UNIVERSITY OF ECONOMICS HO CHI MINH CITY International School of Business ------------------------------ LE QUANG KHOI UNCLEAR TASK IDENTITY IN G-TECH VIET NAM COMPANY MASTER OF BUSINESS ADMINISTRATION SUPERVISOR: DR. PHAN THI MINH THU Ho Chi Minh City – Year 2019 Executive Summary In recent years, construction industry in Viet Nam has a significant change since the economic crisis in 2008. The good macroeconomic signal along with the foreign investment flows and the development of real estate market would be the evidence for the continuous growth of construction industry in the future. The more developed the industry gets, the more competitive the market is.
Since year 2016, G- Tech Viet Nam has faced a tremendous problem when company profit has declined. There are many factors for the financial problem of company, which may come from the external environment or within the organization. One of the internal issue that could be distinctly seen is the increasing number of employees leaving company. The purpose of this study is to conduct a research on what are the factors affecting employee intention to leave the job and to have a clear view about the situation of high turnover rate in G-Tech Viet Nam Company during period from year 2016 to year 2018.
Researcher collects information from two data resources. Firstly, the secondary data are mostly provided by Human Resources Department and other departments in company, like Accounting Department. Secondly, researcher collects primary data by conducting in-depth interview with two groups of interviewees, one group concludes employees who left company in the period 2016 – 2018 and the other concludes current employee of company. By synthesizing and analyzing collected data, research has found a few of factor affecting the intention to leave the job of employee and the situation of high turnover rate.
Unclear task identity is the significant factor influencing the job performance and job dissatisfaction of employee and employee turnover intention. In the end, by meaning of this study, researcher would like to suggest potential solution to help company recognize the problem that company has faced in recent years. Then, a reasonable and practical action plan would be a potential solution for company to solve the problem. Page 1 CONTENTS CHAPTER I: PROBLEM CONTEXT.
Symptom: High turnover rate. 3 CHAPTER II: PROBLEM IDENTIFICATION. Updated Cause – Effect Map. Existence and Importance of the Problem.
19 CHAPTER III: ALTERNATIVE SOLUTIONS. Potential causes of the problem. Alternative sets of solution. The first alternative set of solution: Writing job description for each position and orientation session.
The second alternative set of solution: Orientation and Training session for employee. Justifying and selecting the suitable set of solution. 34 APPENDIX 1: THE FIRST INTERVIEW. 37 APPENDIX 2: TRANSCRIPT OF THE FIRST INTERVIEW – GROUP 1.
38 APPENDIX 3: TRANSCRIPT OF THE FIRST INTERVIEW – GROUP 2. 42 APPENDIX 4: THE SECOND INTERVIEW. 48 APPENDIX 5: TRANSCRIPT OF THE SECOND INTERVIEW. 49 APPENDIX 6: THE THIRD INTERVIEW.
53 APPENDIX 7: RESULT OF THE THIRD INTERVIEW. 54 Page 2 CHAPTER I: PROBLEM CONTEXT 1. Company Introduction G-Tech Viet Nam Co., Ltd is a 100% foreign-invested company. Forerunner of G-Tech Viet Nam is Global Technical and Construction established in 2002.
Company is located in Ho Chi Minh City, Viet Nam. Since its establishment, main business functions of company are industrial construction, civil construction, interior decoration, installation of the fire fighter and prevention equipment, installation of internal telecommunication system, installation of electricity – refrigeration equipment for industrial and civil uses, construction consulting and design for industrial and civil purpose. Vision, Mission and Core Value of G-Tech Viet Nam: - Vision: To become a top provider in construction: civil and industrial construction, design, decoration and M&E in Viet Nam. - Mission: To offer and help client so they can find G-Tech Viet Nam as a good alternative for their chosen.
- Core Values: o General Tech Engineering and Construction o Local Leading Company o To give full satisfaction to client’s needs o To be great in construction field o To work towards a Goal o Let’s go together Organizational Structure of G-Tech Viet Nam Page 3 Figure 1: Organizational Structure of G-Tech Viet Nam (from Company profile) 2. Symptom: High turnover rate Turnover rate is one of the most important aspect that each and every company must take a serious concern. According to Price (1), turnover is defined as the ratio of the number of organizational members who have left during the period being considered divided by the average number of members in organization during the period. On the other hand, turnover may be known as a process of replacing one worker with another to fill the job vacancy: when there is a blank position in organization regardless of reason, a new employee will be hired and trained.
Page 4 Turnover rate can be calculated for any time period. Each year, HR Manager have responsibility for reporting turnover rate to Board of Directors by making the Human Resources Report. The turnover rate is equal to the number of employees leaving divided by the average total number of employees and this rate is calculated once a year 𝑁𝑢𝑚𝑏𝑒𝑟 𝑜𝑓 𝑒𝑚𝑝𝑙𝑜𝑦𝑒𝑒𝑠 𝑙𝑒𝑎𝑣𝑖𝑛𝑔 𝑇𝑢𝑟𝑛𝑜𝑣𝑒𝑟 𝑟𝑎𝑡𝑒 = 𝐴𝑣𝑒𝑟𝑎𝑔𝑒 𝑡𝑜𝑡𝑎𝑙 𝑛𝑢𝑚𝑏𝑒𝑟 𝑜𝑓 𝑒𝑚𝑝𝑙𝑜𝑦𝑒𝑒𝑠 High turnover rate could be costly to organization and impact company revenue and profitability by increasing hiring expense, training labor cost as well as decreasing employee’s productivity. Employee could leave an organization for a wide range of reasons, including: lack of development and opportunities, lack of recognition and reward from company; unsuitable company culture and working environment; dissatisfaction with manager, unclear role or work is not as expected, v.
Recently, G-Tech Viet Nam has faced with the problem on the increase of employee turnover rate. Figure 2 below describes the percentage of employee turnover from year 2016 to 2018. Looking at the Figure 2, the statistics in HR Report have showed that the turnover rate of employees has increased from 9. Average total number of Year Number of employees leaving employees 2016 8 88 2017 11 88 2018 14 90 Table 1: Statistic of the number of employees leaving in period 2016-2018 (Source: Internal Human Resource Report ) Page 5 Turnover rate during period 2016 - 2018 15.09% Year 2016 Year 2017 Year 2018 Figure 2: Turnover rate of G-Tech Vietnam Company during period 2016-2018 (Source: Internal Human Resource Report) The data collected for the number of employees leaving in each department in G- Tech Viet Nam Company are showed in the figure below.
Percentage of resigned employees in each department 100 90 80 70 60 50 40 30 20 10 0 Year 2016 Year 2017 Year 2018 Design 12.1 Figure 3: Percentage of resigned employee during period 2016-2018 (Source: Internal Human Resource Report) The figure above showed the general view of the situation in company. From year 2016 to year 2018, every department in company had employees who quit their jobs. It could be seen that General Affairs Department and Q.S Department are two departments that had the highest turnover rate in company. The reason for this problem Page 6 is that these two department have the largest number of employees in company.
With smaller scope, the number of employees in other departments is only 5-10 people so the turnover rate is not high. However, combined with the number of resigned employees from other departments which makes the employee turnover rate of company is quite high. In accordance with the annual report of Hoa Binh Construction Group (2), turnover rates in construction industry in Viet Nam have fluctuated from 18 to 20% in the period 2016 – 2018. During that period, the turnover rates of G-Tech Viet Nam are not higher than the average rates of the industry.
Even though, the number of employee turnover is tending to increase rapidly every year. In the global context with high competitive environment, turnover rate is one of most important factors to evaluate competiveness ability of one company. And for these reasons, it is extremely necessary for company to identify and analyze all the causes affecting high turnover rate problem before this issue seriously affects operation activities of company. In recent years, the competition in industrial construction market is getting higher and higher, even though the Vietnamese construction industry had a growth rate of 9.8% in 2015 in accordance with the data in Construction report in Viet Nam, key trends and opportunities to 2021 (3).
Construction industry is one of the most significant economic growth sector in Viet Nam. The economic recovery and the trade war between China and US could bring a positive impact on construction industry in Viet Nam. Even though the instruction sector has growth recently, the competition between construction companies is getting higher and higher. G-Tech Viet Nam has faced the problem when the profit of Company has declined from 35.6 billion VND in 2016 to 27.5 billion VND in 2017 and 12.8 billion VND in 2018.
The analysis above has showed that the business situation of G-Tech Viet Nam is getting worse: the profit decreased significantly and the turnover rate increase gradually. The reasons cause to these problems might come from the low satisfaction with the human resources management of company. The problem comes from organizational structure of company, the poor of communication among departments Page 7 leads to conflict; inconsistency management style makes employee feel hard to follow up; or the dissatisfaction of employees on their unclear duties and responsibilities. CHAPTER II: PROBLEM IDENTIFICATION 1.
Problem mess To investigate causes leading to the high turnover rate and low job performance of company, researcher conducted an interview as a method for Qualitative research to collect data to have an overview on general situation of company. Interview method is particularly suitable for intensive investigation. Researcher conducted a semi- structured interview with a set of same question and additional questions could be asked to clarify or to expand the answer further. Researcher divides participants into two group: employees who left company during the period 2016 – 2018 and employees who are currently working at company.
First group – Resigned employees Year of No. Full name Gender Position Department Seniority leaving 1 Nguyen Phi H. Male Site Manger Q.S 2018 10 years 2 Duong Cong K. Male Site Engineer Q.S 2018 3 years 3 Lam Thi T Male Site Engineer Q.
said that the biggest reason he left the company that he did not see his future career development if he still worked for company. He told that company did not have any specific regulation on job promotion. According to what he said, there are only two factors could help you get promotion: first factor is the number of year you have work for company and second one is only based on decision of General Director of Company. You do not know when and how you can get promotion, even if you have performed good performance.
In addition, Mr. Nguyen Phi H mentioned that his salary was very low compared to his position in rival company. His salary in current company is nearly double the amount that G-Tech paid him. said that he left company due to the lack of training and development.
He could not develop and learn new knowledge since he joined company. Page 8 One more reason that company does not provide shuttle bus for employee who works at site, each day he had to travel from 3-4 hours from his house to site and back. He also mentioned another reason is that the way his manager distributed jobs was unfair among employees. He explained that this problem might come from the poor management skill of his manager; also because when he started to work for company, HR Manager and his direct manager did not inform specifically his main duties and responsibilities or work process in company.
shared that there were a few reasons why he left company.