(Luận văn) ineffective leadership style in sale department at cadivi company

t to UNIVERSITY OF ECONOMICS HO CHI MINH CITY ng International School of Business hi ep w n lo ad ju y th yi pl PHAN NGUYEN THU HANG n ua al n va ll fu INEFFECTIVE LEADERSHIP STYLE oi m at nh IN SALE DEPARTMENT z z AT CADIVI COMPANY k jm ht vb gm MASTER OF BUSINESS ADMINISTRATION om l.c n a Lu n va y te re th Ho Chi Minh City – Year 2018 t to UNIVERSITY OF ECONOMICS HO CHI MINH CITY ng International School of Business hi ep w n lo ad ju y th yi PHAN NGUYEN THU HANG pl n ua al va n INEFFECTIVE LEADERSHIP STYLE ll fu m oi IN SALE DEPARTMENT at nh z AT CADIVI COMPANY z k jm ht vb gm om l.c MASTER OF BUSINESS ADMINISTRATION n a Lu SUPERVISOR: Dr Pham Phu Quoc n va y te re Ho Chi Minh City – Year 2018 th t to TABLE OF CONTENT ng ACKNOWLEDGE hi ep EXECUTIVE SUMMARY CHAPTER I: INTRODUCTION ABOUT CADIVI COMPANY AND RECOGNISED SYMTOMS w n WITHIN SALE DEPARTMENT Background of CADIVI company ad y th 1.2 lo 1.1 Symptoms of problem in Sale Department at CADIVI company: high turnover rate ju yi CHAPTER II: PROBLEM IDENTIFICATION IN SALE DEPARTMENT AT CADIVI pl Potential problems in Sale Department ua al 2.1 n 2.2.1 Interview results va 2.2.2 Initial cause- effect map 11 n ll fu 2.2.3 Theoretical framework 13 m oi 2.2.4 Updated cause- effect map 14 nh 2.2 Problem Justification 16 at z 2.2.5 Central problem: Ineffective leadership style 16 z ht vb 2.2.6 Definition of central problem- ineffective leadership style 17 k jm 2.2.7 Justify the existence of problem: ineffective leadership style 18 gm 2.2.8 Justify the importance of problem: ineffective leadership style 19 CHAPTER III: CAUSE VALIDATION 23 l.c Identification of potential causes 23 om 3.1 a Lu 3.1.1 Poor attitude and personality of leaders 23 n 3.1.2 Soft-Skills shortage 23 va n 3.1.3 Poor leader-follower relationship 24 Causes validation of real problem: ineffective leadership style 26 CHAPTER IV: SOLUTION ANALYSIS 28 th 3.3 y Final cause-effect map 25 te re 3.2 t to ng hi ep 4.1 Theoretical framework 28 4.2 Short-term solution: Improving leader-follower relationship 29 4.3 Long-term solution: Solution for training, emphasizing soft skill and enhancing leader relationship 31 w 4.4 n Solution Comparison: short-term solution and long-term solution 32 lo ad CHAPTER V: SELECTED SOLUTION AND CHANGING PLAN 34 Selected long-term solution 34 5.2 Details plan for long-term solution 34 ju y th 5.1 yi pl 5.2.1 Criterion set of this plan: 34 al n ua 5.2.2 Action plan 35 Changing plan 38 ll fu 5.3 n va 5.2.3 Cost-benefit analysis of this comprehension plan 37 oi m CHAPTER VI: SUPPORTING INFORMATION 40 Questionnaire development to justify central problem 40 6.2 Questionnaire development to justify causes 41 at nh 6.1 z z ht vb APPENDIX 43 k jm REFERENCES 61 om l.c gm n a Lu n va y te re th t to LIST OF FIGURE ng Figure 1: CADIVI structure hi ep Figure 2: Turnover rate in Sale Department from 2015 to 2018 w Figure 3: Turnover rate of main departments at CADIVI in first months in 2018 n lo Figure 4: Initial Cause- Effect Map 12 ad Figure 3: Updated Cause-Effect map 15 y th ju Figure 6: Customer Satisfaction 22 yi pl Figure 7: Final Cause-Effect map 26 n ua al n va ll fu LIST OF TABLE m oi Table 1: Turnover rate in Sale Department from 2015 to 2018 nh at Table 2: Turnover rate of four main departments at CADIVI in first months in 2018 z z k jm ht vb om l.c gm n a Lu n va y te re th ACKNOWLEDGE I would like to express my great appreciation and endless thank to my supervisor, Dr t to Pham Phu Quoc, who has kindly supported, guided, motivated, and given me loads of ng advances during the time writing this thesis His encouragement and comments hi ep significantly help me to fulfill this Without his support and instructions, this thesis would have been impossible to be done effectively w In addition, I would like to approve my special gratitude to my family and all friends in n lo MBUS 7.1 for encouraging me, caring and giving me strength in all the time writing ad ju y th this thesis yi pl n ua al n va ll fu oi m at nh z z ht vb k jm om l.c gm n a Lu n va y te re Page EXECUTIVE SUMMARY This study has talked about the case in Sale department within CADIVI with the t to symptoms of the high turnover rates in the first six months in 2018 Based on the ng interview result and theoretical framework, ―ineffective leadership style in Sale hi ep Department at CADIVI‖ is the central problem that sale department needs to solve Ineffective leadership has been the great attributes to retention rate because of w significant role of the leader in the way their staff devote their time, efforts, commitment n lo and extend their support to achieve organizational goals Therefore, if turnover rate ad y th reduced, it could help to increase employee satisfaction, high performance and ju productivity In this thesis, leader personality, lack of soft-skill training, leadership- yi pl followers relationship and gender-related leadership are listed as potential causes of the ua al problem in Sale Department According to cost-benefit analysis between two solutions n as short-term and long-term, long- term solution selected as suitable solution, which va could improve soft-skill of leaders and enhance leadership relationship in sale n ll fu department With the detailed action plan and combination between sale department and oi m HR department, the situation of sale team is expected to be solved in near future The nh cost for this plan is approximately 80 million VND each year but it expected to reduce at the cost for recruit and train news replaced and the lower customer satisfaction z z ht vb k jm om l.c gm n a Lu n va y te re Page CHAPTER I: INTRODUCTION ABOUT CADIVI COMPANY AND RECOGNISED SYMTOMS WITHIN SALE DEPARTMENT t to 1.1 Background of CADIVI company ng This section aims to point some features of the Electric Cable Industry, especially hi ep CADIVI w 1.1.1 Overview of Electric Cable Industry n lo In this constantly changing world, Vietnam is also entering the accelerated stage ad with the fast development of technology According to investors, Vietnam is highly y th ju considered as one of the most attractive market Modernization applied for all industries yi from manufacturing to business, the main wire and cable industry is in the fast-growing pl ua al stage with the development of power generation, the construction of transmission and distribution networks from high voltage to low voltage networks and consumption The n n va demand for electric wires and cables for power network construction expected to ll fu increase rapidly in the coming years Therefore, wire and cable products are considered oi m as one of the most important contributors to the value of the industrial sectors in nh Vietnam There are more than 200 enterprises engaged in the production and export of at electric wires and cables Some typical companies in the industry can be named as: z z Vietnam Electric Wire & Cable (CaDiVi), Tran Phu Electric Company, LG Vina Cable vb ht Joint Venture Company, TaYa Vietnam Company, Cable and Telecommunication k jm (SaCom), gm In recent years, Vietnam's electric wire and cable industry is facing a great l.c opportunity, but there are also many challenges to overcome The recovery of the real om estate market has led to the demand for residential wires serving the infrastructure of a Lu industrial zones, new urban areas and office buildings CADIVI is the main unit n supplying power cables for many projects in Ho Chi Minh City Based on General is 388 million, up 47.0% over the same period in 2017 Vietnam's electrical wire and cable are mainly exported to China, Korea, Thailand, France, Malaysia Page y 50.5% over February 2018, total export value of this group in the first quarter of 2018 te re Vietnam exported to dosmetic markets in March 20118 reached $ 140.1 million, up n va Department of Vietnam Customs‘ statistics, the group of electrical wires and cables of Based on the analysis above, electric cable industry is really an interesting market and attracts a large number of work force t to 1.1.2 Overview of CADIVI company ng Vietnam Electric Cable Corporation (CADIVI) is established in 1975 as a state- hi ep owned enterprise and specializes in manufacturing various kinds of electric wire and cable CADIVI has five factories and two branches, distributing through more than 200 w n agents in Vietnam CADIVI is considered as one of the leaders of technology in wire lo ad and cable manufacturing in Vietnam After several times of rename and transforms, on y th August 08, 2018 CADIVI transformed as a Joint-Stock Company With more than 40 ju years of development, CADIVI has owned machinery and equipment from Europe, yi pl USA, and other developing countries in the region and maintained the business al ua philosophy that ―good quality is the key factor to the development of CADIVI‖ With n the vision of ―being one of the leading electric wire and cable manufacturers in the va n Southeast Asian region by 2020‖, CADIVI attempts to produce more high quality fu ll products, increase the revenue, meet more demand and build the workforce to be union, m oi active, creativity, professional and highly responsible nh at CADIVI‘s structure is shown as the chart below: z z ht vb General meeting of Shareholder k jm Board of supervisor gm Board of management om l.c Board of director y Page te re Figure 1: CADIVI structure Dept n Western Factory Technology va Eastern Factory Human Resources Dept n Manufacturing Dept Finance& Accounting Dept a Lu Sale Dept Quality Assurance Dept 1.1.3 Sale Department in CADIVI company With 32 people including 01 manager, 01 assistant manager, 02 deputy managers, t to supervisors who have been responsible in agency, tender, exported, project and 24 ng employees, sale department have to: hi ep - Be responsible for looking all sales opportunities to sell cables and wires with the existing and new customers, presenting effectively to the customers regarding the w n requested product, keeping contacts with the customers to understand their needs and lo ad requirements, identifying the target budget, classifying different business opportunities ju y th for each customer to plan comfortable target budget or forecast list Be one of the key department affecting the success of company - supervisors are responsible for exporting area, contributor area, power corporation yi - pl n ua al and project va n Despite of the important role, high salary and fast staff growth, symptoms of high ll fu turnover rate may be a big worry needed to be concerned to sustain long-lasting oi nh 1.2 m development for sale team in CADIVI Symptoms of problem in Sale Department at CADIVI company: high at z turnover rate z ht vb This part aims to validate the symptoms of problem in Sale Department through k jm time series analysis and comparison with other departments in company gm Firstly, according to a human resource report, turnover in Sale Department has a l.c high rate from 2015 to 2018, especially in first months in 2018, the rate is nearly 38%, om as being seen in figure follow: n a Lu n va y te re Page t to Mr.Vu: Enhancing teamwork‘s spirit and creating more opportunity for them to develop themselves ng I think that manager should spend more time to listen and understand staff more, instead of shouting and hi assign job ep Q10: Thank you very much for your responses w Mr.Vu: Thank you n lo  ad Respondent 5: The interview with Nguyen Hoang Vu, the 2nd interview Q1: Hi again, can we continue to discuss our last topic y th Mr Vu: Yes ju yi Q2: You said you were disappointed with your leaders, does your leaders have enough leadership pl experiences and compassion with employee? al ua Mr Vu: No She really did not care what problems I had when I asked permission to take some n day off She refused though I did not have any important thing to solve n va Q3: What about their performance? Did you see them very intelligence and good at education? Did fu they mentor and give you advance when you have problems? ll Mr Vu: Just little They required me to found the way to solve by myself and they just cared about oi m the results nh at Q4: Did your managers or supervisors mentor and give you advance when you have problems? What z is about giving feedback? Dis they usually give feedback for you? z ht vb Mr Vu: At the first time, my direct manager gives feedback to me constructively But now she is too jm busy to help me At the present, most of us need to own task by ourselves k Q5: For you, how importance of soft-skills training to leadership effectiveness? gm Mr Vu: I think it can help to change leadership skill and enhance their effectiveness If leaders had salesmen‘s loyalty and satisfaction because of the feeling a part of team om l.c strong soft-skill, they could know the best way to manage, train and lead well It also could help to improve a Lu Q6: Did the company provide soft-skill training for manager and supervisor in sale team? n va Mr Vu: In CADIVI, it mainly focuses on technology and procedure without focusing on soft-skill n training y te re Q7: What topic did leaders need to be trained to improve? analysis but there is lack of creative method They need to think out of box, give more trust in our ability and listen to our idea I think communication and management skills need to be trained for leaders Page 53 th Mr Vu: My current supervisors and managers are knowledgeable about the product and competitor t to Q8: Is there any rapport between salesmen and leaders? ng Mr Vu: Not at all Just my supervisors usually deliver rapport to me hi ep Q9: Did your leaders give you motivation to contribute and devote for working? Mr Vu: Yes, but just sometimes So I usually feel bored and lost direction w n Q10: Did your leaders arrange time for your team to have some outside activities to enhance? Did the lo ad leader be actively engaged in making sure that employee interests are satisfied? ju y th Mr Vu: No, we are too busy to arrange time for it yi Q11: Did your manager trust you and give you many opportunities to show strength? pl Mr Vu:: I think just 50% My direct managers did not believe on me with critical task ua al Q12: Did you receive any care from your boss? Did you have a good relationship with them? n n va Mr Vu: Like I said before, I think she does not have enough time to listen, care and understand ll fu what I really think or want The way my manager is force me doing like the way she want oi m Q17: How does gender difference leadership in sale team? nh Mr Vu: Actually, I see that gender is not the influence implement Because leadership effectiveness at will depend on their ability, skills and knowledge, not gender z vb Respondent 6: The interview with Ms Nguyen Thi Hoang Anh, 1st interview jm ht  z Q19: Thank you for your sharing Q1: Hello, my name is Thu Hang and now I am currently working on my graduation thesis May we k Ms Hoang Anh: Yes om Q2: Can you introduce little about yourself? What is your current job? l.c gm talk around 30 minutes? a Lu Ms Hoang Anh: My full name is Nguyen Thi Hoang Anh Now I worked in Sale Department at n CADIVI n y te re Ms Hoang Anh: I have worked in this department for years with the Economic background va Q3: How long have you been working in CADIVI? Have you change many position? Page 54 th Q4: How was your feeling when you worked at here? t to Ms Hoang Anh: For me, I feel stressful with a high workload but no have enough skill, ng understanding about CADVI‘s product and lost direction Therefore, it makes me feel difficult to my job, hi low satisfaction but my direct manager also did not give me necessary advances, instruction and suitable ep training program In my current position, the work procedure which I have to includes steps: Seeking customers, attracting and negotiating them, suggesting suitable price, making contact and maintaining w n relationship with customers I really cannot balance work and life lo ad Q5: Do you see any problem in your department now? y th Ms Hoang Anh: Of course I have worked at here for a long time so I can understand deeply about ju inside problem in here A plenty of workers quit jobs, especially young salesmen because of disappointed yi ua al and bad spirit pl about working environment and leadership Most of employees go to work with tiredness, loss of energy n Q6: In your opinion, what is the reason for that problem? va n Ms Hoang Anh: It can come from lack of necessary training, lost no direction, unclear career path ll fu and pressure from my manager oi m Q7: Can you detailed more about it? at nh Ms Hoang Anh: Generally speaking, our company have training program but just at the first time we apply the job But as you know, our company is getting expanded, we did not updated it so it made us a lot z z of difficulties to meet customer‘s demand Besides, we not have ability to present and persuade customer vb as well as effective In addition, manager not trust in us, thus they need to many thing and not have ht k jm free time to share or listen us gm Q8: So what is the main reason? Ms Hoang Anh: I think because the lack of training and unclear information about our product om l.c Q9: How can it fluent department productivity? a Lu Ms Hoang Anh: I see it makes the low productivity for misleading and need time to work together n We also need to recruit and train again new staff Since Quarter 1/2017, sales has decreased in Agency Area n va (from 3,212 billion VND in 2016 to 2,707 billion VND in 2017) In other hand, products are higher cost 30% as 2016 y te re than other competitions, nearly 30-40% CADIVI lost some market share, especially exported area decrease Page 55 th Q10: What you think that your department needs to change to increase employee retention? t to Ms Hoang Anh: Training more and give us opportunities to join skill training to be more confidence ng and professional working with customers hi Q11: Thank you very much for your responses ep Ms Hoang Anh: Thank you w n Respondent 6: The interview with Ms Hoang Anh, the 2nd interview  lo Q1: Hi again, can we continue to discuss our last topic ad Ms Hoang Anh: Ok y th ju Q2: What you feel about your manager performance? Did you see her very intelligence and good yi at education? Did you feel that the leader has time to deal with the everyday business of their employees pl (i.e camaraderie, group membership, career interests, conflict resolution)? ua al Ms Hoang Anh: She is good at working analysis But she seems too busy to care and understand n n va staff ll fu Q3: Did your leaders have positive influence to staff‘s emotion and feeling? oi m Ms Hoang Anh: Actually, my direct manager is friendly with me at Dis they usually give feedback for you? nh Q4: Did she mentor and give you advance when you have problems? What is about giving feedback? z z Ms Hoang Anh: Like I said before, they are busy to listen and understand me Therefore, when I try vb to raise voice or give new idea, they did not listen and gave me chance to try doing by my way ht gm Ms Hoang Anh: Sometimes, I feel stressful with lot of unclear job k jm Q5: Did your managers define clearly your role and responsibility? l.c Q6: For you, how importance of soft-skills training to leadership effectiveness? n Q7: What you think that your managers and supervisors need to improve? a Lu improve our communication, our relationship would be improved om Ms Hoang Anh: For me, it is important If my managers and supervisors could spend more time to va n Ms Hoang Anh: Soft-skill and good relationship building skill I hope that in the future, they would Ms Hoang Anh: May be no I need to follow without encouragement or comfortable feeling Page 56 th Q8: Did your leaders give you motivation to contribute and devote for working? y te re not stop me immediately when I tell about new idea t to Q9: Did your leaders arrange time for your team to have some outside activities to enhance? Did the ng leader be actively engaged in making sure that employee interests are satisfied? hi Ms Hoang Anh: Certainly not Because they are so busy ep Q10: Did your manager trust you and give you many opportunities to show strength? w n Ms Hoang Anh: Just a little But they always assign me some simple tasks, which makes me bored lo and unexcited And sometimes when there is some problem, they complain and blame to me ad y th Q11: Is there any difference between male and female leaders in your department? ju Ms Hoang Anh: No yi pl Q19: Thank you for your sharing al Respondent 7: The interview with Mrs Pham Le Anh Van n ua  n talk around 30 minutes? va Q1: Hello, my name is Thu Hang and now I am currently working on my graduation thesis May we fu ll Ms Van: Of course I am pleasure to discuss with you oi m Q2: Can you introduce little about yourself? What is your current job? nh at Ms Van: My full name is Pham Le Anh Van Now I worked as a Salesman at… z z Q3: Did you use to work as Sale Department in CADIVI and which was your position? vb Q4: How was your feeling when you worked at there? k jm ht Ms Van: Yes, I recently left it last month gm Ms Van: To be honest, I could not learn anything when I worked at there The procedure was too grow up a Lu Q5: So, why did you decide to leave your job at CADIVI? om l.c complicated to take me much time to useless thing The job did also not have many challenges for me to n Ms Van: Like I said before, I want to have an active job which challenged me everyday and makes va n me better than the day before It also did not have internal database system, working delegation board, urge everyone and support sale team as soon as possible It led to the low performance for whole department Besides, due to the unattractive salary policy, it makes the salesmen lower efforts and be bored to work In Page 57 th and no record It is the reason why managers could not remember how many works needed to be solved to y sale manager supervised all sections but the work in each section had no management by person in charge te re meeting and team building to make everyone in department know clear about the information In other hand, t to addition, there are deputy managers in sale manager but they cannot decide anything without big boss‘s ng direction It made to waste a lot of time hi Q6: What is the major reason? ep Ms Van : I graduated in Canada with master degree, so I can use English fluently But in my w department, I could not have opportunities to extend my strength My direct boss just assigned us to for n lo her She always thought that she was the most intelligent person in my team ad Q7: You said that in sale department, there was an unattractive salary policy Can you give me more y th detailed about this issue? ju yi Ms Van : Actually, the salary and benefit in sale department are high but they were not based on pl productivity and target It means the commission would be divided as same as different people The al ua salesmen who worked longer could have a higher salary The positive thing is limited pressure of n competition between salesmen, but negatively impact on productivity and motivation to try the best This va n policy could not foster and kick staff off for better sales Especially for young staff like me, we did not have ll fu a high base salary oi m Q7: What is about your job now? can develop and improve themselves better at nh Ms Van: Now, I moved to international company so I think it the good environment for young talent z z vb Q8: Thank you very much for your responses Wish you having a good job in your new company jm Respondent 8: The interview with Mrs.Nguyen Thi Thuy Trang k  ht Ms Van: Thank you gm Q1: Hello, my name is Thu Hang and now I am currently working on my graduation thesis May we om l.c talk around 30 minutes? Mrs Trang: Okie Fine n a Lu Q2: Can you introduce little about yourself? What is your current job? n va Mrs.Trang: My full name is Mrs Nguyen Thi Thuy Trang Now I worked as a Salesman in CADIVI Page 58 th Q4: How was your feeling when you worked at here? y Mrs Trang: I have been working here for years as a salesman from agency to projector te re Q3: How long have you been working in CADIVI? Have you changed many position? t to Mrs Trang: Generally talking, I feel little stressful and pressure I have learned many things since I ng worked at here but now I have work too much to spend more time for me and my family I often need to hi work overtime and sometimes have to work at home ep Q5: Do you see any problem in your department now? w Mrs Trang: I think the problem is that a few of young salesmen leave sale department Most of n lo salesmen feel loss energy to motivation to work The working environment is quite overwhelming I rarely ad see smile in my department y th Q6: In your opinion, what is the reason for that problem? ju yi Mrs Trang: I think that we lack of team building activities to relax and enhance teamwork spirit pl There is a lot of work to because of lack of key person The manager also not support and sympathize al n ua for us She did not check the results from employee and blame for us if having the mistake n va Q7: So what is the main reason? fu Mrs Trang: Leadership style is the main reason Most of us are dissatisfied with our managers We ll not have time for sharing, understanding and supporting together We can also not balance our life and m oi work Therefore, it makes us be stressful as well as lack of motivation at nh Q8: Are you satisfied with your salary now? z Mrs Trang: Actually, I think we have a high income But the salary policy in our department is z vb unattractive to make us improve and develop ourselves The commission is the same as different person It jm ht makes to diminish contribution of young person It is also the reason why a plenty of salesmen leave our k company to others gm Q9: Many young salesmen left your department, does it make any impact on your department om l.c performance? Mrs Trang: Certainly Young salesmen not only have a full of energy, active and creative but also a Lu has ability to learn, adapt and work under high pressure Besides, when recruit others to replace, we need n time to wait them accustom and keep up It really affects to productivity We need to work more to fill the n va vacancy In additions, the result of customer satisfaction showed that decreasing of customer satisfaction in second thing is soft-skill training Page 59 th Mrs Trang: I think that the first thing is teamwork spirit, which decided the combination of team and y Q7: What you think that your department needs to change to increase employee retention? te re first months in 2018 t to Q8: Training Is it mean that in your company, there is lack of training program, isn‘t it? ng Mrs Trang: Absolutely, my company rarely has soft skill training for us, like: time management, hi solving problem and critical thinking ep Q9: Thank you very much for your responses w n lo ad ju y th yi pl n ua al n va ll fu oi m at nh z z k jm ht vb om l.c gm n a Lu n va y te re th Page 60 t to REFERENCES ng Borman WC, Motowidlo S Expanding the criterion domain to include elements of contextual hi performance Personnel Selection in Organizations; San Francisco: Jossey-Bass 1993:71 ep Lee TW, Mitchell TR Control turnover by understanding its causes The Blackwell Handbook of Principles of Organizational Behaviour 2017:93-107 w n Acker GM The impact of clients' mental illness on social workers' job satisfaction and burnout lo De Cremer D Why inconsistent leadership is regarded as procedurally unfair: the importance of y th ad Health & Social Work 1999;24(2):112-9 ju social self‐esteem concerns European Journal of Social Psychology 2003;33(4):535-50 Bandura A The evolution of social cognitive theory Great minds in management 2005:9-35 Abbasi SM, Hollman KW Turnover: The real bottom line public Personnel management yi pl ua Dardar AHA, Jusoh, A., & Rasli, A The impact of job training, job satisfaction and alternative job n al 2000;29(3):333-42 va n opportunities on job turnover in Libyan oil companies Procedia-Social and Behavioral Sciences ll Gong Y What makes people stay? 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