(Tiểu luận) the effect of coaching factors on the performance of sales employees in selling education courses in ho chi minh city

The research objectives of this study are to clarify the effect of frequency of coaching per month, employee’s experience year, feedback provision, and practical level of coaching conten

MINISTRY OF EDUCATION AND TRAINING Foreign Trade University HCM CAMPUS

MIDTERM ASSIGNMENT Topic: THE EFFECT OF COACHING FACTORS ON THE PERFORMANCE OF SALES EMPLOYEES IN SELLING EDUCATION COURSES IN HO CHI MINH CITY

Lecturer: Lê Hằ ng M H nhỹ ạ

Group 4

Trần Đức Nhân 2011115413 K59CLC6 Huỳnh Qu c Vi t ố ệ 2011115684 K59CLC6 Trát Th Mị ỹ Xuyên 2011115707 K59CLC6 Trương Bội Nhi 2011116515 K59CLC6 Cao Nguy n Minh Thu ễ ỳ 2011116581 K59CLC6

Lê H i Y n ả ế 2011116641 K59CLC6

Ho Chi Minh, 25 April, 2022

TABLE OF CONTENTS

TABLE OF CONTENTS 1

LIST OF FIGURE 2

LIST OF ABBREVIATION 3

ABSTRACT 4

Chapter 1 INTRODUCTION 4

Chapter 2 LITERATURE REVIEW 6

2.1 Definition 6

2.2 Effect of coaching on performance 7

Chapter 3 METHODOLOGY AND DATA 9

3.1 Methodology and data 9

3.1.1 Sample and data collection 9

3.2 Variables description 9

3.2.1 Dependent variable 9

3.2.2 Independent variables 9

3.3 Model specification 10

Chapter 4 RESULTS 13

4.1 Regression result 13

4.2 Interpret the coefficient of independent variables 13

4.3 Testing the goodness of fit of the sample regression 14

4.4 Testing the Overall Significance of the Sample Regression 14

4.5 Testing hypothesis about one of the regression coefficient 14

4.6 Multicollinearity 15

4.7 Heteroscedasticity 16

Chapter 5 CONCLUSION 18

REFERENCES 19

LIST OF FIGURE

Table 1 Summary statistics 12

Table 2 OLS regression output 13

Table 3 Variance inflation factor test 15

Table 4 Correlation 15

Table 5 White test 16

Table 6 Robust standard errors re-estimated 17

LIST OF ABBREVIATION

Abbreviation Meaning

LMX theory Leader-member exchange theory

ABSTRACT

Coaching has been defined as a critical managerial practice that firms must encourage in order to grow individuals and better off the performance Despite this consensus and growing interest in coaching, a scarcity of research on the influence of coaching on performance for individuals is still an unmet need In this paper, we look at the coaching factors that affect the performance of Sales in selling education courses in HCM City

Key words coaching, sales performance :

Chapter 1 INTRODUCTION

In recent years, the job of transforming countries' economic development has gradually progressed in a good direction, resulting in increasingly harsh market competition This transition is dubious, as investors must adjust their strategy swiftly to accommodate the changing climate Aside from internal strategy, businesses must focus

on the issue of employee workforce improvement

In this setting, the development and dissemination of managerial tools targeted at improving employee performance has become crucial (Pousa, 2012; Pousa and Mathieru, 2010)

One specific managerial approach, sales force coaching, has been lauded by practitioners and scholars as critical to developing subordinates and assisting them in reaching higher levels of performance (Corcoran et al., 1995; Deeter-Schmelz et al.,

2002, 2008; Ellinger and Bostrom, 1999; Pousa, 2012; Richardson, 2009) Coaching in organizations first appeared in peer-reviewed journals in the late 1930s (Grant, 2011) and has grown steadily since then However, the number of articles discussing various sorts of coaching in businesses has expanded considerably since the 2000s (Grant, 2011; Hagen, 2012; Pousa, 2012)

The research objectives of this study are to clarify the effect of frequency of coaching per month, employee’s experience year, feedback provision, and practical level of coaching content of coaching factors on the performance of Sales employees in selling education courses in Ho Chi Minh city The results will show the causes of coaching and understand which company used to solve this solution

The report begins with a focused literature review on organizational coaching The hypothesis and theoretical framework are presented next, followed by methodology and

analysis Finally, the conclusion section discusses the research's result and points out some limitations.

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Chapter 2 LITERATURE REVIEW

2.1 Definition

Coaching is an activity that is carried out by a leader to improve the performance

of subordinates (Mathis and Jackson) It has been defined as one-to-one process of assisting others in improving, growing, and reaching a higher level of performance by providing focused feedback, encouragement, and raising awareness (Hargrove,1995; Richardson,2009; Whitmore,1985) In addition, research by Evered and Selman in 1989; Ellinger and Bostrom in 1999; … have indicated coaching as a developmental process that enables and empowers people

Ellinger, Hagen have distinguished coaching from other types of helping behaviors such as mentoring and counselling Specifically, mentoring, according to their studies,

is a voluntary relationship led by a senior executive who provides advice, information, and emotional support to a younger employee, whereas counselling is more concerned with the employee's emotional state as it affects performance

Two key study streams evolved in business contexts One of these streams focuses

on executive coaching research An external consultant coaches a top-level executive (usually the CEO, but it could also be one of his or her direct reports) with the goal of helping this individual achieve mutually agreed-upon goals, improve his or her professional performance and personal satisfaction, and, as a result, improve the organization's effectiveness (Joo, 2005; Kilburg, 1996)

The alternative line of inquiry focuses on managerial coaching, often known as the manager-as-coach paradigm, employee coaching, or just coaching in this article In this situation, any firm manager can utilize coaching as a management tool to assist his or her subordinates in achieving a set of externally-defined organizational goals and improving job-related performance Although coaching and executive coaching have some similarities and have similar roots (Hagen, 2012), research has identified them as two distinct constructs (D'Abate et al., 2003; Hagen, 2012; Pousa, 2012), as well as being distinct from other directive managerial behaviors such as supervising, managing,

or providing feedback (Ellinger and Bostrom, 1999; Good, 1993; Ingram et al., 2005; McLean et al., 2005; Pousa, 2012; Rich, 1998; Richardson, 2009)

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The goal of this study is to look at how managers might use coaching to help their subordinates achieve improved performance through facilitation and discovery We describe coaching as a non-directive, goal-focused, and performance-driven activity led

by the manager, based on Ives (2008)

2.2.Effect of coaching on performance

On the relationship between coaching and job performance, Ellinger et al (2003) studied the impact of coaching behavior on job performance The results of the study by Ellinger et al (2003) showed that managers using coaching behaviors not only improve employees' job satisfaction but also improve their level of work commitment and ultimately improve performance in comparison with their local peers A long-term study

by Liu and Batt (2010) shows that the more effectively employees are trained, the more their job performance improves Pousa and Mathieu (2014) also conducted two international field studies, one using B-to-B salespeople working in Latin America and the other using B-to-C frontline workers at a service organization in Canada Their experimental results show that coaching can improve employee performance; coaching

is responsible for between 2.9% and 6.2% of variance in performance while controlling for tenure and sales experience In addition, Akhtar and Zia-ur-Rehman (2017) examined the effect of coaching behavior on the job performance of 283 employees from different banks in Rawalpindi and Islamabad The results of their regression analysis showed a positive relationship between training and job performance Prior research supports a positive relationship between coaching and job performance; therefore, this study developed the following hypothesis: Coaching has a positive effect

on job performance

The rationale for this hypothesis is that in a coaching context, people will feel more valued and respected by their employer, so they will tend to be more loyal and work harder Furthermore, those who are more developed will have higher work-related competencies, better operations, and higher customer satisfaction (Ellinger et al., 2005) Two recent qualitative studies provide initial support for these claims; both salespeople and sales managers agree that coaching skills impact a salesperson's development, which ultimately increases a salesperson's job performance and develops customer relationships (Deeter-Schmelz et al., 2002, 2008) According to Onyemah (2009), coaching has been considered by sales professionals as an important way that sales

managers can motivate their employees and enhance their performance (e.g., Rich, 1998 ) Bowles et al (2007) also confirmed the impact of training on middle managers and the performance of their subordinates in a recruiting organization

However, very few studies have investigated the relationship between training and performance of the trainees More specifically, empirical researches rarely specifically examine the impact of coaching factors on the performance of a company's employees

as an important force for the development and achievement of the company Therefore, this study is expected to investigate the relationship between the coaching factors and performance of employees The coaching actions are adopted as part of the company's management practices, demonstrating an interest in the employees and a desire to help them grow

Chapter 3 METHODOLOGY AND DATA

3.1 Methodology and data

3.1.1.Sample and data collection

To conduct the research, a survey was carried out with the main target group who are sales employees in selling education courses in Ho Chi Minh City All samples were collected through the online questionnaire website named Google Form to collect opinions of the target group on the research topic The number of samples collected was

218 samples According to Tabachnick & Fidell (2007), the minimum sample size for multiple regression model is calculated as follow:

in Ho Chi Minh City

3.2.2.Independent variables

Frequency of coaching per month

Frequency of coaching can be defined as the number of coaching sessions an employee would participate in in a certain period of time The frequency of coaching will vary depending on the employees and their needs

Selling experience

It was proposed in the literature that some demographic variables, like selling experience or tenure in a given position can affect the individual motivation to perform

through their effect on expectancy and valances and thus, affect performance (Cron et al., 1988) Similar concerns were expressed in a coaching context in the sense that age

or organizational tenure might moderate the effect of coaching on behavioral variables (Onyemah, 2009; Trépanier, 2010)

Coaching content

Content plays an indispensable part during coaching sessions Coaching content that is in line with the organization's goals will provide employees with professional knowledge and skills to help them work better If the coaching content is suitable with the coaching needs and coaching methods, the coaching effect will be significant to help the employee's work efficiency better, an important factor to increase productivity Using the OLS model, Nguyen Minh Ha and Le Van Tung (2014) discovered that coaching content has a positive impact on employee performance in the textile industry Feedback provision

Feedback is a formative process in which information is provided and explored in order to improve learning and performance Feedback provision is implemented to reinforce great performance and change those that need to be improved in order to deliver the most benefits to the firm

The research carried out by Catherine Wambui Muriithi (2016) also proved that the frequency of giving feedback had a substantial impact on employee's performance

in the bank

3.3.Model specification

The regression analysis was conducted in order to determine the relationship between dependent and independent variables The research used simple linear regression analysis with the help of STATA 16 for Windows software

The regression method used to estimate the model's parameters is the method of ordinary least squares (OLS) The reason is that under some assumptions of the linear regression model (linearity in parameters, random sampling of observations, conditional mean equal to zero, absence of multicollinearity, homoscedasticity of errors), the parameters estimated by applying OLS method are linear and unbiased, also known as the Best Linear Unbiased Estimators (BLUE) of the real values of parameters

An analytical model of a linear multiple regression equation of the form shown below was developed to illustrate the above-mentioned factors’ effect on the performance of sales employee:

𝑙𝑛(𝑎𝑣𝑟𝑠𝑎𝑙𝑒𝑠) = 𝛽0+ 𝛽1𝑒𝑥𝑝𝑒𝑟 + 𝛽2𝑐𝑜𝑠𝑒𝑠𝑠 + 𝛽3𝑐𝑜𝑐𝑜𝑛𝑡 + 𝛽4𝑓𝑒𝑝𝑟𝑜 + 𝜀

Description of variables:

avrsales: average sales per month of sales employee

exper: year of experience of the employee

cosess: the number of coaching sessions per month the employee participates in cocont: the percentage of coaching content applied in employee's daily task fepro: the percentage of feedback provision that can improve employee's performance

𝜀: the error term denotes omitted variables that collectively affect the average sales per month of sales employees

We predict that the coefficient of coaching sessions is negative This is because the better employees' performance is, the fewer coaching sessions per month they tend

to participate in

We believe that the coefficient of coaching content will be positive Due to the previous research, they discovered that coaching content has a positive impact on employee performance Thus, as the percentage of coaching content applied in employees' daily tasks increases, their performance will increase

We also expect that the coefficient of the number of years of employee’s experience will be positive This result is based on other research, we easily find that the number of years of employee’s experience has a positive effect on employees' performance

The coefficient of fepro is predicted to be positive The frequency of giving feedback had a substantial impact on employee's performance When the percentage of feedback provision that can improve employee's performance increases, the average sales per month will increase

Variable

type

Acronym Name Representative quotient Relationship

with expected