Low job satisfaction in dupont vietnam

UNIVERSITY OF ECONOMICS HO CHI MINH CITY International School of Business - NGUYEN THI NHAT SINH LOW JOB SATISFACTION IN DUPONT VIETNAM ID: 22130061 MASTER OF BUSINESS ADMINISTATRION SUPERVISOR: PHAM PHU QUOC Ho Chi Minh City – Mar 01, 2016 ACKNOWLEDGEMENT I would like to express my great gratitude to my supervisor, Dr Pham Phu Quoc for his kindness, his professional guidance and encourage as well as his valuable comments and helpful advice through my thesis I am sincerely thankful to Mr Vinh Nguyen, Mr Minh Bui, Mr Cole Truong, Ms Tien Nguyen, Ms Diep Nguyen and all MDOs and ISPs in Mekong Delta to give valuable information during in-depth interview and the data collection in the company My special gratitude is extended to all instructors and staffs of International School of Business - University of Economics Ho Chi Minh City that give me the guidance of research for the thesis course so that I can have a chance to apply theories to practice business TABLE OF CONTENTS Executive Summary Chapter 1: Company’s Industry 1.1 Crop Protection Industry Overview 1.1.1 General Overview 1.1.2 Vietnam’s overview 1.1.3 Challenge and Difficulty of Agriculture in Vietnam Chapter 2: Problem Identification 10 2.1 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 Chapter 3: Alternatives Analysis and Possible Solutions 29 3.1 Verify root cause of the real problem 29 3.2 Possible Solutions: 30 Chapter 4: Selected Solution 34 4.1 Selected Solution 34 4.2 Implementation plan 36 Chapter 5: Supporting Information 38 5.1 In-depth interview 38 Transcript 38 5.2 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 Reference 54 Appendix 62 LIST OF FIGURES Figure 1: The global population from 1960-2020 Figure 2: Global Crop protection sales from 2009-2016 Figure 3: Export value of agricultural, forestry and fishery products (2001-2012) Figure 4: Result of perceived supervisor support Figure 5: Results of identifying root causes in DuPont Vietnam LIST OF TABLES Table 1: General information of Vietnam Table 2: The overall Turnover Rate in year 2013 and 2014 Table 3: Turnover-cost categories Table 4: The Sales results in year 2013 and 2014 Table 5: Sales results of crop protection in Vietnam Table 6: Annual base salary in 2013, 2014 Table 7: Sales Incentive Program Table 8: Literature informed review –Factors influence job satisfaction Table 9: Results of identifying root causes in DuPont Vietnam Executive Summary This Project examines why the sales of DuPont Vietnam has dropped over the last two years 2013 and 2014 since its peak in 2012 and the high turnover rate was significantly increased up to 25 % in 2014 The Project draws attention to the fact of peak sales in 2012; the market share is 3% Over the next two years, DuPont Vietnam reduced its market share to 2.4% and 2.1 % year after year The volume of sales in the whole market was increased 47 million USD and 20 million USD in 2013 and 2014 with low growth rate However, DuPont had negative results with minus 7% and minus 10% reduced year after year Low job satisfaction is the real problem since there is consistency research between literatures informed review, secondary data including in depth interview, mini-survey, financial and HR reports to confirm this real problem Further investigation, the root cause of low job satisfaction is poor supervision skills considered and proposed the alternative solutions There are three alternative solution proposed  Management training programs: Coaching Skills, Project management, Motivation Skills  Additional Reward and Recognition program: Best group in the year, Peer Recognition  Team building for separated groups The best solution to enhance poor supervision skills is management-training programs selected and implemented with proper plan Chapter 1: Company’s Industry 1.1 Crop Protection Industry Overview 1.1.1 General Overview Crop protection industry is a rapidly growing in global in general views and Vietnam in private views Crop production products help and succeed the farmer’s means growing a healthy and profitable crop All good companies in this industry operate with mission of feeding the world sustainably to deliver the best agriculture products to create higher crop yields and nutritious foods with high quantity, quality and sustainability of the world’s food supply Population growth and greater economic prosperity is emerging market will drive future demand for food and feed production The population is expected to rise from around seven billion to more than nine billion in 2050.Most of this population growth will occur in developing countries The CAGR is 1% percent year on year growth of population Figure 1: The global population from 1960-2020 In parallel, a greater number of people will experience increased wealth and higher purchasing power, and as a result will increase consumption of processed food, meat, dairy and fish Agriculture must meet this demand to provide enough food and feed production to our current demand of world Crop protection products protect plan from damaging influences such as weeds, diseases and insects There are three portfolios of products as below (1) Fungicides: Products for preventive and curative control of crop diseases; (2) Insecticides: Products for the control of crop diseases (3) Herbicides: Products for Weed control The below is global sale crop protection and outlook 2016 showing that the sales of this business with trend increasing especially in Asia-Pacific country Figure 2: Global Crop protection sales from 2009-2016 Source: Amis Global Crop protection &Seed Database Notably, the demand of crop protection product is increasing from year by year especially for developing country where the demand of food is high 1.1.2 Vietnam’s overview Over the past years, Vietnam’s agriculture production has made significant achievements, contributing to the national food security, economic development, trade balance, reducing inflation, defending the territory as well as stabilizing socio-political situation in Vietnam Although Vietnam has undergone obvious changes in economic and labor structure, so far, more than 70% of Vietnamese population lives in the rural areas Therefore, agriculture production is their main livelihoods Table 1: General information of Vietnam For instance, Vietnam enjoys a good location to invest the crop protection with as huge agriculture arable land and highest land productivity compared to Cambodia, Laos Thailand, respectively Many famous companies such as Sygenta, Bayer, Dow, DuPont and others enjoy investing their science products on agriculture products’ treatment on crop Agricultural exports have increased continuously Vietnam is now one of top world exporters in agriculture products such as rice, rubber, coffee, pepper etc Vietnam poverty reduction rate has improved for a long period, with a very impressive rate of 2% per year Vietnam is currently the second biggest rice exporters in the world after Thailand Vietnam is global agricultural and important foundation for social stability, political security, as well as for environmental protection The contribution of agricultural products accounts to the total exports of Vietnam is remarkable from 49% in 2011 to 57.7% in 2012 The export value of the agricultural sector has significantly increased since 2000 (except 2009) Figure 3: Export value of agricultural, forestry and fishery products (2001-2012) 1.1.3 Challenge and Difficulty of Agriculture in Vietnam Presently, Vietnam is facing with three main issues: (i) 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 industry is underdeveloped Despite several inefficiencies and weaknesses, Vietnam’s agriculture is now a major driver in the development contributed to GDP sector up to 20% Agriculture plays an important role in trade balance of Vietnam Currently, economic development depends much on agriculture It is known that agriculture remains the great advantage of Vietnam, given internally in the agreement of Trans-Pacific Partnership (TPP) In the context of integration, Vietnam increasingly defines its strategic role in world agriculture Although, there are many difficulties ahead, with the non-stop efforts, Vietnam agriculture will catch its chance, have flexible, creative methods in the near future to develop endlessly such as paid holidays or family insurance are important factors to employee satisfaction Second, Workforce engagement: Employees not feel their work interesting or contributing to the mission of the company will be engaged They must feel like involve to the goal achievement Third, Develop Skills: Training opportunities, mentoring, internal or external training encourage workforce to improve their skills Last, Recognition and Reward: Personal recognition is a powerful tool in building morale and motivation A regarding or personal note from a peer or supervision does wonders Small, informal celebrations are many times more effective than formal event Interviewer: In your opinition, what would you want to to increase the Sales performance in 2015 onwards? Mr.Vinh: This question is always our concern since we have not achieved the target three 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 the team with the team and the team with their supervisors Likewise, we need to enhance good communication with our customers to maintain the good relationship with old 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 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 customers as well as brand awareness is the top of marketing tasks to influence the decision of the customers 48 Mr Minh: Likewise, training program is always necessary thing to to enhance workforce skills and knowledge to create sales, maintain the good relationship with the customers, sustainable growth In addition, Group Communication workshop or course a year to enhance the good communication in the team, encourage the workforce, inspire them in their current working with high motivation, create more close communication between employees and supervision To proper action to our customers, company implement to direct serve to retailers with high incentive program, gift instead of serving too much to dealers to close the gap of market coverage To make the fairness, Company keeps the profit for dealers from 3-4% and retailers from 5-10% with stability strategy Ms Tien: First, enforce sales team to work with high efforts beside to provide the good benefit to make them satisfied as above that I have mentioned Second, ISPs and MDOs 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 creates the MC program to meet the demand of our customers, make them satisfied with our company, workforce and products 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 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 range of target to encourage sales team and marketing team to work hard with all the best and not lost their motivation of nothing gain from season ended 49 Ms.Diep: For me, I think, First, Marketing program should regularly such as advertising on TV to create demand Second, Sales team with well equipped of their skills to create sales on the market Final, company tries to fulfill the gap between company and workforce to enhance job satisfaction, which could potential increase sales performance Thank you for your sharing, wish you good health and success in your career 5.2 Literature informed to confirm the potential caused of the real problem Table 8: Literature informed review –Factors influences job satisfaction No Author Site Lambert, E.G., Hogan, USA Factors Wage, hours, promotion, reward, task performance N.L., & Barton, S.M., (2001) Tami,N.,(2013) India Work itself, Pay Opportunities: structure, Supervision, Advancement Co-Workers, Environment, Compensation & Benefits, Training, Climate, City & Neighbors: Ethics and Principle Spector,P.E (1997) USA communication,coworkers,fringebenefits, job condit ions,nature of work, organization organizations' and personal policies growth, itself, procedures, promotion pay, opportunities, recognition, Bas., T&Ardic., K(2002) Turkey supervision/superior behavior , co-workers' behavior, job itself, working facilities, current pay, job security 50 Lawrence,G.,2005 USA type of work, job security, coworkers, company, advancement, pay, supervision, hours, benefits and working condition Smith,P.K., Kendall, C USA pay, promotion and K., &Hulin, C.L., 1969 coworkers, supervision Sloane, P J & Ward, M Nigeria women over the age of 35 promotion opportunities, E (2001) Yang, J.T (2010) Taiwan Clark, A., Oswald, A., & UK conflict, burnout, socialization, and work autonomy employees' ages Warr, P (1996) 10 11 Organ, D W., & Lingl, Turkey organizational citizenship behavior and personality A (1995) measures Agarwal.,R.N and India Dewan, P.,(2016) Organizationdevelopment factors, Job security facto rs, Work task factors, Policies of compensation and benefit factor and opportunities of promotion and development 12 Bakotic,D.(Sep 2014) UK level of education 13 Ladebo, O J (2005) Nigeria salary and wages, staff, promotion opportunities and the nature of the work 14 Donovan, M A., USA interpersonal behavior, working Drasgow, F., & Munson, relationships with L J (1998) material rewards and promotions, 15 Dhladhla, T.J.(2011) USA 16 John G & B A Weitz USA Japan conditions, colleagues, leadership style, age, education, financial status, years of service Pay 51 1989 17 Fu,W., Deshpande, S China Pay, coworker, supervision, and work itself P(2014) 18 Warr, P (1996) UK pay, colleagues, supervisors, working conditions, job security, promotion prospect, nature of the work 19 Lum, L., Kervin, USA Pay J.,Clark.,K.,Reid,F&Sirol a, W.,(1998) 20 Saif, S K., Nawaz, A., Pakistan pay, work, supervision, promotion, co-workers and Jan, F A (2012) environment 21 Bassett, G (1994) 22 Ellickson, M India C & Canada Supervisors promotional opportunities Longsdon, 23 Luthans, F (2005) USA 24 Siddiqui, A & Saba, I Pakistan pay, promotion, work, supervision, fellow workers job security (2013) 25 Mulindwa, S K (1998) Uganda incentives, pay packages, leadership styles and finally the condition 26 Wubuli, A.(2009) Malaysia Work condition, promotion 52 pay variable, fairness and 5.3 Mini survey to indentify the root cause of the real problem Table 9: Results of identifying root causes in DuPont Vietnam Very Please indicate your job Dissatisfi Very Neutral Satisfied satisfaction on below Dissatisfied ed factors (1) (2) (3) (4) (5) 30.9% 29.4% 39.7% 0.0% 0.0% 2.09 11.8% 23.5% 44.1% 20.6% 0.0% 2.74 13.2% 42.6% 35.3% 8.8% 0.0% 2.75 42.6% 27.9% 29.4% 0.0% 0.0% 1.87 PAY Satisfied Mean & COMPENSATION CO WORKER JOB SECURITY SUPERVISION Figure 5: Results of identifying root causes in DuPont Vietnam SUPERVISION 1.87 JOB SECURITY 2.75 CO WORKER 2.74 PAY & COMPENSATION 2.09 53 Reference Agarwal.,R.N and Dewan, P.,(2016): A STUDY ON THE RELATIONSHIP OF EMPLOYEE SATISFACTION VIZ-A-VIZ ATTITUDE AND PERCEPTION OF THE EMPLOYEES TOWARDS THE ORGANIZATION: International Journal of Information, Business and Management Agenti, P.(2007) Corporate communication: An Internatinal Journal, 2(1),14-21 Aken, J E., Berends, H., &Bij, H V (2012) Problem Solving in Organizations: A Methodological Handbook for Business and Management Students Bassett, G (1994) The Case 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Mr Vinh: Hello Sinh, My full name is Nguyen Ngoc Vinh, I am currently as a Business Manager of crop protection business in DuPont. .. DuPont Vietnam I have been working at this company since 2010 38 Mr Minh: Hello Sinh, My full name is Bui Anh Minh; I am currently working as Sales Manager of crop protection business in DuPont Vietnam