UNIVERSITY OF ECONOMICS HO CHI MINH CITY International School of Business ------------------------------ Pham Thi Thuy Trang LOW EMPLOYEE WORK MOTIVATION: A CASE OF SOUTH TAX CONSULTING CO., LTD MASTER OF BUSINESS ADMINISTRATION Ho Chi Minh City – Year 2019 TIEU LUAN MOI download : skknchat@gmail.com UNIVERSITY OF ECONOMICS HO CHI MINH CITY International School of Business ------------------------------ Pham Thi Thuy Trang LOW EMPLOYEE WORK MOTIVATION: A CASE OF SOUTH TAX CONSULTING CO., LTD MASTER OF BUSINESS ADMINISTRATION SUPERVISOR: ASSOC. NGUYEN THI MAI TRANG Ho Chi Minh City – Year 2019 TIEU LUAN MOI download : skknchat@gmail.com Contents EXECUTIVE SUMMARY. 4 LIST OF TABLES. 5 LIST OF FIGURES .1 Initial cause and effect map .2 Employee with unqualified knowledge, skill and ability .3 Insufficient supervisor support .4 Low employee work motivation .3 Updated cause and effect map .4 Updated possible problems.2 Employee with unqualified knowledge, skill and ability .3 Insufficient supervisor support .4 Low employee work motivation.
Main problem definition and consequences .1 Main problem definition .2 Main problem consequences .1 No appreciation for job well done .1 No performance appraisal system.2 No compliment from manager for outstanding employee .2 No promotion and career advancement for current employee .1 Unqualified for mid level supervisor position .2 Insufficient trust from manager .3 Unpleasant work space .1 Poorly equipped office.2 Poorly designed office .3 Working office impacted by so much noise .1 Alternative solution 1: Investing in necessary equipment for working .2 Alternative solution 2: Redecorating the current office .3 Alternative solution 3: Renting new office. Change plan design. 59 1 TIEU LUAN MOI download : skknchat@gmail.3 Action plan implementation. 90 2 TIEU LUAN MOI download : skknchat@gmail.com EXECUTIVE SUMMARY Recently, the financial statement of South Tax Consulting Co., Ltd has experienced a drop in revenue.
This circumstance is mostly impacted by increasing in number of defection customers. Customers leaving South Tax Consulting Co., Ltd is mainly due to dissatisfaction with service quality that the company provided, in specific, inaccuracy in preparing accounting reports. In order to discover the issues that South Tax Consulting Co., Ltd is facing with, meeting with CEO of the company as well as interviewing relevant employee in accounting department and defection customers in 2018 has been implemented. Through interviewing relevant subjects, using data provided by the company and using related theory, main problem was identified as low employee work motivation.
Towards main problem of low employee work motivation, three potential causes have been found out are no appreciation for job well done, no promotion and career advancement for current employee and unpleasant work space. After analysis, main cause that chosen to solve is unpleasant work space. This study will focus on solution to solve this cause in order to help the company improve business performance. 3 TIEU LUAN MOI download : skknchat@gmail.com ACKNOWLEDGEMENT Firstly, I sincerely thank ISB for giving me useful knowledge which possibly applies to my study as well as support during the time of thesis.
Secondly, I would like to express my gratitude to my Supervisor - Assoc. Nguyen Thi Mai Trang who has supported me during the time doing this thesis. Without the guidance and support from Supervisor, my thesis can not be completed promptly. Thirdly, I am also grateful to members of South Tax Consulting Co., Ltd who showed patient and support to help me prepare this thesis.
Finally, I would like to express my deep sense of gratitude to my family members for sympathizing and encouraging me to complete my Master program. 4 TIEU LUAN MOI download : skknchat@gmail.ltd LIST OF TABLES Table 1. Fundamental information about competitors of South Tax Consulting Co., Ltd – March 2019 (Source: South Tax Consulting Co. Categories of service provided by South Tax Consulting Co., Ltd – March 2019 (Source: South Tax Consulting Co.
Revenue in each group of customer at South Tax Consulting Co., Ltd in 2018 (Source: South Tax Consulting Co. Fluctuation in number of micro trading customer of South Tax Consulting Co., Ltd in the period of 2014 - 2018 (Source: South Tax Consulting Co. Details about cases that inaccurate in tax reports in micro trading group – announced by tax authority in 2018 (Source: South Tax Consulting Co. Number of customers in each accountant‟s portfolio at STC in 2018 (Source: South Tax Consulting Co.
Measurement of average time to complete main task for accountant in South Tax Consulting Co. Details about experience of accountants in South Tax Consulting Co., Ltd – March 2019 (Source: South Tax Consulting Co. Assessment of knowledge, skill and ability of accountants in South Tax Consulting Co. Measurement of average time to complete main task for manager in South Tax Consulting Co.
Assessment of motivation of accountants in South Tax Consulting Co. Fluctuation in number of customers at South Tax Consulting Co., Ltd in 2014 – 2018 (Source: South Tax Consulting Co. Assessment for “Poorly equipped office” (Author synthesis) Table 14. Assessment for “Poorly designed office” (Author synthesis) Table 15.
Assessment for working environment in South Tax Consulting Co. Costs for alternative solution 1 (Author synthesis) Table 17. Cost for alternative solution 2 (Author synthesis) Table 18. Cost for renting – alternative solution 3 (Author synthesis) Table 19.
Costs for office decoration – alternative solution (Author synthesis) Table 20. Costs for best solution (Author synthesis) Table 21. Action plan (Author synthesis) Table 22. Detailed description and objective for specific task (Author synthesis) LIST OF FIGURES Figure 1.
Company structure of South Tax Consulting Co., Ltd – March 2019 (Source: South Tax Consulting Co. Number of customers in each group of business of South Tax Consulting Co., Ltd at the end of 2018 (Source: South Tax Consulting Co.ltd 5 TIEU LUAN MOI download : skknchat@gmail.ltd Figure 3: Process in accounting service of South Tax Consulting Co., Ltd – March 2019 (Source: South Tax Consulting Co. Revenue and profit from 2014 to 2018 of South Tax Consulting Co., Ltd (Source: South Tax Consulting Co. Revenue in each group of customer of South Tax Consulting Co., Ltd in 2018 (Source: South Tax Consulting Co.
The revenue growth rate of micro trading customers at South Tax Consulting Co., Ltd from 2015 to 2018 (Source: South Tax Consulting Co. Number of micro trading customers at the year end in the period of 2014 – 2018 (Source: South Tax Consulting Co., Ltd) Figure 8: Initial cause and effect map (Author synthesis) Figure 9. Updated cause and effect map (Author synthesis) Figure 10. The growth rate of revenue from 2015 to 2018 of South Tax Consulting Co., Ltd (Source: South Tax Consulting Co.
Fish bone diagram of main problem in South Tax Consulting Co. Final cause and effect map (Author synthesis) Figure 13. Gantt-chart for action plan (Author synthesis) (LUAN.ltd 6 TIEU LUAN MOI download : skknchat@gmail.1 Company background South Tax Consulting Co., Ltd (STC) was established in July 2011. The company is located in Phu Nhuan District, Ho Chi Minh City.
The firm‟s business is providing accounting service for small and medium-sized enterprises (SMEs) in Phu Nhuan District. CEO of South Tax Consulting Co., Ltd is Mr. Vuong who has over 10 years experience in accounting service area. The structure of the company is simple.
It has 11 employees, in specific, 10 people in Accouting department (4 senior employees including 2 employees with more than 3 years experience and 2 employees with more than 2 years experience and 6 junior employees under 1 year up to 1 year experience) and 1 delivery man. The responsibility of Mr. Vuong – CEO is general management, developing new customers (as sales employee role), taking care of existing customers and supervising for accounting department. Accountants are responsible for directly serving the accounting service to customers and delivery man is responsible for receiving – delivering accounting documents between the company and customers.
Company structure is presented as following. Company structure of South Tax Consulting Co., Ltd – March 2019 (Source: South Tax Consulting Co., Ltd) Up to the end of 2018, STC has got 182 customers. In terms of customer‟s business area, they have 4 groups of customer, such as service, manufacturing, construction and trading. In terms of customer size, they have 3 groups of customer, such as customers who have under 10 billion VND in revenue per year, customers who have 10 up to 50 billion VND in revenue per year and customers who have over 50 billion VND in (LUAN.ltd 7 TIEU LUAN MOI download : skknchat@gmail.ltd revenue per year.
At the end of 2018, the main group of customer of South Tax Consulting Co., Ltd are the corporates which run business in trading and have the size under 10 billion VND per year in revenue (counted for 65/182 customers of the company). According to Clause 1, Article 6 of Decree 39/2018/ND-CP on 11 March 2018 about Determining Small and Medium-sized Enterprises, this group of customer is determining as micro enterprises. Thus the main group of customers of STC is micro enterprises in trading. 90 2 80 70 18 60 50 3 40 2 > 50 bil VND/year 13 65 30 10 bil - 50 bil VND/year 20 36 < 10 bil VND/year 30 2 10 11 0 Figure 2.
Number of customers in each group of business of South Tax Consulting Co., Ltd at the end of 2018 (Source: South Tax Consulting Co., Ltd) Customers require for reliability as measurement for accounting service quality as providers are recommended by their partners. In terms of reliability in accounting service, the most important aspect that customers emphasize is the ability to perform promised services dependably and accurately. The competitive advantage of STC is that the company has good relationship with tax authority in the area of Phu Nhuan District, Binh Thanh District, Tan Binh District and Go Vap District thus it is supportive for customers of STC who run business in these areas; and provides service with competitive price. STC is a micro enterprise with 3.7 billion VND in revenue in 2018, thus it takes a trivial part of market share of this area in Ho Chi Minh City.
Accounting service providers in Phu Nhuan District do not have big difference in service as well as price offering to customers. As responses of Mr. Vuong, he recognized 3 companies as his company‟s competitors in the area of Phu Nhuan (LUAN.ltd 8 TIEU LUAN MOI download : skknchat@gmail. These corporates provides the same service to customers and the price of service that they offer to customers are equivalent to each others.
In the aspect of company size, their revenue in 2018 is around 3. In details: Year of Revenue in 2018 Price (VND/issuer Name of company establishing (VND) - in rounded client/month) Tran Cuong Co., Ltd 2012 3,300,000,000 800,000 - 4,000,000 My Hanh Co., Ltd 2008 5,000,000,000 1,200,000 - 6,000,000 Bo Cong Anh Co., Ltd 2010 4,500,000,000 1,000,000 - 5,500,000 South Tax Consulting Co. Fundamental information about competitors of South Tax Consulting Co., Ltd – March 2019 (Source: South Tax Consulting Co., Ltd) As mentioned in Table 1, the price that four companies offered to customer is around 800,000 – 6,000,000 VND/issuer client/month. Vuong explained, this price level depends on the revenue of customers and number of invoices/documents that they have to process in each issuer client accounting reports.
The price amongst rivals is not much different. Thus the price that they offer to customers is very competitive. Services are offered by the company as follows: Category of service Details Core service Accounting service: Preparing tax reports Preparing accounting books Preparing financial reports Supplementary service Classifying, arranging and storing accounting documents Table 2. Categories of service provided by South Tax Consulting Co., Ltd – March 2019 (Source: South Tax Consulting Co., Ltd) STC has two types of service providing to customers.
Firstly, core service is accounting service including preparing tax reports, accounting books and financial reports for customers. This is the main source that generates revenue for the company.