UNIVERSITY OF ECONOMICS HO CHI MINH CITY International School of Business ------------------------------ Lê Thị Đoan Hạnh JOB STRESS IN SALES DEPARTMENT AT SAIGON PLASTIC PACKAGING JOINT STOCK COMPANY MASTER OF BUSINESS ADMINISTRATION SUPERVISOR: Ph. NGUYEN PHONG NGUYEN Ho Chi Minh City – Year 2018 LUAN VAN CHAT LUONG download : add luanvanchat@agmail.com CONTENTS LIST OF TABLES .5 LIST OF FIGURES .1 History of company .2 Mission and Vision .JSC organization chart (Appendix 1) .JSC Sales department chart (Appendix 2).1 High turnover rate .2 Low sales revenue. Initial cause effect map .1 High goal expectation .3 Low compensation and benefits. Updated cause effect map.
Potential central problems .26 2 LUAN VAN CHAT LUONG download : add luanvanchat@agmail.3 Career development opportunities.5 Conflic between work – life roles .1 The studies relate to job stress consequences.2 The consequences of job stress affects to SAPLASTIC.2 The increasing of customer complaint .3 Higher training and hiring cost .4 The employees go to work late and ask for day-off frequently .3 Career development opportunities .5 Conflict between Work-Life roles .3 Career development opportunities .5 Conflict between Work-Life roles .JSC ORGANIZATION CHART .JSC’s SALES DEPARTMENT CHART .48 3 LUAN VAN CHAT LUONG download : add luanvanchat@agmail.com APPENDIX 3 – IN-DEPTH INTERVIEW – ROUND 1 .49 APPENDIX 4 – IN-DEPTH INTERVIEW – ROUND 2 .53 APPENDIX 5 – QUESTIONAIRE – ENGLISH VERSION .57 APPENDIX 6 – QUESTIONAIRE – VIETNAMESE VERSION .60 APPENDIX 7 – SURVEY RESULT COLLECTION .65 4 LUAN VAN CHAT LUONG download : add luanvanchat@agmail.com LIST OF TABLES Table 1. 1 - Statistics of changes in human resources in the Sales department of SAPLASTIC.JSC for the period of 2015 - 2017. 3 - Business plan of SAPLASTIC.JSC for the period of 2015 – 2017. 1- External expressions of stress.
2 - Observation variables define Job stress causes at SAPLASTIC. 3– Summary of complaint cases from customers. 4 - Training and hiring cost of salesman in SAPLASTIC. 5 - Statistics of hours that staff go to work late and the number of vacations of sales department in SAPLASTIC.38 5 LUAN VAN CHAT LUONG download : add luanvanchat@agmail.com LIST OF FIGURES Figure 1.
1 - Chart of statistics of changes in human resources in Sales department of SAPLASTIC.JSC for the period of 2015 - 2017. 2 - Revenue Results at SAPLASTIC.JSC for the period of 2015 - 2017. 1 - Measurement of work pressure factors. 2 - Evaluation of working environment factors.
3 - Evaluating opportunities for career development. 4 - Evaluating personal relationship factors. 5 - Evaluating the conflicting factors between work and life .31 6 LUAN VAN CHAT LUONG download : add luanvanchat@agmail.1 History of company April 6th, 2001: was established with name Saigon Plastic Packaging Limited Company as forerunner and started building factory in an area 5,208 m2. February 2003, the factory had been finished, in turn the machinery was invested, began with gravure printing machines, laminating, slitting and bag making machines.
January of 2006, Saigon Plastic Packaging Limited Company was the first who granted both quality management certificates ISO 9001:2000 and environment management certificate ISO 14001:2004 In 2007, the company equitized and rename to Saigon Plastic Packaging Joint Stock Company (SAPLASTIC.JSC) September 2008, the share was officially listed on the stock market, as the code SPP.JSC has been invested by great investment fund, such as: BIDV Investment, Vietnam Holdings, to name a few. In the end of 2010, SAPLASTIC.JSC invested in setting up LAB department, became first and only packaging company which had been equipped fully and modernly equipment. This LAB was built with three functions: R&D activities input material checking and output product control. • Công ty Cổ Phần Bao Bì Nhựa Sài Gòn • English name: SAIGON PLASTIC PACKAGING JOINT STOCK COMPANY • Trading name: SAPLASTIC.JSC • Tax code: 0302272627 • Address: Lot II, 2B, Group V, Industrial Group II, Tan Industrial Zone, Tay Thanh Ward, Tan Phu District, Ho Chi Minh City.
• Business license: 0302272627 - Date of Issue: 10/05/2001 • Operation date: 01/05/2001 • Website: http://www.vn • Phone number: 028 3815 5263 Fax: 028 3815 5262 • General Director: Dương Quốc Thái 7 LUAN VAN CHAT LUONG download : add luanvanchat@agmail.com • Email: info@saplastic.2 Mission and Vision Mission: Contribute to the stable development of Vietnamese brands in the packaging industry, not only in South East Asia but also whole Asia Market, in order to aim at the global market in future Vision: Corporate vision for the period 2010 – 2030 is to build SAPLASTIC.JSC to become the great interdisciplinary corporation.JSC’s business base is the stable development in association with eco-friendly and social responsibility.JSC organization chart (Appendix 1) 1.JSC Sales department chart (Appendix 2) 2.1 High turnover rate Table 1. 1 - Statistics of changes in human resources in the Sales department of SAPLASTIC.JSC for the period of 2015 - 2017 Targets 2015 2016 2017 Total Sales Staffs (Person) 17 21 27 Resigning Staff (Person) 3 5 9 New staff (Person) 2 4 Rate of increase (%) 66.00 Breakout Ratio / Total Sales Staff (%) 17.33 (Source: Administration & Human Resources department in SAPLASTIC.JSC ) 8 LUAN VAN CHAT LUONG download : add luanvanchat@agmail. 1 - Chart of statistics of changes in human resources in Sales department of SAPLASTIC.JSC for the period of 2015 - 2017 RESIGNING STAFFS 9 5 3 2015 2016 2017 According to the figures above, the retirement status of employees at the Sales Department of SAPLASTIC.JSC has increased steadily over the years 2015 - 2017. In 2015, the total number of employees in the sales department of the company is 17, with 3 employees retiring accounting for 17.
In 2016, the total number of employees in the sales department of the company increased to 21, corresponding to an increase of 4 people, corresponding to a 23. But this year the number of employees leaving the department is up to 5 people, accounting for 23.81% compared with the total staff of the sales department. The number of employees leaving the sales department increased to 5 people, corresponding to the increase of 2 people compared with 2015, corresponding to the rate of increase of 66. Thus, in 2016 SAPLASTIC.JSC has recruited 4 sales staff to expand its business activities in the company's business plan.
But this year the number of salespersons leaving SAPLASTIC.JSC was higher than the number of employees recruited by the company. This is quite dangerous and alarming situation in the sales department of SAPLASTIC.JSC In 2017, the total number of employees in the sales department of SAPLASTIC.JSC increased to 27, in which 6 people are recruited by the company, increasing by 28. But the turnover status at the dales 9 LUAN VAN CHAT LUONG download : add luanvanchat@agmail.com department of SAPLASTIC.JSC is more serious when this year the number of employees leaving is up to 9 people, accounting for 33.33%, corresponding to an increase of 4 persons and an increase of 80% compared to 2016. Thus, the number of employees recruited to the sales department SAPLASTIC.JSC is lower than the number of employees leaving sales department.
This proves that the current demand for human resources in the sales department of the company is lacking and significantly affecting the manufacturing and business activities of SAPLASTIC.JSC in the past period.2 Low sales revenue Another alarming problem SAPLASTIC.JSC is facing is sales are tending to decrease, as follows: Unit: million VND 2016/2015 2017/2016 Targets 2015 2016 2017 +/- % +/- % Total revenue 426,511 548,254 448,963 121,743 28.52) Profit before tax 93,634 125,555 79,192 31,921 34.93) (Source: Sales Department - SAPLASTIC. 2 - Revenue Results at SAPLASTIC.JSC for the period of 2015 - 2017 Revenue Cost Profit before tax 125,555 93,634 79,192 422,699 332,877 369,771 426,511 548,254 448,963 2015 2016 2017 Looking at the table above, we see the business results of SAPLASTIC.JSC fluctuating unevenly through the years 2015 - 2017. Specifically: 10 LUAN VAN CHAT LUONG download : add luanvanchat@agmail.com In 2015, total sales of the company reached VND 426,511 million, profit reached VND 93,634 million. In 2016, revenue increased to VND 548,254 million, equivalent to an increase of VND 121,743 million, a 28.54% increase compared to 2015.
The company's profit also increased to VND125,555 million corresponding to an increase of VND31,921 million. The growth rate is 34. It shows that in 2016, the company's business performance still meets the target, the rate of the profit growth is higher than the rate of revenue increase. In terms of the human resources of the sales department at SAPLASTIC.JSC in 2016, the department has recruited 4 sales staffs and 5 sales staffs retired.
Thus, the problem of retirement of the sales staff at this time did not significantly affect the sales revenue and profit of SAPLASTIC. In 2017, the company's sales revenue fell to VND448,963 million, corresponding to a decrease of VND99,291 million and a decrease of 18. In addition to decreasing sales, pre-tax profit also suffered and reduced to VND79,192 million, corresponding to a reduction of VND46,363 million, corresponding to a decrease of 36. In 2017, the company's sales revenue fell to VND448,963 million, corresponding to a decrease of VND99,291 million and a decrease of 18.
In addition to decreasing sales, pre-tax profit also suffered and reduced to VND79,192 million, corresponding to a reduction of VND46,363 million, corresponding to a decrease of 36.2 Symptom consequences Firstly, the status of salespersons of SAPLASTIC.JSC, which has the tendency to increase in the period of 2015 – 2017, has significantly affected the revenue and profit of SAPLASTIC.JSC in the past period. All of these are proved by the results of business of SAPLASTIC.JSC for the period of 2015 - 2017 has been stated in the second symptom. In terms of personnel condition in the sales department of SAPLASTIC.JSC, in 2017, the company recruited 6 employees but the number of employees leaving is up to 9 employees. Thus, the status of the sales staff has directly affected sales and profits of SAPLASTIC.
The large number of customers, human resources at the 11 LUAN VAN CHAT LUONG download : add luanvanchat@agmail.com moment are not enough to take care of old customers so finding new customers, expanding the business activities of SAPLASTIC.JSC in 2017 are difficult and unsuccessful. Thus, we see that the status of sales staff leaving the company has a negative impact on the business results of the SAPLASTIC. Secondly, the current status of sales staff, apart from affecting the revenue and profit of the company, it also directly affects the cost of recruitment and training costs of the SAPLASTIC. This is a specialized industry that produces plastic packaging products, which demands salespeople must have the knowledge and skills for industry, knowledge about products.
to advise and support customers in the way of designing, ordering, contracting, etc. So, to get a salesperson know and get him familiar with the job and equipped with the knowledge of packaging, advice to customers, the company spends a lot of time and effort recruiting and training employees. According to Head of Sales, Mr. Tran Phu Vinh said: "It takes 2-3 months to recruit an employee according to the company's procedures, then it takes at least one month for training qualified staff having specialized knowledge of packaging and at least 3 months to train a new staff who knows nothing about plastic packaging.
Thus, the status of many employees retiring has a serious impact on the company's business performance. Thirdly, there is also another consequence that few people care about, which is the business secret of the company being exposed outside, especially the companies that are competitors in the manufacturing plastic packaging industry such as SAPLASTIC. At this point, when the sales staffs quit, competitors in the industry will be willing to pay a higher salary and offer a better working environment to entice employees of SAPLASTIC.JSC to work for them, they will exploit information from these employees and gradually get customers from the SAPLASTIC.