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MINISTRY OF EDUCATION AND TRAINING UNIVERSITY OF ECONOMICS HO CHI MINH CITY oOo PHAM HUU CHINH THE EFFECT OF WORKPLACE COACHING ON EMPLOYEE PERFORMANCE: THE CASE OF TRI AN FACTORY, NESTLÉ VIETNAM EXECUTIVE MASTER OF BUSINESS ADMINISTRATION HO CHI MINH CITY – 2018 MINISTRY OF EDUCATION AND TRAINING UNIVERSITY OF ECONOMICS HO CHI MINH CITY oOo PHAM HUU CHINH THE EFFECT OF WORKPLACE COACHING ON EMPLOYEE PERFORMANCE: THE CASE OF TRI AN FACTORY, NESTLÉ VIETNAM Major: Business Administration (Executive Master of Business Administration) Code: 8340101 ECONOMIC MASTER THESIS SUPERVISOR: Prof NGUYEN DONG PHONG, Ph.D HO CHI MINH CITY – 2018 STATEMENT OF ORIGINALITY I confirm that this master thesis is based on my independent research The figures and results presented in this thesis are real data from survey conducted by the author with assistance of employees of Tri An Factory (TAF), Nestlé Vietnam Company Proposals, solutions and recommendations were drawn from this study based on operation evaluation as well as on comments and advices of TAF Management Board I am fully responsible for eventual errors or fault caused Author of the thesis Pham Huu Chinh TABLE OF CONTENT LIST OF FIGURES LIST OF TABLES CHAPTER ONE INTRODUCTION 1.1 Introduction 1.2 About Nestlé Group, Nestlé Vietnam Company and Tri An Factory 1.3 Problem statement 1.4 Objective of the study 1.5 Research questions 1.6 Subjects of the study 1.7 Scope and limitation of the study 1.8 Framework of the study 1.9 Research structure CHAPTER TWO 11 LITERATURE REVIEW 11 2.1 Introduction 11 2.2 Workplace Coaching 11 2.2.1 The origin and concept of coaching 11 2.2.2 Definitions and essential principles of coaching 12 2.2.3 Why workplace coaching? 14 2.2.4 Some key factors for coaching effectiveness 15 2.2.4.1 Building the trustworthy coach-coachee relationship 15 2.2.4.2 Providing needed support to employees 16 2.2.4.3 Enhancing employee awareness 17 2.2.4.4 Promoting employee motivation 19 2.3 Employee performance 20 2.4 Relationship between workplace coach and employee performance 22 2.5 Summary 23 CHAPTER THREE 25 RESEARCH METHODS 25 3.1 Introduction 25 3.2 Research Design 25 3.3 Target Population 25 3.4 Sample Size and Sampling approach 25 3.5 Questionnaire 26 3.5.1 Common sources of error 26 3.5.2 Construction of the questionnaire 27 3.5.3 Pre-testing and validation 28 3.6 Validity 28 3.7 Reliability 28 3.8 Data Collection Method 29 3.9 Methods of Data Analysis 30 3.10 Ethical Considerations 31 3.11 Summary 31 CHAPTER FOUR 32 ANALYSIS OF RESULTS 32 4.1 Introduction 32 4.2 Sample Description 32 4.3 Evaluate the reliability of measurement scales 36 4.4 Critical factors of the coaching effectiveness 37 4.4.1 Coach – Coachee Relationship 37 4.4.2 Employee Awareness 39 4.4.3 Employee Motivation 41 4.4.4 Support given to employees 42 4.4.5 Summary 43 4.5 The Effect of Workplace Coaching on Employee Performance 44 4.5.1 Employee performance 44 4.5.2 Correlation between workplace coaching effectiveness and employee performance 46 4.6 Management discussion about the findings 49 4.7 Summary 51 CHAPTER FIVE 53 CONCLUSION AND RECOMMENDATIONS 53 5.1 Conclusion of the study 53 5.2 Recommendations 54 5.3 Limitations and suggestions for future research 58 REFERENCES APPENDICES LIST OF FIGURES Figure 1.1: The relationship between dependent and independent variables Figure 4.1: Role of employees in coaching practices at TAF 34 Figure 4.2: Status of employee training about coaching 34 Figure 4.3: Response frequency about coach-coachee relationship 37 Figure 4.4: Employee responding to question CR2 38 Figure 4.5: Response frequency about employee awareness 39 Figure 4.6: Response frequency about employee motivation 41 Figure 4.7: Response frequency about support given in coaching 42 Figure 4.8: Response frequency about employee performance 44 LIST OF TABLES Table 4.1: Distribution of Demographic Information 33 Table 4.2: Employees who haven’t joined the training about coaching 35 Table 4.3: The reliability of measurement scales 36 Table 4.4: Detail results of relationship in coaching 38 Table 4.5: Detail results of employee awareness 40 Table 4.6: Detail results of employee motivation 41 Table 4.7: Detail results of support given to employees in coaching 43 Table 4.8: Employee performance results from coaching activities 45 Table 4.9: Key factors of workplace coaching effectiveness and employee performance 46 Table 4.10: Different demographic groups impacting to coaching 47 ABSTRACT The purpose of this study was to determine how the use of workplace coaching as a human management and development tool can facilitate improvements to employee performance and in turn providing a platform to increase the competitive advantage of the organization The study was carried out at Tri An Factory (TAF), Nestlé Vietnam company and it comprises of a literature review, which includes the concept and essential principles of coaching, some key drivers of effective coaching, the employee performance and the correlation between workplace coaching and employee performance A quantitative research approach was used for this study with the participation of 190 employees from all working positions within TAF The findings of the study revealed that workplace coaching is an effective human management and development tool at TAF and it has positive impacts on employee performance The key factors, which contributed to workplace coaching effectiveness, were building trustful coach-coachee relationship, enhancing the awareness and motivation of employees, and giving them the needed support The employee performance was determined by employee work productivity, product quality and customer satisfaction All were improved as the results of workplace coaching Whilst the study proved the effectiveness of workplace coaching and its positive impacts on employee performance, the findings also showed that there are opportunities for further improvements to workplace coaching at TAF The areas of improvements identified are using appropriate approach for each individual/ group based on their preference, promoting employee understanding about purposes and benefits of coaching, spending more time to coach employees, building criteria and using those to measure the effectiveness of coaching sessions CHAPTER ONE INTRODUCTION 1.1 Introduction In the present business environment, organizations are subjected to increased competition, fast-paced change, increased demands from customers and different stakeholders These factors are putting a huge pressure on organizations To compete and take the lead, companies are more conscious of their need of a competent, motivated and productive workforce which is considered as a distinctive and inimitable advantage Since the traditional employee development does not always deliver the desired results, organizations often use coaching as a way to develop employee selfconfidence, self-efficacy, and contribute to actions that create results (Passmore and Fillery-Travis, 2011) The reason behind this trend could be that coaching is about helping people to improve their performance not by telling them what to but by enabling them to learn how to change, making coaching a widely recognized tool Coaching is a well-established practice that researchers have defined in different ways According to Smither (2011) coaching “is a one-to-one learning and development intervention that uses a collaborative, reflective, goal-focused relationship to achieve professional outcomes that are valued by the coachee” (Smither, 2011, p.137) Grant (2001) defined coaching as a collaborative, solutionfocused, result-orientated systematic process, in which the coach facilitates the enhancement of the coachee’s performance in various domains and fosters selfdirected learning, goal attainment and personal growth of the coachee From a different angle, coaching is a term often related to the sports industry Athletes often pay astronomical wages to the best individuals in their field to coach them In most of these cases, the coach does not manage them or tell them what to but rather tries to get the best out of them by transforming physical and psychological strengths into competency The coach’s job is to support, guide and motivate the coachee to gain a better understanding of themselves in order to enable them to reach the peak of their capabilities (Whitmore, 2004) By applying this philosophy in workplace coaching, it can help individuals to realize their strengths and weaknesses Enabling them to find the answer to what works better for them rather than giving them the answers ready on the plate Coaching aims to empower people and help them to discover their potential abilities and talents instead of focusing on what they cannot (Wright, 2005) After all, coaching is about unlocking people’s potential with the intention to improve/maximize their performance (Whitmore, 2004); a coach does not teach but rather helps the coachee to learn Coaching can be a challenging endeavor for the coachee as well as the coach It is essential for the coach to have a clear understanding of their roles and responsibilities as well as being equipped with the desired behaviors and characteristics that can enable all parties involved to gain the best experience from the coaching sessions (Grant, 2006) Success of a coaching process heavily depends on the trustful relationships between the coach and the employee (Wu, Cheng and Huang, 2010) Thus while using coaching method, the coach first understands the cultural diversity of the individual employee (Serrat 2010) The cultural diversity such as religion, race, color, belief systems, gender, and ethnicity among others may considerably affect the coach and coachee relationships (Wilkesmann & Fischer, 2009) The outcome of coaching for employees includes enhanced self-awareness, enhanced knowledge and skills, greater motivation and morale, improved clarity about career direction, increased innovation which all lead to improved performance (Stolmack and Martin, 2011) Despite the global popularity of coaching, there is a shortage in the number of empirical studies exploring the effects of workplace coaching on employee performance More specifically, there is an absence of such studies in Vietnam, especially in the manufacturing sector The typical respondents being surveyed in those researches were mainly managers or coaches who have delivered the coaching sessions but not coachees who have received the coaching sessions Therefore, the purpose of this study is to examine some key factors linking workplace coaching to employee performance, through analyzing the perception of coaches and coachees The key factors investigated were the coach-coachee PHẠM HỮU CHÍNH Thư điện tử: phamhuu.chinh@vn.nestle.com Điện thoại: 0932726767 Nhà máy Trị An – Công ty TNHH Nestlé Việt Nam KCN Amata, TP Biên Hòa, Tỉnh Đồng Nai THƯ GIỚI THIỆU V/v: ĐỀ ÁN NGHIÊN CỨU THẠC SĨ ĐIỀU HÀNH Kính gửi đồng nghiệp, Hiện sinh viên sau đại học Trường Đại học kinh tế TP Hồ Chí Minh, tơi theo học lớp Thạc sĩ điều hành, chuyên ngành Quản trị, Là phần u cầu để hồn thành khóa học, thực đề tài nghiên cứu “Tác động huấn luyện đến hiệu công việc nhân viên” Để thực luận văn này, tiến hành khảo sát thông qua bảng câu hỏi hiệu công tác huấn luyện nhà máy Trị An, công ty TNHH Nestlé Việt Nam Sự tham gia bạn khảo sát hỗ trợ lớn cho tơi có đầy đủ thông tin liên quan đến đề tài từ giúp tơi thực nghiên cứu thành cơng Các thơng tin thu thập nhằm mục đích nghiên cứu tính bảo mật đảm bảo tuyệt đối Nếu bạn có câu hỏi nào, xin liên hệ với theo địa thư điện tử số điện thoại nêu Sự giúp đỡ bạn đánh giá cao Xin cảm ơn bạn nhiều Trân trọng Phạm Hữu Chính Appendix 2: Questionnaire QUESTIONNAIRE The Effect of Workplace Coaching on Employee Performance: The Case of Tri An Factory – Nestlé Vietnam Part A: Coaching at Tri An factory This section is related to current practices of workplace coaching and its impacts on employee performance at Tri An Factory (TAF) To what extent you agree with the following statements? Please stick a ‘√’ in the cell which you think it is the most appropriate answer next to the statement Kindly respond using the Point Likert Scale below Strongly Disagree Disagree Uncertain Agree Strongly Agree Question Statement No 01 02 03 04 05 06 07 Your evaluation I am convinced by the purpose and benefits of coaching The coach has helped employee to identify his/ her strengths and weaknesses The coach listens to employee actively and respectfully The coach challenges employee to find new and better ways of doing things The coach practices coaching in the daily routines to support employees The coach supports and develops employees by giving them space to learn by trial and error The coach tailors his/her approach to fit the preferences and needs of employee ...MINISTRY OF EDUCATION AND TRAINING UNIVERSITY OF ECONOMICS HO CHI MINH CITY oOo PHAM HUU CHINH THE EFFECT OF WORKPLACE COACHING ON EMPLOYEE PERFORMANCE: THE CASE OF TRI AN FACTORY,. .. literature on the concept of workplace coaching, the essential principles of coaching and its impacts on employee performance The literature also focuses on four key factors of workplace coaching effectiveness... and the way they perform their works Enhancing coaching effectiveness can lead to improvements of employee performance and it is vital to the success and sustainability of both organization and