t to ng hi ep UNIVERSITY OF ECONOMICS HO CHI MINH CITY International School of Business w n lo - ad ju y th NGUYEN THI NHAT SINH yi pl LOW JOB SATISFACTION n ua al va n IN DUPONT VIETNAM ll fu m oi ID: 22130061 at nh z MASTER OF BUSINESS ADMINISTATRION z om l.c gm Ho Chi Minh City – Mar 01, 2016 k PHAM PHU QUOC jm ht vb SUPERVISOR: an Lu n va ey t re ACKNOWLEDGEMENT t to ng I would like to express my great gratitude to my supervisor, Dr Pham Phu Quoc for hi ep his kindness, his professional guidance and encourage as well as his valuable comments and w helpful advice through my thesis n lo ad I am sincerely thankful to Mr Vinh Nguyen, Mr Minh Bui, Mr Cole Truong, Ms y th Tien Nguyen, Ms Diep Nguyen and all MDOs and ISPs in Mekong Delta to give valuable ju yi information during in-depth interview and the data collection in the company pl al n ua My special gratitude is extended to all instructors and staffs of International School n va of Business - University of Economics Ho Chi Minh City that give me the guidance of ll fu research for the thesis course so that I can have a chance to apply theories to practice oi m business at nh z z k jm ht vb om l.c gm an Lu n va ey t re TABLE OF CONTENTS t to Executive Summary ng Chapter 1: Company’s Industry Crop Protection Industry Overview hi 1.1 General Overview ep 1.1.1 Vietnam’s overview 1.1.2 w Challenge and Difficulty of Agriculture in Vietnam n 1.1.3 lo Chapter 2: Problem Identification 10 ad Company Introduction 10 2.2 Company Background: 10 2.3 Problem Context 11 2.4 General Symptom 13 2.5 Tentative Problems 18 2.6 The Real Problem: Poor Supervision Skills 24 2.7 Verifying the importance of the real problem 26 2.8 Potential Causes 28 2.9 Cause and Effect Map 28 ju y th 2.1 yi pl n ua al n va ll fu m oi Chapter 3: Alternatives Analysis and Possible Solutions 29 nh Verify root cause of the real problem 29 3.2 Possible Solutions: 30 at 3.1 z z Chapter 4: Selected Solution 34 vb Selected Solution 34 4.2 Implementation plan 36 jm ht 4.1 k Chapter 5: Supporting Information 38 gm 5.1 In-depth interview 38 l.c Transcript 38 Literature informed to confirm the potential caused of the real problem 50 5.3 Mini survey to indentify the root cause of the real problem 53 om 5.2 an Lu Reference 54 n va Appendix 62 ey t re LIST OF FIGURES t to Figure 1: The global population from 1960-2020 ng Figure 2: Global Crop protection sales from 2009-2016 hi ep Figure 3: Export value of agricultural, forestry and fishery products (2001-2012) Figure 4: Result of perceived supervisor support w Figure 5: Results of identifying root causes in DuPont Vietnam n lo LIST OF TABLES ad Table 1: General information of Vietnam y th Table 2: The overall Turnover Rate in year 2013 and 2014 ju yi Table 3: Turnover-cost categories pl Table 4: The Sales results in year 2013 and 2014 al Table 5: Sales results of crop protection in Vietnam ua n Table 6: Annual base salary in 2013, 2014 n va Table 7: Sales Incentive Program fu Table 8: Literature informed review –Factors influence job satisfaction ll Table 9: Results of identifying root causes in DuPont Vietnam oi m at nh z z k jm ht vb om l.c gm an Lu n va ey t re Executive Summary t to This Project examines why the sales of DuPont Vietnam has dropped over the last two ng hi years 2013 and 2014 since its peak in 2012 and the high turnover rate was significantly ep increased up to 25 % in 2014 The Project draws attention to the fact of peak sales in 2012; w n the market share is 3% Over the next two years, DuPont Vietnam reduced its market share lo ad to 2.4% and 2.1 % year after year The volume of sales in the whole market was increased y th ju 47 million USD and 20 million USD in 2013 and 2014 with low growth rate However, yi pl DuPont had negative results with minus 7% and minus 10% reduced year after year ua al Low job satisfaction is the real problem since there is consistency research between n va n literatures informed review, secondary data including in depth interview, mini-survey, fu ll financial and HR reports to confirm this real problem Further investigation, the root cause oi m at nh of low job satisfaction is poor supervision skills considered and proposed the alternative solutions z z ht vb There are three alternative solution proposed k jm Management training programs: Coaching Skills, Project management, l.c gm Motivation Skills Additional Reward and Recognition program: Best group in the year, Peer om Team building for separated groups an Lu Recognition n va ey t re The best solution to enhance poor supervision skills is management-training programs selected and implemented with proper plan Chapter 1: Company’s Industry t to ng 1.1 Crop Protection Industry Overview hi ep 1.1.1 General Overview w Crop protection industry is a rapidly growing in global in general views and Vietnam n lo in private views Crop production products help and succeed the farmer’s means growing a ad ju y th healthy and profitable crop All good companies in this industry operate with mission of yi feeding the world sustainably to deliver the best agriculture products to create higher crop pl n supply ua al yields and nutritious foods with high quantity, quality and sustainability of the world’s food va n Population growth and greater economic prosperity is emerging market will drive ll fu oi m future demand for food and feed production The population is expected to rise from around at nh seven billion to more than nine billion in 2050.Most of this population growth will occur in z developing countries The CAGR is 1% percent year on year growth of population z k jm ht vb om l.c gm an Lu n va ey t re Figure 1: The global population from 1960-2020 t to ng hi ep w n lo ad ju y th yi pl n ua al va n In parallel, a greater number of people will experience increased wealth and higher ll fu oi m purchasing power, and as a result will increase consumption of processed food, meat, dairy at nh and fish Agriculture must meet this demand to provide enough food and feed production to z our current demand of world z vb Crop protection products protect plan from damaging influences such as weeds, jm ht diseases and insects There are three portfolios of products as below k gm (1) Fungicides: Products for preventive and curative control of crop diseases; om an Lu (3) Herbicides: Products for Weed control l.c (2) Insecticides: Products for the control of crop diseases n ey t re this business with trend increasing especially in Asia-Pacific country va The below is global sale crop protection and outlook 2016 showing that the sales of Figure 2: Global Crop protection sales from 2009-2016 t to ng hi ep w n lo ad ju y th yi pl ua al n Source: Amis Global Crop protection &Seed Database va n Notably, the demand of crop protection product is increasing from year by year ll fu oi m especially for developing country where the demand of food is high at nh 1.1.2 Vietnam’s overview z Over the past years, Vietnam’s agriculture production has made significant z vb achievements, contributing to the national food security, economic development, trade jm ht balance, reducing inflation, defending the territory as well as stabilizing socio-political k gm situation in Vietnam Although Vietnam has undergone obvious changes in economic and l.c om labor structure, so far, more than 70% of Vietnamese population lives in the rural areas an Lu Therefore, agriculture production is their main livelihoods n va t re ey Table 1: General information of Vietnam t to ng hi ep w n lo ad ju y th yi pl For instance, Vietnam enjoys a good location to invest the crop protection with as al n ua huge agriculture arable land and highest land productivity compared to Cambodia, Laos n va Thailand, respectively Many famous companies such as Sygenta, Bayer, Dow, DuPont and ll fu others enjoy investing their science products on agriculture products’ treatment on crop m oi Agricultural exports have increased continuously Vietnam is now one of top world nh at exporters in agriculture products such as rice, rubber, coffee, pepper etc Vietnam poverty z z reduction rate has improved for a long period, with a very impressive rate of 2% per year ht vb k jm Vietnam is currently the second biggest rice exporters in the world after Thailand Vietnam gm is global agricultural and important foundation for social stability, political security, as well om l.c as for environmental protection The contribution of agricultural products accounts to the total exports of Vietnam is an Lu remarkable from 49% in 2011 to 57.7% in 2012 The export value of the agricultural sector n va has significantly increased since 2000 (except 2009) ey t re Figure 3: Export value of agricultural, forestry and fishery products (2001-2012) t to ng hi ep w n lo ad ju y th yi pl ua al n 1.1.3 Challenge and Difficulty of Agriculture in Vietnam va n Presently, Vietnam is facing with three main issues: ll fu outdated, low productivity and quality of the products; low competitiveness (ii) high cost, low price, low profit (iii) Weakness of processing industry; infrastructure serving the agricultural oi m (i) at nh z z vb industry is underdeveloped jm ht Despite several inefficiencies and weaknesses, Vietnam’s agriculture is now a major k gm driver in the development contributed to GDP sector up to 20% Agriculture plays an l.c om important role in trade balance of Vietnam Currently, economic development depends an Lu much on agriculture It is known that agriculture remains the great advantage of Vietnam, ey its chance, have flexible, creative methods in the near future to develop endlessly t re there are many difficulties ahead, with the non-stop efforts, Vietnam agriculture will catch n integration, Vietnam increasingly defines its strategic role in world agriculture Although, va given internally in the agreement of Trans-Pacific Partnership (TPP) In the context of such as paid holidays or family insurance are important factors to employee satisfaction t to Second, Workforce engagement: Employees not feel their work interesting or ng hi contributing to the mission of the company will be engaged They must feel like involve to ep the goal achievement Third, Develop Skills: Training opportunities, mentoring, internal or w n external training encourage workforce to improve their skills Last, Recognition and lo ad Reward: Personal recognition is a powerful tool in building morale and motivation A y th ju regarding or personal note from a peer or supervision does wonders Small, informal yi pl celebrations are many times more effective than formal event ua al Interviewer: In your opinition, what would you want to to increase the Sales n n va performance in 2015 onwards? fu ll Mr.Vinh: This question is always our concern since we have not achieved the target three oi m at nh years recently For me, first, we need to solve the problem from personnel that is Job satisfaction of workforce: the compensation and benefit, internal communication between z z ht vb the team with the team and the team with their supervisors Likewise, we need to enhance k jm good communication with our customers to maintain the good relationship with old l.c gm customers and create the new relationship with new customers Second, Sales team focus more on the training program to enhance sales teams skills and knowledge, create the sale’s om an Lu competency to other competitors in creates sales and maintain sales Final, Marketing team focus more on the MC program, farmer meeting, MDOs training to create demand of the n va customers as well as brand awareness is the top of marketing tasks to influence the decision ey t re of the customers 48 Mr Minh: Likewise, training program is always necessary thing to to enhance t to workforce skills and knowledge to create sales, maintain the good relationship with the ng hi customers, sustainable growth In addition, Group Communication workshop or course ep a year to enhance the good communication in the team, encourage the workforce, inspire w n them in their current working with high motivation, create more close communication lo ad between employees and supervision To proper action to our customers, company y th ju implement to direct serve to retailers with high incentive program, gift instead of serving yi pl too much to dealers to close the gap of market coverage To make the fairness, Company ua al keeps the profit for dealers from 3-4% and retailers from 5-10% with stability strategy n va n Ms Tien: First, enforce sales team to work with high efforts beside to provide the good fu ll benefit to make them satisfied as above that I have mentioned Second, ISPs and MDOs oi m at nh should go direct to farmer to create demand of company’s product s such as consultant, giving alert, follow up quality as well as respect and resolve the problems Final, Marketing z z ht vb creates the MC program to meet the demand of our customers, make them satisfied with our k jm company, workforce and products l.c gm Mr Cole: In term of marketing view, I think I will create more MC program to create demand in the market In addition, training program to MDOs would regularly to om an Lu enhance marketing skills and communication skills Beside, Sales team does their efforts to create sales with sales competency and motivation Finally, ISPs’ scheme should change the n va range of target to encourage sales team and marketing team to work hard with all the best 49 ey t re and not lost their motivation of nothing gain from season ended Ms.Diep: For me, I think, First, Marketing program should regularly such as advertising t to on TV to create demand Second, Sales team with well equipped of their skills to create ng hi sales on the market Final, company tries to fulfill the gap between company and workforce ep to enhance job satisfaction, which could potential increase sales performance w n Thank you for your sharing, wish you good health and success in your career lo ad ju y th 5.2 Literature informed to confirm the potential caused of the real problem yi Table 8: Literature informed review –Factors influences job satisfaction pl Site Factors n ua Lambert, E.G., Hogan, USA Wage, hours, promotion, reward, task performance n va Author al No N.L., & Barton, S.M., ll fu India Work itself, Pay at nh Tami,N.,(2013) oi m (2001) Opportunities: structure, Advancement Supervision, Co-Workers, z z Environment, Compensation & Benefits, Training, vb Spector,P.E (1997) USA communication,coworkers,fringebenefits, job condit k jm ht Climate, City & Neighbors: Ethics and Principle gm organization organizations' and promotion recognition, Turkey supervision/superior behavior , co-workers' 50 ey job security t re behavior, job itself, working facilities, current pay, n Bas., T&Ardic., K(2002) opportunities, va pay, an Lu growth, procedures, om personal policies itself, l.c ions,nature of work, Lawrence,G.,2005 USA type of work, job security, coworkers, company, t to advancement, pay, supervision, hours, benefits and ng hi working condition ep Smith,P.K., Kendall, C USA pay, n promotion opportunities, women over the age of 35 Sloane, P J & Ward, M Nigeria lo and coworkers, supervision w K., &Hulin, C.L., 1969 promotion ad E (2001) y th Yang, J.T (2010) Clark, A., Oswald, A., & UK conflict, burnout, socialization, and work autonomy yi employees' ages pl n ua al Warr, P (1996) Organ, D W., & Lingl, Turkey organizational citizenship behavior and personality n va 10 Taiwan ju A (1995) measures and India Organizationdevelopment factors, Job security facto oi m Agarwal.,R.N ll fu 11 rs, Work task factors, Policies of compensation and at nh Dewan, P.,(2016) benefit factor and opportunities of promotion and z z development ht vb Bakotic,D.(Sep 2014) UK level of education 13 Ladebo, O J (2005) Nigeria salary and wages, staff, promotion opportunities and k jm 12 Donovan, M A., USA interpersonal behavior, working L J (1998) material rewards and promotions, USA 16 John G & B A Weitz USA Japan age, education, financial status, years of service Pay 51 ey Dhladhla, T.J.(2011) t re 15 colleagues, leadership style, n relationships with va Drasgow, F., & Munson, conditions, an Lu 14 om l.c gm the nature of the work 1989 t to 17 Fu,W., ng S China Pay, coworker, supervision, and work itself P(2014) hi ep 18 Deshpande, Warr, P (1996) UK pay, colleagues, supervisors, working w conditions, job security, promotion n lo prospect, nature of the work L., Kervin, USA Pay ju y th Lum, ad 19 J.,Clark.,K.,Reid,F&Sirol yi al Saif, S K., Nawaz, A., Pakistan pay, work, supervision, promotion, co-workers and n ua 20 pl a, W.,(1998) Ellickson, Supervisors ll 22 India fu Bassett, G (1994) n 21 environment va Jan, F A (2012) C & Canada promotional opportunities oi m M at nh Longsdon, z USA 24 Siddiqui, A & Saba, I Pakistan pay, promotion, work, supervision, fellow workers job security jm ht vb Luthans, F (2005) z 23 Uganda incentives, pay packages, leadership styles and finally the condition Wubuli, 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