Low job satisfaction in sacombank – ky hoa transaction office

2.6 Verifying the existence of real problem: Low job satisfaction in Sacombank...192.7 Causes and Effects chart of real problem: Low job satisfaction in Ky Hoa...23 CHAPTER 3: ALTERNATIV

UNIVERSITY OF ECONOMICS HO CHI MINH CITY

International School of Business

-TA THI DIEP -TAN

LOW JOB SATISFACTION

IN SACOMBANK – KY HOA TRANSACTION OFFICE

TABLE OF CONTENT

ACKNOWLEDGEMENT

EXECUTIVE SUMMARY

CHAPTER 1: COMPANY INTRODUCTION

1.1 General Information about Sacombank

1.2 Company details

1.3 Organization chart

CHAPTER 2: PROBLEM IDENTIFICATION

2.1 Problem context

2.2 General symptoms

2.2.1 The first symptom: High employee turnover

2.2.2 The second symptom: Decreasing in profit

2.3 Identifying and Diagnosing Tentative Problems

2.3.1 The first potential problem: Low satisfaction in training and development opportunity

2.3.2 The second potential problem: Low satisfaction in salary, compensation, and benefits 16 2.3.3 The third potential problem: Low satisfaction in job security and promotion opportunity

2.3.4 The fourth potential problem: Low satisfaction in relationships with other employees and supervisors

2.4 The real problem: Low job satisfaction

2.5 Verifying the importance of job satisfaction

2.6 Verifying the existence of real problem: Low job satisfaction in Sacombank 19

2.7 Causes and Effects chart of real problem: Low job satisfaction in Ky Hoa 23

CHAPTER 3: ALTERNATIVES ANALYSIS AND POSSIBLE SOLUTIONS 25

3.1 Justify the importance of the causes 25

3.2 Recommended Solutions 27

3.1 Solution 1: Increasing employee motivation by improving workplace harmony 27

2.2 Solution 2: Increasing employees’ professional skills and career development through training and development plans 28

2.3 Solution 3: Motivating employee by a better performance and reward system 30

CHAPTER 4: SUPPORTING INFORMATION 34

4.1 Questionnaires of employees’ satisfaction 34

4.2 Customers’ interviews 39

4.3 Manager’ interviews 43

4.4 The results of the focus group interview to justify the main causes: 46

REFERENCES 0

I am grateful to my supervisor, Dr Le Nhat Hanh, whose expertise, understanding, generous guidance and support made it possible for me to work on a topic that was of great interest to me

It was my pleasure working with her

I am very thankful to Managers and Directors of Sacombank for give me time to response to myquestions for being ever so kind to show interest in my research and for giving their preciousand kind advice regarding to my topic

I would like to express my gratitude to co-workers at Sacombank Ky Hoa bank for being so

generous to reply to my questionnaires Words can never be enough to thank your all kindness

EXECUTIVE SUMMARY

Ky Hoa Transaction Office (Ky Hoa) of Sacombank located in Su Van Hanh Street, District 10, Ho Chi Minh City is one of the top transaction offices of Sacombank, the top biggestpublic commercial bank in Vietnam The transaction office has impressive growth since the veryfirst day of business It achieved the title of “Potential Transaction office”, a very honor title for

a transaction office of Sacombank, place them equivalent to many branches, which usually included the branches and many smaller transaction offices

However, Ky Hoa’s management team still unsatisfied with the result of its business Despite the great growth of many aspects like customer base, customer deposit and saving, services fee, foreign exchange business…, Ky Hoa’s profit still under performance as pointed out by both the management team of this transaction office and Sacombank headquarter As profit is the key to the survival of any business, lacking of profit means the future of Ky Hoa is

in danger

In order to figure out the problem with this transaction office, the full scale of problem finding methods have been conveyed including interview with Ky Hoa management team; managers of others transaction office of both Sacombank and competitors; focus group with all the related employees of Ky Hoa; and combined with related market condition and literatures After all these step, the lacking of employee satisfaction of Ky Hoa (especially the employees ofcredit department) that lead to the symptom of low credit growth rate is the main problem of this transaction office The possible cause of the problem also pointed out in according with the KPI of KY Hoa Credit department: the inexperience and limited knowledge of the Bank credit

services of credit employees; the satisfaction of employees on salary, work load, benefits andpromotion opportunities; and lack of guidance from supervisors.

Therefore, the first solution for this problem is improving the knowledge of the bank’s services for both the sale team and management team After that, the frequently KPI check for each of employee will be conveyed as the standard for credit department There should be some type reward, visible and recognizable reward for the good work of employee In the mean time, anyone who could not qualified or did not show significant improvement will be replaced by more competent candidates For these solutions to be effective, the management team and

supervisors also need to be restructured as creating the competing environment, providing guidance and encouragement for all members to achieve both personal and department targets Inother word, the harmony in working environment is the key to balance the need of employees, manager, superviors and customers

CHAPTER 1: COMPANY INTRODUCTION 1.1 General Information about Sacombank

Sai Gon Thuong Tin Commercial Joint Stock Bank (Sacombank) was established in

1991, currently one of the top Vietnamese joint stock banks In term of charter capital, it is reaching over 14,000 billion VND and the rank is in the top ten of biggest private banks in Vietnam regards as large amount of capital Currently, Sacombank have 448 Transaction Officesfrom many big cities to small rural areas such as Hanoi, Danang, Ho Chi Minh City, Cu Chi and

An Giang

Sacombank’s team of professional ability provides banking services a large amount of customers from individual, personal banking service to companies like exporters or importers and Small and medium enterprises (Statebank, n.d.) Sacombank is accepted to be a member

of Visa Card network and many reputable financial institutions With roughly 13,000

employees, Sacombank locates its head office at the downtown in Ho Chi Minh City This bank

is increasingly becoming the valuable choice of many enterprises as well as thousands of

individuals (Sacombank, n.d.)

In order to determine problem existence, a preliminary assessment of financial report was released as displayed in Appendix 2 A random key managers or employees of Sacombank were selected to join in this survey and the results (Appendix 1) showed that apart from customer profile and preliminary assessment (Sacombank, n.d.) One more thing, the figure from financial report can

be shown out the performance of employee in certain stance The decrease of credit growth tends to

be increased in relation to the last quarter or the same quarter of last financial report Mostly, the gap between borrowing and lending are tend to be higher while Sacombank strategy has been create many unique sale point to produce several sustainable competitive

advantage for its product (Sacombank, n.d.) Although its advantages are quite significant, the sale team or the volume of sale has been improved in terms of credit growth Meanwhile, a client survey was carried out with the purpose of take a 360-degree point of view about these problems (Sepehri & Akram-lodhi, 2005).

In addition, after several survey and deeply research with the clients or the supervisors,

Ky Hoa Transaction Office was identified many phenomenon’s from low productive and

incompetent credit sale to heavily job-unsatisfaction of many of its employees Comparing with the size and the benchmark of another transaction office, the potential value and operation profit were under expected and the effect growth comparing with June 30th was not positive number Aclient survey can quickly recognize the issues with individual or group In Ky Hoa Transaction Office of Sacombank, client or enterprises are main businesses customers Once again, the feedback from customers was undervalued in many aspects Overall customer services of the Transaction Office do not satisfy the standard of service requirements Several negative

responses mean employee performance is not exceeding expectations Besides, the quality of work is one of the evident for those problems The standard that can be measuring employee performance seems to be lower The work is likely to carry out in higher length of time or lower than average commitment Those indicators above were come from the results the interview withchief operational officers of Sacombank (Appendix)

After those researching and clarify this phenomenon, I truly realize that low performance among employee, which is defined as the main place where a bank's revenue was born by

strategic management and professional service (Tu, Ha & Yen, 2015) It is a hot issue in the view

of competitive environment, especially in the dynamic economy in Vietnam and has great impact

issue at this Ky Hoa Transaction Office with the purpose of improving the situation Productiveemployees are the lifeblood of any banking system It is necessary to assess the performance level in order to comprehend and evaluate the employees.

1.2 Company details

Sacombank Head Office

Address: 266 - 268 Nam KY Khoi Nghia Street, Ward 8, District 3, HCMC

Tel: (+84) 83 9320 420

Fax: (+84) 83 9320 424

Email: info@sacombank.com

Swift: Code: SGTTVNVX

1.3 Organization chart

CHAPTER 2: PROBLEM IDENTIFICATION

2.1 Problem context

According Coudert and Pouvelle (2010), the single most important thing to boost a bank profit in the age of globalization is a strong employee It has increasingly been a cornerstone of any banks in Vietnam to achieve their goals Under the encouragement of banking sector,

Vietnamese domestic banks find them hard to manage their human resources due to the dynamiceconomy and uncertain monetary market Ky Hoa Transaction office is one of the dynamic transaction office, which is located in the heart of busy areas in Ho Chi Minh Through many years of expressive growth, this office has faced the issues known as low employee performance

in credit department Further, those issues could be a main barrier to drag the growth down in thefuture as well as damage the commitment of employees in this office This paper would like to concentrate on this issues based on performance of current staff and some current problems with the purpose of enhancing banking service in Ky Hoa Transaction Office of Sacombank

The fundamental purpose of this thesis is figuring out the solutions to decorate the degree

of employee engagement of branch in Ky Hoa Transaction Office It includes gathering the information, analyzing the necessary of the issues; pick out the root motives of low worker engagement at Ky Hoa Transaction Office, which are company policy and career path, working environment Moreover, primarily based on the root reasons of the issue, the attainable strategies

to decorate the level of employee commitment the place of business additionally are determined out From the conceivable solutions, the efficient solutions will be built and proposed to Ky Hoa Transaction Office so that the effective action can be executed The research will use the basic qualitative method such as interview and survey managers and employees, and reference some

journal articles as well as theories to decide the main symptom, trouble as properly as

ideal solutions

The following step was executed to find the problem of this transaction office:

 The predefine symptoms of Ky Hoa is its profit rate is not as good as

management team expected

 Interview with Ky Hoa management team and Sacombank authorities to

understand the situation of Ky Hoa

 Further study of Ky Hoa accounting data and literature suggested that the main reason for this low profit rate is the extreme low credit growth rate

 Review with competitors and industry data to confirm the problem with

Ky Hoa transaction office

2.2 General symptoms

A Key Performance Indicator (KPI) is a measurable value that demonstrates how

effectively a company is achieving key business objectives Organizations use KPIs at multiple levels to evaluate their success at reaching targets High-level KPIs may focus on the overall performance of the enterprise, while low-level KPIs may focus on processes in departments such as sales, marketing or a call center In this research, the paper relies on KPI of Sacombank

to present about its current symptoms

2.2.1 The first symptom: High employee turnover rate

Employee attrition or turnover can be explained as the number of people who leave employment over a specified period due to retirement, death, redundancy, dismissal, transfer orresignation (Secord, 2003) According to Muller-Camen et al (2008), turnover is the number of

people who leave the organization at a given time period Most organizations would like to reduce their turnover rates, especially when it comes to the good performers who have

benefitted from the companies training programs

However, turnover also creates an opportunity for promotion or career development when

an experienced staff leaves an organization However, high turnover could affect the quality of product and service that is offered to the customers (Baum, 2006) It is important for any

organization to stem the staff attrition rate as finding a replacement could incur heavy costs for the organization Some of these costs include recruitment, administration and selection costs Themanagers will have to recruit new employees which will incur cost to the organization and also

to cover up for the loss, the other employees working in the department would be under pressure

to meet the company targets In a highly competitive market this needs to be avoided by the managers In order to avoid high attrition rate, it is essential for HR managers to try and retain itsexisting employees

Furthermore, HR department reports also demonstrated the increasing of turnover rate in

Ky Hoa office Table 2 showed that the turnover rate in half year 2015 (33%) was significant higher than the rate in 2014 (25%) This number was seen as a serious problem according to Mr.Dai, deputy manager of Ky Hoa Transaction Office, because this rate was very high with a smalltransaction office like Ky Hoa

Table 1.

YEAR

Compulsory turnover

Voluntary turnover

Total of Employees who Left

Total of Employee

Employee Turnover rate

In fact, this number is considered as a high turnover ratio for one of the top branch which contributes large profit for Sacombank Since the average turnover ratio in the first half year in 2014

is approximately 25% The result of statistical in Table 1 showed that the comparison of employee leaving ratio in nearly two year According to some above research, there are many negative effects

in organization such as low productivity, higher cost in recruiting and training new employee and low future performance as well Therefore; this is a bad symptom for any organization if the high turnover ratio become more enlarges and develops consistently

2.2.2 The second symptom: Decreasing in profit

The second symptom that the transaction office should be worried is the decreasing of KyHoa over recent years, as pointed out by the Director of Ly Thai To Branch, Mr Le Van Houl As

Ky Hoa Transaction office is one of the most important part of Ly Thai To Branch, the ability to generate profit of this transaction office seems underwhelming as compare to others similar transaction office under his command as show in Table 2:

Unit: billion VND

2014 Deposit & Saving

- Fee & other charges

The table reveal that even though Ky Hoa is one of the top transaction office of

Sacombank, it seem that the transaction office is still struggled with the ability of generating profit Despite of the increase of every aspect of business, the profit of Ky Hoa could not

improve Comparing two years, it shown that the decrease of the profit from 29 billion to 21 billion, comparing to average in the market It is said that there was a significant problem in theworkplace which can cause this reduction in profit

The head office of Sacombank also shared the same point of view of Ky Hoa situation

As the sole purpose of any company is profit, the reducing trend of Ky Hoa profit signal that there is a problem in this transaction office

2.3 Identifying and Diagnosing Tentative Problems

In order to identify the problems which are the reasons for those above symptoms, the writer is reviewing all studies and researches and coming up with a clear idea about reason why they happen Some of potential causes may come from inside out process and human issues, lack

of skill is considered as a first reason for that There are also several potential issues with an origin in the person themselves Some may be technical and some may be relational Of course,

if the person lacks technical skills there could also be issues with recruitment (Matly & West, 2005) In this case, attention can turn to whether there is time and capacity for the person to learn the required skills Depending upon the company investment to this point and the

employee’s capacity to learn the new skills, additional training may work (Yong-Ki, Jung-Heon, Park & Lee, 2006)

Moreover, the interview with employees show that they feel they are not capable for theirjob, they do not clearly know what to do, and the work-load is just too high for one person to handle That is why they need to be train well before they are eligible to complete their work in agood way

After analyzing the existence and importance of Ky Hoa transaction office problems, thepotential causes of the problems were listed as following:

- Training and development opportunity

- Salary, compensation, and benefits

- Job security and promotion opportunity

- Relationships with other employees and supervisors

2.3.1 The first potential problem: Low satisfaction in training and development

According to Ms Hanh, deputy manager of Human Resource Department of Sacombank Head Office, “In banking service, it may be difficult to find a perfect staff for a certain position”.The banking human resource need to find out a good training system and strictly to recruitment process This is a basic step to filter and get a good quality staff input who are equivalent to a high-level position with a high-level skill (Juan Pablo et al., 2006) Further, the main thing comes from the banking operation system A good workplace environment will reduce to

distracted by stress for employee that they could properly do a good performance The policy that has a good benefit for employee will motivate the employee to do their best Without it, the lower performance is shown up as a return Bad operation system is one of the strongest drives, which direct the low productivity (Yong-Ki et al., 2006) This is a basic step to filter and get a good quality staff input who are equivalent to a high-level position with a high-level skill (Juan Pablo et al., 2006)

2.3.2 The second potential problem: Low satisfaction in salary, compensation, and

Ky Hoa’s survey results demonstrated large number of staffs were disappointed with the

company policies for salary, compensation along with other benefits that they should have

2.3.3 The third potential problem: Low satisfaction in job security and promotion

opportunity

Although salary places an important position among those potential causes of job

satisfaction, money is not the only and big reason According to Chaita (2014), individual feels satisfied with high salary and interesting compensation in only short term They tend to look forward to having a good career development since this will actually keep them feel secured, achievable, and recognized Hence, those things certainly make employees feel more satisfied intheir jobs

Many years ago, banking jobs were considered as desired and high pay jobs Most peopledemanded for working for banks in order to gain a good career development However, recentlythe world economy is slowing down Many banks have been facing with risks of insolvency andlabor cutting That is why bankers are becoming more stressful in their future career paths

2.3.4 The fourth potential problem: Low satisfaction in relationships with other

employees and supervisors

After examining the responses of employees, the writer believed employee’s job

dissatisfaction was also caused by ineffective communication, interaction, or low level of

relationships between employees or between managers and their staffs Dotan (2007) suggested that employee could be more comfortable, helpful, and secured while they had good relationship

in their workplace This can be not only built between employees, but also with their supervisors.There are many other researches also showed the positive outcome of having friends at work canenable trustee and effective among employees (Lee & Ok, 2011) The researchers also stated thathigher level of communication in workplace could reduce turnover rate and absenteeism in an organization

2.4 The real problem: Low job satisfaction

Ky Hoa transaction office has been gone through following difficulties which is shown above The common thing is about low satisfaction which has reviewed by number of people who works inside the office It has negative influence in operations of each division and put pressure not only on human resource department but also on others After having the four tentative problems, the real problem is shown out relied on all analysis about potential problems Firstly, there are many previous studies indicate the performance of employee in the workplace has a big impact by trainingand development policy Secondly, many researchers find that there is a negative relationship

between job satisfaction and employee turnover so that improving job satisfaction can reduce

turnover rate of employees Thirdly, many studies proved that job satisfaction has influence by sale

performance then it can cause the decrease in the profitability Fourthly, job satisfaction and

customer satisfaction have a strong connection with the support

from manager or supervisors To summary, the evidences show that satisfaction in training program, salary, promotion policy, and the communication of managers are main reason whichmake employee dissatisfied.

2.5 Verifying the importance of job satisfaction

Susan (2003) stated that effective services are the effects of successfully working systems, including providing quality employee’s development with a purpose of improving job satisfaction Researches also showed that profitable business is a contribution of effective and motivated staffs Therefore, negative result can affect to customer’s satisfaction and company profitability It would also increase the turnover rate and absenteeism in the organization

Low profitability is the first and foremost thing which any banker considers as a

negative result from job dissatisfaction Productivity and profit have a strong correlation as well

as a connection Human resource in the banking service plays an importance role to produce the quality of product (Pablo, Yolanda, & Javier, 2006) When this resource generates a relatively low amount of performance, the profit margin of the bank is absolute low This absolute

consequence causes business from not processing smooth and experiencing the hard time The banks will need to think carefully about strategic goal and in some cases they are forced to change the plan whereas they would like to push growth over the difficult period

Low productivity is related to low motivation Workers who do not care to optimize

productivity on the job are also likely to skip out whenever possible Bank with low productivity often suffer from high rates of absenteeism and turnover (Pablo et al, 2006) Unmotivated, low-producing workers may call in sick periodically based on a limited perception of the value of their roles In addition, operating might cost up, those costs are defined as a fix cost in banking systems, and the redundant of money cause more cost for remaining a management expense and

thus easily lead to decrease the quality of benefit The higher operating cost will directly take ashine off the results of income (Yong-Ki, Jung-Heon, Park & Lee, 2006) Furthermore, Cohen(2003) stated that low motivation in work might lessen employee’s working effort and wilinessfor the future of company.

Additionally, when employees are extremely not satisfied with their jobs, they tend to find another one to apply in or easily accept job invitations from other competitors of the company This increases turnover rate, working mistakes Low productivity also contributes to downsizing,which most often means layoffs When a company has a broad productivity problem, leaders may respond by letting a number of random workers go This does not do much to improve productivity, but it cuts labor costs However, the employees left after such moves often suffer from low morale based on lost relationships and fear of losing their own jobs As the

consequence, the cost to train or renew a staff is normally higher than retain the old one

(Carmen, Enrique & David, 2004)

2.6 Verifying the existence of real problem: Low job satisfaction in Sacombank

Mrs Uyen stated that Sacombank has one of the best training and development programsfor their junior and senior employees The programs include on-the-job training and self-

development plans Furthermore, the employees also have to take and pass the Sacombank’s banking skills tests quarterly and yearly This is to ensure Sacombank’s staff maintain their professional skills be updated anytime More researches also showed the importance of

organization supports for employees’ improvement on their skills and knowledge This also develops employees in working attitudes and behaviors; hence, it improves the sales

performance or profitability of the organization business (Lancaster & Milia, 2014)

However, the results of employee surveys illustrated the different consequences

58.33% staffs in Ky Hoa said that the training and development plans seem not be tailored for them The program is good itself, but it is seen as heavy assignments on employees Some staffs commented that most of the self-development courses are not interactive programs so thismakes them feel less interested in the program

This thesis acknowledged this problem because Sahinidis and Bouris (2008) also stated that employee perception on the effectiveness of training programs related to employee

attitudes; therefore, whether the company invests on the training and development programs or not, the perception of employees still places an important role in the final result In other words,

it can improve employees’ skills, motivation, or satisfaction if the programs are designed

effectively for the organization

Statt (2004) defined job satisfaction is intrinsic value that workers can get out of his or her jobs The value can be physical or spiritual rewards It can be also the motivation for employees to finish their tasks or keep working on their jobs In addition, job satisfaction is the employee’s sense

of accomplishments such as getting job promotions, higher wages, power, authorities, or recognition (Kaliski, 2007) This explained that employees feel satisfied with their jobs under different

influences Generally, job satisfaction factors can be divided into hygiene factors: company policies, supervision…, and motivators: achievements, responsibility, growth… (Herzberg, 1976)

The writer conducted employee questionnaire including five main elements: working

conditions, salary and promotion opportunity, work relationships, skills and abilities, and job

activities In first section, the result illustrated that most of employee felt satisfied with their work location, paid amount for vacation/sick leave while 8.33% of responses felt dissatisfied with Ky Hoa’s working conditions Besides, working conditions also affect to employee’s motivation

However, this is not certainly the most pretentious problem in Ky Hoa transaction office becauseworking conditions is seen as the last motivator of job satisfaction in recent times (Spicer, 2010).

In second element, the survey answers showed a vast amount of employee who did notsatisfy with their salaries and promotion opportunities 16.67% of staffs thought their salaries are not satisfied them while 50% of Ky Hoa’s employees believed they have less opportunity

in job promotion Besides, other company benefits such as insurances or being member of

special clubs were not satisfying the employees The results also gave a viewpoint of

employee’s demand in achievements’ recognition and reward systems

Keeping harmony within a working environment requires good maintaining of work relationships between co-workers, supervisors/managers Ky Hoa’s staffs mostly had neutral opinion in work relationship with other colleagues It can be seen that social at work plays an important role in employee’s job satisfaction However, there are roughly 41.67% of staffs felt dissatisfied with their supervisors as well as with other branches/divisions Negative

satisfaction in relationship with others co-workers can create a low harmony environment, and therefore, reduce organization strength (Koys, 2001)

Another aspect of job satisfaction also reflects in how employees perceive about their

opportunity to use and develop their skills This factor is related to employee’s perception on the chance to be promoted because most of them believe that the more precise skills they have, the morechance they would have higher salary and being promoted to higher position following Mr Huol However, the responses showed that employees felt disappointed with their opportunity to learn newskills (41.67%) and utilize their skills and talents in the organization (41.67%) Significantly,

58.33% staffs responded that they were receiving unsuitable training and education development

were noticeable and increasing every year After evaluating interviews and surveys results, thewrite considered that job satisfaction of Ky Hoa’s employees might be one of current problems

at Ky Hoa Transaction Office

2.7 Causes and Effects chart of real problem: Low job satisfaction in Ky Hoa

Cause and Effect Map of employee’s job dissatisfaction

Table 1 Cause and Effect map

Training and development opportunity

(Matly & West, 2005)

Salary, compensation, and benefits

(Dotan, 2007)

The above cause and effect map gave a general view of employee’s job dissatisfaction

problem in Ky Hoa transaction office By that, the writer listed all the potential causes of the

problem with its impacts; therefore, created a foundation on finding the solution and

According to literature review, some causes which are training and development

opportunity, salary, compensation, and benefits, job security and promotion opportunity,

23

relationships with other employees and supervisors Those things could affect the employees’ jobsatisfaction which was currently happening in Ky Hoa Transaction office Mr Dai and Mrs Uyen agreed these causes were the challenge this office has to overcome to maintain the quality and service.

In 2015, Sacombank’s human resource noticed the importance of relationship between staff and supervisors across all over the branches as a result of balanced scorecards testing It implied that the relationships with other employees and supervisors are the urgent and serious causes among the others The understanding of the outstanding causes is the basis to find out theway to cope with issues In the next part, some programs and plan are going to be provided to develop the employee satisfaction of Ky Hoa Transaction office

CHAPTER 3: ALTERNATIVES ANALYSIS AND POSSIBLE SOLUTIONS

Base on the previous finding, these solutions were suggested for Ky Hoa:

- Improving the knowledge of bank services for credit department

- Frequently review and check the progress of each person by their related KPI

- Have encouragement for good employees and replacement for any

incompetence’s

- Restructure the supervisors team: to create the competing environment, helpful and encourage the development of each other to achieve personal and department

targets

3.1 Justify the importance of the causes

Every employee is an individual human being and the things that affect the individual employees negatively in the workplace are unique The reasons could be poorly matched to the job in workplace in which they do not have the skills to be successful Alternatively, it could be substance abuse, extreme job dissatisfaction difficulty with a poor manager or poor work ethic They may be guilty of employee fraud or theft Whatever the reasons may be, an organization must understand how to identify the root of problem, the root of employee behaviour and how

it is relating to low productivity so that the organization can establish strategies to improve the organizational workforce

Company policies and strategies

Company's productivity may be decreased by ineffective management practices in severalways The overall strategy for such kind of company consists of inefficiencies because the manager does not see and does not take steps to implement the most productive ways to

25

do not have the coaching and freedom to reach their full potential, so they are not as much done

as they could Employees who do not feel like their superiors recognize their efforts often donot try hard to perform to the full capacity of them

Additionally, sometimes a company uses clunky and outdated methods to carry out its desired goals, which results negatively as its productivity decreases significantly For e.g., if onecompany uses software to automatically track and record data, while another collects it

manually, by hand, the productivity of second company will be much lower because the person tracking and collecting data cannot do much else Companies can increase their productivity by automating and streamlining processes to decrease the work needed to complete tasks by the employees

Employee dissatisfaction

Dissatisfied employees are mostly the unproductive employees, while passionate

employees who are happy about their jobs get the work done effectively Human beings have anatural tendency of prioritizing the tasks they like or want to do, so the employee who likes hisjob will naturally put his job ahead of his other desires, for e.g., chatting with a co-worker, relaxing, or getting through the day so he can go home Getting the right person for the job canlead to a satisfied and happy employee and a productive company

In the organization, the employees who experience personal problems show to be low productivity than those who are not experiencing problems similar to them In particular, poor health and stress both contribute to low levels of productivity and high absenteeism Companiescan provide to the employees on-site counselling to help decrease stress levels and help the employees solve through other personal problems, which are hindering productivity Employees

should also be encouraged by companies to take sick time when needed to help them It

could become more serious if they are coming to the office and getting others sick

The employees in an organization are the most valuable asset to the organization

Keeping them motivated and engaged is the key to a successful and highly productive

workforce Some employees produce to their highest capabilities regardless of the incentive given to them, while some employees need an occasional jump-start for work When handled effectively, the result can be increased employee morale and greater productivity

3.2 Recommended Solutions

3.1 Solution 1: Increasing employee motivation by improving workplace harmony

Motivating employees to get best performance from the employees is not a typical

science and there is no single rule to implement for each employee Different peoples working in

a same organization can have different problems and different attitudes to perform their certain jobs Firstly, we need to know the employee how he can perform well and what his or her desiresare Secondly, implementing the solution is in the best effective way

The first solution can be done by the cooperating of all employees included managers.Firstly, Ky Hoa transaction office should promote the most active person in the office becomethe event leader He or she then will form a club or event organizer This club will get

imbursement paid for encouraging the organizers doing they works effectively Main tasks of this club will be:

 Encourage employees all the time before, during, and after the work Promote fun and happiness at the workplace

Playing a popular or favourite song is at the beginning of the workday, lunchtime,

someone’s birthday… The song should be meaningful and helpful in inspiring people at work Besides, the club can send entertaining emails to staffs at the less busy workday It can be a funstory, video, self-help articles, or successful people stories

 Recognize and reward by informal ways

Giving recognition and reward for employees’ achievement by informal ways such as

informal appraisals from co-workers and managers, small party in lunchtime or after work

 Confidential conversation between managers and employees

Providing employees an opportunity to say their problems privately is to the supervisorfor solution It can be a private conversation at meeting room or outside of the office However,

it should be ensured that the conversation kept secretly

2.2 Solution 2: Increasing employees’ professional skills and career development through training and development plans

It is evident to say that the company needs to provide more training courses for most of its staffs not only salesmen and technical mans The content of knowledge and information need

to expand to interpersonal skills such as communication and management, not only focus on new products’ information Providing learning and training program for staffs is one of the non-monetary compensation that company can do to improve the current low satisfaction Training programs support staffs learn the ropes of their present position and help them stay updated in their field It is important for Sacombank to develop training programs during year in order to meet the needs of it and its employees It positively affects to the growing and changing for a better working environment, a higher skilful employees and a profitable business activities

This solution requires more attention from higher managers because it depends on

company’s investment of time and money on their employees Furthermore, it also takes a long time for rebuilding the structure of previous courses However, the managers should consider it

as a long-term solution because it not only solves the problems of Ky Hoa transaction office, but also support for other branches of the bank The successful solvency can also improve the bank brand and gain more customers for the bank In order to implement this solution, Ky Hoa’smanagers could apply these steps:

- Firstly, scheduling more training workshops in Ky Hoa transaction office

Providing employees support is the most effective learning by interacting with seniors and managers of the bank The lecturers could be from other branches and different departments

of the bank The workshops will require the attention of all the staffs

- Secondly, suggesting the directors to update the training and self-learning programs

The library should be updated frequently with news and documents Furthermore, it also needs to be tailored for every level of employees from junior to senior In addition, a good