Increase the profitability by improving supervisor’s management and leadership skills – the case of pomina 2 steel JSC

UNIVERSITY OF ECONOMICS HO CHI MINH CITY International School of Business PHAM NGUYEN KHANH INCREASE THE PROFITABILITY BY IMPROVING SUPERVISOR’S MANAGEMENT AND LEADERSHIP SKILLS – THE CASE OF POMINA STEEL JSC MASTER OF BUSINESS ADMINISTRATION Ho Chi Minh City – Year 2020 UNIVERSITY OF ECONOMICS HO CHI MINH CITY International School of Business PHAM NGUYEN KHANH INCREASE THE PROFITABILITY BY IMPROVING SUPERVISOR’S MANAGEMENT AND LEADERSHIP SKILLS – THE CASE OF POMINA STEEL JSC MASTER OF BUSINESS ADMINISTRATION SUPERVISOR: Tran Vi Ho Chi Minh City – Year 2020 INCREASE THE PROFITABILITY BY IMPROVING SUPERVISOR’S MANAGEMENT AND LEADERSHIP SKILLS – THE CASE OF POMINA STEEL JSC I EXCECUTIVE SUMMARY II COMPANY OVERVIEWS Overviews Products of the Company 3 Company group model Procedure of production: III SYMPTOMS: IV RESEARCH METHODOLOGY Research Method Data Collecting Methods V PROBLEM ANALYSIS 10 Problem definition: 10 Problem validation 19 VI CAUSE ANALYSIS AND VALIDATION 25 Possible causes: 25 Causes validation 30 VII ALTERNATIVE SOLUTIONS 32 Proposed solution 32 Evaluation and solution decision: 34 Action plan: 35 Expected outcome: 37 VIII SUPPORTING DOCUMENTS 38 Interview Guide 38 Survey Table 40 Reference 42 Author: Pham Nguyen Khanh – ISB MBA9 | I EXCECUTIVE SUMMARY Pomina Steel Joint Stock Company (POM) is a joint stock company producing and trading steel, mainly steel used in contraction and sheet Pomina is a well-known brand with a leading market share of construction steel nationwide For many years, their product quality is the most important value that keeps the brand growing Currently, it‘s one of the leading steel manufacturers with revenue ranking top among the biggest steel producers in the Vietnam market But despite the steady growing revenues, there’re a lot of managerial problems happened inside the company Work-place-accidents, waste of materials, constant decrease in net profit, as well as complains about ecology for the harmful effects to the environment Mid of 2019, an serious work-place accident happened and caused big losses Pomina Steel 2’s factory had to shut down for more than months, and could open again only in October of 2019 This was a recent accident we have to remember that in the previous years, 2016,2017 similar disasters already happened with more serious damages These accidents made a hard impact on the company, cost many lives of workers and a lot of money They made the net profit gone down dramatically but until now the management still couldn’t decide for a reliable solution to solve the deep root of it This thesis would like to focus on formulating suggestions to improve the profitability starting from analyzing facts to find the causes of “ why would the accidents happened” and hopefully suggest of applicable solutions The methodology is identifying the problems based on empirical analysis, process-oriented analysis from the interview of key-person, as well as survey processes The validation of this thesis would base on analyzing the company’s data, process audit and literature support From those analyses, the poor quality of the supervisors’ management and leadership skill was identified as the main problem to make the accident happened, consequently brought down their net-profit to negative Author: Pham Nguyen Khanh – ISB MBA9 | II COMPANY OVERVIEWS Overviews On July 17/2008, the company was granted the License of Business Registration Joint Stock Company No 4603000570 by the Department of Planning and Investment of Binh Duong Province, operating under the Vietnam Enterprise Law, with charter capital of 500 billion dong Currently, Pomina's charter capital reaches VND 1,630 billion Pomina has one subsidiary and two factories, including production lines, steel rolling lines and steel refining lines, and is currently the largest steel supplier in Vietnam for: • Steel billet: 1.5 million tons • Rolled Construction steel: 1.6 million tons Personnel: 2019 % Director Vice director Supervisor 23 3,2% Skilled worker/Engineer 158 22% Unskilled worker 534 74% Total 718 100% Products of the Company High-quality steel products such as rolled steel, plain steel and especially steel bar with steel grades: SD390, SD490, Gr60 with the apple-shaped embossed logo and steel grade engraved per meter of product Company group model The Pomina Steel group includes different companies: - Pomina steel factory (Series 27, Song Than Industrial Park, Bo An, Binh Duong): Author: Pham Nguyen Khanh – ISB MBA9 | Established in February 2012, inheriting the entire production line system from Pomina Steel Joint Stock Company, including 02 production lines, each with a capacity of 300,000 tons of construction steel / year, Equipped with modern technology of Vai-Pomini (Italy) and Simac (Germany) - Pomina Steel Joint Stock Company (Phu My Industrial Park, Tan Thanh, Ba Ria - Vung Tau): Invested by Pomina in 2005 with the modern technological line for steel production of Techint (Italy), the capacity of 500,000 tons of construction steel and 500,000 tons of billet per year - Pomina factory and culture (Phu My Industrial Park, Tan Thanh, Ba Ria - Vung Tau): Established in July 2009 on a space of 46 hectares in Phu My Industrial Park with a total investment of 300 million USD from Pomina Steel Joint Stock Company Pomina is a project consisting of 01 steel billet plant with a capacity of 01 million tons / year, 01 steel mill with production lines - each line has a capacity of 500,000 tons / year, and 01 seaport for loading and unloading With a refining capacity of million tons / year Pomina has become one of the largest construction steel billet plant in SEA today - Viet Steel Trading and Manufacturing Co., Ltd (Commercial Pomina): in charge of commercial business of the entire Pomina Group Procedure of production: For the readers to understand some outlines of the Pomina’s manufacturing procedure, the author would like to briefly introduce the iron and steel manufacturing process Author: Pham Nguyen Khanh – ISB MBA9 | There are mains steps in the modern technology of steel production:  Step – The iron making process The raw materials such as lime, iron ore, and coke are mixed in a hi-temperature furnace and being melted there The result of this process is the molten iron After the main component of steel, iron is being melted, it should be cleaned of impurities (approximately 4%-4,5%) which make the metal to be brittle The next step would be as following  Step – Primary steel making The two modern primary methods for making steels are Basic Oxygen Steel making (BOS) and Electric Arc Furnaces (EAF) The BOS is the method that adding scrap steel to the molten Author: Pham Nguyen Khanh – ISB MBA9 | iron when it still is in the furnace Neutral gas such as helium and argon are added to the furnace using the Bessemer process to cut down the impurities down to less than 1% And with the EAF method, recycled steel is put into an electrical arc furnace along with the molten iron which is then heated to around 1,650 degrees Celsius in order to convert it into highgrade steel  Step – Secondary steel making Using many techniques such as adjusting the temperature of the furnace, remove/add certain others components, degassing, ladle injection, argon bubbling,… to form the most perfect steel composition  Step – Casting After getting the perfect mixture, the next step would be pouring it into molds to cool down and form into the finished steel Once cooled, the metal is then cut into desired lengths depending on the application, slabs for plates, blooms for sections such as beams, and billets for longer products such as wire or thin pipes  Step – First forming This process is also known as hot rolling, the casted-steel now would be formed into many different kinds of product such as slabs, blooms, and billets  Step – The manufacturing, fabrication and finishing process Finally, the first-formed steel now will be going through secondary forming processes such as machining, shaping, jointing and coating, and then be divided into flat products, long products, seamless pipes, and specialty products Author: Pham Nguyen Khanh – ISB MBA9 | III SYMPTOMS: Billion VND % Revenue 2016 Q2 2017 Revenue Cost of goods sold Operating cost Q2 2018 2017 2018 2019 Q2 Q2 2018 2019 2018 4.856 5.094 6.649 3.279 3.586 100,0% 100,0% 100,0% 100,0% 4.452 4.656 6.228 2.962 3.547 91,4% 93,7% 90,3% 98,9% 15,78 17,56 23,59 10,46 9,98 0,3% 0,4% 0,3% 0,3% 388 323 299 261 (42) 6,3% 4,5% 8,0% -1,2% 350 294 277 238 (42) 5,8% 4,2% 7,3% -1,2% Net operating profit Net profit The company had its revenue growing up every year: 4.856 billion VND in 2016 up to 6.649 billion VND in 2018 Their cost was stable through the years, but recently their net profit was decreasing, from 350 billion in 2016, and constant dropped to 277 billion in 2018 The peak was in quarter 2/2019, they recorded a big deficit on their profit, minus 42 billion VND, compared with the same quarter of 2018 was 238 billion VND Here some graphs for you to have a better view of the situation: Here one can observe the revenue of the company had been increasing every year, from 4,856 billion VND in 2016 to 6,649 in 2018, and in Q2.2019 is 3,586 billion VND, increasing 9.4% compared to the same quarter of 2018 This was a good trend until we look at the numbers of profit and loss Author: Pham Nguyen Khanh – ISB MBA9 | Unit: Billion Revenue 6649 7000 6000 5000 4856 5094 4000 3279 3586 Revenue 3000 2000 1000 2016 2017 2018 Q2.2018 Q2.2019 Looking at the most important index of any company, the net profit, we observe a constant going-down trend through the years, an opposite with the revenue, and worse we can see a loss occured in the 2nd quarter of the year 2019 This phenomenon raises a question worth investigating: Why does this happen while the revenue keeps increasing? What are the causes? And what we can to improve the situation? Net profit 400 350 300 250 200 150 100 50 -50 -100 350 294 277 Unit: Billion Net profit 238 -42 2016 2017 2018 Q2.2018 Q2.2019 As mentioned above, the net profit of the company was decreasing steadily over the years According to the various researchers such as Garrigosa (3) or Craig (4), all claimed that this is a serious situation that could lead to bankruptcy in near future if the company could not find any reliable solution We need to further analyze this symptom & the problem mess Author: Pham Nguyen Khanh – ISB MBA9 | According to the survey, the author obtained a reliable result about the real cause The three most recorded answers were the weak in the evaluation system, no job motivation and the lack of management/leadership training To choose a suitable solution to raise up the company profit by promoting the managers performances, the author would like to more investigations of the two causes above First cause, for the job motivation issue, the author conducted another deep interview with Mr Toan to reinforce the validation of the real cause During the interview, Mr Toan agreed that he also saw the motivation of his employees are somehow vague, the atmosphere in the factory after various accidents had impacted on the spirit of the workers So what is motivation? The word motivation mean the human drive to work in order to gain rewards from that work, whether those rewards be physical, emotional, social or monetary Without it, the employee naturally feels less motivated, and their working spirit would definitely loosen, stated by Feys (19) “Employee recognition is one of the motivational strategies that is gaining more and more attention and importance” The author spoke with Mr Toan about the managers’ opinions, they claimed that the current evaluate system was not transparent and treated the employees unfairly It lacked methodology and a suitable reward for them The current method was done mostly based on subjective opinions of the upper level For the workers, especially the low level workers, reward like cash money could lift up their motivation strongly, stated by Salie (20) Through reward system, employees’ motivation would be improved, encouraged employees to contribute, more loyal to work Therefore, one can say that if employees felt happy with their works and wellrewarded for their efforts, their outputs would be much better On the other hand, if the company didn’t not have any evaluation system and rewards to recognize employees’ performances, it would result in the failure in inspiring employees and lower their motivation, causing depression among remaining employees The author finally realized that an adequate evaluation system that gave fair rewards would boost workers’ motivation but would also suitable give senior managers a clearer look on the company working’s status and also their employees working ability It should be a tool to increase the working capacity sustainably in term of quality and productivity For that, with the current situation, a suitable evaluation system with a fairly evaluate method and detail job Author: Pham Nguyen Khanh – ISB MBA9 | 31 description was a must to lift up the spirit of the workers The author would suggest the solution for this matter later on this thesis The researchers Tam and Le (10) mentioned also about the effect of lack of training to the working environment Similar impacts with the evaluation system, the employee would feel depressed, as they have to their work without any standardized guidance, but they would get negative feedbacks if they made mistakes, even when they did exactly what their upper level taught them But in our company, with the current situation when the financial was not stable, Mr Toan admitted that they currently didnt have any spare fund to organize more trainings In fact, the upcoming policy of the company would be reducing the number of newly graduated employees For that, the author would not suggest any solution for this cause, for it was very difficult to convince the Board of Management to spend more money for more training in the incoming time Conclusion, after carefully choosing the cause that deeply impact in the company benefit, but also suitable to improve, the author would choose the real cause for our company is the weakness in the reward system VII ALTERNATIVE SOLUTIONS Proposed solution After having analyzed the main cause of the main problem “Weak evaluation system”, it was necessary that the company had to prepare the best solutions to fix the current problem First thing, the objective was to solve the main factors causing the weakness in our manager’s leadership and management skill The system lacked recognition of employees’ endeavor, didn’t have adequate rewards so could not evoke job motivation As mentioned above, revising the current reward system was necessary to make employees believed that they are members of a good organization; thus give them better understanding and full confidence in their jobs, and boot their pride and motivation at work In addition, according to Wilson B (11), rewards are described as “fairly differentiating between the different levels of individual contribution”; especially, in terms of involvement, the ideal opportunities when developing a reward structure are found in the writing of job descriptions and in the job evaluation process Author: Pham Nguyen Khanh – ISB MBA9 | 32 Hence, it was needed to have the revise of job description before the managers want to develop any pay structure Secondly, from the previous analyses, it could be noticed that the company has suffered the consequences of their performance due to the low motivation of their managers and workers – one of the direct causes of the job site accidents According to Kepkebut D (22), if company has poor or no evaluation system, it would deeply reduce the performance of employees, because if they would feel discouraged, their motivation and innovations to cooperate and complete the common objective with others would certainly be impacted One should recognize that for every employee, an appropriate rewards distribution system signals management’s emphasis on employee evaluation, Datta P (23) Moreover, Howard LW and Dougherty TW (24) remark that “performance appraisal systems are more effective when there is a connection between the results of the performance management system and the reward system of the organization”, emphasis the necessity of our new evaluation system Thus, the revised evaluation system must contain these two important points The author did some researches and came up with various studies about how to build an effective evaluation system Some evaluation methods can apply for our company: i 360-degree feedback: This method provided by Vidya R (25), in which everyone on the company should have their right to feedback to each other, not only the upper level to their subordinates Feedback from inside the company such as director level, manager level, workers level, also from outside as customers or even their competitor should be collected and using as evaluation materials ii Force distribution method: By the study of Lawler III (26), the performance ranks would be divided as various rank and each rank consists a fix percentage for every department, usually should be A: outstanding performance (10%), B: above average (30%), C: average (40%), D: barely done (15%), E: not meet work requirement Nowadays, this method is widely used in various FDI companies, and begins to spread among Vietnamese companies as a good method iii Management by Objective method (MBO): According to Hayes (27), MBO is a management method that aims to promote the quality output of a company by clearly defining objectives that are agreed to by both management and employees According to Author: Pham Nguyen Khanh – ISB MBA9 | 33 the theory, having a say in goal setting and action plans encourages participation and commitment among employees, as well as aligning objectives across the organization Evaluation and solution decision: The author did the evaluation of advantages and disadvantages between each method, generalized the table below: Appraisal Advantages Disadvantages method 360-degree feedback Cost (the most economical propose)  Simple and easy to implement  Inadequate feedback 200M VND for hiring  Increase distrust in feedback agency,  Focus on employee’s opinions the managers  Costly, for it is not  Increases Self- easy to conduct a Awareness reliable feedback  Builds Confidence and including create feedback form and one year of consultant form Boosts Morale Force distribution method  Simple and consistent  Encourage methodology  Increased productivity and identify key courses for HR competition employees to become specialist spirit and make them  Easy to conduct training for each rank unhealthy  Limits employee’s employees 50M VND for training demoralized  Can limit creativity  Sound and reliable reward Management  Encourages managers by Objective to detail planning  Costly and Time Consuming Process method  Low level workers  Hard to training and (MBO) feel to be more implement connected with  Long Gestation company’s goal Author: Pham Nguyen Khanh – ISB MBA9 | Period: it is take 3-5 650M VND for a full package, including detail planning and objectives for a long program (3-5 years) Since this method can only work well with 34 Improves their morale years for a reliable outsource specialists, it and commitment result is the most costly and  Maximum Utilization time consuming of Human Resources An analysis of the Board of Director with the author’s proposal has been conduct to discuss about the most effective method and also should be adequate to implement to our company As the result, the BOD decided to choose to combine the 360-degree feedback and the Force distribution method to forming the new evaluation system, with details as below: Appraiser Director, manager, workers, self-assessment, employee feedback each other (managers to workers, workers to managers, managers to director…) Quantitative: Production output, defective rate, time consuming, number of errors,… KPI Qualitative: Cooperation, Problem solving skill, Working attitude,… KPI tracker Tracking by HR and managing by director Periodic Monthly, quarterly and yearly Reward Salary increase, promotion, bonuses, training, recognition,… Action plan: Since that we have opted for the solution, an action plan with details must be made with a costs budget Some requirements must be archived are listed below:  A well-defined description of the goal to be achieved  Tasks/ steps that need to be carried out to reach the goal  People who will be in charge of carrying out each task  When will these tasks be completed (deadlines and milestones)  Resources needed to complete the tasks (cost distribution) Author: Pham Nguyen Khanh – ISB MBA9 | 35 The author proposed a schedule action plan which was most suitable for the company operation: No Task description Agency selection for 360 degree method Select courses & training HR for Forced distribution Design new evaluation system Setup KPI and feedback form First month trial phase (at HR Dept) Corrective and follow up action KPI data analysis (trial phase) & report Official phase for whole company KPI tracking & feedback receive KPI data analysis (official phase) & 10 report to Director Quartely nomination (reward and 11 promotion) Person in charge Duration HR dept, Director, month Financial Dept, (Week 1-4) HR dept,Financial Dept HR dept, Director, Financial Dept, HR dept, Director, Production HR dept, Director, Agency HR dept, Director, Agency HR dept, Director, Agency HR dept, Director, Production HR dept, Production month (Week 1-4) month (Week 1-4) month (Week 5-8) month (Week 9-12) month (Week 13-16) week (Week 17-18) HR dept, Director, Production managers, Agency HR dept, Director, Production managers Monthly (the last week of the month) Daily Weekly (every Friday) Quartely Year end nomination HR dept, Director, (reward and Production 12 promotion) managers Yearly Cost implement estimated (million VND) WEEK 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 50 50 25 25 10 10 10 20 10 40 Depend on company's BOD Depend on company's BOD Figure: Action plan time line and budget of costs to be implemented Author: Pham Nguyen Khanh – ISB MBA9 | 36 41 42 43 44 45 46 Expected outcome: The main purpose of this plan was to increase the company benefit after tax It was expected that it could be attained by reducing the operation costs and costs of goods sold The objective was to look solutions for two important factors: the defective rate of unqualified goods and the material waste Take a look at the budget and the benefit of the suggested solution:  The total budget for the system should be maximum 250M VND for both methods  Expected costs saving: 20% operating cost and 2% cost of goods sold One can see the budget is small compared to the expected outcome that company can get from this new evaluation system On top of that, there’re various nonmonetary benefits that will affects all the employees, including both the managers and workers, such as job motivation and higher loyalty, low turnover rate which can also reduce the training cost The author generalized the expected income statement for the year 2020, assuming the increase revenue rate equally to the average of the latest years (roundly 15%) Billion VND 2018 2019 2020 (without new 2020 (with new evaluation system) evaluation system) Value % revenue Value % revenue Revenue 6.649,0 7.646,4 8.793,3 8.793,3 Cost of goods sold 6.228,0 7.162,2 8.236,5 93,66% 8.072,5 91,8% Operating cost 27,2 42,8 49,2 0,55% 25,05 0,28% Selling expenses 23,6 27,1 31,2 0,35% 31,2 0,35% Other expenses 61,2 70,4 80,9 0,92% 93,04 1,06% Net operating profit 299,0 343,9 395,4 4,49% 571,6 6,5% Net profit 277,0 318,6 366,3 4,17% 547,6 6,22% As expected, with the budget spends 250 million VND, over a year, the percentage of net profit would be increased for nearly 200 billion VND, which is 6,22% of revenue instead of Author: Pham Nguyen Khanh – ISB MBA9 | 37 4,17% of revenue without the new evaluation system This should be concluded the benefits of our project VIII SUPPORTING DOCUMENTS Interview Guide Interview Mr Nguyễn Bá Toàn – Vice director of the company, to find more information about the accident happened due to the mistakes made by workers in the production Personal information a) Name: Nguyễn Bá Toàn b) Title: Vice director – in charge of production c) Years of experience: 15 years at Pomina Steel, 20 year in steel industry Type of interview: a) In-depth interview with open ended questions b) Main purpose: Gather information and further knowledge about the company situation for a suitable solution of the symptom Content of interview: Q1 What would you think about the situation when your company suffers an undeniable decrease in net profit? “The situation is not really good right now, the company suffers a drop of net profit It is a serious problem that needs to be fixed in short-term Right now, the Trade war between USA and China has reached its peak after the USA applies the 25% taxes on the steel products I hope the situation could become a good opportunity for our company and also for the steel industry of Vietnam.” Q2 For the accidents that happened lately, namely the accident that happened at the Pomina Steel factory, will it affect directly your company? And what are the reasons for this accident? “This unfortunate accident happened right in the middle of the Trade war, an undeniable problem that we have to admit and consider as an important lesson It happened because the workers didn’t follow strictly the manufacturing safety rules, and the managers didn’t put enough Author: Pham Nguyen Khanh – ISB MBA9 | 38 attention for controlling the process In details, in the process of moving the steel furnace from the refined position to the position of pouring steel into the mold, the workers did not cover the furnace The moving process created vibrations that caused a large amount of steel spilled from the furnace mouth into the cold insulation brick floor The heat of the steel when pouring on the cold tile floor creates a reaction, causing explosions and hot steel splashing around The mistake was made because the workers wanted to pour the steel batch directly in the casting mold which was immediately adjacent to save time This was a big mistake of our workers It was the period to change shifts so the managers wanted to finish the job quickly and made a short cut And that wasn’t conformed with the company standard procedure, and that’s why the accident happened” Fortunately, there wasn’t any casualty like the accident in 2014, but consequently, the Pomina factory had to shut down for repairment from April to October 2019, causing a shortage of products We didn’t have enough finished steel to deliver to our customers while we still have to pay for the all production costs, that caused the loss in our net profit of the 2nd quarter of 2019.” Q3 What were your company actions to reopen the manufacturing? “After the accident, we only had factories left that could continue to run, the Pomina and Pomina steel’s factories Clearly we couldn’t fulfill all the orders and have to cancel some Fortunately, the remaining factories are still in good condition, and our production would not be in the red-alert situation that could lead to bankruptcy in short term The repairing of the Pomina 2’s factory took place immediately, and in the October 2019, the factory could return to production The repairing took more than haft a year because almost the production line was damaged but it was so obsolete that we couldn’t find the needed materials and spare parts, so we had to import 95% of the devices In fact we know that to prevent these accidents to happen again we have to work for a solution We need to promote the manager’s management skill, strengthen the safety control system, or take better care of the worker’s spirit by raising their salary or more benefits But right now there is nothing that could be done at the moment ’” Q4 As far as I know, there are some accidents that happened, such as the explosion in 2014, and the missing radioactive-source, and now this accident Why many serious accidents Author: Pham Nguyen Khanh – ISB MBA9 | 39 would continuously happen in short term (less than years)? What would you to prevent more accidents happen in the future? “As I mentioned before, the biggest problem came from the workers and the managers, and right now what we need is an appropriated solution the solve this problem” THANK AND CLOSE Survey Table  Survey No.1: Personal information: a) Name: …………………… b) Title: Supervisor/Engineer/Worker c) Years of experience: …………………… Type of interview: a) Survey with closed question b) Number of samples: 80 c) Main purpose: Gather information and further knowledge about main problem d) Survey form: No Survey Question Answered How long have you been at 1-3 years 3-7 years More than years your current position? What is the level/title of your Regular worker Engineer Supervisor current position? What you think are the Job stress factors that caused the accident? Author: Pham Nguyen Khanh – ISB MBA9 | Supervisor’s Insufficient working mistake equipment / machinery 40 Old If the answer for the 3rd Hard working Lack question was “Job stress”, conditions answer following question: of Wages and benefits supports from supervisors What make you feel stress about your current work? If the answer for the 3rd Pushing work Negative Do not giving question was “Lack of effects necessary instruction/ Supervisor support”, answer (Yelling, inspiration to work following question: Ignoring, ) How you feel about your current direct supervisor? If the answer for the 3rd Regularly Often Seldom question was “Insufficient working equipment/Old machinery”, answer following question: How often does the company replace equipment, you have regularly training on working procedure?  Survey No.2: Personal information: a) Name: …………………… b) Title: Supervisor c) Years of experience: …………………… Type of interview: e) Survey with closed question f) Number of samples: 23 g) Main purpose: Gather information and further knowledge about main cause Author: Pham Nguyen Khanh – ISB MBA9 | 41 h) Survey form: No Survey Question Answered What would you think about Insufficient your company’s evaluation tracking system evaluation Company policy No KPI Subjective Acceptable system? Does your company have appropriate training for training Appropriate opportunity leadership and management? What is your opinion about Inadequate Insufficient your company’s SWI? Product standard standard Acceptable work instructions Do you feel motivated after Less career Lack of reward Keep motivate working here for a few years? improvement and recognition If not, what are your opinions? 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CASE OF POMINA STEEL JSC MASTER OF BUSINESS ADMINISTRATION SUPERVISOR: Tran Vi Ho Chi Minh City – Year 20 20 INCREASE THE PROFITABILITY BY IMPROVING SUPERVISOR’S MANAGEMENT AND LEADERSHIP SKILLS –. .. Cost of goods sold 6 .22 8,0 7.1 62, 2 8 .23 6,5 93,66% 8.0 72, 5 91,8% Operating cost 27 ,2 42, 8 49 ,2 0,55% 25 ,05 0 ,28 % Selling expenses 23 ,6 27 ,1 31 ,2 0,35% 31 ,2 0,35% Other expenses 61 ,2 70,4 80,9 0, 92% ... however they didn’t have of management and leadership skill On conclusion, the real problem of the negative net profit in the year 20 19 of the company could come from of the “Lack of supervisor’s management