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UNIVERSITY OF ECONOMICS HO CHI MINH CITY
International School of Business
Le Thi Kim Khang
POOR WORKING ENVIRONMENT
IN HARDLINE SECTOR AT AEON
MALL TAN PHU CELEDON
Tham Khảo Thêm Tài Liệu Tại Luanvanpanda
Dịch Vụ Hỗ Trợ Viết Thuê Tiểu Luận, Báo Cáo, Khoá Luận, Luận Văn
Zalo/Telegram Hỗ Trợ : 0932.091.562
MASTER OF BUSINESS ADMINISTRATION
Ho Chi Minh City – Year 2022
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UNIVERSITY OF ECONOMICS HO CHI MINH CITY
International School of Business
Le Thi Kim Khang
POOR WORKING ENVIRONMENT
IN HARDLINE SECTOR AT AEON
MALL TAN PHU CELEDON
MASTER OF BUSINESS ADMINISTRATION
SUPERVISOR: DR. DOAN ANH TUAN
Ho Chi Minh City – Year 2022
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Table of Contents
LIST OF FIGURE ..........................................................................................................5
LIST OF TABLE............................................................................................................6
EXECUTIVE SUMMARY............................................................................................7
1. COMPANY OVERVIEW ......................................................................................8
1.1. AEON GROUP AND AEON MALL VIETNAM...................................................................8
1.2. HARDLINE SECTOR............................................................................................................. 10
2. SYMPTOMS:........................................................................................................10
2.1. HIGH TURNOVER RATE...................................................................................................... 10
2.2. DECREASE SALES VOLUME.............................................................................................. 12
3. PROBLEM IDENTIFICATION:..........................................................................13
3.1. POTENTIAL PROBLEMS...................................................................................................... 13
Personal reasons....................................................................................................13
Direct supervisor:..................................................................................................14
Working environment ...........................................................................................14
Decrease in sales volume ......................................................................................15
3.2. VALIDATING PROBLEMS................................................................................................... 16
Managers’ perspectives.........................................................................................17
Employees’ perspectives:......................................................................................18
3.3. THE MAIN PROBLEM .......................................................................................................... 18
4. CAUSE VALIDATION:.......................................................................................19
4.1. POTENTIAL CAUSES............................................................................................................ 19
Poor qualification of tool & equipment ................................................................19
Bad ventilation system ..........................................................................................20
Unreasonable shift hour ........................................................................................20
4.2. VALIDATING CAUSES ........................................................................................................ 20
Poor qualification of tool and equipment..............................................................21
Unreasonable shift hour ........................................................................................21
4
Bad ventilation system ..........................................................................................21
5. ALTERNATIVE SOLUTIONS:...........................................................................22
5.1. ALTERNATIVE SOLUTION 1: REPLACE POOR QUALIFICATION TOOLS AND
EQUIPMENT......................................................................................................................................... 23
Phase 1: Recheck office tools and equipment.......................................................23
Phase 2: Finding the potential suppliers................................................................23
Phase 3: Control and monitor................................................................................25
Phase 4: Report and evaluate result of solution. ...................................................25
5.2. ALTERNATIVE SOLUTION 2: FIX THE UNREASONABLE SHIFT HOUR .................. 25
Phase 1: Evaluate how unreasonable shift hour of employees .............................26
Phase 2: Suggest new daily working time.............................................................26
Phase 3: Report and evaluate result of solution. ...................................................26
5.3. ALTERNATIVE SOLUTION 3: STANDARDIZED PROCESSIZATION.......................... 26
Phase 1: Making a standard working process .......................................................27
Phase 2: Evaluate to complete the processes ........................................................28
Phase 3: Report and enhance the system...............................................................28
6. ACTION PLAN: ...................................................................................................29
6.1. ACTION PLAN 1: REPLACE POOR TOOLS AND EQUIPMENT.................................... 29
6.2. ACTION PLAN 2: FIX UNREASONABLE SHIFT HOUR................................................. 31
6.3. ACTION PLAN 3: STANDARDIZED PROCESSIZATION................................................ 33
1. Making a standard working process..................................................................33
7. SUPPORTING INFORMATION:........................................................................34
7.1. INTERVIEWEE’S DEMOGRAPHIC .................................................................................... 34
7.2. INTERVIEW GUIDE .............................................................................................................. 34
Introduction...........................................................................................................34
Warm – up question ..............................................................................................34
Main body of interview.........................................................................................34
REFERENCES .............................................................................................................35
APPENDIX 1: TRANSCRIPT SUMMARY ...............................................................37
5
List of figure
Figure 1. Aeon Mall Tan Phu Celedon...........................................................................8
Figure 2. Basic principle of Aeon Mall ..........................................................................9
Figure 3. Hardline structure at Aeon Mall Celadon .....................................................10
Figure 4.The percentage of turnover rate in Hardline Sector in Aeon Mall Celedon in
2018 ..............................................................................................................................11
Figure 5. Sale volume of Hardline Sector in 2018 .......................................................12
Figure 6. Reasons of Turnover in Hardline Sector in 2018..........................................13
Figure 7. Initial Cause - effect map ..............................................................................16
Figure 8. Updated cause - effect map...........................................................................19
Figure 9. Final cause - effect map of Hardline Sector..................................................22
Figure 10. Registering shift hour process.....................................................................27
Figure 11. Selling process ............................................................................................28
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List of table
Table 1. The percentage of turnover rate of Hardline Sector in Aeon Mall Celedon Tan
Phu in 2018...................................................................................................................11
Table 2. Potential suppliers ..........................................................................................25
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Executive summary
According to research report of EU – Vietnam Business Network (1), Vietnam’s
retail industry is the prosperous market which attract many different domestic and
international companies to invest and develop in there. However, the biggest challenge
facing employers in this industry is the high turnover rate of employees, even turnover
is an issue that both businesses and workers are not expecting. Ideally, Hai Van (2)
reported, 20% of workers said that candidates’ did not have enough obligation and the
high turnover rate are the biggest challenges, with 49 per cent claiming that candidates
are easily effected when they have offers from another company.
Today, AEON Group is one of the largest retail companies with impressive
linkage scales and performance in Japan as well as in other countries. AEON Vietnam
Co., Ltd. opened the first shopping center "AEON MALL Tan Phu Celadon" with the
largest scale in Ho Chi Minh City on January 11, 2014. This shopping center will be
the third country after Malaysia and China to mark AEON's emergence as a large-scale
shopping mall.
However, one of the most difficult challenges that AEON Tan Phu Celadon has
to confront one of the hardest problems which are how to maintain a permanent human
resource. Spending a lot of time and money training a quality team and keeping them
motivated in a stressful working environment is not a simple challenge. In addition,
talents are often attracted to some other attractive offers, along with better remuneration.
This issue not only increases the personnel cost of the enterprise but also reduces the
business efficiency and even leads to the lack of and weak personnel that can "destroy"
the business. If this problem continues, it will adversely affect the business, as well as
the image of the company. Therefore, it is necessary to analyze each influencing factor,
assessing the risk of each of those factors to each employee, right from the time of
recruitment to the appropriate and appropriate measures.
Starting from the above, I decided to choose the topic “Poor working
environment in Hardline Sector at Aeon Mall Tan Phu Celedon” which is topic for my
thesis. Since then, propose some solutions to reduce poor working condition and
improve the situation in Hardline Sector.
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1. Company overview:
1.1. Aeon Group and Aeon Mall Vietnam:
Aeon Group was established in 1758 in Japan. Aeon is one of the largest retail
company and has 179 joint ventures in both domestic and oversea.
Throughout its operation time, the AEON Group maintains an unwavering
commitment to set "Customer First" consistently. The basic principle of AEON Group
is towards a prosperous, stable and peaceful society through retailing. With that
responsibility, AEON Group has gained the trust of customers as well as expanding
business activities not only in Japan but also in other countries in Asia which are China,
Vietnam, and so on for a long time.
AEON officially started its operations in Vietnam in 2009 as a Representative Office
from 01/12/2009 to 10/07/2012. In 07/10/2011, The company was approved by the
People's Committee of Ho Chi Minh City, AEON Vietnam Co., Ltd was officially
established, investing for construction, organization, management and business
activities: Trade Center, General Department Store and Supermarket. This is considered
the main business direction. In addition, AEON conducts other business activities
related to import-export, trade and research.
Figure 1. Aeon Mall Tan Phu Celedon
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AEON MALL system in Vietnam includes AEON - Tan Phu Celadon Shopping
Center in Ho Chi Minh City in 2014, AEON Shopping Center - Binh Duong Canary in
Binh Duong, AEON - Long Bien Shopping Center in Hanoi in 2015 and AEON
Shopping Center - Binh Tan District in Ho Chi Minh City in 2016. In 2019, Aeon Mall
Vietnam plans to open new shopping center at Ha Dong of Hanoi.
Basic principle of AEON:
 "Peace": All AEON activities aim to pursue prosperity to create a stable
peace.
 "Human": AEON always respects and values human qualities and values,
as well as strives to promote the building of close relationships in the
same collective.
 "Community": AEON is constantly devoted to contributing to creating
the sustainable development of the community.
Figure 2. Basic principle of Aeon Mall
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1.2. Hardline sector:
There are two basic forms of goods in a retail store of Aeon which are Hardline
and Softline. If the term soft goods or Softline refers to merchandise that is literally
“soft”, Hard goods or hardlines are goods that are “hard” to the touch. A department
store or product line consisting primarily of goods such as household appliances,
electronics, sporting goods, health care and beauty products or toys will be considered
hard goods. In Aeon, hardline includes three divisions: Home Appliance – Multimedia,
Home fashion – Household – DIY and Stationary – Sports – Bike. The numbers of
employee are 78 people. Besides, in Hardline sector, it also has two levels of staff like
other department which is front desk staff and managers.
Figure 3. Hardline structure at Aeon Mall Celadon
2. Symptoms:
2.1. High turnover rate:
During the working time and data of company in 2018, I realized that main
symptoms of company are high turnover rate and decrease in sales volume. Turnover
rate is one of the most important things which human resources need to pay more
attention and manage it in suitable limitation. Nowadays, turnover likes phenomena
11
12 14.00%
10
12.00%
10.00%
8
8.00%
6
6.00%
4
4.00%
2
2.00%
0 0.00%
1 2 3 4 5 6 7 8 9 10 11 12
Number of employee quit their job Turnover rate
especially in young people. Some of them think that they are so good to do their old
work. Therefore, company or organization realizes that turnover is issue which can
affect badly for finance, operation situation in one company or organization. According
to define of Cambridge dictionary that turnover shows that the rate of people who work
in specific company quite or change their jobs and replace by new employees. While
Adams and Beehr (3) claimed that turnover likes cycle which the company always has
to hire and train new employees who will instead of the old workers.
Month 1 2 3 4 5 6 7 8 9 10 11 12
Headcount 76 78 74 76 75 74 75 73 78 74 74 75
Resigned 1 8 6 10 7 3 4 1 4 4 5 3
Turnover
rate
1.32
%
10.26
%
8.11
%
13.16
%
9.33
%
4.05
%
5.33
%
1.37
%
5.13
%
5.41
%
6.76
%
4.00
%
Table 1. The percentage of turnover rate of Hardline Sector in Aeon Mall Celedon Tan Phu in 2018
Figure 4.The percentage of turnover rate in Hardline Sector in Aeon Mall Celedon in 2018
According to below table and figure, the number of people change their own
job were pretty high in during year. Although the rate declined in the end of the year,
they still had affected badly for finance or operation situation of the company. In April,
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the turnover was the highest among other months in one year which was 13,16%. While
August was the month which had 1.37% employees who quite their job in 2018.
2.2. Decrease sales volume:
Figure 5. Sale volume of Hardline Sector in 2018
According to figure above, sale volume of Hardline Sector in 2018 was not good
and decearse from January to December which was from over 18 million VND to under
8 million VND. Moreover, the actual sales were lower than benchmarks which were set
differently in each month.
Besides, based on data in figure 5, from January to December, even though
turnover rate in Hardline reduced, the numbers of sale were still pretty low and did not
reach the target. Therefore, decreasing sales volume is another symptomd besides high
turnover rate.
All things considered, high turnover rate is a symptom which Aeon Mall Celedon
Tan Phu should be investigated main problems and found out potential solutions to
Sale volume of Hardline in 2018
20,000,000,000.00
18,000,000,000.00
16,000,000,000.00
14,000,000,000.00
12,000,000,000.00
10,000,000,000.00
8,000,000,000.00
6,000,000,000.00
4,000,000,000.00
2,000,000,000.00
-
1 2 3 4
Sale volume
5 6 7 8 9 10 11 12
Target sale volume
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solve this symptom. Because this symptom not only affected operation process but also
made profit run down.
3. Problem identification:
3.1. Potential problems:
According to data of employee engagement survey and in – depth interview
about what factors effect turnover decision of employees in Hardline sector, several
potential problems are listed below:
Personal reasons:
Personal reasons defined as several causes relate to health, family issues,
education conditions of children and social status which can lead to turnover of
employee in individual organization (4) . Aeon Mall Celedon Tan Phu also faced to this
situation when the front desk officers of Hardline Sector decided to quit their position
because of personal reasons such as joining military, studying, working location and so
on. Besides, employees in there also quit their jobs because of finding new job. Personal
reasons also showed ability to adapt with new working conditions if employees cannot
fit with this environment, they will easily to turnover (5). Therefore, during the
probation, several workers could not pass and go on their position.
Figure 6. Reasons of Turnover in Hardline Sector in 2018
As a figure 6, family reason, studying, new job, personal reason and health are
the most reasons which almost employee turnover reported to Human Resource
Reasons of turnover in Hardline Sector in 2018
18
16
14
12
10
8
6
4
2
0
Personal Studying Family Health Location New job Discipline Military Probation
reason reason service
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Department why they wanted to change their job. Family reason was reason which was
chosen 17 people when they quit. Besides, studying was reason of 7 people because
front desk staff was recruited from above 18 years old. Therefore, some of them would
have aspired to continue their study path for reach higher degree. While health problems
were pretty high which was around 7 persons to choose this reason. Health issues were
able to relate with workload and shift which were not suitable for themselves. The
employees had to work extra time in weekend especially in the holiday. Besides, shift
hour of the workers did not reasonable. Sometimes, they would work in six or eight
hours which was not consistency.
To sum up, personal reasons are one of the simplest reasons which most of
employees easily choose to quit their job. Besides, personal reasons are from their
internal thinking. Therefore, organization gets hard to manage the issues and only
control it as minimize as possibly.
Direct supervisor:
Communication is an important skill which can support and remain good
relationship between managers and employees. It is preliminary factor to affect an
ability to employee turnover (6). Hardline Sector also faced to several problems which
related directly to lack of communication skills. Employees in there felt not respect and
dissatisfied because of their direct supervisor who lack of communication skills. In this
sector, managers sometimes did not have enough listening skill to know clearly about
what employees need. Besides, during working time, managers vociferated and treated
their own staff unfairly. Moreover, when mangers missed communication skills, they
were able to make other people feel unrespected. Employees are from all of levels in
company who always want to treat with all respect because they are deserve by all things
they did for increasing profit for company (5). Because of these problems, they made
employee turnover in Hardline sector. In short, ways of communication between direct
supervisor and workers are one of the factors which affects employee retention in
Hardline.
Working environment:
Working environment is sum of interaction relationship between employees and
employers and the environment where workers work, including technology, people and
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organizational environments (7). It means that working environment has an important
role during working time of each employee in specific business. For this reason, when
employees work in poor working environment, they will change their job easily. In fact,
in Hardline sector of Aeon Mall Tan Phu Celedon has confront with several problems
which exist from working condition. People in there claimed that they had to work in
condition which had broken tool and equipment such as broken air – conditioners.
Besides, in some case, they had to work overload in weekend especially in the holiday.
Moreover, shift hour of front – desk staff in Hardline has not worked in the consistent
schedule. Sometimes employees had to work in shift, which was 6 hours, other shift
was 8 hours. It also is one of factors which make workers feel not uncomfortable in
there working time. To sum up, working environment in Aeon Mall Tan Phu Celedon
still has some weaknesses which make people feel dissatisfaction and want to quit their
position.
Decrease in sales volume
Sales volume number of goods which was sold in operation process of company
in a specific time. So that when sales volume decrease, it will become one of problems
which the company should pay more attention and find out potential solutions. In Aeon
Mall Tan Phu Celedon, Hardline sector has to face with decreasing in sales volume
because of several problems. The first potential problem is from compensation policy
of company. The front desk employees in there do not have their own KPIs which is
known as key performance indicators. When employees do not have KPIs, they do not
have for themselves target which can follow to reach and feel unmotivated to work.
Besides, online shopping becomes one of the most trends which attracts customers to
use it. Online shopping can help buyers save their time because of its convenience.
Therefore, it is also other potential problems which affects badly on sales performance
of company. Moreover, Aeon Mall is a new player in Vietnam retail marketing. This
company only joins the market from 2014. Thus, the company is in a favorable situation
in the market which other competitors such as BigC, Saigon Coopmart, Lotte Mart and
so on. As a result, goods of Hardline sector cannot compete with others which company
has to join the market from long time and has a strong position in mindset of consumers.
Besides, when sales volume of Hardline are low, it also affects to employee
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High job
dissatisfaction
Bad ventilation
system
Low
competitivesness
Do not have
KPIs
Decrease in
sales
volume
Direct supervisor
Feel unrespected
Poor
communication
skills
Poor working
environment
Unreasonable shift
hour
High
turnover
rate
Poor qualification of
tool & equipment
Subjective
employees reason
performance. They might feel boring during their working time because of small
number of customers who come and buy goods in this sector. Finally, it also becomes
potential problem which influence indirectly on employee turnover situation in
Hardline Sector of Aeon Mall Tan Phu Celedon.
Figure 7. Initial Cause - effect map
3.2. Validating problems:
In 2017, as reported by Navigos Group (8), several companies have to face with
high number of employees who are willing to leave their position after working in one
or two years in retail market. It means that high turnover rate is not only problem of
individual organization but also issue of many businesses which join the Vietnam retail
market recently. Because organization has to invest a lot of money for human resources
to provide for employees many different things which are training, working process,
making plan and so on to reach goal of company (9). Aeon Mall Tan Phu Celedon also
confronts with this kind of situation in Hardline sector. According to data and result
survey about how Hardline front staffs satisfy and reason to quit their jobs in Aeon Mall
Tan Phu Celedon, some potential problems led to high turnover rate in Hardline sector
which were personal reason, direct supervisor and working environment. The first
reason is family reason, their home was far from workplace which was one of reasons.
Secondly, almost front desk employees are students who just graduated from college or
university, so that they could change the job when they found new job or want to go on
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studying. In the next factor, health of their own workers is one of reason that they want
to quite their job. They had to work overtime in the weekend and holiday. Moreover,
the shift hour is not suitable for them. Several days, they had to work much more time
than others. That was also reason which made unsatisfied and found another job.
Besides, the workers did not receive respect from their direct supervisor. In addition,
some communication skills of supervisors were not good enough to persuade
employees. They recently shouted or forced employees work their own task which made
people feel uncomfortable during working time. Especially, working environment is a
factor that front – desk employees in Hardline Department felt dissatisfied to work in
Aeon Mall Celadon. Several people did not have enough patient to work in probation
time. Besides, when people had to work overtime and unsuitable jobs, employees would
feel tired and want to quite the job. On the other hand, employees worked in the
condition with broken equipment and tool which made people interrupt their working
process. Therefore, working environment is considered as main problem which affect
directly on employee turnover in Hardline sector.
To confirm the importance of main problem, the further information which was
collected by interviewing managers and employees in Hardline sector are summarized
in below:
Managers’ perspectives:
Mr. Nguyen Thanh Trieu – Hardline Manager said that his focusing on
improving working environment to improve on their business this is very importance
factor for the current Hardline situation. Moreover, employees need to work towards a
common goal and ensure they are responsible for the job of the whole team, instead of
working alone and taking personal responsibility. Notably, if there is a problem in team,
the team members responsible for solving those problems can ask other departments to
coordinate and receive support to find a quick and accurate solution.
In addition, Ms. La Thuc Trinh - Hardline's current Division sales leader also
said that the lack of team spirit is the biggest problem and due to the lack of working
environment among teams, it makes internal work overloaded and a change in job
responsibilities between teams.
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Employees’ perspectives:
In the thinking of employees, working environment is one of the most important
factors which people concern when they have desire to quite their job. Workplace
condition can help people have the best situation to work and earn profit. According to
interview of Ms Le Yen Ngoc, she mentioned that machines worked well, it could help
the workers improve the productive in working process. Besides, she also hoped that
company should have more policies which created more chance and good working
condition for every worker especially front desk employee.
Besides Mr Tran Cong Tuan thought that he felt uncomfortable because of his
noisy co – workers. His colleagues usually talked loudly or ate in air condition room.
While Mr Tran Minh Tuan loved to work in fresh, clean room. When they were
interviewed about what should be changed to improve workplace in Aeon Mall, both of
them had the same opinion about creating more opportunities for development in
working condition.
3.3. The main problem:
The influence of working environment has an important role to impact employee
satisfaction in the company. Because workplace combines physical, psychological and
social environment in a specific workplace (10). Besides, poor working environment
can cause many different problems such as job dissatisfaction, poor productivity, health
of workers and so on. When working environment needs to improve, the consequence
claims that it will affect negatively on employee performance and lead to turnover and
low profit situation.
The first impact poor working environment is job satisfaction which is defined
as how employees feel about their work in various aspect of jobs, so that job satisfaction
and dissatisfaction appear easily in any circumstances during working time (11). Job
satisfaction have an influence on the performance of employees in the organization.
Moreover, environment in workplace also effect on the health of worker. Impact
of working environment on the worker health, both of physical and social environment
still have their own specific influence on the health of workers (12). In this research,
health of employees not only is affected by lighting, ventilation systems and so on but
also job stress, job position or KPIs of individual staff. It claims that working
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environment is very important factor which should be concentrated during the operation
process.
In addition, environmental in workplace also effects on the productivity of
workers during their working time. Productivity of employees who work in the
company is effect by the overall working environment and proves that interrelationship
between productivity and environmental in workplace (13).
In the conclusion, working environment is very important because it is main
problem which lead to high turnover rate and impact on the sales volume which are
symptoms that the Aeon Mall Tan Phu Celedon has to face with in the Hardline sector.
4. Cause validation:
4.1. Potential causes:
Based on the previous data from survey, result of in – depth interview and
literature reviews, several potential causes of the main problem are identified in the
below figure which is the updated cause- effect map of the department as follow:
Figure 8. Updated cause - effect map
Poor qualification of tool & equipment
Tool and equipment are factors as machinery which belong to the working
environment (10). It also affects directly or indirectly on the performance of employees
if the qualification of these do not good enough to support operation process. Besides,
some of tool and equipment in Hardline Sector face with broken situation which make
people get hard during their work. Productivity of employees are also impacted by this
Decrease in
sales volume
Poor employee
performance
High turnover
rate
Bad ventilation
system
Poor working
environment
Unreasonable shift
hour
Poor qualification of
tool & equipment
Poor
productivity
High job
dissatisfaction
Low worker health
20
problem. Therefore, poor qualification of tool and equipment are issues which Hardline
Sector should pay more attention to improve the performance of employees.
Bad ventilation system
Ventilation system is another factor which relate with physical factors of
working environment so that it is also issue which company should concern to improve
and develop working condition for employees. Air and heating systems should check
and repair regularly (14). However, ventilation system of Hardline Sector has to
confront with several circumstance as non – working air – condition which affect
negatively on health and working ability of people in the sector.
Unreasonable shift hour
The final issue impacts on performance and health of employees which make
people want to quite their own job, is an unreasonable shift hour. It leads to workload
situation because their working time are not consistent. Workload has a relationship
with job stress and turnover (15). Besides, workload is able to affect health of workers.
Therefore, unreasonable shift hour also is one of factors that Aeon Mall Tan Phu
Celedon should consider providing good working condition for their own employees.
4.2. Validating causes:
According to in – depth interview of employees in Hardline Sector, people have
to confront with many different issues which relate with situation about poor working
condition. Environment of workplace in individual organization includes physical
factors which surround space of employees and psychological elements are able to
effect performance of people who work in the company (16). In the Hardline Sector,
employees in there has to face with several causes as poor qualification of tool &
equipment, bad ventilation system and unreasonable shift hour which effect directly on
working environment. According to Carnevale, physical environments in organizations
include all of the material objects and stimuli such as buildings, equipment, lighting and
air quality as well as how to arrange those objects and stimuli which are open-space
office plans and flexible team work spaces that employees can encounter and interact
with others in workplace (17). Thus, both poor qualification of tool & equipment and
bad ventilation system belong to physical factors which impact directly on health and
productivity of people who work in the company. Besides, bad working environment
21
not only physical objects but also other factors which relate to shift hour of workers.
These poor qualify of conditions in workplace are able to lead employees to several
negative results for themselves for example health conditions, stressful, overload and
so on (18).
Poor qualification of tool and equipment
According to result of survey about employee engagement, it proved that
employees had to face with trouble from broken tool and equipment which should be
repaired early. However, this problem has not solved immediately. It pushes employees
have work in poor condition without good equipment. Therefore, it is one of problems
which affect directly on physical working environment.
Unreasonable shift hour
Besides, unreasonable shift hour is other potential cause which influence the
central problem. It made employees feel unfair between themselves to others. In some
situation, workers should start their shift at 8.30 am and end at 17.00pm. However, this
schedule has not been the same as among employees. As Ms Le Yen Ngoc said that,
she had to work at 8.30 am and her shift would end at 17.00 pm. While Ms Thanh Ngan
who is her colleague, started her shift at 9:30 am and ended at 15:30 pm. Because of
this situation, it also made people who work in the same shift will feel uncomfortable.
Moreover, with this unreasonable shift hour, it also affected negatively on health of
workers. In some working day, they had to work over 8 hours a day. Otherwise, they
only worked around six or seven hours in their shift. They would get hard to arrange
their personal schedule because of this shift plan.
Bad ventilation system
In addition, employees in Hardline sector also confront with bad ventilation
system. In some places in store, the ventilation system had problem which air –
conditioner did not work. It means that workers had to work in hot temperate. This
circumstance could make employees feel uncomfortable in the working time. However,
bad ventilation system also belongs to physical environment which relates to material
that can support and improve the productivity of workers. When people work in good
condition, they can focus their own mind on working process, and it will help to create
high productivity. Mr Tran Cong Tuan shared that, in some hot day, he felt very terrible
22
when he had to work in hot and uncomfortable atmosphere because of broken
ventilation system.
In general, poor qualification tools & equipment and bad ventilation system are
belonged to the physical factors of working environment. Therefore, the main causes
lead to the high turnover rate and decrease in sales volume situation in the Hardline
sector.
Figure 9. Final cause - effect map of Hardline Sector
5. Alternative solutions:
According to final cause – effect map, Hardline Sector of Aeon Mall Tan Phu
Celedon has to face with two main causes which have a relationship with poor working
environment. By these causes, employees in Hardline Sector have to face with several
difficulties such as health, stress, productivity and so on. With poor qualification tools
and equipment, Mr Cong Tuan said that with broken tools and equipment, he had to pay
more time to complete his task. It means that workers waste more their time to finish
their task because of bad tools and equipment. Besides, ventilation system also causes
to some of disease as sore throat, dry skin, cold and flu. Therefore, the company should
check and replace or repair tools and equipment to improve the working environment
for employees in the Hardline Sector. Moreover, unreasonable shift hour is another
issue of people who work in there. Ms Yen Ngoc told that the shift hours were
unreasonable, and she had to work over 8 hours a day while other day I only have to
work around 6 or 7 hours. By this shift hour, she might feel tired and could not have
Validated problem
Poor working
environment
Main causes
Unreasonable shift
hour
Poor qualification
of tool &
equipment
Consequences
Job dissatisfaction
Impact health of staffs
Symptoms
23
enough health to do mission well. In general, shift hour also needs to enhance to adapt
with necessary of jobs and be suitable for health of employees.
In the conclusion, qualification of tools & equipment with unreasonable shift hours
are two important causes which can impact negatively on employees. According to
above parts of thesis, two alternative solution below are suggested to improve working
conditions for people who work in Hardline at Aeon Mall Celedon Tan Phu.
5.1. Alternative solution 1: Replace poor qualification tools and equipment.
In this alternative solution, check and replace or repair broken tool and equipment.
However, Hardline Sector should divide into four phases to solve the problem about
working ability of tools and equipment in the department. These phases are following
in the below:
- Firstly, Hardline Sector should focus on recheck the number of office equipment
and make sure these have problem or not.
- The second phases, the sector should find out the potential supplier that can
supply good equipment with high qualify for the Aeon Mall.
- In the next phases, Hardline Sector should control and monitor the items that the
supplier has provided for company right or wrong with the proposal in previous
phase.
- Reporting is the final phases that Hardline should pay attention. In this phase,
people can evaluate result of solution and how the solution improve the
performance and productivity of employees.
Phase 1: Recheck office tools and equipment
In the first phase, recheck office tools and equipment is the necessary step for
Hardline Sector to validate how many broken tools and equipment in the department.
In addition to, this process also supports for Hardline Sector which can identify how
much poor qualification tools and equipment should be improved. Besides, the manager
has responsibility for rechecking and making list of tools and equipment which need to
replace or repair in the Hardline Sector.
Phase 2: Finding the potential suppliers.
After making list of tools and equipment, the manager has to find and connect
with potential supplier that Aeon Mall cooperated before as following table below:
24
No.
Name of
company
Services/ Products Advantages
1
TOT
Company
Provided both services as
consultancy, layout and design,
implementations, installation and
maintenances, spare parts, sales &
servicing and several products
such as supermarket gondola,
check in counter, blast chillers,
trolleys/shopping carts and so on
- Vietnam company.
- Provides variety services and
products.
- Located in Phu Nhuan
District nearby Aeon Mall.
- Cooperated with many
famous retail brands as Aeon
Mall, E- Mart, Co.opmart,
Lotte Mart, and so on.
2
SEMBA
Company
Provided door pull handle, lever
handle, push – pull handle, swing
door lock, sliding door, door
accessory, bathroom accessory,
room accessories, kitchen series,
furniture knob and hotel amenity.
- Japanese company.
- Have both Japanese and local
staff.
- Vietnam branch office at
Binh Thanh District.
- Provide many different
services and products relate
with commercial facility.
3
OKAMURA
Company
Main services are water treatment
system, wastewater treatment
system and disinfection system.
- Two main business fields
relate with wastewater
system.
- Japanese company has many
branches in Japan, Vietnam
and Thailand.
- Located in District 2 which is
far from company.
25
4
KAWAJUN
Company
The company provides consultant
services; creating safe working
environment; designing
architecture, structure, M&E and
BIM, construction and building
care office services.
- Provides services in hotel
collection, medical facility
equipment, interior hardware
and so on.
- Japanese company.
- Branch office at District 1.
Table 2. Potential suppliers
According to above table, the manager can clarify and choose potential company
which are suitable suppliers for this solution. In this phase, the manager is a direct
person who connect with supplier and report with upper level manager to ask for
permission.
Phase 3: Control and monitor.
During this phase, the supplier has taken a responsibility for providing right tools
and equipment as the contract which was made in previous phase. While replacing or
repairing the broken tools and equipment process, the manager should pay attention on
controlling and monitoring construction of the supplier. In this phase, the manager could
have fundamental to report with the upper level manager of Aeon Mall Tan Phu
Celedon.
Phase 4: Report and evaluate result of solution.
In the final phase, the manager has liability to report and evaluate result of
solution to the upper level manager. Besides, the manager not only report the result of
construction but also evaluate how employees in Hardline Sector satisfy with the
improvement of company about physical condition of the department. Moreover, the
evaluation should support for proving that replace or repair broken tools and equipment
is the good solution for company to decrease the high turnover rate in the sector.
5.2. Alternative solution 2: Fix the unreasonable shift hour.
The second alternative solution enhances the unreasonable shift hour is the main
mission of the Hardline Sector. To support for this solution, the sector also should divide
into three phases which are suitable for pre, during and post the process.
26
- In the first phase, evaluate by interview and survey how satisfaction of
employees in Hardline Sector about unreasonable shift hour.
- The next phase, establish and document the daily working hour of employees
which are suitable for working process of employees in Hardline Sector. Besides,
suggesting the software which can support for managing working time of
workers.
- In the final, report and re – evaluate how satisfaction of employees after applying
new working time through interview and survey by ordinal scale.
Phase 1: Evaluate how unreasonable shift hour of employees
By interview and survey, the Hardline Sector can know how satisfaction of
employees about shift hour. Moreover, this phase also helps the manager find out the
problem in the shift hour of general staff. It provides distinctly information to suggest
potential and suitable solution for this cause.
Phase 2: Suggest new daily working time.
To improve the shift hour for employees in Hardline, the manager should recheck
again about the daily working time recently. According to result of recheck, the
manager could arrange and manage daily working time of employees which is more
suitable for their health. However, the shift hour should be clear and independent of
other department and follow with strategies and policies of company.
Phase 3: Report and evaluate result of solution.
To have data to report about result of solution for upper level manager, the manager
of Hardline Sector should evaluate again about thinking of employees after applying
new shift hour. The manager could use both interview and survey which have support
for providing information and data about working time. Besides, the interview and
survey should include several questions which relate with physical and mental health,
productivity, satisfaction and so on from employees.
5.3. Alternative solution 3: Standardized processization
The third alternative solution is standardized processization. In this solution,
Hardline Sector should pay attention on creating the standard working process which
could support for making reasonable shift hour for employees. The solution should be
divided into two main phases:
27
Assign shift hour
Collect and analyze the
registering
Feedback with employees Arrange the working time
- Firstly, Hardline Sector should make a standard process which relate with
assigning shift hour for individual employee and do not overlap with others.
- Secondly, evaluate the processes by survey and interview to make it completely.
- Finally, reporting and enhancing the shift hour in current software to solve the
problem in sector.
Phase 1: Making a standard working process
In this phase, Hardline Sector should create the standard processes which include
assigning shift hour process and working process for general staff. Besides, the Hardline
Sector should suggest the processes and combine with both survey and interview to
complete processes. In the registering shift hour process, the manager should give the
employees opportunity make it actively by online form as google form. The employees
can arrange and balance their personal time with working time to not lead to main cause.
Moreover, the manager also is supported for managing the working time of employees
conveniently. After receiving the registering form, the manager could arrange and
analyze to make a reasonable shift hour for employees. It could be summarized by
below process:
Figure 10. Registering shift hour process
Besides, the Hardline Sector also suggest the working process for general staff
who do sales person position because it is the main task of employees. It will help
employees have a standard to evaluate their working efficiency. In the suggesting
selling process, it has seven basic steps which are prospecting, pre – approach,
approach, presentation, handling objections, closing and follow – up. (19)
28
Figure 11. Selling process
Phase 2: Evaluate to complete the processes.
To make two processes below complete and suitable for situation in the Hardline
Sector, the company should have survey and interview to collect the opinions of
employees. According to data and result of interview, the manager could know mindset
of employees and reality situation to make the process become standardization.
Phase 3: Report and enhance the system
Recently, the company uses the SAP ERP which are System Application
Programming for managing the working time. Therefore, the manager should report to
upper level manager about current situation to enhance the software to correspond with
circumstance. By this system, the manager also has tools to monitor and control the
processes to work in the right way.
29
6. Action plan:
6.1. Action plan 1: Replace poor tools and equipment.
PHASE OBJECTIVES ACTIONS
RESPONSI-
BILITIES
TIME SCHEDULE
W1 W2 W3 W4 W5 W6
1. Recheck
office tools
and
equipment
Clarify, list and
count the number
of tools and
equipment.
Checking again all of tools and
equipment which are being stayed
and used by employees in the
Hardline sector.
Manager
Team Leader
Staff
Making report to ask for permission
about replacing the current situation Manager
of tools and equipment.
2. Evaluate to
complete the
processes.
Fining the potential
suppliers which
provide services for
replacing the poor
qualification tools
and equipment.
Based on data of supplier before of
company, choosing the suitable
suppliers which provide services
and products refer with current
situation at Hardline Sector.
Manager
Making report to ask approval from
upper level manager about solution.
30
After receiving the permission,
making contract with suppliers and
set the time to replace the broken
tools and equipment.
3. Control and
monitor
Controlling and monitoring
process of suppliers.
the
Manager
Making interview and short survey
4. Report and
evaluate result
of solution.
Evaluate to know
how satisfaction of
employees after
replacing old
broken tools and
which have several questions relate
with health, thinking, and so on of
employees after replacing the poor
qualification tools and equipment.
Manager
Team Leader
Staff
Reporting to upper level about result
equipment. of solution bases on result of Manager
interview and survey.
31
6.2. Action plan 2: Fix unreasonable shift hour
PHASE OBJECTIVES ACTIONS
RESPONSI-
BILITIES
TIME SCHEDULE
W9 W10 W11 W12 W13 W14 W15 W16
1. Evaluate
how
unreasonable
shift hour of
employees
Evaluate
thinking and
feeling of
employees
about current
shift hour at
Hardline Sector
Making short survey and in –
dept interview which have
content relate with shift hour of
employees.
Manager
Team Leader
Staff
Collect the data and result of
interview to check and find main
problems of unreasonable shift
hour from current daily working
schedule.
Manager
Team Leader
2. Suggest
new daily
working time
By previous
result of
interview and
survey,
suggesting new
daily working
Checking again about policy of
company about shift hour for
general staff to make sure new
daily working schedule which do
not affect to other sectors.
Manager
Suggesting new daily working
schedule which is able to adapt
32
schedule which
is reasonable.
all of conditions such as
expectations of employees and
policies of company about
working time.
Reporting to upper level manager
about recent situation of sector to
ask for allowance about solution.
3. Report and
evaluate
result of
solution.
Evaluating
again to know
how feeling or
thinking of
employees
after applying
new daily
working
schedule
Interview and survey again which
use score scale to evaluate how
satisfaction of employees about
their new working time.
Manager
Team Leader
Staff
Reporting to upper level about
result of solution bases on result
of interview and survey.
Manager
33
6.3. Action plan 3: Standardized processization
PHASE OBJECTIVES ACTIONS
RESPONSI-
BILITIES
TIME SCHEDULE
W17 W18 W19
1. Making a
standard
working
process
Making the
standardization process
about registering shift
hour process and selling
process.
Making the registering shift hour process. Manager
Suggesting the general working process
for general staff
Manager
2. Evaluate to
complete the
processes.
Evaluate to make the
process complete and
suitable for specific
working ddescription of
general staff
Making the survey and interview the
general staff to collect data and result
from interview to complete the processes.
Manager
Team Leader
General Staff
3. Report and
enhance the
system
Enhancing the system to
manage conveniently.
Reporting to have data and principle to
enhance the system to correspond with
recent situation in the Hardline Sector
Manager
34
7. Supporting information:
7.1. Interviewee’s Demographic:
No Name Gender Position
Working
experience
(year)
Working
experience
at
Hardline
Interview
date
Place of
interview
1 Nguyen Thanh Trieu Male Hardline Manager 5 2 Mar-2019 Hardline
2 La Thuc Trinh Female
Hardline’s current
Division sales leader
3 3 Mar-2019 Hardline
3 Le Yen Ngoc Female Staff at Home Fashion 2 1 Mar-2019 Hardline
4 Tran Cong Tuan Male Staff at Home Center 2.5 2.5 Mar-2019 Hardline
5 Tran Minh Tuan Male Staff at Home Fashion 1.5 1.5 Mar-2019 Hardline
7.2. Interview guide:
Introduction
- Greeting and introduction.
- Describe reason and purpose of the interview.
- Job title, job description of individual interviewee.
Warm – up question
- What is your name and position?
- How long have you been working here?
Main body of interview
- What do you think about working environment here?
- What do you think about training program in Aeon Mall Celedon Tan Phu?
- Do you intend to work here for a long time?
- What do you expect from Aeon Mall to improve your working life?
35
REFERENCES
1. Network E-VB. Vietnam’s distribution and retail channels report. 2018.
2. Van H. High staff turnover a challenge in retail: Vietnam Economic Times; 2017
[Available from: http://vneconomictimes.com:8081/article/vietnam-today/high-staff-
turnover-a-challenge-in-retail.
3. Dr. Adnan Iqbal PSU, Riyadh, Saudi Arabia. Employee Turnover: Causes,
Consequences and Retention Strategies in the Saudi Organizations. 2010.
4. Iqtidar AS, Zainab F, Shakil AM, Khalid Z. Measuring push, pull and personal
factors affecting turnover intention: A case of University teachers in Pakistan. Review
of Economic & Business Studies. 2010;3(1):25.
5. Hammerberg JH. Reasons given for employee turnover in a full priced
department store. 2002.
6. Mohamad SF. Effects of communication on turnover intention: A case of hotel
employees in Malaysia: Iowa State University; 2008.
7. Oludeyi OS. A Review of Literature on Work Environment and Work
Commitment: Implication for Future Research in Citadels of Learning. 2015.
8. Retail faces high employee turnover 2017 [cited 2019 23 March]. Available
from: https://vietnamnews.vn/economy/405397/retail-faces-high-employee-
turnover.html#fKr6FH6bLHJiWIl8.97.
9. Ahmed Z, Sabir S, Khosa M, Ahmad I, Bilal MA. Impact of Employee Turnover
on Organisational Effectiveness in Tele Communication Sector of Pakistan. Journal of
Business and Management. 2016;18(11):12.
10. Agbozo GK, Owusu IS, Hoedoafia MA, Atakorah YB. The effect of work
environment on job satisfaction: Evidence from the Banking Sector in Ghana. Journal
of Human Resource Management. 2017;5(1):6.
11. Aziri B. Job satisfaction: A literature review. Management research and practice.
2011;3(4):9.
12. MJ E, EU A, NM P. Impact of Workplace Environment on Health Workers.
2017.
13. Massoudi AH, Hamdi SSA. The Consequence of work environment on
Employees Productivity. Journal of Business and Management. 2017;19(1):7.
36
14. Aggarwal S, Devi A, Kaur D. Impact of Working Conditions on Employees
Performance. International Research Journal of Commernce Arts and Science.
2014;5(4).
15. Qureshi MI, Iftikhar M, Abbas SG, Hassan U, Khan K, Khalid Z. Relationship
Between Job Stress, Workload, Environment and Employees Turnover Intentions:
What We Know, What Should We Know. Word Applied Sciences Journal. 2013:7.
16. Msengeti DM, Obwogi DJ. Effects of Pay and Work Environment on Employee
Retention: A Study of Hotel Industry in Mombasa County. International Journal of
Scientific and Research Publications. 2015;5(4).
17. Elsbach kD, Pratt MG. The Physical Environment in Organizations. The
Academy of Management Annals. 2014:45.
18. Binczycki B, Lukasinki W. DETERMINANTS OF QUALITY OF WORK
CONDITIONS. 1st International conference on Quality of Life2016.
19. mbaskool.com. Selling process Marketing and Strategy Terms: mbaskool.com;
[Available from: https://www.mbaskool.com/business-concepts/marketing-and-
strategy-terms/2069-selling-process.html.
37
Appendix 1: Transcript summary
Q & A Coding Key quote
Q1. What is your name and positions?
1. Mr. Nguyen Thanh Trieu
2. Ms. La Thuc Trinh
3. Ms. Le Yen Ngoc
4. Mr. Tran Cong Tuan
5. Mr. Tran Minh Tuan
Hardline manager
Hardline's current Division sales
leader
Staff at Home Fashion
Staff at Home Center
Staff at Home Fashion
Job position
Q2. How long have you been working here?
- Mr. Trieu – 2 years
- Ms. Trinh – 3 years
- Ms. Yen Ngoc – 1 year
- Mr. Cong Tuan – 2.5 year
- Mr. Minh Tuan – 1.5 year
Employee tenure
Q3: What do you think about working environment
here?
 Mr Trieu: I worked nearly two years that I could
understand how the working environment in there. I - Working alone Poor working environment
38
think should focus on improving working
environment because it is very importance factor for
the current Hardline situation. Moreover, employees
need to work towards a common goal and ensure
they are responsible for the job of the whole team,
instead of working alone and taking personal
responsibility.
 Ms Trinh: Lack of team spirit is the biggest problem
and due to the lack of working environment among
teams, it makes internal work overloaded and a
change in job responsibilities between teams.
 Ms Yen Ngoc: The shift hours are unreasonable.
Sometimes I have to work over 8 hours a day. While
other day I only have to work around 6 or 7 hours.
 Mr Cong Tuan: I don’t know how to say. In my
position, ventilation system had trouble, but it did
not repair yet. I have to work in hot and
uncomfortable condition. Good machine will help
me to complete job task early. However, equipment
- Personal responsibility
- No teamwork
- Unreasonable shift hours.
- Bad ventilation system
- Broken equipment.
39
still has been broken and should be repaired soon. It
makes me spent more time to finish my job.
 Mr Minh Tuan: I feel very unhappy because of my
direct supervisors. In some situation, my direct
supervisor yelled and forced me work his own jobs.
Besides, he has treated unfairly and sometimes he
said with me in bad words. It made me feel very
stressful in my working time.
- Direct supervisors treat unfairly
Q4: What do you think about training program in Aeon
Mall Celedon Tan Phu?
 Mr Trieu: I work as manager of the company. I have
received training program both domestic and foreign
countries such as Japan, Hong Kong, China and so
on. Therefore, I feel very satisfied about the training
program of company.
 Ms Trinh: It’s ok with me. I have no idea about
training program of company.
 Ms Yen Ngoc: I felt very tired because I had to join
the training time before my shift. I made me have to
- Good training program.
- No idea about training program.
- Unreasonable training time
Training program
40
go to work early. After 2 hours in training, I did not
have enough power in next 8 hours to work. It
claimed that in that day I had to stay in company
around 10 hours.
 Mr Minh Tuan: I suggest that the company should
arrange the training time more reasonably. I fell
asleep while I joined training time because the
training time organized after my working time. I
could not remember any information about new
products.
 Mr Cong Tuan: General staff do not have any
training courses which can help them improve their
own skills such as sales, communication skills or
negotiation skills. They only have training course
about new products. It made myself feel
dissatisfaction because I expect to learn more new
things during my working time.
- Feel tired and lack of power to
work.
- Unreasonable training time.
- After work
- Supply more training course to
improve skills
41
Q5: Do you intend to work here for a long time?
 Mr Thieu: I love this culture, policies and working
environment in there. I have more opportunities to
learn new knowledge and skills through training
course in there. Compensation policy are good for
my family and myself. Therefore, I will work in there
for a long time.
 Ms Trinh: I like professional environment in there.
When I become a group leader after 1.5 years as
general staff. I feel very motivative and I know
clearly about my career path in the future.
 Ms Yen Ngoc: I feel unhappy and I am looking for a
job and have offer but I still waiting another.
 Mr Cong Tuan: I do not learn more new things or
skills after 2.5 years. I consider that I will quit my
job.
 Mr Minh Tuan: Everything is good to me. However,
I have to do military service in next month. So that I
- Good environment
- Long term working
- Clear career path.
- Feel motivative
- Unhappy
- Quit job.
- Join military
Working environment
Quit job because of
employee personal reason
42
have to quit my position even though I feel extremely
regretful.
Q6: What do you expect from Aeon Mall to improve
your working life?
 Mr Thieu: I have no idea. Because in my position I
feel very satisfy about benefit and compensation of
company.
 Ms Trinh: I hope that I will have more chance to
engage several training programs which provide
myself many opportunities to learn new things and
create new relationship.
 Ms Yen Ngoc: I expect that company should pay
more attention on feeling of general staff to know
current problem in our working place.
 Mr Cong Tuan: More training programs with
reasonable time for general staff because I also want
to develop my working skills which could support
for my career at Aeon Mall.
- Satisfaction about benefit and
compensation
- More training programs
- Pay attention on general staff
- More training programs.
- Working skills.
Working condition.
Training program.
43
 Mr Minh Tuan: I hope I will have opportunity to
back to work at Aeon Mall after finishing my
military time.
- Working again.

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Luận Văn Poor Working Nvironment In Hardline Sector At Aeon Mall Tan Phu Celedon

  • 1. 1 UNIVERSITY OF ECONOMICS HO CHI MINH CITY International School of Business Le Thi Kim Khang POOR WORKING ENVIRONMENT IN HARDLINE SECTOR AT AEON MALL TAN PHU CELEDON Tham Khảo Thêm Tài Liệu Tại Luanvanpanda Dịch Vụ Hỗ Trợ Viết Thuê Tiểu Luận, Báo Cáo, Khoá Luận, Luận Văn Zalo/Telegram Hỗ Trợ : 0932.091.562 MASTER OF BUSINESS ADMINISTRATION Ho Chi Minh City – Year 2022
  • 2. 2 UNIVERSITY OF ECONOMICS HO CHI MINH CITY International School of Business Le Thi Kim Khang POOR WORKING ENVIRONMENT IN HARDLINE SECTOR AT AEON MALL TAN PHU CELEDON MASTER OF BUSINESS ADMINISTRATION SUPERVISOR: DR. DOAN ANH TUAN Ho Chi Minh City – Year 2022
  • 3. 3 Table of Contents LIST OF FIGURE ..........................................................................................................5 LIST OF TABLE............................................................................................................6 EXECUTIVE SUMMARY............................................................................................7 1. COMPANY OVERVIEW ......................................................................................8 1.1. AEON GROUP AND AEON MALL VIETNAM...................................................................8 1.2. HARDLINE SECTOR............................................................................................................. 10 2. SYMPTOMS:........................................................................................................10 2.1. HIGH TURNOVER RATE...................................................................................................... 10 2.2. DECREASE SALES VOLUME.............................................................................................. 12 3. PROBLEM IDENTIFICATION:..........................................................................13 3.1. POTENTIAL PROBLEMS...................................................................................................... 13 Personal reasons....................................................................................................13 Direct supervisor:..................................................................................................14 Working environment ...........................................................................................14 Decrease in sales volume ......................................................................................15 3.2. VALIDATING PROBLEMS................................................................................................... 16 Managers’ perspectives.........................................................................................17 Employees’ perspectives:......................................................................................18 3.3. THE MAIN PROBLEM .......................................................................................................... 18 4. CAUSE VALIDATION:.......................................................................................19 4.1. POTENTIAL CAUSES............................................................................................................ 19 Poor qualification of tool & equipment ................................................................19 Bad ventilation system ..........................................................................................20 Unreasonable shift hour ........................................................................................20 4.2. VALIDATING CAUSES ........................................................................................................ 20 Poor qualification of tool and equipment..............................................................21 Unreasonable shift hour ........................................................................................21
  • 4. 4 Bad ventilation system ..........................................................................................21 5. ALTERNATIVE SOLUTIONS:...........................................................................22 5.1. ALTERNATIVE SOLUTION 1: REPLACE POOR QUALIFICATION TOOLS AND EQUIPMENT......................................................................................................................................... 23 Phase 1: Recheck office tools and equipment.......................................................23 Phase 2: Finding the potential suppliers................................................................23 Phase 3: Control and monitor................................................................................25 Phase 4: Report and evaluate result of solution. ...................................................25 5.2. ALTERNATIVE SOLUTION 2: FIX THE UNREASONABLE SHIFT HOUR .................. 25 Phase 1: Evaluate how unreasonable shift hour of employees .............................26 Phase 2: Suggest new daily working time.............................................................26 Phase 3: Report and evaluate result of solution. ...................................................26 5.3. ALTERNATIVE SOLUTION 3: STANDARDIZED PROCESSIZATION.......................... 26 Phase 1: Making a standard working process .......................................................27 Phase 2: Evaluate to complete the processes ........................................................28 Phase 3: Report and enhance the system...............................................................28 6. ACTION PLAN: ...................................................................................................29 6.1. ACTION PLAN 1: REPLACE POOR TOOLS AND EQUIPMENT.................................... 29 6.2. ACTION PLAN 2: FIX UNREASONABLE SHIFT HOUR................................................. 31 6.3. ACTION PLAN 3: STANDARDIZED PROCESSIZATION................................................ 33 1. Making a standard working process..................................................................33 7. SUPPORTING INFORMATION:........................................................................34 7.1. INTERVIEWEE’S DEMOGRAPHIC .................................................................................... 34 7.2. INTERVIEW GUIDE .............................................................................................................. 34 Introduction...........................................................................................................34 Warm – up question ..............................................................................................34 Main body of interview.........................................................................................34 REFERENCES .............................................................................................................35 APPENDIX 1: TRANSCRIPT SUMMARY ...............................................................37
  • 5. 5 List of figure Figure 1. Aeon Mall Tan Phu Celedon...........................................................................8 Figure 2. Basic principle of Aeon Mall ..........................................................................9 Figure 3. Hardline structure at Aeon Mall Celadon .....................................................10 Figure 4.The percentage of turnover rate in Hardline Sector in Aeon Mall Celedon in 2018 ..............................................................................................................................11 Figure 5. Sale volume of Hardline Sector in 2018 .......................................................12 Figure 6. Reasons of Turnover in Hardline Sector in 2018..........................................13 Figure 7. Initial Cause - effect map ..............................................................................16 Figure 8. Updated cause - effect map...........................................................................19 Figure 9. Final cause - effect map of Hardline Sector..................................................22 Figure 10. Registering shift hour process.....................................................................27 Figure 11. Selling process ............................................................................................28
  • 6. 6 List of table Table 1. The percentage of turnover rate of Hardline Sector in Aeon Mall Celedon Tan Phu in 2018...................................................................................................................11 Table 2. Potential suppliers ..........................................................................................25
  • 7. 7 Executive summary According to research report of EU – Vietnam Business Network (1), Vietnam’s retail industry is the prosperous market which attract many different domestic and international companies to invest and develop in there. However, the biggest challenge facing employers in this industry is the high turnover rate of employees, even turnover is an issue that both businesses and workers are not expecting. Ideally, Hai Van (2) reported, 20% of workers said that candidates’ did not have enough obligation and the high turnover rate are the biggest challenges, with 49 per cent claiming that candidates are easily effected when they have offers from another company. Today, AEON Group is one of the largest retail companies with impressive linkage scales and performance in Japan as well as in other countries. AEON Vietnam Co., Ltd. opened the first shopping center "AEON MALL Tan Phu Celadon" with the largest scale in Ho Chi Minh City on January 11, 2014. This shopping center will be the third country after Malaysia and China to mark AEON's emergence as a large-scale shopping mall. However, one of the most difficult challenges that AEON Tan Phu Celadon has to confront one of the hardest problems which are how to maintain a permanent human resource. Spending a lot of time and money training a quality team and keeping them motivated in a stressful working environment is not a simple challenge. In addition, talents are often attracted to some other attractive offers, along with better remuneration. This issue not only increases the personnel cost of the enterprise but also reduces the business efficiency and even leads to the lack of and weak personnel that can "destroy" the business. If this problem continues, it will adversely affect the business, as well as the image of the company. Therefore, it is necessary to analyze each influencing factor, assessing the risk of each of those factors to each employee, right from the time of recruitment to the appropriate and appropriate measures. Starting from the above, I decided to choose the topic “Poor working environment in Hardline Sector at Aeon Mall Tan Phu Celedon” which is topic for my thesis. Since then, propose some solutions to reduce poor working condition and improve the situation in Hardline Sector.
  • 8. 8 1. Company overview: 1.1. Aeon Group and Aeon Mall Vietnam: Aeon Group was established in 1758 in Japan. Aeon is one of the largest retail company and has 179 joint ventures in both domestic and oversea. Throughout its operation time, the AEON Group maintains an unwavering commitment to set "Customer First" consistently. The basic principle of AEON Group is towards a prosperous, stable and peaceful society through retailing. With that responsibility, AEON Group has gained the trust of customers as well as expanding business activities not only in Japan but also in other countries in Asia which are China, Vietnam, and so on for a long time. AEON officially started its operations in Vietnam in 2009 as a Representative Office from 01/12/2009 to 10/07/2012. In 07/10/2011, The company was approved by the People's Committee of Ho Chi Minh City, AEON Vietnam Co., Ltd was officially established, investing for construction, organization, management and business activities: Trade Center, General Department Store and Supermarket. This is considered the main business direction. In addition, AEON conducts other business activities related to import-export, trade and research. Figure 1. Aeon Mall Tan Phu Celedon
  • 9. 9 AEON MALL system in Vietnam includes AEON - Tan Phu Celadon Shopping Center in Ho Chi Minh City in 2014, AEON Shopping Center - Binh Duong Canary in Binh Duong, AEON - Long Bien Shopping Center in Hanoi in 2015 and AEON Shopping Center - Binh Tan District in Ho Chi Minh City in 2016. In 2019, Aeon Mall Vietnam plans to open new shopping center at Ha Dong of Hanoi. Basic principle of AEON:  "Peace": All AEON activities aim to pursue prosperity to create a stable peace.  "Human": AEON always respects and values human qualities and values, as well as strives to promote the building of close relationships in the same collective.  "Community": AEON is constantly devoted to contributing to creating the sustainable development of the community. Figure 2. Basic principle of Aeon Mall
  • 10. 10 1.2. Hardline sector: There are two basic forms of goods in a retail store of Aeon which are Hardline and Softline. If the term soft goods or Softline refers to merchandise that is literally “soft”, Hard goods or hardlines are goods that are “hard” to the touch. A department store or product line consisting primarily of goods such as household appliances, electronics, sporting goods, health care and beauty products or toys will be considered hard goods. In Aeon, hardline includes three divisions: Home Appliance – Multimedia, Home fashion – Household – DIY and Stationary – Sports – Bike. The numbers of employee are 78 people. Besides, in Hardline sector, it also has two levels of staff like other department which is front desk staff and managers. Figure 3. Hardline structure at Aeon Mall Celadon 2. Symptoms: 2.1. High turnover rate: During the working time and data of company in 2018, I realized that main symptoms of company are high turnover rate and decrease in sales volume. Turnover rate is one of the most important things which human resources need to pay more attention and manage it in suitable limitation. Nowadays, turnover likes phenomena
  • 11. 11 12 14.00% 10 12.00% 10.00% 8 8.00% 6 6.00% 4 4.00% 2 2.00% 0 0.00% 1 2 3 4 5 6 7 8 9 10 11 12 Number of employee quit their job Turnover rate especially in young people. Some of them think that they are so good to do their old work. Therefore, company or organization realizes that turnover is issue which can affect badly for finance, operation situation in one company or organization. According to define of Cambridge dictionary that turnover shows that the rate of people who work in specific company quite or change their jobs and replace by new employees. While Adams and Beehr (3) claimed that turnover likes cycle which the company always has to hire and train new employees who will instead of the old workers. Month 1 2 3 4 5 6 7 8 9 10 11 12 Headcount 76 78 74 76 75 74 75 73 78 74 74 75 Resigned 1 8 6 10 7 3 4 1 4 4 5 3 Turnover rate 1.32 % 10.26 % 8.11 % 13.16 % 9.33 % 4.05 % 5.33 % 1.37 % 5.13 % 5.41 % 6.76 % 4.00 % Table 1. The percentage of turnover rate of Hardline Sector in Aeon Mall Celedon Tan Phu in 2018 Figure 4.The percentage of turnover rate in Hardline Sector in Aeon Mall Celedon in 2018 According to below table and figure, the number of people change their own job were pretty high in during year. Although the rate declined in the end of the year, they still had affected badly for finance or operation situation of the company. In April,
  • 12. 12 the turnover was the highest among other months in one year which was 13,16%. While August was the month which had 1.37% employees who quite their job in 2018. 2.2. Decrease sales volume: Figure 5. Sale volume of Hardline Sector in 2018 According to figure above, sale volume of Hardline Sector in 2018 was not good and decearse from January to December which was from over 18 million VND to under 8 million VND. Moreover, the actual sales were lower than benchmarks which were set differently in each month. Besides, based on data in figure 5, from January to December, even though turnover rate in Hardline reduced, the numbers of sale were still pretty low and did not reach the target. Therefore, decreasing sales volume is another symptomd besides high turnover rate. All things considered, high turnover rate is a symptom which Aeon Mall Celedon Tan Phu should be investigated main problems and found out potential solutions to Sale volume of Hardline in 2018 20,000,000,000.00 18,000,000,000.00 16,000,000,000.00 14,000,000,000.00 12,000,000,000.00 10,000,000,000.00 8,000,000,000.00 6,000,000,000.00 4,000,000,000.00 2,000,000,000.00 - 1 2 3 4 Sale volume 5 6 7 8 9 10 11 12 Target sale volume
  • 13. 13 solve this symptom. Because this symptom not only affected operation process but also made profit run down. 3. Problem identification: 3.1. Potential problems: According to data of employee engagement survey and in – depth interview about what factors effect turnover decision of employees in Hardline sector, several potential problems are listed below: Personal reasons: Personal reasons defined as several causes relate to health, family issues, education conditions of children and social status which can lead to turnover of employee in individual organization (4) . Aeon Mall Celedon Tan Phu also faced to this situation when the front desk officers of Hardline Sector decided to quit their position because of personal reasons such as joining military, studying, working location and so on. Besides, employees in there also quit their jobs because of finding new job. Personal reasons also showed ability to adapt with new working conditions if employees cannot fit with this environment, they will easily to turnover (5). Therefore, during the probation, several workers could not pass and go on their position. Figure 6. Reasons of Turnover in Hardline Sector in 2018 As a figure 6, family reason, studying, new job, personal reason and health are the most reasons which almost employee turnover reported to Human Resource Reasons of turnover in Hardline Sector in 2018 18 16 14 12 10 8 6 4 2 0 Personal Studying Family Health Location New job Discipline Military Probation reason reason service
  • 14. 14 Department why they wanted to change their job. Family reason was reason which was chosen 17 people when they quit. Besides, studying was reason of 7 people because front desk staff was recruited from above 18 years old. Therefore, some of them would have aspired to continue their study path for reach higher degree. While health problems were pretty high which was around 7 persons to choose this reason. Health issues were able to relate with workload and shift which were not suitable for themselves. The employees had to work extra time in weekend especially in the holiday. Besides, shift hour of the workers did not reasonable. Sometimes, they would work in six or eight hours which was not consistency. To sum up, personal reasons are one of the simplest reasons which most of employees easily choose to quit their job. Besides, personal reasons are from their internal thinking. Therefore, organization gets hard to manage the issues and only control it as minimize as possibly. Direct supervisor: Communication is an important skill which can support and remain good relationship between managers and employees. It is preliminary factor to affect an ability to employee turnover (6). Hardline Sector also faced to several problems which related directly to lack of communication skills. Employees in there felt not respect and dissatisfied because of their direct supervisor who lack of communication skills. In this sector, managers sometimes did not have enough listening skill to know clearly about what employees need. Besides, during working time, managers vociferated and treated their own staff unfairly. Moreover, when mangers missed communication skills, they were able to make other people feel unrespected. Employees are from all of levels in company who always want to treat with all respect because they are deserve by all things they did for increasing profit for company (5). Because of these problems, they made employee turnover in Hardline sector. In short, ways of communication between direct supervisor and workers are one of the factors which affects employee retention in Hardline. Working environment: Working environment is sum of interaction relationship between employees and employers and the environment where workers work, including technology, people and
  • 15. 15 organizational environments (7). It means that working environment has an important role during working time of each employee in specific business. For this reason, when employees work in poor working environment, they will change their job easily. In fact, in Hardline sector of Aeon Mall Tan Phu Celedon has confront with several problems which exist from working condition. People in there claimed that they had to work in condition which had broken tool and equipment such as broken air – conditioners. Besides, in some case, they had to work overload in weekend especially in the holiday. Moreover, shift hour of front – desk staff in Hardline has not worked in the consistent schedule. Sometimes employees had to work in shift, which was 6 hours, other shift was 8 hours. It also is one of factors which make workers feel not uncomfortable in there working time. To sum up, working environment in Aeon Mall Tan Phu Celedon still has some weaknesses which make people feel dissatisfaction and want to quit their position. Decrease in sales volume Sales volume number of goods which was sold in operation process of company in a specific time. So that when sales volume decrease, it will become one of problems which the company should pay more attention and find out potential solutions. In Aeon Mall Tan Phu Celedon, Hardline sector has to face with decreasing in sales volume because of several problems. The first potential problem is from compensation policy of company. The front desk employees in there do not have their own KPIs which is known as key performance indicators. When employees do not have KPIs, they do not have for themselves target which can follow to reach and feel unmotivated to work. Besides, online shopping becomes one of the most trends which attracts customers to use it. Online shopping can help buyers save their time because of its convenience. Therefore, it is also other potential problems which affects badly on sales performance of company. Moreover, Aeon Mall is a new player in Vietnam retail marketing. This company only joins the market from 2014. Thus, the company is in a favorable situation in the market which other competitors such as BigC, Saigon Coopmart, Lotte Mart and so on. As a result, goods of Hardline sector cannot compete with others which company has to join the market from long time and has a strong position in mindset of consumers. Besides, when sales volume of Hardline are low, it also affects to employee
  • 16. 16 High job dissatisfaction Bad ventilation system Low competitivesness Do not have KPIs Decrease in sales volume Direct supervisor Feel unrespected Poor communication skills Poor working environment Unreasonable shift hour High turnover rate Poor qualification of tool & equipment Subjective employees reason performance. They might feel boring during their working time because of small number of customers who come and buy goods in this sector. Finally, it also becomes potential problem which influence indirectly on employee turnover situation in Hardline Sector of Aeon Mall Tan Phu Celedon. Figure 7. Initial Cause - effect map 3.2. Validating problems: In 2017, as reported by Navigos Group (8), several companies have to face with high number of employees who are willing to leave their position after working in one or two years in retail market. It means that high turnover rate is not only problem of individual organization but also issue of many businesses which join the Vietnam retail market recently. Because organization has to invest a lot of money for human resources to provide for employees many different things which are training, working process, making plan and so on to reach goal of company (9). Aeon Mall Tan Phu Celedon also confronts with this kind of situation in Hardline sector. According to data and result survey about how Hardline front staffs satisfy and reason to quit their jobs in Aeon Mall Tan Phu Celedon, some potential problems led to high turnover rate in Hardline sector which were personal reason, direct supervisor and working environment. The first reason is family reason, their home was far from workplace which was one of reasons. Secondly, almost front desk employees are students who just graduated from college or university, so that they could change the job when they found new job or want to go on
  • 17. 17 studying. In the next factor, health of their own workers is one of reason that they want to quite their job. They had to work overtime in the weekend and holiday. Moreover, the shift hour is not suitable for them. Several days, they had to work much more time than others. That was also reason which made unsatisfied and found another job. Besides, the workers did not receive respect from their direct supervisor. In addition, some communication skills of supervisors were not good enough to persuade employees. They recently shouted or forced employees work their own task which made people feel uncomfortable during working time. Especially, working environment is a factor that front – desk employees in Hardline Department felt dissatisfied to work in Aeon Mall Celadon. Several people did not have enough patient to work in probation time. Besides, when people had to work overtime and unsuitable jobs, employees would feel tired and want to quite the job. On the other hand, employees worked in the condition with broken equipment and tool which made people interrupt their working process. Therefore, working environment is considered as main problem which affect directly on employee turnover in Hardline sector. To confirm the importance of main problem, the further information which was collected by interviewing managers and employees in Hardline sector are summarized in below: Managers’ perspectives: Mr. Nguyen Thanh Trieu – Hardline Manager said that his focusing on improving working environment to improve on their business this is very importance factor for the current Hardline situation. Moreover, employees need to work towards a common goal and ensure they are responsible for the job of the whole team, instead of working alone and taking personal responsibility. Notably, if there is a problem in team, the team members responsible for solving those problems can ask other departments to coordinate and receive support to find a quick and accurate solution. In addition, Ms. La Thuc Trinh - Hardline's current Division sales leader also said that the lack of team spirit is the biggest problem and due to the lack of working environment among teams, it makes internal work overloaded and a change in job responsibilities between teams.
  • 18. 18 Employees’ perspectives: In the thinking of employees, working environment is one of the most important factors which people concern when they have desire to quite their job. Workplace condition can help people have the best situation to work and earn profit. According to interview of Ms Le Yen Ngoc, she mentioned that machines worked well, it could help the workers improve the productive in working process. Besides, she also hoped that company should have more policies which created more chance and good working condition for every worker especially front desk employee. Besides Mr Tran Cong Tuan thought that he felt uncomfortable because of his noisy co – workers. His colleagues usually talked loudly or ate in air condition room. While Mr Tran Minh Tuan loved to work in fresh, clean room. When they were interviewed about what should be changed to improve workplace in Aeon Mall, both of them had the same opinion about creating more opportunities for development in working condition. 3.3. The main problem: The influence of working environment has an important role to impact employee satisfaction in the company. Because workplace combines physical, psychological and social environment in a specific workplace (10). Besides, poor working environment can cause many different problems such as job dissatisfaction, poor productivity, health of workers and so on. When working environment needs to improve, the consequence claims that it will affect negatively on employee performance and lead to turnover and low profit situation. The first impact poor working environment is job satisfaction which is defined as how employees feel about their work in various aspect of jobs, so that job satisfaction and dissatisfaction appear easily in any circumstances during working time (11). Job satisfaction have an influence on the performance of employees in the organization. Moreover, environment in workplace also effect on the health of worker. Impact of working environment on the worker health, both of physical and social environment still have their own specific influence on the health of workers (12). In this research, health of employees not only is affected by lighting, ventilation systems and so on but also job stress, job position or KPIs of individual staff. It claims that working
  • 19. 19 environment is very important factor which should be concentrated during the operation process. In addition, environmental in workplace also effects on the productivity of workers during their working time. Productivity of employees who work in the company is effect by the overall working environment and proves that interrelationship between productivity and environmental in workplace (13). In the conclusion, working environment is very important because it is main problem which lead to high turnover rate and impact on the sales volume which are symptoms that the Aeon Mall Tan Phu Celedon has to face with in the Hardline sector. 4. Cause validation: 4.1. Potential causes: Based on the previous data from survey, result of in – depth interview and literature reviews, several potential causes of the main problem are identified in the below figure which is the updated cause- effect map of the department as follow: Figure 8. Updated cause - effect map Poor qualification of tool & equipment Tool and equipment are factors as machinery which belong to the working environment (10). It also affects directly or indirectly on the performance of employees if the qualification of these do not good enough to support operation process. Besides, some of tool and equipment in Hardline Sector face with broken situation which make people get hard during their work. Productivity of employees are also impacted by this Decrease in sales volume Poor employee performance High turnover rate Bad ventilation system Poor working environment Unreasonable shift hour Poor qualification of tool & equipment Poor productivity High job dissatisfaction Low worker health
  • 20. 20 problem. Therefore, poor qualification of tool and equipment are issues which Hardline Sector should pay more attention to improve the performance of employees. Bad ventilation system Ventilation system is another factor which relate with physical factors of working environment so that it is also issue which company should concern to improve and develop working condition for employees. Air and heating systems should check and repair regularly (14). However, ventilation system of Hardline Sector has to confront with several circumstance as non – working air – condition which affect negatively on health and working ability of people in the sector. Unreasonable shift hour The final issue impacts on performance and health of employees which make people want to quite their own job, is an unreasonable shift hour. It leads to workload situation because their working time are not consistent. Workload has a relationship with job stress and turnover (15). Besides, workload is able to affect health of workers. Therefore, unreasonable shift hour also is one of factors that Aeon Mall Tan Phu Celedon should consider providing good working condition for their own employees. 4.2. Validating causes: According to in – depth interview of employees in Hardline Sector, people have to confront with many different issues which relate with situation about poor working condition. Environment of workplace in individual organization includes physical factors which surround space of employees and psychological elements are able to effect performance of people who work in the company (16). In the Hardline Sector, employees in there has to face with several causes as poor qualification of tool & equipment, bad ventilation system and unreasonable shift hour which effect directly on working environment. According to Carnevale, physical environments in organizations include all of the material objects and stimuli such as buildings, equipment, lighting and air quality as well as how to arrange those objects and stimuli which are open-space office plans and flexible team work spaces that employees can encounter and interact with others in workplace (17). Thus, both poor qualification of tool & equipment and bad ventilation system belong to physical factors which impact directly on health and productivity of people who work in the company. Besides, bad working environment
  • 21. 21 not only physical objects but also other factors which relate to shift hour of workers. These poor qualify of conditions in workplace are able to lead employees to several negative results for themselves for example health conditions, stressful, overload and so on (18). Poor qualification of tool and equipment According to result of survey about employee engagement, it proved that employees had to face with trouble from broken tool and equipment which should be repaired early. However, this problem has not solved immediately. It pushes employees have work in poor condition without good equipment. Therefore, it is one of problems which affect directly on physical working environment. Unreasonable shift hour Besides, unreasonable shift hour is other potential cause which influence the central problem. It made employees feel unfair between themselves to others. In some situation, workers should start their shift at 8.30 am and end at 17.00pm. However, this schedule has not been the same as among employees. As Ms Le Yen Ngoc said that, she had to work at 8.30 am and her shift would end at 17.00 pm. While Ms Thanh Ngan who is her colleague, started her shift at 9:30 am and ended at 15:30 pm. Because of this situation, it also made people who work in the same shift will feel uncomfortable. Moreover, with this unreasonable shift hour, it also affected negatively on health of workers. In some working day, they had to work over 8 hours a day. Otherwise, they only worked around six or seven hours in their shift. They would get hard to arrange their personal schedule because of this shift plan. Bad ventilation system In addition, employees in Hardline sector also confront with bad ventilation system. In some places in store, the ventilation system had problem which air – conditioner did not work. It means that workers had to work in hot temperate. This circumstance could make employees feel uncomfortable in the working time. However, bad ventilation system also belongs to physical environment which relates to material that can support and improve the productivity of workers. When people work in good condition, they can focus their own mind on working process, and it will help to create high productivity. Mr Tran Cong Tuan shared that, in some hot day, he felt very terrible
  • 22. 22 when he had to work in hot and uncomfortable atmosphere because of broken ventilation system. In general, poor qualification tools & equipment and bad ventilation system are belonged to the physical factors of working environment. Therefore, the main causes lead to the high turnover rate and decrease in sales volume situation in the Hardline sector. Figure 9. Final cause - effect map of Hardline Sector 5. Alternative solutions: According to final cause – effect map, Hardline Sector of Aeon Mall Tan Phu Celedon has to face with two main causes which have a relationship with poor working environment. By these causes, employees in Hardline Sector have to face with several difficulties such as health, stress, productivity and so on. With poor qualification tools and equipment, Mr Cong Tuan said that with broken tools and equipment, he had to pay more time to complete his task. It means that workers waste more their time to finish their task because of bad tools and equipment. Besides, ventilation system also causes to some of disease as sore throat, dry skin, cold and flu. Therefore, the company should check and replace or repair tools and equipment to improve the working environment for employees in the Hardline Sector. Moreover, unreasonable shift hour is another issue of people who work in there. Ms Yen Ngoc told that the shift hours were unreasonable, and she had to work over 8 hours a day while other day I only have to work around 6 or 7 hours. By this shift hour, she might feel tired and could not have Validated problem Poor working environment Main causes Unreasonable shift hour Poor qualification of tool & equipment Consequences Job dissatisfaction Impact health of staffs Symptoms
  • 23. 23 enough health to do mission well. In general, shift hour also needs to enhance to adapt with necessary of jobs and be suitable for health of employees. In the conclusion, qualification of tools & equipment with unreasonable shift hours are two important causes which can impact negatively on employees. According to above parts of thesis, two alternative solution below are suggested to improve working conditions for people who work in Hardline at Aeon Mall Celedon Tan Phu. 5.1. Alternative solution 1: Replace poor qualification tools and equipment. In this alternative solution, check and replace or repair broken tool and equipment. However, Hardline Sector should divide into four phases to solve the problem about working ability of tools and equipment in the department. These phases are following in the below: - Firstly, Hardline Sector should focus on recheck the number of office equipment and make sure these have problem or not. - The second phases, the sector should find out the potential supplier that can supply good equipment with high qualify for the Aeon Mall. - In the next phases, Hardline Sector should control and monitor the items that the supplier has provided for company right or wrong with the proposal in previous phase. - Reporting is the final phases that Hardline should pay attention. In this phase, people can evaluate result of solution and how the solution improve the performance and productivity of employees. Phase 1: Recheck office tools and equipment In the first phase, recheck office tools and equipment is the necessary step for Hardline Sector to validate how many broken tools and equipment in the department. In addition to, this process also supports for Hardline Sector which can identify how much poor qualification tools and equipment should be improved. Besides, the manager has responsibility for rechecking and making list of tools and equipment which need to replace or repair in the Hardline Sector. Phase 2: Finding the potential suppliers. After making list of tools and equipment, the manager has to find and connect with potential supplier that Aeon Mall cooperated before as following table below:
  • 24. 24 No. Name of company Services/ Products Advantages 1 TOT Company Provided both services as consultancy, layout and design, implementations, installation and maintenances, spare parts, sales & servicing and several products such as supermarket gondola, check in counter, blast chillers, trolleys/shopping carts and so on - Vietnam company. - Provides variety services and products. - Located in Phu Nhuan District nearby Aeon Mall. - Cooperated with many famous retail brands as Aeon Mall, E- Mart, Co.opmart, Lotte Mart, and so on. 2 SEMBA Company Provided door pull handle, lever handle, push – pull handle, swing door lock, sliding door, door accessory, bathroom accessory, room accessories, kitchen series, furniture knob and hotel amenity. - Japanese company. - Have both Japanese and local staff. - Vietnam branch office at Binh Thanh District. - Provide many different services and products relate with commercial facility. 3 OKAMURA Company Main services are water treatment system, wastewater treatment system and disinfection system. - Two main business fields relate with wastewater system. - Japanese company has many branches in Japan, Vietnam and Thailand. - Located in District 2 which is far from company.
  • 25. 25 4 KAWAJUN Company The company provides consultant services; creating safe working environment; designing architecture, structure, M&E and BIM, construction and building care office services. - Provides services in hotel collection, medical facility equipment, interior hardware and so on. - Japanese company. - Branch office at District 1. Table 2. Potential suppliers According to above table, the manager can clarify and choose potential company which are suitable suppliers for this solution. In this phase, the manager is a direct person who connect with supplier and report with upper level manager to ask for permission. Phase 3: Control and monitor. During this phase, the supplier has taken a responsibility for providing right tools and equipment as the contract which was made in previous phase. While replacing or repairing the broken tools and equipment process, the manager should pay attention on controlling and monitoring construction of the supplier. In this phase, the manager could have fundamental to report with the upper level manager of Aeon Mall Tan Phu Celedon. Phase 4: Report and evaluate result of solution. In the final phase, the manager has liability to report and evaluate result of solution to the upper level manager. Besides, the manager not only report the result of construction but also evaluate how employees in Hardline Sector satisfy with the improvement of company about physical condition of the department. Moreover, the evaluation should support for proving that replace or repair broken tools and equipment is the good solution for company to decrease the high turnover rate in the sector. 5.2. Alternative solution 2: Fix the unreasonable shift hour. The second alternative solution enhances the unreasonable shift hour is the main mission of the Hardline Sector. To support for this solution, the sector also should divide into three phases which are suitable for pre, during and post the process.
  • 26. 26 - In the first phase, evaluate by interview and survey how satisfaction of employees in Hardline Sector about unreasonable shift hour. - The next phase, establish and document the daily working hour of employees which are suitable for working process of employees in Hardline Sector. Besides, suggesting the software which can support for managing working time of workers. - In the final, report and re – evaluate how satisfaction of employees after applying new working time through interview and survey by ordinal scale. Phase 1: Evaluate how unreasonable shift hour of employees By interview and survey, the Hardline Sector can know how satisfaction of employees about shift hour. Moreover, this phase also helps the manager find out the problem in the shift hour of general staff. It provides distinctly information to suggest potential and suitable solution for this cause. Phase 2: Suggest new daily working time. To improve the shift hour for employees in Hardline, the manager should recheck again about the daily working time recently. According to result of recheck, the manager could arrange and manage daily working time of employees which is more suitable for their health. However, the shift hour should be clear and independent of other department and follow with strategies and policies of company. Phase 3: Report and evaluate result of solution. To have data to report about result of solution for upper level manager, the manager of Hardline Sector should evaluate again about thinking of employees after applying new shift hour. The manager could use both interview and survey which have support for providing information and data about working time. Besides, the interview and survey should include several questions which relate with physical and mental health, productivity, satisfaction and so on from employees. 5.3. Alternative solution 3: Standardized processization The third alternative solution is standardized processization. In this solution, Hardline Sector should pay attention on creating the standard working process which could support for making reasonable shift hour for employees. The solution should be divided into two main phases:
  • 27. 27 Assign shift hour Collect and analyze the registering Feedback with employees Arrange the working time - Firstly, Hardline Sector should make a standard process which relate with assigning shift hour for individual employee and do not overlap with others. - Secondly, evaluate the processes by survey and interview to make it completely. - Finally, reporting and enhancing the shift hour in current software to solve the problem in sector. Phase 1: Making a standard working process In this phase, Hardline Sector should create the standard processes which include assigning shift hour process and working process for general staff. Besides, the Hardline Sector should suggest the processes and combine with both survey and interview to complete processes. In the registering shift hour process, the manager should give the employees opportunity make it actively by online form as google form. The employees can arrange and balance their personal time with working time to not lead to main cause. Moreover, the manager also is supported for managing the working time of employees conveniently. After receiving the registering form, the manager could arrange and analyze to make a reasonable shift hour for employees. It could be summarized by below process: Figure 10. Registering shift hour process Besides, the Hardline Sector also suggest the working process for general staff who do sales person position because it is the main task of employees. It will help employees have a standard to evaluate their working efficiency. In the suggesting selling process, it has seven basic steps which are prospecting, pre – approach, approach, presentation, handling objections, closing and follow – up. (19)
  • 28. 28 Figure 11. Selling process Phase 2: Evaluate to complete the processes. To make two processes below complete and suitable for situation in the Hardline Sector, the company should have survey and interview to collect the opinions of employees. According to data and result of interview, the manager could know mindset of employees and reality situation to make the process become standardization. Phase 3: Report and enhance the system Recently, the company uses the SAP ERP which are System Application Programming for managing the working time. Therefore, the manager should report to upper level manager about current situation to enhance the software to correspond with circumstance. By this system, the manager also has tools to monitor and control the processes to work in the right way.
  • 29. 29 6. Action plan: 6.1. Action plan 1: Replace poor tools and equipment. PHASE OBJECTIVES ACTIONS RESPONSI- BILITIES TIME SCHEDULE W1 W2 W3 W4 W5 W6 1. Recheck office tools and equipment Clarify, list and count the number of tools and equipment. Checking again all of tools and equipment which are being stayed and used by employees in the Hardline sector. Manager Team Leader Staff Making report to ask for permission about replacing the current situation Manager of tools and equipment. 2. Evaluate to complete the processes. Fining the potential suppliers which provide services for replacing the poor qualification tools and equipment. Based on data of supplier before of company, choosing the suitable suppliers which provide services and products refer with current situation at Hardline Sector. Manager Making report to ask approval from upper level manager about solution.
  • 30. 30 After receiving the permission, making contract with suppliers and set the time to replace the broken tools and equipment. 3. Control and monitor Controlling and monitoring process of suppliers. the Manager Making interview and short survey 4. Report and evaluate result of solution. Evaluate to know how satisfaction of employees after replacing old broken tools and which have several questions relate with health, thinking, and so on of employees after replacing the poor qualification tools and equipment. Manager Team Leader Staff Reporting to upper level about result equipment. of solution bases on result of Manager interview and survey.
  • 31. 31 6.2. Action plan 2: Fix unreasonable shift hour PHASE OBJECTIVES ACTIONS RESPONSI- BILITIES TIME SCHEDULE W9 W10 W11 W12 W13 W14 W15 W16 1. Evaluate how unreasonable shift hour of employees Evaluate thinking and feeling of employees about current shift hour at Hardline Sector Making short survey and in – dept interview which have content relate with shift hour of employees. Manager Team Leader Staff Collect the data and result of interview to check and find main problems of unreasonable shift hour from current daily working schedule. Manager Team Leader 2. Suggest new daily working time By previous result of interview and survey, suggesting new daily working Checking again about policy of company about shift hour for general staff to make sure new daily working schedule which do not affect to other sectors. Manager Suggesting new daily working schedule which is able to adapt
  • 32. 32 schedule which is reasonable. all of conditions such as expectations of employees and policies of company about working time. Reporting to upper level manager about recent situation of sector to ask for allowance about solution. 3. Report and evaluate result of solution. Evaluating again to know how feeling or thinking of employees after applying new daily working schedule Interview and survey again which use score scale to evaluate how satisfaction of employees about their new working time. Manager Team Leader Staff Reporting to upper level about result of solution bases on result of interview and survey. Manager
  • 33. 33 6.3. Action plan 3: Standardized processization PHASE OBJECTIVES ACTIONS RESPONSI- BILITIES TIME SCHEDULE W17 W18 W19 1. Making a standard working process Making the standardization process about registering shift hour process and selling process. Making the registering shift hour process. Manager Suggesting the general working process for general staff Manager 2. Evaluate to complete the processes. Evaluate to make the process complete and suitable for specific working ddescription of general staff Making the survey and interview the general staff to collect data and result from interview to complete the processes. Manager Team Leader General Staff 3. Report and enhance the system Enhancing the system to manage conveniently. Reporting to have data and principle to enhance the system to correspond with recent situation in the Hardline Sector Manager
  • 34. 34 7. Supporting information: 7.1. Interviewee’s Demographic: No Name Gender Position Working experience (year) Working experience at Hardline Interview date Place of interview 1 Nguyen Thanh Trieu Male Hardline Manager 5 2 Mar-2019 Hardline 2 La Thuc Trinh Female Hardline’s current Division sales leader 3 3 Mar-2019 Hardline 3 Le Yen Ngoc Female Staff at Home Fashion 2 1 Mar-2019 Hardline 4 Tran Cong Tuan Male Staff at Home Center 2.5 2.5 Mar-2019 Hardline 5 Tran Minh Tuan Male Staff at Home Fashion 1.5 1.5 Mar-2019 Hardline 7.2. Interview guide: Introduction - Greeting and introduction. - Describe reason and purpose of the interview. - Job title, job description of individual interviewee. Warm – up question - What is your name and position? - How long have you been working here? Main body of interview - What do you think about working environment here? - What do you think about training program in Aeon Mall Celedon Tan Phu? - Do you intend to work here for a long time? - What do you expect from Aeon Mall to improve your working life?
  • 35. 35 REFERENCES 1. Network E-VB. Vietnam’s distribution and retail channels report. 2018. 2. Van H. High staff turnover a challenge in retail: Vietnam Economic Times; 2017 [Available from: http://vneconomictimes.com:8081/article/vietnam-today/high-staff- turnover-a-challenge-in-retail. 3. Dr. Adnan Iqbal PSU, Riyadh, Saudi Arabia. Employee Turnover: Causes, Consequences and Retention Strategies in the Saudi Organizations. 2010. 4. Iqtidar AS, Zainab F, Shakil AM, Khalid Z. Measuring push, pull and personal factors affecting turnover intention: A case of University teachers in Pakistan. Review of Economic & Business Studies. 2010;3(1):25. 5. Hammerberg JH. Reasons given for employee turnover in a full priced department store. 2002. 6. Mohamad SF. Effects of communication on turnover intention: A case of hotel employees in Malaysia: Iowa State University; 2008. 7. Oludeyi OS. A Review of Literature on Work Environment and Work Commitment: Implication for Future Research in Citadels of Learning. 2015. 8. Retail faces high employee turnover 2017 [cited 2019 23 March]. Available from: https://vietnamnews.vn/economy/405397/retail-faces-high-employee- turnover.html#fKr6FH6bLHJiWIl8.97. 9. Ahmed Z, Sabir S, Khosa M, Ahmad I, Bilal MA. Impact of Employee Turnover on Organisational Effectiveness in Tele Communication Sector of Pakistan. Journal of Business and Management. 2016;18(11):12. 10. Agbozo GK, Owusu IS, Hoedoafia MA, Atakorah YB. The effect of work environment on job satisfaction: Evidence from the Banking Sector in Ghana. Journal of Human Resource Management. 2017;5(1):6. 11. Aziri B. Job satisfaction: A literature review. Management research and practice. 2011;3(4):9. 12. MJ E, EU A, NM P. Impact of Workplace Environment on Health Workers. 2017. 13. Massoudi AH, Hamdi SSA. The Consequence of work environment on Employees Productivity. Journal of Business and Management. 2017;19(1):7.
  • 36. 36 14. Aggarwal S, Devi A, Kaur D. Impact of Working Conditions on Employees Performance. International Research Journal of Commernce Arts and Science. 2014;5(4). 15. Qureshi MI, Iftikhar M, Abbas SG, Hassan U, Khan K, Khalid Z. Relationship Between Job Stress, Workload, Environment and Employees Turnover Intentions: What We Know, What Should We Know. Word Applied Sciences Journal. 2013:7. 16. Msengeti DM, Obwogi DJ. Effects of Pay and Work Environment on Employee Retention: A Study of Hotel Industry in Mombasa County. International Journal of Scientific and Research Publications. 2015;5(4). 17. Elsbach kD, Pratt MG. The Physical Environment in Organizations. The Academy of Management Annals. 2014:45. 18. Binczycki B, Lukasinki W. DETERMINANTS OF QUALITY OF WORK CONDITIONS. 1st International conference on Quality of Life2016. 19. mbaskool.com. Selling process Marketing and Strategy Terms: mbaskool.com; [Available from: https://www.mbaskool.com/business-concepts/marketing-and- strategy-terms/2069-selling-process.html.
  • 37. 37 Appendix 1: Transcript summary Q & A Coding Key quote Q1. What is your name and positions? 1. Mr. Nguyen Thanh Trieu 2. Ms. La Thuc Trinh 3. Ms. Le Yen Ngoc 4. Mr. Tran Cong Tuan 5. Mr. Tran Minh Tuan Hardline manager Hardline's current Division sales leader Staff at Home Fashion Staff at Home Center Staff at Home Fashion Job position Q2. How long have you been working here? - Mr. Trieu – 2 years - Ms. Trinh – 3 years - Ms. Yen Ngoc – 1 year - Mr. Cong Tuan – 2.5 year - Mr. Minh Tuan – 1.5 year Employee tenure Q3: What do you think about working environment here?  Mr Trieu: I worked nearly two years that I could understand how the working environment in there. I - Working alone Poor working environment
  • 38. 38 think should focus on improving working environment because it is very importance factor for the current Hardline situation. Moreover, employees need to work towards a common goal and ensure they are responsible for the job of the whole team, instead of working alone and taking personal responsibility.  Ms Trinh: Lack of team spirit is the biggest problem and due to the lack of working environment among teams, it makes internal work overloaded and a change in job responsibilities between teams.  Ms Yen Ngoc: The shift hours are unreasonable. Sometimes I have to work over 8 hours a day. While other day I only have to work around 6 or 7 hours.  Mr Cong Tuan: I don’t know how to say. In my position, ventilation system had trouble, but it did not repair yet. I have to work in hot and uncomfortable condition. Good machine will help me to complete job task early. However, equipment - Personal responsibility - No teamwork - Unreasonable shift hours. - Bad ventilation system - Broken equipment.
  • 39. 39 still has been broken and should be repaired soon. It makes me spent more time to finish my job.  Mr Minh Tuan: I feel very unhappy because of my direct supervisors. In some situation, my direct supervisor yelled and forced me work his own jobs. Besides, he has treated unfairly and sometimes he said with me in bad words. It made me feel very stressful in my working time. - Direct supervisors treat unfairly Q4: What do you think about training program in Aeon Mall Celedon Tan Phu?  Mr Trieu: I work as manager of the company. I have received training program both domestic and foreign countries such as Japan, Hong Kong, China and so on. Therefore, I feel very satisfied about the training program of company.  Ms Trinh: It’s ok with me. I have no idea about training program of company.  Ms Yen Ngoc: I felt very tired because I had to join the training time before my shift. I made me have to - Good training program. - No idea about training program. - Unreasonable training time Training program
  • 40. 40 go to work early. After 2 hours in training, I did not have enough power in next 8 hours to work. It claimed that in that day I had to stay in company around 10 hours.  Mr Minh Tuan: I suggest that the company should arrange the training time more reasonably. I fell asleep while I joined training time because the training time organized after my working time. I could not remember any information about new products.  Mr Cong Tuan: General staff do not have any training courses which can help them improve their own skills such as sales, communication skills or negotiation skills. They only have training course about new products. It made myself feel dissatisfaction because I expect to learn more new things during my working time. - Feel tired and lack of power to work. - Unreasonable training time. - After work - Supply more training course to improve skills
  • 41. 41 Q5: Do you intend to work here for a long time?  Mr Thieu: I love this culture, policies and working environment in there. I have more opportunities to learn new knowledge and skills through training course in there. Compensation policy are good for my family and myself. Therefore, I will work in there for a long time.  Ms Trinh: I like professional environment in there. When I become a group leader after 1.5 years as general staff. I feel very motivative and I know clearly about my career path in the future.  Ms Yen Ngoc: I feel unhappy and I am looking for a job and have offer but I still waiting another.  Mr Cong Tuan: I do not learn more new things or skills after 2.5 years. I consider that I will quit my job.  Mr Minh Tuan: Everything is good to me. However, I have to do military service in next month. So that I - Good environment - Long term working - Clear career path. - Feel motivative - Unhappy - Quit job. - Join military Working environment Quit job because of employee personal reason
  • 42. 42 have to quit my position even though I feel extremely regretful. Q6: What do you expect from Aeon Mall to improve your working life?  Mr Thieu: I have no idea. Because in my position I feel very satisfy about benefit and compensation of company.  Ms Trinh: I hope that I will have more chance to engage several training programs which provide myself many opportunities to learn new things and create new relationship.  Ms Yen Ngoc: I expect that company should pay more attention on feeling of general staff to know current problem in our working place.  Mr Cong Tuan: More training programs with reasonable time for general staff because I also want to develop my working skills which could support for my career at Aeon Mall. - Satisfaction about benefit and compensation - More training programs - Pay attention on general staff - More training programs. - Working skills. Working condition. Training program.
  • 43. 43  Mr Minh Tuan: I hope I will have opportunity to back to work at Aeon Mall after finishing my military time. - Working again.