Improving working competency of employees at sales division habeco one member co , LTD

ĐẠI HỌC QUỐC GIA HÀ NỘI KHOA QUẢN TRỊ VÀ KINH DOANH - NGUYỄN TRỌNG NGHĨA IMPROVING WORKING COMPETENCY OF EMPLOYEES AT SALES DIVISION - HABECO ONE MEMBER CO., LTD NÂNG CAO NĂNG LỰC LÀM VIỆC CỦA NHÂN VIÊN KHỐI KINH DOANH TẠI CÔNG TY TNHH MTV THƯƠNG MẠI HABECO LUẬN VĂN THẠC SĨ QUẢN TRỊ KINH DOANH HÀ NỘI - 2019 ĐẠI HỌC QUỐC GIA HÀ NỘI KHOA QUẢN TRỊ VÀ KINH DOANH - NGUYỄN TRỌNG NGHĨA IMPROVING WORKING COMPETENCY OF EMPLOYEES AT SALES DIVISION - HABECO ONE MEMBER CO., LTD NÂNG CAO NĂNG LỰC LÀM VIỆC CỦA NHÂN VIÊN KHỐI KINH DOANH TẠI CÔNG TY TNHH MTV THƯƠNG MẠI HABECO Chuyên ngành: Quản trị kinh doanh Mã số: 60 34 01 02 LUẬN VĂN THẠC SĨ QUẢN TRỊ KINH DOANH NGƯỜI HƯỚNG DẪN KHOA HỌC: TS TRẦN KIM HÀO HÀ NỘI - 2019 DECLARATION The author confirms that the research outcome in the thesis is the result of author‟s independent work during study and research period and it is not yet published in other‟s research and article The other‟s research result and documentation (extraction, table, figure, formula, and other document) used in the thesis are cited properly and the permission (if required) is given The author is responsible in front of the Thesis Assessment Committee, Hanoi School of Business, and the laws for above-mentioned declaration Date: 15th November 2018 ACKNOWLEDGEMENT First and fore most I offer my sincerest gratitude to all Professors of Hanoi School of Business, Vietnam National University (HSB, VNU) for giving me knowledge that is used as basement for my thesis I am heartily thankful to my supervisor, Dr Tran Kim Hao whose precious patience, valuable guidance and support from the initial to the final level enabled me to develop an understanding of the subject, thereby applying knowledge into real cases throughout my thesis Without his encouragement and effort, this thesis would not have been completed or written One simply could not wish for a better or friendlier supervisor Secondly, I would like to express my big thank to managers and employees at Habeco One Member Co., Ltd for their persistent support and contribution to put all knowledge into real cases throughout this thesis Last but not least, I offer my regards and blessings to my family, my friends and all of those who supported me in any respect during the completion of the thesis Hanoi, 15/11/2018 Nguyen Trong Nghia CONTENT INTRODUCTION 1 Rationale Aims of research Objects of research Scope of research Research methodology 5.1 Research process 5.2 Data collection 5.3 Data analysis Research structure CHAPTER 1: LITERATURE REVIEW ON COMPETENCY 1.1 Overview of competency 1.1.1 Definition of competency 1.1.2 Competency model 1.2 Components of competency of sales division employees 1.3 Competency assessment process 13 1.4 Competency assessment method 14 1.5 Factors affecting competency at organizations 15 1.5.1 External factors 15 1.5.2 Internal factor 16 CHAPTER 2: WORKING COMPETENCIES OF EMPLOYEES AT THE SALES DIVISION OF HABECO 20 2.1 Overview of Habeco Trading One Member Company Limited 20 2.1.1 History of development and establishment 20 2.1.2 Organizational structure 23 2.1.3 Human resources 25 2.1.4 Current situation of sales system of Habeco 26 2.2 Job descriptions for employees at Sales Division of Habeco 27 2.3 Required competencies for Habeco Sales Division employees 29 2.3.1 Required knowledge for Habeco Sales Division employees 32 2.3.2 Required skills for Habeco Sales Division employees 34 2.3.3 Required attitude for Habeco Sales Division employees 36 2.4 Current competencies of Habeco Sales Division employees 38 2.4.1 Current knowledge 38 2.4.2 Current skill 43 2.4.3 Current attitude 51 2.4.4 Overall assessment on the competency gap 54 CHAPTER 3: RECOMMENDATIONS TO IMPROVE WORKING COMPETENCIES OF EMPLOYEES AT THE SALES DIVISION OF HABECO 59 3.1 Objectives to improve competencies of Habeco Sales Division employees 59 3.1.1 Orientation to the company development 59 3.1.2 Objectives to improve competency of Habeco Sales Division employees 59 3.2 Recommendations to improve competencies of Habeco Sales Division employees 60 3.2.1 Training recommendations 60 3.2.2 Non-training recommendations 65 CONCLUSION AND LIMITATION 71 Conclusion 71 Limitation 71 LIST OF REFERENCES 72 ABBREVIATION CISG : United Nations Convention on Contracts for the International Sale of Goods Dept : Department FMCG : Fast Moving Consumer Good HR : Human Resources HRM : Human Resources Management HSB : Hanoi School of Business HSD : Habeco Sales Division KPI : Key Performance Indicator KSA : Knowledge, Skills, Attitude KSV : Knowledge, Skills, Values MBA : Master of Business Administration OJT : On the Job PA : Performance Appraisal R&D : Research & Development ROI : Return On Investment VNU : Vietnam National University LIST OF FIGURES Figure 1.1: Competencies architecture model Figure 1.2: Sales division employees‟ competencies assessment process 14 Figure 2.1: Organizational chart of Habeco Trading One Member Co., Ltd 24 Figure 2.2: Organizational chart of each branch of Habeco Trading One Member Co., Ltd 25 Figure 2.3: Required level for each competency of Habeco Sales Division employees 37 Figure 2.4: Current – Required knowledge gaps of Habeco Sales Division employees 43 Figure 2.5: Current – Required skill gaps of Habeco Sales Division employees 51 Figure 2.6: Current – Required attitude gaps of Habeco Sales Division employees 53 Figure 2.7: Gaps between required and current competencies 55 LIST OF TABLES Table 1.1: KSA model for sales division employees 10 Table 2.1: Habeco Trading One Member Co., Ltd‟s staff qualification in 2018 26 Table 2.2.: Result of manager‟s selection 30 Table 2.3: Ratio of answering questionnaires of respondents of the research 38 Table 2.4: Current product knowledge of Habeco Sales Division employees 39 Table 2.5: Current customer knowledge of Habeco Sales Division employees 39 Table 2.6: Current competitors knowledge of Habeco Sales Division employees 40 Table 2.7: Current technological knowledge of Habeco Sales Division employees 41 Table 2.8: Current regulation and policy knowledge of Habeco Sales Division employees 42 Table 2.9: Current communication skill of Habeco Sales Division employees 43 Table 2.10: Current presentation skill of Habeco Sales Division employees 45 Table 2.11: Current relationship building skill of Habeco Sales Division employees 46 Table 2.12: Current problem solving skill of Habeco Sales Division employees 47 Table 2.13: Current negotiation skill of Habeco Sales Division employees 48 Table 2.14: Current time management skill of Habeco Sales Division employees 49 Table 2.15: Current teamwork skill of Habeco Sales Division employees 50 Table 2.16: Current responsibility attitude of Habeco Sales Division employees 51 Table 2.17: Current positive attitude and enthusiasm of Habeco Sales Division employees 52 Table 2.18: Gap between the required and current level of competencies for Habeco Sales Division employees 54 Table 3.1: Recommended training courses for Habeco Sales Division employees 61 INTRODUCTION Rationale Choosing the right person to the right position is the right decision to the success of any business In other words, matching individual competencies with job competency models puts staffs in positions where they can contribute most Nowadays, with the development of international business, especially in Vietnam in particular, labor force plays an important role in any company‟s business because they are the people who can apply their knowledge, skills, and behaviors to directly bringing the profits to the company as well as bringing the company‟s image to out-side customers Therefore, improving labor force‟s competency is regarded as the leading strategy of any company Increasing the competency of an organization‟s labor force represents increasing its opportunities to be successful Strategies, business models, products and services can all be copied by competitors, but talented and competent employees represent a sustainable source of differentiation The beer industry is one of the Fast Moving Consumer Goods (FMCG) industries Currently, Vietnam is considered as a potential market due to its young population and rising incomes Habeco One Member Co., Ltd is one of the three largest beer companies in Vietnam In the period of 2010 – 2014, Habeco made great strides in the sales volume and profit The success factor of the company in this period was mainly due to the strong development of the beer market in Vietnam due to limited number of beer providers both domestically and internationally Therefore, Habeco attracted a large amount of customers, facilitating Habeco‟s revenue growth significantly The role of employees in the sales division at this stage was only to meet the needs of customers However, before the attractiveness of the Vietnamese beer market, many domestic and foreign beer companies have been stepping up their investment and competition to occupy Habeco's market share In addition, in the trend of modernization, information technology becomes more and more important and indispensable in the process of managing and operating the production and business activities of enterprises Some major brands in the FMCG sector have applied very well technology in sales system management, business efficiency improvement and have boom such as Saigon Beer, Sapporo, Huda, etc Facing changing business environment and fierce competition, working competency of employees at the Sales Division of Habeco could not meet the new internal and external requirements of the market As a result, the sales volume of the company declined severely, making the company's gross profit from sales and revenue significantly decline as well In order to Competencies Current level  Knowledge of special specification of product Customer  Understand about customer: customer‟s business, customer‟s requirement, etc Competitors  Deeply understand about relative strengths and weaknesses of competitors Technological  Capture and constantly update knowledge of FMCG technology development trends in the world and Vietnam Regulation and policy  Knowledge of international rules (i.e.: Incoterm, CISG, etc.) and laws, regulation of the Government and FMCG 5 5 5 5 industry in Vietnam SKILL Communication  The ability to present intentions, ideas, information with confident style  Delivers accurate, clear, and concise messages orally and/or in writing to ensure his/her message is understood  Speaking and writing skills in English with foreign partners  Listen carefully to deeply understand customer‟s need  Share ideas, opinions with others Presentation  Understand the audience to determine how best to 5 achieve your objectives  Present precise and logical information, analysis, ideas in convincing manner 76 Competencies  Current level Engage and interact with audience with confidence - includes handling difficult questions and objections  Persuade and orient listeners toward new perceptions to reach the goals Relationship building  Identify other parties before establishing a relationship to find out: their need, how to meet, etc  Schedule time to build relationships  Treat themselves and others with respect Ex: actively listen to the other party or try to complete the deal as agreed 5 5  Face differences with others directly  Work towards solutions where both parties win  Stay connected with other parties after an order or an 5 5 5 5 assignment end Problem solving  Evaluate the problem: clarifying the nature of a problem, gathering information, defining the desired objective  Manage the problem: breaking down a problem into smaller, more manageable, parts to generate alternative solutions  Make decision: deciding between the possible options for what action to take  Resolve the problem: implementing action  Examine the results: Monitoring the outcome of the action taken and reviewing the problem and problem-solving process to avoid similar situations in future 10 Negotiation  Identify the issues for both parties which can help to find a compromise for all parties  Determine goals or alternatives goals, areas for trade, etc 77 Competencies Current level  Good presentation for negotiations  Listen actively to the other party to find areas for compromise during the meeting  Ability to seek a variety of solutions to problems to benefit both parties of the issue  Patience and the ability to persuade others during a difficult negotiation 5 5 5 5 11 Time management  Make a list of tasks and arrange the priority order of tasks to reach the target  Set deadlines to ensure the task is completed on time  Implement a task following and rearrange the order of steps to carry out a task 12 Teamwork  Give and receive feedback from peers or other team members in order to perform the task  Contribute personal opinions and areas of disagreement tactfully  Listen patiently to others in conflict situations  Support group decisions even if not in total agreement 5 5 ATTITUDE 13 Responsibility  Possess an appropriate sense of urgency, as exemplified in the need to see the sale progress and to bring situations to a resolution  Anticipate consequences and evaluate alternatives before acting  Tend not to have excuses for a situation and take action when situations require action  Can accept valid criticisms and suggestions for performance improvement 14 Positive attitude and enthusiasm 78 Competencies Current level  Empathy with customer  Has a positive disposition towards others and their job  Initiative and the ability to focus on opportunities and 5 solutions  Persistence in forcing an important issue even in the face of possible rejection 79 APPENDIX LIST OF REQUIRED COMPETENCIES Dimension Competency Description Source KNOWLEDGE Strengths and weaknesses Product Special specification  Knowledge of strengths and weaknesses of Habeco‟s Product (2004) and and Service Interview  Knowledge of Specification of Special Habeco‟s Product  Understand about customer: requirement, etc Competitors Relative strengths and weaknesses  Deeply understand about relative strengths and weaknesses of competitors  Capture and constantly update knowledge of technology development trends in FMCG Technological industries in the world and in Vietnam  and laws, regulations of the policy (2004) and Job description and Interview Job description and Interview Barber and Tietje (2004); Job description and Interview Knowledge of international rules (i.e.: Incoterm, CISG, etc.) Regulation and Barber and Tietje Interview customer‟s business, customer‟s Customer Barber and Tietje Government and FMCG industry Job description and Interview in Vietnam SKILL  The intentions, Interpersonal Communication ability ideas, to present information with confident style  Delivers accurate, clear, and concise messages orally and/or in 80 Sypniewska (2013); Job description and Interview Dimension Competency Description Source writing to ensure his/her message is understood  Speaking and writing skills in English with foreign partners  Listen carefully to deeply understand customer‟s need  Share ideas, opinions with others  Understand the audience to determine how best to achieve your objectives  Present precise and logical information, analysis, ideas in convincing manner Presentation  Engage and interact with audience includes with confidence handling - Job description and Interview difficult questions and objections  Persuade and orient listeners toward new perceptions to reach the goals  Identify other parties before establishing a relationship to find out: their need, how to meet, et  Schedule Relationship relationships building  time to build Treat themselves and others with respect Ex: actively listen to the other party or try to complete the deal as agreed  Face differences with others directly 81 Spencer and Spencer (1993); Job description and Interview Dimension Competency Description  Work towards Source solutions where both parties win  Stay connected with other parties after an order or an assignment end  Evaluate clarifying the the problem: nature of a problem, gathering information, defining the desired objective  Manage the problem: breaking down a problem into smaller, more manageable, parts to generate alternative solutions  Problem solving Problem solving Make decision: deciding between the possible options for what action to take  Resolve the problem: Barber and Tietje (2004); Job description and Interview implementing action  Examine the results: Monitoring the outcome of the action taken and reviewing the problem and problem-solving process to avoid similar situations in future  Identify the issues for both parties which can help to find a compromise for all parties Negotiation Negotiation  Determine goals Barber and Tietje or alternatives goals, areas for trade, etc  (2004); Job description and Interview Good negotiations 82 presentation for Dimension Competency Description  Source Listen actively to the other party to find areas for compromise during the meeting  Ability to seek a variety of solutions to problems to benefit both parties of the issue  Patience and the ability to persuade others during a difficult negotiation  Make a list of tasks and arrange the priority order of tasks to reach the target Managerial Time management  Barber and Tietje Set deadlines to ensure the task is completed on time  (2004); Job description and Implement a task following Interview and rearrange the order of steps to carry out a task  Give and receive feedback from peers or other team members in order to perform the task  Others Teamwork and Contribute personal opinions areas of disagreement tactfully  Job description and Interview Listen patiently to others in conflict situations  Support group decisions even if not in total agreement  ATTITUDE Responsibility Possess an appropriate sense Barber and Tietje of urgency, as exemplified in the (2004); Job need to see the sale progress and description and to bring situations to a resolution Interview 83 Dimension Competency Description  Source Anticipate consequences and evaluate alternatives before acting  Tend to not have excuses for a situation and take action when situations require action  Can accept valid criticisms and suggestions for performance improvement  Empathy with customer  Has a positive disposition towards others and their job  Positive attitude and enthusiasm Initiative and the ability to focus on opportunities and solutions  Persistence in forcing an important issue even in the face of possible rejection  Enthusiastic even when a situation is not ideal 84 Job description and Interview APPENDIX SURVEY RESULT FOR CURRENT COMPETENCIES AND THE GAP WITH REQUIREMENT OF HABECO SALES DIVISION EMPLOYEES Gap Required level Current level Customers HSD employees Managers No KNOWLEDGE Product knowledge Knowledge of 2.31 2.55 2.27 2.38 (0.62) 2.3 2.6 2.33 2.41 (0.59) 2.32 2.5 2.21 2.34 (0.66) 3.21 3.44 3.32 3.32 3.5 (0.18) 3.21 3.44 3.32 3.32 3.5 (0.18) 3.11 3.38 3.25 3.25 3.5 (0.25) 3.11 3.38 3.25 3.25 3.5 (0.25) 2.49 2.45 2.56 2.50 (0.50) 2.49 2.45 2.56 2.50 3.0 (0.50) 2.54 2.76 2.43 2.58 3.5 (0.92) 2.54 2.76 2.43 2.58 3.5 (0.92) strengths and weaknesses of product and service Knowledge of special specification of product Customer knowledge Understand about customer: customer‟s business, their equipment system and requirement, etc Competitor knowledge Deeply understand about relative strengths and weaknesses of competitors Technological knowledge Capture and constantly update knowledge of FMCG technology development trends in the world and Vietnam Regulation and policy knowledge Knowledge of international rules (i.e.: Incoterm, CISG, 85 Gap Required level Current level Customers HSD employees Managers No etc.) and laws, regulation of the Government and FMCG industry in Vietnam SKILL Communication skill The ability to 3.45 3.67 3.56 3.56 (0.44) 3.53 3.76 3.69 3.66 (0.34) 3.51 3.73 3.75 3.66 (0.3) 2.79 2.85 2.75 2.80 (1.20) 3.68 3.75 3.81 (0.19) 3.75 3.85 3.87 (0.13) 2.80 3.07 3.08 2.98 (1.02) 2.8 3.11 3.1 3.00 (1.00) 2.8 3.1 2.97 (1.03) 2.74 2.95 2.90 (1.10) present intentions, ideas, information with confident style Delivers accurate, clear, and concise messages orally and/or in writing to ensure his/her message is understood Speaking and writing skills in English with foreign partners Listen carefully to deeply understand customer‟s need Share ideas, opinions with others Presentation skill Understand the audience to determine how best to achieve your objectives Present precise and logical information, analysis, ideas in convincing manner Engage and interact with audience with confidence includes handling difficult 86 Gap Required level Current level Customers HSD employees Managers No questions and objections Persuade and orient listeners toward new perceptions to 2.85 3.21 3.12 3.06 (0.94) 2.49 3.06 2.50 2.68 (1.32) 2.78 3.29 3.11 3.06 (0.94) 2.54 3.33 2.65 2.84 (1.16) 2.51 2.21 2.57 (1.43) 2.6 2.51 2.70 (1.30) 2.31 3.12 2.29 2.57 (1.43) 2.21 2.63 2.22 2.35 (1.65) 2.33 2.78 2.35 2.49 (1.51) 2.67 2.44 2.70 (1.30) 2.14 2.57 2.24 (1.76) reach the goals Relationship building skill Identify other parties before establishing a relationship to find out: their need, how to meet, etc Schedule time to build relationships Treat themselves and others with respect Face differences with others directly Work towards solutions where both parties win Stay connected with other parties after an order or an assignment end Problem solving skill Evaluate the problem: clarifying the nature of a problem, gathering information, defining the desired objective Manage the problem: breaking down a problem into smaller, manageable, parts more to 87 Gap Required level Current level Customers HSD generate employees Managers No alternative solutions Make decision: deciding between the possible options 2.23 2.68 2.31 2.41 (1.59) 2.15 2.66 2.33 2.38 (1.62) 2.47 2.68 2.72 (1.28) 2.62 3.12 2.70 2.82 (1.18) 3.5 2.89 3.13 (0.87) 2.54 3.13 3.05 2.91 (1.09) 2.5 2.86 2.34 2.57 (1.43) 3.35 3.12 (0.88) 2.2 2.93 2.51 2.55 (1.45) for what action to take Resolve the problem: implementing action Examine the results: Monitoring the outcome of the action taken and reviewing the problem and problem-solving process to avoid similar situations in future 10 Negotiation skill Identify the issues for both parties, which can help to find a compromise for all parties Determine goals or alternatives goals, areas for trade, etc Good presentation for negotiations Listen actively to the other party to find compromise areas during for the meeting Ability to seek a variety of solutions to problems to 88 Gap Required level Current level Customers HSD employees Managers No benefit both parties of the issue Patience and the ability to persuade others during a 2.5 2.95 2.43 2.63 (1.37) 2.58 2.66 2.37 2.54 (0.46) 2.65 2.84 2.5 2.66 (0.34) 2.87 2.83 2.5 2.73 (0.27) 2.21 2.31 2.11 2.21 (0.79) 2.89 3.12 2.92 2.98 (0.02) 3.12 3.04 0.04 3.19 3.04 3.08 0.08 3.18 3.06 0.06 2.56 2.65 2.74 (0.26) difficult negotiation 11 Time management skill Make a list of tasks and arrange the priority order of tasks to reach the target Set deadlines to ensure the task is completed on time Implement a task following and rearrange the order of steps to carry out a task 12 Teamwork skill Give and receive feedback from peers or other team members in order to perform the task Contribute personal opinions and areas of disagreement tactfully Listen patiently to others in conflict situations Support even group if not decisions in total agreement ATTITUDE 13 Responsibility 3.11 3.33 3.20 3.21 3.5 (0.29) Possess an appropriate sense 3.12 3.54 3.39 3.35 3.5 (0.15) 89 Gap Required level Current level Customers HSD employees Managers No of urgency to bring situations to a resolution Anticipate consequences and evaluate alternatives before 3.27 3.32 3.39 3.33 3.5 (0.17) 2.85 3.13 2.99 3.5 (0.51) 3.18 3.31 3.16 3.5 (0.34) 2.43 2.71 2.40 2.52 (1.48) 3.12 2.86 2.99 (1.01) 2.65 2.87 2.54 2.69 (1.31) 2.21 2.55 2.29 2.35 (1.65) 2.12 2.48 2.17 2.26 (1.74) 2.19 2.54 2.15 2.29 (1.71) acting Tend not to have excuses for a situation and take action when situations require action Can accept valid criticisms and suggestions for performance improvement 14 Positive attitude and enthusiasm Empathy with customer Has a positive disposition towards others and their job Initiative and the ability to focus on opportunities and solutions Persistence in forcing an important issue even in the face of possible rejection Enthusiastic even when a situation is not ideal 90 ... working competencies of employees at the Sales Division of Habeco - Propose recommendations to improve working competencies of employees at the Sales Division of Habeco Objects of research The research... on competency Chapter 2: Working competencies of employees at the Sales Division of Habeco Chapter 3: Recommendations to improve working competencies of employees at the Sales Division of Habeco. .. division employee competency in order to improve the competency of employees at the sales division of Habeco 1.2 Components of competency of sales division employees Sales division employee competencies