(Luận văn) low job satisfaction in viet nam star automobile

t to ng hi UNIVERSITY OF ECONOMICS HO CHI MINH CITY ep International School of Business w n - lo ad ju y th NGUYEN THI THANH TAM yi pl n ua al LOW JOB SATISFACTION IN VIETNAM STAR AUTOMOBILE n va ll fu oi m at nh ID: 22130064 z z k jm ht vb MASTER OF BUSINESS ADMINISTATRION om l.c Dr LE NHAT HANH gm SUPERVISOR: an Lu n va ey t re Ho Chi Minh City – Dec, 2016 th t to TABLE OF CONTENT ng hi ACKNOWLEDGEMENT ep EXECUTIVE SUMMARY CHAPTER 1: COMPANY INTRODUCTION w General Information about Vietnam Star Automobile n 1.1 Company background 1.3 Organization chart lo 1.2 ad y th CHAPTER 2: PROBLEM IDENTIFICATION ju Problem context 2.2 General symptoms yi 2.1 pl The first symptom: High employee turnover 2.2.2 The second symptom: Increasing customers complaints 2.2.3 The third symptom: Decreasing in sales performance 12 n ua al 2.2.1 n va 2.3 Identifying and Diagnosing Tentative Problems 13 fu The first tentative problem: low satisfaction in internal communication 14 2.3.2 The second tentative problem: low satisfaction in pay and compensation 16 2.3.3 The third tentative problem: low satisfaction in management skills 19 ll 2.3.1 oi m nh The real problem: low job satisfaction 23 2.5 Verifying the importance of job satisfaction 30 2.6 Verifying the existence of real problem: Low job satisfaction in Vietnam Star Automobile 32 at 2.4 z z jm ht vb k 2.7 Causes and Effects chart of real problem: Low job satisfaction in Vietnam Star Automobile 33 gm CHAPTER 3: ALTERNATIVES ANALYSIS AND POSSIBLE SOLUTIONS 35 l.c Verify causes of the real problem 35 3.2 Root cause: poor pay and compensation 38 om 3.1 an Lu 3.3 Possible solutions 42 Solution 1: Providing non-monetary compensation-learning and training programs 42 3.3.2 Solution 2: Developing a proper annual performance and salary review plan 46 3.3.3 Solution 3: Creating an effective incentive compensation plan 50 4.2 Literature review factors of real problem 59 4.3 Job satisfaction survey 60 th Interview transcription 54 ey 4.1 t re CHAPTER 4: SUPPORTING INFORMATION 54 n va 3.3.1 t to ng hi 4.4 Survey on factors of job satisfaction 60 4.5 Satisfaction survey on facets of job satisfaction 61 4.6 The understanding of staff about KPIs in Performance Appraisal form 64 ep REFERENCES 65 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 an Lu n va ey t re th t to LIST OF TABLES ng hi Table 1: M-Rate from Jan to Dec 2015 ep Table 2: Number of customer complains about delayed delivery and long waiting time for service done w n Table 3: Average score of customer satisfaction about VSAL service lo ad ju y th Table 4: Sales achievement from 2013 to 2015 yi Table 5: Management skills assessment survey pl n ua al Table 6: Survey on factors of job satisfaction in Vietnam Star Automobile Table 7: Pay and compensation satisfaction survey result n va ll fu Table 8: Plan to build a good training program for staffs oi m Table 9: Plan for employee performance review nh at Table 10: Step to build up an effective incentive compensation plan z z k jm ht vb Table 11: Factors of building up an effective incentive compensation plan om l.c gm an Lu n va ey t re th t to ACKNOWLEDGEMENT ng hi ep I am grateful to my supervisor, Dr Le NhatHanh, whose expertise, understanding, generous guidance and w support made it possible for me to work on a topic that was of great interest to me It was my pleasure n lo ad working with her y th I am hugely indebted to Managers of Vietnam Star Automobile, Mr Tu, Mr Do, Ms Thu, Ms Trang and ju yi Ms Tho, for finding out time to response to my questions for being ever so kind to show interest in my pl n ua al research and for giving their precious and kind advice regarding to my topic I would like to express my gratitude to co-workers at Vietnam Star Automobile for being so generous to va n reply to my questionnaires Words can never be enough to thank your all kindness ll fu oi m at nh z z k jm ht vb om l.c gm an Lu n va ey t re th t to ng EXECUTIVE SUMMARY hi This project is conducted at Vietnam Star Automobile Limited Company The purpose of this project is ep figuring out the reasons for increasing employee turnover from 12.3% at the end of 2014 to over 25% in w December of 2015, the increasing in customers complains according to the report from Customer n lo ad management department and falling business result in 2015 comparison to the one of year 2014 y th Low job satisfaction among staffs is the real problem because there is a consistency between literatures ju yi informed reviews and the collected data from Vietnam Star Automobile during deep interviews with pl ua al managers, mini-survey on staffs and reports from customer relationship management department, human n resource department and financial department In a further investigation, the root causes of low va n satisfaction are figured out and corresponding solutions are given to improve the situation ll fu oi m There are three alternative solutions proposed as following: Providing learning and training opportunities to employees  Develop employee performance review plan and salary increase  Build up an effective incentive compensation plan at nh  z z k jm ht vb om l.c gm an Lu n va ey t re th t to ng CHAPTER 1: COMPANY INTRODUCTION hi General Information about Vietnam Star Automobile ep 1.1 Vietnam Star Automobile is a 100% foreign invested authorized retailer of Mercedes-Benz products It w n was established in 2005 by the Hong Kong based Lei Shing Hong Group, a strategic partner of Mercedes- lo ad Benz in Asia with over 200 Mercedes-Benz outlets including two in Vietnam It is proud to have a ju y th professional workforce with international standards and continuously wins the best service prize during yi five years from 2009 to 2014 as well as the highest Customer Service Indicator prize during six years pl from 2008 to 2013 ua al n According to the Board of Director meeting at the end of year 2014, its mission for the period from 2015 va n to 2020 is “being the Number in Quality, Image and Profitability in the Automobile Sector in Vietnam” fu ll This mission creates some challenges for the company including: continually improve the quality m oi services, delighting customers and stakeholders in everything which the company is doing, building and at nh remaining a healthy financial situation z Company background z 1.2 vb Short name: VSAL or VSA k jm ht Name of the company: VIETNAM STAR AUTOMOBILE LIMITED., CO l.c gm Head office: No 811-813 Nguyen Van Linh, Tan Phong Ward, District 7, Ho Chi Minh city, Vietnam an Lu Tel: +84 (0) 854 112 280 om Tax code: 3 3 0 n va ey t re Fax: +84 (0) 854 112 290 th Website: http://www.vietnamstar-auto.com Sector: retailer of Mercedes-Benz products in Vietnam t to Branches: Phu My Hung and Truong ChinhAutohauses in Ho Chi Minh City; Ha NoiAutohaus and Ha ng Noi showroom in Ha Noi city; NhaTrangAutohaus in NhaTrang city, Body and Paint center in Ho Chi hi ep Minh City w Number of employees from 2010 to 2015 of branches is presented as below n lo Y 2010 Y 2011 Y 2012 Y 2013 Y 2014 Y 2015 ad Branch name 97 92 106 111 124 89 92 91 89 95 97 46 39 42 41 50 56 26 28 29 31 29 35 NhaTrang branch 0 15 18 22 Body and Paint branch fu 0 33 38 ju 85 va y th Phu My Hung branch yi Truong Chinh branch pl n ua Ha Noi branch al Ha Noi branch n ll m oi (Source: Human resource report in Dec 2015) nh at Business activity of Vietnam Star Automobile combines trading Mercedes-Benz cars, accessories, z z providing after sales service and brokageIt is summarized by the following chart jm ht vb Trading MBV Cars k om an Lu n va Insurance brokerage l.c Trading MBV’s accessories gm Business activities Trading MBV Trucks (FUSO) ey t re th t to 1.3 Organization chart ng hi ep General Director w n lo Secretary to GD ju Sales Manger New cars After-sales service Manager yi Technicians, Body repair, car washers, WS admin, parts controllers ua Project Manager Admin Manager HR Manager IT Manager C&B Manager Marketing Manager Tax Manager Salesmen n Salesmen Sales supervisor al Sales support Manager pl CRM staff Sales Manager Old cars General Manager, Group HR Chief Financial Officer Dealer Principle y th Group CRM & DS Manager ad General Manager, Dealer operation va n Chief Accountant ll fu oi m at nh z z k jm ht vb om l.c gm an Lu n va ey t re th t to CHAPTER 2: PROBLEM IDENTIFICATION ng hi 2.1 Problem context ep During the December 2015 meeting between CEO, CFO and all heads of department was hold in w headquarter, there were some issues about human resources and management which were raised Firstly, n lo the human resources manager reported that there was a risk about the employee engagement To be ad y th specific, the number of resigned staffs was increasing dramactically for the first six months of 2015 in ju comparision to the number at the same period in 2014 This situation put a significant pressure on the new yi pl recruitment demand including cost of replacement and cost of training The head of human resource al n ua department also presented his opinion about the status of poor coordination among staffs and through n va departments He strongly believed that it was a reason for the high employee turnover score ll fu Secondly, the manager of client relationship management department expressed her worry about the oi m staffs’ productivity and performance She said that they recoginized the working efficiency of people was nh falling Staffs were usally late in reporting and delayed in giving information or feedback to managers in at z neccessary cases In addition, the complaints which received from client increase definitely They suggest z k jm fully transferred to the engineer and workers ht vb that company should have a proper internal information system to make sure that customers’ requests are l.c gm Thirdly, the sales head recommended that the company must decrease the number of meetings which are hold during a week and increase the incentive for salesmen The salesmen complained to him that they om meed more time to go out for visiting and looking for new customers Due to so many meetings they have an Lu to take part and due to the long time of each meeting, their time for other tasks are decreased n va unintentionally He salesmen also expect for a higher commission from car selling activity They said that seeing customer at the first time till the day cars were delivered They think that they are served enough to ey t re it was not easy for them to catch a new customer They had to spend several months or even a year from th get a higher commission amount for each car sold The engineers and workers in workshop also ask for a higher incentive for their services done and delivered to clients t to ng 4.5 Satisfaction survey on facets of job satisfaction hi ep PLEASE CIRCLE THE ONE NUMBER FOR w n Disagree very much Disagree Neutral Agree Agree very much 5 5 5 5 ad fu lo EACH QUESTION THAT NO COMES CLOSEST TO y th ju REFLECTING YOUR yi OPINION ABOUT IT pl al I feel I am being paid a fair amount for the work I The benefit package we have is equitable I feel satisfied with my chances for salary increases n ua n va 3 om 5 5 l.c an Lu n va ey t re th Communications seem good within this organization gm 13 k I enjoy my coworkers jm 12 ht I like the people I work with vb 11 z 10 z at nh oi m There are benefits we not have which we should have There is really too little chance for promotion on my job I am not satisfied with the benefits I receive I feel unappreciated by the organization when I think about what they pay me Raises are too few and far between I don't feel my efforts are rewarded the way they should be There are few rewards for those who work here ll 61 t to My supervisor is unfair to me My supervisor is quite competent in doing his/her job 14 ng hi ep 15 16 I like my supervisor 5 5 5 w n The goals of this organization are not clear to me My supervisor shows too little interest in the feelings of subordinates lo 17 ad ju y th 18 yi I have too much paperwork 20 Many of our rules and procedures make doing a good job difficult pl 19 n ua al The performance appraisal form n va 4.6 ll fu oi m at nh z z k jm ht vb om l.c gm an Lu n va ey t re th 62 LEI SHING HONG GROUP PERFORMANCE APPRAISAL FORM ( Applicable to Employees at Executive Grade & Above) Appraisee: Review Period: Job Title: Location: Grade / Level: Div/Dept: Date Joined: Section/Unit: Year in Current Position: Appraiser: t to REVIEW OF PERFORMANCE ng Exceeded Target Key Goals / Result Areas* Partially Met Target Met Target Comments, if any hi Planning ep Sales & Marketing Human Resources Business Management and Controlling w n Operative Management lo Quality Management ad Information Management Other comments on the above assessment, if any (such as special circumstances that helped or hindered achievement, achievement not originally planned & etc.) ju y th yi REVIEW OF COMPETENCY** N/A: Not Applicable 1: Unable to meet requirements 2: Needs Improvement 3: Fully Competent pl Assessment Competency N/A 4: Exceptional Comments, if any Organizing & Judgement al Organizing & Planning Initiative & Judgement ua Know ledge / Skill Business Intelligence n Problem Solving va n Problem Solving & Knowledge fu Leadership & Management Customer Management oi Team / Project Management m Leadership in Role ll Influence & Communication Oral / Written Communication * Please refer to Attachment for guidelines for setting goals ** Please refer to Attachment for detailed descriptions of competencies z Influence / Assertiveness at nh z Good Excellent Very good Success Measures gm GOALS FOR THE COMING YEAR Goals* k jm ht Acceptable vb REVIEW OF OVERALL PERFORMANCE Unacceptable Dates l.c om an Lu ANY OTHER COMMENTS (expand on any factors not covered) DEVELOPMENT ACTION PLANS (specification with time frames, considering job/career aspiration where appropriate) Is further review needed earlier than the normal review date? 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