Low job satisfaction at BIDV x branch

Organizational structure of Admission Center On 30/06/2018, X Branch has 51 employees who work in 7 departments including: 1 customers service department, 1 internal department HR, fina

UNIVERSITY OF ECONOMICS HO CHI MINH CITY

International School of Business -

HO YEN LY

Student ID: 22160029

LOW JOB SATISFACTION

AT BIDV X BRANCH

MASTER OF BUSINESS ADMINISTRATION

Ho Chi Minh City – Year 2018

UNIVERSITY OF ECONOMICS HO CHI MINH CITY

International School of Business -

CONTENT

EXECUTIVE SUMMARY 3

PART 1 - BACKGROUND INFORMATION 5

1 Company background 5

1.1 BIDV X Branch 5

1.2 Organizational structure of Admission Center 5

1.3 The target of BIDV X branch 2018-2020 5

2 Symptoms 6

2.1 The business result in quarter II/ 2018 6

2.2 The low productivity 8

2.2.1 The low level of credits 9

2.2.2 The low level of deposits 10

3 Initial cause – effect map 12

4 The Updated cause effect map 17

4.1 Poor marketing policies 17

4.2 Low job satisfaction 17

4.3 Outdated Technology 18

5 A discussion to eliminate some potential central problems and focus on a central problem of interest 21

5.1 A discussion to eliminate some potential problems 21

5.1.1 Poor advertising policies 21

5.1.2 Outdated technology 21

5.2 A discussion to focus on a central problem 21

PART 2 - PROBLEM JUSTIFICATION 23

1 Problem definition 23

2 Problem existence 24

3 Problem importance 25

PART 3: CAUSE VALIDATION AND SOLUSION 27

1 List of real causes 27

1.1 Lack of training program 27

1.2 Inequities in organizations 28

1.3 Lack of evaluation and rewards 29

2 The set of solutions 32

2.1 Solution: “Achieve Results” (about 1 week) 33

2.2 Solution: “Excel at performance” and “Path progress” 34

2.3 Solution: “Recognition”, “Foster Community”, and “Master moments” 35

2.4 Solution: “Leverage Strengths”, “Make Meaning”, “Leverage Energies” and “Experience Well-Being” 36

2.5 Cost-benefit analysis of the satisfaction of employees 38

3 Change plan design 39

3.1 Evaluation & Reward 39

3.2 Action Plan for training program 41

APPENDIX 1: INTERVIEW TRANSCRIPT 46

APPENDIX 1.1: INTERVIEW WITH MR QUANG 46

APPENDIX 1.2: INTERVIEW WITH MRS MAI 48

APPENDIX 1.3: INTERVIEW WITH MR.DOAN 50

APPENDIX 1.4: INTERVIEW WITH MR.MINH 52

APPENDIX 1.5: INTERVIEW WITH MS NHU 54

APPENDIX 1.6: INTERVIEW WITH MRS THAO 56

APPENDIX 1.7: INTERVIEW WITH MS.NGOC 58

APPENDIX 1.8: INTERVIEW 2 nd WITH MR QUANG 60

APPENDIX 2: SURVEY ABOUT JOB SATISFACTION IN BIDV X BRANCH 62

APPENDIX 3 63

REFERENCES 64

CONTENT OF TABLE

Table 1: The target of BIDV X branch 2018-2020 6

Table 2: The business result in quarter II/ 2018 6

Table 3: The number of customers in quarter II/2018 11

Table 4: Cost-benefit analysis of the satisfaction of employees 38

Table 5: The timeline of meeting 41

Table 6: The KPIs and Rewards 41

Table 7: The timeline of the current employees’ training program 42

Table 8: The timeline of the new employees’ training program 44

CONTENT OF FIGURE Figure 1: X Branch structure from internal management department 5

Figure 2: The after Tax Profit and Profit after Tax per Employee from January to August in 2018 9

Figure 3: The level of Credits from January to August in 2018 10

Figure 4: The level of Credits from January to August in 2018 11

Figure 5: The Initial-Effect Map 16

Figure 6: The Updated Cause-Effect Map 20

Figure 7: The variable of job satisfaction 24

Figure 8: Final Cause-Effect Map 31

Figure 9: Engaged Model by David Zinger 32

EXECUTIVE SUMMARY

This study analyzes the case of BIDV X Branch with the symptoms is the low level of deposits and credits leads the low productivity In part 1, based on the information from interviews with relevant individuals and data from the company combine with literature review, the problem of low job satisfaction has been analyzed and chosen as central problems, which need to be solved in this paper The next part, the central problem is the low job satisfaction will be analyzed clearly by the existence and the important for the company Continuing, in part 3, a set of solutions to solve the problem has been applied as well Following this part is a list of causes of central problems; they are lack of training, inequities in organizations, lack of evaluation and rewards In this chapter, a set of solutions to solve the problem has been proposed as well basing on Zinger model Continuing, the action plan was built in organization for training and KPIs Finally, in the final chapter, interview guides, transcripts or reports will be composed to support this paper

PART 1 - BACKGROUND INFORMATION

1 Company background

1.1 BIDV X Branch

After BIDV officially merged with Mekong Housing Bank (MHB), on 01/09/2016, BIDV X Branch was established under the decision to set up 09 new branches in HCM city according to Resolution 3774/NQ-BIDV of the Board of Directors to expanding network

- Full name: Joint Stock Commercial Bank for Investment and Development of Vietnam – X Branch

- Abbreviated name: BIDV X Branch

- Establishment: 01st September 2016

- Address: 15 Hoang Hoa Tham, Ward 6, Binh Thanh Dictrict, Ho Chi Minh City

- Main products and services: Deposits, loans, trade finance, payment and account services, card services and among others

1.2 Organizational structure of Admission Center

On 30/06/2018, X Branch has 51 employees who work in 7 departments including: 1 customers service department, 1 internal department (HR, finance and accounting, administration), 2 sales departments (individual customers department, corporate customers department), 1 credit management department, 1 risk management department and 1 transaction department in District 1: Y Transaction

Figure 1: X Branch structure from internal management department

1.3 The target of BIDV X branch 2018-2020

Retail customer

Risk management

Credit management Customer service

Y Transaction

Table 1: The target of BIDV X branch 2018-2020

2018 – 2020

of BIDV X Branch

% Average Target

2018 – 2020

of BIDV

Profit before tax

3.50

Credits from retail customers 620 1,180 1,300 1,450 46% 26%

Revenue from services

Bad debt ratio 0.2% <=0.5% <=0.5% <=0.5% <=0.5% <=2%

The average number of

Profit after tax per employees 0.06 0.453 0.725 0.954 40% 30%

Because X branch is the new branch which has worked for two years, it builds that the first priority target in 2018-2020 stage is expanding the business scale including credit, deposits and services Then, the next goal is increasing effective operation by going up the profit per employee year by year Finally, in 2020, this branch can become second-class branch in BIDV system with the scale 7,500 billion, adding 2 transaction departments in District 2 and Vinhome Central Park Apartment to expand the operating area, profit after tax per employees will reach one billion dong

2 Symptoms

2.1 The business result in quarter II/ 2018

Table 2: The business result in quarter II/ 2018

Unit: %, Billion Dong

2017

Quarter II/2018

Target QII/2018

% Target QII/2018

Target

2018

% Target

2018

Revenue from deposits 14.75 10.54

Nim of deposits 1.36%

Average deposits 1550

Credits 1,282 1,345 1,850 73% 2,350 57% Revenue from credits 10.15 9.842

Nim of credits 1.48%

Average credits 1330

Revenue from services 4.9 3.8 4 95% 6 63% Cost of goods sold 20.5 10

Revenue difference 9.3 14.18 48 54% Risk provisions 5.8 4.10 18

Profit before tax 3.5 10.08 12 84% 30 73% Profit after tax 2.8 8.07 24.00

The average number of employees 43.5 51 53 96% Profit after tax per employees 0.06 0.316 0.453 76% Note: The competing of deposits is calculated according to the percentage of completing growth plan others items are calculated according to the percentage of completing plan

According to the provisions of BIDV Bank, the productivity is assessed through indicators profit after tax per employee It is based on the following key elements:

- Revenue from deposits (Including: Scale in deposits, NIM (Net Interest Margin) from deposits)

- Revenue from credits (Including: Scale in credits, NIM (Net Interest Margin) from credit)

- Revenue from services

- Number of customers (VVIP customers, VIP customers, general customers) Furthermore, the productivity is the key ratio to evaluate the business result of branch and salary ratio of employees

Based on the business results in the first haft of 2018, the business situation is not good Most key indicators are not achieved (scale, profit…) After establish 2 years, the X branch will not be supported with income (rental asset costs, staff salary ) by headquarter With this business result, business results in 2018 in particular and long-term development strategy of the branch will be very bad Moreover, the salary of staff will be decreased Therefore, this branch need to find out the important causes and solved it

2.2 The low productivity

Following the business result in quarter II/ 2018, the profit in QII/2018 got 76% the target, the profit per employee keep to reached a low level (0.344 billion Dong/employee) than all branches in BIDV system (the average of BIDV system is 0.9 billion Dong per employee)

Figure 2: The after Tax Profit and Profit after Tax per Employee from January to August in 2018

In general, profit and profit before tax from January to August 2018 increased slightly and achieved below the target BIDV assigned The Board of Directors is concerned about this, so the branch has to find out the causes of solving this problem and strive to achieve the target

2.2.1 The low level of credits

Basing on the business result in quarter II/ 2018, the main reason of the low productivity is the low scale; especially credits item cannot the goal, just got 89% target quarter II/2018 As comparing the results in 2017, the growth rate reaches a low percentage and so far away to get the target 2018

0 0.1 0.2 0.3 0.4 0.5

Month 1 Month 2 Month 3 Month 4 Month 5 Month 6 Month 7 Month 8

The after Tax Profit and Profit after Tax per Employee from January to August in 2018

Profit Target profits Profit/employees Target Profit/employees

Figure 3: The level of Credits from January to August in 2018

The level of credit from January to August 2018 increased slightly and achieved below the target that BIDV assigned The growth rate got 28 %, so far from the target

in 2018-2020 is 40%

2.2.2 The low level of deposits

In general, the level of capital mobilization is low and unstable The level of deposits reached the target at the end of first haft month, but reduced immediately in the following months The reason is that the branch mobilizes non-term deposits to cope with the assigned business plan Basing on the graph, from January to August of

2018, the average growth rate was only 10%, so far from BIDV's three-year

Month 1 Month 2 Month 3 Month 4 Month 5 Month 6 Month 7 Month 8

The level of Credits from January to August in

2018

Credits Target credits

Figure 4: The level of Credits from January to August in 2018

Furthermore, the number of new customers signing new contract in quarter II/2018 is lower than previous year Furthermore, a number of VVIP customers have terminated the contract with BIDV X Branch Except some objective reasons such as deposit customers have plan to using money, the credit customers due date, the quality and the customer policy is not good than competitors

Table 3: The number of customers in quarter II/2018

Year 2017 Planned 2018 Planned

QII/2018 QII/2018 +/- 2017

% Target QII/2018

Month 1 Month 2 Month 3 Month 4 Month 5 Month 6 Month 7 Month 8

The level of Deposits from January to August in

2018

Deposits Target deposits

3 Initial cause – effect map

Both explore this problem further and find out the cause of problem, the depth interview has been conducted with 7 people who are from 3 groups mentioned below including:

- The first group of 3 people such as those who are the supervisors at X branch:

Mr Quang – Branch director, Mrs Mai – Internal management department manager,

Mr Doan – Retail Customer department manager It is showed that the view of who are the leader of organization before symptoms

- The second group of 2 people who are staffs at BIDV X branch: Mr Minh – Staff in corporation customer department, Ms Nhu – Staff in customer service department It is indicated that the sight of the current staffs from others departments (one from sales department, one from back office) of X branch about the cause of symptoms

- The third group of 2 participants who used to work at X branch and then left for another organization including Mrs Thao – Ex-employee in Y transaction, Ms Ngoc – Ex-employee in Individual customer department They used to engage with company and left for different reasons, they understood what was going on inside the company

Mr Quang (Branch Director) said that to achieve this target in next 3 years (2018-2020), they need to expand significantly the scale of customers, including deposits, credits and specially service (card, account, internet banking) However, the first half year 2018, the business result is not good; the low growth rate of the level of credits and deposits He said that there are some probable reasons for the low scale: human resources such as the sales effort, the skill and knowledge's sale team and the service quality

About the poor knowledge and skills of staffs, Mr Quang showed that the number of VVIP customers has terminated the services contract with BIDV Bank - X Branch because the abilities and skills of sale teams were still not good enough to taking care VVIP customers and negotiate potential clients Overall, the finding new customers signing new contract per quarter lower than previous year As you know that, the market is very competitive and if our interest rate and quality of services is not good enough to satisfy the VVIP customers, they will leave us immediately

Moreover, conducting interview of two people in leader groups, they have a common opinion that the company did not have the good plan and policies to training employees Mr Doan – Retail Customer department manager said: "For me the one of important reasons is the human resources Because newly established branch, in first one year, the leadership team just focused on finding the customers by our relationship

to expanding scale, while almost staffs are fresh graduates and inexperienced but not have training well So, the salesman is lack of sales effort because of poor abilities and skills" Ms Mai who the manager of internal management department said that human resources work is not good The reason was that they have no clear plan for their training program for new staffs They usually start working immediately after recruiting and are training by doing from old employees Therefore, newcomers could not learn basic knowledge and skills before doing, maybe they do not work well Specially, Mr Minh, who currently works in sales department, thought the primary reason is that their persuasive skill was not good Staffs were both lack of skill to sales and have to keep the current VVIP customers; some newcomers were lack adequate knowledge and skills to provide satisfactory customer service Furthermore, two ex-employees (Ms Ngoc and Ms Thao) answered that one of the main reasons to quit job

is that no more opportunities to training and improve their skills as well as knowledge

When interview about the reason of the bad business result, besides that lack of training, Mr Doan said that the low growth scale about credit and deposits because of the growth new customers increase slowly Therefore, basing on the group of current VVIP customers, if we lose one of them, the scale is decrease significantly The primary reason is lack of employees' sales effort To explain more clearly the problem, firstly he said that the company is not interested in the marketing policy By the view

of ex-employee, Ms Thao indicated that their marketing campaigns are small and not focused on potential customers So, they had not more opportunity to approach customers Secondly, he found that employees in the sales department did not receive

a good coordination from the colleagues from the back office This can lead to decrease productivity, complicate processes and delay the completion of tasks The credit customers complained that the disbursement process of X branch were complicated and slow Furthermore, Mr Minh from sales department felt that he did

not take the initiative in the work because of spend more the effort and time to solve work when document move on others department

Besides that, there are many reason of the lack of sales effort Mr Minh said:

"My co-worker in other departments have less jobs and less pressure than me, however the salary is the same" His opinion showed that he did not receive more motivation for her efforts for work Both Mrs Thao (Ex-employer in Y transaction) and Ms Ngoc (Ex-employer in Individual customer department) said that they usually do work overtime, work-life unbalance but their income is low than her contribution for this bank Although they always work under high pressure but the evaluation and reward of their firm is not both clear and equal Specially, Ms Ngoc shared that the unfair division work was not only employees between sales departments and others department but also between staff in this sales departments It seems to be the good employees work effective who that the manager dividing more jobs In contrary, the staffs that are lazy and lack of responsible for work were divided a lower workload In

a short time, the manager would make sure to cover all works finished this deadline However, she said that the reward and salary of all salesperson was not remarkably different than the contribution for their work Both lack of motivation and unfair division work lead to the low morale of their good employees like her Furthermore, the ex-staff, Mrs Thao, who have more five year working in BIDV bank, felt that she

is lack of motivation because of the path career development of this bank is very slowly In BIDV bank, after at least two years, this bank has the review salary and position for you, but the increase just 5% salary, the promotion is very hard

More importantly, Ms Ngoc said: "When I received that I need to be changed,

it was showed that quit my job in X branch and find better position Now, I work as a senior in Shinhan bank with better salary and I am happy in working there"

In the other hand, Ms Nhu who are the teller in customer service said that they always try to finish work as soon as possible for bring the good customer service quality, but the main reason for delay is the outdated technology Therefore, they spent

a lot of time to make sure check all right document before disbursement,

remittance As you know, working in the bank is quite the risk job which always requires you to be careful, because it involves much money

According to the seven depth-interviews, the potential cause of bad business result come from the poor knowledge and skills' sales team, lack of sales effort, the low service quality and the low morale of employees The employees do not feel happy at working this branch because of not to treat fairly Collecting all the information, the whole problem mess can be showed and generated in the following initial cause – effect map:

Unfair Division of Work

Figure 5: The Initial-Effect Map

Low Productivity

The low level of deposits and credits

Organizational symptoms

Poor Knowledge and Skills

Potential central problems

Lack of Sales Effort

Low Service Quality

Low Morale Lack of Coordination

4 The Updated cause effect map

4.1 Poor marketing policies

Ms Mai who is who managed the finance of X branch said that X branch cannot build the good marketing policies because limited budget

4.2 Low job satisfaction

To explain more problems including lack of training, lack of motivation, lack of coordination of X branch, I conducted interview with group 2 and group 3 who are employees and ex-employees about the reason of them Almost people said that they are not happy working here They do not want try their best to work hard and get the target because of they do not receive well-earned reward Therefore, they feel dissatisfaction for working in X branch Furthermore, Ms Ngoc said that the training policy is not clear and professional, lack of coordination are the big reason to the low job satisfaction of her Therefore, she quitted job because of looking for work make her happy

In theory, there are many studies research about the low job satisfaction in organization According to Hartman et al (1999) (1) the perception of organizational justice is central to understanding a wide range of human attitudes and behaviors in organizations The underlying premise is that the justice perceptions of employees affect their job attitudes and organizational outcome Abbott (2003) (2) found that there was very strong positive impact from employee morale, job satisfaction, employee satisfaction to profits of organizations If employees satisfy with their job, they will treat customers with the utmost respect and provide better services Hence, job satisfaction leads to good employee performance In general, employees’ job satisfaction is very importance and should be concerned as communication organizations that rely upon a loyal clientele (Kim, Leong, Yong (2005) (3)

Basing on the literature review, Walker, Churchill and Ford (1977) (4) said that satisfaction levels among salespersons can further influence their work motivation A focus on inequity reducing strategies should be considered even more important from a managerial perspective The concept of inequity is often interpreted as a no proportionate association between an individual’s effort or performance on the job and

the rewards he or she receives (Goodman, 1977; Vecchio, 1984 cited in Tyagi, 1990, p.135) (5) Salespersons who feel that they contribute more than others to the organization do expect to receive proportionately greater amounts of the organizational rewards For a salesperson, outcomes in the job situation include such things as pay, fringe benefits, status, and feelings of accomplishment Tyagi, P K (1990) (5) found that confirm most of the expected relationships between inequities perceived by salespersons and their work motivation and satisfaction Results indicate that inequities tend to produce a more adverse effect to salesperson motivation Monetary reward inequity was shown to be the most potent source of an adverse influence on extrinsic motivation At the same time, task assignment inequity was also substantial instrumental in affecting extrinsic motivation of salespersons One major aspect of the relationship between

Inequities and salesperson motivation involves how perceived inequity might influence the attractiveness or valence of rewards resulting from performance When salespersons receive rewards that are perceived to be inequitable, it is likely that they would attach low importance to these rewards in order to reduce the tension caused by inequity feelings

Employees who have good knowledge can provide better services It is necessary to conduct training in the necessary technical skills and knowledge and in- process or interactive skills for employees to build their knowledge (Peters Silvia Chigozirim, Elham Mazdarani, 2008 cited in Hummayoun Naeem and Muhammad Iqbal Saif, 2010)(6) According to Hartline & Ferrell, 1996 (7), the employees who have training programs as well as coaching will feel competing and it can help to increase job satisfaction Furthermore, training also appears to be related to an employee’s satisfaction with her supervisor (Taormina, 1999) (8)

4.3 Outdated Technology

According to Zeithaml, V A., Berry, L L., & Parasuraman, A (1988) (9) showed that technology and job need to appropriate together The implements or technology including bank computers and diagnostic equipment the employee uses can improve service quality About the reason of outdated technology, Mr Quang said that

compared with other banks, BIDV is using outdated customer information management software However, this is a problem for the BIDV whole system Currently, a number of major branches are researched and hired to write support software However, X branch is a new branch; they are not enough budget and

Figure 6: The Updated Cause-Effect Map

Low Job Satisfaction

Potential central problem

The Low Level of Deposits and Credits

Outdated Technology

5 A discussion to eliminate some potential central problems and focus on a central problem of interest

5.1 A discussion to eliminate some potential problems

5.1.1 Poor advertising policies

Investigating the potential problem “poor advertising policies”, Mr Quang said that the branch’ marketing policies basing on the BIDV’s policies Typically, branch's marketing campaigns are based on the campaign's headquarters issued nationwide In case

of necessity, the branch may develop additional marketing strategies for the branch to promote sales In the near future, this company’s marketing campaign cannot change in one year because of the limited budget of new branch… Furthermore, he thought that the key problem is the human factor As you know, the good marketing policies can get more customers However, the low employees' productivity can be discredited the bank, affecting the long-term development of the bank Therefore, the poor advertising budget problem will be eliminated from the analysis

5.2 A discussion to focus on a central problem

After considering all the potential problems, “low job satisfaction” problem will be chosen to solve The primary reasons for this choice are as follows:

- Because X branch is the new branch, which works for more one year, it needs to build a good foundation of human resources for the long-term development of X Branch,

it was crucial to achieve business target 2018-2020

- The employee satisfaction can bring high morale, sales effort and high service quality The change in personnel strategy can increase customer satisfactionsolving this problem will limit customers leaving the company and increasing their ability to engage old customers, reach new customers the productivity of each employee equal the average

of BIDV system, so that in 2018, the branch will achieve BIDV business targets Base on that, the expected scale will growth remarkably with 40% per year and an employee of BIDV can generate 0.9 billion profit

- The human resource is the key of the success of organization Based on information from the interview with the director of branch, in order to create a solid foundation for human resources in the long-term development of the organization, the board of directors really considered this an important problem, which needs to solve first They want to solve this problem and have assigned the internal management departments

is the clue, which resolve it

- According to the director, the financial cost for solving this problem is can be in control, so it will be feasible to implement Moreover, because the company's management wants to spend costs usefully, the selection of a good costs option will be appreciated

PART 2 - PROBLEM JUSTIFICATION

1 Problem definition

The name of central problem: Low job satisfaction

George and Jone cited in Ghazzawi, I (2008) (10) defined that job satisfaction is the collection of feeling and beliefs that people have about their current job People’s levels of degrees of job satisfaction can range from extreme satisfaction to extreme dissatisfaction by various aspects of their jobs such as the kind of work they do, their coworkers, supervisors and their pay

As similar view, job satisfaction well-defined that an individual’s positive or negative attitude toward their work (Greenberg & Baron, 2008) (11) According to Kreitner and Kinicki (2007) cited in Ghazzawi, I (2008) (10), job satisfaction is essentially the extent to which someone likes his or her job

Researchers at the University of Minnesota concluded that satisfaction stems from

20 different dimensions including: recognition, compensation, supervision, job security, and advancement on the job, to name a few (Weiss et al., 1967) Said researchers developed what is known as the Minnesota Satisfaction Questionnaire or MSQ (Weiss et al., 1967) Additionally, to assess one’s satisfaction with the following job related dimensions: work, pay, promotions, coworkers, and supervision, researchers at Cornell University developed the Job Descriptive Index “JDI” (Smith et al., 1969)

The Price-Mueller (2008) cited in Agho, A O., Mueller, C W., & Price, J L (1993) (12) as below:

Figure 7: The variable of job satisfaction Scale of Job Satisfaction

The level of job satisfaction was measured by a scale The scale followed a point Likert format ranging from “Disagree Strongly” to “Agree Strongly” and

five-“Extremely Dissatisfied” to five-“Extremely Satisfied” This scale has been administered in various job situations and has been shown to produce sufficient internal consistency reliability

2 Problem existence

To determine the reasons lead to the low employee satisfaction, we progress the survey for 30 sales staffs The results showed that most of employees in Sales Department feel unhappy when being asked about connection between pay and performance This branch does not have the evaluation tool and clear reward for sales staffs and others who

work in others different department Although you work hard with high performance or low performance, the difference of salary and bonus is insignificant This make the employees has low morale to contribute more for company Furthermore, Productivity is valued and rewarded so that employees do not feel that unfair division of work It is one

of the cause lead the low satisfaction of employees

Almost employees feel the training program is not clearly and specific After being recruited, the new comers are not taking part in training focused on professional knowledge and skills required for the job Instead, they started to have two months’ probation and being training by the experience staffs However, the current staffs do not much time to training well for them because they still have to work for the current jobs Furthermore, if the experience staffs can be not good knowledge or one of skills, so the new staff will train not well Hence, almost new employees cannot improve their knowledge and skills more than graduated time

Additionally, they cannot see the clear path development in their career After working time in BIDV X Branch, they do not see the development and long-term orientation for the current job In addition, if the business situation is bad, their next year's salary may decrease After two years, the branch must strive to operate independently without the support of the head office, that will most likely affect the current employee leave and the branch development will encounter very many difficulties Mr Quang said that the company wants to maintain the motivation for employees in particular and the development for the organization in general, the human resources is the key element and the employee job satisfaction is needed to increase

3 Problem importance

In literature review, the low job satisfaction leads to the bad consequences for organization While the outcomes of job satisfaction are an increase in the commitment to one’s organization; job dissatisfaction will lead to problems including absenteeism, tardiness, turnover, and strikes Tett & Meyer, 2006 (13) showed that job satisfaction and organizational commitment independently contributed to turnover intention and

withdrawal cognitions and that turnover intention and cognitions were highly correlated

to job satisfaction Udechukwu (2007) (14) concluded that both intrinsic and extrinsic satisfaction play an important role in the intention of employees’ turnover as it relates to the case of correctional officers Similarly, other studies concluded that while extrinsic factors of job satisfaction continue to have important effect on employees’ turnover, intrinsic satisfaction has more effects than extrinsic ones and play even a greater role in the employees’ turnover behavior

The low job satisfaction is really an important problem to the company as described in Symptoms part The growth rate of scale reaches a low percentage and so far away, to get the target 2018 the profit per employee keep to reached a low level Furthermore, number of new customers signing new contract in quarter II/2018 lower than previous year Furthermore, a number of VVIP customers have terminated the contract with BIDV X Branch The turnover rate is too high and the company needs to take more time and money for the recruitment new employees Firstly, the low job satisfaction leads poor overall morale When one employee is miserable doing their job, all of the other employees will be affected by their attitude Negative attitudes can spread through a workplace and, if they are not improved, the overall morale of the employees will take a sharp decline Moreover, low job satisfaction coupled with low employee morale equals a lack of productivity in the workplace Again, we have basic human nature

at work When someone is unhappy, they do not focus well and they do not pay attention

to their tasks They find hundreds of other things to do that do make them happy, all the while ignoring the job they should be doing When one member of a team displays low productivity, it is only natural for other members of the team to feel dissatisfied as a result, and their productivity will begin to decline as well Thirdly, with a low satisfaction and low staff morale, employees do not effort to improve skills and knowledge for their job Finally, low job satisfaction also creates high turnover rates with employees Eventually, the employee is going to quit so that they can find a job they actually enjoy

doing This is leaded the bad business result and the long-term development of the X branch

PART 3: CAUSE VALIDATION AND SOLUSION

1 List of real causes

Churchill, G A., Ford, N M., & Walker, O C (1976) found substantial dissatisfaction among salesperson with company policies and field support (e.g., sales promotion, sales training programs, etc.), pay, promotion and advancement, and their supervisors Management may be able to improve sales force morale directly by modifying company policies and procedures governing salesperson compensation, promotions, sales training, and so forth

Schmidt, S W (2007) indicated Blum & Kaplan (2000) (15) found that the opportunity to study new skills was the most essential aspect in job satisfaction Landy (1985) cited Schmidt, S W (2007) (15) defined that job training as “a set of planned activities on the part of an organization to increase the job knowledge and skills or to modify the attitudes and social behavior of its members in ways consistent with the goals

of the organization and the requirements of the job” Patrick (2000) cited in Schmidt, S

W (2007) (15) showed that training is systematic development of the knowledge, skills, and expertise required by a person to effectively perform a given task or job

As training becomes more a part of an employee’s life, the relationship of training

to job satisfaction becomes more prominent As the workplace continues to evolve, employee satisfaction with on-the-job education permeates all aspects of overall job satisfaction Time spent in training, training methodology, and content were significantly related to job training satisfaction This finding is important to consider when designing training programs and to bring the high quality for trainees

Through the all interviews, all interviewers mentioned about the problem of lacking of training, employees do not receive any training program when just started the

job in BIDV X Branch Ms Mai, the manager of internal management department said that BIDV X Branch have no clear plan for their training program for new staffs They usually start working immediately after recruiting and are training by doing from old employees Therefore, newcomers could not learn basic knowledge and skills before doing, maybe they do not work well Specially, Mr Minh, who currently works in sales department, thought the primary reason is that their persuasive skill was not good Staffs were both lack of skill to sales and have to keep the current VVIP customers; some newcomers were lack adequate knowledge and skills to provide satisfactory customer service Furthermore, two ex-employees (Ms Ngoc and Ms Thao) answered that one of the main reasons to quit job is that no more opportunities to training and improve their skills as well as knowledge With above analysis, lack of leadership is the first cause of the list of central problems

Tyagi, P K (1990) (5) found that If inequities are perceived as part of organizational conditions, it is likely that they would influence both intrinsic and extrinsic motivation of salespersons

Furthermore, there are many types of inequity, such as:

- Monetary reward inequity: The extent to which a salesperson perceives that his monetary rewards in relation to his performance (effort) are inequitable as compared to others’ monetary reward/ performance ratios in similar job situations

- Task assignment inequity: The degree to which a salesperson believes that his task assignment in relation to his work input is unfair as compared to other salespersons’ task assignment/ work input ratios in similar job situations

- Supervisory behavior inequity: The extent to which a salesperson feels that his supervisor’s behavior is unfairly responsive in relation to his performance input as compared to others’ supervisory behavior/performance ratios in similar job situations

- Recognition inequity: The degree to which a salesperson believes that he has been given an inequitable recognition by the organization in relation to his work input as compared to others’ recognition/ work input ratios in similar job situations

In BIDV X branch, ex-employees said that they usually do work overtime, life unbalance but their income is low than her contribution for this bank Although they always work under high pressure but the evaluation and reward of their firm is not both clear and equal Specially, Ms Ngoc shared that the unfair division work was not only employees between sales departments and others department but also between staff in this sales departments It seems to be the good employees work effective who that the manager dividing more jobs In contrary, the staffs that are lazy and lack of responsible for work were divided a lower workload In a short time, the manager would make sure to cover all works finished this deadline However, she said that the reward and salary of all salesperson was not remarkably different than the contribution for their work Both lack

work-of motivation and unfair division work lead to the low morale work-of their good employees like her Furthermore, the ex-staff, Mrs Thao, who have more five year working in BIDV bank, felt that she is lack of motivation because of the path career development of this bank is very slowly In BIDV bank, after at least two years, this bank has the review salary and position for you, but the increase just 5% salary, the promotion is very hard

Lawler, e E., & Porter, l W (1967) (16) found that being rewarded for good performance is likely to encourage further good performance Thus, measures of higher order need satisfaction may provide good evidence of how effective organizations have been in creating interesting and rewarding jobs and, therefore, indirect evidence of how motivating the jobs themselves are Too often attitude surveys have focused only on satisfaction with extrinsic rewards, such as pay and promotion

In almost interviews, they mentioned about the lack of evaluation and rewards, employees do not receive the salary and bonus equaling your contribution Mr Minh said that broad of director need to give the motivation policy (to evaluation clearly, bonus and

reward policy) to create the fair environment Mr Quang mentioned that the reason is BIDV X branch not have the effective measurement to evaluate employees' contribution right

Figure 8: Final Cause-Effect Map

Low job satisfaction

Potential Central Problem

Low Scale

Organizational Symptoms

Lack of Sales Effort

Low Service Quality

Low Morale Poor Knowledge and Skills