UNIVERSITY OF ECONOMICS HO CHI MINH CITY International School of Business ------------------------------ Ly Bich Van SOLUTIONS FOR LACK OF EMPOWERMENT AT VEAS MASTER OF BUSINESS ADMINISTRATION Ho Chi Minh City – Year 2019 LUAN VAN CHAT LUONG download : add luanvanchat@agmail.com UNIVERSITY OF ECONOMICS HO CHI MINH CITY International School of Business ------------------------------ Ly Bich Van SOLUTIONS FOR LACK OF EMPOWERMENT AT VEAS MASTER OF BUSINESS ADMINISTRATION SUPERVISOR: DR. LE THI THANH XUAN Ho Chi Minh City – Year 2019 LUAN VAN CHAT LUONG download : add luanvanchat@agmail.com Table of Contents EXECUTIVE SUMMARY. 3 CHAPTER 2: PROBLEM ANALYSIS. Symptom 1 – Employee dissatisfaction.
Symptom 2 – High voluntary turnover rate. 10 CHAPTER 3: PROBLEM IDENTIFICATION. Relationship at workplace. Initial Symptom-Potential Problem map.
Loss of experience. Loss of customers. 30 CHAPTER 5: CAUSE IDENTIFICATION. Initial Cause-Effect map.
Final Cause-Effect map. 40 CHAPTER 6: ALTERNATIVE SOLUTIONS & ACTION PLANS. Change policies and procedures. Increase salary and benefit.
Change leadership style. 53 LUAN VAN CHAT LUONG download : add luanvanchat@agmail.com CHAPTER 8: SUPPORTING INFORMATION. 96 List of Figures Figure 1. Organizational structure of VEAS.
Percentage of employees agree that they feel satisfied when working at company. Percentage of employees agree that they want to stay at the company for a long time 10 Figure 2. VEAS’s turnover rate from 2016 to 2018. VEAS’s turnover rate among departments in 2018.
Reasons for employee dissatisfaction. Sales employee’s opinion for relationship at workplace. Sales employee’s opinion for salary. Sales employee’s opinion for the empowerment.
Average time to hire new employees at VEAS. Time to hire new employees for Sales Department. VEAS's tangible cost in 2018. Departure cost at VEAS in 2018.
Replacement cost at VEAS in 2018. Percentage of sales department’s employees agree that they get motivation at work. Compliance ratio between departments at VEAS in 2018. Potential causes of lack of empowerment at VEAS.
The percentage of employees agrees to change from transactional to transformational leadership style. Employees’ opinion regarding to solution justification. 45 List of Tables Table 2. Number of employees participating in the survey.
Transformational leadership style. 43 LUAN VAN CHAT LUONG download : add luanvanchat@agmail.com EXECUTIVE SUMMARY This study was conducted at VEAS, in Ho Chi Minh City. VEAS is the company which specializes in holding international trade exhibitions, but it is facing the problem of high voluntary turnover rate and high percentage of dissatisfied employees. The purpose of research proposal is to find the causes and suggest possible solutions for company’s current issue.
It comprises of eight chapters, where the first chapter gives an overview of the company. In chapter two, three and four mention about problem analysis, problem identification and its consequences to the company. While chapter five figures out cause identification, some alternative solutions and action plans are clearly discussed in the next chapter. Conclusion of the research and supporting information are listed in the last two chapters.
The paper specifically stays focused on identifying and examining the causes and solutions of lacking of empowerment of VEAS. Both probability and non- probability sampling methods of data collection were employed in this study. A total number of 40 respondents will be assessed. Moreover, structured and unstructured questionnaires were used to get the information from selected departments of the organization.
Furthermore, personal observation and interviews will be applied in collecting information and presented in forms of percentage to show the relationship of the interviewees to find out the main cause of lacking of empowerment. The research paper thoroughly shows the current symptoms of VEAS which are strong dissatisfaction of employees and a really high voluntary turnover rate, especially at sales department who helps company to achieve revenue target. If it is not solved, bad consequences will considerably affect. Some potential problems are found out such as lack of empowerment, relationship at work place and unsatisfactory salary with the main problem is the first issue – lack of empowerment.
The study about the causes of problem was also conducted with two potential causes – policies and procedures and leadership style. Deep research has concluded that cumbersome policies and procedures are the main cause of VEAS. Some alternative solutions; therefore, are suggested to solve the problems like changing leadership style, changing 1 LUAN VAN CHAT LUONG download : add luanvanchat@agmail.com policies and procedures and increasing salary and benefit. As a result, changing leadership style is recommended to implement based on company resources, its effective result and time to deploy.
2 LUAN VAN CHAT LUONG download : add luanvanchat@agmail.com CHAPTER 1: INTRODUCTION Minh Vi Exhibition and Advertisement Services Co. (VEAS) is one of the key International Exhibitions and Business to Business Conferences Organizers in South East Asia with the company head office in Tan Binh District, Ho Chi Minh City – Vietnam and possesses representative offices in the region, including Myanmar, Thailand and Cambodia. VEAS was founded in 2007. It has successfully accomplished and organized many stunning corporate regional events, which has opened various potential opportunities for different regional and international companies.
VEAS plays an important and fundamental role in building the corporate connections and convincing establishments for partnership between Vietnamese and International enterprises through their provided dedication and professional services and solutions. VEAS’s services cover a large variety of sectors from agriculture, livestock, aquaculture, beauty and aesthetics, pharmaceutics to coatings, paper, rubber and tyre, plastics, garment and textile and many more. The company has clear vision and values which indicate that its dedication would bring the customers and partners valuable events where they can get memorable experience and long-term benefits. Moreover, the organization’s aim is to provide its related parties with opportunities for recognizing market potentials through latest market and technology trends, meeting various business partners and promoting their cooperation.
Specializing in enhancing local and global business cooperation through interactive events, VEAS is highly appreciated to bring professionalism, quality and innovative ideas to its clients from conception to execution. The company plays a key role as an international exhibition management and organizer, business to business events and professional seminar conference management and organizer. VEAS provides platforms for investors, customers and vendors to connect, exchange information as well as expand their market. Remarkably, what makes company special 3 LUAN VAN CHAT LUONG download : add luanvanchat@agmail.com when accompanying with clients is its diversity in professional services.
At VEAS, people provide events from various sectors to meet diverse clients’ demands including personal and healthcare industry, agricultural industry, paper – rubber – plastics – coating industry, industrial production and so on. Some featured events can be listed down such as Ildex Vietnam – the biannual large scale exhibition where local and international firms experience new technology and update latest market trends of livestock industry; Cosmobeaute Vietnam – the largest beauty show in Vietnam with more than 10-year long standing history and the presence of premium brands from over the world; HortEx Vietnam – the annual large scale exhibition where local and international firms experience new technology and update latest market trends of horticultural and floricultural production and processing technology, the most promising sectors of the Vietnamese economy. In addition, the company is also successful abroad with the series of biggest international exhibition for agriculture industry in Myanmar and Cambodia where enterprises can explore business opportunities and achieve better market understanding or the largest international beauty trade fair in Myanmar and Cambodia to bring domestic and international enterprises in cosmetics-related industries together for networking and expanding businesses. In general, VEAS is making efforts to raise the bar through its continuous improvements on professional services.
The business has successfully organized more than 500 events with over 9,000 exhibitors from around 50 countries and attracting some 350,000 local and international visitors since its establishment. The company has currently kept strong relationship with approximately 15 well-known partners in the similar industry from China, Thailand, Malaysia, Korea, India, the Netherlands, Taiwan and Turkey. VEAS has many trade customers including exhibitors and visitors, partners, suppliers for each exhibition in different industries. The company always tries to develop the current holding exhibition and find the new partners to co-organizer new 4 LUAN VAN CHAT LUONG download : add luanvanchat@agmail.com exhibition in new industry to meet the demands of customers and requirements from the market.
Board of Directors Sales Operation – Marketing Human resources Finance – Support Department Technical Department & Administration Accounting Department Department Department Department Marketing Marketing Content Manager Executive Marketing Project Project Accounting Team 1 Team 2 Manager Project Project Operation Accountant Manager Manager Manager Project Project Operation Supervisor Supervisor Supervisor Project Project Operation Executive Executive Executive Figure 1. Organizational structure of VEAS (Source: Company’s report) VEAS is a family-owned business, but it owns young, talented and experienced employees working in meetings, incentives, conferences and exhibitions (MICE) industry. Therefore, although there are around 30 employees, they all work well together to support for the ambitions and success of company. The organizational structure of VEAS is separated in hierarchical level with the board of directors – highest level including director and vice director.
Below are different teams who are 5 LUAN VAN CHAT LUONG download : add luanvanchat@agmail.com in charge for different tasks to support for the exhibitions. The main team who takes the largest responsibilities for the final results of each exhibition is project team or sales team. In the past, there were 4 project teams which were called project team 1, project team 2, project team 3 and business development team. While the first 3 teams were in charge of the company’s current exhibitions, the business development team tried to support the organization to develop more new exhibitions.
However, because of some adjustment of the organization structure, there are only two project teams now and each team has 5 or 6 members managing some specific exhibitions and the director will be the one who will decide to open new exhibition. The project manager will be the main contact for each team, and then there are project supervisor and project executives. Their duties are to find customers to meet the target revenues and manage for the whole shows. The next two teams supporting the most for project teams are marketing team and operation team.
Marketing team has five members with the marketing manager, marketing executives and content marketing to help for the marketing materials, social networks and so on to take the most advantages of these channels to promote for the company’s events. Operation team; however, will be in charge for designing, constructing booths and working mainly with constructors when onsite with the operation manager on top and below are operation supervisor and operation executives. Moreover, there is support team or considered as call center to send the invitation email and make phone call to introduce the event to customers and try to persuade them to participate the events or visit the exhibitions. Other last teams which are also important are human resource (HR) – administration team and accounting team.
The former team includes 1 HR and 1 administrator. The latter team includes 4 members which are accounting manager and accountants which support in general finance and operation cash. The assignment of HR is to recruit and find suitable candidates for vacant positions. In addition, administrator does general tasks and supports the remaining teams when they require for stationery or other stuff.
In 2018, there are a total of 40 employees in VEAS and the number of employees in sales department is 11 people which accounts for 27. The company’s advantages are the customer-oriented service, professional service 6 LUAN VAN CHAT LUONG download : add luanvanchat@agmail.com provided, and especially B2B matchmaking service. Direct competitors of VEAS are companies who organize the exhibitions in the same industry as VEAS does such as UBM. UBM has two largest beauty exhibitions that directly compete with Cosmobeaute Vietnam of VEAS.