UNIVERSITY OF ECONOMICS HO CHI MINH CITY International School of Business ------------------------------ TRANG THANH MINH NGUYET JOB SATISFACTION OF CHIEF PURSERS IN VIETNAM AIRLINES MASTER OF BUSINESS ADMINISTRATION Ho Chi Minh City – Year 2018 - 2020 1 TIEU LUAN MOI download : skknchat@gmail.com UNIVERSITY OF ECONOMICS HO CHI MINH CITY International School of Business ------------------------------ TRANG THANH MINH NGUYET JOB SATISFACTION OF CHIEF PURSERS IN VIETNAM AIRLINES MASTER OF BUSINESS ADMINISTRATION SUPERVISOR: Dr. LE THI THANH XUAN Ho Chi Minh City – Year 2018 - 2020 2 TIEU LUAN MOI download : skknchat@gmail.com TABLE OF CONTENT LIST OF TABLE. 4 LIST OF FIGURE. 4 LIST OF ABBREVIATION.
6 CHAPTER1: PROBLEM CONTEXT .2 Vietnam Airlines’ Organization. 13 CHAPTER 2: PROBLEM IDENTIFICATION. 29 CHAPTER 3: CAUSE ANALYSIS AND VALIDATION. 63 CHAPTER 6: SUPPORTING INFORMATION .1 Interviewees’ Transcripts & Profiles.
80 3 TIEU LUAN MOI download : skknchat@gmail.com LIST OF TABLE Table 1.2 - Postholders’ names and responsibilities .1A - The rating result of cabin purser staff .3B - Internal training cost. 62 LIST OF FIGURE Figure 1.2 A - Semi-Organization Chart .2B - Cabin Crew Division & Organization Chart .2A - Chief purser’s task card .2B - C-class cabin attendant’s task card.2C - Initial Diagram of Symptom and Potential Problems .1 - Initial causes and effect map .2 - Final cause and effect map .1A - Cabin attendant career path and progression .1B - Standard promotion line of CCD.1BB - Fast-track promotion of CCD .1C - Revised promotion line accompanied with coaching and instructor position .1CC - Coaching staff .1D - Promotion line amended coaching and management position. 53 4 TIEU LUAN MOI download : skknchat@gmail.com LIST OF ABBREVIATION IATA International Air Transport Association CAAV Civil Aviation Authority of Vietnam VNA - JSC Vietnam Airlines Corporation – Joint Stock Company VNA Vietnam Airlines CCD Cabin Crew Division FTC Flight Training Center ANA All Nippon Airways VASCO Vietnam Air Service Company CAA Cambodia Angkor Air SMS Safety Management System HR Human Resource QA Quality Assurance Dept. Department CA Cabin attendant CAs Cabin attendants A350 Airbus 350 A321 Airbus 321 B787 Boeing 787 C-class Business Class Y-class Economy Class 5 TIEU LUAN MOI download : skknchat@gmail.com Executive Summary Air transport captures a crucial segment of the global economics.
Nowadays, the appearances of many air carriers are the challenges among airline companies and create the harsh competition. Passengers are provided the variety of choices. Gaining passengers’ satisfaction which is influenced by service quality is vital for the airlines’ survival. Service quality of the full-service airlines includes the airport service and the in-flight service in which onboard service plays a key role, because passengers spend most of the time on the flights and have much time for communication with the front-line staff.
Passengers’ perception impacts their assessments on the airlines. The front-line service personnel like cabin attendants who often face to workload, disorder sleeps, different time zones, work tension have to keep smiling, courteousness and attentiveness in dealing with passengers’ demands and problems. They are the important labor forces of the airlines onboard. Also, they really love their jobs as their performance says the degree of job satisfaction.
The duty of the airlines is to drive their job satisfaction toward the company’s goals and mission as their satisfaction results in the profit and productivity. Vietnam Airlines is not the exception. Studying Skytrax report and rating on March 2019 for Vietnam Airlines, there is appearance of low performance resulting from job dissatisfaction of chief pursers who are managing the in-flight service quality of cabin crew. The purpose of the thesis is to find reasons influencing job dissatisfaction of chief pursers and proposes the solution.
6 TIEU LUAN MOI download : skknchat@gmail.com CHAPTER 1: PROBLEM CONTEXT 1.1 Company Overview The history of Vietnam Airlines (1) began in January 1956. At that time, it was a small carrier starting to operate with five small aircrafts. The first domestic flight was opened in September 1956. The airline was recognized as marking the birth of the civil aviation industry in Vietnam.
On 27 May 1995, the government formed Vietnam Airlines Corporation by bringing together 20 service companies in which Vietnam Airlines was the centerpiece. In 2006, Vietnam Airlines (3) became a member of the International Air Transport Association (IATA). In 2010, it was renamed Vietnam Airlines Company Limited. In June 2010, Vietnam Airlines (VNA) became a member of Skyteam including 19 global airlines.
In 2015, Vietnam Airlines (4) marked the significant milestone to be a joint-stock company (Vietnam Airlines Corporation - JSC). On 12 July 2016, it received a 4-star certificate of Skytrax. Vietnam Airlines (5) has played an important role in the economy of Vietnam. It is believed as the parent company owned 100% of Vietnam Air Service Company (VASCO).
VASCO is serving domestic flights in Vietnam and Vietnam Airlines wishes to use it as the conjunction with foreign partners. In addition, Vietnam Airlines owned a 70% stake in the low-cost carrier named Jetstar Pacific Airlines (JPA) and a 49% stake in Cambodia Angkor Air (CAA). In addition, Vietnam Airlines makes revenue from some of its subsidiaries. Besides, it has diversified the investments by leasing.
The company controls and operates a cargo division - Vietnam Airlines Cargo. On 1 July 2016, All Nippon Airways (ANA), the largest air corporation in Japan (6) holds 8,771% capital and has become a strategic shareholder of Vietnam Airlines. Vietnam Airlines’ aircraft fleet has been modernized. The aircraft fleet has ranked on the second scale of South East Asia and on the top scale of Asia-Pacific.
The fleet includes 14 Airbus A350-900, 11 Boeing 787-9 Dreamliner and 3 Boeing 787-10 Dreamliner. The narrow-body aircraft fleet consists of 52 Airbus 321 (A321), 14 Airbus 321-Neo and 6 ATR-72. The company will continue to expand the fleet of the modern aircrafts in order to replace aircrafts operated over 12 years. 7 TIEU LUAN MOI download : skknchat@gmail.2 Vietnam Airlines’ Organization Vietnam Airlines’ headquarter is located in 200 Nguyen Son street, Gia Lam district, Hanoi.
Two hubs are Noi Bai International Airport in the North of Vietnam and Tan Son Nhat International Airport in the South of Vietnam. Vietnam Airlines’ postholders (2) have been appointed in order to managing and supervising the areas including safety, flight operation and flight crew training, maintenance, ground operation and security. The President & CEO is Mr. Duong Tri Thanh.
Five Executive Vice Presidents are responsible for five postholders. Safety Postholder is responsible for supervising Safety Management System (SMS) and solving safety matters. Maintenance Postholder is responsible for managing and supervising VNA’ maintenance system to ensure safe and effective operation. Ground Operation Postholder is responsible for supervising and managing ground operation activities.
Security Postholder is responsible for “ensuring Vietnam Airlines’ aviation security and has full authority and responsibility to deploy the aviation security program”. Flight Operation Postholder is responsible for flight operations to ensure safety and effectiveness. Crew Training Postholder is responsible for supervising crew training in compliance with requirements of Civil Aviation Administration of Vietnam (CAAV). 8 TIEU LUAN MOI download : skknchat@gmail.2 - Postholders’ names and responsibilities No Postholder Name of postholder and title Responsibility President & CEO – Mr.
Duong Tri Thanh 1 Safety Postholder Mr. Nguyen Thai Trung – Executive Supervising Safety Vice President Management System (SMS) and solving safety matters. 2 Flight Operation Mr. Nguyen Hong Linh – Executive ● Supervising and managing Postholder and Vice President flight operations to ensure Crew Training Postholder safety and effectiveness.
● Supervising crew training in compliance with requirements of CAAV. Dang Ngoc Hoa – Executive Supervising and managing Postholder Vice President VNA’ maintenance system to ensure safe and effective operation. 4 Ground Operation Mr. Trinh Ngoc Thanh – Executive Supervising and managing Postholder Vice President ground operation activities.
Le Ba Tung – Executive Vice Ensuring VNA’ aviation Postholder President security and has full authority and responsibility to deploy the aviation security program. Source: VNA’ Quality Manual - page 2.1) 9 TIEU LUAN MOI download : skknchat@gmail.com THE BOARD OF MANAGEMENT President & CEO Mr. Duong Tri Thanh EXECUTIVE VICE EXECUTIVE VICE EXECUTIVE VICE PRESIDENT - EXECUTIVE VICE PRESIDENT - CHIEF PRESIDENT - CHIEF CHIEF OPERATION PRESIDENT - CHIEF EXECUTIVE VICE TECHNICAL OFFICER SERVICE OFFICER OFFICER COMMERCIAL PRESIDENT A/C MAINTENANCE GROUND OPERATION OFFICER FLIGHT OPERATION POSTHOLDER POSTHOLDER POSTHOLDER CARGO PLANNING INFORMATION TECHNICAL PASSENGR SERVICE TECHNOLOGY DEPARTMENT DEPT. & MARKETING DEPARTMENT DEPARTMENT SUPPLY & PASSENGER SALES NOIBAI OPERATION MATERIAL & MARKETING MANGEMENT CENTER DEPARTMENT CORPORATE TSN OPERATION PLANNING CENTER DEPARTMENT DANANG NORTHERN OPERATION CENTER REGIONAL BRANCH CABIN CREW MIDLE REGIONAL DIVISION BRANCH SOUTHERN REGIONAL BRANCH VNA BRANCHES Figure 1.2 A - Semi-organization Chart (2) Source: VNA’ Quality Manual - page 2.2/P4 10 TIEU LUAN MOI download : skknchat@gmail.com CABIN CREW DIRECTOR DEPUTY DIRECTORS SAFETY & PASSENGER HUMAN FINANCE & PARTY & QUALITY TRAINING ADMINISTRATION SERVICE RESOURCE DEPARTMENT ACCOUNTING YOUTH UNION ASSURANCE DEPARTMENT DEPARTMENT DEPARTMENT DEPARTMENT OFFICE DEPARTMENT CABIN CREW CABIN CREW CABIN CREW CABIN CREW CABIN CREW CABIN CREW INTER-GROUP INTER-GROUP INTER-GROUP INTER-GROUP INTER-GROUP INTER-GROUP 2 3 4 5 6 1 Figure 1.2B - Cabin Crew Division & Organization Chart Source: Quality Manual of Cabin Crew Division, Revision 08, 12 December 2018 Cabin Crew Director is the legal representative of Cabin Crew Division (CCD).
Director assigns tasks for 3 Vice Directors. The head office of CCD is located in 108 Hong Ha street, Tan Binh district, Ho Chi Minh city. The Northern Region Office of CCD is located in Hanoi. Two Vice Director assist to the Director in the head office, and another Vice Director manages and operates the Northern Region Office.
Cabin Crew are assigned into 6 inter-groups including many small groups. Each inter-group consists of one general manager and one deputy manager. Each small group has a group leader. Cabin crew of inter-group 1, inter-group 2 and inter-group 3 live in the South and their main base is in Ho Chi Minh city.
Cabin crew of inter-group 4, inter-group 5 and inter-group 6 live in the North and their main base is in Hanoi capital city. Cabin Crew Inter-groups are specialized some specific flight routes. Inter-group 1 and inter-group 4 frequently fly to London, Osaka (Japan) and Korea. Inter-group 2 and inter-group 5 carry out the routes of Paris, Melbourne and Nagoya (Japan).
Inter-group 3 and inter-group 6 fly to Frankfurt, Sydney and Narita (Japan). Hence, in the case of lacking cabin crew, they may be assigned in other flight routes that they have never flown before. 11 TIEU LUAN MOI download : skknchat@gmail.3 Vision & Mission Vietnam Airlines’ slogan is “REACH FURTHER”. Its vision is to be the leading air transport force in Vietnam and the leading airlines in Asia gaining the customers’ trust.
The airline company’s mission is to provide and diversify air transport with high-quality services, creating friendly work environment and promotion opportunities for employees, achieving business effectiveness for ensuring shareholders’ sustainable benefits.4 Industry context Air transport with its worldwide networks becomes essential for global business and tourism and facilitate the world’s economic growth. It connects people and remote areas from all over the world. Nowadays, air transport is demanding as its safety and convenience. It also provide time-saving for movement of millions of people and transporting worthy goods to the global markets.
It generates millions of jobs in the aviation and in the world. Thus, its development and achievement significantly contribute to the progress of the global society. In Vietnam, the valuable contribution of air transport impacts the economy. According to the International Air Transport Association (IATA), air transport and tourists arriving Vietnam by air (8) provide 2.2 million jobs and support 5.2 percent GDP in the country.
In addition, it facilitates “the flows of goods, investment and people”. Also, air transport is the connections between Vietnam and the world. The bridges in the air are the crucial drivers for the growth of economy. Vietnam Airlines play a key role in the aviation industry of Vietnam.