Lack of training at CGV cinemas

The customer complains about the quality of service comes from many problems, but the most important problem is the professionalism and service attitude of employees because the company

UNIVERSITY OF ECONOMICS HO CHI MINH CITY

International School of Business

-

NGUYEN NGOC MINH

LACK OF TRAINING AT

CGV CINEMAS

MASTER OF BUSINESS ADMINISTRATION

Ho Chi Minh City – Year 2019

UNIVERSITY OF ECONOMICS HO CHI MINH CITY

International School of Business

-

NGUYEN NGOC MINH

LACK OF TRAINING AT

CGV CINEMAS

MASTER OF BUSINESS ADMINISTRATION

SUPERVISOR: Dr Nguyen Phong Nguyen

Ho Chi Minh City – Year 2019

Acknowledgment First and foremost, I have to thank my research supervisor, Dr Nguyen Phong Nguyen Without his assistance and dedicated involvement in every step throughout the process, this paper would have never been accomplished I would like to thank you very much for your support and understanding over thesis implementation period

I would also like to thank the experts who were involved in the validation interview for this research project: Mr Park Hye Sung, Mr Pham Van Dien, Mr Vuong The Phong, Mr Thai Gia Vuong, who are managers of CJ CGV Viet Nam Co Ltd Without their passionate participation and input, the validation interview could not have been successfully conducted

I would also like to acknowledge Dr Pham Phu Quoc, of the International School of Business at University of Economic Ho Chi Minh city as the second reader

of this thesis, and I am gratefully indebted to him for his very valuable comments on the proposal of this thesis

I also would like to express my sincere thanks to all the members of MBUS 7 class of the International School of Business at the University of Economics Ho Chi Minh City for discussion and recommendations along the process that I have

undertaken this thesis The comments from you helped me have more information as well as materials to complete this thesis

Finally, I must express my very profound gratitude to my parents and to my wife for providing me with unfailing support and continuous encouragement

throughout my years of study and through the process of researching and writing this thesis This accomplishment would not have been possible without them

Thank you

Nguyen Ngoc Minh

Excutive summary

As a member of the operation department, after analyzing the report of Voice

Of Customer (VOC), I noticed the number of customers complaining about the service quality at CGV movie theaters is increasing, always keeping on 20% of total customer contact to CGV As a business in the entertainment service industry, this greatly

affects the image and brand awareness of the company which might cause losing customers, the company cannot achieve revenue and profit targets The customer complains about the quality of service comes from many problems, but the most important problem is the professionalism and service attitude of employees because the company is lacking training programs resulting in employees losing mindset as well as lack of soft skills in customer service To solve this problem, a number of solutions will also be launched with the aim of creating training programs as well as supporting cinemas with plans to improve qualifications and skills for employees at a cost appropriate to the current financial situation of the company which saves the cost

of training compared with the current

Contents

I Introduction 6

1.1 Company background 6

1.2 Market overview 7

II Problem identification 8

2.1 Symptoms & evidence 8

2.2 Initial cause & effect map 11

2.2.1 Qualitative research 11

2.2.2 External qualitative research 13

2.2.3 Internal qualitative research 15

2.3 Updated Cause – Effect maps 18

2.4 Potential central problem – Final Cause – Effects map 19

III Problem justification 22

3.1 Problem definition 22

3.2 Problem existence 22

3.3 Problem importance 24

IV Causes analysis 25

V Alternative solutions & Implementation plan 28

5.1 Apply compulsory practical coaching for trainers at cinemas – Train the trainer solutions 28

5.2 Conducting training course with external experts or professional trainers. 30

5.3 Establish Task Force Training Team 32

VI Supporting information 36

6.1 Interview guide 36

6.1.1 External interview guide 36

6.1.2 Internal interview guide 38

6.2 Sumary of qualitative research 40

6.2.1 Summary of finding from external qualitative research 40

6.2.2 Summary of finding from internal qualitative research 52

6.3 Summary of quantitative research 61

6.4 Questionnaire s of quantitative research 64

6.5 External expert training 66

6.5.1 Customer service excellence training course 66

6.5.2 Proactive customer service training course 67

6.6 Detail comparison cost of TFT plan 67

6.6.1 Current cost of training for a new cinema 67

6.6.2 Task force team cost 68

6.6.3 New trainer of University training schedule 69

6.6.4 Task force team re-training schedule 70

Reference 72

I Introduction

1.1 Company background

CJ CGV Viet Nam is one of the most successful investments in the overseas market of CJ Group Korea CJ Group is the ninth largest group (Chaebol) in Korea which has invested in 21 countries around the world CJ CGV is the third largest cinema in the world and Korea's biggest cinema with 50% market share and the

second-largest operator of joint venture IMAX screen in China just behind Wanda Cinema CJ CGV also has received the Best Cinema Brand award in 7 consecutive years in Korea CGV stands for “Culture, Great, Vital”, which is introduced Korea’s first cultureplex: an exciting venue with food, event programs, shopping experience and ultra-premium auditoriums

CJ CGV Viet Nam is formed from Megastar which is established in Feb 2005 In August 2011, CJ Group acquired 80% stake in Envoy Media Partners, a British

company, which is the founder of Megastar After the acquisition, they change the name to CGV from Jan 2014 CJ CGV Viet Nam is the largest film distributor and cinema operator in Vietnam and also one of the major media companies with its media sales business CJ CGV Viet Nam offers product and service with the vision “Beyond cinema” tailored specifically to Vietnamese customers There are many various

screening halls such as general hall, Gold Class (premium movie), L’amour hall for watching films on beds, special 4DX hall with five-sense experience screening hall and an IMAX hall with ultra-large screen digital screening hall with a laser screening system In film distribution field, CJ CGV Viet Nam almost has been exclusive

distribution of newest Hollywood blockbusters to serve customer’s demand

Under the leadership of the head of CJ CGV Viet Nam - Mr Sim Boom Jeom, CGV has achieved successes, for instance, CGV Viet Nam ranks as the number one of cinema operator and film distributor with more than 60 cinemas across the country, 45% of box office sales and 65% of distribution In 2017, CJ Group decided to invest more $200 million to open 12-15 new cinemas/year until 2020 (cost $4 - $7

million/new cinema) In May 2018: thanks to the efforts in communication and

marketing of “Avenger: The Infinity War” in Vietnam, CGV broke the record for the highest performance when it attracted 6 million admissions, earning $10 million in

ticket sales(1) In addition to business, CJ CGV Viet Nam is also very interested in developing the Vietnamese film market CGV activities are contributing to Vietnam’s cinema industry development through not only movies exhibition but also other

outreach programs such as Movies for Everyone, Toto's Filmmaking Class, Vietnam Film Festival in Korea, and Yxine

1.2 Market overview

According to CGV's internal performance report, CGV is the leader of the

cinema market with more than 45% market share in movie exhibition and more than 65% market share in film distribution in Vietnam The average growth rate of cinema business in the big cities in recent years is very attractive, up to 20 - 25% per year If the national box office revenue in 2008 is 100 billion VND, then by 2017 reached about 3,500 billion VND, approximated 150 million USD(1)

Currently, the cinema has become an important destination in the entertainment life of the Vietnamese According to a survey that CGV's marketing team made in

2017, 55% of Vietnamese come to the cinema once a month or more often This

makes the Vietnamese film market as a "dream market" for investors, especially

foreign investors Up until the beginning of December 2017, there was 630 cinema room in the whole country About 65% of the screening is owned by foreign

companies, which are dominated by two Korean conglomerates, CJ CGV and Lotte Cinema

CGV has more than 60 cinema complexes nationwide with more than 300

screens It is expected that in 2018, CGV will open six more cinemas Lotte Cinema, a

"countryman" of CGV, is also a fast developer with 36 cinemas across Vietnam and continue increasing in 2018 Apart from the two Korean companies, Galaxy Cinema (Thien Ngan Co., Ltd) with 14 cineplexes and BHD Cinema (Binh Hanh Dan Co., Ltd

- BHD) with a smaller scale of 8 cinema complexes These companies are also having

a revolution to change the quality of service to have a competitive advantage to

involve in the race to expand market share According to unofficial sources, the

Wanda Group, China's largest entertainment corporation which has the second-largest number of cinemas in the world, is also targeting the Vietnamese market If this

source is really believable then the future cinema market will be even more attractive

in the race of the big players

It can be seen that the cinema market in Vietnam is growing quite fast as

businesses continue to expand to compete However, besides market competition by opening more new sites or investing in facilities or keep upgrading cinema rooms with higher technology, the service quality is also really focused Compared with the

service quality of the cinemas of ten years ago, it is possible to see customers are experiencing at a higher level of service as close to the quality of the major cinema markets such as America or Korea

II Problem identification

2.1 Symptoms & evidence

3rd Quarter -2017 Channel Facebook Phone Email Total Percentage Last

Quarter vs LQ

4th Quarter -2017 Channel Facebook Phone Email Total Percentage Last

Quarter vs LQ

1st Quarter-2018 Channel Facebook Phone Email Total Percentage Last

Quarter vs LQ

2nd Quarter-2018 Channel Facebook Phone Email Total Percentage Last

Quarter vs LQ

Figure 1: Voice of Customer in 4 recent quarters by channels

(Source: CGV VOC report)

Figure 2 –Voice of customer in 1 year from July 2017 to June 2018

(Source: CGV VOC report)

CGV Customer Service Center is the main channel where customers can

contact to get support about information related to CGV and can reflect on the quality

of service through many channels such as social network CGV Fan page, email or call center Through the analysis of data and the chart above, it can be seen that there was

a increment of complaint in the total Voice Of Customer (VOC) from July 2017 to June 2018 with 20% average ratio

Overall, the number of cases which customers complained about the service quality of CGV increased slightly from 5,286 cases in the third quarter 2017 to 5,695

in the fourth quarter same year with an increased rate of 8% By the first quarter of

2018, this is the time of Tet holidays, so there is a significant growth in total VOC that customer service center received when the total number of customers complain about the quality of service increased 16% from 5,695 cases to 6,621 cases and accounted for 19% of total VOCs Furthermore, the total number of complaints reached the peak

in the over a year at 22% of total VOCs in the second quarter of 2018, with a 19% increment compared with the previous quarter As a result, the total number of

customer complaints about service quality increased steadily in the 4 continuous quarters, next quarter kept higher than the previous quarter, and maintaining an

average of 20% of total VOC was a clear indication of decrement in CGV's services quality

3rd Quarter -2017 4th Quarter -2017 1st Quarter-2018 2nd Quarter-2018

Voice of customer in 1 year from July 2017 to June 2018

Complaints Inquiries

It affects to customer satisfaction and leads to customers could leave CGV brand, made the sales sharply decrease Customer service quality is defined as an assessment of how well a service is provided meet customer expectations (2) Business service operators often evaluate the customer service quality provided to their

customers in order to improve their service, to exactly identify problems and to better achievement of repurchase loyalty which represents for customer’ satisfaction

On the other hand, service quality is also noted as the comparison between expectations of customers about the service and performance of the company(3) The higher the performance represented, the higher expectations are fulfilled Especially for service enterprises such as CGV, the quality of service is the overall assessment of results from comparing the company's performance with the customer's expectations

of how firms in that industry should perform(3) CGV is a big company in the movie exhibition industry, therefore, service quality is always the core factor as well as one

of the competitive advantages that help CGV holding the market leader position However, the increase in the ratio of complaint about the quality of service at CGV is

a sign that CGV gradually loses its competitive advantage It also leads to customers could leave CGV as well as the company loses its revenue by CGV is no longer

trusted by customers

Since service is intangible, enterprises faced with difficult to understand how customer evaluate their service quality Most of the evaluation of customer base on the experience the service Unlike tangible products, the consumers fewer cues to

evaluate(4) Service quality problem are no longer the sole concern of service

companies Many firms realized that their offering may be partly a tangle product and partly intangible service(5) Improving service quality at CGV is one of the very

important mission because CGV is a company whose main product is the service that brings the cinema experience to customers In addition, there are many competitors in the market which can have many advantages over CGV in terms of price, location, brand identity, etc Therefore, service quality that satisfies customers is very important

to encourage them to revisit and to earn their loyalty so CGV should seriously pay attention to this

2.2 Initial cause & effect map

Figure 3 - Initial cause and effect map

2.2.1 Qualitative research

The qualitative research method is a common way in market research to help researcher develop quality measures as well as quality improvement efforts In this paper, the in-depth interview method is used to understand customer satisfaction through an interview guide with the unstructured format and open-ended questions that can obtain insights from CGV customers about its customer service As we

known, in-depth interview is used to interview a small number of respondents to explore their perspectives on a particular idea, situation and about any changes they perceive in themselves as a result of their involvement in the program Based on this thing, I conduct in-depth interview follow the below process to get as many insights as possible

Process for Conducting In-Depth Interviews:

• Plan

• Develop Instruments

• Pilot and Draft with team

• Collect Data

• Analyze Data

• Summary Finding and Classify in category

In this study, I realized that the increasing of customer complaints was due to the quality of CGV's services The CGV service problem is provided by the entire staff of CGV to the Customer Therefore, I decided to do in-depth interviews with both sides including the customers and the company' employee or in other words external qualitative research and internal qualitative research to better understand both sides of the symptom

External qualitative research is conducted to understand attitudes and insights

of customer Therefore, I selected 3 randomly CGV frequency customers to find out about the customer's evaluation of the CGV current service quality The questions are used for external quality research separated into five main concerns, namely:

employee attitude; facilities; food & beverage; promotion and booking online I

developed these topics to many questions and used in the in-depth interview

Moreover, through the attitude and behavior of the respondent, I develop more

questions by probes and prompt method to exploit good and bad things about the service of CGV

On the other hand, CGV employees who are managers will also be invited to carry out an internal qualitative research I will focus on 4 managers as Operation Manager, 3 Regional Managers of South East, South West and Mekong region to conduct in-depth interviews with the believe that these managers have sufficient experience and expert knowledge to help me the exact diagnosis of the symptoms and problems which I am researching

With the in-depth interview method, I had to record the conversation during 12-20 minutes I chose the suitable venue for the interviews: a coffee shop or at the office and proceeded within 3 days from August 3rd to 6th, 2018 The results of these interviews will be compiled into transcripts (Part VII Supporting information)

Finally, based on the respondents’ answers which are recorded in the transcript, I collect the critical coding and conduct to classify these into different categories Last

step I finalize the list of the questionnaire for quantitative research and do the survey with our sampling in chosen places

2.2.2 External qualitative research

1 Employee attitude and

skills

1.1 Non-flexible problem solving 1.2 Few employees lack soft skills 1.3 Respond slowly

1.4 Attitude is not good, not friendly when customer ask 1.6

Unhappy to customer mistake 1.5 Don’t understand customer’s feeling

2 Facilities 2.1 Old facility, not consistent among new and old cinemas

3 Food and Beverage 3.1 Confused with combo options

3.2 Does not clarify the price or the size

4 Promotion programs 4.1 Few promotion programs make confusing

4.2 Lack of information about promotion programs 4.3 Should communicating promotion program widely

5 Booking online 5.1 Automatic ticket machine broken

5.2 Problem of connection among booking page and payment page

6 Others 6.1 Customer service quality not consistent

6.2 Provide special products to all cinemas 6.3 Should reduce price

Table 2: Summary of external finding issues by categories

Based on the report of customer service department about customer’s

complains and CGV’s services, there are five critical objects which effect on

customer’s satisfy are employee attitude, promotion programs, online booking service, food and drink, and facilities In order to understand deeply customer’s feeling about these objects, an in-depth interview has been conducted in form of structured

interview

As a result of the interview, it is found a number of reasons that customers are not satisfied with the quality of CGV services based on 5 main issues that customers are most concerned about It will begin with non-human factors such as the ticketing system The customers feel very inconvenient when the system of CGV error during

the booking process After the booking and choosing the F&B products on CGV website or mobile application, it will be transferred to the payment step, but at this step, after entering the information for the payment, there is no booking number sent

to customers while the system still charged money of customer At that time,

customers contacted the customer service center, they were informed that their

transaction was unsuccessful due to the disconnection between the payment system and the ticket booking system, so CGV would proceed reimbursement for them

However, according to the regulations of the banks, the time to refund for payment made by domestic cards (ATM) from 3 to 7 days and international payment cards (Visa/Master) from 30 to 45 days which is the main reason that customers feel

dissatisfied about CGV's booking system In addition, CGV has also implemented some automatic ticket machines in some cinemas, however, when customers

experiencing this service, they sometimes faced with problems which the machine could not print out the ticket because the machine could not find the ticket code However, in the case of automatic ticket machines broken, the customers can still go

to the ticket counter to ask for tickets

Beside the unsatisfactory about the quality of facilities that customers have known the main reason for some cinemas had been operated long time ago, the issue

of F & B products are also discussed by the interviewees They argue that CGV is selling a lot of F & B products, however, the information about the products is not widely showed to the customer while they can only see on advertising TV screens with some of simple combos It is simple but when choosing these products, the staff consult to up the size or change the taste or add more products with different prices, which make customers find it so difficult to make their choice One thing to keep in mind is that there are some cases when customers purchased original products,

however, they received up-selling did by staff without asking the customers This also relates to the staff's working skills, which are affected by the training that I will

analyze more clearly in below

According to customers, having multiple promotions combined with other brands not only bring more benefits to customers but also brings many troubles The customers feel that there are too many promotions which run at the same time

overlapping, so it is difficult for customers to gain information This program has not

ended while the others have started with the same terms & conditions such as the program associated with Citibank Bank buy 2 tickets get 1 free CGV combo running along with Shinhanbank program that buy 1 ticket get 1 ticket free

2.2.3 Internal qualitative research

1 Employee attitude and

2 Facilities 2.1 Old facility, not consistent among new and old cinemas (2

respondent) 2.2 Lack of renovation and maintenance because of high cost (3 respondent)

3 Food and Beverage 3.1 Too many options make customer confused (2 respondents)

3.2 Lack of information about Concession product (1 respondents) 3.3 Unclear price among up-selling combo and original combo

4 Promotion programs 4.1 There are many promotion programs (2 respondent)

4.2 Non-selective of 3rd party cooperation programs

5 Booking online 5.1 Problem of connection among booking page and payment page

(3 respondent) 5.2 Lack of collaboration between CGV & partner

Table 2: Summary of internal finding issues by categories

In addition to interviewing regular CGV's customers to find out the cause of high complaint An internal short interview with Operation Manager and three

Regional Cinema Managers including Mekong, South East and South West regions were also held to find out more about internal causes The issue that these four

managers are particularly concerned about is the customer service attitude of the staffs Most of their comments concur that the degradation of facilities is dependent on the budget of investment About one-fifth of cinemas have been operated for more than 10 years, therefore, the facilities of these cinemas have deteriorated However,

the cost of maintenance and renovation is quite high, so overcoming the problem of facilities is also a difficult problem to solve for a long time, It not only need

concentrate financial resources but also need a specific plan in long term According

to the information provided by Operation Manager, CGV is also planning to renovate these cinemas in the future, so the facility issue may also could be ignored

As for the food and beverage issues, the opinions of the managers also answer that CGV is currently implementing a diversification of product categories to open a wide range of customers Thus, there are many types of combo menus that are

applying as a result It leads to the fact that the more options which CGV provide for customers, the more information they have to receive, especially in the up-selling products in Concession Managers described that with a simple original combo,

customers have more six choices for up-selling with six different prices and CGV is currently selling around 5 original combos As a result, if you are not a frequent

customer of CGV's concession products, 30 options with 30 different prices will make you get in confusing However, if the staff has good consulting skills and also CGV can develop an information system that clearly explains the options, managers all believe the problem can be solved in a short time

Similarly, the promotions are also being implemented by CGV in order to bring many benefits to customers However, the coordination with too many partners such

as banks, payment applications, etc without good selection of the applying conditions leads to overlap It does not only confuse the customer but also the CGV staff who are not well informed by the management team Therefore, they are not able to provide accurate consultation to the customer As a result, when customers receive wrong information from staff and do not have an official channel to look up information, the feeling of dissatisfaction about the promotion programs is obvious With the question

of how to deal with this problem, the managers also said that CGV is developing the information system on the website as well as the mobile phone application so that customers can look up information similar to the way solving the lack of information

on concession products as mentioned in above

Accordingly to managers, the main reasons of booking system often get in error is come from poor connection between CGV booking page and payment page of

3rd party; and also come the automatic ticket machine sometime get broken However,

the booking ticket online system is being upgraded and monitored by CGV to enhance the quality of connection to avoid complaining in the future The issue come from the auto ticket machine broken related to maintenance issue similarly with the facility mentioned above It happens often because of the lack of maintenance that the main reason also comes from the high cost of regular maintenance In addition, automatic ticket machines have been launched three years ago so this the beginning of

degradation is seeable

It can be seen that, Among the factors that customers complain about, the service attitude of employees seems to be the most important, which is the decisive factor for CGV's overall service quality However, the number of cases that customers complaints about the qualification of staff has been increasing dramatically To

explain for this, managers analyzed that the cause comes from the lack of skills

needed to serve the customer They also provide specific examples, such as when customers make requests for employees, response process was done slowly or rigidly because staffs are not confident of process knowledge In addition, staffs are the representative of CGV, to satisfy the customer, staffs should bring the customer the friendly and welcome feeling However, it is the thing is missing in some CGV

employees Due to the fact that personnel policy is totally dependent on the CJ group, CGV cannot develop a suitable human resource policy for Vietnam which leads to creating high working pressures, lack of benefit, uncompetitive salary and

unsuitability staff evaluation system

As a result, from the information obtained after the interview with the

managers, we can see that the problems are directly affecting the service quality at CGV, especially the human resource and training staff However, through qualitative research, it is not yet known whether the underlying causes or the consequences of these problems could affect to the company performance, therefore, further exploring through quantitative research to identify the potential problem is a necessity

2.3 Updated cause & effect maps

Figure 4 - Updated cause and effect map

According to Goodman(6) , the three main causes of customer dissatisfaction lead to complaints are individual employee caused, company or retailer product and process caused Customer dissatisfaction because of employees or products causes, the qualitative research above showed as well as a research of Bell(7) studied In addition,

it is possible to see the process as one of the factors that may make customers

dissatisfaction with the quality of service that a business supply Customer evaluates the complaint processing process of a business through the manner in which it handles complaints(8) Therefore, if a complaint handling process is not really clear and

flexible, the ratio of complaints from customers may increase

The reason for bad employee attitude also comes from the employee's

perception of the situation as he or she facing(9) A Broadbent(10) research pointed that, due to limited capacity, a person must process information selectively and thus, when presented with information from two different channels, an individual's process of sensing what he or she believes to be the best fit However, defensive perception creates a barrier within the limits of external stimuli that go through the cognitive process when it is not consistent with one's beliefs, attitudes, motivations, etc

Therefore when an individual limit the processing of external stimuli by choosing to explain what he or she sees based on beliefs, experiences, or attitudes that may lead to

the wrong decision due to lack of solving problem skill In a simpler way to explain,

an employee who is lacking in skills will have poor awareness and will cause

customer dissatisfaction

In order to have a good quality of service, enterprises must ensure that 6

criteria are well implemented such as attitudes and behavior; professionalism and skills; accessibility and flexibility; reliability and trustworthiness; recovery; reputation and credibility(11) In addition, an effective complaint handling process can have a significant impact on customer retention rates, avoid the spread of crisis, and improve bottom-line performance(12) Therefore, to create a customer complaint handling process smoothly, CGV also needs well-trained staffs to perform this process

efficiently and flexibly in each case

In addition, evaluations that do not match the reality of the ability also affect the self-esteem of the employee and make the employee become unfriendly (11) In fact, the CGV rating system mentioned above is highly dependent on the CJ group policy, so the actual assessment of employee competence will not be possible with the correct ratio However, it can still be acceptable according to managers

2.4 Potential central problem – Final Cause & Effects map

Figure 5 – Final cause-effect map

For variables which researched in the preceding sections, non-human factors such as booking ticket systems, facilities, promotion programs or food and beverage can be addressed depending on the company financial situation, the change in policies, strategies or customer guidance as suggested by the managers It can be seen, the human factor is the decisive factor need to solve base on the management view

Main causes which customers complain about employee service attitude are unfriendly staff, slow in response to customer requests, lack of necessary service skills and not flexible in handling complaints All these causes, as managers have reflected, are due to the fact that staff at the cinemas are missing training courses to be coached the skills needed in the service industry It can be seen that the lack of training is a potential problem need to solve to improve the staff qualification at CGV thereby enhancing the image and quality of service at CGV

Training influences the performance of employees on a regular basis, leading to

a reduction in the overall performance of the organization There are many companies want to build a high-performance workforce, however, in order to implement, the company has to have good training courses to make their employee more ability to become a member in a high-performance workforce Moreover, when each employee cannot achieve their goals, of course, the goals of the organization will not be

achieved Therefore, CGV's lack of training not only affects the percentage of

customers complaining but also directly affects the company's performance

Implementation of a performance measurement system will involve the entire company at every level(13) In seeking the problems associated with the

implementation, it has been researched that the appraisal system is only deployed training at the management level The objectives of the teams, departments or

moreover, the goals of the company have been decided by the heads while the

employees are only allocated these criteria to input to the evaluation system

Furthermore, these goals are not yet defined clearly while using the overall goal of the team or department to assess individually

For a clear analysis, I base on the information provided by the regional

managers, which stems from the change of the management system in June 2017, leads to employees needing the training to adapt with the new system to change the operation However, a series of standard operating processes (SOP) have not been

changed to fit the new system, so employees might find them hard to work with out of date processes In addition, the training content has not caught up with the change of the system upgrading and the lack of training content required more practical skills In fact, University still has training programs, but these programs are theoretical contents

so when applying to reality, there are still many shortcomings Regional managers said that employees are in desperate need of a training program that can help them catch up quickly, a program that requires learners after attending training can work well

On the other hand, CGV's turn over rate is quite high at over 90% for part-time employees and over 40% for full-time employees in 1 year, so the workforce is not stable For more specific, the personnel is constantly going in and out, but the training programs have not met the actual needs to help new employees have the knowledge and skills to work effectively The lack of training programs also causes the opposite effect of turn over rate because if employees are not well trained, they will feel the company does not support to be able to work well at the company

The potential problem is easily seen originating from many main reasons is a lack of training Many reasons cause to lack of training and lack of training are also causes of a variety of other problems According to Mr Park Hye Sung, the lack of training for employees leads to employees feeling unconnected with the company, a very important factor in the aim of employee engagement in human resource

management It is a reduction in the spirit of doing the work of employees when they feel "lost", lack of support from the company, which leads to their working attitude also becomes worse, unfriendly when approaching customers Moreover, the lack of training leads to a range of other factors such as employees will not be equipped with soft skills to be able to take good customer care, which will make them lack flexibility

in how to handle problems, which makes customers feel the problem-solving process

is unprofessional

With the reasons analyzed, when employees are not trained to have good skills and knowledge, the company cannot get a high-performance workforce, which all companies are looking forward to having And with an inefficient workforce, it is difficult for the company to have a good performance to achieve the goals that it has set

III Problem justification

3.1 Problem definition

Training is one of the methods to increase the competitive advantage for

enterprises(14), in particular, CGV with competitive advantages is the quality of its services Training is defined as a coaching and guiding process in an effort supposes a better attitude in employees(15) or deliberate intervention to make an individual or organization a better person or authority(16) It also identified as a planned learning experience designed to bring about permanent change in an individual's knowledge or skills(17) More specific, training refers to the teaching of practical skills, occupations

or knowledge related to a specific field, so that people can learn to master the

knowledge, skills and occupations in a systematic way and prepares for the trainee to adapt to life and the ability to take on a certain job Training concept usually means narrower than the education concept, often training refers to the later stage, when a person has reached a certain age, have a certain level There are many types of

training: basic training and intensive training, professional training and vocational training, re-training, distance training, self-training

At CGV, training is also one of the mandatory processes that an employee who starts working at CGV must attend to gain knowledge of the company's works and culture as well as processes and other regulations This process has been defined as the most effective way to help employees quickly integrate into the company

environment as well as embark on the most productive tasks

3.2 Problem existence

In this survey, I did the qualitative data collection methods in advance to get perspectives of customers as well as managers about CGV service and identify them into the category Then, I conduct with the quantitative and use non-probability

sampling technique with structured data collection instruments to create list of

questionnaires Findings of this method are usually easy to measure, summarize, compare and generalize Besides choosing the sample, I used the convenience

sampling (also known as availability sampling) is a specific type of non-probability sampling method that relies on data collection from CGV employees who are

conveniently available to participate in study which can be applied by asking

randomly employee at the CGV cinemas As a result, I can collect easily data from these employees for the research

My finding from qualitative research will be transferred and measured by quantitative research It helps me find out the accurate problem about the problem existence Questionnaires will be designed to total around 15 questions and separated into 3 parts: filter questions, demographic and main questions With filter question, I easily check customer‘s answers is reliable or not Next step, I do the demographic question to get their information about their age, marriage status, and so on The last part of my questionnaire is the nucleus, I develop the remark question to verify the answers then the respondents can move to the next step if the last answer exists In this research, I used the verbal rating scale for each question (from strongly agree to strongly disagree) It takes 10-15 minutes to complete the survey by offline at ticket box of CGV In addition, the type of questionnaire is self-completion I choose this kind because of some below advantages:

• Simple and Inexpensive

• Customer in Control

• Avoids Bias

With the question of whether the company provided enough training for

employees, 50% employee disagreed, 11% of them strongly disagreed, indicating that employees were feeling inadequate in training that could help them to increase their knowledge and skills to match the job requirement It is shown that CGV is lacking in focus for training In addition, a total of 28% employees responded that the training courses that CGV has organized are not consistent with what they are expected So, the training is not only just enough but also must be true to the actual employees demand are needed

Based on interview information from the executives, CGV's current training program for the new employee of the upcoming cinemas is still unreasonable,

especially cinemas in the provinces where are not HCMC or Hanoi Specifically, according to the current process, a newcomer employee will be trained at CGV

University campus (located in HCM and Ha Noi) within one week by theoretical content After that, he/she will be assigned to one of the cinemas for being coached in

three weeks practically and then to take over their new upcoming cinema for opening preparation With a training process designed like this, an employee will have to learn too much theory in the first week without practice, it leads to knowledge that is not immediately applicable will be difficult to comprehend Subsequently, when they are divided into rehearsal clusters, they will be coached by current employees of cinemas

It could be a great risk that if the facilitators is a qualified person with a wide range of knowledge and experience working in accordance with the standard procedures, the learners will acquire the correctness of the implementation Whereas, if the quality of the facilitators have problematics, for example, the wrong mindset or not working follow the standard procedure, etc It will lead the trainee to learn and follow the wrong things

In fact, new employees, after participating in the current training process and starting to operate their cinemas, might find it hard to operate the cinema effectively and smoothly The training time is too short, the training contents are not standardized and training cannot provide what the participants really need in their work leads to trainee feel seem acquired nothing after training In addition, the cost of training is really high, especially in theaters located in areas where there has been no CGV

cinema before Local employees who are recruited will have to travel to major cities where the University - CGV training center and big cinemas located, which costs plenty of transportation and business trip per diem To be more specific, a typical CGV cinema will consist of at least 7 full-time employees and about 25-30 part-time employees, therefore, training cost for around 37 people during one month of city life

is a wasteful issue that needs to be concerned In addition, efforts are not as effective

as expected because the conditions of cinemas located in big cities are different

compared with cinemas in the provinces where the staff is actually working

3.3 Problem importance

When dissatisfied, customers have the option of exiting (e.g., going to a

competitor) or voicing their complaints in an attempt to receive retribution An

increase in overall customer satisfaction should decrease the incidence of complaints, increased overall customer satisfaction should also increase customer loyalty(18) Therefore, if the customer complaint ratio is increasing, CGV could face the fact that the customer will leave the brand and as the result in a serious decline in revenue In

addition, the quality of service is one of the competitive advantages of CGV in the market, if the lack of training is not resolved thoroughly, CGV may be to lose this competitive advantage

Beside employees have to be trained, the content of training course have its importance to reach the effectiveness Training effectiveness usually is determined by assessing some combination of the criteria such as four levels of training outcomes: trainees' reactions to the program content and training process (reaction); knowledge

or skill acquisition (learning); behavior change (behavior); and improvements in tangible individual or organizational outcomes such as turnover, accidents, or

productivity (results)(19) Therefore, if the training contents of CGV is not completed perfectly, of course, the implementation of training courses will encounter many difficulties and affect the acquisition of knowledge, change the behavior of

employees

If staff not performing well, of course, they need the training to improve The underlying assumption, rarely verified, is that the reason for any problems with the performance of employees is that they do not know something they should know or they lack some skills they should have Certainly, an employee who lacks essential job-related knowledge or skill probably is not a high-performing employee But this is not the only, or even the most likely, the reason he or she might not be performing well Lack of knowledge or skill is one of these factors, although it is the only one that training can address (20)

IV Causes analysis

As analyzed above, the reasons for increasing customer complaints in CGV cinemas come from five main causes: Employee attitude and skills; Facilities; Food and Beverage; Promotion programs; Online booking For facilities cause, CGV is also planning to improve it in the near future as an investment to renovate cinemas which have been operated for 5 years or more The implementation of this renovation is also

in charge by the project department, so as employees of the operation department, we only play a role to reflect on the quality of the facilities and follow the renovation progress The cause that customers complain about the quality of facilities depends on the financial situation of the company as well as the implementation by the project department, so it will be ignored in this paper Similarly, for the online booking

system cause, the IT department is taking the main responsibility to manage this

system According to the share from the regional managers during the interview, they also raised this issue to the IT department and received feedback that IT team will research and invest more in infrastructure to upgrade the online booking system, especially during peak periods Therefore, improving the online booking system is also not under the authority of the operation department, it also needs to terminate for final cause-effect map

With customers complaining about promotions, as mentioned above, the

promotions are also being implemented by CGV in order to bring many benefits to customers However, the coordination with too many partners such as banks, payment applications, etc without good selection of the applying conditions leads to overlap It does not only confuse the customer but also the CGV staff who are not well informed

by the management team Therefore, they are not able to provide accurate consultation

to the customer As a result, when customers receive wrong information from staff and do not have an official channel to look up information, the feeling of

dissatisfaction about the promotion programs is obvious This reason also comes from the fact that employees do not have the skills to receive good information and the process conveys promotion information from Head office to cinemas is not really perfect According to the reflection from Operation manager through the interview, the promotion information is usually sent to cinemas managers via email with the guidelines, but the lack of inspection that the information received by the recipient correct or not Therefore, there is a need to have a part as an intermediary to receive information from departments with promotions such as Cinema Marketing, Film Distribution, Group Sales, etc and send information to theaters, and then receive feedback from questions to clarify the program's terms and mechanics However, in order to set up this process with the role of the operating team, we will collect the information and must rely on support from the relevant departments, especially the Internal Control department, who will modify the transfer process to theaters, thus, in this thesis, I will not mention promotions cause anymore

As for the food and beverage issues, the opinions of the managers also answer that CGV is currently implementing a diversification of product categories to open a wide range of customers Thus, there are many types of combo menus that are

applying as a result It leads to the fact that the more options which CGV provide for customers, the more information they have to receive, especially in the up-selling products in Concession Managers described that with a simple original combo,

customers have more six choices for up-selling with six different prices and CGV is currently selling around 5 original combos As a result, if you are not a frequent

customer of CGV's concession products, 30 options with 30 different prices will make you get in confusing However, if the staff has good consulting skills and also CGV can develop an information system that clearly explains the options, managers all believe the problem can be solved in a short time The point that customer complain about food and beverage products is they are not provided full information which can

be solved by training for staffs

It can be seen that if staff training is focused by CGV company, it can solve a number of issues such as upgrading the grievance solving processes also equipping staff with the skills needed for the jobs to provide for customers a good service

experience Moreover, the training also creates motivation for employees(19), helping them to feel respected by the company to develop themselves, to take full advantage

of their abilities so that they understand their importance with the company so they can change their thoughts, actions, and attitude to become better

Currently, the training programs for CGV is rather poor As mentioned above, CGV training department named CGV University which in collaboration with the human resources department, is responsible for planning and designing training

programs and training content for new staff However, in fact, these programs are still incomplete, especially after CGV upgrading its management system from June 2017 The upgrade of the management system has made all the operation processes changing requires knowledge content that the training program must change accordingly In addition, the CGV is missing crucial information channels, where training materials, guidelines, procedures, etc were attached, so that new employees after training can be reached in case need to supplement or revisit the knowledge that is needed

In addition, the maintaining of human resources is also important in order to ensure the quality of service However, CGV's manpower turn-over rate is quite high while reaching around 24% It leads to the unstable workforce which makes training difficult For example, the University's trainers, who are required really experienced in

cinema operation to design training programs, make the training contents but they are also newcomers, the most experienced member in University team has been working

at CGV for only 8 months Or in cinemas, there are many cases where former

employees who have real ability left the job while not recruiting new employees, so the on-job training process or transfer of work between old and new employees seem not to be done either “Ideally, job-skills, as well as safety and health, training should occur before the time of hiring and continue while working on the job site”.(21)

However, The failure to maintain a steady of human resources while the newcomers continued joining to make it difficult for the University to gather new staffs to carry out the training courses, especially in the provinces which far away So the training for new employees is handed over to the management team of the cinema in the form of on-job training As a result, when employees join in CGV, sometimes they are not trained properly with standards, they just only follow what the current employees do

V Alternative solutions & Implementation plan

For many causes as mentioned above, there are many solutions to tackle the lack of training problem at CJ CGV Vietnam company Based on the solutions found when researching the literature and the actual situation of the company, I have found solutions that I believe they are appropriate and applicable to the CJ CGV Viet Nam company

5.1 Apply compulsory practical coaching for trainers at cinemas – Train the trainer solutions

As mentioned above, the lack of training comes from a variety of reasons, including the reality that CJ CGV Viet Nam is having poor training contents and is lacking in effective training methods If CGV includes the wrong or unnecessary content or fail to teach the appropriate content, the quality of the training is

compromised and any potential impact on job performance is lessened Ideally, CJ CGV VIET NAM should design training content based on a careful task analysis once it determines that a performance problem is most likely the result of a knowledge

or skill deficiency (20) University team members will understand the job requirements

of each job position so that they can know employees are required what knowledge and skills to be able to design the appropriate training program To do this, University team members must be the ones who research the detail job of the cinema staff by

going to the cinemas and experiencing the daily work of the staff here Because most trainers are not graduates of programs specifically designed to train the trainers(22) Most beginning trainers are not graduates of programs specifically designed to train trainers To understand operation at cinemas, they need to observe an experienced trainer teach the course while they are preparing to deliver it and then attempt to teach

it to other employees in a manner similar to what they observed

Therefore, University team members will perform daily operations as an

employee of a cinema under the direction of an experienced Cinema Manager As a result, they will have an accurate analysis of what knowledge and skills needed for each position In addition, they will carry out work processes and find out if work processes are really consistent for employees to make improvements that simplify work for employees Besides learning as a staff at cinemas to improve the training content and make reasonable modifications to the standard operation process (SOP), the trainers of University also could develop themselves while training on the job at cinemas Based on the opinions of the managers, the University's trainers find their difficult to understand the operation of the cinemas because cinema is one of the most distinctive forms of business Nearly all University trainers are recruited from the outside so it is important to create the opportunity for them to understand that the working environment in movie theaters is the only way to solve the problem In other words, University trainers who want to train others must be the best trained (23) A two-month period is recommended for University staff to have on the job training in cinemas as this is also the probation time

Furthermore, the cost of this solution is almost nonexistent when University employees still go to work as a regular day, instead of having to work in the office with theoretical learning they will be coached by direct practical at cinemas In

addition to free of cost, trainers of the University will better understand the positions and mindset of the staff at the cinema and also can observe the method by which experienced trainers delivery the training content This will help to find a suitable approach to the various objects who will the trainee later Each learner will have a psychological understanding and different view on an issue(24) The selection of

instructional approaches depends on many criteria, including conditions of learning, content, and characteristics of the participants(22) For example, a full-time employee

who will need an approach and teaching method completely different to a part-time employee; or a floor supervisor will need to be instructed in a concise and less

macroscopic content than the position of assistant cinema manager; conversely, the training method for manager positions requires broad and management with greater vision

Under the current plan, 3 training positions will be recruited by the CGV

company, comprising 2 positions in the Head Office and 1 position in Ha Noi Office

in early 2019 A coaching process will be implemented for new trainers (please see details at part 6.5.3 Supporting information part) to help new member of University team have the opportunity to learn the detail task of each position at a cinema After this training period, new members of the University will officially begin their work as

a trainer who will conduct training courses for new staffs of CGV In addition, as mentioned above, the trainers who want to have effective training, they have to

develop quality materials according to practical needs and in accordance with the current work processes at CGV

5.2 Conducting training course with external experts or professional

trainers

Besides using trainers who are employees of CGV University, it is

recommended using external resources such as experts, professional trainers or known speakers to conduct specialized training courses The main participants in these training sessions will be cinemas' employees as well as University's trainers The reason for using training experts is because they have a broader and deeper knowledge better than the company's trainers, they may solve the problem in the different ways base on a wide range of their knowledge & experience Experts focus more on

well-recognizing signs that allow them to recall information blocks and have the ability to integrate and connect knowledge better.(25) As a result, professionals will be able to deliver more specialized content and be able to solve the problem of improving CGV employees' skills For example, an expert in customer service will transmit good content about related-customer service contents such as customer care or after-sales service, or give useful tips for implementing effective customer problems solving process Moreover, the invitation to professional experts to organize training courses

will create wide of training content which have high quality and increase the

attractiveness for participants

In addition to the benefits of diversifying and increasing the quality of training content or attracting learners, organizing training courses with experts is a great way

to help the company increase employee engagement which really crucial of HR

strategy(26) The benefits the company provides to its employees besides providing them with a good compensation and benefits policy such as high salary or providing a health care program; the training helps employees feel that company creates the

opportunities to develop themselves, improve their values by increasing their

knowledge and skills

However, inviting experts to conduct training courses for employees makes the company using a big cost which depends on the content or the level of participants who involved in training CGV Viet Nam should focus on providing training for cinemas employees as well as University' trainers who will become future leaders or trainers for next staff generation and part-time shift leaders To implement this, SMEI training center has been chosen for the proposal at a cost of 5,000,000 VND / full-time employee and 2,500,000 VND/part-time staff who will attend the training course as plan follow:

CGV University HCM

10/06/2019 - 11/06/2019

Training full time Employee in Ha Noi

Customer service

excellence

12 Cinema manager

SMEI Trainers

CGV University Ha Noi

13/06/2019 - 14/06/2019

Phase 2 Part-time training

Training part-time staff in Ha Noi

Proactive

customer service 30

Part-time shift Leader

SMEI Trainers

University Ha Noi

17/06/2019- 18/06/2019

Training part-time staff in HCM

Proactive

customer service 40

Part-time shift Leader

SMEI Trainers

University HCM

20/06/2019 - 21/06/2019

Table 3 - Customer service training plan

Summer is an extremely important period for the cinema business model, so the training plan is for full-time employees as well as part-time staff which conducted before summer is reasonable because the staff will be equipped with the knowledge and skills necessary to apply in practice for the cinema during the period of serving the largest number of customers in the year, accounting for about 30- 40% of the total

As a result, two in-depth customer care skills programs will be offered to those with the detailed contents (covered in supporting information 6.5) and a cost as bellow

No Description Price Amount Unit Total

Table 4 – Estimated cost of customer service training

5.3 Establish Task Force Training Team

As discussed above, CGV's training programs for cinema staff are tend toward theoretical, new staffs have fewer opportunities in practicing but they have started working To solve this, an idea of establishing a team that supports training with a background in work knowledge and high skills is called the training task force team considered as a viable option “In the high-tech, fast-growth environment, “ad

hocracy” through teams or task forces is a standard operating procedure’’(27), a team of veteran employees who have good experience and knowledge will make the training more effective In the new work culture, we often establish task force teams that cross conventional lines in organizations Furthermore, the make-up of such problem-

solving groups usually cuts across status ranks and organizational levels The concern

is to gather personnel with the expertise and diversity to provide a variety of

perspectives, such as from marketing, manufacturing and management backgrounds or disciplines This is when team building is most essential for the maximum

contribution of each member’s potential towards group tasks and goals Task force team is a small group, usually four to twelve people, that brings together a specific set

of skills to accomplish a short-term task It may be called a "project team" or a

"working group" Individuals are selected for their expertise, their history in the organization, and their interest in the project(28)

A proposal requires the establishment of a task force team (TFT) for each region including North East, North West, Central, South East, South West, and the Mekong with role and responsibility as:

- Training and coaching new team members as well as current staff soft skills and knowledge by on the job training one to one method to perform their job well

- Support management team set up new cinema in CGV to make sure all standards and procedures are in place

- Build the cinema management team who are able to run the operation

smoothly and effectively

- New external FTs & PTs are lacking

of time for training ( PT: < 2 weeks

& FT: < 3 weeks)

- University can only take one session

at a time (theory part: in which PT:

02 days & FT: 07 days)

- New external FTs & PTs could be train about theory and practical in well process and gotten enough information and skills

- TFT will spend maximum 2 months for a site opening project It will be enough for transferring knowledge and practical experiences to new site management team

Cost - High cost for gathering all FTs &

PTs staffs in a training at nearby cities (~ 288 million/ site)

- Low investment, more return (173,4 million/ site) – Please refer the appendix of cost comparison

Trainer/

Training

Tools/

Materials

- Trainers (site supervisors/

managers) are almost not qualified

of training skills

- University has limited number of members to go along many sites, also all training sessions

- Training materials are still in less practical elements

- TFT members would be trained by University and co-facilitators

- TFT members will conduct trainings at sites during the project time

- Training materials can be conducted

- In short term (within 02 months), the TFT could do training and tracking at the same time, make sure all in right process and standard - Please refer the ap5pendix of certification & follow

up process

Table 5 - Comparison between current and new process

Basically, the role of management team at a movie theater not also implement routine operation including manage part-time staff but also take responsibility for five specific tasks, including Programming (scheduling movie sessions), LAM (doing Local Area Marketing), CS (maintaining and improving Customer Service),

Accounting (finance settlement), Concession (responsible for all F & B issues)

Therefore, to implement the TFT deployment plan for the cinemas, the structure of the task force team should be:

Figure 6 - Task Force Team structure

They are required to be Floor Supervisor and above at cinema in each region This team will be directly reported to OM/ RCM In project time, they will take full responsibility for new site opening, whereas, in non-project period, they will support for function training & management/ QA & QC according to the request or subject to business requirements The benefit of those involved in TFT is that they will be

retrained in knowledge and soft skills to improve themselves, furthermore, their

presence in the TFT team will be a big advantage for them in the process year-end assessment to get promotion In addition, if they want to stop working as a facilitator

in TFT, they will be given the priority to choose a cinema they want to work stably with a higher position

To pilot for this project, it will be selected to take part in the process of setting

up a TFT team in the South East region, where a cinema will be opened in Binh Phuoc province without any CGV cinemas have existed before If the pilot has its

effectiveness after the assessment process, it will be applied to the remaining areas as mentioned above More specifically, a notice will be sent to all employees who are working as a member in the management team at seven cinemas in the Central region for applying Candidates will be interviewed by the Central Regional Cinema

Manager to select those who have the ability to work and have a good mindset After that, they will be retrained to consolidate their knowledge and begin the task of

supporting the CGV Binh Phuoc To summarize, a schedule for implementing the project would be

Project TFT of CGV Binh Phuoc

Project Manager: Mr Vuong The Phong – South East RCM

Regional: South East

Opening day: 21-Jul-19

DURA TION (Days)

Collaborate with University, Operation Support

University

4 Opening preparation TFT 24-Jun 28 21-Jul Collaboration with

Operation Support

Table 6 - Project implementation schedule

In the steps above, the TFT re-training/coaching period is the most important process as it acts as a standard for the training of new employees Therefore, a specific timetable for this process will be applied (please see at section 6.5.3 of Supporting information part) within 3 weeks During this time, TFT members will be

retrained/coached all of their workflow knowledge in the most standard way to

become quality facilitators who have the ability to in charge of on the job training for new members of management as well as part-time staffs of new cinema

VI Supporting information

6.1 Interview guide

6.1.1 External interview guide

There are nine critical questions based on five above objects in the

questionnaire for an in-depth interview:

Q0: Could you tell me how often do you go to the cinema?

Q1: What is your overall feeling or your opinion about CGV’s service quality? Q2: What do you think about the attitude of CGV’s service staff?

Q3: How do you feel about CGV’s food and beverage quality?

Q4: How do you feel about CGV’s promotion programs?

Q5: How do you feel about online booking service of CGV?

Q6: How do you feel about the infrastructure of CGV?

Q7: Do you have any idea to help CGV improve service quality to increase customer’s satisfaction?

Q8: Could you rank the quality of cinema brand that you have used?

The first question (Q0) aimed to verify the quality of respondent because the interview uses a convenient sampling method Continuously, (Q1) is a warm-up

question which makes respondents express general opinions about CGV’s service before going deeper into the next question from (Q2) to (Q6) These 5 questions focus

on 5 critical objects, based on the respondent’s answers, interviewers would expand the interview’s content with some extra questions to find more information (which