Dissatisfaction on commision of pos salesman in ho chi minh city at mirae asset finance company (vietnam)

UNIVERSITY OF ECONOMICS HO CHI MINH CITY International School of Business Nguyen Thi Hoang My Thesis DISSATISFACTION ON COMMISION OF POS SALESMAN IN HOCHIMINH CITY AT MIRAE ASSET FINANCE COMPANY (VIETNAM) ………………………… MASTER OF BUSINESS ADMINISTRATION SUPERVISOR: ASSOC P TRAN HA MINH QUAN Hochiminh City – 2021 SUPERVISOR’S CONFIRMATION Student name: NGUYEN THI HOANG MY Student ID: 22170029 Thesis title: DISSATISFACTION ON COMMISSION OF POS SALESMAN IN HOCHIMINH CITY AT MIRAE ASSET FINANCE COMPANY (VIETNAM) I would like to confirm that this paper has met the following requirements:  Completed content  Editing requirements Other comments: Overall, this paper:  Meet requirement for submission  Not meet requirement for submission Supervisor’s Signature TABLE OF CONTENTS EXECUTIVE SUMMARY LIST OF FIGURES LIST OF TABLES ABBREVIATION CHAPTER 1: COMPANY BACKGROUND 1.1 1.2 1.3 1.4 1.5 1.6 1.7 1.8 1.9 HISTORY BUSINESS PERFORMANCE 11 VISION 12 MISSION 13 PRODUCT 13 ORGANIZATION CHART OF MAFC 15 INSTALLMENT LOAN DEPARTMENT (POS DEPT.) 16 TARGET CUSTOMER 16 MARKET SHARE 17 CHAPTER 2: PROBLEM INDENTIFICATION 18 2.1 PROBLEM CONTEXT 18 2.2 SYMPTOM: 19 2.3 POTENTIAL PROBLEMS 21 2.3.1 Incompatible work 22 2.3.2 Poor performance of Leadership 25 2.3.3 Dissatisfaction on commission 27 2.4 HIGH COMPETITION 30 2.5 MAIN PROBLEM VALIDATION 31 CONCLUSION 33 2.6 PROBLEM CONSEQUENCES 33 2.6.1 Impact on Individuals: Lack of opportunities for promotions 34 2.6.2 Impact on Organization: High turnover rate: 34 CHAPTER 3: CAUSE OF PROBLEM 36 3.1 POTENTIAL CAUSES 36 3.1.1 Miscommunication on commision policy of Salesman 36 3.1.2 Low of competition in commission policy 36 3.1.3 Poor salesman skills 37 3.2 REAL CAUSES: 37 3.2.1 Miscommunication on commision policy of POS Salesman 38 3.2.2 Low of competition on commission policy of POS Salesman 39 3.2.3 Poor salesman skills 40 3.3 MAIN CAUSE VALIDATION 41 CHAPTER 4: SOLUTION 44 4.1 ALTERNATIVE SOLUTION 1: BUILDING AN ORIENTATION TRAINING COURSE FOR POS SALESMAN ABOUT COMMISION POLICY 44 4.2 ALTERNATIVE SOLUTION2: BUILDING A TWO-WAY COMMUNICATION SYSTEM 46 4.3 ALTERNATIVE SOLUTION 3: PROVIDING A PAY STATEMENT OF POS SALESMAN’S COMMISSION 48 4.4 SOLUTION SELECTION 51 CHAPTER 5: ACTION PLAN 53 CHAPTER 6: CONCLUSION 56 CHAPTER 7: SUPPORTING INFORMATION 57 7.1 METHODOLOGY 57 7.2 POPULATION AND SAMPLING 57 7.3 INTERVIEW TRANSCRIPTS: 58 7.3.1 Potential Problems Interview Transcripts: 58 7.3.2 Problem Validation Interview Transcripts: 64 7.3.3 Cause Validation Interview Transcripts: 66 7.3.4 Solution Justification Interview Transcript 69 7.4 COMMISSION POLICY FOR POS SALESMAN 71 REFERENCE 74 EXECUTIVE SUMMARY Nowadays, buying and paying monthly installments is no longer strange to Vietnamese consumers High demand leads to abundant supply There are dozens of financial companies emerging with strong capital and diverse competitive strategies Along with that is the talent attraction strategy that companies build to own a dynamic workforce to increase the competitiveness of the business compared to the competition Mirae Asset Finance Company (Vietnam) is not a new brand name in the financial industry, but it is a new comer in the field of consumer installment loans Its Installment Loan department was only established years ago compared to the company's 10-year history Currently, when Installment Loan department is trying to expand its sales system by increasing human resources, the turnover rate of POS salesman in Hochiminh region is too high It shows that a large number of credits consultants in this area joined the company and then left The purpose of this thesis to find out the problems of Installment Loan department in Hochiminh city to get the situation and solve them This report uses both of primary data and secondary research to analyze as well as conduct in-depth interviews with POS salesman and managers of Installment Loan department It also bases on available literatures to verify some possible problems which can be occurred From that, the thesis continuous to evaluate potential causes and combine with the MAFC's context to find out the real cause that are really existing in the firm Finally, with comments of managers, thesis come to conclusion To sum up, the thesis finds out that Dissatisfaction on commission is the main problem of high voluntary turnover rate of POS salesman in Hochiminh city at Installment Loan department of Mirae Asset Finance Company (Vietnam) The main cause which leads to this problem is the Miscommunication on commission And the best solution is building an orientation training course about commission policy for all staffs including new and current POS salesman This solution can improve the satisfaction of POS salesman in Hochiminh city about their commission and therefore, it increases POS salesman's productivity which get higher revenue for the company LIST OF FIGURES Figure 1.1: Map of MAFG’s network (9) Figure 1.2: All area of business in MAFG .(10) Figure 1.3: History and Milestone of MAFC (10) Figure 1.4: Customer Growth of MAFC (11) Figure 1.5: ASEAN Business Award 2020 Combating Covid – 19 (12) Figure 1.6: Four core values of MAFC (12) Figure 1.7: Map products of MAFC (13) Figure 1.8: Progress of a CDL/TWL (14) Figure 1.9: Organization chart of MAFC (15) Figure 1.10: Structure of Installment Loan Department (16) Figure 1.11: Market share of finance companies in Vietnam (2018 – 2019) (17) Figure 2.1: Average Turnover Rate by Industry .(19) Figure 2.2: Voluntary turnover rate of POS Salesman in POS – HCM (21) Figure 2.3: Reasons for resignation of POS salesman – Source: HR department (23) Figure 2.4: Initial causes and effects map (30) Figure 2.5: Updated causes and effects map (31) Figure 3.1: Complaints of POS salesmen about commission (2019 – 2020) (38) Figure 3.2: Fish born map (41) Figure 3.3: Ideas of POS salesman for main factor make their dissatisfaction on commission (42) Figure 3.4: Final cause and effect map .(43) Figure 4.1: The Kirkpatrick's Four-Level Training Evaluation Model (44) Figure 4.2: Model of a Proposed Two – way communication system at MAFC (47) Figure 4.3: Proposed interface of the two – way communication system at MAFC (47) Figure 4.4: Current pay statement provided to POS salesman (49) Figure 4.5: Form of detailed commission on communication system (50) Figure 4.6: Proposed Change in Format of Payment Statements for POS salesman .(51) LIST OF TABLES Table 2.1: Number of POS Salesman in Hochiminh from 2018 to 2020 - Source: Installment Loan dept (20) Table 2.2: Voluntary turnover rate of POS Salesman in Hochiminh from 2018 to 2020 - Source: HR dept .(20) Table 2.3: Transcripts interview with Mr Minh and Ms Ngan to validate main problem (32) Table 3.1: Number of complaints’ POS Salesmen in Hochiminh from 2019 to 2020 - Source: Installment Loan dept (38) Table 3.2: Commission in comparison among rivals .(40) Table 4.1: The costs of orientation training course about commission policy for POS salesman (46) Table 4.2: The cost of building a pay statements (48) Table 4.3: Solution comparison (51) Table 5.1: Action plan of orientation training course .(55) Table 7.1: Interview transcript with ASM – Mr Minh for potential problems (59) Table 7.2: Interview transcript with Ms Nguyen Thi Van Anh - POS salesman of POS - HCM for potential problems (60) Table 7.3: Interview transcript with Ms Pham Thi Thanh Loan - POS salesman of POS - HCM for potential problems .(61) Table 7.4: Interview transcript with Mr Nguyen Thanh Binh - POS salesman of POS - HCM for potential problems (61) Table 7.5: Interview transcript with Mr Nguyen Cong Duy - POS salesman of POS - HCM for potential problems (62) Table 7.6: Interview transcript with Mr La Thanh Long - POS salesman of POS - HCM for potential problems (63) Table 7.7: Interview transcript with Mr Le Van Tien - POS salesman of POS HCM for potential problems (63) Table 7.8: Interview transcript with Mr Nguyen Chi Dung - POS Sales Supervisor of POS - HCM for potential problems .(64) Table 7.9: Problem Evaluation Interview Transcript (65) Table 7.10: Interview transcript with POS Sales Admin Supervior (66) Table 7.11: Interview transcript with Mr Minh – ASM about potential causes (67) Table 7.12: Survey for the main cause with 100 POS Salesmen in Hochiminh city (68) Table 7.13: Main Causes Evaluation Interview Transcript (68) Table 7.14: Interview transcript with Mr Phuoc about alternative solution (69) Table 7.15: Interview transcript with Mr Minh – ASM about alternative solution (70) Table 7.16: Alternative solution and solution selection interview transcript (70) Table 7.17: Survey for the final solution with POS Sales supervisors in Hochiminh city (71) ABBREVIATION Index Abbreviation Description MAFG Mirae Asset Financial Group DIG Digital Innovation Group MAFC Mirae Asset Financial Company (Vietnam) CDL Consumer Durable Loan TWL Two-Wheel Loan (TWL) POS dept Installment Loan Department POS Point of Sales UND Underwriting BOD Board of Directors 10 DSR Direct sales 11 HOD Head of department 12 SPL Service Packet Loan 13 VTR Voluntary Turnover Rate 14 ITR Involuntary Turnover Rate 15 C&B Compensation and Benefits ...SUPERVISOR’S CONFIRMATION Student name: NGUYEN THI HOANG MY Student ID: 22170029 Thesis title: DISSATISFACTION ON COMMISSION OF POS SALESMAN IN HOCHIMINH CITY AT MIRAE ASSET FINANCE COMPANY (VIETNAM). .. thesis come to conclusion To sum up, the thesis finds out that Dissatisfaction on commission is the main problem of high voluntary turnover rate of POS salesman in Hochiminh city at Installment Loan... solution with POS Sales supervisors in Hochiminh city (71) ABBREVIATION Index Abbreviation Description MAFG Mirae Asset Financial Group DIG Digital Innovation Group MAFC Mirae Asset Financial