Low employee motivation in JAMJA corp

UNIVERSITY OF ECONOMICS HO CHI MINH CITY International School of Business Tran Ngoc Man Thanh LOW EMPLOYEE MOTIVATION IN JAMJA CORP MASTER OF BUSINESS ADMINISTRATION Ho Chi Minh City – Year 2020 LOW EMPLOYEE MOTIVATION IN JAMJA CORP UNIVERSITY OF ECONOMICS HO CHI MINH CITY International School of Business Tran Ngoc Man Thanh LOW EMPLOYEE MOTIVATION IN JAMJA CORP MASTER OF BUSINESS ADMINISTRATION SUPERVISOR: Dr Phan Thi Minh Thu Ho Chi Minh City – Year 2020 Table of Contents I INTRODUCTION II SYMPTOMS 2.1 Low ratio of renew contracts 2019 2.2 Decrease new signed contracts/month 2.3 Increase ratio of complaints 10 III PROBLEM IDENTIFICATION 12 3.1 IV Problems identification 12 3.1.1 Low employee motivation 12 3.1.2 High pressure at work 13 3.1.3 Unprofessional sales communication 14 3.1.4 Slow processing of contracts 14 3.1.5 Ineffective discount programs 15 3.2 Problems validation 17 3.3 Central Problem 19 ALTERNATIVE SOLUTION 22 4.1 Causes validation 22 4.1.1 Causes identification 22 4.1.2 Causes validation 24 4.2 V Solutions analysis 27 4.2.1 Solutions for Fair recognition cause 27 4.2.2 Solution for Feedback and Supervision causes 31 4.3 Alternative solutions 32 4.4 Action plan 34 4.4.1 Human allocation 34 4.4.2 Timeline and Action plan 35 CONCLUSION 37 VI SUPPORTING INFORMATION 38 Transcript 38 References 57 Executive Summary JAMJA is a promotion driven platform that helps merchants increase traffic and sales (online and traditional stores) This startup aims to become a discount app in Vietnam with hourly discount bookings and rapid expansion from restaurants and entertainment to beauty The platform will be upgraded day by day to help merchants optimize sales by offering various discounts based on the number of empty tables, time frames and actual sales in a day Customers will also benefit from these improvements, such as instant booking of up to 50% off at certain times of the day besides an average drop of 10% to 30% JAMJA has reached nearly million views per month and aims to become the number daily transaction app in Vietnam pioneering time-based discounts for bookings along with the ability to quickly expand into many markets ranging from entertainment to travel The KPI of the Partnership Department includes many factors such as GMV (Gross Merchandise Value/ Volume), commission from providers, leads, new contracts, renew contacts and partner feedback, Although other factors also have bad manifestations but not really as prominent as the three symptoms mentioned in Symptoms Chapter In addition, they account for a high proportion in the KPI evaluation of the members as well as a prominent expression of the business situation of the department Therefore, I can call all three symptoms briefly as the low KPI performance of the Partnership Department Based on quality data from interviewing Mrs Thuy, Ms Thao and Mr Trung combined with literature, I have discovered potential problems that exist in the Partnership Department In particular, there are some problems that seem to be quite serious and should have been solved as soon as possible such as high pressure, ineffective discount programs but they are out of control of our department Although we want to solve it thoroughly, it depends on other groups such as the Marketing or HR department so it is very difficult to it right now So, in the end, I chose the low motivation as a central problem because it is completely under the control of the department and will definitely bring good results Because it can even help solve partly high pressure problem and thereby improve the unprofessional sales communication problem when employees feel more comfortable and satisfied with their work The relationship between employee motivation and performance seems to be clear Because when we recognize a task to be important and valuable, employees will it with a high LOW EMPLOYEE MOTIVATION IN JAMJA CORP level of dedication and enthusiasm to accomplish it With that in mind, managers need to have the right ways to keep their employees motivated as much as possible Employee motivation is critical for every organization to improve the performance and productivity In the Central problem part, I delved deeper into the problem of employee motivation, from the definition and the impact factors and the consequences This will be a solid foundation for the next chapter to find the cause and solution for this problem Research on factors affecting work motivation will provide information for managers to determine which factors have a strong impact on employee motivation, creating a premise to build right solutions to encourage and motivate employees to work hard in order to increase the efficiency of human resource management as well as improve the business results The effect of motivation depends on the incentives (material and mental) that stimulate employees to use up their potential capabilities and try their best in doing the job Despite the efforts to persuade and create the best conditions to promote their productivity, many managers still fail The reason is that from the beginning, they did not eliminate all the false ideas in stimulating subordinates' motivation Some managers think money is everything Certainly, if paid well, the staff will be willing to everything for you However, the feeling of excitement for high pay is short Remember that putting concerns, giving compliments, confirming the contribution and position of employees is the real stimulus that can really boost work performance With the alternative solutions proposed in Chapter IV, I hope to bring motivation to employees to have greater efforts to learn, draw on their work experiences, improve their knowledge, qualification for self- improvement In addition to the direct values and benefits, we can see that motivating employees also brings indirect value that is the solidarity of collectives and teams It is this solidarity that brings about efficiency in employee performance I INTRODUCTION JAMJA is a discount promotion platform with an application installed on Android and iOS operating systems smartphones, with the ability to provide information about discounts, promotions of fashion brands, coffee shops, restaurants, spa and clinics With JAMJA, customers can go to eat, drink and purchase with preferential prices At times of great promotions during the year such as the New Year holidays, Black Friday,… JAMJA is a powerful assistant of discount hunters With the convenience of the application, users can save time, effort to find what products or brands are promoted JAMJA was founded in 2015 by Mr Le Hung Viet with starting point as a platform that provides the discount information of major brands on fanpage or website JAMJA focuses to become a hub that summarizes all types of promotional information, reclassifies and helps users find it easier The number of promotional post in that time is more than 100-150 new promotional posts added every day The ability to search is the core of JAMJA products, users not only have approach to a lot of information but also to refine and access to their interests Through a filter mechanism, JAMJA allows users to personalize experiences that motivates users to JAMJA After years of development, JAMJA has constantly expanded and integrated more utilities for customers, JAMJA has chosen the business model as a booking platform which cooperate with restaurant, coffee shop, spa and clinics’ owners (providers) to create discount programs on JAMJA’ website and mobile app Users can select deals and book by choosing the time and the number of customers Providers receive the booking request and spare the empty tables for JAMJA’ customers Figure 1: JAMJA' website Service industry (restaurants, hotels, spas, cinemas ) all have problems with empty tables, vacancies or unsold seats CEO of JAMJA - Mr Hung Viet believes that this is a great opportunity for JAMJA, because in Vietnam there is currently no product that focuses on optimizing empty tables through hourly discounts like JAMJA JAMJA can help partners which are coffee shops, restaurants or spa sell "vacancies" as quickly as possible - even in just minute and optimize autonomous discount programs, adjust the discount level based on the number of empty tables Due to the ability to customize hourly discounts, JAMJA can cooperate with many famous brands in Vietnam like The Coffee House, Kichi Kichi, TocoToco, Food House, Popeyes to offer promotions up to 70% Therefore, JAMJA operates as a B2B platform which works with restaurants, coffee shops, spas, … to help them increase brand awareness and get close to customers The service delivery is aimed at Z generation users who are adults in the new technology era Currently, JAMJA has more than million active users each month and is currently growing rapidly JAMJA's vision is to become a super application that customers can use every day when shopping and eating Currently, there are a variety of applications or websites jumping into the game of building discount management applications and promotion updates Not only the big competitors like TableNow, Hotdeal, Pasgo,… but also the new ones who have the same technology development direction make JAMJA beware However, the founder of JAMJA is still very confident in JAMJA' core values: JAMJA is a discount information hub, so customers come not only to hunt the discount programs but also to communicate with the community of users in order to share and update about food, drink or beauty In addition, JAMJA not only provides promotion information of the restaurant, spa and clinics but also applies to other fields such as ecommerce, entertainment, - this is also the difference value of JAMJA among ecosystems JAMJA with about 100 employees is arranged according to functional structure, which determines how the organization will operate and perform In a functional structure, a common configuration, an organization is divided into many departments by areas of specialty (such as Customer Success, Finance and Accounting, Marketing, Partnership,…) JAMJA CORP Customer Success Design Product Finance and Accounting Human Resources Partnership Marketing Customer Success Hanoi Partnership Hanoi Marketing Hanoi Customer Success HCMC Partnership HCMCMarketing HCMC Figure 2: Organization Structure In particular, JAMJA Hanoi has seven departments while JAMJA HCMC only has Partnership, Marketing, Customer Success departments Partnership staffs build strong relationships with providers, sign contracts, collect discount programs and then send to the Customer Success department which is responsible to process and operate these programs Besides, Marketing and Partnership department coordinate together and build specific plans to achieve corporate goals such as fill vacancies, increase sales and brand awareness for providers, manage expense budgets related to the implementation and execution of promoting discount deals in all channels as fanpage of JAMJA in Facebook, Instagram, Zalo, website and mobile application in order to approach and attract customers to use deals Partnership department is considered as the largest with 32 employees in both branches, 17 employees in Hanoi and 15 remaining in HCMC Partnership Department Head of Department in HCMC Head of Department in Hanoi Leader of Food Leader team of DrinkLeader team of Beauty team Leader of Food Leader team of DrinkLeader team of Beauty team Sales Admin Sales Admin Sales development Sales development Sales development Sales development Sales development Sales development Account Executive Account Executive Account Executive Account Executive Account Executive Account Executive Figure 3: Partnership Department Structure Two branches have the same Partnership department structure including a Head of Department, a Sales Admin and three category teams - Food, Drink and Beauty Each team has a leader, a Sales development and two or three Account Executive The role of Head of Department – Mrs Nguyen Thanh Thuy is responsible for setting short-term and long-term targets, devising strategies, finding and implementing new ideal plans for driving KPI growth of the whole department, three category teams and each member She also works with the Marketing and other departments to propose materials and tools in order to support and boost growth, as well as interview and hire new members of the department Sales Admin prepare contracts for providers, stay up-to-date sales reports,… and three sales teams of different categories Each team has a Sales development who researches and establishes leads and arranges introductory needs analysis meetings between Account Executives and providers Account Executives are responsible to introduce and discuss provider’ needs and requirements, win the contracts, take care of them at all phases of the contracts and campaigns, provide professional after-sales support, remain in regular contact to understand and meet their needs as well as maximize their loyalty Sales Development and Account Executive work under their Leader’ control and the Leader is responsible for reporting member performances to the Head of Department and working with her to boost department growth encouragement What you think about this opinion?" A: "I know that recognition can still be expressed through spiritual values But I still think that to show my recognition to employees, money or gifts are the most valuable and practical Although I know that employees always have to try very hard to achieve results in their work, I always think that is the responsibility that they have to and forget sometimes they also need encouragement and praise to get more strength when they are tired This is probably my shortcoming as well as their leaders, I hope to be able to address these causes soon so that the department can return to the glorious time as before " Q: "After looking at two alternative solutions, which one you think is best suited to apply to our department?" A: "Each solution has its own advantages and disadvantages In alternative solution 1, simplicity, ease of implementation and cost Based on cost The feasibility and feasibility, I of solution think solution is the most suitable for the company at the moment savings are the advantages We need to organize it regularly so that it gradually becomes a typical cultural activity of the department to achieve the best results In addition, it is also necessary to have effective assessments to learn from experience and find ways to bring the best effect to employees In alternative solution 2, employees have many activities that work together to help them connect with each other more and especially bring more meaning and benefits to the community We can also receive a sympathetic view from partners as well as from society if implemented this solution properly However, the process of preparation and implementation takes too much time of employees while their workload is too much Therefore, they certainly will not have enough time to implement this solution and not willing to participate fully In addition, the cost is too expensive and even can exceed the original budget Therefore, based on cost and feasibility, I think solution is the most suitable for the company at the moment." Ms Thao – member of Team Food in Partnership Department Q&A (full Q&A) Coding Category Quote (description of coding from (key answers) answer) Q: “As I know, your Employee work Working under -“ Too many tasks in performance in 2019 is lower under pressure high pressure a day make me not than the average of the because of too department Which reason makes many tasks this situation? A: “Actually, I feel pressured Heavy workload have enough time to arrange the priority and assigned tasks well.” about my low KPI Too many -“ have too much tasks in a day make me not have pressure in long term enough time to arrange the drive all the priority and assigned tasks enthusiasm and well Besides, the deadline is too energy for work short, like in the morning or in a seems to disappear” day This task is not finished but I have to assign another one I always feel overwhelmed with work and responsibilities, even not have time for my family and friends When starting this job, I think work under pressure make me learn a lot of things but have too much pressure in long term drive all the enthusiasm and energy for work seems to disappear” Q: “Can you show more detail some tasks you have to in a day?” A: “I have about 30 providers who need to take care Every day, I negotiate with providers to resale the discount program which is on end time Then I text the annex contracts and send them to sign Moreover, JAMJA always has mini campaigns every week and big campaigns every month so I need to invite all providers to join During discount programs occurring, Account Executive is the bridge between providers and Customer Success and Marketing department to control programs running smoothly If the program does not bring positive results in -5 days from starting, I have to persuade the provider to change other ones or boost the Marketing department to support Not only taking care of the old merchants, I find and meet new ones to achieve monthly KPI After finishing all duties, I make a daily report to my leader.” Q: “How does working under Working Working high pressure affect your spirit pressure have a pressure -“Pressure seems to and performance?” lot of negative consequences eat away at my The effects of health, leaving me heavy workload feeling stressed and A: “Pressure seems to eat away at my health, leaving me feeling effect to employee stressed and sometimes doing sometimes doing unprofessional communication unprofessional behavior I feel that I’m working communication in a mess When meeting behavior.” providers, sometimes I force myself to stop the conversation to reply to other providers’ requests or my leader’s ask, even though I know it is forbidden in sales skill Some providers show their unpleasantness and give my leader a complaint about this issue Or I tend to not talk to anyone, even ignore providers’ phone call, email until finishing urgent tasks I actually need concentration to tasks well but high pressure does not allow it.” Q: “Have you ever talked to your leader in order to find the HR department recruit more Recruitment request solution for your and other members to -“ She used to members’ pressure?” share the tasks suggest to the HR and department to recruit responsibilities more members to A: “Of course Our leader thoroughly understands our stress share the tasks and and she always finds the responsibilities but solutions She used to suggest to our department’ the HR department to recruit request is not the more members to share the tasks priority.” and responsibilities but our department’ request is not the priority Not only members like me, my leader is also too busy to meet us in the office and listen to our ideas and suggestions Expect to periodic meetings, it’s hard for us to sit and talk and share together.” Q: “Despite working in an office, why the team cannot talk together?” A: “As you know, we have 15 times offsite work in a month Some members will go to coffee It is hard to share the Poor team working communication -“ Therefore, It is hard for us to meet pressure in the other members in the workplace small team, even in department.” shops to feel less pressure so that -“ Sometimes I feel it they can work well Others go to is not easy to find meetings with providers someone who can Therefore, It is hard for us to meet other members in a small team, even in a department share and understand my working pressure.” Sometimes I feel it is not easy to 50 find someone who can share and understand my working pressure.” Q: "Do you have any satisfaction Employees Role of the “The company completely work provides a full range satisfied with environment of facilities such as A: "To be honest, I am the working and working microwave, fridge, completely satisfied with the conditions and conditions dining and sleeping working conditions and environment in environment in JAMJA The JAMJA or dissatisfaction when working at JAMJA?" area, ” salary is quite high and even ample for us to cover the cost of living The company provides a full range of facilities such as microwave, fridge, dining and sleeping area, Furthermore, leaders and colleagues are very friendly, kind and willing to help each other This is also a job I really love and I want to try my best to work, have a lot of experience and develop my career path " Q: "So why are you getting All efforts were depressed when you work?" not recognized A: "At first, I always tried to fairly my best But gradually, my Fair recognition Employee recognition tool colleagues and I felt that all our efforts were not recognized fairly Even if I try to accomplish 51 the best work in the group, it is no different than an averageproductivity employee Since then, we have thought that trying to work well for nothing" Q: "So among the 13 reasons I've Employees just shared, what you think is choose Equity and the main cause ?: Supervision and fairness of Fair recognition employees A: "If we are acknowledged for our tries, we are willing to work harder and receive more tasks, but when we are not acknowledged, we gradually lose our work motivation I wish that managers can see how hard to get the job done, even to achieve the highest efficiency, we always have to try up to 200% or give up our hobbies in free time The recognition is not just expressed through money or regular gifts, what we need is really as simple as a word of compliment or encouragement from my leader or a round of applause is enough for me to keep up the good work So I choose Supervision and Fair recognition as the main causes." Q: "I have suggested two alternative solutions, which one as the main causes “If we are Recognition acknowledged for our criteria tries, we are willing Effects of to work harder and supervision on receive more tasks, productivity but when we are not acknowledged, we gradually lose our work motivation” you think is the most effective Employee and suitable?" would choose A: "If I could choose to one of those alternative solutions, I would choose solution Although solution sounds very attractive, I can travel with my colleagues and charity activities at the same time, but if it takes too much time to prepare and implement, I am not sure whether I will participate or not The work is taking up too much time, I don't want to lose any more Instead I will choose a simple and quicker and more effective way Solution meets those criteria Because I really like the handmade items It is more great when made from colleagues and given to me as a thank you If I receive that gift or card, I will be very happy and surprised because I not only feel that everyone recognizes my merits but also feel the deep affection from colleagues I will definitely try to my best to have those gifts every month And if everyone is like me, this solution solution will definitely bring a tremendous effect." Mr Trung – old provider of JAMJA Q&A (full Q&A) Coding Category Quote (description of coding from (key answers) answer) Q: “Which you like and Like: The Brand -“ They help us solve dislike when cooperating with business goal of awareness the most different JAMJA?” JAMJA is solve Sales Skill problems of almost A: “I really like the goal of JAMJA They help us solve the the problem of providers Customer satisfaction all restaurants, coffee shops - empty tables or vacancies.” most different problems of Dislike: Account almost all restaurants, coffee Executive -“ Actually, JAMJA shops - empty tables or satisfied the brings us 20-30% vacancies Actually, JAMJA providers increasing brings us 20-30% increasing customers” customers when running -“ But I feel discount programs on their app dissatisfied with the and website as well as increasing Account Executive our brand awareness But I feel who is a direct dissatisfied with the Account supporter to me.” Executive who is a direct supporter to me Sometimes he makes me feel not respected and willing to work with me Q: “Can you explain more details about your dissatisfaction?” The attitudes and Successful behaviors of salespeople salesmen -“ To me, the attitude of a sales executive is extremely important A: “To me, the attitude of a impress their Role of attitude because these are all I sales executive is extremely customers and personality need when working in sales together.” important because these are all I need when working together I really not agree with coming late, surfing the web, chatting, sending emails or anything else of the Account Executive in the meetings instead of listening carefully to understand what I need when cooperating Also, sometimes I feel that he is not willing to support when I have urgent cases They need to know that attitudes, willingness and sales lifestyles, make the employees successful, push their development and make a good effect on their company However, I also sympathize for him because I know he has a lot of providers to take care.” Q: “Why you decide to stop cooperating with JAMJA?” A: “Because the slow process of JAMJA drives my boss to force me to stop As a rule, two parties need a signed contract to start the programs However, my manager agreed to run it as soon -“ Because the slow Slow contract process make The contract providers process uncomfortable Slow progress of work process of JAMJA drives my boss to force me to stop.” -“ I had repeatedly asked about the contact to submit to my manager but had as possible to achieve a good not been received result I had repeatedly asked even though the about the contact to submit to program was still my manager but had not been running with JAMJA received even though the during months.” program was still running with JAMJA during months We cannot accept the irresponsible work style so then we decide to stop running with JAMJA although the result of discount programs is very good I hope that they improve their process and operation soon in order to have opportunities to work together again.” References (1) BMS Performance How to tell if your sales team is underperforming [Internet] Available from: https://bmsperformance.com/blog/sales/how-to-tell-if-your-sales-team-isunderperforming/ (2) Ganta, V C Motivation in the workplace to improve the employee performance International Journal of Engineering Technology, Management and Applied Sciences 2014, 2.6: 221-230 (3) Churchill, Gilbert A., Neil M Ford, Steven W Hartley, and Orville C Walker, Jr The Determinants of Salesperson Performance: A Meta-Analysis Journal of Marketing Research 1985, 103-118 (4) Stafford, Thomas F Conscious and Unconscious Processing of Priming Cues in Selling Encounters Journal of Personal Selling & Sales Management 1996, 37-44 (5) Samson, G.N., Wainganjo, M Effect of working environment on the performance of commercial banks employee in Nakuru town, Kenya International Journal of Managerial Studies and Research (IJMSR) 2015 76-89 (6) Johlke, M.C Sales presentation skills and salesperson sales performance Journal of Business & Industrial Marketing 2006; 21(5): 311-319 (7) Ahmad, S.Z., Basir, M.S and Kitchen, P.J (2010) The relationship between sales skills and salesperson performance and the impact of organizational commitment as a moderator: an empirical study in a Malaysian Telecommunication Company International Journal of Economics and Management 2010, 4(2) 181-211 (8) Matzler, K., & Hinterhuber, H H How to make product development projects more successful by integrating Kano's model of customer satisfaction into quality function deployment Technovation 1998, 18(1), 25-38 (9) Robbins, S.P., Timothy, A.J Organizational Behavioral Singapore: Prentice Hall International., Inc 2009 (10) Robbins, S.P., Mary, C Management Singapore: Prentice Hall International., Inc 2011 (11) DuBrin, A,J Essentials of management (5th ed.) 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