The poor motivation of store manager level at pizza hut vietnam

UNIVERSITY OF ECONOMICS HO CHI MINH CITY
International School of Business
-------------------------------

Dinh Viet Hien

THE POOR MOTIVATION OF STORE
MANAGER LEVEL AT PIZZA HUT
VIETNAM

MASTER OF BUSINESS ADMINISTRATION

Ho Chi Minh City - 2017


UNIVERSITY OF ECONOMICS HO CHI MINH CITY
International School of Business
-------------------------------

Dinh Viet Hien

THE POOR MOTIVATION OF STORE
MANAGER LEVEL AT PIZZA HUT
VIETNAM

MASTER OF BUSINESS ADMINISTRATION

SUPERVISOR: Dr. Nguyen Phong Nguyen

Ho Chi Minh City - 2017

SUPERVISOR’S REPORT ON THE THESIS PROPOSAL SUBMITTED
FOR DEGREE OF MASTER of BUSINESS ADMINISTRATION

The thesis proposal title: THE POOR MOTIVATION OF STORE MANAGER
LEVEL AT PIZZA HUT VIETNAM

Student Name: Dinh Viet Hien
Supervisor: Dr. Nguyen Phong Nguyen
1. General comments:
 Remarks on the student’s attitude:
……………………………………………………………………………
……………………………………………………………………………
 Remarks on the assignment’s academic quality:
……………………………………………………………………………
……………………………………………………………………………
2. Overall assessment:
 Meet requirement for submitting
 Not meet requirement for submitting
3. Other remarks:
 Did the student follow the report schedule?
 Yes

 No

 Other………………………….
 The Turnitin plagiarism percentage:
Supervisor’s signature

Table of Content

Executive Summary ......................................................................................................... 1
1. Background .................................................................................................................. 2
1.1. Company background ......................................................................................... 2
1.2. Symptom ............................................................................................................. 4
1.2.1. Symptom Analysis...................................................................................... 4
1.2.2. The Importance of Symptom ...................................................................... 6
1.3. Methodology ....................................................................................................... 8
1.3.1. Qualitative Research ................................................................................... 9
1.3.2. Quantitative Research ................................................................................. 9
1.4. Initial Cause – Effect Map ................................................................................ 10
1.5. Updated Cause – Effect Map ............................................................................ 14
1.6. Central Problem Validation .............................................................................. 18
2. Problem Justification ................................................................................................. 22
2.1. Problem Definition ............................................................................................ 22
2.2. Problem Existence............................................................................................. 22
2.3. Problem Importance .......................................................................................... 25
3. Causes Validation and Solutions ............................................................................... 26
3.1. The Real Causes of Central Problem List ......................................................... 26
3.2. Central Cause Validation .................................................................................. 27
3.3. The Set of Alternative Solutions ....................................................................... 30
3.3.1. The Frist Solution – Employee Recognition Workshop .......................... 30
3.3.2. The Second Solution – Recognition Gift Program................................... 33
Appendices .................................................................................................................... 36
References ..................................................................................................................... 52


Executive Summary
Employee’s turnover rate is one of business challenge in organizations. The high

turnover rate has negative impacts on business performance such as more expenses to
recruiting, increasing people cost, bad company reputation, reducing revenue as well
profit and so on. In Pizza Hut Vietnam (PHV), the turnover rate of store manager level
has increased significantly from 2014. This rate is non-stopped increasing with 17.2% at
June 2017 that is highest since PHV join to food and beverage market in Vietnam in
2007. This leads to PHV’s low performance in terms of key performance indicators in
consecutive three year such as decreased balance score card, unstandardized customer
satisfaction and increased people cost for recruiting and training. Through this research,
some potential problems of turnover rate were pointed out such as uncompetitive
compensation package, unavailable career development opportunity, job stress and poor
leadership. One of these potential problems is poor job motivation that has been argued as
a central problem of high turnover rate at store manager level at Pizza Hut Vietnam Ltd.,
Poor job motivation in this researcher is presented in terms of ineffective supporting and
coaching as well as weak recognition and poor communication. The importance of job
motivation improvement also demonstrated through exploring its consequences to
individual and organizational performance.

1|Page


1. Background
1.1. Company background
Pizza Hut is one of brand franchising from American YUM! Brand. It is the best
restaurant chain with numbers of stores as well as sales revenue on over the world. Pizza
Hut is well-known with traditional pizzas following American style along with auxiliary
products as pasta, fired chicken wing and so on to serve diversified customer’s needs.
Besides, Pizza Hut has been operated by standardized policies and procedures to maintain
high quality of products and service. Vietnam’s economy has grown rapidly since the
country has implemented the market economy and the opening-up policy. In alignment
with globalization and internationalization, social conditions also have some changes.

One of these changes is Vietnamese’s eating habits. With the entrance and dramatic
development of Western style fast food in Vietnam, local Vietnamese have more choice
for eating out. It’s a fact that Vietnamese, nowadays, have a tendency for gathering and
eating out together. With a large and young population (Figure 1), Vietnam is perceived
as a potential market for restaurant business developers. Brands such as KFC, Pizza Hut,
Lotteria, and Jollibee have been pioneers in the Vietnamese market. Pizza Hut developed
in Vietnam by International Food & Beverage Holdings (Vietnam) and Jardine Restaurant
Group – JRG (Hong Kong) in 2007 as one of franchises from Yum! Brands, Inc.
(Figure 1: Large Youthful Population, Vietnam Population Organization, 2016)

Large Youthful Population
19.0%
16.3%

16.4%

16.3%

13.2%
10.2%

4.8%

00-09
years

10-19
years

20-29

years

30-39
years

40-49
years

50-59
years

60-69
years

3.8%

70+
years

2|Page


This is the world’s largest restaurant company in terms of system restaurants with
over thirty nine thousand restaurants in more than one hundreds thirty countries and
territories. The Company's restaurant brands – KFC, Pizza Hut and Taco Bell - are the
global leaders of the chicken, pizza and Mexican-style food categories. In January 2011,
JRG has taken ownership and fully operated PHV. With its strong brand and powerful
financial capability, PHV has been leading the pizza market segment in the domestic fast
food market (Figure 2). In December 2014, the chain has had totally fifty stores in Hanoi,
Ho Chi Minh City and other provinces. The Company’s vision is to be the leading pizza

restaurant chain in Vietnam offering the best pizza at affordable prices and great services
in a warm, friendly and comfortable environment. At the presence, Pizza Hut Vietnam
(PHV) located with more than 57 stores and more than 2,200 employees in nationwide.
(Figure 2: Pizza Hut Vietnam leads the CDR market in store count, APM PHV 2014)

3|Page


1.2. Symptom
1.2.1. Symptom Analysis
The employee’s turnover rate was defined as how many new employees were hired
to replace the resigned staff (1). According to this definition, turnover rate only was
counted when the replacement was successful due to hiring of new employees. Chikwe
(2) has another definition when employee’s turnover rate can be briefly described as how
fast the employers recruit and lose employees. However, the above definitions have not
yet reflected gap of numbers of resigned employees and to be hired new ones in case
replacement and resignation employees amount are not approximate.
Henry (3) defined the employee’s turnover rate to be the ratio of the numbers of
organizational members who left during the period being considered divided by the
average numbers of people in that organization during the period. In practical, this rate is
calculated basing on different principles to serve business needs of each organization such
as voluntary turnover, involuntary, retirement, internal transfers.
In PHV, the employee’s turnover rate has been calculated by the numbers of
resigned employees who had the employment length at least seven days from on boarding
date divided to total of employees in the same a period and level.
𝐸𝑚𝑝𝑙𝑜𝑦𝑒𝑒 ′ 𝑠 𝑡𝑢𝑟𝑛𝑜𝑣𝑒 𝑟𝑎𝑡𝑒 =

A (Numbers of resigned employees)
B (Total of employees)

Including:
A = Leaving date – Service started date +1 (It is only counted when it is great than or
equal to seven days)
B = Total of employees at times the turnover rate to be calculated
From 2014, PHV has faced with the high turnover rate of store managers. The
PHV’s headcount report showed that the turnover rate of store managers have increased
from 18.4% of 2014 to 27.5% of 2016 and 17.2% of June 2017.

4|Page


PHV Turnover Rate
71.9%
64.6%

61.9%

31.2%
27.5%

24.6%
18.4%

17.2%

2014

2015

2016

Store Manager

Jun-17

Team Member

PHV

Turnover Rate Comparation - Store Manager Level
27.5%
24.6%

20.6%

19.8%

18.4%
15.2%

14.8%

Pizza Hut
Starbuck
The Pizza Company

6.8%

2014

7.1%

2015

2016

This report also analyzed about this rate and only focuses on store managers who
have from four years working experience in PHV. They have much experience not only
technical skills but also management skills to operate stores in order to achieve sales
targets. With current career roadmap in PHV, a store manager spends at least 05 years to
perform well and to be promoted to store manager (from entry level as team member to
store manager). Therefore, PHV expenses many investments to develop store managers
who have full capability to handle all tasks in store.
On other hand, store managers in PHV were approached by competitors. Through
the exit interviews and surveys to be conducted by the HR Department, these reports
5|Page


showed that almost the store managers who left PHV and joined competitors. 36.17% of
the resigned store managers have worked for direct competitors (Direct competitors are
defined as brands have the same products and service with Pizza Hut as The Pizza
Company, Domino, Pizza 4P, Al-Freshco…). 51.06% have worked for indirect
competitors (Indirect competitors are defined as brands run business in Food & Beverage
industry such as KFC, Lotteria, Jolibee, Mc.Donald, Circle K, Family Mart…).
1.2.2. The Importance of Symptom
The negative impacts of the high turnover rate are reflected by key performance
indicators from 2015 to 2017 such as CER, CMS, GES and BSC.
94% 92%

Standard - 100%

89%

89%
80%

85%
75%
68%

72%
62%

62%

65%

2015
2016
2017

CER

CMS

GES

BSC

 CER – Champs Excellent Review: This is standard about compliance with daily
product process in store.

 CMS – Champs Management System: This is standard to control and maintain
entire system in store such as machine, warehouse, and facility.
 GES – Guest Experience Survey: This is standard about customer service to be
surveyed by unnamed customer to experience service in store and evaluate.
 BSC – Balance Score Card: This is standard about sales and profit in store basing
calculates revenue, cost and other expense.

6|Page


 Recruiting and Training Expense: This is cost to be spent for recruiting as well as
training process such as job posting, headhunt service, training coast and other
expenses.
Additionally, the numbers of employees at each store is not equal to norm to
ensure enough staff in a shift. This leads to each employee must work over time more and
increase people cost.
57

55
51

48

43
37
Number of store manager
Number of store

2015

2016

2017

7000

$600,000,000

6000

$500,000,000

5000
$400,000,000
4000
$300,000,000
3000
$200,000,000

Number of overtime
working hour
Overtime working
payment

2000
$100,000,000

1000
0

$Jun-17

2016

2015

Store managers take responsibility to control these key performance indicators in
line targets. These indicators reflect the performance of store. Therefore, to achieve these
7|Page


targets requires store managers to spend time, capability to operate effectively. To meet
sales targets, store managers have acted as an important role to achieve the best
performances through delivering good products and customer services. They take
responsibilities of sales increasing, people cost controlling. One of characteristics of job is
to serve customers day-by-day even weekend and holidays. Therefore, store managers
usually have to face with pressure of working time arrangement in order to either gain
objectives or spend time for their personal life. Over-time working happens frequently
during marketing campaigns period when people are under various pressure (e.g. they
must run with maximized capability to attract customers for competition such as local
store marketing, trade zone activations and so on). These activities are going on
continuously. Additionally, management level also control quality of products which is
complied strictly with legal policies as food safety, stock management and discarded
process. These procedures are complicated and required them perform carefully. Only a
small mistake, it also makes them face with penalties. Besides, revenue is one of the
biggest challenges in daily operation. Target sales are planned with high level to not easy
achievement. They always find all ways to offer potential customers for revenue
increasing.
1.3. Methodology
There are two methods in this research to be qualitative and quantitative research.

The underlying research philosophy is also a key influence in the choice of research
method (4). Therefore, both methods are applied to ensure that this research reflects and
measures realistic information with research’s purpose. Qualitative research is primarily
exploratory research. It is used to gain an understanding of underlying reasons, opinions
and motivations (5). Additionally, it also provides insights of problems which are premise
to develop hypotheses for quantitative research. The questions in qualitative research
often begin with WHAT – WHY – HOW to help researcher find out a lot of information
to clarify research questions.

8|Page


1.3.1. Qualitative Research
The beginning of research, researcher uses qualitative research through interview
guide to make a framework for interview. The interview guide helps interview process
save time and explore necessary information completely. Therefore, the interview guide is
standard for consistency. The questions of interview guide are considered to reflect
closely for company’s situation. After that, researcher conducts in-depth interview with
four store manager who left in PHV. This is opportunity for researcher to ask deeper as
well as respondents feel comfortable to answer following their opinions. These feedbacks
are useful data to help researcher understand clearly about factors impact on turnover rate.
The four interviewees have length of service in PHV at least 6 years. They are
management level from 28 to 32 years old and join into PHV from staff level. The
questions in in-depth interview are focused on causes of resignation. In interview process,
researcher also asked further to understand deep into their opinions that avoid
misunderstanding and perceptional view of interviewer. All interviews are arranged and
share purpose of interview in advance.
However, questions are kept confidentially to ensure that no any preparations prior
to interview happen. They are objective and reliable information. During interview
process, questions along with answers are taken notes and write to transcripts to reflect

information completely and accurately. Consolidation of data through transcript helps to
analyze and classify information following research questions. This is quite important
because there are causes need to analyze carefully to avoid overlap. All causes are
classified as schemes to give out achievable recommendations.
1.3.2. Quantitative Research
After finding some main points about causes which impact on turnover rate, researcher
conducted quantitative research through a questionnaire to collect numerical data for
ranking the most significant those factors for solutions. Quantitative method is explaining
phenomena by collecting numerical data that are analyzed using mathematically based
methods in particular statistics (6). In this research, researcher used questionnaire as
popular and simple way to get numerical data from respondents. Each questionnaire
9|Page


PHV’s direct competitor, sales bonus is paid as percentage of level of target achievement.
Additionally, meal allowance is 18,000 VND per day which is too low with current living
expenses. The another reason is he worked as a store manager during five years from
2011 and he have no communication about his promotion at PHV and direct competitors
approached to offer higher job title as well as better compensation package. One more
reason of leaving, he lacks of timely coaching and supporting from line manager (Area
Coach) due to the far distance.
Ms. Trang and Ms. Anh also have same reasons with Mr. Thai. However, Ms.
Trang added further about her leaving reason when mentions to supervision skill. She
often has opposite views with line manager, when she strongly believes that she
understands clearly about her store’s situation to make decisions. Therefore, she did not
get supporting from line manager. She shared about bias management when line manager
evaluated her performance is level 3 of 5 (medium) in 2016 though her store met sales
target with 102%. Additionally, her line manager also changed directions continuously
which lets her cannot follow. Besides, Ms. Anh said about lack of recognitions from line
manager. When she gets targets which are required by line manager, almost she wasn’t

recognized timely even no recognition. She also share a sample that she received a
recognition card from line manager after the monthly management meeting without on
meeting which should to be acted to recognize her achievements.
Ms. Lien mentioned about heavy workload as one of her leaving reasons. She said
that her store is at mall, so sales volume depends on the numbers of customers in mall.
Sales revenue only increases at weekend or holiday while sales targets are high.
Therefore, she must face with shortage of employees to run store’s operation. She has to
in charge many tasks not only tasks of staff such as cleaning, serving but also take
accountability of manager’s role.
Five causes of high turnover rate are recorded through face to face interview with
four store managers consisting of (1) Uncompetitive monetary compensation is paid to
store managers in terms of low base salary and allowances, inadequate bonus and
incentive; (2) Heavy workload is one of pressures to let store managers feel stress and can
11 | P a g e


consists of 27 questions and to be applied the same to all respondents. It is useful to help
researcher collect data on large scale. The questionnaire is designed basing on findings
about factors which impact on employee’s motivation which was justified as central
problem of high turnover rate in PHV. The respondents will select level of agreement on
scale from 1 – strongly disagree to 5 – strongly agree. The sampling is selected following
purposive sampling to align the purpose of research. Purposive sampling is suitable in this
research because it is a non-probability sample that is selected based on characteristics of
a population and the objective of the study. Purposive sampling is also known as
judgmental, selective, or subjective sampling (7). For detail, the sampling is selected
following a homogeneous purposive sample. It is selected for having a shared
characteristic or set of characteristics. In this research, the sampling is store managers
who have highest position in store. Therefore, questionnaire is surveyed with fifteen store
managers who have same role and responsibilities with respondents of in-depth interview.
The data will be analyzed with average score for importance level ranking.

1.4. Initial Cause – Effect Map
To identify causes of this high turnover rate, the face to face interview is
conducted with four store managers who left PHV from 2015 to 2017.
No

Full Name

Age

Gender

Position

Store

Year of
Leaving

Length
of
Service

1

Quoc Thai

32 Male

Store Manager

PHV Can Tho

2017

9 years

2

Thuy Trang

28 Female

Store Manager

PHV Sky Garden

2017

6 years

3

Thuy Anh

29 Female

Store Manager

PHV Ngo Gia Tu

2016

8 years

4

Hong Lien

28 Female

Store Manager

PHV Maxi 3/2

2015

7 years

Mr. Thai said that about his reason of leaving low salary. He showed that salary of
same his position of competitors at Can Tho province is higher than around 20% of which
is paid in PHV. He also shared further that Balance Score Card (BSC) bonus and
incentives is not adequate with his achievements. For detail, sales bonus is paid as a fixed
amount when his store gets from 85% of sales target while at the Pizza Company that is
10 | P a g e


not cover in all tasks in daily operation. It comes from to shortage of staff and many tasks
in working shift; (3) Unavailable career development opportunities challenged retention
of store manager level in PHV. The limited higher positions as Area Coach have them
make leaving decision to seek better chances in their career development; (4) Lack of

recognition impacted on working motivation of store managers. They said that their
contributions are not recognized even though to be ignored by line managers; (5) Poor
supervision is also a factor to impact on turnover rate of store managers through
subjective performance appraisal, ineffective supporting, and poor communication. All
cause is reflected in initial cause – effect map as below.

12 | P a g e


Lower than
20% of
competitors

Low base salary
with
competitors

Fixed bonus

Inadequate
bonus and
incentives

The initial cause – effect map
Uncompetitive
monetary
compensation

Low meal
allowance

Limited budget
of labor cost

Shortage of
staff in shift
Heavy workload

Many technical
tasks in store
Many issues of
people
management
Lack of
communications
about career
path

Many tasks in a
working day

Unclear career
path
Limited higher
positions to
promote
Untimely
recognition
Weak
motivation

Poor
communication

Subjective
evaluation

Change
directions
cuntinuously

Difficulty to
follow up

Unavailable
career
development

HIGH
TURNOVER
RATE

Lack of
recognition
motivation

Poor
supervision skill
Ineffective
supports
Emotional

decisions

13 | P a g e


1.5. Updated Cause – Effect Map
However, if cause – effect map only bases on data from interview, there is no
overview all causes of turnover rate in PHV. That is reason why researcher inputs further
causes by reading studies, articles and researches to supplement and fulfill cause – effect
map. Through literature review, job stress is also mentioned as a more cause to impact on
turnover rate. This cause is a common one in F&B industry due to characteristics of
customer service. Therefore, researcher supplemented to the cause – effect map along
with causes which recorded in first face to face interview. Basing on the initial cause –
effect map and literature review, researcher conducted again interview to justify
information. The second interview was conducted with four store managers in first and
got further information as well as get confirmation from Deputy HR Manager in PHV for
final cause – effect map. After interview, researcher updated for the final cause – effect
map. The high turnover rate of store manager level in PHV comes from 04 main causes:
Uncompetitive Monetary Compensation – Monetary compensation has been
defined as a way cash or equivalent to pay employees for their service from employer.
Monetary rewards have negative effect on employee turnover. This reward helps to raise
job satisfaction and likewise suite for minimizing the intent to leave the job (8).
Additionally, monetary compensation has an important role to retain employees in
organization (9). Shamsuzzoha and Shumon (10) stated that low monetary compensation
is one of reason leaving of employees. It means that employees will consider leaving
current organization to move another with higher salary. Uncompetitive monetary
compensation in PHV is mentioned in terms of low base salary with competitors as well
as bonus and allowances scheme. Almost respondents acknowledged that they were paid
with inadequate compensation for their contributions while many competitors have
approached to attract them with better package.

Unavailable Career Development - Career development opportunity is defined in
terms of the movement of a person to higher level position in the organization where they
higher job title, salary and empowerment. Masdia (11) defined career development as
there assignment of an employee to a higher level job within an organization. When
14 | P a g e


employees perceive no growth for future or desire to advance within the organization,
they have no reason to remain in the current work situation. If employees are not properly
promoted, they will leave the organization (9). Currently, PHV built up a career road map
for Restaurants Division. This road map showed progress for promotion cases through
criteria to certify qualification of employees. It is also a tool to plan successor for
employee retention. However, it is effective with only team member level due to no
limitation of headcount for this level. At the same time, to promote from store manager
level to area coach level is very difficult. Total headcount for area coach level is only 09
in nationwide. Therefore, the promotion just happens when anyone leave for replacement
or business’s expansion.
Job stress – Job stress has become a major cause of turnover rate in the
organizations leading to loss of employees (12). Job stress is one of causes of the job
dissatisfaction and leads to high turnover rate. There are many causes of job stress as
heavy workload, unsafe working environment, and frequent overtime working...etc. From
an outcome perspective, the job stress produces behavioral outcomes that include
decreased performance or even withdraw behavior. The psychological outcomes result in
job burnout directly (12). The balance between work and life is another source of stress
reducing. Hsieh and Eggers (13) summarized the characteristics of hospitality work, such
as long working hours, shifts on weekend and stressful working condition (13). These
characteristics left hospitality employees limited time for other non-work related issues,
especially family activities. As a result, the imbalance between work and life created
negative issues, for instance, dissatisfaction with personal life, marriage and family. The
more the conflict exists, the higher the turnover rate will be (14). Such work-life conflict

was proven to be one reason for turnover. Heavy workload is another factor to increasing
job stress. In F&B industry, employees must face consequently heavy workload because
they must take caring standards, sales target, and customer satisfaction. Overloads in
workplace has been cited the main causes of job stress and let employees leave their job
(15). Workload has significant impact on the performance of employees. The heavy
workload extend low performance of employees, increasing job stress and burnout and
15 | P a g e


promote turnover rate (16). In PHV, store managers must work overtime frequently on
holiday, weekend at least 02 hours per normal working day and 03 hours in holiday. They
have not much time to spend to personal life and work under high pressure.
Poor Leadership skill - The coordination between managers or supervisors in
terms of leadership skill with their sub-ordinates may create impact on employee
turnover. It depends on the employee’s satisfaction with their supervisors and also the
communication skills of supervisors to handle their subordinates (9). Employees are
trusted in, empowered how they manage their own time and outputs and they have access
to parts of the business previously reserved for management such as strategic, tactical
information, and profit. Decision making is a collective and interactive exercise that
requires committed participation from both management and employee (17). This implies,
are interested in sharing of organizational decision making. Murthy underlined that
employees want an environment where they can take pride in what they are doing and
needs recognition as they are valuable for the organization (18). Leadership is a necessary
skill to inspire and lead employees to follow up objectives. A leader’s ability to influence
is based partly on his or her skill and partly on the motivation level of the individual
employee (19). In other words, motivation is either positively or negatively affected by
the experience an employee has within a given work environment and with his or her
leaders (20). In PHV, store managers are lack of communication between them and linemanager to sharing as well as get supporting when they face problems in daily operation.
Their line-managers change directions continuously that let them feel difficulty to follow.
Almost requirements from line-manager are not stable that store managers can plan well

for them. They must take time to think how to achieve requirements from line-managers
and then have to change to follow with new requirements. Additionally, their linemanagers seldom motivate as well as recognize when they get achievement. They lose
motivation to try more to get significant results. The final cause – effect map is completed
basing on analysis and justification data of literature review and interviews especially
combination weak motivation as cause of poor leadership skill.

16 | P a g e


The final cause – effect map
map

Low base salary
with competitors

Inadequate bonus
with performance
Uncompetitive
bonus and
allowances scheme

Uncompetitive
monetary
compensation

Low meal
allowance

Only 09 positions
of Area Coach

Limited higher
position to promote

Unavailable career
development

Shortage staff in
shift

High Turnover
Rate
Heavy workload

Too much overtime
working

Job stress

Weak motivation

Poor leadership
skill

Many tasks in
working day
Lack of recognition

Poor
communication

between supervisor
and staff
Ineffective
supporting and
coaching

17 | P a g e


1.6. Central Problem Validation
The final cause – effect map showed some potential problems which impact on
turnover rate of store manager level in PHV. However, the limited resources do not allow
solving all problems at the same time. Therefore, the selection of the most significant
problems is very necessary to ensure not only reducing turnover rate but also control
targets for performance management.
Uncompetitive monetary compensation – Researcher compared package
compensation of PHV with competitors and average of industry through salary survey to
have overview for this cause. Salary surveys showed that salary average of PHV is lower
than competitors. But it is not significant because almost store managers will consider
carefully many criteria as position title, job scope and total rewards that they have to
exchange when decide to move. According to annual The Global Salary Survey by Robert
Walter in 2017, the experienced candidates may get offers with salary increment about
25% when job jumping. Therefore, the salary gap of PHV with competitors is not worth
for their leaving decision.
25,000,000

20,000,000

Industry

15,000,000

Dunkin Donut
Baskin Robbin
10,000,000

The Pizza Company
Pizza Hut

5,000,000

2015

2016

2017

Additionally, total payment of store manager level as of June 2017 was compared
with previous years to show a whole picture for budget controlling. As of June 2017, this
payment amount was about 14.8% that higher than the same period of 2015 and 2016.
18 | P a g e


Besides, total payment of the first 06 months in 2017 accounted for 51% of total labor
budget. It means that budget is over with target. According to the statistic of Ministry of
Finance Vietnam, the inflation rate is around 4.15% of first 06 months in 2017. If there is
a comparison this inflation rate with salary increment rate of 2017 in PHV, the selection
of 5% will lead to over total budget which is planned at beginning of 2017. This is
challenge to propose as well as implement to solve this problem.

Unavailable career development – At PHV, career roadmap was built and applied
consistently for all models on over the world. Therefore, the headcount plan is planned
basing on model of store (Dine-in or Delivery service), cost of labor norm, sales target
and so on. An Area Coach must manage from 07 to 08 stores as standard. Currently, PHV
has around 55 stores in nationwide and 09 of Area Coach. Actually, an Area Coach only
takes responsibility about 06 stores. Therefore, to promote a Store Manger to Area Coach
19 | P a g e


needs expand business in next years. However, PHV has optimizing business
performance in terms of reducing costs and maximize profit after big investments in long
time since 2007. This is proved through narrow down number of stores from 57 of 2015
to 55 of 2017 and cost of labor decreasing from 14% to 12% in key performance
indicators.
Model
Dine - in Delivery
1
1
2
1
3
2
40 - 45
28 - 32

Headcount
Store Manager
Assistant Store Manager
Shift Leader
Team Member

Cost Item
COL
COS
COO
MCP

2015
15%
35%
16%
34%

2016
14%
32%
14%
40%

2017
12%
30%
14%
44%

Area
Coach

• Certified
Leading multi

Restaurants

Career Tracks
(Pizza Hut Dine-in)
Professional Program (Dine-in)
Kitchen

Service

• Part A: Safety
• Part B: Product
• Part C: Dough master

• Certified Leading A
Restaurant 2

RGM

• Part A: Safety
• Part B: Service
• Part C: Customer complaints handling

Sr. ARGM

• Certified Leading A Restaurant 1

ARGM

ARGM
Trainee

Shift
Leader
Shift
Leader
Trainee
Team
Member
3*
Team
Member
2*
Team
Member
1*
Career
Turn

• Certified Get Read to Lead
• Certified Train The Trainer
• Certified Leading A Shift

• Certified Part A and B and C of Kitchen and Service professional program
•Certified Service and Kitchen Professional review class
• Certified Part A and B and C of Kitchen or Service professional program
• Certified Service or Kitchen Professional review class

• Certified Part A of professional program
• Certified Part B or C of Kitchen or Service professional program
• Fully attending Orientation within 14 working days

• Certified Part A of professional program

Required Training
Note: This track indicates the various career moves regarding to Training requirement. Management approval is required for promotion case.

Job Stress – The final cause – effect map showed that heavy workload let store
managers have to work overtime frequently. They manage a lot of tasks in daily and have
no time to spend for personal life. This is difficult to change because it is characteristics
of Food and Beverage industry not only Pizza Hut but also other competitors. The time
20 | P a g e


management is a good tool to help them improve and arrange daily tasks but can not solve
comprehensively workload issues.
Poor Leadership Skill In Term of Poor Motivation – Through a survey is
conducted to assess satisfaction of store manager level. The survey measured 06 criteria
which researcher based on core values of operation culture at PHV to rank top issues that
store managers pay attention for action plan in order to improvement. Recognition and
Build Know How factor are recorded with lowest ranking. These criteria are showed in
terms of weak coaching and supporting from line managers, lack of motivation and
recognition, empowerment. The 78.6% of store managers acknowledged that they do not
get supporting as well as recognition timely. They have no many opportunities to discuss
and share difficulties in workplace. Their managers only manage on result-oriented than
coach how to deal with issues in operation process. Moreover, the improvement
leadership skill of store manager level is one of key performance indicators of Human
Resource Department in two years of 2017 and 2018. Additionally, the budget of
employee’s engagement activities and training workshop was approved in budget plan
and use not yet so far. All of these factors showed that the leadership improvement in
terms of strong motivation is an achievable method to help PHV reduce turnover rate of
store manager level. It is not mean that the solving of this problem can enhance

completely turnover rate in PHV. However, this problem is the most achievable method
in current context of PHV on sides of cost as well as human resource.

21 | P a g e