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1 UNIVERSITY OF ECONOMICS HO CHI MINH CITY International School of Business Gian Hong Phi THE JOB STRESS IN AIRCRAFT SERVICE INTERNATIONAL IN VIETNAM AIRLINES CATERERS MASTER OF BUSINESS ADMINISTRATIO[.]
UNIVERSITY OF ECONOMICS HO CHI MINH CITY International School of Business Gian Hong Phi THE JOB STRESS IN AIRCRAFT SERVICE INTERNATIONAL IN VIETNAM AIRLINES CATERERS MASTER OF BUSINESS ADMINISTRATION Ho Chi Minh City – 2019 LUAN VAN CHAT LUONG download : add luanvanchat@agmail.com UNIVERSITY OF ECONOMICS HO CHI MINH CITY International School of Business Gian Hong Phi THE JOB STRESS IN AIRCRAFT SERVICE INTERNATIONAL IN VIETNAM AIRLINES CATERERS MASTER OF BUSINESS ADMINISTRATION SUPERVISOR: Dr Nguyen Phong Nguyen Ho Chi Minh City – 2019 LUAN VAN CHAT LUONG download : add luanvanchat@agmail.com SUPERVISOR’S REPORT ON THE THESIS PROPOSAL SUBMITTED FOR DEGREE OF MASTER of BUSINESS ADMINISTRATION The thesis proposal title: THE JOB STRESS IN AIRCRAFT SERVICE INTERNATIONAL IN VIETNAM AIRLINES CATERERS Student Name: Gian Hong Phi - Student ID: 22150050 Supervisor: Dr Nguyen Phong Nguyen General comments: Remarks on the student’s attitude: ………………………………………………………………………………………… ……………………………………………………………… Remarks on the assignment’s academic quality: ………………………………………………………………………………………… ……………………………………………………………… Overall assessment: Meet requirement for submitting Not meet requirement for submitting Other remarks: Did the student follow the report schedule? Yes No Other………………………… The Turnitin plagiarism percentage: Supervisor’s signature LUAN VAN CHAT LUONG download : add luanvanchat@agmail.com Table of Contents Background: 1.1 Company background: 1.2 Symptoms: 1.3 Initial cause effect map: 1.4 Update cause effect map: 19 1.5 Potential problem of interest: 22 Problem Justification 23 2.1 Central problem definition 23 2.2 Problem existence: 23 2.3 Problem importance: 25 Causes validation and solutions: 27 3.1 The Real Causes of Central Problem List: 27 3.2 Set of solution: To find my solution used and running to following 28 3.3 Recommend solution: 32 References: 39 LUAN VAN CHAT LUONG download : add luanvanchat@agmail.com Executive summary In a long time, Aircraft Services International section (ACSI) in Vietnam Airlines Caterers (VACS) is known as a section with high number of staff leaving the job, especially in new employees However, the situation become worse in recent years As a result, ACSI is always in lack of manpower situation In the contrast, the number of international flights has increasing dramatically in same time Therefore, VACS should recruit new employees for ACSI continuously The high turnover rate is not only increasing the cost for company but also reducing the quality services of ACSI By using the interview method, some main reasons for this problem are listed: the job stress, the job dissatisfaction and dissatisfied in career development However, because of the limitation of this thesis, as well as the possible of the solutions, this thesis will focus on the job stress factor, which is already as a result of various minor causes For example: poor management skills, job dissatisfaction… By providing some potential solutions for reducing the job stress, it is expected to decrease the turnover rate as well as to improve the working environment in ACSI LUAN VAN CHAT LUONG download : add luanvanchat@agmail.com Background: 1.1 Company background: Vietnam Airlines Caterers (VACS) is a company processing inflight meals and providing catering services to airlines at Tan Son Nhat International Airport since 1993 Vietnam Airline Caterers is also a subsidiary and head catering quarter of Vietnam Airlines After 24 years of growth, Vietnam Airlines Caterers has been received many certificates and awards For examples: ISO9001:2008 Certificate, HACCP Certificate, The Catering Award "Best Performance of 2016" from Asiana Airlines… Vietnam Airline Caterers now is the largest airline caterer company in Vietnam and provides about 23,000 meals per days for both Vietnam Airlines and 22 international airlines in Tan Son Nhat International Airport 1.2 Symptoms: In Vietnam Airlines Caterers, the Aircraft Service International section (ACSI) of Operation Department is responsible for loading the in-flight meals for international airlines According to manager of this section, the ACSI had a high turnover rate in recent years However, the problem became more serious since last year, when the number of international flights has increased dramatically For more detail, the ACSI now is lack about 10 staff to cover all the operation activities and fulfill all the days off for employees At the moment, over 50% employees are new persons, who have less than years working in company LUAN VAN CHAT LUONG download : add luanvanchat@agmail.com After collecting the data from company, a report of turnover rate in ACSI are made by myself However, because of the limitation of data, in the thesis, I will choose the time from May 2015 to May 2017, when I begin working in VACS, and this is the time having the high turnover rate in ACSI In this period, the flights of present customers and new customers have increased dramatically For example: -China Southern increased from flights/day to flights/day -Eva Airlines and Korean Air increased from flights/day to flights/day -All Nippon Airways and Philippine Airlines added more flight per day -China Air, Cathay Pacific and Singapore Airlines added more flights per weeks -New customers are Turkish Airlines, Hongkong Airlines, Jetstar Airways, Air New Zealand and Xiamen Airlines Each airline is operating about to flights per week Totally, the numbers of new flights increased about 103 flights per week According to meal daily report from Production Department last week, the number of international flights now about 250 flights per week It means there are increased from 150 per week in 2015 to 250 flights per week in the present It is about 67% increasing in years In the contrast, the total of employee in ACSI increased from 41 in 2015 to 47 official staff in the present It is only about 15% increasing in years LUAN VAN CHAT LUONG download : add luanvanchat@agmail.com Table 1.1: The increasing of flights per week and number of ACSI staff May - 2015 May – 2017 % Increase Flights per week 150 250 67% ACSI Staff 41 47 15% Compared increasing 250 150 41 47 MAY 2015 MAY 2017 Flights/Week ACSI staff After collecting the data, the statistical analysis of the turnover rate in ACSI section is about 21.2% from 2015 to 2017, while the turnover rate of employees who leave after less than year is about 71% which is explanation by the calculation below: Calculation of turnover rate: 𝐓𝐮𝐫𝐧𝐨𝐯𝐞𝐫 𝐫𝐚𝐭𝐞 𝐟𝐨𝐫𝐦𝐮𝐥𝐚 = Employee separations for the period Average number of the employee during the period Employee separations for the period from May – 2015 to May – 2017 are 25 Average number of the employee during the period LUAN VAN CHAT LUONG download : add luanvanchat@agmail.com - May – 2015: 41 employee - May – 2017: 47 employee Average number of the employee during the period: (41+47)/2 = 44 Turnover rate: 25/44 is nearly 57% According to Nahar, Islam (2), the acceptable turnover rate is about 25%, but for the low skill job like on ACSI, the turnover rate can be exceeding 50% normally (6) The turnover rate for ACSI employee is nearly 57% and this rate is extremely high Moreover, the number of flights also increases 67% from 2015 as mentioned above These factors lead the result that the ACSI managers are impossible to ensure having enough manpower for operation activities daily, as well as schedule enough the day off and vacation for all employee Therefore, employee in ACSI sometimes have only days off in a roster - week The situation has become so serious that company decided to pay money for permission days for all employee in ACSI in 2016, because the manager reports that he could not handle to set up permission days for his staffs This situation is still serious in the present, and it is predicted by the ACSI manager that company should pay money for the permission days on 2017 1.3 Initial cause effect map: In order to preparing the initial cause effect map for the reason of high turnover, some short interviews are conducted with present staff and formers staff in ACSI Table 1.2: List of interviewees LUAN VAN CHAT LUONG download : add luanvanchat@agmail.com ORD Name Year of Length of Leaving Service Education Position Nguyen Thanh Ki Bachelor Staff Not Nguyen Le Anh Quang Bachelor Staff Not Nguyen Hong Bang Bachelor Staff 2017 Tran Quoc Vinh Bachelor Staff 2016 Nguyen Hoang Duy College Staff 2016 After conducting with them, some their reasons and opinions are shown in below table Table 1.3: Cause of high turnover rate Name Main reasons Nguyen Thanh Ki Details Imbalance work life -Imbalance work life -Lack of day off -Job stress Job stress: -Poor communication -Heavy workload among other sections -Unfair treatment Nguyen Le Anh Quang -Imbalance work life Imbalance work life -Job stress -Unstable working time -Limited career growth Job stress: -Low salary -Heavy workload 10 LUAN VAN CHAT LUONG download : add luanvanchat@agmail.com ... ECONOMICS HO CHI MINH CITY International School of Business Gian Hong Phi THE JOB STRESS IN AIRCRAFT SERVICE INTERNATIONAL IN VIETNAM AIRLINES CATERERS MASTER OF BUSINESS ADMINISTRATION... per days for both Vietnam Airlines and 22 international airlines in Tan Son Nhat International Airport 1.2 Symptoms: In Vietnam Airlines Caterers, the Aircraft Service International section (ACSI)... background: Vietnam Airlines Caterers (VACS) is a company processing inflight meals and providing catering services to airlines at Tan Son Nhat International Airport since 1993 Vietnam Airline Caterers