Poor working environment in hardline sector at aeon mall tan phu celedon

UNIVERSITY OF ECONOMICS HO CHI MINH CITY International School of Business Le Thi Kim Khang POOR WORKING ENVIRONMENT IN HARDLINE SECTOR AT AEON MALL TAN PHU CELEDON MASTER OF BUSINESS ADMINISTRATION Ho Chi Minh City – Year 2019 UNIVERSITY OF ECONOMICS HO CHI MINH CITY International School of Business Le Thi Kim Khang POOR WORKING ENVIRONMENT IN HARDLINE SECTOR AT AEON MALL TAN PHU CELEDON MASTER OF BUSINESS ADMINISTRATION SUPERVISOR: DR DOAN ANH TUAN Ho Chi Minh City – Year 2019 Table of Contents LIST OF FIGURE LIST OF TABLE EXECUTIVE SUMMARY COMPANY OVERVIEW: 1.1 AEON GROUP AND AEON MALL VIETNAM: 1.2 HARDLINE SECTOR: 10 SYMPTOMS: 10 2.1 HIGH TURNOVER RATE: 10 2.2 DECREASE SALES VOLUME: 12 PROBLEM IDENTIFICATION: 13 3.1 POTENTIAL PROBLEMS: 13 Personal reasons: 13 Direct supervisor: 14 Working environment: 14 Decrease in sales volume 15 3.2 VALIDATING PROBLEMS: 16 Managers’ perspectives: 17 Employees’ perspectives: 18 3.3 THE MAIN PROBLEM: 18 CAUSE VALIDATION: 19 4.1 POTENTIAL CAUSES: 19 Poor qualification of tool & equipment 19 Bad ventilation system 20 Unreasonable shift hour 20 4.2 VALIDATING CAUSES: 20 Poor qualification of tool and equipment 21 Unreasonable shift hour 21 Bad ventilation system 21 ALTERNATIVE SOLUTIONS: 22 5.1 ALTERNATIVE SOLUTION 1: REPLACE POOR QUALIFICATION TOOLS AND EQUIPMENT 23 Phase 1: Recheck office tools and equipment 23 Phase 2: Finding the potential suppliers 23 Phase 3: Control and monitor 25 Phase 4: Report and evaluate result of solution 25 5.2 ALTERNATIVE SOLUTION 2: FIX THE UNREASONABLE SHIFT HOUR 25 Phase 1: Evaluate how unreasonable shift hour of employees 26 Phase 2: Suggest new daily working time 26 Phase 3: Report and evaluate result of solution 26 5.3 ALTERNATIVE SOLUTION 3: STANDARDIZED PROCESSIZATION 26 Phase 1: Making a standard working process 27 Phase 2: Evaluate to complete the processes 28 Phase 3: Report and enhance the system 28 ACTION PLAN: 29 6.1 ACTION PLAN 1: REPLACE POOR TOOLS AND EQUIPMENT 29 6.2 ACTION PLAN 2: FIX UNREASONABLE SHIFT HOUR 31 6.3 ACTION PLAN 3: STANDARDIZED PROCESSIZATION 33 Making a standard working process 33 SUPPORTING INFORMATION: 34 7.1 INTERVIEWEE’S DEMOGRAPHIC: 34 7.2 INTERVIEW GUIDE: 34 Introduction 34 Warm – up question 34 Main body of interview 34 REFERENCES 35 APPENDIX 1: TRANSCRIPT SUMMARY 37 List of figure Figure Aeon Mall Tan Phu Celedon Figure Basic principle of Aeon Mall Figure Hardline structure at Aeon Mall Celadon 10 Figure 4.The percentage of turnover rate in Hardline Sector in Aeon Mall Celedon in 2018 11 Figure Sale volume of Hardline Sector in 2018 12 Figure Reasons of Turnover in Hardline Sector in 2018 13 Figure Initial Cause - effect map 16 Figure Updated cause - effect map 19 Figure Final cause - effect map of Hardline Sector 22 Figure 10 Registering shift hour process 27 Figure 11 Selling process 28 List of table Table The percentage of turnover rate of Hardline Sector in Aeon Mall Celedon Tan Phu in 2018 11 Table Potential suppliers 25 Executive summary According to research report of EU – Vietnam Business Network (1), Vietnam’s retail industry is the prosperous market which attract many different domestic and international companies to invest and develop in there However, the biggest challenge facing employers in this industry is the high turnover rate of employees, even turnover is an issue that both businesses and workers are not expecting Ideally, Hai Van (2) reported, 20% of workers said that candidates’ did not have enough obligation and the high turnover rate are the biggest challenges, with 49 per cent claiming that candidates are easily effected when they have offers from another company Today, AEON Group is one of the largest retail companies with impressive linkage scales and performance in Japan as well as in other countries AEON Vietnam Co., Ltd opened the first shopping center "AEON MALL Tan Phu Celadon" with the largest scale in Ho Chi Minh City on January 11, 2014 This shopping center will be the third country after Malaysia and China to mark AEON's emergence as a large-scale shopping mall However, one of the most difficult challenges that AEON Tan Phu Celadon has to confront one of the hardest problems which are how to maintain a permanent human resource Spending a lot of time and money training a quality team and keeping them motivated in a stressful working environment is not a simple challenge In addition, talents are often attracted to some other attractive offers, along with better remuneration This issue not only increases the personnel cost of the enterprise but also reduces the business efficiency and even leads to the lack of and weak personnel that can "destroy" the business If this problem continues, it will adversely affect the business, as well as the image of the company Therefore, it is necessary to analyze each influencing factor, assessing the risk of each of those factors to each employee, right from the time of recruitment to the appropriate and appropriate measures Starting from the above, I decided to choose the topic “Poor working environment in Hardline Sector at Aeon Mall Tan Phu Celedon” which is topic for my thesis Since then, propose some solutions to reduce poor working condition and improve the situation in Hardline Sector Company overview: 1.1 Aeon Group and Aeon Mall Vietnam: Aeon Group was established in 1758 in Japan Aeon is one of the largest retail company and has 179 joint ventures in both domestic and oversea Throughout its operation time, the AEON Group maintains an unwavering commitment to set "Customer First" consistently The basic principle of AEON Group is towards a prosperous, stable and peaceful society through retailing With that responsibility, AEON Group has gained the trust of customers as well as expanding business activities not only in Japan but also in other countries in Asia which are China, Vietnam, and so on for a long time AEON officially started its operations in Vietnam in 2009 as a Representative Office from 01/12/2009 to 10/07/2012 In 07/10/2011, The company was approved by the People's Committee of Ho Chi Minh City, AEON Vietnam Co., Ltd was officially established, investing for construction, organization, management and business activities: Trade Center, General Department Store and Supermarket This is considered the main business direction In addition, AEON conducts other business activities related to import-export, trade and research Figure Aeon Mall Tan Phu Celedon AEON MALL system in Vietnam includes AEON - Tan Phu Celadon Shopping Center in Ho Chi Minh City in 2014, AEON Shopping Center - Binh Duong Canary in Binh Duong, AEON - Long Bien Shopping Center in Hanoi in 2015 and AEON Shopping Center - Binh Tan District in Ho Chi Minh City in 2016 In 2019, Aeon Mall Vietnam plans to open new shopping center at Ha Dong of Hanoi Basic principle of AEON: • "Peace": All AEON activities aim to pursue prosperity to create a stable peace • "Human": AEON always respects and values human qualities and values, as well as strives to promote the building of close relationships in the same collective • "Community": AEON is constantly devoted to contributing to creating the sustainable development of the community Figure Basic principle of Aeon Mall 1.2 Hardline sector: There are two basic forms of goods in a retail store of Aeon which are Hardline and Softline If the term soft goods or Softline refers to merchandise that is literally “soft”, Hard goods or hardlines are goods that are “hard” to the touch A department store or product line consisting primarily of goods such as household appliances, electronics, sporting goods, health care and beauty products or toys will be considered hard goods In Aeon, hardline includes three divisions: Home Appliance – Multimedia, Home fashion – Household – DIY and Stationary – Sports – Bike The numbers of employee are 78 people Besides, in Hardline sector, it also has two levels of staff like other department which is front desk staff and managers Figure Hardline structure at Aeon Mall Celadon Symptoms: 2.1 High turnover rate: During the working time and data of company in 2018, I realized that main symptoms of company are high turnover rate and decrease in sales volume Turnover rate is one of the most important things which human resources need to pay more attention and manage it in suitable limitation Nowadays, turnover likes phenomena 10 Action plan: 6.1 Action plan 1: Replace poor tools and equipment PHASE OBJECTIVES ACTIONS Checking again all of tools and Recheck Clarify, office tools count the number and equipment of list and tools and equipment equipment which are being stayed and used by employees in the Hardline sector RESPONSIBILITIES TIME SCHEDULE W1 W2 W3 W4 W5 W6 Manager Team Leader Staff Making report to ask for permission about replacing the current situation Manager of tools and equipment Fining the potential Evaluate to complete the processes suppliers which provide services for replacing the poor qualification tools and equipment Based on data of supplier before of company, choosing the suitable suppliers which provide services and products refer with current Manager situation at Hardline Sector Making report to ask approval from upper level manager about solution 29 After receiving the permission, making contract with suppliers and set the time to replace the broken tools and equipment Control and Controlling and monitoring the process of suppliers monitor Manager Making interview and short survey Evaluate to know which have several questions relate Report and evaluate result of solution how satisfaction of with health, thinking, and so on of employees after employees after replacing the poor replacing old qualification tools and equipment Manager Team Leader Staff broken tools and Reporting to upper level about result equipment of solution bases on result of Manager interview and survey 30 6.2 Action plan 2: Fix unreasonable shift hour PHASE OBJECTIVES RESPONSIBILITIES ACTIONS Making short survey and in – dept Evaluate Evaluate thinking how feeling which have and content relate with shift hour of W9 W10 W11 W12 W13 W14 W15 W16 Manager Team Leader Staff of employees unreasonable employees shift hour of about employees interview TIME SCHEDULE Collect the data and result of current interview to check and find main shift hour at problems of unreasonable shift Hardline Sector hour from current daily working Manager Team Leader schedule By Suggest new daily working time previous result interview of and survey, suggesting new daily working Checking again about policy of company about shift hour for general staff to make sure new daily working schedule which Manager not affect to other sectors Suggesting new daily working schedule which is able to adapt 31 schedule which all is reasonable of conditions such as expectations of employees and policies of company about working time Reporting to upper level manager about recent situation of sector to ask for allowance about solution Evaluating Interview and survey again which again to know use score scale to evaluate how Report and evaluate result of solution how feeling or satisfaction of employees about thinking Manager Team Leader Staff of their new working time employees after applying Reporting to upper level about new working daily result of solution bases on result Manager of interview and survey schedule 32 6.3 Action plan 3: Standardized processization PHASE Making a OBJECTIVES Making ACTIONS RESPONSIBILITIES TIME SCHEDULE W17 W18 W19 the standard standardization process Making the registering shift hour process working about registering shift process hour process and selling process Suggesting the general working process for general staff Manager Manager Evaluate to make the Evaluate to process complete and Making the survey and interview the complete the suitable processes for Manager specific general staff to collect data and result Team Leader working ddescription of from interview to complete the processes General Staff general staff Report and enhance the system Enhancing the system to manage conveniently Reporting to have data and principle to enhance the system to correspond with Manager recent situation in the Hardline Sector 33 Supporting information: 7.1 Interviewee’s Demographic: No Name Gender Position Nguyen Thanh Trieu Male Hardline Manager La Thuc Trinh Female Le Yen Ngoc Female Tran Cong Tuan Tran Minh Tuan Working Working experience Interview experience at date (year) Hardline Mar-2019 Hardline’s current Place of interview Hardline 3 Mar-2019 Hardline Staff at Home Fashion Mar-2019 Hardline Male Staff at Home Center 2.5 2.5 Mar-2019 Hardline Male Staff at Home Fashion 1.5 1.5 Mar-2019 Hardline Division sales leader 7.2 Interview guide: Introduction - Greeting and introduction - Describe reason and purpose of the interview - Job title, job description of individual interviewee Warm – up question - What is your name and position? - How long have you been working here? Main body of interview - What you think about working environment here? - What you think about training program in Aeon Mall Celedon Tan Phu? - Do you intend to work here for a long time? - What you expect from Aeon Mall to improve your working life? 34 REFERENCES Network E-VB Vietnam’s distribution and retail channels report 2018 Van H High staff turnover a challenge in retail: Vietnam Economic Times; 2017 [Available from: http://vneconomictimes.com:8081/article/vietnam-today/high-staffturnover-a-challenge-in-retail Dr Adnan Iqbal PSU, Riyadh, Saudi Arabia Employee Turnover: Causes, Consequences and Retention Strategies in the Saudi Organizations 2010 Iqtidar AS, Zainab F, Shakil AM, Khalid Z Measuring push, pull and personal factors affecting turnover intention: A case of University teachers in Pakistan Review of Economic & Business Studies 2010;3(1):25 Hammerberg JH Reasons given for employee turnover in a full priced department store 2002 Mohamad SF Effects of communication on turnover intention: A case of hotel employees in Malaysia: Iowa State University; 2008 Oludeyi OS A Review of Literature on Work Environment and Work Commitment: Implication for Future Research in Citadels of Learning 2015 Retail faces high employee turnover 2017 [cited 2019 23 March] Available from: https://vietnamnews.vn/economy/405397/retail-faces-high-employee- turnover.html#fKr6FH6bLHJiWIl8.97 Ahmed Z, Sabir S, Khosa M, Ahmad I, Bilal MA Impact of Employee Turnover on Organisational Effectiveness in Tele Communication Sector of Pakistan Journal of Business and Management 2016;18(11):12 10 Agbozo GK, Owusu IS, Hoedoafia MA, Atakorah YB The effect of work environment on job satisfaction: Evidence from the Banking Sector in Ghana Journal of Human Resource Management 2017;5(1):6 11 Aziri B Job satisfaction: A literature review Management research and practice 2011;3(4):9 12 MJ E, EU A, NM P Impact of Workplace Environment on Health Workers 2017 13 Massoudi AH, Hamdi SSA The Consequence of work environment on Employees Productivity Journal of Business and Management 2017;19(1):7 35 14 Aggarwal S, Devi A, Kaur D Impact of Working Conditions on Employees Performance International Research Journal of Commernce Arts and Science 2014;5(4) 15 Qureshi MI, Iftikhar M, Abbas SG, Hassan U, Khan K, Khalid Z Relationship Between Job Stress, Workload, Environment and Employees Turnover Intentions: What We Know, What Should We Know Word Applied Sciences Journal 2013:7 16 Msengeti DM, Obwogi DJ Effects of Pay and Work Environment on Employee Retention: A Study of Hotel Industry in Mombasa County International Journal of Scientific and Research Publications 2015;5(4) 17 Elsbach kD, Pratt MG The Physical Environment in Organizations The Academy of Management Annals 2014:45 18 Binczycki B, Lukasinki W DETERMINANTS OF QUALITY OF WORK CONDITIONS 1st International conference on Quality of Life2016 19 mbaskool.com Selling process Marketing and Strategy Terms: mbaskool.com; [Available from: https://www.mbaskool.com/business-concepts/marketing-and- strategy-terms/2069-selling-process.html 36 Appendix 1: Transcript summary Q&A Coding Q1 What is your name and positions? Key quote Job position Mr Nguyen Thanh Trieu Hardline manager Ms La Thuc Trinh Hardline's current Division sales leader Ms Le Yen Ngoc Staff at Home Fashion Mr Tran Cong Tuan Staff at Home Center Mr Tran Minh Tuan Staff at Home Fashion Q2 How long have you been working here? - Mr Trieu – years - Ms Trinh – years - Ms Yen Ngoc – year - Mr Cong Tuan – 2.5 year - Mr Minh Tuan – 1.5 year Employee tenure Q3: What you think about working environment here? • Mr Trieu: I worked nearly two years that I could understand how the working environment in there I - Working alone Poor working environment 37 think should focus on improving working - Personal responsibility - No teamwork - Unreasonable shift hours - Bad ventilation system - Broken equipment environment because it is very importance factor for the current Hardline situation Moreover, employees need to work towards a common goal and ensure they are responsible for the job of the whole team, instead of working alone and taking personal responsibility • Ms Trinh: Lack of team spirit is the biggest problem and due to the lack of working environment among teams, it makes internal work overloaded and a change in job responsibilities between teams • Ms Yen Ngoc: The shift hours are unreasonable Sometimes I have to work over hours a day While other day I only have to work around or hours • Mr Cong Tuan: I don’t know how to say In my position, ventilation system had trouble, but it did not repair yet I have to work in hot and uncomfortable condition Good machine will help me to complete job task early However, equipment 38 still has been broken and should be repaired soon It makes me spent more time to finish my job • Mr Minh Tuan: I feel very unhappy because of my direct supervisors In some situation, my direct supervisor yelled and forced me work his own jobs - Direct supervisors treat unfairly Besides, he has treated unfairly and sometimes he said with me in bad words It made me feel very stressful in my working time Q4: What you think about training program in Aeon Training program Mall Celedon Tan Phu? • Mr Trieu: I work as manager of the company I have received training program both domestic and foreign countries such as Japan, Hong Kong, China and so - Good training program - No idea about training program - Unreasonable training time on Therefore, I feel very satisfied about the training program of company • Ms Trinh: It’s ok with me I have no idea about training program of company • Ms Yen Ngoc: I felt very tired because I had to join the training time before my shift I made me have to 39 go to work early After hours in training, I did not - have enough power in next hours to work It Feel tired and lack of power to work claimed that in that day I had to stay in company around 10 hours • Mr Minh Tuan: I suggest that the company should arrange the training time more reasonably I fell asleep while I joined training time because the - Unreasonable training time training time organized after my working time I - After work - Supply more training course to could not remember any information about new products • Mr Cong Tuan: General staff not have any training courses which can help them improve their own skills such as sales, communication skills or negotiation skills They only have training course about new products It made myself feel improve skills dissatisfaction because I expect to learn more new things during my working time 40 Q5: Do you intend to work here for a long time? Working environment • Mr Thieu: I love this culture, policies and working Quit environment in there I have more opportunities to - Good environment learn new knowledge and skills through training - Long term working When I become a group leader after 1.5 years as - Clear career path general staff I feel very motivative and I know - Feel motivative - Unhappy - Quit job - Join military job because of employee personal reason course in there Compensation policy are good for my family and myself Therefore, I will work in there for a long time • Ms Trinh: I like professional environment in there clearly about my career path in the future • Ms Yen Ngoc: I feel unhappy and I am looking for a job and have offer but I still waiting another • Mr Cong Tuan: I not learn more new things or skills after 2.5 years I consider that I will quit my job • Mr Minh Tuan: Everything is good to me However, I have to military service in next month So that I 41 have to quit my position even though I feel extremely regretful Q6: What you expect from Aeon Mall to improve Working condition your working life? Training program • Mr Thieu: I have no idea Because in my position I - Satisfaction about benefit and compensation feel very satisfy about benefit and compensation of company • Ms Trinh: I hope that I will have more chance to - More training programs - Pay attention on general staff reasonable time for general staff because I also want - More training programs to develop my working skills which could support - Working skills engage several training programs which provide myself many opportunities to learn new things and create new relationship • Ms Yen Ngoc: I expect that company should pay more attention on feeling of general staff to know current problem in our working place • Mr Cong Tuan: More training programs with for my career at Aeon Mall 42 • Mr Minh Tuan: I hope I will have opportunity to - Working again back to work at Aeon Mall after finishing my military time 43 ... HO CHI MINH CITY International School of Business Le Thi Kim Khang POOR WORKING ENVIRONMENT IN HARDLINE SECTOR AT AEON MALL TAN PHU CELEDON MASTER OF BUSINESS ADMINISTRATION SUPERVISOR:... Aeon Mall Tan Phu Celedon Figure Basic principle of Aeon Mall Figure Hardline structure at Aeon Mall Celadon 10 Figure 4.The percentage of turnover rate in Hardline Sector. .. choose the topic Poor working environment in Hardline Sector at Aeon Mall Tan Phu Celedon which is topic for my thesis Since then, propose some solutions to reduce poor working condition and