(Luận văn) solution to improve working motivation at fragrance team in luxasia vietnam

t to ng UNIVERSITY OF ECONOMICS HO CHI MINH CITY International School of Business hi ep w n lo ad ju y th yi pl n ua al Nguyễn Thùy Linh n va ll fu oi m at nh SOLUTION TO IMPROVE WORKING MOTIVATION AT FRAGRANCE TEAM IN LUXASIA VIETNAM z z k jm ht vb om l.c gm n a Lu MASTER OF BUSINESS ADMINISTRATION n va y te re th Ho Chi Minh City – Year 2020 t to UNIVERSITY OF ECONOMICS HO CHI MINH CITY International School of Business ng hi ep w n lo ad y th ju Nguyễn Thùy Linh yi pl n ua al va n SOLUTION TO IMPROVE WORKING MOTIVATION AT FRAGRANCE TEAM IN LUXASIA VIETNAM ll fu oi m at nh z z k jm ht vb om l.c gm MASTER OF BUSINESS ADMINISTRATION n a Lu n va SUPERVISOR: LE THI THANH XUAN y te re th Ho Chi Minh City – Year 2020 t to ng Assignment Cover Sheet hi ep Master of Business w n Student Name NGUYEN THUY LINH lo ad 22180017 Student Number y th Thesis Subject Name ju yi Facilitator Dr Le Thi Thanh Xuan pl Solution to improve working motivation at Fragrance Team in al Title of Assignment n ua Luxasia Vietnam 64 pages Due Date May 29th, 2020 Date Submitted May 29th, 2020 n va Length ll fu oi m at nh Declaration: z  I hold a copy of this assignment if the original is lost or damaged z vb  I hereby certify that no part of this assignment or product has been copied from any other the assignment k jm ht student’s work or from any other source except where due acknowledgement is made in gm  No part of the assignment/product has been written for me by any other person except where collaboration has been authorized by the subject lecturer/tutor concerned l.c om  I am aware that this work may be reproduced and submitted to plagiarism detection n a copy on its database for future plagiarism checking) a Lu software programs for the purpose of detecting possible plagiarism (which may retain n va y te re Signature: ……………………………………………………………………… th Note: An examiner or lecturer/tutor has the right not to mark this assignment if the above declaration has not been signed) t to ng hi ep w n lo ad ju y th yi pl SOLUTION TO IMPROVE WORKING MOTIVATION AT al n ua FRAGRANCE TEAM IN LUXASIA VIETNAM n va ll fu May 29th, 2020 oi m nh at Professor: Dr Le Thi Thanh Xuan z z k jm ht vb om l.c gm n a Lu n va y te re th t to Contents ng Chapter 0: Executive Summary hi ep Chapter 1: Introduction/ Company Overview Luxasia Group w 1.1 n 1.2 General Information Vision, Mission and Development Goals in 2020 lo Development Goals in 2020 ju 2.2 Organization of Luxasia Vietnam y th 2.1 ad Luxasia Vietnam yi Chapter 2: Problem Context pl al Structure of Retail & Operations Department n ua Fragrance Team Business Performance In 2019 va n Chapter 3: Problem Identification ll fu Symptoms Analysis oi m Sales Revenue Decrease Potential Problems nh Competition Between Channels 2.2 Ineffective Marketing Strategy/ Brand Development 10 2.3 High Turnover Rate 11 2.4 Poor Management (Literature) 13 2.5 Store Traffic (Literature) 14 at 2.1 z z k jm ht vb gm Diagram Of Symptom And Potential Problems 14 Problem Validation 15 om l.c Problem Consequences 17 Chapter 4: Cause Validation 19 a Lu Potential Causes 19 High Sales Target 21 1.2 Salary & Benefits (Work Motivation) 22 1.3 Family Reason 25 1.4 Unsatisfactory Work Performance 25 1.5 End of Contract 25 1.6 Poor Supervisor (Direct Manager) 26 1.7 No Process/ Manual (Working Process) 27 n 1.1 n va y te re th t to Initial Cause & Effect Map 28 ng Cause Validation 28 hi ep Final Causes & Effect Map 31 Chapter 5: Solution 32 w Alternative Solutions 32 n Add more Insurance for Beauty Advisor – Bao Viet Insurance: Healthcare 33 lo ad Develop Training Program 35 y th Solution Validation 37 ju Solution Implementation 38 Training Needs Assessment 38 3.2 Objective of application 39 3.3 Cost 40 3.4 Action Plan 40 yi 3.1 pl n ua al va n Conclusion 41 ll fu Chapter 6: Supporting Documents 42 oi m Literature Review 42 Research Methodology 42 nh Research Approach 42 2.2 Interview 42 at 2.1 z z vb Transcript 43 jm ht List of Figures / Graphs / Tables 53 Appendix 54 k gm Resignation Form 54 Exit Interview 55 om l.c Reference 59 n a Lu n va y te re th t to Chapter 0: Executive Summary ng Luxasia Vietnam achieved remarkable achievements in 2019 by the contribution of the hi ep whole employees There have been outstanding results of departments like Sales & Marketing Department, Channel Department, Cosmetic team,… However, Fragrance team which w contributes nearly 40% of the company's revenue caused a disappointment of a loss of sales n lo revenue and a growth sales decrease within the last years Due to the importance of the ad performance and also the business growth of Fragrance team as well as the organization, the aim y th of this research is to search out what the central factor and reason caused the present issues; then ju yi to propose solution to resolve the difficulties of Fragrance team pl The research almost focuses on qualitative approach by in-depth interview with specific al ua employees for analysis Besides, the primary and secondary data were also collected to illustrate n for the thesis Based on the information and the in-depth interviews with related employees and va n managers, the analysis is done with the aim to search out the deeper reasons There are several fu ll problems resulting in sales growth decrease at Fragrance team It is defined that High turnover oi m rate is the central problem causing the symptom Moreover, the problem is the result of decrease nh on work motivation of employees at Fragrance team In many the studies, work motivation is at indicated as one of the most important factors which impact on the efficiency of employee z z performance As a result, work motivation features a direct influence in a proportion way on the vb ht result of individual performance and organization business as well as the development of jm business Therefore, based on the theory, literature review, interviews with managers and self- k experiences, the advice and proposal are proposed with the aim to resolve the present issue and gm improve the business results of Fragrance team om l.c The proposal is raised to apply on Fragrance team which has significant contribution to the sales revenue of the organization Because of characteristic of Retail & Operations a Lu Department, there may well be an additional consideration for applying on Cosmetic team with n n va the aim to possess a connection, synchronization and fairness for whole Beauty Advisors y te re th Chapter 1: Introduction/ Company Overview t to Luxasia Group ng hi 1.1 General Information ep Luxasia Group was founded since 1986 and has been the leading omni-channel corporation of luxury product and brands in Asia Pacific market The object is to provide brands w n access to the largest retail market and e-commerce network in the beauty industry Group has lo ad made an effort to form a difference to consumers by bringing them the best brands from luxury, y th prestige to masstige categories ju Luxasia’s head quarter is founded in Singapore and the group has line-regional yi representatives of 15 offices like Singapore, Malaysia, Taiwan, Hong Kong, China, India, pl ua al Indonesia, Philippines, Thailand, Vietnam and Myanmar, Australia … and a team of quite 2,500 talented staffs Luxasia Group is holding distribution rights for over 150 brands including n n va Bvlgari, Guerlain, Hermès, La Prairie, Peter Thomas Roth, Prada, Salvatore Ferragamo, SK-II Vision, Mission and Development Goals in 2020 oi 1.2 m PUIG, and Yves Rocher ll fu Additionally, Luxasia Group has successful joint ventures with Elizabeth Arden, LVMH Group, nh at During operations years, Luxasia has achieved the success in developing and growing z new brands as well as expanding into world markets Entering a new integration period, the z k jm  Mission: Asia Pacific’s beauty omni-leader” ht  “Vision: Making a difference in every woman's life vb group has taken off general vision and mission forward to the success of business gm Source: https://www.luxasia.com/about/ Luxasia has 15 representatives in all over the world and hold the unique distribution of l.c om 150 brands including Perfume and Cosmetic With the fast development of market and also the n omni-leader, leading in Asia Pacific market a Lu trend of lifestyle, the vision and mission are targeted to attain the share market and to be beauty focus and invest on talented employees The goal shows the board management’s orientation, y te re organization to the success So, among the overall development goals in 2020, the target is to n va Furthermore, Luxasia Group well knows that Human Resources are the key to drive the th foresight and attention to key human resources Luxasia Vietnam t to 2.1 Organization of Luxasia Vietnam ng hi Phuoc My International (called Luxasia Vietnam) was founded in 2009 and has been one ep of the leading companies in beauty market in Vietnam So far, Luxasia Vietnam has been the unique distributor of more than 20 well-known brands including fragrance and cosmetic All w n brands come from masstige to luxury, such as Guerlain, Calvin Klein, Mac Jacobs, Kora, Wet n lo ad Wild Products are arranged and distributed at counters and boutiques in most of the shopping y th malls: Diamond Plaza, Vincom, Takashimaya, Waston, ju Luxasia Vietnam located at Vincom Dong Khoi, 72 Le Thanh Ton, District 1, Ho Chi yi Minh City The location is at the center which helps for easily visiting stores and boutiques, pl ua al controlling and solving problems in a fast way Below is an organization chart of Luxasia Vietnam The chart shows the operations and n n va the scale of business ll fu oi m at nh z z k jm ht vb om l.c gm n a Lu running the business Head of Departments will directly report to Country Manager and dotted th company and Group There is a transformation between Luxasia Group and Luxasia Vietnam in y more than 120 talents All activities and strategies are forward to the development goals of the te re Luxasia Vietnam is being operated by coordinating seven functional departments with n va Figure 1.1: Organization structure of Luxasia Vietnam (Internal report of Luxasia Vietnam, 2019) report to Regional Head all activities in Vietnam The operational model brings engagement and t to connection between local company and regional ng hi 2.2 Development Goals in 2020 ep For the development of Luxasia Vietnam in the year 2020, strategy and target are transferred from Luxasia Group and following as general goals of Group However, there is an w n adjustment to correspond to Vietnam retail market and business activities of the company lo ad In 2020, Luxasia Vietnam sets targets for the growing There is an expansion in beauty y th market; some new brands belonging to fragrance and cosmetic will be launched Especially, as ju one of development goal of Group in 2020, Human Resource is the key objective to focus and yi develop It is recognized that human plays an important role for the development of business and pl ua al common goal and Group also builds strategy for talents development and retention To drive the Group target, Luxasia Vietnam also builds the strategy which is suitable for employees and for n n va the development of the company in 2020, especially to retailers So, in parallel with economic ll fu development, talents development and retention are main goals of the company's this year oi m at nh z z k jm ht vb om l.c gm n a Lu n va y te re th 46 motivation to contribute to company There are - low income, no t to other reasons: low income, no career path, no career ng hi process, family reason… path, process, no family ep reason The reason why In case an employee does not achieve sales target in - not achieve sales w n high turnover rate 2-3 months, we will consider to individual training target lo ad relates to high sales and follow the results However, in case in next - no changes y th target? poor Manager of Team plays an important role in Team - not main problem ju Does months, there are no changes, we must say sorry yi and connection between staffs employee However, It is not main problem to high turnover ua al high cause engagement pl supervisor at rate As my management, there is just a case which n turnover has conflict between employees in a Team n va Fragrance Team? ll fu Why high turnover Experienced staffs leaved company while new - Experienced staffs oi m rate leads to sales employees have not trained and run work smoothly leaved decrease? as experienced employee Team performance is not - Not productivity at nh productivity as before collected Yes, that’s right We always follow and evaluate z As z there the performance of Team and individual We also ht vb information, due to target In case employees have bad performance, k case jm are many resigned set KPI for each employee to follow and as follow as guidelines, we will have solutions to n a Lu must say sorry om improve individual If they not improve, we l.c performance? gm unsatisfactory work show a bad working behavior and also not Interview with Ms Thuong – Talent & Excitement Manager before being T&E Manager at Luxasia Vietnam th resources at Luxasia Vietnam She has around 10-year experiences about human resources jobs y Talent & Excitement Manager She manages all activities and problems related to human te re Ms Thuong has worked at Luxasia Vietnam since September in 2018 with the role of n va 3.3 47 Question Answer Coding t to (Key answer) ng hi Ms Van & Ms Thuy In kick-off meeting, problems about high turnover - High turnover rate ep rate have been focusing In HR data and reports, the … focusing confirmed that the top concern of number of resign employees is increasing and the - Resigned employees w n Fragrance Team is percentage is higher than the same period last year … Increasing lo And it is have an uptrend in final months of this - Strategy in 2020 What is your year ad high turnover rate As strategy in 2020, decreasing turnover rate of rate ju y th comment? - Decreasing turnover yi pl Retail Team, especially Fragrance Retail Team is ua al top priority of Retail Team and HR Dept Many permanent staffs leaved their jobs while new - staffs leaved their important? employees have not experiences or knowledge as jobs n Why is it n va ll fu an experienced employee Training and updating - new employees oi m knowledge for new employees can spend more time - decreasing and costs to train them as an experienced staff performance of nh at Moreover, this can lead to decreasing performance counters z of counters; experienced staffs will be cover sales z counter to receive their commission jm ht vb for new employees to achieve the sale target of k Final, beauty industry has strict characteristics, va Why you say that In my opinion, no recognition and no opportunity - n human resources a Lu and lower 15 companies So it is hard to find om companies in the beauty industry just more than 10 l.c educated resource… The number of beauty gm narrow market, lack of human resources, low motivation th Any reasons lead to No process and everything by manual taking - take more time y high turnover? te re no promotion make decreased This leads to high turnover rate n no recognition and to develop to BA level make working motivation decreased 48 high turnover rate more time of employee These make job running - t to at Fragrance slowly job … running slowly ng hi Team? ep Any reasons lead to In my opinion, managing skill of Manager is - managing skill of high turnover rate important A manager will lead Team to success or Manager w Fragrance fail By a case happened at Fragrance Plaza Hung - ….important n at lo Vuong, Manager had conflict with teammates and ad Team? So one of recruitment conditions, we have to recruit ju y th could not solve problems or competition in a Team yi pl candidates who are suitable with the culture of ua al company, also characteristic of industry n As the termination Retail team has responsible to follow and manage - evaluate individual there are Team to show the best performance They will - employee turnover n va report, ll fu many resigned case observe and evaluate by individual and support to to improve In case employees could not show better oi m due unsatisfactory work performance, a case of employee turnover happens nh at performance How z you think? z ht vb How you think In a working year, we have some cases maternity - maternity leaves about the reason leaves so we need to recruit some temporary to - high season and jm of contract replace the employees When the employees back new launches k end rate of Besides, At high season and new launches, the lack - not main reason team? of human resources requires us to recruit some activities of team How you In my opinion, increasing basic salary could - support a part in th term, then, our employees also backed to work y required to replace permanent employees in a short te re rates of Fragrance team Because the cases are n va However, this is not main reason to high turnover n shown clearly a Lu As report, data is temporary employees to support for events and om Fragrance - temporary employees l.c turnover gm impacting on high to work, the contract will end 49 t to ng hi evaluate about support a part in their life (employees) The their increasing salary solution could push the motivation of employees (employees) for Beauty and it helps us create advantage competitive in - ep Advisors? recruitment and company branding life push the motivation of employees w n - create advantage lo ad you It’s good to add more benefits for employees - good y th How competitive ju evaluate about add However, it should consider carefully because of - should consider yi Advisors? ua add n Specific, al Beauty pl more benefits for the approval and application n va healthcare ll fu insurance of Bao oi m Viet insurance? How you think Training is one of solutions to improve motivation - improve motivation nh applying of employee It could be applied if a plan is detailed apply the solution develop training and carefully designed In my opinion, it could be increasing salary and at about z z applied the solution increasing salary and develop develop training ht vb program? time Interview with Ms Van Anh – Business Manager – Fragrance l.c gm 3.4 k be more efficient jm training program at the same time with the aim to program at the same om Ms Van Anh has worked at Luxasia Vietnam with the position Business Manager since a Lu 2017 She takes responsible for all strategy and all activities of Perfume brands of Luxasia n Vietnam Coding y te re (Key answer) n Answer va Question evaluate you Luxasia is operating as distributor model, not - Distributor model about principle So marketing strategies and branding - dependent on brand th How 50 t to marketing activities are dependent on brand principal We principal strategies? receive strategies and implement activities - regional guidelines ng hi following as regional guidelines ep How is thought about fragrance market However we have strategy and and detail w n conflict wholesale policy for wholesales market Portfolio for this lo sales market is specific and detail to avoid conflict to ad causing your Wholesales market is taken into account to expand - Portfolio specific at brand and retail market Fragrance Team? ju y th decrease yi Set pl How is the set sales Sales target is set at the beginning of year as business of Luxasia Vietnam and regional the beginning of year n ua al target? at Interview with Ms Hien – Counter Manager n va 3.5 fu ll With the 10-year working period at Luxasia Vietnam, Ms Hien has gained many m oi experiences in beauty retail industry She started with the positon Senior Beauty Advisor and at nh promoted to Counter Manager for years ago Now, she manages Counter at Takashimaya - the key Counter that contributing huge sales revenue to sales volume of Fragrance team z Coding ht vb Answer z Question (Key answer) evaluate you Promotion and brand activities are not appealed to - not appealed gm k jm How about customer The program is not as interesting as the - not interesting one of competitor such as Dior, Dolce & Gabbana, om strategies l.c marketing of Hermes a Lu perfume brands? n Why you think When wholesales channel is developed, customer - Customers … not wholesales will not interest in shopping mall They can buy interest in shopping - Lower price th Fragrance Team? of y decrease mall te re sales products at many sources with lower price n cause va that 51 Why high sales High sales target but lack of resource makes team - high sales target t to target leads to sales performance decreased - lack of resource ng hi decrease? ep Why sales target of Sales target of team is not achieved for many - Team experienced was months because experienced employees leaved employees leaved w company such as Tra My, Ngoc Nu This makes n decrease? lo ad team productivity decrease you Salary is lower than other company in industry and - Lower y th How about benefits are not good Some employees are - Incentives ….fine ju evaluate yi pl salary and benefits attracted by salary and benefits of competitors so Luxasia they leaved job Incentives scheme for employ is fine n Vietnam? ua al at n va No opportunities for I think that no development opportunity is not main - no development and problem leading to much resign employees opportunity is not training the Although we want to be promoted, we know that main problem ll oi m are fu development problems cause there are many responsibilities go with new title nh at high turnover rate Examples: I take around year to have an Fragrance opportunity to be promoted Deputy Counter z of z Manager and more than year for Counter ht vb Team? How you think Manager Many skills and knowledge need to be k Luxasia you Indeed, report sales numbers and bills and update - fine about sales on system by manual is fine Sometimes high work at takes much time, we are fine because we are not working Working environment of Luxasia Vietnam is good - full facilities environment at the The company provides full facilities for our jobs th is y How te re manual jobs? n Counters? Process, familiar to use new technique va to n process and the way seasons, we need much time to it Although it a Lu evaluate om How l.c Vietnam? gm at jm about opportunities improved and updated 52 counter? t to ng hi What subjects I want to have training classes about sales and sales management you want to have? management I think they’re important for and ep managers to manage task and staffs w Interview with Mr Tung – Beauty Advisor at Fragrance Diamond n 3.6 lo ad Mr Tung started job since the end of 2017 He is working at Fragrance Counter at y th Diamond Plaza in Ho Chi Minh City ju yi Answer Coding pl Question n ua al (Key answer) How you think At Luxasia Vietnam, there are no programs of - no program of and Many Beauty Advisors worked for over years at recognition fu for the same level, then, they leaved and moved to Beauty Advisor ll recognition m competitors with the higher level - move moved to oi employees? competitors at nh with the higher level z working We are supported from the company All - Stationaries are z is to n promotion How and va about programs of promotion and recognition to Beauty Advisor promotion vb provided in full jm ht environment at the stationaries are provided in full counter? k about training knowledge and skills It is helpful to my job l.c at om programs gm How you think We were participant in training classes to improve - helpful to my job Luxasia for Beauty want be communication skill skill communication y te re trained? to n you va What subjects I want to have training classes about English or - English n a Lu Advisor? th 53 List of Figures / Graphs / Tables t to Figure 1.1: Organization structure of Luxasia Vietnam ng hi Figure 2.1: Retail & Operations Department structure of Luxasia Vietnam ep Figure 3.1: Sales contribution by year of Fragrance team Figure 3.2: Total sales of Fragrance team compared to Target by months in 2019 w n Graph 3.3: Diagram of symptom and potential problems lo ad Graph 3.4: Diagram of symptoms and problems (updated) y th Figure 4.1: Voluntary staff turnover at MNC – Top & Bottom Industries ju Figure 4.2: Turnover rate of Fragrance Team compared to Retail industry yi Figure 4.3: Reasons for termination of Fragrance employees pl ua al Graph 4.4: Initial Causes and Effect Map Graph 4.5: Final Causes & Effect Map n n va Figure 5.1: Herzberg's two-factor model ll fu Table 5.2: Estimated cost for Bao Viet insurance m Table 5.3: Estimated cost for training courses oi Figure 5.4: Steps in a Training Needs Assessment nh at Figure 5.5: Action plan for training and development for employees at Fragrance team z z k jm ht vb om l.c gm n a Lu n va y te re th 54 Appendix t to ng Resignation Form CÔNG TY TNHH QUỐC TẾ PHƯỚC MỸ hi ep PHUOC MY INTERNATIONAL CO.LTD w RESIGNATION LETTER ĐƠN XIN NGHỈ VIỆC n lo Employee Code/ Mã số NV ad Full Name/ Họ Tên ju y th Gender/ Giới tính Position/ Chức vụ DOB/ Ngày sinh Department/ Bộ phận yi pl Application date/ Ngày nộp đơn Resignation date/ Ngày bắt đầu nghỉ n ua al Joining date/ Ngày gia nhập công ty n va Reason/ Lý xin nghỉ: ll fu oi m I will complete all handover before / Mọi cơng việc tơi bàn giao hồn tất trước ngày: at nh z z Employee Nhân viên k jm ht vb Date/ Ngày: ………………………………………………… Name / Họ tên: ………………………………………………… Agree/ Đồng ý l.c gm Approval/ Phê duyệt Disagree/ Không đồng ý om Applied date of resignation/ Ngày nghỉ theo đơn o Violation on resigning reason/Vi phạm lý nghỉ o Other day/ Ngày nghỉ k hác o Violation on time of notice/ Vi phạm thời gian báo trước Country Manager Giám Đốc Quốc Gia Date/ Ngày : Name / Họ tên : Date/ Ngày : Name / Họ tên : Date/ Ngày : Name / Họ tên : n va T&E Manager Trưởng phòng Nhân Sự n Direct Manager Quản lý trực tiếp a Lu o y te re th Thời hạn báo trước nộp đơn 30 ngày hợp đồng có thời hạn 45 ngày hợp đồng không thời hạn 55 Exit Interview t to ng hi ep 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 56 t to ng hi ep 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 57 t to ng hi ep 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 58 t to ng hi ep 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 59 t to Reference Sakuraki RJAS-ÉA Organizational Inertia and Excessive Product Proliferation ng 2016;70(1):119-31 hi Leonidou LC, Katsikeas CS, Samiee SJJoBr Marketing strategy determinants of export ep performance: a meta-analysis 2002;55(1):51-67 Havlíček K, Břečková PJCEBR SIGNIFICANCE AND DIFFERENCES OF w n lo MARKETING AND SALES CONTROLLING 2013;2(3) ad Richardson RJTJoPS, Management S Measuring the impact of turnover on sales ju y th 1999:53-66 Wu W-WJEswa Beyond business failure prediction 2010;37(3):2371-6 Milkovich GT, Boudreau JWJI, Boston Human Resource Management, Richard D yi pl n ua Perdikaki O, Kesavan S, Swaminathan JMJM, Management SO Effect of traffic on 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