UNIVERSITY OF ECONOMICS HO CHI MINH CITY International School of Business ------------------------------ Tran Thi My Linh INEFFECTIVE WORKPLACE CULTURE AT PHU NHUAN EXCHANGE PROPERTYX JOINT STOCK COMPANY MASTER OF BUSINESS ADMINISTRATION SUPERVISOR: LE THI THANH XUAN Ho Chi Minh City – Year 2020 TIEU LUAN MOI download : skknchat@gmail.com Contents Executive Summary. Hung Thinh Corporation overview. PropertyX Joint stock company overview. Lowest revenue among exchange systems.
Highest turnover rate. The First Potential Problem: Ineffective Leadership. The Second Potential Problem: Ineffective Employment. The Third Potential Problem: Ineffective Workplace culture.
Poor working conditions. Poor work-life balance. Low employee engagement. Lack of Training & Development focused.
Lack of Transparent & Open communication. Weak Team spirit. CAUSE AND EFFECT MAP. The first potential cause: Rigid Policies.
The second potential cause: Weak of management practices and the formal socialization process. The third potential cause: Autocratic leadership. The first alternative solution: Changing leadership style. 33 1|Page TIEU LUAN MOI download : skknchat@gmail.
The second alternative solution: Replace position - Director of Phu Nhuan’s exchange. 54 LIST OF FIGURES Figure 1: Top 10 Most Reputable Property Developers 2019 (Source: Vietnam Report, Top 10 Reputable Real Estate Companies 2019, March 2019). 6 Figure 2: Company structure (Source: Company website). 8 Figure 3: Exchange structure (Source: Company website).
8 Figure 4: Top 5 Most Reputable Real Estate Agencies 2019. 9 Figure 5: Initial Symptom and Potential problems diagram. 20 Figure 6: Updated Initial Symptom and Potential problems diagram. 22 Figure 7: Initial Cause and effect tree.
31 Figure 8: Final Cause and effect tree. 32 Figure 9: Leadership Style. 33 LIST OF TABLE Table 1 : Annual Revenue report of PropertyX 2016-2017-2018 (Source: Company report 2016- 2017-2018-2019). 11 Table 2: Turnover rate 2016-2019 (Source: Human resources report 2016-2019).
12 Table 3: Number of employee - Phu Nhuan 2019 (Source: Human resources report 2019). 12 Table 4: Board of Management’s expectation on replacing director position effectiveness. 41 2|Page TIEU LUAN MOI download : skknchat@gmail.com Executive Summary This thesis provides an analysis and evaluation of the ineffective workplace culture of Phu Nhuan exchange, one of the PropertyX exchange systems and recommends the solutions to improving the sale revenue and decrease the high turnover rate. Methods to find out the central problem of Phu Nhuan include primary data from internal and company reports, two- round in-depth interview and related literature frameworks.
Results of the finding show that leadership style is not suitable with Phu Nhuan exchange anymore and have bad effect to employee performance and engagement. Further investigations reveal that good or positive workplace culture has many benefits such as: higher employee’s performance, increase employee satisfactory and engagement, lower turnover rate, higher team spirit. Of course, Phu Nhuan will face many challenges if they want to successfully implement the leadership style changing. These include challenges from replace senior position as well as changing workplace culture and the pressure to get the sale target.
In addition, the thesis will base on the main cause of the effect of autocratic leadership style to propose two alternative appropriate solutions: The first is changing leadership style and the second is replacing director position by promoting person from other exchange. Based on relevant factors as well as considering advantages and disadvantages, a detail action plan was conducted to implement the second alternative solution is Replacing director position by promoting person from other exchange for better workplace culture. This will help to predict accurate measurement of figure performance to determine whether Phu Nhuan invest in this project. 3|Page TIEU LUAN MOI download : skknchat@gmail.
Hung Thinh Corporation overview Hung Thinh Corporation had more than 17 years of run in the field of real estate at Vietnam. Company have the efficient board of director, right strategy and the efforts of whole employees Hung Thinh brand is is one of the strongly named in the market and continually develops into a well-known real estate company not only in Ho Chi Minh city but also expand to many other provinces. Hung Thinh Corporation has more than 50 member companies, 3 representative offices and system of 9 property exchanges. Company has over 2,500 staffs working in the fields of investment, architectural design, construction, furniture, distribution and many kinds of fields to meet the growing development target.
More than 50 member companies run in many kinds of different sector to help Hung Thinh Corporation to form a closely associated process in real estate supply chain. This provides the high quality products at reasonable prices for company’s partners and customers Hung Thinh Corporation always focuses on real estate development as the foundation for all business activities is. Invest in real estate field will help to create stable and sustainable growth and affirm are the comprehensive strengths of corporation. Hung Thinh try to use the strength of exploitation and available core competencies to expand investment to other fields, company is always committed to bringing good values to partners and customers.
The Board of Directors and every employees of Hung Thinh Corporation always try to bring to the market the quality projects and become a reliable name in the market. Member Companies Hung Thinh Land Joint Stock Company ( Hung Thinh Land ) Hung Thinh Incons Joint Stock Company ( Hung Thinh Incons ) Property X Joint Stock Company ( PropertyX ) Hung Thinh Furniture Joint Stock Company (Hung Thinh Furniture) Prowind Architecture Joint Stock Company (Prowind Architecture) Nam Hung Thinh Housing Trading Joint Stock Company Cong Ty Co Phan Dich Vu Giai Tri Hung Thinh Quy Nhon Binh Trieu Engineering And Construction Joint Stock Company Hung Loc Investment Business Joint Stock Company Viet Tam Joint Stock Company Hung Thinh Cam Ranh Limited Liability Company Khai Huy Quan Corporation Lam Vien Investment And Commercial Service Joint Stock Company 4|Page TIEU LUAN MOI download : skknchat@gmail.com Doi Dua – Hoan My Trading And Service Joint Stock Company Gia Dinh Star Investment Jont Stock Company Cam Ranh Mystery Joint Stock Company Thuan Thanh Phat Co. Khai Thinh Real Estate Joint Stock Company Hung Loc Tree Business Investment Joint Stock Company Indec Infrastructure Development Joint Stock Company On March 15, 2019, Top 10 Prestigious Real Estate Companies in 2019 was announced Vietnam Report JSC. This is an independent research result of Vietnam Report published annually since 2016.
The result based on: - Media Coding method has been applied by Vietnam Report and its partners since 2012, and put together with in-depth research with high growth potential industry such as: Banking, Insurance, Securities, Food – Drinks, Retail… Media coding method is used to evaluate media prestige by encoding related company articles on some influential media channels; survey of industry experts; survey of residents living and working in big cities on the level of satisfaction with products or services. - Financial capacity is used to evaluate the prestige of companies by using the recent company financial. - The survey on the operation situation, number of projects, progress of project handover, etc… in 2018 – 2019 is also used as an additional factor to determine the position of enterprises in the industry. Based on the result of the research, Hung Thinh Corporation is at 7th position.
5|Page TIEU LUAN MOI download : skknchat@gmail.com Figure 1: Top 10 Most Reputable Property Developers 2019 (Source: Vietnam Report, Top 10 Reputable Real Estate Companies 2019, March 2019) 1. PropertyX Joint stock company overview PropertyX is one of member of Hung Thinh Corporation. PropertyX has 9 real estate exchanges systems and over 1,200 emloyees working at Ho Chi Minh and other provinces in the country such as: Ha Noi, Binh Dinh, Vung Tau. Based on mission and strategic vision of Hung Thinh Corporation, PropertyX try to bring high quality products to customer and continue on the way to develop a sustainable community.
Company vision is developing PropertyX to be the the biggest and prestige real estate business and distribution company not only at Ho Chi Minh City but also in Vietnam. By providing quality and affordable products with increasing value over time, PropertyX is always tries to build the civilized and prosperous community. Besides that, preparing the high quality employees to develop the company’s competitiveness; try to get the development of the economy and creating many great values for the society. PropertyX’s target is "Professionalism - Efficiency - Sustainability".
Company always focuses on building the professionalism with a pioneering strategy by training and changing to adapt globalization every day. PropertyX provides the diversity of products, trying to bring to customer as much as possible high quality product with suitable price to maximize the value of each project in order to bring the highest efficiency to customers. PropertyX believe 6|Page TIEU LUAN MOI download : skknchat@gmail.com that a sustainable society is the most important factor to develop the company successful. Therefore, company strongly focuses on improving the quality of community, nurturing and creating good living values in the society.
Company’s mission is developing the civilized and prosperous community. PropertyX tries to build good conditions for employees to develop their abilities and encourage them to learn and develop their knowledge. It will help them to have higher performance and make loyal with company. All employees worked at PropertyX will be respected, listened and shared by board of director and leadership teams.
Besides that, PropertyX believe that focus on training is a good way to invest for the Company’s future success. Therefore, PropertyX usually organizes many training course to develop soft and hard skills. They will clearly shape employee’s career path forward to the best goals. Training activities are organized to build and develop qualified employees in terms of quality and quantity to meet the requirements of work regularly.
Moreover, with team building each 6 months for all employees connect with training is an effective way to help develop staffs knowledge and team sprits. With many kinds of activity, Board of Directors of company has always orientated PropertyX to become a good workplace for all staffs. With ideal workplace, employees can get the high performance than company’s expectation. Company Projects: Condominium 8x Thai An, 12 View, Thien Nam Apartment, 91 Pham Van Hai, 8x Rainbow, 8x Dam Sen, 8x Plus, Sky Center, Melody Residences, Florita, Vung Tau Melody, Lavita Garden, 9view Apartment, Saigonmia,Citizen.Ts, Moonlight Residences, Moonlight Park View, Moonlight Boulevard, Richmond City, Lavita Charm, Q7 Saigon Riverside Complex, Q7 Saigon Riverside Complex,Quy Nhon Melody, Q7 Boulevard, Vung Tau Pearl, Grand Center Quy Nhon Land Plot – Villa Hung Thinh Villas, La Residence Hung Thinh, Sentosa Villa, Golden Bay - Cam Ranh, Khanh Hoa, Cam Ranh Mystery Villas, Saigon Mystery Villas, Golden Bay 602, Bien Hoa New City, Ba Ria City Gate, Para Draco, Vinh Long New Town 1.
PropertyX’s structure PropertyX has Board of Directors, including: - General Director Head of Real Estate Exchange System - Permanent Deputy General Director Head of Sales - Deputy General Director Head of Finance – Legal Pratice - Deputy General Director of PropertyX 7|Page TIEU LUAN MOI download : skknchat@gmail.com PropertyX has 9 exchange, each exchange has Board of Exchange Directors (figure 2), including: - Director of Exchange - 02 Deputy Director Figure 2: Company structure (Source: Company website) Each small sales group will have from 07-15 sales and each sale manager will manage 30-35 sales. Administration includes 03 administrators. Figure 3 show structure of each exchange. Figure 3: Exchange structure (Source: Company website) 2.
Industry context The result in Figure 4 below based on the research on the evaluation of industry experts using financial factors point, business image from the mass media. According to 8|Page TIEU LUAN MOI download : skknchat@gmail.com Vietnam Report JSC, Vietnam real estate in 2018 has still grown but it can be accepted. The overview of the real estate market in 2018 changes slightly better than that in 2017 was evaluated by nearly 50% of enterprises.