UNIVERSITY OF ECONOMICS HO CHI MINH CITY International School of Business ------------------------------ NGUYEN MANH TUAN (HIGH TURNOVER RATE AND PERFORMANCE APPRAISALS BIAS BY SUPERVISOR IN FPT TELECOM JSC REGION 5) MASTER OF BUSINESS ADMINISTRATION Ho Chi Minh City – Year 2019 1 TIEU LUAN MOI download : skknchat@gmail.com UNIVERSITY OF ECONOMICS HO CHI MINH CITY International School of Business ------------------------------ NGUYEN MANH TUAN (HIGH TURNOVER RATE AND PERFORMANCE APPRAISALS BIAS BY SUPERVISOR IN FPT TELECOM JSC REGION 5) MASTER OF BUSINESS ADMINISTRATION SUPERVISOR: PROF. TRAN HA MINH QUAN Ho Chi Minh City – Year 2019 2 TIEU LUAN MOI download : skknchat@gmail.com EXCUTIVE SUMMARY With the development of all aspects of life from society, culture, education to technology, the quality of people’s lives is increasingly enhanced. However, along with these developments as well as the rise of the people’s demands, they will have to work so hard that they can satisfy all their needs as well as take care of their family perfectly. According to Deborah Jian Lee (2014), most of people nowadays pay so much attention to work that the time for their own family or their own personal life is increasingly shortened.
They cannot get rid of the whirl of work so they also cannot balance their own lives, balance between the time for working and the time for living. This problem lasts for a while will easily make them feel stressful and tired. And the result is that they will give up easily all the things they are been doing and consider it as a release for them from pressure. This report will use both primary research and secondary research to analyze as well as conduct the results about how the work – life balance effects on the turnover rate in FPT Telecom Joint Stock Company – Region 5.
After that, this report will use those information and data to give some recommendations what the board of director of FPT Telecom Joint Stock Company – Region 5 should do to decrease the turnover rate as well as improve the cohesion of employee with the company so that the FPT Telecom Joint Stock Company – Region 5 can complete the assigned business plan. 1 TIEU LUAN MOI download : skknchat@gmail.com ACKNOWLEDGEMENTS I would like to acknowledge all my family, my wife, my friends, my colleagues, my classmates at ISB and FPT Telecom for their supporting, helping and encouragement during my studies. Without them, I would not be where I am today. Especially, I would like to thank my supervisor - Professor Tran Ha Minh Quan for supporting me, give me the best advices, as well as guidance me all the time of making this report.
I will not complete this report without his wholeheartedly help. 2 TIEU LUAN MOI download : skknchat@gmail.com TABLE OF CONTENTS EXECUTIVE SUMARY 1 ACKNOWLEDGEMENT 2 I. THE STRUCTURE II. NUMBER OF SALE VOLUME IN FPT TELECOM & THE DECREASING IN FPT TELECOM – REGION 2.
THE TURNOVER RATE IN FPT TELECOM COMPARED TO TELECOM INDUSTRY’S TURNOVER RATE 3. TURNOVER RATE IN REGION 5 – HO CHI MINH CITY IN FPT TELECOM III. WORK-LIFE BALANCE 2. SALARY AND BENEFITS 3.
ERRORS IN RECRUITMENT 4. PERFORMANCE APPRAISALS BIAS 5. CAUSE-EFFECT MAP IV. WORK-LIFE BALANCE 2.
SALARY AND BENEFITS 3. ERRORS IN RECRUITMENT & PERFORMANCE APPRAISALS BIAS V. The first possible solution: biases from inexperience and untrained supervisors 2. The second possible solution: biases caused by inconsistency across supervisors 3.
The third possible solution: recency bias and personal bias from supervisors’ performance appraisal VI. ORGANIZATION OF ACTIONS 38 3 TIEU LUAN MOI download : skknchat@gmail.com CONCLUSTION 40 REFENRENCES 42 APPENDIX 44 4 TIEU LUAN MOI download : skknchat@gmail. The company background FPT Telecom Joint Stock Company (FPT Telecom) is a member of FPT Group – a Vietnam’s leading technology group. Established in 1997, FPT Telecom has three main products.
Those are FPT Television, FPT Internet and FPT Play box. After 20 years of operation and development, FPT Telecom now has more than 200 transaction offices of more than 80 branches in 54 provinces and cities in the country with more than 7,000 official employees and become the leading company in technology industry in Vietnam. Moreover, FPT Telecom also has launched 8 branches in Cambodia as well as having the licensed in order to provide services in Myanmar. They become one of the telecommunication and Internet service providers who are trusted and loved by customers all over Vietnam and the region.
From the beginning of establishing, FPT Telecom and their board of director set up their pioneering mission are bringing internet products and services to the Vietnamese people. They expect that every Vietnamese family will use at least one service of FPT Telecom with the motto "Customer is the most important". Along with their development and reputation, FPT Telecom is always trying to invest more in infrastructure, constantly upgrade the quality of products and services as well as 5 TIEU LUAN MOI download : skknchat@gmail.com enhance the application of new technologies so that they can provide their customers with superior service experience. The structure Annual General Meeting Board of Supervisors Board of Directors Board of Directors Functional Departments FPT International Telecom Limited Company HR Department Customer Services FPT Software Solution for Business Limited Center Company External Relation International Sales Tan Thuan Telecom Limited Company Department Department Quality Management & Development Center of FPT Telecom Tan ThuanJoint Stock Department Head Cable Company Training Research Center FPT Online Joint Stock Company Department Financial Network Center Branches of 7 Regions Department Media & Infrastructure Communication Department Center Third-Party Supporting Department Firuge 1.
FPT Telecom’s structure (Source: FPT Telecom Human Resources) 6 TIEU LUAN MOI download : skknchat@gmail. Number of sale volume in FPT Telecom & the decreasing in FPT Telecom – Region 5. NUMBER OF SALES VOLUME 35.000 - 2015 2016 2017 2018 Gross Region 1 Region 2 Region 3 Region 4 Region 5 Region 6 Region 7 Firuge 2. Number of sales in FPT Telecom (Source: FPT Telecom Business Department) FPT Telecom is separated into 7 regions for management and administration easily.
Those regions are Region 1 – Ha Noi Capital, Region 2 – Northwest, Region 3 – Northeast, Region 4 – Central, Region 5 – Ho Chi Minh City, Region 6 – Southeast and Region 7 – Southwest. Region 5 – Ho Chi Minh City is the biggest region because it contributes about 30 percent of FPT Telecom’s profit. 7 TIEU LUAN MOI download : skknchat@gmail.com Besides, Region 5 is also rated as the most effective area with the highest sales volume compared to the remaining six regions in the country from 2015 to 2018 However, in 2018, the turnover rate of Region 5 is 11%, highest compared to the rest regions in the country and the sale volume in Region 5 in 2018 decreased strongly, about 13% compared to the increasing of others regions. GROWTH 20% 15% 10% 5% 0% Region 1 Region 2 Region 3 Region 4 Region 5 Region 6 Region 7 -5% -10% -15% Growth 2016/2015 Growth 2017/2016 Growth 2018/2017 Firuge 3.
Growth rate of sales volume in FPT Telecom (Source: FPT Telecom Business Department) The lack of human resources in FPT Telecom Region 5 may be the reason leading to reduce number of sales. In fact, if Region 5 is not enough sales employees to sale the products of FPT Telecom, the sales volume in Region 5 will decrease and the business results will decline. The consequence is the results of whole FPT Telecom will be going down too 8 TIEU LUAN MOI download : skknchat@gmail. The turnover rate in FPT Telecom compared to the telecom industry’s turnover rate According to Michael Booz (2018), the turnover rate in telecommunication is more than 10%.
These sectors are two of sectors that have the highest turnover rate compared to the other sectors like oil & energy, aero/auto/transport, healthcare & pharmaceutical… Firuge 4. The turnover rate in some sectors (Source: Linked in) Like we talked above, FPT Telecom has seven regions. Based on the scale of the market of each region, the board of director of FPT Telecom will allow them to 9 TIEU LUAN MOI download : skknchat@gmail.com recruit a certain number of employees in order to implement the business plan of their own region. The number of sales employees that Region 5 is allowed to recruit is 60 people while the other regions are from 25 people to 50 people.
However, the actual number of sales employees or salesmen is always less than the number of employees is allowed to recruit in order to implement the business plan effectively. Region 7 Region 6 Region 5 2018 2017 Region 4 2016 2015 Region 3 Quota Region 2 Region 1 0 10 20 30 40 50 60 70 Firuge 5. The number of salesmen in FPT Telecom compared to the quota of salesmen that they are approved (Source: FPT Telecom Human Resources) This lack of human resources makes the implementing of assigned business plan seem quite hard in most of the time of year. 10 TIEU LUAN MOI download : skknchat@gmail.com Besides, one of the reasons for this situation also comes from the fact that the actual number of sales employees or salesmen is always less than the number of employees is allowed to recruit is the number of leaving employees or the turnover rates in FPT Telecom are quite high compared to the telecommunications’ turnover rate.
Year 2018 Total employees Sales employees OUT Turnover Rate Region 1 356 35 10% Region 2 259 21 8% Region 3 242 19 8% Region 4 329 24 7% Region 5 360 42 12% Region 6 201 17 8% Region 7 269 26 10% Table 1. The turnover rate in FPT Telecom (Source: FPT Telecom Human Resources) Based on the total current employees and the number of leaving employees, we can have the turnover rate in seven regions in FPT Telecom through in 2018. The turnover rate in Region 5 is the highest one, approximately 12% compared to the other regions, just from 8% to 10%. This Region 5’s turnover rate is even higher than the turnover rate of telecommunication sectors – approximately 10%.
This means the lack of human resources in FPT Telecom – Region 5 seems more serious in this time compared to the other regions and the board of director of FPT Telecom need to be cared and solve so that Region 5 could complete the business plan in the best way and contribute more for the profits of FPT Telecom. 11 TIEU LUAN MOI download : skknchat@gmail.com Turnover Rate 14% 12% 10% 8% Turnover Rate 6% 4% 2% 0% Region 1 Region 2 Region 3 Region 4 Region 5 Region 6 Region 7 Firuge 6. The turnover rate in FPT Telecom (Source: FPT Telecom Human Resources) 3. The turnover rate in Region 5 – Ho Chi Minh City in FPT Telecom Returning to the past, FPT Telecom just focused on two regions that are Hanoi and Ho Chi Minh City.
They just begin focusing on the other provinces and cities like Cao Bang, Lang Son, Tuyen Quang, Ninh Binh, Dong Nai, Ninh Thuan, Lam Dong, Ca Mau, Hai Phong, Da Nang… in five recent years. In the opposite, the competitors of FPT Telecom like Viettel Telecom and VNPT Telecom had their own position in 64 provinces and cities in Vietnam for a long time. Therefore, this expansion of FPT Telecom is supposedly late and in order to dominate the rest region as fast as possible, FPT Telecom needs to have enough employees to expand their products as well as maintain the current market segment. 12 TIEU LUAN MOI download : skknchat@gmail.com In fact, FPT Telecom does not have enough people to expand the products into 64 provinces and cities in the country like they wished, especially in Region 5.
Region 5 is the biggest region in FPT Telecom so it will be allowed to have60 salesmen in maximum.