later buys more machine And this old customer I have taken good care of them, send gift for holiday, TET and put effort into it Therefore, I see it’s very unfair You see, no one resolves this problem because he is sales manager I actually don’t agree with him For example, Mr.Si (former sales supervisor), maybe some people don’t like him but I think he manage people better than Mr.Phong Because he support sales members very well It means, he will resolve all sales member’s concerns If he can resolve problem, he will help us to it, if he cannot, he will consult us and give advices Furthermore, he stand out to protect the employee’s right Although, in the pass I don’t know the procedure, at first time he and I are in the same position, later on Mr.Axel promoted him into higher position, when I delivered machine to customers, I sent email without cc Mr.Si and he didn’t agree with that He and I had discussed together to clarify all things After that, I usually sent report to him every week That is…we only have a little trouble at this point It means, the leader doesn’t care he likes his members or not, all he cares is how the job clear and keep going Mr.Phong is sales manager but he doesn’t well his responsibility (16:14 – 19:00 little chat relating to an issues of the company, machine trouble with customers) Nhi: What is the purpose to have the management level? It’s because if the staff cannot resolve problem, the managers will solve it The first thing Mr.Phong should is not blaming for his staff but he has to resolve it Yesterday, when Mr.Axel faced with customer complaints, he tried to understand the problem and find a way to resolve However, Mr.Phong consecutively blamed for me I don’t deny that it’s my mistake Yesterday, Mr.Phong complained me: “Nhi, why don’t you resolve your problem with that customer but let Mr.Axel handle alone?” We have to remember that the customers are very angry, Mr.Andy (one of two customers), told me that I should stay inside The customers wanted to deal with Mr.Axel, I chatted with Mr.Anny last night and I thought the managers have power to make decision in order to deal with customers I don’t have power to make decision so I don’t know what to if I face with them If I were Mr.Phong, I would resolve the problem first because any way, I am still the leader who need to protect his staff first Every thing I I report to him Actually, I have never agreed with him (21:40 – 23:30 little chat relating to an issues of the company, machine trouble with customers) Nhi: A manager who too focuses on his own benefit cannot develop the company For other customer, my customer – CJ group which owns Tous Les Jours chain I have relationship with some people their – Ms.Thuy My former colleague when I worked for Perfetto Perfetto used to sell a machine to Tous Les Jours – M39 However, the machine M39’s tripod is too low so they want to change other machine Ms.Thuy worked with Mr.Phong and requested to change machine but Mr.Phong didn’t agree As I heard from showroom HCM staff, this customer is followed by Phuong Binh (Cubes Asia’s dealer) Phuong Binh hasn’t sold machine to Tous Les Jours yet However, I dealed and finalized successfully with Tous Les Jours with discount of 22% on machines because that is bakery chain Finally, when I was about to send contract to Mr.Phong, he said that I cannot sell to that customer because the dealer already followed Although I showed all my potential deals in monthly report, I show this customer twice, report last months and also last month, why did he say that he didn’t know? If I take care a customer who is followed by dealer, ok, I will let them Maybe he underrated me and though that I cannot deal with CJ group Don’t underrate me, if I want a contact from CJ, I will have it by myself I just need to make a call, I will know the phone number of contact person It’s very easy, Mr.Phong’s CJ The day I went with Mr.Si to meet customer at Havana, Mr.Phong told Mr.Axel that I stole his customer information on CRM system Mr.Si told me that but I don’t believed because I didn’t hear directly However, when I heard from Ms.Hương (HR executive) again, I truly believed Mr.Axel said “Nhi steal customer information of Mr.Phong This time, I will follow Phuong Binh to give Nhi a lesson” CJ is a group, they will not want to buy machine through dealer I told Mr.Axel, if we don’t take this deal, if CJ group finally buy from other competitor with other brands, don’t blame for me The customers shared with me what they wanted Mr.Axel said we should leave Phuong Binh it but he is afraid it affects my benefit No I don’t need that, I just want you make sure the customers will buy machine only from us or our dealer, not other brand of other competitors Who sells machine, I don’t care, but I need the customer buy Nuova brand because I don’t want to lose market share I asked Mr.Phong why he said I stole his customer information, he said he hadn’t said that I think it’s not professional way to work in the company Yen: You mentioned that the old customers face with the technical problems So is there any thing else? Nhi: About the price with dealer Customers say why our dealer breaks the prices The dealers offer discount of 15% In the pass, I used to sell a product with discount of 15% but Mr.Phong complaint why I put so low price, how come his dealers can sell products However, you see, his dealers also sell product with unreasonable prices Tam Long (dealer) gives discount of 18% but I only can give discount 15% maximum to my customers I don’t know how to Yen: How about the problem with new customer? Nhi: New customer is about price issue Furthermore, there are many case the technicians don’t support customers For example, on Saturday or Sunday, the company should have technician to take care customer He can be at home, not need to go to the office All he needs to is available when there is a customer call in Because Sunday and Saturday are very sensitive points However, the customers of Mr.Phong are well supported I know it’s a part of close relationship of technicians so Mr.Cuong and Mr.Dien support Mr.Phong I used to share with Maylis (Business development manager) about that Sometimes, I have to use my own money and relationship to install machines for customers Nhi know some technicians of other dealers so they help me without charges However, I don’t want to use the relationship like that, some problems we cannot solve by money That is the final solution Sometimes the customer has grand opening in the weekend, I have to ask a technician in my former company – Perfetto – to help me Yen: Besides that, is there anything else customers complain to company? Nhi: I think that’s all Customers usually see that the machine is good so they very little complain about the machine Yen: How you think about the turnover rate of the company? For example, customer service department Nhi: I think it’s due to the way how to work The boss changes too much For example, he asked customer service executive to a new form, but when the form is done, he doesn’t like it and want to change while that idea is his We shouldn’t like that It affects a lot of thing: firstly, it affects to the person who makes decision This person spends too much time to make decision and get no thing Secondly, it affects to other people, staff spend too much time to a job and it also affects to other jobs Yen: Do you think the job at the company is clear? Nhi: No It’s not absolutely clear About salary, it’s clear But in the job, it’s unfair That is a weakness of the company There is a favoritism in the work that comes from human Yen: How you think about the way to divide sales channel? Nhi: It’s totally unclear For the Aeon mall’s story, I feel it’s very bullshit In the past, Mr.Axel assign me that channel (modern trade) There is no reason that Ms.Sam sent email and cc me but discuss with Ms.Kim to something in this channel I don’t care who will take care the job, it needs to work and run However, at the first time Mr.Axel ask me to this not Ms.Kim Yen: Do you have any solution for all problems? Nhi: I only focus on sales department I think firstly, we need to clarify Mr.Phong to one single position, sales manager or technical department head He should single job Secondly, the way to put sales target The manager should be a person to cover all sales target then he splits it for all under member Thirdly, we shouldn’t have favoritism in the working place, only have right or wrong, not like or dislike The managers need to change their mind Every thing should be clear Yen: Thank you, Nhi Nhi: Thank you Interview transcript Type of research: Qualitative research – In-depth Interview Location: Company meeting room Interviewer: Tran Le Hoang Yen Interviewee: Do Thi Thuy Vy – Position: Sales Admin (Current) Date: 12rd August, 2018 Duration: 39 minutes 39 seconds Purpose: Explore the reasons of high turnover rate of the company and ideas for solutions to improve Content: Yen: Hello My name is Yen I’m working on a study for my MBA course relating to HR field in your company – Cubes Asia Through first round interview, it’s exposed that the employee turnover of your company has been quite high in recent years due to shortage of employee motivation So, I want to interview you to know more about it All information you provide will be kept confidential and used for research purposes only Could you tell me some things about you, your name and current position in your company is? Vy: Hi I’m Vy and I’m working at Sales Admin department of Cubes Asia and has worked here for over year Yen: Thank you So now you are working as full-time employee of the company at head office? Vy: Yes Full-time job at head office Yen: In general, how you feel about your job? Vy: I feel a little pressure due to environment around, boss and workload Yen: If you could assess your job based on satisfaction level from to 5, how you assess it? Vy: I think currently it has been at 6-7 Yen: So it is based on 10 score scale Vy: Yes In general I could say Yen: How you feel about your productivity at work? Vy: I always try my best to the job but I think my boss doesn’t highly appreciate it maybe my performance isn’t impressive as other else Yen: How about other reasons that make you dissatisfied with your job? Vy: The policy is not so clear here and job assignment is also not reasonable, some people have a lot of work but others are free Yen: Then you like your current job? Vy: For job, I really like it but not the human issue Yen: Could you please share more about your opinion? Which aspects you like in your job? Which not? Vy: Currently, I have worked as Admin supporting for Danang and Hanoi showrooms For job, I rather like it because I can make connection among departments, work with several departments Despite of high workload, I love this job so I still try my best to meet the job requirement For the reasons I don’t like with my job, they includes unclear job assignment among departments, so some jobs belong to other departments I also have to and it takes times Yen: What factors at Cubes Asia motivate you? Vy: I feel benefit for employee quite good, for examples, salary, health insurance, end year bonus Yen: I see you noted that although the workload is high but you can meet the requirements and it fits with your job descriptions, aren’t they? Besides above issues, you feel the company’s environment motivate you at work? Ms VY: Yes Some departments are well connected, supportive and I also fell happy at work but some other departments create pressure for me due to inconsistent personality Yen: As I understand that you feel quite good with your job in general because of good benefit May you explain more about it? For examples, salary, insurance, learning opportunities, how you feel about these components can meet your expectation or needs? Vy: Salary at the moment can meet my life needs but bonus level is emotional assessment of boss I don’t know how manager calculates it, or bias About health care, I think it’s OK However, about learning opportunities, when I sign employment contract, I see company promise that I have chance to take a barista course but in the end, I haven’t seen any course I’m willing to learn more about coffee industry but all things I have to learn by myself without any course Yen: How you feel about balance between work and life? Sometimes, it comes to a lot of work, you feel overload? Vy: It depends on different periods in a year In the beginning of the year, there are not too many orders, I feel OK But in the end of the year, I have to work more and I usually work overtime so it affects my life a little At present I have no children so it does not affect much but later with children it will affect more Yen: Do the company have benefit for overtime work? Vy: I haven’t received any benefit for extra time working However, in the future I think it is hoped be better when new general manager comes in Yen: Because it’s not often event, how you feel about it, it can be ignored or cannot? Vy: I think it can be neglected until now but later on I don’t know what will happen Yen: What other needs you want to receive at the company that haven’t met your expectation? Vy: I am just unhappy with employee assessment issue I feel I dedicate a lot but it’s not recognized correctly And some departments don’t really work but they still receive more recognition Therefore, I just want the company improves in this issues Yen: Does your company have travelling benefit? Vy: Yes The employees have chance to travel abroad but it’s different year from year depending on company performance That means we have chance to go traveling but going to domestic destination or abroad destination is depended on company performance Yen: We have just talked about essential needs that company provides to employees, now I would like to talk about working environment at Cubes Asia In general, what you feel about working environment at the company? Vy: As I mentioned before, almost departments support each other quite well but some departments are not concordant, so it makes some pressure Furthermore, the manager doesn’t assess employee fairly and equally creating a heavy atmosphere Yen: As I know, most of the companies have different departments and sometimes it occurs some conflicts, and also I guess that you used to work for several companies, so you feel the conflicts in your company are more than other companies, for other words, is it significant? Vy: It depends I think some cases the conflict is very strong but after that the manager has some solutions to handle it, in general, everything can overcome And I think it’s equal level comparing with other companies Therefore, it’s common I think and it’s the same with other companies I used to work for Yen: Which aspects you think the working environment is good at? Which not? Vy: People are supportive However, there is one point that needs to be improved Some employees need to change the way they the job, be more responsible Yen: So you think that working environment here is productive? Vy: I think the productivity depends on the vision of manager All employees are trying to their best but manager often changes his requirements in different ways Yen: If you evaluate yourself and other colleagues, all employees work well with their responsibility and productivity? Vy: Yes, we are all doing well We have to follow the boss Yen: Besides easy inclusiveness, friendliness How you think about respect among employees? Vy: Everybody respects each other in front, but from the back I’m not sure The boss is a bit phony I heard someone that the boss complained about me on my back but in front of me, he didn’t express anything Yen: So you think, actually, you are not respected? Vy: No, because I heard the boss talked more about other departments, not my department If it’s exist, just a few comments I think other people will more disturb However, I think it comes from angry words of the boss, in general, my boss is still OK compared to other manager in other companies I think Yen: As your sharing, you are working on suitable responsibilities, so you have any opportunities or challenges to the job? Vy: Currently, I satisfied with current job but I still feel something that doesn’t give development opportunities, maybe because of my job characteristics which is repeated job I’m considering how I deal with this issue Yen: Do you think that it comes from the orientation of the manager? Because as I know, when we want to develop, our boss is the person who affect our future most and support, orient our future direction How you assess this issue? Vy: I think a part of this issue comes from the manager, maybe he assesses me as good as his expectation so he doesn’t think he can direct me correctly Yen: So how does your manager assessment on employees at Cubes Asia? Vy: Many people said that he underestimates most of employees except one or two persons in the company I don’t know what he really wants His assessment on people is very emotional I think he doesn’t recognize people reasonably, he doesn’t expect employees can much for him so he puts employees in one fixed position Yen: Through previous interviews, I realize that all decisions is mainly determined from CEO – founder of the company I guess that in your company, it does have under level of supervisor, doesn’t it? Vy: Yes In general, the company structure is not clear and the lower level of manager only manages general issues Yen: Besides the boss you have described from the beginning until now, you have other upper manager or supervisor? Vy: Yes, I have but she has just left the company and the company is recruiting someone to replace her position Yen: Depending on your thought, what managers help you in your job and how? Could you please tell me about it? Vy: Managers always give excuse but when I express my difficulties in job, I think they don’t really help me to resolve it Therefore, I feel pressing with it Yen: Do you think this issue affect significantly on your performance? Vy: Yes I feel it affects a lot to my job because managers can direct employees, see qualities of the staff But the managers seem not to care employees and not to be helpful Yen: When you come to the company, you receive the support in term of coaching, training? Vy: Yes All things I need to learn by myself Yen: How about the communication of vision, strategies from managers to the employees? Vy: I still see the managers communicate with us but in the end, they make decision by their own though That means there are other ideas but it’s turned down Yen: After managers build up strategies, objectives for the company, are you clear about it? For examples, next year objective, strategies that company expects Are you clear about them? Vy: I think it’s vague, the boss is usually changing, for examples, sales target Yen: I feel that you will not be inspired the passion in your job? Vy: Yes Many morning I am so tired and don’t want to go to work Yen: So the motivation that you still work for the company, which factors motivate you to continue with your job? Vy: As my sharing, it comes from the company benefit that meet my needs and the support from other departments Yen: As my feeling, what is happening that are: firstly, un-objective assessment of the boss; secondly, the way managers inspire people at work, communicate strategies, objectives of the company; thirdly, there is no direction for employees to develop themselves; and these factors impact the employee motivation and intention at Cubes Asia Do you think that these factors are what other people in this company are facing with as well as other former employees? Vy: Exactly These are the main reasons making all people tired and discouraged In this company, there is the future seeing, only see what is happening in front of the eyes Maybe, some people are the same with me due to personal reasons they still cannot quit the job However, I still feel unsure future and unsure objectives Yen: How about the fairness and equity in your company? As you mentioned that the managers treat people unequally, so which points you think it’s unfair? For example, age, gender, ability, location, etc Vy: I think that the boss is very emotional, bias He likes the persons who often smarm him and he will put them in priority The workload is unequally divided, salary/bonus is divided emotionally Because the boss possesses different companies so he sometimes comes to the office Every time he comes to the office, some persons talks to him and he believes it Yen: Do you think that maybe the boss doesn’t know these persons handle less jobs? Vy: I think maybe he really doesn’t know, just depends on what he hears from some people Maybe he see that these people are talkative so he thinks these are good workers Moreover, the boss refer girls who are beautiful and have nice dress Yen: In your company, which factors does your company depend to reward or penalize employees? Vy: I see no penalty at my company, just some heavy words from the boss For rewards, I think it’s very emotional so I don’t know which criteria the boss bases on Yen: So is it the end year bonus or what others? Vy: It’s the end year bonus In last year end party, I see there are nonsense rewards that I don’t know what criteria they are based on Yen: Can you tell me more about it? Vy: I don’t remember so much For example, nice dress, sexy style etc Yen: Does the company have policy in manner of reward or penalty? Vy: No, the company doesn’t have these policy and also changes the policy frequently Yen: In your deep thought, you think that you will work here for long term? Vy: I’m similar to other people, I desire to have something for yourself so I would like to leave but currently I have some issues prepared for leave Yen: Usually, people use KPI to evaluate the performance, so which tool/method does your company use to evaluate employee performance? Vy: Only for sales The company evaluates whether sales meet target or not in monthly or quarterly For bonus of back office, I don’t know which criteria the manager based on to give bonus Yen: How about salary review? Vy: Salary is reviewed annually in the beginning of the year and it’s also emotional Yen: Does your manager make decision by himself or ask advices, feedbacks from several people or assessment table? Vy: There are feedbacks from several people but most of them are factions Therefore, I think it’s not fair The boss only asks his favorable persons but not all persons Yen: As you note that there is only one way assessment from manager and employees don’t review each other, also don’t review themselves? Vy: Actually, only this year, there is new innovation that the company has table of assessment for self-evaluation of employees, but not mutual review Yen: Could you please compare what you evaluated yourself with what you have received from the company? Are they compatible? Vy: I think they are not quite fit I don’t know how it is to other people I feel feedbacks I received don’t match with what I did in self-evaluation Yen: Do managers give you feedbacks in your job to make improvement? Is it frequent? Vy: No I haven’t received any feedbacks from my boss Even when I submitted the table of assessment, I don’t receive feedbacks from manager Yen: Which methods of assessment you prefer? For example, top-down method or down-top method? Vy: For me, I think we should listen to different sides: mutual assessment, self-assessment Yen: Besides these issues, would you like to share more about your current job relating to employee motivation in Cubes Asia? Vy: My supervisor has just left so I hope new supervisor will support me more in my job and provide me clearer direction and good policy for every person so it will improve the motivation of employee Yen: Thank you for your sharing All information will be kept confidential and support for study purpose only Thank you! 4.4 Interview guide of interview ground INTERVIEW GUIDE Introduction • Purpose of the interview Information security • Department, job title, job description of interviewee Warm-up questions What you feel about your job at Cubes Asia? (Describe general feeling in their job: happy? satisfied? productive?) Why? What you like/dislike about your job at Cubes Asia? Why? Main body of interview What motivates you and demotivates you at Cubes Asia (researcher explain job motivation if necessary)? Why? Prompt: Needs of employees, work environment, responsibilities, supervision, fairness and equity, effort, employee development, feedbacks How is the job meeting your personal needs? What you think about (prompt) at your company? Can you give some examples? Prompt: Salary, Benefit as holiday, education, insurance or bonus, etc.; balance at work, general feeling of one’s satisfaction with the current and desired state of being What is your opinion on Cubes Asia’s working environment? Why is it good or not good? Which points you think it’s good and which one needed to be improved? How about _ (prompt) in your company? Prompt: Productivity, respect, inclusiveness, friendliness How is the job you are doing at your company? Ask more about: Suitability of job descriptions, job challenges, recognition What your supervisors/managers to help you in your job? How they affect your job performance? Prompt: Teach, coach, develop subordinates? How they impact the organization’s goals, objectives and strategies to obtain the mission of company? The way they inspire subordinates, communicate and share the organization’s goals, objectives and strategies? How is it? Clear or not And what you feel? How are people treated at Cubes Asia in term of fairness and equity? Prompt: Age, gender, ethnicity, disability, sexual orientation, geographic location, or other similarly defined categories How is rewarding and penalizing policy at Cubes Asia? Give some samples What are development opportunities in your company? Can you tell more about it? What you think about development opportunity at your company? Less or more Prompt: Challenge jobs, learning opportunities, opportunities for advancement and other personal development 10 Which methods your company use to assess employee performance? How often your supervisors/managers give feedbacks to you? Do you have timely and open feedbacks from your managers? What is the methods to give feedbacks: one way or two ways or 360 degree? Can you describe your favorable methods to assess employee performance and give feedback? 11 Is there anything else you want to share? 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