Lack of career growth opportunity in operation department at THI group vietnam HCM branch

UNIVERSITY OF ECONOMICS HO CHI MINH CITY International School of Business VU THI BICH HOP FINAL THESIS LACK OF CAREER GROWTH OPPORTUNITY IN OPERATION DEPARTMENT AT THI GROUP VIETNAM HCM BRANCH MASTER OF BUSINESS ADMINISTRATION Ho Chi Minh City – Year 2019 UNIVERSITY OF ECONOMICS HO CHI MINH CITY International School of Business VU THI BICH HOP FINAL THESIS LACK OF CAREER GROWTH OPPORTUNITY IN OPERATION DEPARTMENT AT THI GROUP VIETNAM HCM BRANCH MASTER OF BUSINESS ADMINISTRATION Ho Chi Minh City – Year 2019 CONTENTS EXECUTIVE SUMMARY CHAPTER I: INDUSTRIAL OVERVIEW AND COMPANY BACKGROUND 1.1 Industrial Overview 1.2 Company Background CHAPTER II: PROBLEM JUSTIFICATION 10 2.1 Problem finding process 10 2.2 Company’s Symptoms 10 2.2.1 Low Revenue 10 2.2.2 High turnover rate in Operation Department 13 2.3 Problem Identification 15 2.3.1 The Initial cause-effect map 15 2.3.2 The Updated cause-effect map 20 2.3.3 The Final cause-effect map 24 CHAPTER III: ALTERNATIVE SOLUTIONS 31 3.1 List of real causes 31 3.1.1 Lack of training 31 3.1.2 Lack of knowledge sharing 31 3.1.3 Lack of orientation 32 3.1.4 Lack of promotion 32 3.2 Proposed solutions 33 3.2.1 Solution 1: Provide an effective orientation program 35 3.2.2 Solution 2: Provide an official training process 35 3.2.3 Solution 3: Open sharing session between teams 36 3.3 Alternative sets of solution 37 3.4 Action plan 40 3.4.1 Objective of action plan 40 3.4.2 Timeline and Cost 40 CHAPTER IV: SUPPORTING INFORMATION 43 4.1 Interview Transcripts 43 4.2 Questionnaire for the existence of problem 65 4.3 Questionnaire for the chosen set of solutions 67 REFERENCES 68 LIST OF FIGURES Figure 1: Organization Structure Figure 2: The initial cause-effect map 19 Figure 3: The update cause-effect map 23 Figure 4: The final cause-effect map 26 Figure 5: Solution Map 34 Figure 6: Sets of solutions 37 LIST OF TABLES Table 1: Summary revenue of THI Group in years ··············································· 11 Table 2: Operation Department customers’ situation ··············································· 12 Table 3: Turnover rate of operation department ······················································ 14 Table 4: The result of survey ···················································································· 38 Table 5: Cost-benefit analysis ··················································································· 39 Table 6: Timeline and estimated cost for Solution 1················································· 41 Table 7: Timeline and estimated cost for Solution 2.1·············································· 42 Table 8: Timeline and estimated cost for Solution 3················································· 42 ACKNOWLEDGEMENTS I would like to express my gratefulness for the period two years studying in ISB Ho Chi Minh City I also would like to express my deep sense of gratitude to Dr Thu Phan for her valuable guidance, keen interest and especially encourage me at various stages of doing this thesis Besides, I would like to thank my family; friends who always stand by me to support me finish this thesis well Especially, many thanks for my colleagues who gave me valuable information and advices so that my thesis can be done well EXECUTIVE SUMMARY This study analyzes the case in Operation Department of THI Group Viet Nam Ho Chi Minh Branch with the symptoms are high turnover rate and the declining in revenue of Operation Department There are three main chapters in this paper In chapter I, an overview of the logistics industry as well as the background of the company THI Group Vietnam will be introduced Chapter II will be all about the existing problem in the department Firstly, based on the primary and secondary data, there are two symptoms low revenue and high turnover rate found out After that, through depth-interview with some related people, a problem mess is figured out on the initial cause-effect map Next part is the updated cause-effect map, in this section three potential central problem are figured out based on the information from interview and literature review Finally, the final map with all details about the central problem is demonstrated The central problem is lack of career growth opportunity, which lead to many consequences; thus, it has been chosen as a central problem, which need be solved in this paper Chapter III is included a list of real causes of the central problem and a set of solutions for the problem In Chapter IV, all supporting information for this paper is indicated CHAPTER I: INDUSTRIAL OVERVIEW AND COMPANY BACKGROUND 1.1 Industrial Overview Vietnam grows vigorously in trade over the coming years, which will support for the development and expansion of logistics industry, one of the fastest growing industries in Vietnam There are many main logistics hubs in Viet Nam which are located in the North including Ha Noi – Hai Phong area and in the South, Ho Chi Minh City area, Dong Nai province, Binh Duong province as well as Ba Ria - Vung Tau The logistics industry is estimated to grow at a pace faster than the GDP growth rate, and currently, the logistics service accounts for 15-20% of GDP in Vietnam There are many parties involved in this industry, such as liner who are owners of vessels to transport cargo, forwarding company, the manufacture, the seller, the buyer, custom official, trucking company and so on All these parties will cooperate to serve customers by taking cargo from supplier and delivering to the final customer 1.2 Company Background THI Group Viet Nam is one forwarding company, which belongs to a Taiwan Group and was established in 2004 in Ho Chi Minh City Now, it is one of the leading international logistics service providers in Vietnam with branches With almost 150 friendly and professional staffs working in four offices together with a reliable and robust partner network in the world, it serves every single demand of customers’ shipment at any corner in the globe History Timeline 2004 THI Group Viet Nam was founded in Ho Chi Minh City 2005 Set up Ha Noi and Hai Phong Branch 2015 Set up Da Nang Branch Vision THI Group will be a global company, providing professional logistics services, keep creating value for society and its people Mission The mission of THI Group is offering modern, integrated logistics solutions to customers based on the creativity and the ongoing optimization of our operations through our team The main business of THI Group Viet Nam – HCM Branch Ho Chi Minh Office is head office of THI Group Viet Nam, and it provides all logistics services to all customers around the world It provides customs brokerage service to customers In addition, with a global agent network, THI Group is able to provide its clients import and export FCL and LCL services from anywhere to Vietnam or from Viet Nam to any country around the world at most competitive rates Especially, THI Group operates regular import and export airfreight consolidation to and from cities throughout the world using our network Organization Structure General Director Accountant Operation Sales Pricing Admin and HR Department Department Department Department Department Figure 1: Organization Structure CHAPTER II: PROBLEM JUSTIFICATION 2.1 Problem finding process In order to identify the existing problems of the company, the following steps will be executed: - Referring to the reports from the company as well as from Operation Department to collect and analyze data - Conducting the depth interview with the related people, including Operation Manager, Admin Staff, Current Operators and Old Operators to understand the division symptoms and possible problems - Conducting a small survey to get data from a number of employees in three departments: Accounting Department, Operation Department and Sales Department to affirm the existence of central problem in the department - Review the literature and theory, which is relevant to the problem 2.2 Company’s Symptoms 2.2.1 Low Revenue As per information from the previous part, logistics industry is strongly developing in Vietnam, many forwarding companies are founded around the country, they grow very fast from year to year, and below is data about the revenue of five companies in three years: Unit: USD Seq Company 2016 2017 2018 Bee Logistics 8,638,105 9,537,682 9,767,562 Everich Vietnam 7,046,294 8,465,738 8,864,321 VVMV 6,830,976 7,341,986 8,024,673 Eculine 6,793,746 7,145,763 7,737,945 ANC VietNam 5,734,144 6,542,986 7,097,023 Table 1.1 Revenue of logistics companies Source: www.logisticsmgmt.com It can be seen clearly that, the revenue of above companies is increased year by year, these companies have same background with THI Group Vietnam Back to THI 10 INTERVIEW TRANSCRIPT – MS APPLE Interviewer : Ms Bich Hop Interviewee : Ms Apple – Ex employee Date of Interview : July 27 2018 Start Time of Interview End : 18h00 PM Time of Interview : 18H30 PM Location of Interview : Coffee shop Interview Topic : Job in THI Group Hop: Good afternoon, sis Apple! Firstly, thank you very much for taking your time to join this interview It is a long time we have met again, hope that everything is going well with you Ms Apple: Thank you Nice to meet you again How are you these days? Hop: I’m fine, thank you To save your time, I will begin our interview It’s almost a half of year since the day you left THI Group As you know that, before and after your leave, there are a lot of leaves from staffs in Operation Department It is a big problem with the company in general and the in Operation Department in particular Thus, today I would like to have a small talk with you about this issue The interview will take about 15-20 minutes and the session will be taped to avoid any missing All responses will be kept confidential Ms Apple: Ok It’s fine Hop: How long have you worked for THI Group? At one position or change many positions? 57 Ms Apple: I had worked at THI Group for nearly years and just be staff in in Operation Department Hop: How did you feel when working at THI Group? Why did you choose to leave your job at that time? Ms Apple: I was not motivated When I asked for a career path, there nothing clearly In that case, I think I should leave I would like to work for a company in which I can work hard and gain more I not satisfy with no developed job The working environment in THI is good, there no stress and everyone is very friendly I just leave because there is nothing for me to chase in THI Hop: So, can you state the most satisfied things while working for THI Group? Please explain further Ms Apple: I think the three most satisfied thing is working environment As I said before, everyone is so nice I love it That is all Hop: So, how about unsatisfied things while working at THI Group? Please explain further Ms Apple: There a lot of think, I feel unsatisfied when working at THI Group: - No opportunity for career development - The job is boring, there is very little thing to learn Daily working is just replay day by day - Low salary There is very little compensation and benefit Hợp: As I mentioned at the beginning, there are a lot of leave from staffs in in Operation Department for the period two years Can you give your ideas about that? Ms Apple: as I shared above, the company not anything for employees to be better in their career, so everyone will want to find a better place to stay I think most of people want to work in active working environment where they can express themselves In addition, when I have just joined the company, they did not give any official training so that I can know about my job, just a short time in a day they introduce about the company and that is all I have to ask the old employees what should I and I have to find out on my own how to this job Then, if the company does not change their style to run the in Operation Department, maybe someday, all current employees will leave the company Because as you know that, 58 young generation they have aspiration and the then they really need a company where can help for their improvement Hợp: In your opinion, what is the most important reason for above issue that company have been facing? - Training and development - Benefit for in Operation Department staff - Management - Or something related to customers Do you have any suggestions for company to solve these issues? Ms Apple: The most important reason is about opportunity, after worked for the company for a long time & they look back and they realize that they still stand on the same position; salary is still low, nothing new for their brain, so they will quit Especially, for the newcomers, they not receive any official training or job orientation, they will be confused with their career and their future here, so they will feel not interesting and they choose another place to work Hợp: What can the company to change your mind on leaving the company? Ms Apple: I still chose to leave the company even they change anything Hợp: Would you mind introduce your friends working for the company? Why? Ms Apple: No None of my friends wants to work in boring working environment, where they cannot use their all ability and develop Hợp: Is there anything more you would like to share with me? Ms Apple: Try to finish your paper ^^ Hợp: Yes, the information will be analyzed and I will send you a copy for your reference.Thank you so much for your time! 59 INTERVIEW TRANSCRIPT – MS SARAH Interviewer : Ms Bich Hop Interviewee : Ms Sarah – Ex employee Date of Interview : July 29 2018 Start Time of Interview End : 19h00 PM Time of Interview : 19h30 PM Location of Interview : Coffee shop Interview Topic : Job in THI Group Hop: Good afternoon, Sis Sarah! Many thanks for taking your time to join this interview It is a long time we have met again, hope that everything is going well with you Ms Sarah: yes, I am fine Thanks you! Hop: Yah, you have left our company for a long time As you know that, before and after your leave, there are a lot of leave from staffs in in Operation Department as well It is a big problem with the company in general and the in Operation Department in particular Thus, today I would like to have a small talk with you about this issue The interview will take about 15-20 minutes and the session will be taped to avoid any missing All responses will be kept confidential Ms Sarah: ok, I know Hop: How long have you worked for THI Group? At one position or change many positions? Ms Sarah: I have worked at THI Group for nearly year and been a staff in in Operation Department 60 Hop: How did you feel when working at THI Group? Why did you chose to leave your job at that time? Ms Sarah: Sometimes I liked working there, but I need to improve myself, my life so I thought I need to move and I received a better offer so I left THI Hop: Can you state the most satisfied things while working for THI Group? Please explain further Ms Sarah: When working there, I felt very comfortable with all colleagues; they are very friendly and always willing to help if I need any support from them Especially, we live more than eight hours together like a family; talk together, each together, laugh together In addition, the location of the company is very convenient; it was placed in District 1, it is near for me to go Hop: So, how about the unsatisfied things when you worked at THI Group? Please explain further Ms Sarah: There is no official training process for new employees, so I not know exactly about my job role In addition, compared to other companies, the benefit from THI is just 12 annual leave a year; there is no sick leave, no health care, no team building every quarter, just one trip inside Viet Nam per year There is no reward when I did job well Hợp: As I mentioned at the beginning, there are a lot of leave from staffs in in Operation Department for the period two years Can you give your ideas about that? Ms Sarah: This situation will happen, when I have still worked for THI, I already had this thought in my mind Hợp: In your opinion, what is the most important reason for above issue that company have been facing? - Training and development - Benefit for in Operation Department staff - Management - Or something related to customers Do you have any suggestions for company to solve these issues? 61 Ms Sarah: Most of members in in Operation Department are still young, so they really need a working environment where they can learn more knowledge; especially they need opportunity to develop their skills However, until now THI cannot this Benefit is an important factor, which can lead employees to move to another company if it can give them a better one Nevertheless, the key thing is still opportunity to develop in one’s career, if employees get the good training, for the new employees as well as monthly training for old employees or open sharing session between team so that they can learn from each other then they can their job well In addition, the company should change their review salary policy, twice a year so that it can encourage employees to work harder For some old employees, the company need to consider a promotion opportunity so that they feel they are better after a long time Hợp: What can the company to change your mind on leaving the company? Ms Sarah: - Improve their benefit package for employees - Create more chances for employee to develop themselves Hợp: Would you mind introduce your friends working for the company? Why? Ms Sarah: No until the company should be more professional in step of training and develop employees Hợp: Is there anything more you would like to share with me? Ms Sarah: Hope that my sharing can help you to finish your paper and your paper can help the company later Hợp: Your sharing is very helpful for me; I can get a lot of necessary for my paper, thank you so much the information will be analyzed and I will send you a copy for your reference Thank you again for your time! 62 INTERVIEW TRANSCRIPT – MS ROSY 2ND Interviewer : Ms Bich Hop Interviewee : Ms Rosy – Branch Manager Date of Interview : Aug 11 2018 Start Time Interview : 13h00 PM End Time of Interview : 13H30 PM Location of Interview : THI’s Office Interview Topic : High turnover rate in Operation Department Hop: Good morning Chị! Again, many thanks for taking your time to join the interview with me again today Your last sharing is very valued for my work Last time, we talked to the high turnover rate in sales department and the reason of the leaving Today I would like to ask your help more about this issue I will try to finish it sooner to save your time Can we start now? Ms Rosy: ok, I am ready Hop: Regarding to the problem of high turnover rate in Operation Department, in your opinion, what is the most important reason for above issue that company have been facing? Ms Rosy: as I know that most of the employees who left the company found out a better company to work for, better about work environment, better pay and benefit Especially, for more opportunity to grow their career Hop: How about training process for the new employees? 63 Ms Rosy: we have just taken from 15-30 minutes to introduce some basic information for them Hop: Is there any career development program for employees? Ms Rosy: Currently, we have no However, with the current situation of sales department, I think I need to have a meeting with the top manager for this issue, about training as well as career development Because top management also pay attention on the issue high turnover rate of operation department at this time, it has many impacts on the company, especially the revenue Hop: So what you think about the solution for the existing problem in the department? Ms Rosy: I already think about the process to improve for the department at this time First is about the orientation, second is about the training We need to have a specific plan for the improvement Regarding to pay and benefit, it needs to take a long time to consider about the plan For the appraisal system, we need to submit to top management about this & wait for their approval In addition, I think I will hold meeting with team leader about their feedback for team member every month Hop: Thanks for your sharing Is there anything more you would like to share with me? Ms.Rosy: No Hope you can finish your work successfully Hop: thanks you, with your information, I can finish a part of my paper already After finishing, I will send you a copy for your reference Many thanks & wish you have a good day! 64 4.2 Questionnaire for the existence of problem QUESTIONNAIRE Dear Sir/ Madam My name is Bich Hop; I am a MBA student of ISB School I am carrying out a survey for my major project, with specific reference to THI Group Viet Nam (HCM Branch) as a part of our MBA curriculum Please take your time for helping me to respond for all following statements The information collected will be used strictly for academic purpose and always keep confidential Please select your level of agreement from to 5, which is minimum agreement to maximum agreement Please read carefully and respond to all the statements The current job makes me closer to my career goals Strongly disagree Disagree Neutral Agree Strongly agree The current job is relevant to my career goals and vocational growth Strongly disagree Disagree Neutral Agree Strongly agree The current job gives me good chances to realize my career goals Strongly disagree Disagree Neutral Agree Strongly agree The current job help me to gain new job-related knowledge and skill Strongly disagree Disagree Neutral Agree Strongly agree The current job help me to improve my professional capabilities Strongly disagree Disagree Neutral Agree Strongly agree The promotion policy in my current company is good Strongly disagree Disagree Neutral Agree Strongly agree The probability of being promoted in my present organization is high Strongly disagree Disagree Neutral Agree Strongly agree 65 My salary is growing quickly in my current organization Strongly disagree Disagree Neutral Agree Strongly agree Department: Position: Thank you so much ! 66 4.3 Questionnaire for the chosen set of solutions QUESTIONNAIRE Dear Sir/ Madam My name is Bich Hop; I am a MBA student of ISB School I am carrying out a survey for my major project, with specific reference to THI Group Viet Nam (HCM Branch) as a part of our MBA curriculum Please take your time for helping me to respond for all following statements The information so collected will be used strictly for academic purpose and always keep confidential Is it necessary to create an effective orientation for employees of operation department? a Yes b No Is it necessary to provide an official training for employees of operation department? a Yes b No According to you, which training method is suitable for employees of operation department? a On the job training b Off the job training Is it necessary to open monthly knowledge sharing session for teams? a Yes b No -Department: Position: Thank you so much ! 67 REFERENCES (1) Snell & Bohlander, G.W Human Resource Management Thomson, 2007 (2) Bernadin, H.J Human Resource Management: An exponential approach 4thed New York: MC Grawhill Irwin 2007, P.253-277 (3) Malik & Naseer: Organizational Effectiveness: A case study of telecommunication and banking sector of Pakistan Far East Journal of Psychology and Business, 2001, Vol.2, No (4) Ibrahum and Boerhaneoddin Is job satisfaction mediating the relationship between compensation structure and organizational commitment? 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