UNIVERSITY OF ECONOMICS HO CHI MINH CITY International School of Business ------------------------------ DƯƠNG THỊ HỒNG NHUNG SOLVING THE PROBLEM OF JOB DISSATISFACTION AT GLOBAL VIETNAM ALUMINIUM CO., LTD MASTER OF BUSINESS ADMINISTRATION Ho Chi Minh City – Year 2020 LUAN VAN CHAT LUONG download : add luanvanchat@agmail.com Page | 1 UNIVERSITY OF ECONOMICS HO CHI MINH CITY International School of Business ------------------------------ DƯƠNG THỊ HỒNG NHUNG SOLVING THE PROBLEM OF JOB DISSATISFACTION AT GLOBAL VIETNAM ALUMINIUM CO., LTD MASTER OF BUSINESS ADMINISTRATION SUPERVISOR: DR NGUYEN PHONG NGUYEN Ho Chi Minh City – Year 2020 Page | 2 LUAN VAN CHAT LUONG download : add luanvanchat@agmail.com List of Contents Executive summary .1 Overview of Global Vietnam Aluminum Co.2 The development of Global Vietnam Aluminum Co.3 The main product of Global Vietnam Aluminum Co.4 Organizational structure of Global Vietnam Aluminum Co.5 The strategy of Global Vietnam Aluminum Co.1 The high turnover rate.2 Turnover rate of engineer.3 Turnover rate by reasons .4 Initial cause-effect map .5 Updated Cause-effect map. Causes validation and solutions .1 Lack of career development .2 Lack of leadership .3 Unprofessional working environment. 33 Page | 3 LUAN VAN CHAT LUONG download : add luanvanchat@agmail. 59 Page | 4 LUAN VAN CHAT LUONG download : add luanvanchat@agmail.com LIST OF TABLES Table 1: Total employee Turnover Rate in Global Vietnam Aluminium Company.
8 Table 2: Employee Turnover Rate of the engineers in Global Vietnam Aluminium Company. 9 Table 3: Resignation reasons for the engineer in GVA (2019). 11 Table 4: Training estimated costs. 30 Table 5: Motivating estimated costs.
32 Table 6: Planning schedule. 35 LIST OF FIGURES Figure 1: Company structure. 5 Figure 2: Human Resources structure. 5 Figure 3: Employee Turnover Rate in Global Vietnam Aluminium Company.
8 Figure 4: Engineer turnover rate at Global Vietnam Aluminium Company. 10 Figure 5: Engineer resignation reasons in GVA. 11 Figure 6: Initial cause-effect map. 12 Figure 7: Updated cause-effect map.
18 Figure 8: Final cause-effect map. 23 LUAN VAN CHAT LUONG download : add luanvanchat@agmail.com Page | 1 Executive summary Nowadays, facing with high turnover rate and low recruitment are more concentrated by many corporations over the world, especially in a highly competitive market. Key positions such as expertise, managers, and directors will bring too many benefits and values to the company. Employees are major assets of any organization and the effective competitive advantage of many enterprises.
The importance of employees to an organization has been acknowledged for a long time because they have a role in creating, maintaining a competitive advantage and help the organization more development. Lots of companies in Vietnam do not pay more attention to human resources, and it is also often left to deal with employee turnover and the difficulties it brings. In the market, the competition within the job market is getting fiercer and increased the number of employee turnover rates have become a concern for enterprises as well as the government. Employees can leave a company for lots of reasons, when employees willingly leave a company, usually because they have other choices and they willingly go to work in another company.
This research study was conducted to explore the issue of employee turnover rate and retention talent employees in the manufacturing company, using Global Vietnam Aluminum Co. Ltd as the context. This research was conducted to assess the impact of employee turnover on organizational performance in a manufacturing company, investigate the causes of staff turnover and finally recommend solutions that can be used to reduce the number of employee turnover in Global Vietnam Aluminium Co. LUAN VAN CHAT LUONG download : add luanvanchat@agmail.
Company background Nowadays, the global economy is developing day by day. Vietnam's aluminum industry has continuously developed. Policies to encourage foreign countries' investment in Vietnam as well as to encourage Vietnamese enterprises to export to foreign countries have made Vietnam's economy develop in a positive way. At this time, in the aluminum market as well as aluminum products in the world is increasingly active while Vietnam is one of the countries attracting high foreign investment from big countries like the USA, Australia, China, Canada.
In a fast-moving environment, everything needs to change and enhance itself to integrate and develop. There is always a chance for us to take part in this challenging business world if we are well-organized and dedicated to devoting to society. Grasp that situation, the biggest factory in Vietnam and one of the biggest in Southeast Asia is Global Vietnam Aluminum Co., Ltd (GVA) is 100% Australian capital investment invested in 2011. The factory is located in My Xuan B1 Conac, industry zone, Ba Ria – Vung Tau province, which has a strategic advantage of transportation logistics and economic efficiency.
One of the emerging newcomers to confront this challenge and undertake this responsibility. An advanced infrastructure at GVA provides customers with reliable and sustainable production and distribution. New factory with all of the latest technology in the aluminum industry that can satisfy every requirement of customers. With modern equipment and machinery, the company is gradually asserting its position in the aluminum industry, especially aluminum billet.
Along with understanding the aluminum market and business environment of Asia in particular and of the world in general, Global Vietnam Aluminium brings suitable solutions to the business characteristics and environment of each enterprise. Global Vietnam Aluminium team comprises experienced professionals and dedicated workers with all modern production techniques that enable the company to provide the best quality products in less time. The company prioritizes the employment of domestic labor, ensuring the rights and interests of workers, strictly complying with the regimes prescribed by the Labor Law, respecting the right to organize trade unions under the Trade Union Law. Create jobs for officials and employees, improve the average income is Page | 2 LUAN VAN CHAT LUONG download : add luanvanchat@agmail.
Additionally, Global Vietnam Aluminum Co., Ltd often gives training sessions to all workers for the enhancement of productivity.1 Overview of Global Vietnam Aluminum Co., Ltd - Full name : Global Vietnam Aluminum Co. Ltd - Trading name : GVA - Address : My Xuan B1 Conac Industrial Zone, My Xuan, Ba Ria – Vung Tau province - General Director : Jacky Cheung - Start date : 08/8/2011 - Charter capital : 5.000 billion USD - Company size : 63 hectares - Total staff : 963 1.2 The development of Global Vietnam Aluminum Co., Ltd Global Vietnam Aluminum Co., Ltd was founded by two major shareholders, namely Jacky Cheung and Wang Tong, with five thousand billion dollars in capital investment and was established in 2011. In the beginning, company size was 40 hectares with around four hundred employees and expanded to 63 hectares three years later, with numerous hard working employees reaching up to approximately one thousand. Since its establishment, Global Vietnam Aluminum continues to develop and remain as an outstanding organization in the manufacturing of aluminum extrusions in Southeast Asia within the last few years.
Producing and supplying high-quality aluminum billets with currently the production capacity has crossed a record of up to 200,000 metric tons annually and export to countries around the world, for example, Philippines, Malaysia, Indonesia, Thailand, Canada, USA, Hong Kong, China, etc. to name just a few to serve and support customers' needs through the best services and products. At the very first beginning of our operation, Global Vietnam Aluminium only focuses on manufacturing and selling aluminum billet 6xxx series, among them, the core product is the primary aluminum billet 6063 which receives a great deal of recognition among customers across the domestic and international market. Realizing that billet is just a Page | 3 LUAN VAN CHAT LUONG download : add luanvanchat@agmail.com semi-final product and does not bring us the opportunity to make this world a more beautiful and better place, at the end of 2014, Global Vietnam Aluminium decided to adjust our business strategy and headed to become the top aluminum extruders within the region.
With the extruded capacity of up to 80,000 MT per year sponsored by the 03 most advanced couple presses in the plant, Global Vietnam Aluminium entirely confident to supply the best aluminum profiles to serve the needs and demands of the market.3 The main product of Global Vietnam Aluminum Co., Ltd GVA uses primary aluminum ingots as raw materials with five main products selected from different countries to ensure the best quality as below: - 05 couples of smelting/furnaces (500 – 600 MT/day) - 05 homogenization furnaces - 03 couples of aluminum extrusion presses (2000; 2750; 3600 MT) - Anodized facilities - Powder coating facilities 1.4 The organizational structure of Global Vietnam Aluminum Co., Ltd GVA has a main factory in Tan Thanh town, Ba Ria - Vung Tau province, and has around 1.000 employees from around the country come to work and 23 ex-pats who are working in 8 departments: Human Resource, Quality Control, IT, Extrusion, Mold, Warehouse, and Painting. The Board of Director who is responsible for all activities in the company and drive GVA going on the right track and strategy. Each department played an essential role in supporting the company to expand and develop business in Vietnam. Page | 4 LUAN VAN CHAT LUONG download : add luanvanchat@agmail.com Figure 1: Company structure The organizational chart shows the internal structure of the Global Vietnam Aluminium organization.
Board of directors in the highest-ranking position atop the chart and followed by the following in descending vertical order: - Chairman of the board of directors - General director - Head of departments Figure 2: Human Resources structure Page | 5 LUAN VAN CHAT LUONG download : add luanvanchat@agmail.com The organization chart in the Human resources department at Global Vietnam Aluminium has five sections with some functions as below: - Assistants who report directly to Human resources manager - Recruitment and training have the responsibility to find talent candidates suitable for each position and training regulation, skills, or other development functions. - C&B – Labor relation creates happier workplaces, make reward and recognition programs to inspire peak performance, adapt the practice of transparent payment policies, determined based on experience, work skills, knowledge, performance ratings, and employee performance and market value and the relationship between employer and employee in the company - Visa – Expat has responsibility for everything related to the foreigner. - The administration is another job required.5 The strategy of Global Vietnam Aluminum Co., Ltd Global Vietnam Aluminium's strategy is cost management and endeavors to pursue appropriate products to enhance value for its customers. It has crystallized an important project for the full modernization, automation, and up-gradation of the existing three presses of its plant for having a higher level of performance to make prestige is being widely speeded throughout Asia and the rest of the world.
Customers must set at the top of the priority list, which always pushes the company to strive to take better care of them every single day. To meet the company's goals and strategies, the company's human resource strategy focuses on developing young, dynamic, and talented staff, recruitment of multicultural staff. Symptoms Identify symptoms are the first thing to do in order to find the root causes of the problem. The problem would be wrong if we cannot distinguish problems and symptoms.
No symptom means no problem. According to Marlon (1) stated that it is significantly essential to distinguish the problem and symptom. The author has carefully interviewed some members of the board of director, heads of the department and based on data from Page | 6 LUAN VAN CHAT LUONG download : add luanvanchat@agmail.com 2017 to 2019, the author found symptom that happening at GVA is high turnover rate, but at this research, the turnover rate of engineers in 2019, which affects to the manufacturing in the organization, was examined. These symptoms will be analyzed in detail as follows: 2.