Microsoft Word THAI QUOC BAO FINAL (1) docx UNIVERSITY OF ECONOMICS HO CHI MINH CITY International School of Business THAI QUOC BAO EMPLOYEE DISENGAGEMENT WITH LGC COMPANY MASTER OF BUSINESS ADMINISTR[.]
UNIVERSITY OF ECONOMICS HO CHI MINH CITY International School of Business THAI QUOC BAO EMPLOYEE DISENGAGEMENT WITH LGC COMPANY MASTER OF BUSINESS ADMINISTRATION Ho Chi Minh City – Year 2019 LUAN VAN CHAT LUONG download : add luanvanchat@agmail.com UNIVERSITY OF ECONOMICS HO CHI MINH CITY International School of Business THAI QUOC BAO EMPLOYEE DISENGAGEMENT WITH LGC COMPANY MASTER OF BUSINESS ADMINISTRATION SUPERVISOR: Associate Professor NGUYEN THI MAI TRANG Ho Chi Minh City – Year 2019 LUAN VAN CHAT LUONG download : add luanvanchat@agmail.com ACKNOWLEDGEMENTS I would like to expressed my thankful to my Supervisor – Associate Professor Nguyen Thi Mai Trang Without the support and dedicated involvement in every step during the thesis, my thesis would have never been accomplished I would like to thank you very much for your support and understanding LUAN VAN CHAT LUONG download : add luanvanchat@agmail.com Table of Contents Executive summary Company overview 1.1 About Company 1.2 Organizational structure Symptoms 2.1 Total turnover rate 2.2 Turnover rate of Manager 9 Potential problems 10 3.1 Employee disengagement 10 3.2 Transformational leadership 12 3.3 Knowledge sharing 13 3.4 Problems Validation 14 Potential causes 18 4.1 Employee Performance Low 19 4.2 Unprofessional working environment 20 4.3 Lack of career growth 21 4.4 Validating causes 21 Alternative Solutions 23 5.1 Solution 1: Improving employee professional working skills for more sharing 23 5.2 Solution 2: Motivate employees challenge themselves 25 5.3 Solution justifications: 27 Action plan 27 Supporting information 30 7.1 Interviewee demographic 30 7.2 Interview guide 30 7.3 Interview Transcription 31 References: 46 LUAN VAN CHAT LUONG download : add luanvanchat@agmail.com LIST OF ABBREVIATION LGC: LGC financial consulting company limited HR: Human Resource IT: Information Technology Department QC: Quality Control HCMC: Ho Chi Minh City BOD: Board of Director LUAN VAN CHAT LUONG download : add luanvanchat@agmail.com LIST OF TABLES Table 1: Total emmployee turnover rate at LGC (Source: LGC's Headcount report) Table 2: Manager turnover rate at LGC (Source: LGC's Headcount report) LIST OF FIGURES Figure 1:LGC Organization Structure (Source: LGC's data) .6 Figure 2: Employee Turnover rate in LGC (Source: LGC Headcount Report) .8 Figure 3: The turnover rate of Manager in LGC Figure 4: The cause and effect tree (Source: Author data) 19 LUAN VAN CHAT LUONG download : add luanvanchat@agmail.com Executive summary As every enterprise around the world admitted that, Human Capital is the most important for each enterprise that can compete with other, can win in the competition and can create more differences compared to others cannot copy Especially, key position such expertise, manager, director, etc These employees will bring too many benefits and values to the company In general, Human capital is the effective competitive advantage of many enterprises if they spend times and money for it Many companies in Vietnam not pay more attention in Human resource, the cause of this is that they thought its waste their time and money If they want, they can cooperate with expertise or some excellent people and they just pay a little bit higher for these kind of resource, they not need to spend more for their existing employees The author agrees with them, but that is not a smart way and that is a short term way for business if they want to growth sustainably in the future This way is just suitable for running project in few years – we need their experience to run project to meet deadline and low cost Because we just hire one to two expertise for each project And now, studying about LGC for my thesis The author saw that LGC has been facing a high turnover rate of their employees for few years due to its performance is always low The author has using in-depth interview and some kind of literature to analyzed This study concentrate on what is the main problems, why it happened, how is it important and how it is affect to the company Furthermore, employees are feeling frustrated and no motivation when they work and never meet target, it means that company will fail in short term This study will help BOD find out the main cause of the problem and give the best solutions to solve it then push everything run smoothly and drive in the right track not only for decrease the turnover rate but also meet the company target LUAN VAN CHAT LUONG download : add luanvanchat@agmail.com Company overview 1.1 About Company LGC is one of subsidiary of Finstar Financial Group LGC is Financial consulting limited company and it was established in 2015 It was found just few years in Vietnam but their business is very good and continuously developing year by year LGC owns doctordong.vn website that is an online lending, it gives the best solution about financial to customers who need to borrow small amount of money but cannot asking from the bank Realized that, LGC cooperates with its partners to provide small loans in the shortest period and simplest procedures It business meet the customers need Customers who just need to few clicks to register personal information then consultant will contact them within 30 minutes to guide them finish their loans If ok, customer loans will be disbursement within 24 hours and their first loan about million to 10 million based on their borrowing history, the second loan will be higher the first one LGC is always flexible in its operation to satisfy customers, and willing to adapt customer needs if they come to LGC Everything is transparent and legal at LGC at the beginning Although most of thing seems to be on the right track and advantage about finance from Finstar Group but LGC Also face lot of challenges from external – competitors and Vietnam law, and many things from internal but the most outstanding is employee turnover rate In this thesis, the author will show them the causes and how it affected to the business and development in the future LUAN VAN CHAT LUONG download : add luanvanchat@agmail.com 1.2 Organizational structure LGC located in HCMC and has totally 138 local employees and 17 expats who are working in departments: Human Resource, Quality Control, IT, Collection, Finance and Accounting, Project, Marketing, Operation The Country director who is responsible for all activities and drive LGC going on the right track and aligned with the head quarter strategy and each division played an important role that supporting country director to expand and growth business in Vietnam Country Director HR & Admin Quality Control Finance and Accounting Collection Field collection Phone collection IT Operation Project (R & D) Marketing Telesale Verification Customer service Figure 1:LGC Organization Structure (Source: LGC's data) LUAN VAN CHAT LUONG download : add luanvanchat@agmail.com Symptoms Identify symptom is the first thing to when we are going to find the root causes of the problem Because we will find wrong problem if we cannot distinguish problem and symptom No symptom means no problem Marlon (1) stated that it is significantly important to distinguish the problem and symptom The author has carefully doing research and interview some head of department and based on data in 2017 -2018 I found symptom that happening at LGC is high turnover rate but in this study I just mention the turnover rate of supervisors, mangers and top levels This symptom will be analyzed in detail as the following: 2.1 Total turnover rate Human Resource is very important to each enterprise, its creating value and bring benefit to company According to Backer et al (2) beside other traditional tools like money, technology and so on, human resource is the unique tool which can make the company sustainable growth and creating competitive advantage to cope with rivals but no one can copy Actually, we can imitate everything but we cannot copy human resource It plays an important role in business, that is why there are many survey and research about human resource conducting every year in order to get the insight about HR The company looks referred to this report to improve its HR system It will be the advantage if the company has sustainable human resources High turnover rate means that the company lost its advantage and one of critical tool to compete in the market According to Mercer - Talentnet report (3) the average turnover rate in 2016 is 17,8% and 2017 is 10,5% - the highest turnover rate belong to retail sector 32,2% and the lowest turnover rate belong to oil industry 5,3 % And Anphabe (4) forecasted the turnover rate in 2018 is 20% And below is the turnover rate of LGC, it shown in table and also in graph as well LUAN VAN CHAT LUONG download : add luanvanchat@agmail.com ...UNIVERSITY OF ECONOMICS HO CHI MINH CITY International School of Business THAI QUOC BAO EMPLOYEE DISENGAGEMENT WITH LGC COMPANY MASTER OF BUSINESS ADMINISTRATION SUPERVISOR: Associate... find wrong problem if we cannot distinguish problem and symptom No symptom means no problem Marlon (1) stated that it is significantly important to distinguish the problem and symptom The author... engagement bring better communication, more interaction and positive collaboration between staffs and finally it is improving the performance of entire company Because higher rate of employee engagement