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 Hằng Mỹ Hạnh Group Name Trần Đức Nhân Huỳnh Quốc Việt Trát Thị Mỹ Xuyên Trương Bội Nhi Cao Nguyễn Minh Thuỳ Lê Hải Yến Student ID 2011115413 2011115684 2011115707 2011116515 2011116581 2011116641 Ho Chi Minh, 25 April, 2022 Class K59CLC6 K59CLC6 K59CLC6 K59CLC6 K59CLC6 K59CLC6 TABLE OF CONTENTS TABLE OF CONTENTS LIST OF FIGURE LIST OF ABBREVIATION ABSTRACT Chapter INTRODUCTION Chapter LITERATURE REVIEW 2.1 Definition 2.2 Effect of coaching on performance Chapter METHODOLOGY AND DATA 3.1 Methodology and data 3.1.1 Sample and data collection 3.2 Variables description 3.2.1 Dependent variable 3.2.2 Independent variables 3.3 Model specification 10 Chapter 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 CONCLUSION 18 REFERENCES 19 LIST OF FIGURE Table Summary statistics 12 Table OLS regression output 13 Table Variance inflation factor test 15 Table Correlation 15 Table White test 16 Table Robust standard errors re-estimated 17 LIST OF ABBREVIATION Abbreviation Meaning VND Vietnamese Dong LMX theory Leader-member exchange theory OLS Ordinary Least Squares BLUE Best Linear Unbiased Estimators VIF Variance Inflation Factor 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 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 Document continues below Discover more from:tế lượng kinh kte309 Trường Đại học… 816 documents Go to course 17 18 30 25 Tổng hợp đề CK KTL đáp án - đề thi tổng… kinh tế lượng 100% (8) ĐỀ Kinh Te Luong TEST1 kinh tế lượng 100% (6) Ý NGHĨA BẢNG HỒI QUY MÔ HÌNH BẰN… kinh tế lượng 100% (5) Tiểu luận Kinh tế lượng - nhóm 11-đã… kinh tế lượng 100% (5) Tiểu-luận -Đạođức-kinh-doanh-… kinh tế lượng 100% (4) ĐỀ ÔN THI KINH TẾ Chapter LITERATURE REVIEW 2.1 Definition 42 LƯỢNG CUỐI KÌ kinh tế 100% (4) Coaching is an activity that is carried out by a leader to improve lượng 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) 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 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: N = 8*var + 50 In which: N: sample size Var: dependent variables which are inserted into regression model Our research focuses on main factors affecting the performance of sales employees Applying the same formula to this research, we have: N = 8*4+ 50= 82 (samples) Based on the above formula, the minimum number of samples required is 82 In fact, we have collected 218 samples, which makes the reliability of the research higher 3.2 Variables description 3.2.1.Dependent variable The dependent variable chosen to conduct research on Performance of Sales Employees in selling education courses in Ho Chi Minh City is represented by employee’s average sales per month (million VND) collected from 218 Sales employees 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 10 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 + 𝛽1 𝑒𝑥𝑝𝑒𝑟 + 𝛽2 𝑐𝑜𝑠𝑒𝑠𝑠 + 𝛽3 𝑐𝑜𝑐𝑜𝑛𝑡 + 𝛽4 𝑓𝑒𝑝𝑟𝑜 + 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 11 dependent variable Dependent Independent Independent avrsales cosess cocont average the number of average sales sales per month coaching the number of coaching - sessions sessions per month coaching the percentage of coaching + content content applied in employee's daily task Independent Independent exper fepro employee’s the of + experience employee's experience number of years feedback the percentage of feedback + provision provision that can improve employee's performance Table Summary statistics 12 Chapter RESULTS Table OLS regression output 4.1 Regression result ln(avrsales)= 0.15089exper - 0.16477cosess + 0.00696cocont + 0.00737fepro + 1.67998 4.2.Interpret the coefficient of independent variables Exper: When all other conditions remain constant, increasing the number of years of experience by one unit (year) boosts the seller's performance by 15% Sellers with many years of expertise will have several means to reach clients and grasp their comprehensive information and demands in order to market the suitable courses Cosess: With all other variables held constant, increasing an employee's number of training sessions per month by one unit (session) reduces sales employee effectiveness in selling education courses by 16% Sellers with a high income have sales experience, therefore the time spent engaging in training sessions will be reduced, but with a limited number of training sessions, the material will be highly wanted and receive specialized training to fit present capacity Cocont: When all other conditions remain constant, a 1% difference in the amount of training content relevant to an employee's everyday work affects sales employee performance in selling education courses by 0.6 percent The substance of the training is critical in determining the quality of the training session Because the overall goal of training is to boost employee motivation, the more relevant the content, the easier it is to apply to activities that will have a greater impact on performance Fepro: With all other variables fixed, when the percentage effect of feedback on employee performance increases by 1%, the performance of Sales employees in selling 13 education courses improves by 0.7% Feedback, like coaching, assists employees in recognizing and learning from unfinished business Feedback from customers and management, especially in a sales atmosphere, will assist staff improve their performance 4.3.Testing the goodness of fit of the sample regression We test the goodness of fit of the model by the P-value method with the level of significance α = 0.05 Hypothesize: ● H : R2 = ● H1: R2≠0 With α=0.05 P-value method: We have the P-value corresponding to F0 = 0.0000 < 0.05 = α Therefore, we can reject hypothesis H0, accepting H1, concluding that the model is suitable with 95% confidence 4.4.Testing the Overall Significance of the Sample Regression Using F-test at statistical significance at 5% to test the significance of R2, we have the followings: H0: β1 = β2 = β3 = β4 = 0; H1: Not at all slope coefficients are simultaneously zero Computed F: Fα,(k-1,n-k) = F0.05, (4,213) = 2.372 F = (0.3651*213)/ ((1-0.3651)*4) = 31.74 We can reject H0 since the computed F-value is greater than the critical t-value at the 5% significance level Despite the fact that the R2 is just 0.3735, we can reject the null hypothesis that all regressors have no effect on the regressand This reason is that in cross-sectional data involving several observations, we generally obtain low R2 because of the diversity of the cross-sectional units 4.5.Testing hypothesis about one of the regression coefficient Using t-test at statistical significance at 5% to test the hypothesis H1 that the change in interest rates affects to the change in inflation rate, we have the followings: H0: β1 = 0; H1: β1≠ 14 Computed t: tα/2(n-k) = t0.025(218-5) = t0.025(213)= 1.96 t = 4.43 ⇒ |4.43| > t0.025(213) Because the computed t-value is larger than the critical t-value at 5% significance level, we can reject H0 In the other words, exper variable does have statistical significance at a 5% significance level Similarly, the t-statistic on cosess is -4.56, so |-4.56| > 1.96 and we also reject H0 The coefficient for cosess is also statistically significant at the 5% level either The t-statistic on cocont is 2.37, so |2.37| > 1.96 and we also reject H0 The coefficient for cocont is also statistically significant at the 5% level either The t-statistic on fepro is 3.06, so |3.06| > 1.96 and we also reject H0 The coefficient for fepro is also statistically significant at the 5% level either In summary, the four explanatory variables exper, cosess, cocont and fepro are statistically significant at 5% 4.6.Multicollinearity To clarify whether there are multicollinearity problems between variables or not, we will test the variance inflation factor (VIF) Table Variance inflation factor test Table Correlation VIF of independent variables: vif(fepro) =1.95; vif(cocont) =1.90; vif(exper) =1.13; vif(cosess) =1.04 VIF of all independent variables is lower than 2, and the 15 correlation between variables is low, thus there are no multicollinear phenomena in this model 4.7.Heteroscedasticity The White test using Stata software is applied in order to test whether heteroscedasticity appears in the regression model We obtain the following results: Table White test Based on the above result, we can observe that the value of Prob > Chi-squared(14) is 0.0026 < 0.05, so there is existence of heteroscedasticity in the regression model Consequently, the linear relationships between variables may be not accurately estimated When it comes to heteroscedasticity, while the variance of the estimated coefficients and covariance between the estimated parameters are biased, the parameters of the models are still linear and unbiased Therefore, White (1980) proposed a method named “Robust standard errors”, a technique to obtain unbiased standard errors of OLS coefficients under heteroscedasticity by keeping the estimated values of the parameters of the OLS method unchanged, only the standard errors are re-estimated As a result, we decided to apply the “Robust standard errors” method to raise the reliability of the model The results are as follow: 16 Table Robust standard errors re-estimated 17 Chapter CONCLUSION The main purpose of this study is to determine which factors coaching factors have an impact on sales employee performance After analyzing The effect of coaching factors on the performance of Sales employee in selling education courses in Ho Chi Minh city, we have come up with some following conclusions: Three out of four independent variables, which are experience (exper), coaching content (cocont), feedback provision (fepro), have positively related to average sales (lavrsales) The other one, coaching sessions (cosess) has a negative impact on the average sales Furthermore, all variables of the model are statistically significant There is no multicollinearity in this model due to low correlation among variables However, the heteroscedasticity phenomenon happens in our regression model and we decide to apply the “Robust standard errors” method to raise the reliability of the model Thus, we can conclude that all factors including the frequency of coaching sessions, coaching content, employee's experience and feedback provision have a significant impact on sales employee performance in selling education courses in Ho Chi Minh city On the other hand, there are still some limitations Due to limited time, we just carried out about 200 surveys, data and results cannot reflect sufficient and detailed information Moreover, as students, we not have much experience and knowledge as well, so there are some difficulties during the research 18