LV Thạc sỹ_Improve the development of Segafredo coffeeshop in vietnam

The marketing research is a key step for the firm to findout which is the potential market, what is the needs of costumers, how to launch thenew market etc.. CHAPTER I: INTRODUCTION OF S

I would like to express my sincere gratitude to my supervisor, Mrs , the lecturer

of the Foreign Language Faculty, National Economics University Her deepknowledge and her enthusiasm have really been useful helpness for me During myintership period, her guidance and her encouragement have provided gooddirections to help me complete my report

In addition, I would like to show my great regard for the director of Segafredo forcooperating with me during the last time They provided me with a bestenvironment and useful advices to complete this report Moreover, I would like tothank all staff in Segafredo because they always kept good relationship with me andbehaved kindly towards me like a colleague of them

Finally, I would like to mention my best sincere thanks to my friends who alwaysunderstood and supported me whenever I had a difficulty These paticular helpsactually bring me much energy to do this project

TABLE OF CONTENTS

ACKNOWLEDGEMENT i

TABLE OF CONTENTS ii

EXECUTIVE SUMMARY iv

LIST OF CHARTS, FIGURES, TABLES v

INTRODUCTION 1

CHAPTER I: INTRODUCTION OF SEGAFREDO GROUP 3

1.1 Information of Segafredo Group 3

1.1.1 Segafredo Zanetti 3

1.1.2 Segafredo Zanetti in Hanoi 6

1.2 The shortcoming of Segafredo Group in Vietnam 6

CHAPTER II: THEORETICAL FRAMEWORK 8

2.1 Researching market 8

2.1.1 The definition of research market 8

2.1.2.The marketing research brief 9

2.1.3 The potential market 9

2.1.4 The research market proposal 10

2.1 Product theory 11

2.1.1 The definition of a product 11

2.1.2 Three levels of a product 12

2.1.3.Product Attributes 13

2.2 Employee element in a business and the connection between employee and manager 15

2.3.1 The definition of employee 15

2.3.2 The role of employee in a business 15

2.3.3 The factors affecting employees 16

2.3.4 The connection between employee and manager 19

CHAPTER III: ANALYSIS AND FINDINGS 21

3.1 Overview of product and staff training in Segafredo Group 21

3.1.1 The requirements of products of Segafredo Group 21

3.1.2 The requirements of staff training in Segafredo Group 22

3.2.The situation of Segafredo in Vietnam 23

3.2.1 Problem 1: Changes of product quality and product appearance 24

3.2.2 Problem 2: Staff management and training 29

CHAPTER IV: RECOMMENDATIONS 33

4.1 Modifying problems existing in Segafredo 33

4.1.1 Applying a good marketing research for Vietnamese market 33

4.1.2 Training for staff 33

4.2 Building a marketing and PR stratergy 34

4.2.1 Step 1: Become a culture representative to appoach customer 34

4.2.2 Step 2: Build the promotion and customer service system by using network tool 34

4.2.3 Step 3: Unite other brandnames to create an efective business model 35

CONCLUSION 36

APPENDICES vi

APPENDIX 1: Interview Questions vi

APPENDIX 2: The original Menu Of Segafredo vii

REFERENCES xi

EXECUTIVE SUMMARY

When a big company wants to expand the scale of business, besides the importantrequirement that it has a steady foundation, it must build up a good and detailedplan for developing market The marketing research is a key step for the firm to findout which is the potential market, what is the needs of costumers, how to launch thenew market etc Segafredo group is a huge firm on over the world because of thecoffee selling system So its managers always pay a lot of attention to researchpotential markets However, it seems to have some troubles when coming a newmarket like Vietnam where residents enjoy coffee by their particular way Inaddition, Segafredo group reveals the weakness of staff management and trainingwhen being in Vietnam The shortcoming and the weakness of Segafredo will berecommended in this project So that this report will find out the reasons andexplain each of factor basing on the theoritical framework Finally, therecommendations also are given after analysing the real situation of Segafredogroup in Vietnam

The report is not sufficient because of my lack of knowledge and experience, I hope

to receive more responses from the readers to complete my report

LIST OF CHARTS, FIGURES, TABLES Chart

Chart 1 The components of market potential 10

Chart 2 The research design 10

Chart 3 Three levels of a product 12

Chart 4 Maslow's Hierarchy of Needs 17

Figure Figure 1 Logo of Segafredo Zanetti 3

Figure 2 Product features of the Nguoi Viet telecom company in the “ Vietnamese uses Vietnamese goods” strategy 14

Table Table 1 The revenue of Segafredo 2009 and 2010 23

Table 2 The revenue of Segafredo in 4 first months of 2011 24

Table 3 Comments of product quality in Segafredo coffeeshop at Xuan Dieu street 25

Table 4 Comments of product quality in Segafredo coffeeshop at Hang Gai street 26

Table 5 Comments of consumer about product appearance with the original menu in Segafredo 27

Marketing research becomes important for each business which wants to expand itsbusiness scale and appoarch into new market nowadays However, besideresearching market, the firm should not forget to improve the management andtraining for its own staff It is the best way to gain success

Background

After my 3-month intership as an assistant of manager in Segafredo restaurantbelonged to the Limited Food One Member H&A company, it is found thatalthough Segafredo does business following to the way of the Italian originalSegafredo which is very successful all over the world But it reveals theweaknessees of researching marketing, developing product and staff Based on my

result research, I choose the topic for study: “Improve the development of Segafredo coffeeshop in Vietnam”.

Rationales

My study targets as the following objectives:

 Point out the shortcoming of Segafredo coffeeshop in present

 Analyse the factors causing and affecting the business result

 Recommend some methods to improve the development

Research questions

The report will focus on answering these questions as follows:

 How is the situation of Segafredo coffeeshop?

 What are the reasons causing the bad results of Segafredo in present?

 Which solutions should managers choose to improve the development ofSegafredo?

Methodology

Methods in this research is to collect data from the company Also, some surveyswill be applied with interview method Besides, all necessary data after collectingwill be analysed to show the problems clearly In addition, the other method using

in this research is observation

Sources and method of data collection

In the range of my research, the report uses the data collected from the data centre

of Segafredo and bases on the result of two interviews carried out with consumersand staffs in two coffeeshops including Segafredo in Vietnam: Segafredo at 39Xuan Dieu and Segafredo at 7 Hang Gai

In the additon to the Introduction, Appendix, Reference and Conclusion, the reportincludes four main chapters:

Chapter I: Introduction of Segafredo Group: including introduction of SegafredoGroup and the shortcomings in present

Chapter II: Theoretical Framework: including theoretical framework aboutmarketing research and staff management and training

Chapter III: Analysis and Findings: including analysis and findings about theproblems of Segafredo

Chapter IV: Recommendations: including recommendations for improving thedevelopment of Segafredo

CHAPTER I: INTRODUCTION OF SEGAFREDO GROUP

When metioning the trademark – Segafredo Zanetti, people who love coffee usuallythink about kinds of coffee drinks as well- known as Espresso, Latte, Cappuchino Nowadays, Vietnamese clients enjoy beverages of Segafredo when tasting a cup offamous espresso in a Italian coffeeshop right in the heart of Hanoi Therefore, inthis chapter, the report provides some basic information about Segafredo Group aswell as its problems to make readers understand the establishment processing andthe current situation of Segafredo Vietnam in present

1.1 Information of Segafredo Group

Segafredo Group is well-known all over the world because of coffee selling system

It has two kinds include Segafredo Zanetti and Segafredo Espresso Massiomo

Zanetti is the person who founded Segafredo Zanetti and developed initially thebusiness within Italy where it soon became a leader in the licensed and publicpremises market Then the company expanded into consumer market and large scaleretail trade before going onto the international markets In the range of researching,the writer just recommends Segafredo Zanetti which now appears in Vietnam

Figure 1 Logo of Segafredo Zanetti

1.1.1 Segafredo Zanetti

Segafredo Zanetti belongs to Masimo Zanetti Beverage Group including a widenetwork of companies that are rapidly and constantly growing worldwide

Establishment and Scale

Segafredo Zanetti Espresso appeares as an Italian coffee shop on April 1, 1988when the first bar opened in Paris on Bovelard des Italien Soon after, it opens inVienna an Amgrabe, uniting these two cities with Venice, in the European tradition

of coffee consumption which is dating back on the 17th century

It is the first private group in the coffee world with 120,000 tonnes manufacturedevery year Massimo Zanetti Beverage Group had a unique business designs sincethanks to the direct control of the whole production on chain it is totally intergrated.Massimo Zanetti Beverage Group includes many different well-known internationalbrands Most of them are leaders of their field in their locations They are evaluated

as a rich variety of high quailty regional products

It is the leader of Espresso producer in Italy and throughout the world with morethan 70,000 clients and 50 million cups of esspresso drunk everyday

Mission

Its mission is to spread the taste, the culture and preparation method of the trueItalian Espresso to the whole world Segafredo offers professional catering clientsand intergrated range of products and services that have been specifically designed

to meet all of the market’s needs

Characteristics

These range from originary activities, with on-call assistance through thecompany’s wide network It could extra services such as consulting clients on theirchoice of equipment and a carefully devised training plan for coffee shop staff All

of this is focused on a single objective: to provide customers with the true espressoculture

Exclusive blends are made especially for bars They are carefully formulated inorder to enhance the own characteristics of the coffee beans which used The coffeebeans are the best quality Arabica and Robusta beans which give the true ItalianEspresso

Besides coffee, Segafredo Zanetti selected for bars carefully regional products fromcocoa to tea, cocktail etc Furthermore, Segafredo Zanetti is aware that not only thecoffee and product quality, but also the bar’s atmosphere and welcome, convince

client to come back and again Therefore it has developed and elegant range of barmaterials, which takes account of bartender’s activity and furnishing of the venue.

Store

Untill now, it has outlets in

 Rabat – capital city of Moroco January 13th , 2011

 Seoul – capital and largest city of South Korea Febuary 25th , 2011

Segafredo Zanetti brand represents the

passion for coffee in the world:

 Mocha: For those who love tradition

and prepare coffe with mocha,

Segafredo Zanetti offers a product

range that has been expressly

designed in order to satisfy all tastes

 Coffee machine: For those who wish

to taste a good coffee at home, Segafredo Zanettioffers a range designed forespresso makers

 Coffee bean: Blends with an unique taste for coffee lovers, who love to grind thecoffee at home in order to enjoy the whole aroma and fragrance

 Coffee grinder: It seems an important step forward in coffee quality The grinderwhich is provided by Segafredo is an available tool to make a good cup ofespresso coffee

In which, espresso is the famous coffee product of Segafredo Espresso is the art of

a symphony played with the many elements of an orchestra According to theSegafredo Zanetti philosophy, true Italian espresso is comparable to Frenchchampagne: the different varieties of grapes for producing champagne come from asingle zone, but are selected and blended to obtain the best possible quality.Segafredo Zanetti is the only company in the world to use the same principle for its

coffee: it selects the best varieties of Arabica and Robusta, all coming from a single,closely controlled zone of origin and blends them in a continuous effort aiming atobtaining the finest possible product.

1.1.2 Segafredo Zanetti in Hanoi

Segafredo Zanetti in Hanoi is on May 28th, 2009, the first opened by a foreignnetwork in capital city of Vietnam - the Far East country Hanoi lies on the rightbank of the Red River and is considered to be the cultural centre of Vietnam Theoutlet is located in Xuan Dieu area, and it is surrounded by 5- star-resort-type hotelsand upper class nice restaurants, it is often crowed with tourist who enjoy the livelyastmosphere of the place also after dinner time The other is on Hang Gai street –old quarter area where has crowded tourist, especially Vietnamese daily life

Segafredo Zanetti in Hanoi totally has the same characteristics like others inforeign cities Its staff have been trained in order to guarantee the highest espressoquality And the quality is the highest requestion to provide for customers

Segafredo Zanetti opened a new café in Danang, just few months after the one inHanoi It will soon begin to distribute the Segafredo Zanetti products in Ho ChiMinh City

1.2 The shortcoming of Segafredo Group in Vietnam

During three years to come into Vietnam market, the total income always was inhigh rate However both the income and the growth of Segafredo seems be slowwhen it started in the fourth year After searching, there are some difficultiesclearly In the detail, the product system is undiversified and only limited intraditional product such as coffee In addition, the management and training for staff

is not maintaining and limited by the hard conditions such as environment, rules etc

By all these difficulites above, its causes: the total income of four first month of thisyear just is 60% compared with the same time last year, the system of drink andfood doesn’t compete with other brandnames which have just appeared in Vietnamand seem be popular such as Illy coffee, Highland coffee etc Seriously, one ofcoffeeshops in Hanoi had to close in November 2009 Moreover, the workingquality of staff decreased and a part of staff stopped working After obversation andanalysises, the researcher find that the lacks of marketing research program about

Vietnamese taste and training for staff in along time are the reasons for theproblems above.

In summary, this chapter provides the readers the overview of history of SegafredoGroup as well as its successes- the whole group gained in past years To parallelwith these information, this chapter also recommends the shortcoming of Segafredo

in Vietnam to make the readers have a wide view of the situation of Segafredo inVietnam

CHAPTER II: THEORETICAL FRAMEWORK

Theoretical framework chapter is considered as the foundation of a report beforeanalysing an issue With the same role like that, the researcher provides basictheories about researching market for a firm which wants to approach into a newmarket, managing employee and training for them parallel with the businessactivities of the firm

2.1 Researching market

In this part, the writer follows to the order: the definition of marketing researchand the explaination of the marketing research brief and how to apply twoprocesses above

2.1.1 The definition of research market

According to the definition:

“ Marketing research is the systemic and objective search for, and analysis of,

information revelant to the identification and solution of any problem in the field

In the other difinition:

“Marketing Research: An applied approach is comprehensive, practical, applied, managerial, and presents a balanced coverage of both qualitative and quantitative material” (Malhotra N.K., Birks D.F.,2007)

From two above opinions, it is defined that researching market is the collectionand analysis of information about consumers, competitors and the effectiveness ofmarketing programs In this meaning, there are two key words : collection andanalysis Collection information is the action of process of collecting data Analysisinformation is the ability to discover and quantify patterns in data It includesnumbers, symbols, tables to help the marketers understand the situation to have asuitable plan Information analysis is responsible for the organisation's commitment

to efficient and effective analysis of textual, numerical or visual information In theaddition, information analysis specifies and applies appropriate analyticaltechniques and reports results to clients and management Besides, it also applies avariety of analytical and presentational techniques, in consultation with experts ifappropriate, and with sensitivity to the limitations of the techniques

There are two main processes of researching market However, the report expressesthat the analysis process is very important for a firm to come in a new market.Because, if it has not enough information which is analysed in detail, it will notpoint out what the program is to approach the target market.

2.1.2 The marketing research brief

In general, market is defined as a group of consumers and producers who areinvolved in the manufacture, purchase and use of the product In practice, marketincludes the product and sales Buyer behaviour, promotion, distribution, pricing,packaging, etc and marketing research can be involves these aspects of market Sohow the researcher knows which aspect of them to start researching? The answerlies on the target and the product of of the firm The marketer should understandclearly the features of the product, the requirement of clients and whether his or herproduct can meet the demand or not Thus, to have a smart marketing program in anew market, the decison- maker should have a marketing research brief followingas: the purpose of the research, the targets stated in a clear, measurable andquantifiable way, a resource allocation, including the budget and facilities, areporting period

2.1.3 The potential market

For a manager, research market is used to find out what is the the strength andweakness of the market And the best thing is to point out what is the potentialmarket for his organization’s market The marketing manager needs to know thepotential market for a new product his/her organisation has been developing At firstglance, this might appear to meet all of the requirements of being clear, concise,attainable, measurable and quantifiable In practice it would possibly meet only one

of these criteria

The problem with the objective is that the marketing manager needs to know thepotential market for the new tree-lifter is that it is not attainable One could find outhow many tree-lifters were currently being sold but this is not the same as theobjective set by the marketing manager The market potential for any new brand is afunction of at least four things, as shown in Chart 1 The components of marketpotential

Chart 1 The components of market potential

The solution would have been to undertake a study which would have described themarket in detail in terms of customers, competitors and the environment Thecompany could then have put a marketing plan together and conducted a follow-upstudy to test their propositions out on the marketplace

2.1.4 The research market proposal

Having received the research brief, the researcher responds with a researchproposal This is a document which develops after having given carefulconsideration to the contents of the research brief The research proposal sets outthe research design and the procedures to be followed The eight steps are set out in

Chart 2 The research design These are only briefly discussed here since the

remainder of this textbook consists of a detailed explanation of each step

Chart 2 The research design

In the range of the report, the writer recommends and explains step 6 and 7 becausethey are the major steps affecting the result of the research

In the step 6, at this stage the researcher is ready to go into the field and collect data.The various issues relating to data collection constitute the main body of the textand therefore, are not used here

In the step 7, The word 'analysis' has two component parts, the prefix 'ana' meaning'above' and the Greek root 'lysis' meaning 'to break up or dissolve' Thus dataanalysis can be described as a process of resolving data into its constituentcomponents, to reveal its characteristic elements and structure There are threedeterminants of the appropriate statistical tools for the purposes of analysis Theseare the number of samples to be compared, whether the samples being compared areindependent of one another and the level of data measurement

Marketing research serves marketing management by providing information which

is relevant to decision making Marketing research does not itself make thedecisions, nor does it guarantee success Rather, marketing research helps to reducethe uncertainty surrounding the decisions to be made In order to do so effectively,marketing research has to be systematic, objective and analytical

The manager or other individual initiating the research must provide guidance to theresearcher in the form of a research brief This document should state the purpose ofthe research, its objectives, the time by which it must be completed, the budget towhich the researcher must work in developing the research design and the timingand frequency of any interim reports which the researcher is expected to make

2.1 Product theory

As recommending above, product is an aspect of the market where a firm or anorganization wants to approach So in practice, what is a product? In this part, thewriter shares theory relating with the definition of product, three levels of a product,product attributes including the quality and appearance of the product

2.1.1 The definition of a product

Product can be defined as anything can be offered to a market for attention,acquisition, use or consumption and that might satisfy a want or need of clients(Kotler P and Amstrong G., 1996) Product is not simply goods - physical objects

which can be used directly, it also is services, persons, places, organizations, ideas.

In particular, services are intangible products that consists of activities, benefits,satisfactions

2.1.2 Three levels of a product

A product is simply the tangible, phsysical entity that they may be buying or selling

In order to actively explore the nature of a product , product planners consider it as

three different products-the core product, the actual product, and finally

the augmented product These kinds of product are describled in Chart 3 Therelevels of a product below

Chart 3 Three levels of a product

In detail, the core product is the most basic level It answers the question: What isthe buyer really buying? In the above table, the core product stands at the center ofthe total product It consists of the problem solving services or core benefits thatconsumers seek when they buy a product The actual product is around the coreproduct It has five charactieristics: a quality level, features, design, a brandname

and packaging Finally, the augmented product is around the core and actual

product This brings consumer services and benefits To consumers, all of theseaugmentations become an important part of the total product.

For a firm appoarching a new market, marketers first must identify the coreconsumer needs the product will satisfy They must design the actual product andfind ways to augment it in order to create the benefits that will best satisfyconsumers

2.1.3 Product Attributes

Nowadays, when consuming becomes popular with major people, consumersincrease their interest in goods they choose Therefore, the importance of theproduct attributes is the most interesting thing when they buy any goods Productattributes influence to the behaviour and attitude of consumers It means that theyalso affect consumer’s decision Here are theories about three kinds of productattributes which determine consumers directly They includes product quality andproduct features and product design

Product quality

Quality is defined as degree to which inherent characteristics fulfill requirementsfrom consumers The standard of quality actually lies on how well their needs andexpectation are sastified In developing a product, marketers consider it as one ofmafor marketing tools In brief, quality can be :

 Knowing the customer’s needs

 Designing to meet them

 Faultless contraction

 Certified performance and safety

 Clear instruction manuals

 Suitable packaging

 Punctual delivery

 Efficient service after buying

 Feedback of field experience

Product quality is rapidly becoming an important competitive issue It means theability of a product to perform its functions

Product features

Produce features generally seem make us confused with product attributes

Features are a competitive tool for diffentiating the firm’s product fromcompetitor’s product To make clearly, there is an example of product features ofthe Nguoi Viet telecom company, named “ Vietnamese uses Vietnamese goods”when introducing its product:

No need to enter or remember PIN number

+ Easy and convenience to use+ Clear crystal voice Fast connection

+ No hidden fee No contract No monthly fee.

+ Never Expire.

+ Worldwide connection+ Speed Dial feature

+ Automatically adjust the numbersthat are entered incorrectly

+ Easy to make payment online.+ Up to date online account management

+ View and print your invoice/statement online

Figure 2 Product features of the Nguoi Viet telecom company in

the “ Vietnamese uses Vietnamese goods” strategy.

We can see that all of functions above are very clear and showing remarkablefeatures of the product By this way, the marketers distinguish their product withother products and persude consumer to use them

Because a product can be offered with varying features and among so manyfeatures, the company’s marketers don’t know what are features need to add theirproduct Many questions are: How a company identify new features and decidewhich ones to add to its product? Which specific features of the product do

consumers like most? Which features could marketers add to improve the product?The fact that the comapany should survey consumers It is an effective way for thecompany because the answer of consumers will provide valued ideas what it shouldfollow in future plan.

Product Design

Product design is the process of designing a product’s style and function: creating aproduct that is attrctive, easy, safe and expensive to use and service; and simple andeconomical to produce and distribute (Kotler P., Amstrong G.,1996)

A company considers design as one of the most powerful competitive weapons.However, we shouldn’t misunderstand with style of a product Design is a largerconcept than style Simply, style just describles the appearance of a product Whilestyle is skin deep, eye-catching, design must go to the heart of the product That aproduct has good design will contribute to a product’s usefulness as well as to itslooks

2.2 Employee element in a business and the connection between employee and manager

2.3.1 The definition of employee

According to the definition:

“An employee is a person who works in the service of another person under an

express or implied contract of hire, under which the employer has the right to

In other word, employee is a person who is hired to provide his/ her labour to acompany in exchange for other benefits such as wage, salary It also means that thesuccess of the company have a lot of the result from the working effort ofemployee

2.3.2 The role of employee in a business

Employees are one of a company’s greatest assets What they say about thecompany, how they act in the workplace, and how happy they are in their roles allimpact on its brand, its image, its levels of service and ultimately its customers’

satisfaction.

Through the working process, employees prove their fluence to the organization andbecome the important workforce for the organization’s existence

2.3.3 The factors affecting employees

There are many factors that can affect the performance of employees in anorganization It is the responsibility of the administrators of the organization tocreate a good working environment for the employees In the range of the study, thewriter just recommends some of main factors including : Knowledge and skills,Family, Support from managers, Social values, Health, Workplace and Ethics

Knowledge and skills

For an employee, to work well in an organization, he/ she should have enoughnecessary knowledge and skills They are the key for them to appoarch the workand do it effectively For administrators of the organization, they also have a duty toprovide training program Because, training and career development initiatives areimportant for the growth of both employees and company

Family

For all employees in any organization, they have family problems in their life Somepeople may have frequent problems which may also affect their work Theemployers should able to show compassion on the worker’s problems to help theworker function effectively

Motivation or support from managers

Motivating employees is extremely important to managers and supervisors Theresponsibility of a manager is to understand the needs of the employees There is afact that the manager should encourage employee to work efficiently Some advicesfor managers or administrators by Mcnamara C following as: always work to aligngoals of the organization with goals of employees, key to supporting the motivation

of your employees is understanding what motivates each of them, recognize that

supporting employee motivation is a process, not a task, etc One of the best known

theories of motivation was put forward by Maslow .A (1954) He presents ahieararchy of needs He identified certain basic human needs and classified them in

an ascenting order of importance Basic needs were at the bottom of the hierarchy,higher needs at the top His classificationss includes:

 Biological and Physiological needs - air, food, drink, shelter, warmth, sex, sleep,etc.

 Safety needs - protection from elements, security, order, law, limits, stability, etc

 Belongingness and Love needs - work group, family, affection, relationships, etc

 Esteem needs - self-esteem, achievement, mastery, independence, status,

dominance, prestige, managerial responsibility, etc

 Self-Actualisation needs - realising personal potential, self-fulfillment, seeking personal growth and peak experiences

Chart 4 Maslow's Hierarchy of Needs

Workplace

Today in the competitive business environment, organizations realize employee astheir assets So it is the reason for them to no longer afford to waste the potential oftheir workforce There are key factors in the employee’s workplace environmentthat impact greatly on their level of motivation and performance Find out whatthese factors are and how administrators can leverage them to create performancechampions So, what are the workplace environment factors that need to be paidattention by serious managers ? Described below are the key factors: Goal-setting,performance feedback or performance appraisal

 Goal-setting:

Following to the theories which are presented by Peter Brucker (1954), eachorganization wants to gain success, the whole and its staff must have clear goals.Each individual must understand the goals of the enterprise he/ she works for andmust make a contribution to them With MBO, individual and organizationobjectives are linked Especially, the surbodinate participates with his/her managerwill develop objectives The subordinate’s performance is judged in terms of howwell or badly he/she has achieved his/ her goals Beside he/she sees clearly his/herrole in the organization , he/she also knows the tasks he/she must carry out It meansthat he/she has a say how his/her job is performed and what is his/her goals should

be As a result he/she feels more responsible and motivated and is likely to be morecommitted to the objectives of the organization

Because of all benefits above, almost the biggest companies in recent time use

Management by Objectives (MBO ) as an usefull tool

 Performance feedback or Performance appraisal:

Nowadays, most organisations have some forms of performance appraisal of theiremployees The appraisal are usually carried out once a year The manager makes

an evaluation of the subordinate This involves filling out a form or writting a report

on the person concerned After this, there is a meeting to discuss about theappraisal Then, a performance appraisal is ajudment on how well a person is doinghis/her work By this way, appraisals help organisations to reward staff properly Animportant purpose of appraisals is to give subordinate feedback on how he/she isperforming The management can talk to the subordinate about the strength andweakness of his/her performance and dicuss how he/she can learn to workeffectively

Ethics

Work ethics is very important for the performance of an employee Good ethics canhelp managers to improve his or her performance Otherwise, it can be affect poorperformance and also demotivate other employees