LV thạc sỹ_Recommendations to improve management of employees performance and customer relationship in leasing business of Intracom

NATIONAL ECONOMICS UNIVESITY ENGLISH FOR BUSINESS DEPARTMENT FACULTY OF FOREIGN LANGUAGES ¬ RECOMMENDATIONS TO IMPROVE MANAGEMENT OF EMPLOYEES’ PERFORMANCE AND CUSTOMER RELATIONSHIP I

NATIONAL ECONOMICS UNIVESITYENGLISH FOR BUSINESS DEPARTMENT FACULTY OF FOREIGN LANGUAGES

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Hanoi- 5/

NATIONAL ECONOMICS UNIVESITY ENGLISH FOR BUSINESS DEPARTMENT FACULTY OF FOREIGN LANGUAGES



¬

RECOMMENDATIONS TO IMPROVE MANAGEMENT OF EMPLOYEES’ PERFORMANCE AND CUSTOMER RELATIONSHIP IN LEASING BUSINESS OF INTRACOM

Field code: 701

Supervisor:

Hanoi- 5/2011

This study is completed not as the result of my personal effort but the outcome ofenthusiastic support and contribution from many people involved in my internshipprocess

Therefore, I would like to thank Ms …

Once again, I deeply appreciate all the great support that I received during myinternship.

This situation is the result of inefficient employees’ performance management andinefficient customer relationship management Its management failures are shownthe most clearly in two sources: employee turnover and communication facilities Therefore, a management reform is the key solution to help Leasing Departmentovercome its drawbacks and attain greater competitive strength among other leasebuildings in Hanoi.

Recommendations discussed in this report include:

 Improve employees’ performance management

 Improve customer relationship management

TABLE OF CONTENTS

ACKNOWLEDGEMENTS i

EXECUTIVE SUMMARY ii

TABLE OF CONTENTS iii

INTRODUCTION 1

CHAPTER 1: INRODUCTION OF LEASING BUSINESS OF INTRACOM .3 1.1 Introduction of Intracom 3

1.1.1 History of establishment and outstanding achievements 3

1.1.2 Business activities 3

1.2 Leasing activity in Intracom: Role and Difficulties 4

1.2.1 Role 4

1.2.2 Difficulties 6

As Philip Kotler says the difficulties of a business contain external and internal burdens The followings are external difficulties which come from the outside environment Intracom has face to 3 biggest challenges: 6 CHAPTER 2 9

THEORETICAL FRAMEWORK 9

2.1 Framework 9

2.1.1 Management 9

2.1.2 Lease management 10

2.1.3 Lease management concerns 11

2.2 Important role of employee and customer relationship managements in leasing field 13

2.3 Improving customer and employee relationship managements 16

2.3.1 Employee management 16

2.3.2 Customer relationship management 20

CHAPTER 3 25

ANALYSIS AND FINDINGS 25

3.1 Employee performance management 25

3.1.1 Employee performance 25

3.1.2 Employee satisfactions 26

3.2 Customer relationship management 28

3.2.1 Intracom’s knowledge about its customers 28

3.2.2 Intracom leasing devices 32

Intracom has equipped the buildings with plenty of devices which can be divided into two groups: 32

CHAPTER 4 34

RECOMMENDATIONS 34

4.1 Employee management suggestions 34

4.1.1 Improving employees’ performance through opening training courses, drawing up employees in rank and waging properly 34

4.1.2 Improving employee satisfaction level 35

4.2 Customer relationship management suggestions 36

4.2.1 To understand customers better 36

4.2.2 To facilitate customer data storage 37

CONCLUSION 38

APPENDIX 40

REFERENCES 41

Background

Since 2009 of starting operation, Intracom has run business in leasing officesmoothly with high percentage of filling up in room space However, thecompetitiveness becomes harsher and market is enlarging continuously, whichpresses Intracom has to consider remaining and improving operation proficiency tosurvive To achieve those objectives, Intracom has to overcome its failures inemployee and customer relationship management

Rationale

The growth of Vietnam economy and free-trade create the convenient condition forfirms to develop In plenty types of economic entities, small and medium firms aredeveloping more outstandingly ever Each year sees the appearance of hundreds orthousands firms Their appearance also pushes a high demand on offices Based onthat demand, offices for lease are more and more built to respond to that demand.Leasing offices is more and more developed The market of lease is filling uprapidly, which put requirements to companies in leasing business to try more infierce competition round

Intracom is a long-time player in this business Since its establishment in 1998,Intracom has provided leasing services and construction in numerous projects Insome extent, it can be seen as well-known in the C-classed office for lease.However, as a specialized department with its own management Leas Departmenthas failed to prove its efficiency in keeping employees loyal to company andkeeping in touch with customers This results from its inefficient management.Therefore, in this study, I analyzed some drawbacks of Lease Department in terms

of employees’ performance and customer relationship managements from which Icould draw some recommendations to solve the situation

Research questions

My report gives answers to the following questions:

- What are issues of employees’ performance management?

- What are Lease Department’s failures in customer relationship management?

- How can Lease Department and Intracom improve its management?

Scope of research

The study focus on analyzing failures of Intracom in managements of employee andcustomer relationship in order to withdraw the lessons and to give somerecommendation to innovate its leasing performance

Methodology

In this report I based on three main research methods to present my ideas andarguments, which are observational method, quantitative method and descriptivemethod

Sources and method of data collection

Analysis in my report primarily based on secondary data such as statistics ofemployee turnover, records of human resources and current facilities The data wascollected through observation, Intracom’s performance reports and minutes ofmeetings

CHAPTER 1: INRODUCTION OF LEASING

BUSINESS OF INTRACOM

1.1 Introduction of Intracom

1.1.1 History of establishment and outstanding achievements

Precursor of Intracom is a State-owned Company and it was transferred into JointStock Company model in 2006 That milestone marked the expanding of Intracomfrom a single business into a multiple business In other word, Intracom hasdiversified its business activity

Intracom with 300 employees include engineers, experts, workers, etc They workand build a plenty of projects of offices, apartments, social houses and new urbanzones The chef filed of Intracom business is building containing hydro powers,high-rise and low-rise buildings etc However, the company is spreading itsbusiness into leasing, financial investment, building materials, etc

Intracom created and built its brand as a leading builder in construction withidentical logo and slogan of “shining with country” and “integration for two-sidedevelopment” It promises to bring winning and profit to its partners

Intracom has been awarded a number of achievements and merits Some are merit

by building ministry, gold cup for successful integration 2000

1.1.2 Business activities

Intracom is building company widening its activities to other fields of investment,leasing and material production Nevertheless, its main power is in building andsub-fields are investment, leasing and material production

Construction

The main strength of Intracom is building and construction, which makes it.Intracom values this as a start point and long development schedule Currently,Intracom is building 8 major projects: Intracom 1 Intracom 2, Intracom 3, Intracom

8, 2 hydro power projects, Oriental medical project, Ta Loi 3, Ta loi 5 and othersmall ones

Investment

Investment can be understood as spending spare money, labor, capitals, etc on theany field to make and create more money and benefits in the future Intracomcurrently is investing in finance, construction and hydro power In these, Intracomcan contribute its capitals and other powers to the projects, following the principles

of integration and sharing Beyond basic investments, Intracom stands on itsincredibility to build up the close relationship with banks such as Agribank,Techcombank, Viettinbank and VRBank, etc

Leasing

Intracom depends on building to improve leasing activity In other word, a number

of finished and planned projects and buildings will become the foundation andsources to develop leasing activities Leasing is a kind of new filed in Vietnamtheoretically, but in practice, it can be seen as traditional one Because manyenterprises are powerful in building, which makes potentiality to enhance leasingbased on the spare rooms in their buildings Also, leasing keeps many advantages todevelop in a transitional economy in Vietnam Leasing not only solve the problems

of offices in hot-time of estate but also helps company, especially mediumcompanies saves money of wasting on building one of their own Seeing that need,Intracom determines to keep up with the modern trend, focuses on growing leasingbusiness

1.2 Leasing activity in Intracom: Role and Difficulties

1.2.1 Role

Traditional business, new concept

It is hard to trace back the origin of leasing business No clear evidence of leasing isfound However, leasing business has a quite simple development like a naturalimprovement For the beginning, it started from the using up of available rooms andspaces of buildings where its owner couldn’t spend all The owner would like toexploit the available resources which can bring them more money than leave them

empty For developed countries like America, Japan, etc, leasing is concerned both

as practical business and development of a new management For developingnations as Vietnam, leasing is a practical business which has been running for along time but there is no theoretical term is developed So is truth for Intracom’scase In Intracom, leasing is an old business as construction Two activities arestuck closely together More and more developed construction is, more and morepotential of development leasing is Nevertheless, the long time of history doesn’t

go with scientific notion What is leasing? For them, leasing can be inclinedgenerally The truth of few people in Intracom can have enough knowledge ofleasing management which is a requirement to ensure the survival of a particularenterprise in leasing market Thus, It is not rumor to say that for the case ofIntracom, leasing is a familiar business but still a new concept

Increasing importance

Leasing is keeping more significant role in the improvement of Intracom In 3 fields

of business, leasing is the second most profitable after construction In 2010, leasingactivity brought Intrcom 5 billion VND, about 28% of its net profit while the benefitwhich was brought by financial investment was just about 12,7% despite its hugeinvestment It is collected that Intracom has 4,8 billion VND on annual average.The estimation is predicted to increase gradually

Being invested heavily year after year

To recognize that reality, management board of Intracom has invested increasingly.The past years saw Intracom’s poor investment in leasing field because it heavilyfocused on construction and is attracted by new potential incomes from financialinvestment The ignored field of leasing now has its suitable funding Themanagement is now caring for many issues involved The building’s designconcerned as the job of architecture now is cared by whole board and advised frombuilding experts who will tell Intracom the fashionable design and safety standards.Besides, they have to ensure to get beautiful and commercial surroundings andlocations Intracom funds for leasing office problems involved have been raised 3times in comparison to the past The management board accepts to pay more forhigher bill of leasing based on the confirmation of solid growth of this field

1.2.2 Difficulties

As Philip Kotler says the difficulties of a business contain external and internalburdens The followings are external difficulties which come from the outside

environment Intracom has face to 3 biggest challenges:

The first is from crowded market, harsh rivals Vietnam leasing office market now

is assessed by global well-known real estate providers such as Savills and CBRSVietnam as “exceed for the demand of companies and businesses” They say thatspare offices in big cities as Hanoi and Ho Chi Minh City currently are 60% empty

It is the situation of VN estate and leasing office field Leased offices can bedivided into 3 categories of A, B, C classes A class covers luxury offices havingaverage area of 5,000 Square meters, foreign management, high quality, moderndesign, computerized control, and good view while B and C offices are requestedwith less than 5,000 square meters, Vietnamese management, even technologicalstandards cannot be high as the A class, however, they have to meet requirements ofmodern offices like containing separate escalator system, auto ventilation andlightning, etc The classification is depended on the location, average area,equipment and services Nevertheless, Vietnam lease market is developing, thencriteria are not be agreed, classification is not actually accuracy Even theagreement has reached; some A-class offices cannot meet all the requirements InVietnam, multinational tend to establish and build up their own offices and biggroup too, which makes the A class is more gloomy, less active than the market of

B and C Small and medium businesses favor leasing suitable offices because theseoffices is suitable for their business scope and ensure saving capital Even though Coffices market is hotter than A and B markets, the competition in this segment istough for all players If they do not want to be pulled out or sided out, they accept tofight hard There are some predators for class C offices like Intracom develop in thetransitional economy in Vietnam First is the emergence of mass of small andmedium businesses who cannot afford to build or buy an office for themselves Thesecond is leasing office keep potential benefit which helps them to save capitals.The third is leasing an office is easier for them to change their location if thebusiness environment changes or even they can find a new place for working if they

do not satisfy with the services and profits in current leased office For all thebenefits and advantages a leased office brings to leaser, the landlord like Intracom

has to deal with the threats of losing customers and high level of empty officeswhich can waste money without any income

The second is from characteristics of “product” (office) Office is a kind of specialproduct with shape and functions will be affected badly by time After 5 to 10 years

of using, a building starts downgrading and falling behind the design of modernarchitecture That determinant makes customers find some new place which canmeet their expectations of office and building design and beautifies their image inpartners and rivals’ eyes So, theoretically, a building can survive for decades butcan stand in leasing office field in more than 20 to 30 years It is said that buildingand construction is one of the most active and changing businesses in an economy

To have great and competitive product/offices, investors and constructors have tomaintain and redesign their products regularly which pull along amount of massivesum

The third is from higher and higher requirements of renters Leasers want to hire acomfortable office, a suitable one for their business They need to be decorated inprofessional style and they need satisfying services with clean offices and toilets.They need more free stuffs, more free parking lots attached They never want tostop desiring and needing form a product When they are satisfied with all aboverequirements, they keep desiring a reduced cost and delayed payment All thingsdefined here are not a kind of complains from renters, nevertheless,company/landlord like Intracom has to find how-to meet customers’ expectations.However, before meeting customers’ expectations, companies see them aschallenges How they can increase quality of offices and services with lower pricewhile cost and inflation do not have tendency to stop

There may be many reasons for Lease Division situation, one of those is inefficientmanagement, which will be analyzed as the focus of this report The followingchapters of my report aimed at finding the answers to some questions:

However, it has to be accepted that the external challenges of Intracom are thecommon challenges for all firms running their business in leasing business In thestudy, what being focused is not the external challenges coming from the businessenvironment but the internal challenges of Intracom They are management ofemployees’ performance and the customer relationship

- What are issues of employees’ performance management in Intracom?

- What are failures of Intracom in management of customer relationship?

- How can Intracom Lease Division improve its employees’ performance andcustomer relationship management?

Research methodology and methods of data collection

This report used observational method to observe and record how managementtasks are performed by Lease Department in order to point out some drawbacksemerging in the middle of its operation process Basing on quantitative method, itanalyzed numerical statistics from the company’s performance reports and minutes

of internal meetings such as its revenue, rates of revenue to draw a clear picture ofLease Department’s situation concerning its growth, position and competitivestrength among other departments Moreover, carried out as a descriptive research,this report aims at identifying the underlying causes leading to Lease Departmentweaknesses from which proper recommendations can be given out

Scope of the research

This report analyzes failure of Lease Department – Intracom in employees’performance and customer relationship management,

In the close-up of the performance of Lease Department, some problems in leasingmangement management have arisen In the latter part of my report, I will introducethe theoretical framework for leasing management on which I can draw a clearpicture for the department situation, especially its failures in applying managementprinciples which result in its current weaknesses

CHAPTER 2

THEORETICAL FRAMEWORK

Even leasing is a new emergence in recent years; however, the combinationbetween leasing and management to create the concept of leasing management isnot a total new Based on the development and history of management theory,people can understand the notion of leasing management The study aims to bring aspecific and scientific sight to the matters of leasing management; therefore, thetheory of management will be shown and cited following the classic pundits

2.1 Framework

2.1.1 Management

As far as I concerned whatever problem in my writing, the most general and rootingsource I should mention is management A according to the long history ofmanagement theory development and the deep research of pundits, numerousdefinitions have come to the life, here some well-known quotes:

“Management” (from Old French ménagement “the art of conducting, directing”, from Latin manu agere “to lead by the hand”) characterizes the process of leading and directing all or part of an organization, often a business, through the deployment and manipulation of resources (human, financial, material, intellectual

or intangible)

(http://www.expertwitness.com/srch/human/resource/management/in/relation/to/care/needs/assessment/and/reveiw.htm)

The definition is traced back to the root meaning of Latin phrase “to lead by thehand” It suggests the management should be giving direction rather than passingsuggestion but still in gentle approach

The other interpretation of this term is “Management is the process of achieving the objectives of the business organization by bringing together human, physical,

and financial resources in an optimum combination and making the best decision for the organization while taking into consideration its operating environment.”

(http://www.managementheaven.com/established-definitions-management/)

The definition stresses the components of resources to achieve a planned objectives,however, its differentiator is concerning operating environment as one of must-know to managers

From two above definitions “Management” can be understood as a process ofachieving an objective by utilizing tangible and intangible resources of materials,finance and human, etc

(www.ehow.com/ab out _4811014_definition-of-leasing.html )

Lease is defined as a written agreement under which a property owner allows a

tenant to use the property for a specified period of time and rent

Lease management is a complex process with distinct phases that if not managed correctly can cost a real estate company significant revenue losses, court costs, or lost tenants A typical deal involves multiple departments, each working on their portion of the lease Often, outside or third-party collaboration is also used Leasing agents, legal counsel, outside consultants, property managers, and corporate executives all need an effective way to communicate with each other in order to effectively complete their piece of the overall transaction–all while creating appropriate records and audit trail.

( http://www.opentext.com/2/global/sol-industry/sol-ind-realestate/sol-ind-realestate-leasemgmt.htm)

2.1.3 Lease management concerns

Leasing is a business with special “product” which will not be change theownership after leasing The product, here, is offices still under the ownership ofleaser but its utility currently under the renters’ right Because of thosecharacteristics, leasing office has involvement to many things, accordingly, based

on the criteria of division, some problems can be named, and however, four mainconcerns are named including: Office, service, employees’ performance andcustomer relationship managements

Office management is an organizational lifecycle function within a companydealing with the planning or forecasting or marketing of building and offices at allstages of their longevity and preference The preference is mentioned here because

in leasing offices, a renter leases an office being affected not only by factors ofprice, location and surrounding but by the design and the architecture These showthem indirectly and build up first impression of their partners and customers

Service management in leasing office introduces monitoring and optimizing aservice or sub-services of leasing to ensure that they meet the critical outcomes thecustomer values Plus, these services such as cleaning, reception and security, freeparking will contribute to persuade customers’ favourite to a given leaser

Two following concerns are the most recognized issues in leasing management Inwhich, firms try to improve to compete and debate their rivals In the future, expertssay that these will be the most decisive, innovative and changeable factorsdetermining the survival of leasing firms

Employee performance management

Employee performance management is a process that companies use to ensure their employees are contributing to producing a high quality product or service Employee performance management encourages the employee to get involved in the planning for the company, and therefore anticipates by having a role in the process the employee will be motivated to perform at a high level.

(

http://www.ehow.com/about_5044541_definition-employee-performance-management.html)

Employee performance management is briefly defined as a process companies use

to ensure their employees are contributing to producing a high quality product orservice Employee performance management encourages the employee to getinvolved in the planning for the company, and therefore anticipates by having a role

in the process the employee will be motivated to perform at a high level Managers,

IT staff, blue workers, receptionists, etc, all are counted on personnel of a leasingbusiness How good the management of these people will determine the success of acompany in field Actually, this is seen and assessed as one of the most vital factors

to company’s future and operation The recent studies disclosed the fact ofproficiency under the effects of employees’ performance The proficiency increasesdepending on the positive attitude and the skilful level of labours while this datatends to decrease due to the negative feeling and untrained level of employees

Customer relationship management (CRM)

Customer Relationship Management (CRM) is an information industry term for methodologies, software, and usually Internet capabilities that help an enterprise manage customer relationships in an organized and efficient manner In many cases,

an enterprise builds a database about its customers This database describes relationships in sufficient detail so that management, salespeople, and customer service reps can access information; match customer needs with product plans and offerings; remind customers of service requirements; know what other products a customer had purchased; etc.

(www.mariosalexandrou.com/ / crm asp )

CRM is a widely-implemented strategy for managing a company’s interactionswith customers, clients and sales prospects It involves using technology toorganize, automate, and synchronize business processes principally sales activities,but also those for marketing, customer service, and technical support The overallgoals are to find, attract, and win new clients, nurture and retain those the companyalready has, entice former clients back into the fold, and reduce the costs ofmarketing and client service Customer relationship management describes acompany-wide business strategy including customer-interface departments as well

as other departments In leasing business, what especially mentioned is themaintenance or remaining customers because the leasing contact usually lastsaround 10 years or over, in that longevity of time, a leaser can cut involved costs of

finding new customers and advertising They can cut and save capitals at the sametime That is a smart approach

Although leasing management contains plenty of components, however, in extent ofstudying Intracom case, management of customer relationship and employeeperformance is the most annoying and need solving instantly These currentproblems are internal and external sources but can be changed under the energy ofdepartments and spend little cash There are number of reasons explaining the truth,followings take some most persuasive ones

2.2 Important role of employee and customer relationship managements

in leasing field

a Decisive factors to improve competitiveness of company

Competitiveness of a unit in business environment sees employee performance asdeterminant In manufacturing field, employees are labour making goods, theirskills will determine the product quality A skilled labour is able to create wellprocessed product, on the contrary, unskilled labour cannot, in some case, they maymake unacceptable errors In services, the performance of employees is even moreserious issues Because the consequence of their wrongness cannot be showninstantly, the repeated wrongness or errors will devastate images and business ofcompany For example, receptionists should be polite and welcome; she/he has tobring the feeling of eagerness and profession at the first glance for visitor If she canbring customers the good impression, she accidently or purposely becomes a barrier

on the way customers come to company, they are affected by the poor impressionthus they hesitate to partner with company In other aspect, what benefits acompany can bring to its employees are competitive involvement in business Thecompetitiveness is in labour market Attraction to good labour mainly decided bywell-being a company can provide is decisive actors to its flowing stream of talentswho will make the last decisions of business fate Companies, currently, are infierce round to get the championship of who is the most attractive? And who is thebest? They run a race of giving the most sky-level wage, of most desirable workingenvironment or most numerous promotions, etc the proves tells the truth ofrecognition of businesses about the importance of motivation to labours are popular

Whole world of business sees motivation as a considerable problem which needsinvesting properly

If management of employee performance is an internal factor, management ofcustomer relationship is external How can a company keep contact with itscustomers in the effective way in the most saving way? Finding customers in RedOcean is difficult, but keeping them to remain their business transaction to us evenmore challenging Red-ocean is water area where full of “sharks”, strong suppliers

or producers, where every little cake category is fought over It seems to be theplace natural selection works, the weak will be killed and the strongest leftdominating marketplace Firms playing in that ground find “making goodrelationship” with customer as the secret weapon for their survival It is not strangecustomers but close and familiar ones How to change them into repeated and goldcustomers require a plenty of trying and endeavour It is about providing goodproducts/services, keeping contact frequently, understands future consumptiondesires, being a head of trend, and so many involvements which have to be seen in aspecific business case The significance of keeping relationship is more and morerecognized because the advantages First and foremost, making good relationshipwith customers is the best way to PR one product or service, the familiar customercan introduce their choice of a brand name to his acquaintance or friends, relatives,etc according to economic researchers, and this is the best advertising resort Thesecond, if customer relation is remained for a long time, utility of product orservices become a “habit” or even becomes a part of “tradition” That point is idealfor all businesses The case of Coca-Cola is typical for that theory Since the day offoundation, coca-cola has come in mind and stack step by step to their memory; ithas become a part of American culture, which is the strongest point of Coca-Cola tobeat its rivals in the new century Pepsi, its harsh competitor ever, has overcomeCoca-Cola taste and marketing approach, however, Pepsi could defeat Coca-cola to

be the haunted image in their mind That is why Pepsi always on the second place.The third advantage is about cost saving, how much money a company has towithdraw to persuade and attract a new customer and do not know they will comeback or not, for certain? That’s risk investment, if cost is over the income, they willlose How could they remain their survival? It is hard to come to the accuracynumber, however, it is estimated to bring up an industry of marketing From some

of advantages named companies look CRM as a field need heavy investment.Actually, successful companies are companies can give the appropriate attitude andfunds to CRM

b Innovative factors in leasing business

Innovation is most repeated term in modern business In the field of computerproduction, it is said that for each new version appears in the market, the otherversion which is faster and more innovative is designed Innovation becomesproblem of “to be or not to be” It is true not only for the most active field likecomputer manufacturing but also the services like leasing Innovation in leasing isabout concerning architecture, location, facilities, finding and keeping customermethods, serving style, level training employees Here, architecture and location,facilities are issues cannot be shifted after building process It can be complicatedand over-costly to start reconsidering those problems after completion Then,finding and keeping customers/renters as called CRM and serving style might bemore feasible Serving style will be changed depending on the skills and howmotivated employees are? Truly, they should be seen in problems of “employeemanagement”

In recent years, firms show their great creativeness in managing to keep in touchwith customers and to motivate and to train staff Many computer-based programs

of managing customer have been born to restore customer data and connection.Programs such as Prophet, Maximizer, Commence are used increasingly by leasingcompanies They go on applying programs to keep their business activities smooth

In future, the promising appearance of new programs are made, companies want togrow to get quick response to changes

Market and technology are changing quickly, which outdates knowledge taught inschool, employees with that obsolete knowledge are forced to face with thechallenges of modern and complex technology, they have to be retrained to graspnew knowledge In other word, more and more changing technology has been, moreand more innovative training has to be The question is why training needs to beinnovative First of all, training needs to be innovative to bring the most effective

result to trainees, which will influence directly on proficiency Then, the knowledgetaught must be applied in the reality instantly Because the fast trend of technologymeans one technology is soon out of date If that knowledge cannot be transferredquickly, it will become ineffective Staff cannot keep up with technology, whichdecreases proficiency and waste fund and time of training Secondly, innovation intraining reflects modern management of a company That management methodrequests employees learn continuously, in training process who can follow andprove themselves will be the survival, on the contrary who cannot give enoughtrying and follow will be left So that, creating training innovative and effective isnot a puzzle for manager but also the problem of trainees They have to get forthemselves the best measure of learning Then, training now is not one-waydirection but multi-way direction, a trainee can learn from trainer and other bettertrainees and learning by doing, etc for how many ways a trainee is taught and howcreative he/she is in learning process, the final goal is grasping the new technologyand method as quickly as possible

c Changeable factor in leasing office business

After a building is done, it comes to leasing market and launched for rent At thattime, changes in architecture and construction are hard to be made because it wastes

up so much financial capitals and time, even it can make a building come to bebroken away That special and separate character of leasing industry forcesmanagers to consider carefully before starting construction of a building, they have

to reach an agreement on architecture all Then to face with tough competitiveness

in market, management sees services and customer relationship management aseffective weapons Services must ensure quality and hospitableness Theserequirements for deeper will be determined by employees Therefore, to reach thecompetitive advantage in giving service, the managers need care two questions ofmanagement of employees and customer relationship

2.3 Improving customer and employee relationship managements

2.3.1 Employee management

2.3.1.1 Appraising employees’ performance

To enhance performance of employees, a manager has to realize where theemployee’s ability is, their ability now is on which step of evaluation ladder?Therefore, it is necessary to give an exact evaluation to employee’s performance.Making an appraisal list is important and one of the initiative things should be doneimmediately

There are many reasons why you may decide that an appraisal is appropriate and thefollowing is a common list for using one: to identify any training that may beneeded, to make personal/business objectives clear, to identify employees that arepotential for promotion, to review salaries or payment methods Management board

is encouraged to implement appraisal because of identifying individual strengths ofemployees, increasing motivation in the workplace, updating job descriptions

Using an appraisal system brings plenty of benefits For instance, it gives an idea ofwhat you should expect from your employees For employees are given feed-back,

it helps them increase productivity and ability by eliminating weakness andidentifying strength Manager and superior will develop a better relationship withemployees by getting to know them better and what their job consists of moreprecisely

Appraisals have no set structure when time is involved and are usually done whenthe business believes it is necessary Ideally, appraisal should be something thatgoes on all year but there are only times when you can formally evaluate youremployees Although different people will have different opinions on when anappraisal evaluation should be issued, the first is suggested after six months of theinitial employment of the employee After this, the next appraisal is suggested sixmonths later and then extended to following yearly periods It is therefore sayingthat all employees will have different times for appraisal evaluations but a specific

time of the year where evaluation of all employees at the same time being doneshould be indicated.

2.3.1.2 Motivating employees via understanding and meeting their needs

a Traditional theory “X”

The theory by Sigmund Freud who was no lover of people, and was far from being optimistic Theory assumes that people are lazy, they hate work to the extent that they avoid it; they have no ambition, take no initiative and avoid taking any responsibility, all they want

is security and to get them to do any work, they must be rewarded, coerced, intimidated and punished This is so-called “stick and carrot” philosophy of management If this theory were valid, managers will have to constantly police their staff, whom they cannot trust and who will refuse to cooperate In such an oppressive and frustrating atmosphere, both for the manager and the managed, there is no possibility of any achievement or any creative work But fortunately, as we know, this is not the case.

Freud’s theory especially is unsuitable for employee management The theory justsees on the pessimistic side of a labour and doesn’t encourage employees tocontribute to the work and the general objective of the company

b Theory “Y” by Douglas McGregor

This is in sharp contrast to theory “X” McGreygor believed that people want tolearn and that work is natural activity to the extent that they develop self-disciplineand self-development They see their reward not so much in cash payments as in thefreedom to do difficult and challenging work themselves The managers’ job is to

“dovetail” the human wish for self-development into the organizations need formaximum productive efficiency The basic objectives of both are therefore met andwith imagination and sincerity, the enormous potential can be tapped

This theory can be construed by some, that theory “Y” management is soft andslack This is not true and the profit in the “pudding”, for it has already proved itsworth in the USA and elsewhere For best results, the persons must be carefullyselected to form a homogeneous group A good leader of such a group mayconveniently “absent” from group meetings so they can discuss the matters freelyand help select and “groom” a new leader The leader does no longer hanker after