Low job satisfaction in dupont vietnam

LIST OF FIGURES Figure 1: The global population from 1960-2020 Figure 2: Global Crop protection sales from 2009-2016 Figure 3: Export value of agricultural, forestry and fishery product

UNIVERSITY OF ECONOMICS HO CHI MINH CITY

International School of Business

-

NGUYEN THI NHAT SINH

LOW JOB SATISFACTION

IN DUPONT VIETNAM

ID: 22130061

MASTER OF BUSINESS ADMINISTATRION

SUPERVISOR:

PHAM PHU QUOC

Ho Chi Minh City – Mar 01, 2016

ACKNOWLEDGEMENT

I would like to express my great gratitude to my supervisor, Dr Pham Phu Quoc for his kindness, his professional guidance and encourage as well as his valuable comments and helpful advice through my thesis

I am sincerely thankful to Mr Vinh Nguyen, Mr Minh Bui, Mr Cole Truong, Ms Tien Nguyen, Ms Diep Nguyen and all MDOs and ISPs in Mekong Delta to give valuable information during in-depth interview and the data collection in the company

My special gratitude is extended to all instructors and staffs of International School

of Business - University of Economics Ho Chi Minh City that give me the guidance of research for the thesis course so that I can have a chance to apply theories to practice business

TABLE OF CONTENTS

Executive Summary 4

Chapter 1: Company’s Industry 5

1.1 Crop Protection Industry Overview 5

1.1.1 General Overview 5

1.1.2 Vietnam’s overview 7

1.1.3 Challenge and Difficulty of Agriculture in Vietnam 9

Chapter 2: Problem Identification 10

2.1 Company Introduction 10

2.2 Company Background: 10

2.3 Problem Context 11

2.4 General Symptom 13

2.5 Tentative Problems 18

2.6 The Real Problem: Poor Supervision Skills 24

2.7 Verifying the importance of the real problem 26

2.8 Potential Causes 28

2.9 Cause and Effect Map 28

Chapter 3: Alternatives Analysis and Possible Solutions 29

3.1 Verify root cause of the real problem 29

3.2 Possible Solutions: 30

Chapter 4: Selected Solution 34

4.1 Selected Solution 34

4.2 Implementation plan 36

Chapter 5: Supporting Information 38

5.1 In-depth interview 38

Transcript 38

5.2 Literature informed to confirm the potential caused of the real problem 50

5.3 Mini survey to indentify the root cause of the real problem 53

Reference 54

Appendix 62

LIST OF FIGURES Figure 1: The global population from 1960-2020

Figure 2: Global Crop protection sales from 2009-2016

Figure 3: Export value of agricultural, forestry and fishery products (2001-2012) Figure 4: Result of perceived supervisor support

Figure 5: Results of identifying root causes in DuPont Vietnam

LIST OF TABLES Table 1: General information of Vietnam

Table 2: The overall Turnover Rate in year 2013 and 2014

Table 3: Turnover-cost categories

Table 4: The Sales results in year 2013 and 2014

Table 5: Sales results of crop protection in Vietnam

Table 6: Annual base salary in 2013, 2014

Table 7: Sales Incentive Program

Table 8: Literature informed review –Factors influence job satisfaction

Table 9: Results of identifying root causes in DuPont Vietnam

Executive Summary

This Project examines why the sales of DuPont Vietnam has dropped over the last two years 2013 and 2014 since its peak in 2012 and the high turnover rate was significantly increased up to 25 % in 2014 The Project draws attention to the fact of peak sales in 2012; the market share is 3% Over the next two years, DuPont Vietnam reduced its market share

to 2.4% and 2.1 % year after year The volume of sales in the whole market was increased

47 million USD and 20 million USD in 2013 and 2014 with low growth rate However, DuPont had negative results with minus 7% and minus 10% reduced year after year

Low job satisfaction is the real problem since there is consistency research between literatures informed review, secondary data including in depth interview, mini-survey, financial and HR reports to confirm this real problem Further investigation, the root cause

of low job satisfaction is poor supervision skills considered and proposed the alternative solutions

There are three alternative solution proposed

 Management training programs: Coaching Skills, Project management,

Motivation Skills

 Additional Reward and Recognition program: Best group in the year, Peer

Recognition

 Team building for separated groups

The best solution to enhance poor supervision skills is management-training programs selected and implemented with proper plan

Chapter 1: Company’s Industry 1.1 Crop Protection Industry Overview

1.1.1 General Overview

Crop protection industry is a rapidly growing in global in general views and Vietnam

in private views Crop production products help and succeed the farmer’s means growing a healthy and profitable crop All good companies in this industry operate with mission of feeding the world sustainably to deliver the best agriculture products to create higher crop yields and nutritious foods with high quantity, quality and sustainability of the world’s food supply

Population growth and greater economic prosperity is emerging market will drive future demand for food and feed production The population is expected to rise from around seven billion to more than nine billion in 2050.Most of this population growth will occur in developing countries The CAGR is 1% percent year on year growth of population

Figure 1: The global population from 1960-2020

In parallel, a greater number of people will experience increased wealth and higher purchasing power, and as a result will increase consumption of processed food, meat, dairy and fish Agriculture must meet this demand to provide enough food and feed production to our current demand of world

Crop protection products protect plan from damaging influences such as weeds, diseases and insects There are three portfolios of products as below

(1) Fungicides: Products for preventive and curative control of crop diseases;

(2) Insecticides: Products for the control of crop diseases

(3) Herbicides: Products for Weed control

The below is global sale crop protection and outlook 2016 showing that the sales of this business with trend increasing especially in Asia-Pacific country

Figure 2: Global Crop protection sales from 2009-2016

Source: Amis Global Crop protection &Seed Database

Notably, the demand of crop protection product is increasing from year by year especially for developing country where the demand of food is high

1.1.2 Vietnam’s overview

Over the past years, Vietnam’s agriculture production has made significant achievements, contributing to the national food security, economic development, trade balance, reducing inflation, defending the territory as well as stabilizing socio-political situation in Vietnam Although Vietnam has undergone obvious changes in economic and labor structure, so far, more than 70% of Vietnamese population lives in the rural areas Therefore, agriculture production is their main livelihoods

Table 1: General information of Vietnam

For instance, Vietnam enjoys a good location to invest the crop protection with as huge agriculture arable land and highest land productivity compared to Cambodia, Laos Thailand, respectively Many famous companies such as Sygenta, Bayer, Dow, DuPont and others enjoy investing their science products on agriculture products’ treatment on crop Agricultural exports have increased continuously Vietnam is now one of top world exporters in agriculture products such as rice, rubber, coffee, pepper etc Vietnam poverty reduction rate has improved for a long period, with a very impressive rate of 2% per year Vietnam is currently the second biggest rice exporters in the world after Thailand Vietnam

is global agricultural and important foundation for social stability, political security, as well

as for environmental protection

The contribution of agricultural products accounts to the total exports of Vietnam is remarkable from 49% in 2011 to 57.7% in 2012 The export value of the agricultural sector has significantly increased since 2000 (except 2009)

Figure 3: Export value of agricultural, forestry and fishery products (2001-2012)

1.1.3 Challenge and Difficulty of Agriculture in Vietnam

Presently, Vietnam is facing with three main issues:

(i) outdated, low productivity and quality of the products; low competitiveness (ii) high cost, low price, low profit

(iii) Weakness of processing industry; infrastructure serving the agricultural

industry is underdeveloped

Despite several inefficiencies and weaknesses, Vietnam’s agriculture is now a major driver in the development contributed to GDP sector up to 20% Agriculture plays an important role in trade balance of Vietnam Currently, economic development depends much on agriculture It is known that agriculture remains the great advantage of Vietnam, given internally in the agreement of Trans-Pacific Partnership (TPP) In the context of integration, Vietnam increasingly defines its strategic role in world agriculture Although, there are many difficulties ahead, with the non-stop efforts, Vietnam agriculture will catch

Chapter 2: Problem Identification 2.1 Company Introduction

Nowadays, business owners face the challenges of maintaining productivity, as well as keeping their workforce engaged and motivated The greatest challenge of an organization is

to ensure the wellbeing of its employee Manager is facing with the most complex areas in managing their employees Satisfied employees tend to work more productivity than employees have not satisfied The low level of Job Satisfaction, it could made high absenteeism since employees will seek reasons to do not work or try to find other opportunity In addition, It could made potential low performance in the organization

DuPont Vietnam Ltd is a global company, established its business crop protection’s product in 1998 and its head office located in Ho Chi Minh City, Vietnam The company has built the strong network of sales& marketing force with 120 including ISP (Individual Service Provider) and MDO (Marketing Develop Officer) in Northern, Central and Southern regions of Vietnam In the last two years, the company has confronted with low sales performance year after year up to 10% and very high turnover rate in Sale Department up to 25% in 2014 Hence, this dissertation to focus on vital factors that affect to the high turnover rate of employee and low sales performance In this study, I would like to focus on Mekong delta with 72 ISPs and MDOs since other regions are in stable, less affected on the target of sales performance per years

2.2 Company Background:

DuPont Vietnam Ltd is a global science company, established its business crop protection’s product in 1998 and its head office located in Ho Chi Minh City, Vietnam

Name of Company: DuPont Vietnam Ltd

Short name: DuPont Vietnam

Head office: 17 Le Duan Boulevard, District 1, Ho Chi Minh City

 Location: 12 Thong Nhat Street, Song Than 2, Industrial Park, Di An, Binh Duong

 Establishment: 15 June 1998

 Award: Award of Commendation from National Safety Council; Certified ISO

9001:2000 from DET NORSKE VERITAS (DNV) Vietnam

 Operation: Repacking and packing Crop Protection product

 Market: Local market

depending on their performance vs target The company has three distributors, 80 dealers, and more than 1000 sub dealer (retailer) It operates 10 percent in the North, 10 percent in Central and South East and 80 percent in Mekong delta Company’s target is increasing sales and interaction with sub dealers over years In fact, sales decrease 2 years recently up

to 10% In addition, ISP and MDO’s turnover is increasing up to 25% Sales results directly affected to the price of stock on the market Big stockholders are creating the pressure of improving the price of stock at DuPont As soon as possible, DuPont needs to find out the key problems that mainly affected to the results and propose the solutions accordingly to solve the problems in an organization.Organization Structure is as below:

DuPont sets up its business organizational structure into particular sections that focuses on sales achievement In details, sales division is quite heavy of allocation that the end level (ISP) has three supervisor’s level in which two levels belong to headcount of the company and one level belongs to service contractor Marketing division has the same

structure This structure presents the Sales Managers and Marketing Manager is facing with the struggle in managing the employee since there are three level of supervision and immediately supervisor is not a headcount of the company

2.4 General Symptom

The objective of business owners is profitability Employee plays a key performance

to determine company’s success According to Kim and Rhee (2011), employee is one of the most important strategic constituencies of organization Boudreau and Ramstad (2007, p.4) called employee, labor, human capital or talents is recognized as critical to strategic success and competitive advantage Therefore, satisfying employee could not only enhance employee productivity but also increase the cost efficient workforce in the organization that cultivates quality external relations and protect the reputation of the company that is the most value (Berger, 2008)

Firstly, here is the turnover incident that happened in the DuPont Vietnam These employees are ISPs and MDOs who work under sales team and marketing team There were

12 out of 62 people in 2014 and 17 out of 68 people in 2014 left the company up to 25% out

of total employee based on the annual report of Human Resource (HR) Department In fact, this turnover is high turnover ratio since the average turnover rate of all industry in Vietnam

Employee turnover well defined as replacing a termination employee with a new employee This process is completed once the replacement to fill the open vacancy called successfully recruited The turnover rate is the number of employee who leaves during a period divided by the average number of employees during a period (Price, 1977)

High turnover, continuous recruitment, high training costs, extensive coaching, and lower performance management are hurdles that company must overcome to be successful (Grig, 2005).The costs of turnover depend on company's particular mix of employees Some are relatively inexpensive to replace, some are quite a bit more costly Turnover of less skilled workers is still expensive Hale (1998) stated that employer cited recruitment cost of 50% to 60% of an employee’s first year‘s salary and up to 100% for high skills position There are several different costs associated with employee turnover such as separation costs (e.g exit interviews), replacement costs (e.g recruiting, screening, interviewing), new-hire training and general administration Other, are the costs related to less efficient performance, caused by reduced efficiency during the training period (Dess and Shaw, 2001) Woodruffe (1999) defined that every employee that leaves the organization is a lost investment, a sunk cost Laddha et al., (2012) stated, “Employee turnover is one of the largest though widely unknown cost and organization faces” According to Hinkin & Bruce (2000), any company that is experiencing a high degree of turnover is incurring unnecessary financial costs as well as decreases in service quality and the quality of work life Similarly, Silverthorne (2004) noted that, “turnover causes significant expense to an organization,”

Table 3: Turnover-cost categories

Separation costs  Exit interviewer

 Employee exit interview

 Paperwork processing

 Severance pay

Recruiting and attracting costs

 Advertising

 Search and agency fees

 Managerial pre-employment administrative functions

 Applicant travel

 Recruiter time

 Miscellaneous (correspondence, telephone, couriers)

 HR pre-employment administrative functions

Selection costs  HR interview

Hiring costs  HR administrative functions

 Managerial administrative functions

Lost productivity  Vacancy cost

 Pre-departure productivity loss

 Learning curve (cost incurred and lost revenue)

 Errors and waste

 Supervisory disruption

 Peer disruption

Thus, turnover is the first bad symptom of underlying problems in DuPont Vietnam

Sales performance is the measurement sales results that an employee makes for a business High sales numbers determine the success of the company no matter if they do business with goods or services In the other words, the more products a company sells the higher their profit is Conversely, Low sales performance has shown the weak of sales resource as well as marketing strategy in term of creating demand and sales in the marketplace

Secondly, here is the sales performance incident in 2013 and 2014 compared with target Both year 2013 and 2014 has declined compared target and last year For instance,

2013 sales result is decreased 6% vs target and 7% vs.2012 In 2014, sales result is reduced 9% vs target and 10% vs.2013 based on the GCCAP global system of DuPont Refer to table 2- Sales Results of Crop Protection in Vietnam were shown that other competitors in

2013 are still slowly growth up to 10% but lower than last year In 2014, they still keep the growth up to 4% while DuPont has negative results in these years

Table 4: The Sales results in year 2013 and 2014

In million USD

(Source: Data from GCCAP Global Financial System in DuPont)

Table 5: Sales results of crop protection in Vietnam

(Source: DuPont Data analysis from Raw Material import data of Vietnam’s Custom Department)

Notably, DuPont Vietnam did not achieve the target or the results even lower than last year This poor sales performance leads high inventory related cost, high product management cost, low sale productivity cost and poor order fulfillment performance (Jain, 2008).Low sales performance is critical issue of all company since sales are the lifeblood of the business When the sales reduce, the company must consider cutting cost of many areas Thus, Low sale performance is the second bad symptom to the company

Here are some tentative problems, which the writer has found through the in-depth interview and secondary data from the annual reports of HR, Finance, Marketing Department and other outside resource For instance, a sample of five people who are managers and mid-level managers at DuPont Vietnam was targeted for in depth interview These people have the good experience and knowledge to evaluate the current situation at the company

2.5 Tentative Problems

The First Tentative Problem: Poor Pay &Compensation

Referring to the transcript of the in depth interview in chapter 4, all five people reveal that the critical problem can be Compensation and Benefit Most of them have been working

for the company from 5 years above They said, “The turnover, intention happens due to

low job satisfaction on pay, incentive sales program and benefit of social insurance and others In fact, they do not see the bright future to have a long-term commitment to the company Fix pay is lower than benchmark and other companies have paid social insurance since they are a headcount of the company Variable pay is hard to achieve since the regression of the company’s sales results as well as level percentage of achievement would from 90% of target number Consequently, the employees may lose their inspiration working to impact their leaving as well as potential of low sales from year 2013- 2014”.General speaking, employees have the right to choose to work at good working

environment Currently, ISPs and MDO sign the service contract with fix and variable payment without any benefit such as social insurance and unemployment insurance.Herry and Noon (2001) defined pay as payment, with many components such as basic salary, benefits, bonuses, incentives Martocchio (1998) described that compensation include both intrinsic rewards and extrinsic rewards Extrinsic rewards include monetary and non-monetary rewards Non-monetary rewards are apart from basic pay such as benefits

According to survey results, there is negative correlation coefficient relationship between non-monetary compensation initiatives and sales force turnover(John at all, 2013).For instance, ISPs and MDOs get nothing from benefit of social insurance, and less

commission of variable payment which has strong influence on employee motivation and retention according to Barton (2002) Notably, pay and benefit is an important component for the retention of employees since they feel inequality regarding pay between their company and other’s company they tended to dissatisfied and disappoint with their company Less pay as compared to work done is one of that extrinsic factor which is responsible for job dissatisfaction (Robbins, 2003)

According to the annual report which writer do the analysis for annual base salary according to 3 level of ISPs and MDOs compared with benchmark as below table

Table 6: Annual base salary in 2013, 2014

Graduated Level 90,000,000 97,200,000

Experience Level 108,000,000 118,800,000

Leader Level 132,000,000 147,840,000

(Source: Business Analysis report in DuPont Vietnam)

The base salary is quite good with average is 10 million VND However, it excluded all social, unemployment and health insurance with totally 11.5% according to Labor law Likewise, the average base salary of salespeople is around 10million VND according to some surveys in Vietnam The different between DuPont and others company in the same industry is no social insurance and unemployment insurance

In addition, Sales incentive programs belongs compensation part are intended to drive sales revenue to motivate and reward salespeople and customers A commission motivates the sales force to work harder (Coughlan & Joseph, 2012) In the study, U.S companies used $200 billion U.S on sales force incentives in 2010 (Zoltners, Sinha& Lorimer, 2012) According to result of survey, there was a strong positive correlation between the level of sales incentives and the level of sales performance (achievement) (Brante, 2004) Sales

incentives would have an impact in driving sales revenue is consistent (e.g., Blattberg& Wisniewski, 1989: Murphy et al., 2004) To be more clearly about ISPs and MDOs commission scheme, to understand how hard to achieve them, the below table would clarify more

Table 7: Sales Incentive Program

Briefly, the first problem of DuPont Vietnam is poor pay, poor compensation and benefits It drastically decreases the working motivation, create the turnover intention and affect to sales performance of the company

The Second Tentative Problem: Poor Supervision Skills

Another thought from Ms.Tien, who currently works as Regional Leader to manage the ISPs team at Long An, Tien Giang and Ben Tre Province at Crop protection business,

she said, “ISPs team is not happy with the treatment and behavior of direct supervisors, lack

of their selling skills to support them in creating sales” Likewise, another thought from Ms

Diep, who currently works as HR Executive, managing HR of service contract related said

“The reason to leave is mostly from dissatisfy their direct bosses They complained about

their treatment fairness, inconsistent in work as well as low skills of consultant to the team”

.Leaders often treats their subordinates differently, creating a relationship that affects their overall job satisfaction The understanding of these relationships is extremely important since one survey shown that 77% of employees in America are unhappy with their jobs (Lussier & Achua, 2004) The number one reason people leave organizations is that their bosses are treating them poorly Williams (2002) Another research found that those who remain in their jobs, working for poor bosses, have lower job satisfaction with higher conflict between work and family (Tepper, 2000) Turnover issue both in academic and practice asserted that supervision plays a meaningful role in employee turnover decisions (Morrow, Suzuki, Crum, Ruben, &Pautsch, 2005) Additionally, poor supervision skills might influence to sale performance Since supervisors have lack of selling skills to enhance sales results, team members will disappointed and tend to under- performing Consequently, poor relationship between supervisors and subordinates leads to low job satisfaction (Lewis, 2003; Ikpang, 2005, Enoch and Swine, 2007) No doubt, therefore, several studies have provided examples of supervisory behaviors that can ultimately

enhance or drive employee performance (Meyer, 1968; House et.al, 1971).Sales supervisor’s main role is the development of their sales teams for maximum performance and results There is a direct correlation between a sales professional’s success and the competence, value and mentoring abilities of supervisors In the survey of Bhate (2013), sample of 8784 accessed a perceived supervisor support, by asking employees to rate their agreement with six statements Overall, more than 80 percent of the employees in our seven-country sample indicating that the majority of the respondents perceived their supervisors to be supportive

Figure 4: Result of perceived supervisor support

Briefly, the second problem is Poor supervisor Skills in sales team and marketing team, this problem steadily leads to turnover intention and low sales performance in two recent years

The Third Tentative Problem: Low Job Security

Mr Vinh who works as the Business Manager and Mr Minh who works as Sales Manager as well as Ms Tien who works as Regional Sales Leaders at DuPont Vietnam have

the same another thought They said, “ISPs and MDOs do not feel satisfaction of security in

their job at the current environment The contract is signed one time per year, no change of

duration period due to the kind of contract In term of regression or restructure, the stability

is gone away They worry about their future and sustainable growth for their career path Additionally, the nature of the contract, no social insurance and unemployment insurance to

be applied to ensure certainty for their base living cost term of retirement or suddenly losing job” General speaking, every employee has the demand of job security, freedom to

chose the good working environment to fulfill their needs Job security contributes the peace, focus and satisfaction to work with all effort in the firm For instance, job security has strong positive associations with outcomes of organization (Reisel et al., 2010).Job security is one of factor of job satisfaction regarding to Quasim, Cheema, &Syed( 2012) stated that environment, promotions, job security, teamwork, organizational structure, compensation, benefits are factors of job satisfaction which encourage employees to work more efficiency In addition, results of intention showed that there is a negativeassociation between Job security and turnover intention (e.g Sora, Caballer, &Peiró, 2010)

Notably, the third problem of DuPont Vietnam is low satisfaction on job security It significant decreases the working motivation of employee to create the high turnover

intention and low organization outcomes

The Fourth Tentative Problem: Co worker relationship

Inefficient internal communication between the team, supervisors and subordinates;

marketing and sales team is truly another tentative problem, which are advice from Mr Vinh, Business Manager, Mr Minh, Sales Manager, Mr Cole, Marketing Manager and Ms

Tien, Regional Sales Leader They said, “Lack of connection, understanding and

cooperation across functions, especially cross communication between sales and marketing

is quite loose In addition, they feel ambiguous, lack of information and low teamwork spirit

in the team” General speaking any organization with any size, operating at any industry, in

anywhere cannot do business without communication Notably, every company needs essential information from its environments to survive in an extremely competitive market Communication is the process of sharing ideas, information, thoughts, feelings and messages with others in a particular time and place Internal communication is central to the success of performance of all organization (Hargie, Dickson &Tourish, 2004, P.5); hence, it becomes the core process that business can create value Internal communication enhances productivity, reduces absenteeism and costs (Argenti, 2007) In contrast, Poor communication in workplace causes many negative consequences for the company According to Muema (2012), poor communication causes of employee turnover Moreover, Hargie(2004) claimed the ineffective communication leads high rate of employee turnover, useless coordination of activities from all department

As above explanation, inefficient internal communication between the members in the team, relationship supervision subordinate and cross-functional communication of sales team and marketing team is the fourth tentative problem of the company

2.6 The Real Problem: Low Job satisfaction

The in depth interview helps the writer finding out these four tentative problems Some factors are not satisfied from workforce such as compensation and benefit, sales incentive program, supervisor behavior, job security and inefficient internal communication

as well as low of coworker They cause two bad symptoms in the company like high turnover and low sales performance respectively After showing the tentative problems and

the list of some facets, the writer conducts to review literature informed to identify the real problem

Firstly, there are many studies to indicate the factors influence Job Satisfaction (i.e Bellenger, Wilco & Ingram, 1984; Coster, 1992; Strymdom & Meyer, 2002 cited in Tanvir

& ShahiMd, 2012) such as job security, promotion opportunity, working condition, financial rewards, communication Likewise, Lawrence (2005) listed the ten facets of job satisfaction: type of work, job security, coworkers, company, advancement, pay, supervision, hours, benefits and working condition Moreover, Smith, Kendall and Hulin (1969) measured five facets for job satisfaction: pay, promotion, coworkers, supervision Additionally, Job Satisfaction Survey created by Spector (1985) and Spector (1994) with nine facets: pay, promotion, benefit, working condition, coworker, reward, supervision, nature of work and communication In some other studies, creating job satisfaction in the individual depends on several factors drive to desired results Ladebo (2005) studied some factors such as salary and wages, staff, administration, promotion and the nature of the work Some other factors are interpersonal behavior, working conditions, coworker, leadership style, rewards and promotions, is positively associated with job satisfaction among employees (Donovan, Drasgow and Munson, 1998).Each of these facets

is studied to positively correlate with overall job satisfaction (Spector, 1985; Warr, 1996) Secondly, many literatures proved that job satisfaction significantly negatively associated with turnover intention (Byrd et al, 2000, Organ &Ryan, 1995, Huning & Thomas,2011, Saari &Judge, 2004).Additionally, Talat et al (2012) and (Vroom, 1964)

claimed that low job satisfaction increases the absenteeism and turnover rates (Clark et al., 1997)

Thirdly, many literatures informed also proved that job satisfaction strongly affects to the results of sales (Fu et al, 2011) and Fu & Deshpande (2013) from using model SEM to examine on 476 employees working in Chinese company with confirmed the results of job satisfaction strongly influenced to job performance In addition, Hira and Waqas (2012) found there was a positive relationship between job satisfaction and job performance in a survey of 335 respondents that work in middle level of banking sector Iqbal et al (2012) also found that job satisfaction has a positive impact on job performance in a survey of 251 respondents

To sum up, Job satisfaction is the real problem of this company since it matched with all the factors that cause two bad symptoms in the interview and the effect of them

2.7 Verifying the importance of the real problem

Job satisfaction tells how much employee like their jobs Job Satisfaction (JS) is defined as "the extent to which people like (satisfaction) or dislike (dissatisfaction) their work" (Spector, 1997, p 2) If workers feel respected and satisfied at work it is the foundation for effective work In the organization’s point of view, good job satisfaction can lead to better performance of the workers that affects the result of the company Employee satisfaction has generally considered as the driver of the employee retention and employee productivity Satisfied employees are increasing productivity, responsiveness, quality, and customer service (Kaplan, 1996) In addition, Job satisfaction, turnover, personality types, motivation and role clarity in strong relationship sales performance (Predmore,

1996;McNeilly, Russ, 1992).Such employees are more likely to experience higher levels of job satisfaction and should be less likely to leave an organization (Hanson & Miller, Jr., 2002)

Job satisfaction plays a key element to succeed any organization On contrast, low job satisfaction in workplace is a serious problem and brings many consequences for the company such as loss of productivity, absenteeism, employee turnover low commitment, sales performance (Benkhoff, 1997) In this case, DuPont Vietnam, low job satisfaction causes high turnover rate and poor sales results are the clearly visual negative results

Firstly, this is high turnover rate, in human resource context employee turnover understand replacing a termination employee with a new employee It can be extremely devastating for any organization It makes employee difficult to maintain a steady and successful operation Macintosh and Doherty (2010) stated that job satisfaction strongly influenced the intention among employees In this study, Turnover rate in DuPont Vietnam

is high up to 25% much higher than 10% average industry (refer to table 2) It is not only the cause making the company lost the talent but also make the company spend a lot of money of cost of turnover intention that is mentioned at the first bad symptom of the real problem

Secondly, this is low sales performance in 2013 and 2014 compared with other competitors in the same industry (refer to table 3) to reflect the significant reduce sales related to the job satisfaction which is the real problem It is not only the cause reflects the weak competitive advantage and health of business but also create a high cost of product

inventory, management improvement and others related finance cost Itis mentioned at the second bad symptom of the real problem

2.8 Potential Causes

After finding out the real problem, to identify accuracy the root causes of central

problem, the writer lists out the potential causes by conducting the review of literature informed From the literature review list of results, following table 8-Literature informed review –Factors influences job satisfaction in Chapter 4.The writer mapped with four tentative problems from in depth interview and confirms the potential causes of key problem-Job satisfaction as below Cause and Effect Tree

2.9 Cause and Effect Map

The main problem and its consequences is outlined as following tree :

After cross checking with the literatures informed and combining with results receiving from in depth interview, the causes and effect map is built as below:

Chapter 3: Alternatives Analysis and Possible Solutions 3.1 Verify root cause of the real problem

To verify the root causes of job satisfaction, a quantitative evaluation method is preferred to use The writer conducted the mini survey to find to factors which workforce is most unsatisfied The questionnaire is built based on the reference of the survey to identify the level of job satisfaction of Spector (1985) The questionnaire is revised to have more proper suitable with the purpose of the thesis Following the Appendix, It is included four factors from the left side of cause-effect tree designed to four questions to focus on how workforce is satisfied with them There are five level of satisfaction from 1 to 5 to indicate from “Strongly Dissatisfied” to “Very Satisfied” 72 employees are received the questionnaires via emails Finally, 68 completions are in valid, representing a response rate

of 94.4 percentages Following table 9 and Figure 5 The results from this showing that factor of Supervision with 42.6% Very Dissatisfied, 27.9% Dissatisfied, no respondent insights that he/she satisfied with the mean is lowest: 1.87 The question for this factor is

concerned about how their feeling about their immediate supervision’s treatment, skills and support Hence, supervision is the root cause of job satisfaction in DuPont Vietnam

Supervisor-subordinate is an important relationship of creating the success in any organizations Developing this kind of relationship involving support, trust, information sharing, linking, respect has been shown to improve employee attitudes and performance (Gerstner &Day 1997, Nystrom 1990).In addition, some studies to show the influence of supervisor’s attitude on subordinate’s productivity (Fiorelli, 1988), job satisfaction, turnover and absenteeism (Busch, 1980; Martin and Hunt, 1980) To sum up, an employee with a strong superior-subordinate relationship would experience reduced strain or stress in working and potentially view the organizational policies in a positive light (Joseph at all, 2011)

3.2 Possible Solutions:

Firstly, Supervisors tend to have a strong communication in mentoring and coaching (Campbell & Swift, 2006) Strong coaching relationships between supervisors and subordinates with help to reduce the strain associated with understanding and implementing

in work It enhances subordinates a good communicate clear needs with their supervisors and access to advice, policy, and explanation to solve the problems in their current jobs Therefore, coaching skills would be the first valuable skills as supervisor can learn to know how to coach and manage effectively the team There are different Roles and Skills between leaders and team members; therefore, it would be the matching between leaders and team members through the routine coaching