Low level of motivation in data analysis team at imperial tobacco vietnam

UNIVERSITY OF ECONOMICS HO CHI MINH CITY International School of Business PHAM THI KIM HUYEN LOW LEVEL OF MOTIVATION IN DATA ANALYSIS TEAM AT IMPERIAL TOBACCO VIETNAM MASTER OF BUSINESS ADMINISTRATION Ho Chi Minh City – Year 2020 UNIVERSITY OF ECONOMICS HO CHI MINH CITY International School of Business PHAM THI KIM HUYEN LOW LEVEL OF MOTIVATION IN DATA ANALYSIS TEAM AT IMPERIAL TOBACCO VIETNAM MASTER OF BUSINESS ADMINISTRATION SUPERVISOR: DR NGUYEN THI MAI TRANG Ho Chi Minh City – Year 2020 TABLE OF CONTENT LIST OF FIGURE LIST OF TABLE Executive Summary Acknowledgements COMPANY INTRODUCTION .4 1.1 Company overview 1.2 Organizational structure PROBLEM CONTEXT 2.1 Symptoms 2.2 Symptom validation and justification 11 PROBLEM IDENTIFICATION 14 3.1 Problem mess .14 3.2 Potential Problems and validate the main problem 16 3.2.1. -.Income dissatisfaction 16 3.2.2. .Poor working environment 18 3.2.3. -.Low level of motivation 21 3.3 Updated preliminary cause and effect map 24 3.4 Problem justification .25 CAUSE VALIDATION 27 4.1 Potential causes 27 4.1.1. -.Lack of Intrinsic motivation 28 4.1.2. .Low level of Extrinsic motivation 29 4.2 Cause justification 31 ALTERNATIVE SOLUTIONS 33 5.1 Alternative solution 1: Eliminate benefits inequality 33 5.2 Alternative solution 2: Ensure the employees’ job security 36 5.3 Solution justification 38 ORGANIZATION OF ACTIONS 41 6.1 Contents of organization of action .41 6.2 Timeline of implementation 42 CONCLUSION 44 SUPPORTING INFORMATION 45 8.1 Interview Guide .47 8.2 Questionnaire 50 8.3 Summary of transcripts 51 REFERENCES 69 LIST OF FIGURE Figure ITVN Operation diagram Figure ITVN Organization Chart Figure Turnover trend - Talentnet – Mercer post survey report 2018 Figure Top & Bottom Turnover - Talentnet – Mercer post survey report 2018 10 Figure Turnover rate at ITVN 12 Figure Preliminary cause and effect tree 15 Figure Updated preliminary cause and effect map 24 Figure Cause and effect map 31 LIST OF TABLE Table Total employee turnover rate at ITVN .7 Table Breakdown employee turnover rate at ITVN in 2018 and 2019 Table Turnover rate of Data Analysis Team 11 Table Replacement costs of Data Analysis Team 13 Table Costs to implement solution 35 Table Costs to implement solution 38 Table Questionnaire 40 Table Survey results .40 Table Detailed action plan 41 Table 10 Implementation plan 43 Executive Summary Employees is often considered as the most valuable assets in all organizations Recruiting and retaining employees in organizations is not only tasks of Human Resources but also involves all other departments Therefore, managers and leaders in organizations should care about employees, understand their expectations as well as their difficulties, then give ideas to help organizations in establishing appropriate policies to attract and develop employees to retain them By doing so, organizations can enhance employees motivation and reduce employees turnover rate, which helps to increase employees productivity and company performance The purpose of this research is to find out the main problem and the root cause leads to the high turnover rate in Data Analysis team at Imperial Tobacco Viet Nam Representative Office recently With the secondary data provided by Human Resources Department and primary data collected during the in-depth interviews with three groups of the company’s leaders and the employees who are currently working in Data Analysis team and who are also left the company, it revealed that income dissatisfaction, poor working environment, and low level of motivation are potential problems lead to the high turnover rate in Data Analysis team at Imperial Tobacco Viet Nam Representative Office Further investigating the underlying problems by analyzing the interview results and using the theories from literature, the main problem is identified as the low level of motivation, especially extrinsic motivation, which caused by benefits inequity and job insecurity, that leads to the high turnover rate in Data Analysis team at Imperial Tobacco Viet Nam Representative Office After finding the root cause of high turnover rate, alternative solutions are designed and justified The solution to eliminate benefits inequity as well as reduce job insecurity by revising the company benefit policies and enhancing engagement meetings for sharing company strategies to the employees is suggested by the managers, selected by the indirect employees and supported by the company Director for execution Then, the detailed action plan of this solution is presented to the company for implementation to solve the problem Acknowledgements I would like to express my appreciation to all people who supported me during my studies First, I would like to send my thankfulness and special appreciation to my supervisor, Dr Nguyen Thi Mai Trang, who has kindly supported, guided, advised, and motivated me to complete this thesis Then, I would like to thank my managers, my colleagues at Imperial Tobacco Vietnam Representative Office who gave me chances for conducting interviews and spent their valuable times for giving me comments and opinions which helps me to come up the results of this thesis In addition, I would like to send my regards to all of my classmates of MBA for their support, encouragement and giving me strength in all the time writing this thesis COMPANY INTRODUCTION 1.1 Company overview Imperial Tobacco is a group of subsidiaries of Imperial Brands (1), one of the biggest corporations in tobacco industry in the world Imperial Tobacco subsidiaries manufacture and trade a range of cigarettes, tobacco products, cigars, and tobacco accessories such as papers and tubes Imperial Tobacco International Limited Company in United Kingdom has established its representative office in Ho Chi Minh city, Viet Nam since 1995 and the office is called Imperial Tobacco Vietnam Representative Office (ITVN) ITVN’s scope of activities is a liaison office, conducting market surveys, identifying and accelerating the trade opportunities in Vietnam market on behalf of the Head Office in United Kingdom ITVN is not allowed to conduct any directly profitable activities in Vietnam, but only supports the Head Office (Imperial Tobacco International Limited Company in United Kingdom) to boost sales of the company’s products in Vietnam market Therefore, ITVN is responsible for spending investments to increase the quantity of the company’s products selling in Vietnam market, because the more company’s products are sold in Vietnam market, the more profits the Head Office are earned The key product of ITVN is Bastos cigarettes, which are producing by local manufacturer under the licensing contract with Imperial Tobacco International Limited Company in United Kingdom Bastos cigarettes have been produced and sold in Vietnam market for nearly 25 years, and up to now, Bastos cigarette brand is in the list of top ten selling brands in Vietnam, gaining its market share around 5% (based on data of AC Nielsen 2018) Bastos cigarette brand is strength in mainstream segment, having price ranges from 10.000 dong to 12.000 dong per pack of 20 cigarette sticks The key competitors of Bastos cigarettes in the same price segment is Thang Long cigarettes and Sai Gon cigarettes, which are produced by Vinataba, a state-own corporation The operation diagram of Imperial Tobacco in Vietnam market can be described in the Figure as below: Imperial Tobacco International Limited Company in United Kingdom (Head Office) Supply materials based on licensing contract Earnings profits on material supplied and Royalty fees on products sold Dong Nai Food Industrial Corporation (Manufacturer) Fundin g for ITVN activiti es Imperial Tobacco Vietnam Representative Office (ITVN) Distribution channel of Bastos products in Vietnam market Investment to distribution channel to boost sales Distributors in Vietnam Figure ITVN Operation diagram (Source: ITVN Management Department) Besides, Imperial Tobacco Vietnam Representative Office inherits six values from Imperial Brands: we can, I own, I am, we surprise, I engage, we enjoy Those values are focused to employees’ competency, performance, motivation, and retention Furthermore, Imperial Brands has built the Leadership Expectations that give opportunities for not only leaders but also employees to drive performance, to take accountability, to build capability, to lead by example, to improve and learn, and to create great teams 1.2 Organizational structure At the end of the year 2019, ITVN has 20 direct employees who are working in departments in ITVN, which are: Operation Support, Human Resource (HR& Admin), Finance, Marketing, Sales, and Business Intelligence Besides, ITVN also has 12 indirect employees working in Data Analysis Team who are reported to Business Intelligence Manager of ITVN Those indirect employees working in Data Analysis Team are having their labor contracts signed with the labor supply agency of ITVN, Humidor Company Though having salary paid by ITVN through Humidor QUESTIONS and ANSWERS CODING (key answer) CATEGORY FINDINGS I don’t think it will take more than two Maximum Timing for Within two months for us to implement this solution, as two months action plan months Require No career Group development terms, and tracking of employees’ spending on training and results this task will not require much efforts from all Q8 departments In your opinion, you think the company should have clear career development plans to motivate the employees? Ms Tran We currently have clearly development plans Have Hanh for almost representative office based development employees, but not for agency’s employees plan for direct approval Reason that agency’s employees are reported employees as indirect employees, and our Group currently not focus on investment to Do not have indirect employees So, it is very difficult for development us to put this in the career development plan for plans, unless they are employed by the indirect representative office I think our Group also employees not want to increase direct headcounts at this moment as the Group wants to reduce Mr Tran their responsibility employment Understand that inonthis situation,structure it is difficult Need long Son for us to have a clear career path plan for term strategy my team But I think we should have a long term strategy for employee growth so that they feel engaged with the company Mr I not want to increase the number of Do not want Have long Andrew direct employees at this moment, because we to increase term strategy Wang need to have for business the Group approval for number of additional headcounts But I will embed to the Business Plan expansion QUESTIONS and ANSWERS CODING (key answer) for long term strategy for the next years, employees at CATEGORY FINDINGS which we will expand our business and our this time organizational structure Then once we have Group approval for the Business Plan, we Have plan for will definitely cover the development plans for business all the employees Q9 expansion Can you share some information regarding the business plan for the next years? Do you have any plans to expand the business and recruit more people? Mr Our business is normal as previous years, as Strengthen Long term Working on Andrew the tobacco industry is very challenging We business, strategy new strategies Wang need to strengthen our current business next expand the year, and expand the market coverage in the market next three years coverage Our Regional and Group are working on the New year strategies for new generation products, generation so I hope that our expansion and growth products Business Plan will be approved soon THANK AND CLOSE 60 8.3.2 Group 2: Employees who are currently working in Data Analysis team at Imperial Tobacco Vietnam QUESTIONS and ANSWERS CODING (key answer) CATEGORY FINDINGS GREETING AND INTRODUCTION Q Thank you for spending your time to have meeting with me today + How are you? How is your current job? + How long have you been working for the company? Ms I am working here for about years years Nguyen working at Truc ITVN Mr Phan I’ve just joined for months months Nhan Mr I am working with the company for year year Nguyen Tung MAIN BODY QUESTIONS Q1 How is your daily tasks? How you feel about your daily tasks? PROBE: Do you like your job? Are you happy with your Ms tasks? It’s good! It’s routine tasks, nothing Routine tasks Working Happy with Nguyen interesting, but it’s also no challenging I comfortable environment her job Truc feel comfortable doing my tasks Mr Phan I am new in the team and am still learning Easy tasks Working Comfortable Nhan environment from others, but I think my tasks are quite easy It’s ok for me to these types of Mr works It really enjoyed me I learned a lot working Enjoy tasks Working Nguyen here environment Tung Learn a lot Love his job QUESTIONS and ANSWERS Q2 CODING (key answer) CATEGORY FINDINGS Working Good environment workplace Do you have any difficulty in your daily tasks? PROBE: working environment, income, colleagues, line manager? Ms Very nice and convenient office Nice workplace Nguyen workplace Our working room and facilities and good Truc are very good and convenience My relationship manager and team members are very kind with colleagues Career and helpful I am doing routine tasks, Easy tasks opportunity No future plan wants tohere maintain for long term I Helpful people Mr Phan People are this veryteam helpful Whenever Working Friendly Nhan environment environment nothing interesting, and it is also no Do not know challenging My tasks are easy that I am about future familiar to However, I really don’t know what I will be in the next three years And I am not sure if the company have troubles in my work, they will teach me and help me to settle it, especially my Mr manager This task is my major subject in university Applying Working Friendly Nguyen so I can apply my knowledge to my knowledge environment environment Tung tasks I really love this job My manager Working Comfortable environment and and people in my team teach me a lot People here are very friendly and helpful This is a great place to work Q3 How you think about working environment in the company? Ms The office workplace is nice It is Nice and Nguyen convenience for me to travel from home Convenient Truc to work Other people are very kind workplace However, I don’t see any development plan No career in my career, as I am doing the same tasks development in the convenient Career growth workplace, but QUESTIONS and ANSWERS CODING (key answer) past two years Though my line manager No career CATEGORY no future teaches me a lot in my works, but I don’t growth see any career growth opportunity here career growth opportunity Mr Phan My teammates are very kind to me, and Kindness Nhan FINDINGS Relationship Friendly and also other people in the company are people good very nice People here are very supportive environment Whenever I have troubles in my work, Nice workplace Working they guide me and help me to settle it, conditions environment especially my manager The office workplace is very quiet so we can easily Mr Nguyen Tung Iconcentrate really lovetothis My manager and job our tasks people in my team teach me a lot Love the job Motivation Helpful Love the job, but insecure However, I don’t know how long the colleagues company will keep our team here It seems that the But feel job job makes him demotivated company strategy will change, and it may not insecurity require our team any more That makes me feel and uncomfortable and demotivated Q4 demotivated What you think about your salary? How is your opinion on HR policies? Ms I have yearly salary reviewed and increased, Have yearly Income Salary is Nguyen so I think my salary is acceptable Company acceptable Truc My labor contract is not signed with the Have less policy Unequally salary review representative office, so I don’t have benefits than benefits some benefits that other representative other people Labor contract office based people have It makes me Feel apart from is not sign think that I am working here as a the company with contractor, apart from the company That representative demotivates my working spirit office QUESTIONS and ANSWERS CODING (key answer) Mr Phan Well, I have just graduated for one years, Happy with CATEGORY FINDINGS Company Salary is ok Nhan policies so I am happy with the salary that the salary company is paying me I still need to work for sometimes to have more experiences for my better career path Regarding the company policy, Unfair some Do not have benefits policies are not applicable to us, such as some monthly telephone fees allowance, taxi benefits as usage and travel policy Those policies are others only applicable for representative office staff That is unfair for us as we are working in the same office and for the Mr same company My salary is not very attractive I know that Salary is not Income Yearly salary Nguyen the salary will be reviewed and increased attractive dissatisfaction increase is not Tung every year, but the percentage of much increasing is not much Besides, our team don’t have some benefits Demotivated that others have, this makes us feel Unequally benefits unequally treated and demotivated Q5 What is the worst point makes you dissatisfied in your job? Ms I am not sure whether the company will Not sure if Nguyen continue to sign the labor contract with contract will Truc me I asked my manager but he was not continue be sure about the future plan This makes me signed feel unstable working here and dissatisfied Feel unstable me I am worried about my future since I have unsecure job and no career development plan, that makes me demotivated Motivation Unstable job No future plan QUESTIONS and ANSWERS CODING (key answer) Benefits Mr Phan Unfair benefits are applying for our team Nhan CATEGORY FINDINGS Company Unfair policies benefits Mr There is no career development, no No career Development No career Nguyen career growth plan growth Tung career development plans reduces my No career opportunity here No development working inspiration and demotivates me growth opportunity Q6 Do you have any suggestions to improve your job satisfaction? Ms I want to contribute my knowledge to work Long term Official Nguyen for employee Truc Therefore, I would like to have a long- a long time with the company contribution term labor contract so that I will not worry about my future Mr Phan Company should change the policies that Current Company Improve Nhan policy benefits the current policies should be applicable policies should for all staff, not distinguish between be changed representative office based staff and Engagement agency’s staff, as all of us we are working More activities for ITVN In addition, we would like to have more work- together activities so that we feel as one team working here Mr I want to know about the company Want to know Future Nguyen strategies opportunity Tung opportunity to see if any growth company The development plan is strategy and applied for the rep office based people but future growth not our team, so I am not sure about our Q7 Do future you have intention to find another job? Career growth QUESTIONS and ANSWERS Ms Well, if I feel unsafe with my career, I Nguyen should think about that option CODING (key answer) CATEGORY FINDINGS Truc Mr Phan I am quite new in this team and I know Nhan that I need to contribute to the company However, I hope that I will be deserved for my contributions fairly, otherwise I may not think about long term commitment to Mr the company It’s a hard question to answer I love this Nguyen job I like the people here But when I feel Tung unstable and no chance for growth, then I may start looking around for a better opportunity THANK AND CLOSE 8.3.3Group 3: Employees who had worked in Data Analysis team and already left Imperial Tobacco Vietnam QUESTIONS and ANSWERS CODING (key answer) GREETING AND INTRODUCTION Q Thank you for spending your time to have meeting with me today + How are you? How is your current job? + How many years you have been worked for the company? + When did you leave the company? Mr I was working there for about and a half year and Nguyen year I left there months before month working Thien at ITVN Ms Doan I had been working there for a year Hang year I have left ITVN for months CATEGORY FINDINGS QUESTIONS and ANSWERS CODING (key answer) CATEGORY FINDINGS Have higher Income Low salary MAIN BODY QUESTIONS Q1 Can you share the reason why you leave the company? Mr I got an offer letter with higher income Nguyen income Thien Ms Doan I want to have a challenging job Have a Hang challenging job Q2 Career growth What is the worst point makes you dissatisfied working in ITVN? PROBE: working environment, income, colleagues, line manager? Mr The working environment is not very Uncomfortable Working Poor working Nguyen comfortable for me Although everyone is working environment environment Thien very kind, but sometimes I feel isolated environment because I am unconfident to talk to others Isolated Isolated Benefits because of We not have the same benefits as Unequal personality other departments, our payday is also benefits traits later than them as they usually receive Unfair benefits their salary on 25th of very month but we usually receive on 30th of the month Ms Doan No career development No future growth No career Working Poor working Hang We are unequally treated, this makes me feel unhappy and disappointed growth environment environment Unequal No career We know that our team has less benefits than others although we are working in the same office treatment development Q3 What you think about your salary at ITVN? How is your opinion on HR policies? QUESTIONS and ANSWERS CATEGORY FINDINGS Mr CODING (key answer) The salary there is lower than my current Low salary Income Low pay Nguyen job dissatisfaction Unfair Thien attractive In addition, performance We benefits don’t bonus, are have except not Uncompetitive annual benefits for benefits the thirteenth month salary Unequal Some benefit policies are applied for only benefits representative office people and that is unfair for us since we are working for the same organization in the same office place I feel unhappy that the benefits of our team salary is lowerthere than the the same Ms Doan The is others higherin than my Have high Income Unfair benefits Hang dissatisfaction in ITVN current salary, but I am happy with my salary current job I am an official staff of my Happy with current company, I receive all benefits as current job other people here If I work well, I will Career growth have opportunities for my career growth Q4 Can you provide your suggestions to help us in improving our employees’ job Mr satisfaction? 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Analysis. ..UNIVERSITY OF ECONOMICS HO CHI MINH CITY International School of Business PHAM THI KIM HUYEN LOW LEVEL OF MOTIVATION IN DATA ANALYSIS TEAM AT IMPERIAL TOBACCO VIETNAM MASTER OF BUSINESS