(TIỂU LUẬN) FINAL ESSAY HUMAN RESOURCE MANAGEMENT HAPPY COFFEE CASE STUDY ANALYSIS

MINISTRY OF EDUCATION AND TRAINING UEH UNIVERSITY UEH COLLEGE OF BUSINESS -o0o SCHOOL OF MANAGEMENT STUDENT ID LY PHUONG UYEN 31191026904 FINAL ESSAY HUMAN RESOURCE HUMAN RESOURCE MANAGEMENT HAPPY COFFEE: CASE STUDY ANALYSIS LECTURER: MR NGUYEN NGOC QUI CLASS: ADC01 SCHOOL YEAR: 2021 Tieu luan Table of Contents I Case Analysis Current situation 2 Key issues   Poor customer experience Poor employee compensation II Linking Theory And Practice To The Solution .4 Customer Experience Management (CEM)    Create and maintain comprehensive customer profiles Actively communicate – connect with customers in an effective way and manner Listen and respond quickly Compensation Management    Performance-Based Pay Benefit package Recognition III Recommends specific strategies to accomplish the proposed solution .7 Customer experience strategy Compensation strategy REFERENCES 10 Tieu luan Case Analysis I (Analyses the case identifying the key issues and/or problems Identifies problems using evidence from the case plus theories and concepts.) Current situation Happy Coffee was launched in 2006 in Hanoi, Vietnam Nguyen, the company's founder, began with a single store in Hanoi and has now expanded to 28 locations throughout the country Today, Ms Nguyen's success story took a painful turn; for the first time in the company's history, one of its Ho Chi Minh City stores had to close due to operating at a loss for more than a few months To avoid having to close further locations around the country, drastic modifications are required, as six other coffee shops no longer earn a profit and barely cover operating costs Key issues  Poor customer experience In this case, poor customer experience was a significant cause of the Happy Coffee's sales dropping and losses Companies have embraced Customer Experience as a way to obtain sustainable competitive advantages [ CITATION Sha05 \l 1066 ] Customer experience is a broad term that refers to all aspects of a company's offering [ CITATION Zom09 \l 1033 ] Since the quality of services and products in the highly competitive consumer market has been standardized, increasing Customer Experience has lately become a marketing approach for differentiation In this sense, creating and delivering a positive customer experience is critical for improving customer relationships and increasing customer loyalty, as well as providing economic value to businesses ([ CITATION Bra09 \l 1066 ]; [ CITATION Fro07 \l 1066 ]; [CITATION Lyw09 \l 1066 ]; [ CITATION Mas06 \l 1066 ])  Poor employee compensation Another major problem of Happy Coffee is poor employee compensation Compensation is really important because it is the foundation of the work relationship, Tieu luan affecting both employees and employers According to[ CITATION Kre06 \l 1066 ] need fulfillment model, financial incentive is one of the aspects that contribute to job satisfaction When employees are content with their jobs as well as the organizational environment, including their coworkers, compensation, and leadership, they are more dedicated to their company than when they are dissatisfied [ CITATION Sam07 \l 1066 ] In this case, with a poor compensation system, employees are not motivated to work, and as a result, they often have a bad attitude, often use sick leave as an excuse, be late for work, and even leave work for short periods of time Tieu luan Linking Theory And Practice To The Solution II (Develops a solution to the issues or problems Justifies the solution with evidence, management theory, approaches, concepts and/or models.) Customer Experience Management (CEM) In recent years, generating and managing customer experiences has emerged as a critical focus for most businesses, especially those in the service industry, and marketing researchers and practitioners have paid close attention to this topic ([CITATION Lyw09 \l 1066 ]; [ CITATION Pal10 \l 1066 ]; [ CITATION Pul99 \l 1066 ]; [ CITATION Ver09 \l 1066 ]) CEM is defined as “the process of strategically managing a customer’s entire experience with a product or company” [ CITATION Sch03 \l 1066 ] Consumers, according to [ CITATION Sch99 \l 1066 ], are emotional beings that desire a pleasurable experience as a result of consumption, driving businesses to become experience-oriented enterprises When customer experience leaves a good impression on the customer, it has an effect on customer recognition and increases positive engagement (Kim, 2005); this might encourage the customer to make purchases and strengthen customer loyalty [ CITATION Bra09 \l 1066 ]  Create and maintain comprehensive customer profiles Companies must know their customers better than ever before in order to create an exceptional customer experience This necessitates the creation and maintenance of comprehensive customer profiles that aid in the understanding and measurement of the customer journey across numerous channels The more information a company has about its consumers, the better it can give customised offers to them, building a tighter relationship between the company and its customers and enhancing metrics like loyalty and retention Tieu luan  Actively communicate – connect with customers in an effective way and manner The way we connect with customers is the first step toward building trust The good customer communication is no longer solely through the customer service team It encompasses both online and social media communications, as well as advertising and any writing or voice the customers may use to communicate with businesses  Listen and respond quickly “Silence is death” Responding quickly to customers' questions and concerns will create a first impression of a professional company, in addition, it will make them feel welcome If no one responds, customers will go to other companies where they are more welcome It is important to know what problems exist in the service and solve them early to meet customer expectations before they leave Compensation Management Employee compensation is a component of human resource management (HRM) and is regarded as crucial to organizational performance [ CITATION Gup14 \l 1066 ] The idea that rewards motivate people to work more is a cornerstone of employee compensation theories [ CITATION Laz00 \l 1066 ] According to [ CITATION Yas13 \l 1033 ], a good compensation system, which includes payment, recognition, promotion chances, and meaningful employment, might boost physician satisfaction According to [ CITATION Arm05 \l 1033 ], compensation management is all about building a healthy employment engagement and psychological contract that takes a whole compensation perspective, which recognizes that individuals can be compensated in a variety of ways  Performance-Based Pay Performance based pay is a way that businesses reward employees financially when their work performance is at a good level, meeting set targets and bringing benefits to the business In this way, employees are motivated to work and the Tieu luan company also ensures that it spends money properly and in proportion to what employees bring to the company  Benefit package According to Glassdoor's 2015 Employment Confidence Survey, benefits and perks are a big influence in deciding whether or not to accept a job offer for around 60% of workers Based on the report, 80 percent of employees would prefer greater perks to a pay boost  Recognition Employees can understand that their organization values them and their contributions to the success of their team and the firm as a whole when they receive recognition This is especially important as organizations expand and evolve It helps employees feel secure in their worth to the organization, which motivates them to keep doing exceptional jobs Tieu luan Recommends specific strategies to accomplish the proposed solution III Customer experience strategy ● Step 1: Identify what is important to the customers Obtaining a deep and nuanced understanding of an organization's consumers is the first step in developing a good customer experience strategy ● Step 2: Interview to generate insights When consumer insight research is done correctly, it improves the efficacy of how a firm communicates with its customers, changing consumer behavior and thereby increasing revenues Businesses with good data are more likely to gather relevant customer insights, which can help them expand over time ● Step 3: Develop a journey map A journey map is a visual representation of a customer's experiences with a brand across all touchpoints The key is to create the journey map based on the customers' perspectives Managers can use journey maps to have a better understanding of the customer's experience They'll be able to watch how clients progress through the sales funnel, which will aid them in identifying ways to improve the experience ● Step 4: Raise the highs and lower the lows Companies can construct a much more comprehensive and meaningful experience that keeps and develops the client base by focusing on the peaks (high points) – which attract in and please customers Furthermore, by concentrating on the troughs (low points), companies can significantly improve customer retention and contribute to long-term growth ● Step 5: Re-imagine the journey and experience Tieu luan Routine, like precedent, is the enemy of creative thinking Imagining a blank slate can help businesses shift their perspective and consider what the customer experience might look like in an ideal world ● Step 6: Integrate the strategy within the organization Because customer-centric transformation is increasingly concerned, it's easy for executives to become distracted by shifting objectives and short-term thinking However, in order to reap the full benefits of the business case, new ways of working must be embedded Leading companies must ensure that transformation is viewed as a continual improvement process rather than a one-time, linear change Compensation strategy ● Step 1: Inquire about employee input Employees, of course, will not be part of the committee that chooses salaries; but, companies can solicit their feedback on total compensation Find out which benefits are most important to the employees Younger employees may be more interested in daycare subsidies, whereas older employees may be more concerned with retirement programs By soliciting feedback, businesses can create a strategic compensation strategy that is well-informed in order to align with the talent management strategy and will please the majority of employees ● Step 2: Benchmark against Competitors In order to stay competitive in the industry, try to evaluate what the competitors offer their staff We may not be able to match them item for item, but we will be able to remedy gaps during interviews with this information ● Step 3: Budget allocation Examine the human resource and operational budgets of the organization objectively Reflect the cost that can be spent on each worker Taxation, salaries, preexisting benefits, remuneration, and incentives are all factors to consider Outline Tieu luan strategies for productivity or merits raises that will take place as part of annual reviews ● Step 4: Plan for Rewards Consider using total compensation to engage employees, improve performance, and convince them to stay A retirement plan or additional vacation days for staff who have been with the company for more than a year, or stock options as a bonus after 90 days, are all strategies to preserve the budget if employees not continue with the business for a set period of time ● Step 5: Determine Pay Grades A corporation can estimate the extent of rewards selected based on the job's criteria and level with this framework in place Pay grades take the uncertainty out of compensation discussions by providing employees with a range of potential earnings for any particular duty ● Step 6: Compliance confirmation The Fair Labor Standards Act establishes the legal criteria for minimum wage, overtime, equal pay, record-keeping, and child labor It also has consequences for payment processes, record-keeping, taxes, wages, and withholding allowances Legal assistance should be sought by organizations to verify and assure compliance that any compensation approach fits the criteria ● Step 7: Discuss About Total Compensation To avoid problems, ensure that all individuals have approach the information they require and that it is correct and up to date One of the most significant sources of unhappiness between employers and employees is the discrepancy between dreams and reality An employee communication software application is an useful tool for companies in compensation communications that are timely, engaging, and simplified Tieu luan REFERENCES Armstrong, M (2005) A Hand book on Human Resources Management Practices UK: Kogan Brakus, J J., Schmitt, B H., & Zarantonello, L (2009, May) Brand experience: What is it? How is it measured? Does it affect loyalty? Journal of Marketing, 73, 52-68 Frow, P., & Payne, A (2007) Towards the 'perfect' customer experience Journal of Brand Management, 15(2), 89-101 Gupta, N., & Shaw, J D (2014) Employee compensation: the neglected area of HRM research Human Resource Management Review, 24(1), 1-4 Liz, S (n d.) How to Develop a Strategic Compensation Strategy Được truy lục từ GuideSpark, Inc.: https://www.guidespark.com/blog/how-to-develop-a-strategiccompensation-strategy/ Customer Experience Strategy (n d ) Được truy lục từ The Strategy Group: https://www.thestrategygroup.com.au/what-we-do/customer-experience-strategy/ Kreitner, & Kinichi (2006) Organizational Behavior New York: McGraw Hill Lazear, E P (2000) The power of incentives American Economic Review, 90(2), 410-414 Mascarenhas, O A., Kesavan, R., & Bernacchi, M (2006) Lasting customer loyalty: A total customer experience approach Journal of Marketing, 23(7), 397-405 Palmer, A (2010) Customer experience management: a critical review of an emerging idea Journal of Services Marketing, 24(3), 196-208 Pullman, C., & Gross, M A (1999) Ability of experience design elements to elicit emotions and loyalty behaviors Decision Sciences, 5(3), 551-578 Samad (2007) Assessing the Effects of Job Satisfaction and Psychological Contract on Organizational Commitment among Employees in Malaysian SMEs The 4th SEMS In A Global Economy Conference 2007 Schmitt, B H (1999) Experiential marketing Journal of Marketing Management, 15, 53-67 Schmitt, B H (2003) Customer Experience Management: A Revolutionary Approach to Connecting with your Customer New Jersey: Wiley and Sons Shaw, C., & Ivens, J (2005) Building Great Customer Experiences Basingstoke: Palgrave Macmillan Verhoef, P C., Lemon, K N., Parasuraman, A., Roggeveen, A., Tsiros, M., & Schlesinger, L A (2009) Customer experience creation: Determinants, dynamics and management strategies Journal of Retailing, 85(1), 31-41 Yaseen, A (2013) Effect of Compensation Factors on Employees Satisfaction - A Study of Doctor's Dissatisfaction in Punjab International Journal of Human Resource Studies, 3(1) Zomerdijk, L., & Voss, C (2009) Service design for experience-centric services Journal of Service Research, 13, 67-82 Lywood, J., Stone, M., & Ekinci, Y (2009) Customer experience and profitability: An application of the empathy rating index (ERIC) in UK call centres Journal of Database Marketing & Customer Strategy Management, 16(3), 207-214 10 Tieu luan ... luan Case Analysis I (Analyses the case identifying the key issues and/or problems Identifies problems using evidence from the case plus theories and concepts.) Current situation Happy Coffee. .. other coffee shops no longer earn a profit and barely cover operating costs Key issues  Poor customer experience In this case, poor customer experience was a significant cause of the Happy Coffee'' s... early to meet customer expectations before they leave Compensation Management Employee compensation is a component of human resource management (HRM) and is regarded as crucial to organizational performance