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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 Gian Hong Phi n va ll fu oi m at nh THE JOB STRESS IN AIRCRAFT z z jm ht vb SERVICE INTERNATIONAL IN k VIETNAM AIRLINES CATERERS om l.c gm n a Lu MASTER OF BUSINESS ADMINISTRATION n va y te re th Ho Chi Minh City – 2019 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 Gian Hong Phi n va ll fu m oi THE JOB STRESS IN AIRCRAFT at nh z SERVICE INTERNATIONAL IN z vb k jm ht VIETNAM AIRLINES CATERERS om l.c gm MASTER OF BUSINESS ADMINISTRATION n a Lu n va SUPERVISOR: Dr Nguyen Phong Nguyen y te re th Ho Chi Minh City – 2019 t to ng SUPERVISOR’S REPORT ON THE THESIS PROPOSAL SUBMITTED hi FOR DEGREE OF MASTER of BUSINESS ADMINISTRATION ep w The thesis proposal title: THE JOB STRESS IN AIRCRAFT SERVICE n lo INTERNATIONAL IN VIETNAM AIRLINES CATERERS ad Student Name: Gian Hong Phi - Student ID: 22150050 y th Supervisor: Dr Nguyen Phong Nguyen ju Remarks on the student’s attitude: pl  yi General comments: al ua ………………………………………………………………………………………… n ……………………………………………………………… va Remarks on the assignment’s academic quality: n  ll fu ………………………………………………………………………………………… oi m ……………………………………………………………… gm  Other………………………… om l.c  The Turnitin plagiarism percentage: k  No jm ht  Did the student follow the report schedule? Supervisor’s signature vb Other remarks:  Yes z  Not meet requirement for submitting z  Meet requirement for submitting at nh Overall assessment: n a Lu n va y te re th t to Table of Contents ng hi ep Background: w 1.1 Company background: n 1.2 lo 1.3 Initial cause effect map: 1.4 Update cause effect map: 19 1.5 Potential problem of interest: 22 ad Symptoms: ju y th yi pl n ua al va n Problem Justification 23 ll fu Central problem definition 23 2.2 Problem existence: 23 2.3 Problem importance: 25 oi m 2.1 at nh z z ht vb k jm Causes validation and solutions: 27 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 om l.c gm 3.1 n a Lu n va References: 39 y te re th t to Executive summary ng hi In a long time, Aircraft Services International section (ACSI) in Vietnam Airlines ep Caterers (VACS) is known as a section with high number of staff leaving the job, w n especially in new employees However, the situation become worse in recent years As a lo ad result, ACSI is always in lack of manpower situation In the contrast, the number of y th ju international flights has increasing dramatically in same time Therefore, VACS should yi pl recruit new employees for ACSI continuously The high turnover rate is not only ua al increasing the cost for company but also reducing the quality services of ACSI n va n By using the interview method, some main reasons for this problem are listed: the job ll fu oi m stress, the job dissatisfaction and dissatisfied in career development However, because of at nh the limitation of this thesis, as well as the possible of the solutions, this thesis will focus z on the job stress factor, which is already as a result of various minor causes For example: z vb jm ht poor management skills, job dissatisfaction… By providing some potential solutions for k reducing the job stress, it is expected to decrease the turnover rate as well as to improve om l.c gm the working environment in ACSI n a Lu n va y te re th t to Background: ng hi 1.1 Company background: ep w Vietnam Airlines Caterers (VACS) is a company processing inflight meals and providing n lo catering services to airlines at Tan Son Nhat International Airport since 1993 Vietnam ad ju y th Airline Caterers is also a subsidiary and head catering quarter of Vietnam Airlines After yi 24 years of growth, Vietnam Airlines Caterers has been received many certificates and pl ua al awards For examples: ISO9001:2008 Certificate, HACCP Certificate, The Catering n Award "Best Performance of 2016" from Asiana Airlines… Vietnam Airline Caterers va n now is the largest airline caterer company in Vietnam and provides about 23,000 meals ll fu oi m per days for both Vietnam Airlines and 22 international airlines in Tan Son Nhat at nh International Airport z Symptoms: z 1.2 ht vb k jm In Vietnam Airlines Caterers, the Aircraft Service International section (ACSI) of gm Operation Department is responsible for loading the in-flight meals for international om l.c 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 a Lu n number of international flights has increased dramatically For more detail, the ACSI now n va is lack about 10 staff to cover all the operation activities and fulfill all the days off for te re y employees At the moment, over 50% employees are new persons, who have less than th years working in company t to After collecting the data from company, a report of turnover rate in ACSI are made by ng hi myself However, because of the limitation of data, in the thesis, I will choose the time ep from May 2015 to May 2017, when I begin working in VACS, and this is the time having w n the high turnover rate in ACSI lo ad In this period, the flights of present customers and new customers have increased y th ju dramatically For example: yi pl n ua al -China Southern increased from flights/day to flights/day n va -Eva Airlines and Korean Air increased from flights/day to flights/day fu ll -All Nippon Airways and Philippine Airlines added more flight per day oi m at nh -China Air, Cathay Pacific and Singapore Airlines added more flights per weeks z -New customers are Turkish Airlines, Hongkong Airlines, Jetstar Airways, Air New z vb jm ht Zealand and Xiamen Airlines Each airline is operating about to flights per week k Totally, the numbers of new flights increased about 103 flights per week According to gm meal daily report from Production Department last week, the number of international om l.c flights now about 250 flights per week It means there are increased from 150 per week in a Lu 2015 to 250 flights per week in the present It is about 67% increasing in years In the n n va contrast, the total of employee in ACSI increased from 41 in 2015 to 47 official staff in te re the present It is only about 15% increasing in years y th t to Table 1.1: The increasing of flights per week and number of ACSI staff ng hi May - 2015 May – 2017 % Increase ep 150 250 67% ACSI Staff 41 47 15% w Flights per week n lo ad ju y th yi pl Compared increasing ua al n 250 n va ll fu 150 oi m 41 47 at nh MAY 2015 z ACSI staff z Flights/Week MAY 2017 jm ht vb After collecting the data, the statistical analysis of the turnover rate in ACSI section is k gm about 21.2% from 2015 to 2017, while the turnover rate of employees who leave after l.c less than year is about 71% which is explanation by the calculation below: om a Lu Calculation of turnover rate: n n y te re Employee separations for the period Average number of the employee during the period va 𝐓𝐮𝐫𝐧𝐨𝐯𝐞𝐫 𝐫𝐚𝐭𝐞 𝐟𝐨𝐫𝐦𝐮𝐥𝐚 = th Employee separations for the period from May – 2015 to May – 2017 are 25 Average number of the employee during the period t to ng hi - May – 2015: 41 employee - May – 2017: 47 employee ep  Average number of the employee during the period: (41+47)/2 = 44 w  Turnover rate: 25/44 is nearly 57% n lo ad According to Nahar, Islam (2), the acceptable turnover rate is about 25%, but for the low y th ju skill job like on ACSI, the turnover rate can be exceeding 50% normally (6) The yi pl turnover rate for ACSI employee is nearly 57% and this rate is extremely high Moreover, al n ua the number of flights also increases 67% from 2015 as mentioned above These factors n va lead the result that the ACSI managers are impossible to ensure having enough fu ll manpower for operation activities daily, as well as schedule enough the day off and m oi vacation for all employee Therefore, employee in ACSI sometimes have only days off nh at in a roster - week The situation has become so serious that company decided to pay z z money for permission days for all employee in ACSI in 2016, because the manager ht vb k jm reports that he could not handle to set up permission days for his staffs This situation is n va In order to preparing the initial cause effect map for the reason of high turnover, some n a Lu Initial cause effect map: om 1.3 l.c pay money for the permission days on 2017 gm still serious in the present, and it is predicted by the ACSI manager that company should y te re short interviews are conducted with present staff and formers staff in ACSI th Table 1.2: List of interviewees t to ng ORD Name hi ep w Length of Leaving Service Nguyen Thanh Ki Bachelor Staff Not Nguyen Le Anh Quang Bachelor Staff Not Bachelor Staff 2017 Bachelor Staff 2016 College Staff 2016 n Year of Education Position lo ad Nguyen Hong Bang Tran Quoc Vinh Nguyen Hoang Duy ju y th yi pl n ua al va n After conducting with them, some their reasons and opinions are shown in below table ll fu oi m Table 1.3: Cause of high turnover rate Details at Main reasons nh Name z z Nguyen Thanh Ki ht vb -Imbalance work life Imbalance work life -Job stress k jm -Lack of day off gm Job stress: -Poor communication among other sections -Unfair treatment -Limited career growth Job stress: -Low salary -Heavy workload y -Unstable working time te re -Job stress n Imbalance work life va -Imbalance work life n a Lu Nguyen Le Anh Quang om l.c -Heavy workload th 10 Causes validation and solutions: t to ng 3.1 The Real Causes of Central Problem List: hi ep In order to find out list of real cause, the literature have been searched and I found w n potential causes of job stress In addition, I conducted direct interviews with 05 staff lo ad working in ACSI section and explore factors effecting job stress ju y th yi - Work overload: this is the extent to which individuals feel that the demands of their pl ua al workload and the associated time pressures In catering industry, employees must face n consequently heavy workload because they must take caring standards, delivery on-time va n and customer satisfaction Overloads in workplace has been cited the main causes of job ll fu oi m stress and let employees leave their job (12) Workload has significant impact on the at nh performance of employees The heavy workload extends low performance of employees, z increasing job stress and burnout and promote turnover rate (13) z vb jm ht - Imbalance work-life: The demands of work have the potential to spill over and affect k personal and home life and so put a strain on relationships outside work Hsieh and Eggers gm (14) summarized the characteristics of hospitality work, such as long working hours, shifts l.c om on weekend and stressful working condition These characteristics left hospitality a Lu employees limited time for other non-work related issues, especially family activities As a n va result, the imbalance between work and life created negative issues, for instance, n te re dissatisfaction with personal life, marriage and family y for workers Such experiences are very stressful and negatively affect worker well-being Unfair treatment by more powerful persons in the company may be damaging for lower 27 th - Unfair treatment: many authors suggest that unfair treatment by others is a real problem status employee or person in service roles because they are often unable to retaliate and t to ng may have to hide any negative feelings (15) hi ep - Poor communication and resources: to perform a job effectively, individuals need to feel w n that they have appropriate training, equipment and resources They also need to feel that lo ad they are adequately informed and that they are valued Stress may result from lack of: y th ju information about what is going on in the organization, feedback on performance, yi pl adequate training to the job and equipment or resources to the job (16) ua al -Poor motivation: it has a relationship between job stress, job motivation and job n va n satisfaction While motivation is positively related to job satisfaction, stress has a negative fu ll influence on job satisfaction It is possible that a motivated manager or supervisors can oi m at nh decrease the amount of perceived stress, by giving employees more autonomy on the job (17) z z vb Set of solution: To find my solution used and running to following  The tools of the quantitative researcher: questionnaire surveys om n a Lu  First part (question 1-5): question about factor make work stress l.c Questionnaire design: have two parts with 10 questions: gm - k jm ht 3.2 n va  Second part (question 6-10): question about what company/yourself need to y te re reduce work stress VACS  Analyzing quantitative research: Use statistics method 28 th  Size of the sample: choose random sampling 10 people are working at ACSI section in Part 1: The factors make work stress: t to ng hi Question Percentage Work overload w 10 100% 0% Neutral 20% 20% 60% 10 100% 0% 10% 60% 20% 10 100% 0% 10% 30% Disagree n Person y th ep Category lo ad Agree Completely Agree Imbalance work-life Disagree Neutral Agree Completely Agree Unfair treatment Disagree Neutral Agree Completely Agree Poor communication and resources Disagree 20% Neutral 20% Agree 40% Completely Agree 20% ju yi pl n ua al n va ll fu oi m at nh z z k jm ht vb om l.c gm 100% n 10 60% a Lu n va y te re th 29 ng hi Poor motivation in section 100% Disagree 10% Neutral 50% Agree 20% Completely Agree 20% ep 10 t to w n lo ad y th Part 2: What way decrease stress: ju yi Person pl Question Category al Building an efficient program to hire new staff Disagree Neutral Agree Completely Agree Building a reasonable work shift schedule Disagree Neutral Agree Completely Agree 10 100% 0% 20% 40% 40% 10 100% 0% 30% 30% n ua Percentage n va ll fu oi m at nh z z k jm ht vb om l.c gm va n Building an efficient program to training new 40% a Lu 10 100% n 0% Neutral 30% Agree 30% th Disagree y te re staff 30 Completely Agree 40% 10 100% Disagree 10% Neutral 20% 30% 50% 10 100% 10% 70% 10% 10% t to y th ng Be sure the workload is suitable and fair to all hi ep members of staff w n lo ad Agree Completely Agree 10 Increase motivate in section Disagree Neutral Agree Completely Agree ju yi pl n ua al n va ll fu oi m at nh z z ht vb Based on the collecting data and analyzes by qualitative research and quantitative research, k jm there are many factors that affect the work stress at ACSI Standard deviation and mean to Part Part People 10 n 3 3 2 4 2 4 4 3 4 3 3 2 n va a Lu om l.c gm evaluate and are summarized in the table below: y te re 31 th 4 4 4 3 3 4 4 2 2 4 4 4 y th 3 4 4 3 3 4 1.07 0.97 0.79 0.88 0.88 0.82 0.79 2.5 3.2 3.1 3.1 3.3 2.2 t to ng hi ep w n lo pl yi 10 ju ad ua al va 0.84 0.63 0.71 3.4 3.2 3.5 n deviation n Standard ll fu 2.6 oi m Mean at nh z z Factors affect work stress at ACSI: work overload, imbalance work life, unfair treatment ht vb k jm The solutions decrease work stress from survey results show that four ways to reduce gm stress: building efficient program to hire new staff, building a reasonable work shift suitable and fair to all members of staff n Recommend solution: a Lu 3.3 om l.c schedule, building an efficient program to training new staff, be sure the workload is n va y te re In order to reduce the stress in workplace as well as the high turnover rate in ACSI, I th provide a step by step solutions as follow: Step - Building efficient program to hire new staff: 32 The candidates not know exactly about the job It is not an office job It is a hard job t to ng require you working on shift schedule, outside on the airport, high pressure Some hi ep candidates are disappointed on the first training day and quit the job immediately w Therefore, I recommend VACS should provide more information about disadvantage as n lo ad well as the benefit for this position on recruitment information and before the interview y th day For example: the staff in ACSI will work outside, on the air ground, under the sunny ju yi or rainy environment, loud noise from the airplanes, poor physical working condition… pl n ua al Thus, the candidates can understand what the job is and they want to apply the job or not n va We can delist the number of candidates, only interview and hire the person who really ll fu need this job By this way, we can reduce the number of people who quit on first day or oi m first week after the recruitment nh at Step - Building an efficient program to training new staff: z z ht vb This position is an on-the-job training A new staff will be trained by an experience staff k jm However, but the old staff now are extremely busy with their job in working time, so they gm are lack of time to train new comer carefully An old staff confess that as a trainer, he will om l.c need more time to explain carefully for new comers about the procedure and how-to-do the a Lu job But he still should his own work on the shift, which are already very heavy Thus, n many old staff avoid to train the new comer or cannot train them carefully as in the past n va After one-month training, the new employees need to prepare and load the inflight meals te re y by themselves However, as a result of unwell training, they are poor working skill staff th and usually make many mistake in working and need other co-workers help them to fix the problem In addition, because of high turnover rate, some staff with only some month 33 experience can be a trainer for a new staff As a result, the new staff cannot be training t to ng well hi ep Therefore, I suggest manager of ACSI need to produce a new training program Some w n good experience workers can be chosen to become trainers, and they should have less lo ad work on their shift, so they can coach the new employees carefully In the case someone is y th ju so bad or not good enough, he should be trained one more month or fired, to ensure that all yi pl new workers can work well after training time This solution will help increasing the al n ua working skill of all new workers Although they need more time to work everything n va smoothly, but at least they will not make pressure to other members on working time fu ll Step - Be sure the workload is suitable and fair to all members of staff oi m at nh In a shift time, the on-duty team-leader will assign work for all member of staff in this z shift time and he should it fair But sometime, the on-duty team-leader will assign other z vb jm ht team leader or some his close co-worker work less than other team members in the same shift time It means that the other staff in that shift should more work because of this k gm unfair treatment ACSI should training their team leader about this problem The team l.c om leaders should understand the consequences of the unfair treatment to the organization n a Lu The lazy team leaders or workers should be warning and supervised In order to ensure that n va this problem will be solve, a monitoring mechanism should be established The purpose of y te re a monitoring mechanism is to further the effective implementation of the rules, to ensure th the workload is suitable and fair to all members of staff The monitoring mechanism can be managed by a supervisor, and all staff can report to him directly if they are treated 34 unfair The supervisor can warn the team leaders or find a solution for specific case If he t to ng cannot handle it, he can report to higher managers to find a solution hi ep Step - Building a reasonable work shift schedule w n The schedule is produced by the key supervisor himself, and it is cost a lot of time lo ad However, sometimes, it has some errors like as: not enough or so many workers in a shift, y th ju the worker not have enough time to rest before shift (at least 12 hours) Actually, with yi pl the lack of manpower in his section and the booking day-off by his staff, it is very difficult ua al for him to produce a schedule by himself to satisfy all the members Therefore, I suggest n va n he can use a software to help him producing schedule A professional software which can fu ll manage a shift schedule for 50-70 members will cost around 50 to 100 USD per month oi m at nh However, these software has a lot of functions, which can help him produce schedule more efficient, less error For example: Basecrop app – a Vietnamese app for set up schedule z z jm ht vb and manage team member – is charge about one million VND per month In addition, when new employees join the section, the key supervisor should ask their k gm schedule The key supervisor can ask each of them to see if they like to work on a specific l.c om day or shift Some people may like to night shifts or weekends He should allow them n a Lu to work according to flexible and appropriate timetable instead of fixing schedules rigidly n va Of course, he will be hardly follow every employee's requirements, but at least show that y te re you are willing to accept their opinions in this regard th Action plan Action plans for making recruitment process 35 Objective Actions Who is Target date t to ng responsible hi Building efficient Preparation of the job OPS supervisor Immediate ep program to hire new description and and specification details w staff HR starting Specialist n lo ad y th Providing detail job OPS supervisor On interview date ju description, and HR yi pl disadvantage as well as Specialist benefit for this ua al the n position n va fu Immediate ll Designing an effective HR specialist form and starting oi m application at nh preparing a short list z z Building an Selected the good supervisor starting Revised the list each k trainer team jm training new staff Immediate ht efficient program to experience staff for OPS key vb gm training time l.c OPS key Immediate program for trainer team supervisor and starting and apply other for next supervisors recruitment Do review and feedback OPS trainer Immediate on new staff and key starting and supervisor continuously om Plan a new training n a Lu n va y te re th maintain weekly in one month training 36 t to ng hi Do final evaluate and OPS key Immediate feedback on new staff supervisor and starting, and individual performance manager continuously ep in the end of training maintain w time Immediate workload is suitable leaders supervisor or starting, and y th n OPS key outside trainer continuously Be the Training the team sure lo ad fair to all ju and maintain yearly yi members of staff pl ua al Established a monitoring OPS supervisor Immediate mechanism to anti unfair starting n Summarize the OPS supervisor Immediate ll fu Building a n va treatment starting and employee for schedule continuously nh schedule oi m reasonable work shift requirement of all at maintain weekly z IT specialist Immediate z Find some suitable vb starting ht software to build k jm schedule for shift potential software l.c gm workers List 2-3 After IT list some find the most suitable software for OPS n supervisor and a Lu supervisor, key om Test trial 2-3 software to OPS va IT specialist n software Decide to members After trial time y All ACSI te re Do review, compare the th purchase the software or not Make an application for OPS key After decide to 37 t to ng hi ep purchase the software supervisor and and submitting to the manager, IT director specialist Purchase the software IT specialist buy the software After having the w and apply officially acceptance from n lo director ad ju y th Benefit: yi pl n ua al The benefits of implementing the above solutions: n va Firstly, it is expected to help decrease the turnover intention of the new employee, from ll fu recruitment step, training them carefully, try to assign them a schedule suitable for their m oi requirement, treat them fairly with other members on section nh at In addition, for the old staff, the new co-workers will not be nightmare like before If z z ht vb company can hire more employee and they can work longer in ACSI, the labor shortage k jm and work overload in ACSI will be improved The department will have more men to set gm up day-off for employee Their job stress and turnover intention will be decreased, while customer’s complains, raising the company image om l.c job satisfaction as well as their work performance will be increased, thereby reducing the n a Lu n va y te re th 38 References: t to ng Ongori H A review of the literature on employee turnover 2007 Nahar R, Islam R, Ullah KT Identifying the Factors for Reducing Employee hi ep Turnover Rate in Aviation Business: Bangladesh Context Australian Academy of w Business and Economics Review 2017;3(1):39-46 n Hinkin TR, Tracey JB The cost of turnover: Putting a price on the learning curve lo ad The Cornell Hotel and Restaurant Administration Quarterly 2000;41(3):144-21 y th Jagun V An Investigation into the High Turnover of Employees within the Irish ju yi Hospitality Sector, Identifying What Methods of Retention Should Be Adopted: Dublin, pl Emiroğlu BD, Akova O, Tanrıverdi H The relationship between turnover intention n ua al National College of Ireland; 2015 va n and demographic factors in hotel businesses: A study at five star hotels in Istanbul ll fu Procedia-Social and Behavioral Sciences 2015;207:385-97 m Ellingson JE, Tews MJ, Dachner AM Constituent attachment and voluntary oi 2016;101(1):129 at nh turnover in low-wage/low-skill service work Journal of Applied Psychology z Sheraz A, Wajid M, Sajid M, Qureshi WH, Rizwan M Antecedents of Job Stress z vb Journal of Learning and Development 2014;4(2):204-26 k jm ht and its impact on employee’s Job Satisfaction and Turnover Intentions International Canadian Union of Public Employees (2003) Enough Workplace Stress: om n a Lu Sohail, M and Rehman, C.A (2015) Stress and Health at the Workplace—A Review of the Literature Journal of Business Studies Quarterly, 6, 94-121 n Blaug, R., Kenyon, A., & Lekhi, R (2007) Stress at work: a report prepared for va 10 l.c Organizing for Change gm y te re The Work Foundation’s principal partners Project Report The Work Foundation, London th 11 Giauque, D., Anderfuhren-Biget, S., & Varone, F (2019) Stress and turnover intents in international organizations: social support and work–life balance as resources The International 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motivation and stress factors: What is the relationship between z job motivation and stress factors and how they contribute to overall job satisfaction? z jm ht vb (Unpublished master's thesis) Thesis / Dissertation ETD 18 Lavoie, A Here Are Problems That Occur With Poor Management Skills [Internet] k gm 2016 [cited 2019 Aug 11] Available from: https://www.entrepreneur.com/article/276919 om l.c 19 John, F Being a Fair Manager [Internet] [Updated 2018 Oct 17; cited 2019 Aug 11] Available from: https://www.thebalancecareers.com/fairness-is-good-management- n a Lu 2275883 n va 20 McGurgan H Negative Impacts of a Bad Manager [Internet] [cited 2019 Aug 11] te re Available from: https://smallbusiness.chron.com/negative-impacts-bad-manager- y 35304.html th 21 Etuk, G.R., & Alobo, E.T (2014) Determinants of job dissatisfaction among employees in formal organizations in Nigeria International Journal of Development and Sustainability Volume Number (2014): Pages 1113-1120 40 22 Johnson, R Key Reasons for Job Dissatisfaction and Poor Employee Performance t to [Internet] [Updated 2018 Nov 26; cited 2019 Aug 11] Available from: ng hi https://smallbusiness.chron.com/key-reasons-job-dissatisfaction-poor-employee- ep performance-25846.html 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 41

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