report introduction to management

CURRENT SOLUTIONS & EVALUATION BY THE COMPANY Salary cuts make employees no longer motivated to work and the company''''s solution is downsizing and increasing salaries for current labor..

TRƯỜNG ĐẠI HỌC FPT THÀNH PHỐ HỒ CHÍ

MINH

REPORT INTRODUCTION TO MANAGEMENT

INSTRUCTOR: La Thị Cẩm Tú

1 Nguyễn Gia Huy SS171139

2 Phạm Quỳnh Thắng SS170585

3 Phan Trọng Hào SS170587

4 Dương Thùy Trang SS171167

5 Phạm Thị Ngọc Diễm SS170342

6 Nguyễn Xuân Quý SS171126

Table of Contents

I.COMPANY OVERVIEW……… 2

II.CURRENT MANAGEMENT ISSUES ……… 4

III.CURRENT SOLUTIONS & EVALUATION BY THE COMPANY ………… 4

IV.RECOMMENDATION ……… 6

A Analysis of understanding issues ……… 6

B Theories applied to the company ……… 7

C The alternatives for company ……… 8

D Implementation Plan for the Company………9

V.SUMMARY ………10

I COMPANY OVERVIEW

The limited liability company ĐẠT LIÊN located at 329 Tran Hung Dao Street, Bong Son Ward, Hoai Nhon Town, Binh Dinh Province, Vietnam is represented by NGUYEN THANH DAT The company's primary focus is on the wholesale of other household goods, including essential products such as milk, noodles, beer, soft drinks, and more

The company specializes in the distribution of these essential products, which are purchased in large quantities from other provinces and sold to small business households in neighboring districts This ensures that these necessary products are available to consumers in these areas, helping to support the local economy

road The company ensures that its products are transported safely and efficiently to their intended destinations

Overall, this limited liability company based in Binh Dinh Province, Vietnam offers a range of goods and services to its customers, with a focus on providing quality products and efficient transport services

II CURRENT MANAGEMENT ISSUES

The COVID-19 pandemic has had a significant impact on the company, with a number of challenges affecting its operations The company is also facing big challenges with human resources management issues The difficult business situation has led to low salaries for employees, as well as few job opportunities but a high number of job seekers This can have a demotivating effect on employees, causing them to work less effectively and become

discouraged

III CURRENT SOLUTIONS & EVALUATION BY THE COMPANY

Salary cuts make employees no longer motivated to work and the company's solution is downsizing and increasing salaries for current labor In fact, with the current situation of the business, the layoff of employees is inevitable because many people have less work and the salary decreases, so employees are not motivated to work And the reduction of personnel as well

as the increase in wages for the remaining workers of the company will also have different advantages and disadvantages

part of the company's manpower is

made, it will help save the budget

from the salary of those old

employees The implementation of

the savings budget will help raise

the body and loyalty, as well as the

increase in salary can retain the elite

personnel of the company

increases may be a great motivator for

present employees, inspiring them to work

and so helping to boost the company's

productivity

laborers: When an employee is laid

off, that amount of work will be taken up by existing employees, which can lead to an increase in workload and stress levels and this can lead to reduced work

productivity

employees have to take up or change their roles in the company, they will have difficulty adapting to new jobs because not all jobs belong to the right professionals their subject, and it will take them a long

time to learn and adapt

Downsizing can change some processes and jobs This may result in the company spending more time training existing employees on job skills or reorganizing the

company system

employees can lose confidence in the company, especially if the compensation process for fired employees is not handled properly Moreover, downsizing is only a solution when the company has economic difficulties, and if after this period, the economy stabilizes or develops, it will become more difficult to hire those employees again

can incur a high compensation cost if laying off too many employees, as well as other benefits factors Moreover, if the company's compensation level is not reasonable, it will greatly affect the company's reputation

IV RECOMMENDATION

A Analysis of understanding issues

Base on the interview our team find out that there is a problem in the company

than ever, leading to the low corporate of the company, which means they don’t have enough money to raise wages for employees, leading to the employees not having motivation to work

Not only that, the lack of motivation of the workers is also greatly affected by the company's interests, cause they think that they should have a better reward

B Theories applied to the company

Downsizing theory:

• Implements a downsizing policy to reduce work pressure and cut costs Downsizing is a common practice used by organizations to improve efficiency and competitiveness

Compensation theory:

• Compensate employees as a way to maintain their morale and retain their loyalty This compensation could be seen as a form of reward and recognition for their contributions to the company

Herzberg’s Two-Factor theory:

• Offering food support and career advancement opportunities to its employees to increase their job satisfaction and motivation Providing food support can help employees feel valued and cared for, while career advancement opportunities can give them a sense of purpose and direction

Employee empowerment and Employee participation:

• Allows employees to advance their salary before the term depending on the number of working days they have attended Surveys and meetings every 2 months to assess

involves giving employees a voice in the decision-making process and involving them in the improvement of the organization

C The alternatives for the company

*Downsizing

Currently, the company has 30 full-time employees, after implementing the downsizing policy, will retain 24 full-time employees and 6 employees left will be replaced by 12 part-time employees

Currently, the salary for full-time(8 hours) workers is 6 million VND for 1 month and 2 million

6 hundred thousand VND for part time(4 hours) workers

With this solution, the company will need 144 million VND for the salary of 24 full-time employees and 31 million two hundred thousand VND for 12 part-time employees Total salary cost is 175 million for 1 month Saving 5 million in 1 month compared to the old policy

*The benefits that the solution brings are:

*Compensation policy

totaling 36 million VND

reputation, maintaining relationships and being able to re-hire old employees if necessary.

*Benefits at work

attended

can take a chance to promotion once every 6 months)

chance to decide and voice their opinions

→ Create motivation for employees, identify employees' satisfaction and dissatisfaction to address current problems in the workplace environment

D Implementation Plan for the Company

1 The company makes a notice to reduce personnel, screen personnel Open a meeting with all

employees in the staff The company discusses, discusses and makes requests from the company's wishes from employees After that, the company will evaluate the issues: work performance, select employees who meet the requirements set by the company, make a decision

to dismiss employees who do not meet the requirements of the company In addition, The company will hire more part-time employees to replace a part of full-time employees who are not productive

Company has also introduced compensation policies such as:

2

- 1 month's salary and support to introduce employees to other jobs

employee, labor will receive 1 meal with a value of 20,000 VND

- Support employees in financial matters, allowing employees to advance salary in advance (for full-time employees: can advance the labor salary not exceeding the number of working days in that 1 month)

3 The company will open annual review meetings or surveys (2 months / 1 time), continue to

evaluate the working process based on the requirements Employees can request back on the

company side about basic rights, ask for a review of the position and promotion in the job to be more suitable Opening meetings or implementing surveys by Google forms, direct conversation helps employees and the company to discuss and listen to both sides, creating a feeling that

employees are respected and the company can solve hidden problems internally

V SUMMARY

Current Problem Current Solution Alternatives for the

company

Feedback

Decrease labor

motivation because of

low salary, it cause

them to work less

effectively and become

discouraged

Downsizing and increasing salaries for current labor

Downsizing: hire part time

emloyees to replace one of part full- time emloyees

Compensation policy:

compensate for one month's salary for each layoff employee

Introduce new job to them

Company feel downsizing strategy that my team suggest

is suitable with their business in this time when hire a part of part-time emloyees to replace full-time

support for employees, Allow employees to advance salary before term

Create career advancement

and meetings to assess employee satisfaction, giving them a chance to decide and voice their

opinions

However, they think compensating one month's salary for each layoff employee is beyond the company s ’ budget They only support maximum ½ month for each layoff emloyee