Management capability in van hung suan company

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

Nguyen Thi Duyen Anh

MANAGEMENT CAPABILITY
IN VAN HUNG XUAN COMPANY

MASTER OF BUSINESS ADMINISTRATION

Ho Chi Minh City – Year 2019



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

Nguyen Thi Duyen Anh
POOR MANAGEMENT CAPABILITY
IN VAN HUNG XUAN COMPANY

MASTER OF BUSINESS ADMINISTRATION

SUPERVISOR: Dr. Tran Phuong Thao

Ho Chi Minh City – Year of 2019

1

Table of Content
Order

Page
Executive summary

4

CHAPTER 1. PROBLEM IDENTIFICATION

5

1.1

Problem context

5

1.1.1

Introduction the company

5

1.1.2

Symptoms

6

1.2.

Problem analysist

8

1.2.1

Situation analysis

8

12.2

Initial Cause – Effect Map

17

1.2.3

Updated Cause – Effect Map

19

1.3.

Problem identification

22

1.3.1

Main problem validation

22

1.3.1.1

Lacking of human resource team

22

1.3.1.2

Poor management capability

23

1.3.1.3

Lack of sales and marketing team

24

1.3.2

Main problem validation

25

1.4.

Potential causes

27

1.4.

Consequence of Problem

27

1.4.1

The low job performance

27

1.4.2

Low productivity of employees

27

1.4.3

Reduce business growth

28

1.4.4

Final Cause – Effect Map

30

CHAPTER 2. ALTERNATIVE SOLUTIONS

30

2.1.

Cause Validation

30

2.1.1

Possible causes

30

2.1.1.1

Poor management skill

31

2.1.1.2

Lacking of business strategy

32

2


Define business component

33

2.2

Main cause

35

2.2.1

The Fish bone diagram

38

2.2.2

Define business strategy component

39

2.3

Alternative solution

39

2.3.1

Online Business Marketing

39

2.3.2

Services Diversification

41

2.3.3

Market Development

41

2.4

Solution selection

44

2.5

Action plan

45

CHAPTER 3. SUPPORTING INFORMATION

45

Appendix

45

Reference

64

3


Executive summary
Vietnam is a country that has gradually been drawing to foreign investors as one of
prospective destinations in Asian region. It is attracted for the young people who want to
start-up the company in the integrated phase. Van Hung Xuan company is established in
following towards the growth of industrialized and modernized country and it has been
improving to reach the achievement of the high performance. However, the most difficult
for young company as Van Hung Xuan has been facing in the case of employees leave the
job. High leavers in company is considered as the initial problem in the company. In order
to follow that, company will find some causes to understand what factors with regard to

employees want to stay or leave their jobs.
The analyzed methodology used to find out the causes and effects leading to
recognize the potential problem in the thesis that is qualitative data collection method
through in-depth interviews as primary data. Additional, the secondary data is collected
materials of leavers from office department to have diagnosis of potential problem at Van
Hung Xuan Company. Moreover, problem scope can work with office department,
teaching and translating departments in company in which it is typically analyzed data on
translating function to find out the potential reasons are come from the diagnosis of
highest turnover rate and the issues are supported to understand what roost causes leading
to difficulties that has been happened in company.
From the finding out diagnosis of potential problems exist in Van Hung Xuan
Company, findings provide the existence of poor management capability plays a main
problem. The scope of problems is argued with evidences for providing through
interviews from qualitative method. Poor management capability is analyzed in terms of
its existence, consequences and solution are suggested to resolve such a problem. Finally,
this thesis will indicate the action plan in the time and budget that are proposed to settle
the problem aiming to reduce the obstacles in Translating function in Van Hung Xuan
Company.

4


CHAPTER 1. PROBLEM IDENTIFICATION
1.1 Problem context
1.1.1 Introduction the company
Company Van Hung Xuan has established in 2011 with tax code: 0310832022, its
head office is located at 274 Le Co, An Lac Ward, Binh Tan District, HCM, Vietnam and
it owns 01 branch in Binh Tan District as well. It is represented by Mr. Nguyen Van Duc
by law with two billion for charter capital. It started up with 04 employees and peak of
2015 and 2016 with 16 employees who was working in Van Hung Xuan company

including in head office and 01 branch in HCMC, Vietnam.
The company provides the teaching languages and translating services for
companies, there are two main segments: corporate customers and individual customers.
With the strategy to expand the market, Van Hung Xuan will have a plan to promote the
network of clients for translating and teaching languages functions from 2019, it creates
of a huge human source to run this business plan.
Director

Branch

Head Office

Office
Department

Translating
Department

Teaching languages
Department

Teaching languages
Department
Department

Figure 1. Van Hung Xuan Company organizational structure
In Van Hung Xuan Company, there are Head office and Branch with core
functions: there are 01 office department including in Accounting department, 01
translating department and teaching department. In teaching languages functions, they are
divided into 2 small divisions: teaching Vietnamese for foreigners and teaching English

for children in head office and in branch in which the translating business is playing the
key role in company.
5


1.2.2 Symptoms
The translating function is born in 2011 and it has been playing the via role in
business operation in Van Hung Xuan Company. It was difficult to recruit and keep the
talent employees who could follow the high requirements from clients in the first phase.
There were only 04 employees including in 01 managers cum translator, 01 Chief
Accountant cum translator who has managed the general affairs, 02 translators.
From the phases of 2011 to 2013, the internal materials are reported that the
number of employees has not changed and the revenues of translating function has gained
from 180.000.000 vnd to 225.000.000 vnd for each year. The two main languages of
English and Chinese has been serviced to target of individual customers and corporate
ones. The beginning of 2014, manager has planned to recruit the 04 additional new
employees to service for the number of clients and they have kept the job until the end of
2016. The peak of 2017, the translating business operation has been downturn leading to
lacking to source job to assign among employees means that translating function has
faced the employees who want to leave the job with many reasons in relating to salary and
benefits, weak source of clients, and weak management.
On the basis of internal materials are shown from Office department, the number
of employees who left the company has been increasing in 2017. The below table is
shown the number of employees who quitted their jobs are more significant in 2017:
Number of employees in Translating Function
Year/
Position

Ord.

1

2

3

Manager
cum
translator
Chief
accountant
cum
translator
Translator

Total

2014

2015

2016

2017

06 first months of
2018
Total of
Left
employees

Total of
employees

Left

Total of
employees

Left

Total of
employe

Left

Total of
employees

Left

1

0

1

0

1

0

1

0

1

0

1

0

1

0

1

0

1

0

1

0

2

0

6

0

6

0

6

5

1

0

4

0

8

0

8

0

8

5

3

0

Table 1: Number of employees in Translating Function in Van Hung Xuan company

6


As above table of employees at company from 2011-2018, the number of
employees leaving continued toward increasing from 2017. However, the other positions
still keep their jobs and unchanged. The turnover rate is shown in below:

Graph 1: Turnover rate of employees in Van Hung Xuan Company from 2011-2018
As above mentioned, Van Hung Xuan company has faced the problems in relating
to high turnover rate of staffs in which translating functions reached to 63% in 2017 and it
seems difficult for company to seek the potential clients as well as the talent employees
who will be dedicate their competences into the growth of business. In this function, high
turnover rate of leavers has significantly affected to the negative attitude of current
employees and their job performance. Moreover, the high of leavers are also affected too
much to revenue of company as reported materials from human resource department.
Especially, the revenue of company has fallen sharply in 2017 that has started from losses
of potential clients leading to poor source of assigned job among employees. In a result, it

is said that the correlation between turnover rate and low revenue are affecting to sharply
growth of business operation in company.
From the internal documents are provided to present the revenues in translating
Function from 2014 – 2018 in below:

7


Revenue in Translating Function from 2014-2018
Unit: 1.000 vnd
450,000
400,000
350,000
300,000

306,000

313,200

250,000
219,600

200,000
150,000

118,800

100,000

50,000

79,200

73,800
37,800

68,400

34,200

2014

2015

Coporate Customers

2016

2017

Individual Customers

5,700
6 first months
of 2018
Total

Graph 2. Revenues in Translating functions in Van Hung Xuan Company
In summary, the symptoms are found in Van Hung Xuan Company including in
Decrease Revenues and High turn overate of leavers.

1.2 Problem analysis
1.2.1 Situation analysis
According to the data is collected from in-depth interviews from 02 groups:
Managers and the persons who left the job in company.
Assigned Multitasks
As the writer can see that there are many reasons leading to increasing number of
employees who want to leave their job. The interviews are performed to taking over the
most importance of business operation to investigate the symptoms and incisive
judgement to the problem occurring in company. The content of interviews is shown in
Appendix.
To get information from employees’ interviews to know that translating function
has to fulfill business core requirement from clients and prioritize some of requests while
taking over all. Facing to high turnover rate as a symptom is found priority in company.
The leavers left some tasks and current employees who are trying to be in charge of
multitask while waiting for take over the new vacancies. It seems difficult for company to
8


recruit new ones in this time because of downturn business significantly means that
company does not have much budget to recruiting plan in last recent years. The taking of
multitasks in company causes of stressful workload for them in the peak of translating
season. Before the situation of business operation has been declining sharply, Van Hung
Xuan company’s managers has had the plan to get back its business operation in
promoting the network of translating from 2019. Ho Chi Minh City – Year of 2018r
Stressful workload
Moreover, the employees who take charge of translating service insisted that
dealing with their clients ‘awareness is not easy. They always answer all of questions
from clients while completing the assignments to summit to Justice Department or Notary
Public’s office to screen the documents and go back handing in the clients in time when
being request about the time and date, they do not have enough time for preparation for

documents perfectly. They are always in stressful state with time pressure and these
causes may be known as a passive involvement in translating function. This is one of
reasons employees tended to reject new tasks are taken over from the leavers because they
feel the negative impact on their assignments.
Mr. Tuan Dung – employee at HR department of translator function – who left the
job approximately 1 years, 28 years old. He shared some views the reason leading to quit
working in company that “the salary plays the most important role in decision to work or
leave the job. I feel unpaying in salary and high pressure of time and working.”
Mr. Dung continuously shared the point of views: “the job was repeating and
repeating day by day leading to me tend to undeveloped in my personal career. I always
felt bored when completing a repeated list of assignments in my daily work”
As above details mentioned, company does not have the HR plan leading to weak
compensation in relating to unsatisfied job among employees. More views are shared
from Ms. Thanh Hong that “Van Hung Xuan company is very young means that it has
faced to lacking of clients in developing and growth of company. The company does not
have much potential clients leading to lacking of sources of jobs that allocate among
employees that makes to low income. I think the root cause for weak potential clients that
9


is lacking of marketing and advertisment strategy and weak management skill in keep and
have more new clients as well as keep the talent persons”.
On the basis of Manager in translating functions shared the ideas that recently the
company faced the biggest problem of very high turnover rate of 63% in 2017. From 2017
and the 06 first months of 2018, company has been faced forwardly the difficulties since
the experienced employees decided to leave while company still cannot recruit the new
ones to replace in time to catch the working pace. As above noted, Van Hung Xuan
company is a small and young one that always requires all of employees to satisfy all
customers’ requirement perfectly. Especially for translating function, once people left the
company, it means that knowledge with them would leave the company as well. As a

result, the experienced employees who still keep the job, will handle a lot of tasks in case
the company is hard to find out the suitable candidate for the translating vacancy.
Ms. Thanh Hong also shared point of view: “The big problems it is assigned many
mulittasks with unclear desciption. I fell boring with repeating tasks. Somtime, I should
work with overload but sometime I do not have job to do and always feel boring about the
job. I feel lacking of motivation to dedicate in assigned job and have a poor
performances. Even if, I have weak management of time to complete to multitasks leading
to job stress under work overload in the peak of translating season as well. That is why I
wanted to quit the job”. Additionally, the current business operation of Van Hung Xuan
company, it currently does not have the plan for hiring more employees because of
downturn business. This is one of reasons that has negatively impacted to the quality of
work leading to poor performance from the lacking of employees because the unstable
workload and the company sometime does not have enough human resources for
completing the tasks in the peak of translating business season that makes managers
assign multitasks to employees. As a result, it has created the lacking of motivation
among employees and the boring and repeating job that make them feeling no promotion
in their job career from the stressful workload.
Moreover, company has been suffering from downturn of business operation
means that it is so difficult in running the overall of company and to meet the satisfy the
10


requirements from employees, that is why managers’ line let them to leave when they
make the decision wan to quitting the job. In conjunction to high turnover rate of leavers,
the loss profit has happened sharply in 2017 and 06 first months of 2018 and it could have
been existed forward in the coming months if the managers do not have some solutions
for this function.
Unstable workload
The dialogue with Ms. Xuan Anh who is manager of translating team, the
information is provided that Van Hung Xuan Company is a small and minimum one. It

has carried out the start-up of business progress from the phase of 2011 - 2018, it has met
lots of obstacles in building the typical industry of translating from the clients to services
and it has been planning to promote the growth of business. “Our company is very small,
there is less employees who are currently working here. We do not have much source of
job and company met lots of obstacles in seeking clients. We have had the plan to re-build
the company”. Ms. Phuong Anh – Chief Accountant cum Translator, 33 years old, shared
that “from my view, I think the first reason that leads to employees want to leave the job is
Time pressure. Because they must manage the time to do over from the high pressure of
times and assigned multitasks.” Another causes come from lacking for promotion in job.
They feel boring to work day by day, however, they cannot see the opportunities for their
personal career in relating to stress in job as Ms. Phuong Anh continuously said that they
do not see the promotion in their career development path, the assigned job is not clear
description leading they take much tasks to complete within a day. They need a big time
to resolve these and sometime they are free and nothing to do. This causes for the stress
in job.
In the urgent times, the employees were assigned to work with the high pressure of
times to hand in clients in due date. She also provided further information in case she
should transfer the translated documents to external agency and paid the high fees for
external agency because of lacking employees or she has not had many employees who
can translate Multilanguage as requirement of clients. Excepting for English and Chinese
as main languages to use in translated business operation, the other languages such as
11


Thailand, Korean, Spanish, Italian, etc…have been supported from collaborators with
high fees. Beside the competitive prices among translating agencies making the lack of
clients as well. This has been leading to lack of capacity and low income for her
translating function. In peak season of translating, there were a stressful work load among
employees.
Poor attractive new customers and weak customers’ relation

Yet, it seems difficult for them from the phase of recruiting and training employees
as well as how to keep the talents who will be dedicated working in company to the phase
of building the strategy of marketing and sale that can find new clients and how to keep
the enlarge number of existed clients. However, managers cannot have target market to
win customers in the strictly competed market nowadays that make decreasing revenue
sharply. Moreover, up to small company as Van Hung Xuan, marketing and sale
campaign are bigger challenges than ever. This is one of possible problem findings can
affect to the strategy of expanding to company’s growth in the coming years. As speaking
to Ms. Xuan Anh: “the company does not have a marketing and sale team. This is an
obstacle for us to find the new potential clients”. Lacking of marketing and sale
campaign, especially for getting and keeping the clients are considered the most difficult
problem in Van Hung Xuan Company. The biggest challenges are faced to increase the
volume of customers purchase the services while trying to keep the existed clients,
however, Van Hung Xuan Company does not have the social networking as building
websites or online social networks such as Linkedin, Facebook, Twister, Intergram or
newspapers, etc…Managers only focus on their close relationships to get customers
through word mouth or zalo….in relating to weak source of customers and it is difficult
for them in catching up the working pace and satisfy all of requirements from clients
because they lack of human resources leading to employees who are assigned multitask in
peak of translating season. Moreover, they do not have enough for budge to hire many
employees because of irregular job source and lacking of employees means that they hire
part-time job or outsources in peak of translating season cause to high costs and decrease
revenue. They sometime get lots of job and they do not usually have many jobs to
12


assigned tasks among employees. Ms. Xuan Anh who handles the tasks and manage
employees in translating function shared some views that: “We do not have website or
any advertisment online. The customers are introduced from relationships or from Justice
Department and Notary Public Office as well.”

As a result of this that has belonged to the management skills from the managers
and how to have a good strategic management for their company toward the good results
of business or bad ones that will be leading to become also threats to company’s mission.
Decrease Revenue sharply is caused from weak management skill of managers because
Van Hung Xuan company is a young and start-up one, it is lacking of many skills in
management. They do not know how to keep the existed customers and get the new ones
to have many sources of job. Additional, the big barrier of high competitors in translating
industry strictly in relating to have competed prices and quality services. Competitors has
many good advantages in Multilanguage to meet the customers’ need all the times with
the best prices and services. Moreover, they also have best strategy of marketing and sale
to draw and draw the mass of customers to them means that Van Hung Xuan’s employees
become tired in management skill of time when they have tried to complete the multitasks
from managers leading to low performances among them, it perhaps creates the poor
services as clients’ feedback. Ms. Xuan Anh continually shared that there were also many
causes that employees quit job or move to other organizations, these employees wanted to
increase the salary and be promoted faster and faster. They were always blamed
unsatisfied in their assigned jobs. “The requirement from clients, they are always in the
tired state and not positive to cooperate or deal with clients in negotiating the time and
date. They have weak communication leading to run out of the energy to deadline with
clients. I always get complaint feedbacks from clients about the small mistakes in
translating documents leading to clients to return and correct the ones. That is why we
cannot offer more salary and provide more attractive benefit for them. They have the job
poor performance” In summary, Van Hung Xuan company is not only lacking of
marketing and sale campaign effectively, but it is also weak in management skill to get
and keep clients as well as keep talent and right employees that are one of sources to get
13


profitable for company. The number of clients is shown to see that decrease in volume of
customers leading to low revenues in past years.

Low benefit & salary
As details mentioned in qualitative method, the salary and benefits policy that keep
the key importance in relating to high turnover rate of leavers. Based on the report and
analysis from Office department, Ms. Phuong Anh who is in charge of accounting affairs
in company, she gave a general view as she got the results from Van Hung Xuan
Company that there is not existing the performance appraisal and human resource plan.
Employees are received salary through the scale of fixed salary in comparison with the
average income of labor market. The payroll of individual is sent to his/ her in
confidentially that it has described the details of basis salary and benefits, however, it
seems happening the compare the salary among them leading to unsatisfied income.
From the internal data of the company that will provide the basic evidence to
investigate the topic of salary in company. The salary statement is shown in below:

Graph 4. Average salary of employees in Translating Function in Van Hung Xuan
Company from 2014-2018
Based on the above result of table, it is mentioned that the scale of salary still is
considered as factor of low salary among employees leading to them made decision to
leave company.

14


Ms. Xuan Anh supported this issue that “they always complain about salary; they
feel unfair in receiving salary. They have compared the current salary to the other
companies.”

Graph 3. Number of customers in Translating functions in Van Hung Xuan Company
Decrease in work quality
Ms. Phuong Anh continually talked to the leavers in translating function. The
causes come from high pressure of time and tasks, weak management of time leading to

high time pressure Some employees were lack of experiences in translating documents
from reading comprehensive to translated technique leading to get more mistakes in
documents. It was also wasting of much times for resolving the problems in urgent time
when satisfy the requirements from clients. Once the manager gets the passive feedback
from clients means that there is a poorly performance of job.
Regarding to the experiences of employees in company, the graph is shown in
below:
Experiences in Translating Function
Ord.
1

Year/ Position

2016

2017

Translators

0-4

1-5

15

06 first
months of
2018
2-6

Table 2: Experiences of employees in Translating Function from 2016-2018
From the above table, the experiences have existed from 0 to 4 years to happen in
company with the only one employee who was 23 years old and young, he has started his
career path with zero experiences, that was why almost lacking of experiences. However,
He supported to settle the paper work and translating documents in company. He had lack
of experiences in paper and translating tasks, however, he tried very much to fulfill the
assignment in time. On the basis of young age and experiences leads to the mistakes and
delaying in assigned tasks that can exist to contribute the poor performance job. This is
one of causes for high pressure of time and working. Ms. Phuong Anh, chief accountant,
said that: “he does not have experiences in assigned job and normal happen the mistakes
in assigned tasks, but, he works hard and try to learn”.
In conversation with Ms. Xuan Anh continuously has been analyzed to get further
information for leavers in translating field. She mentioned that we do not have human
resource plan leading to weak recruitment and selection and the performance appraisal do
not exist in company. It is hard for her to evaluate the achievement of employees. The
benefits sometime evaluated on the volume of jobs that gets from clients. Beside the
salary of translating was quietly low in comparison salary of other jobs that used foreign
languages, the employee decided to quit the job after only several years working because
of unfair performance appraisals leading to unsatisfied salary and benefits. Moreover, the
factor of weak management making employees who always feel lacking of supports from
managers and colleagues.
In summary, potential causes such as weak management skills, lacking of clients,
unsatisfied salary and benefits, etc…are identified and some evidences to support the
analysis has to be gathered. Moreover, turnover rate of leavers affects negatively to
company with a typical factor finding that is low performance in business operation and
decrease revenue comes from the weak management skill and lacking of marketing and
sale team leading to business result of company has been decreased sharply over years.
1.2.2 Initial Cause – Effect Map:

16


Firstly, it is understood the Cause and effects Map are used in many industries for
many purposes. The basic thoery of a Cause and Effects Map aims providing the ways for
adjusting the business operation and effecting a chain in the system if specified incidents
causes (1). The forming of problem definition typically is a problem mess, it is noticed
that by selecting a potential problem and setting tasks with respect to this comes from
symptoms, cuases and solution in relating to potential prolem will gather during the initial
and orientation phases. The diagram presents a causes and effect one in which shows a
symtopms that has origined from mess of causes (2).
From interview of group 1, the problem finding is focus on the factor of decrease
revenues are focusing on lacking of marketing and sale campaign, weak management and
high turnoverate. The factors of No opportunities for career path, do not have the
marketing and sale team and do not human resource department come from the interview
of group 2. It is merged two diagrams to understand the issues regarding to the potential
problems increase. Further information, it is understood that potential problem is selected
to comply with initial cause – effect diagram.

17


Big barrier of high
competitors

Low service price

A decrease in
Revenue

Poor attractive new
customers

Poor customers
targeting

High turnover
rate of
employees

Assigned multitasks

Poor
Management
Capability

Reduce work quality

Unstable workload

Low benefit
& salary

Lack of Sale
and
Marketing
Team

Weak customers’ relation

Losing the existing customers

Stressful workload

External
industrial
factor

Not reward
evaluation

Figure 2. Initial Cause – Effect Map

18

Lack of
Human
ResourceTeam


1.2.3 Updated Cause – Effect Map
According to Eden et al (3), the analysis relationship between causes and effets
mapping are shown the collected views. It is shown the arguments can be related to topic’s
relevant from its causes and effects. It also seeems examines the optential causes into the
smaller and smaller items. It is useful for showing relationship between contributed factors
in analyzied topic.
Job dissatisfaction
On the basis of the thoery about Human Resource Management, it is defined that
one of the ways to draw the keep talened people who desires maintaining their jobs that is
good human resources management in organization (4). One organization can keep the

competenced workforces who are dedicated working leading to supporting the mission,
goal and strategies of business growth. If the employees can see the benefits on their
dedicaiton, they will feel motivation and try their best to complete assigned tasks. However,
the vison of career path isnot seen from boring job, they are always in mood of
dissatisfaction. Job dissatisfaction causes for poor job performance and leading to quit the
job from employees quickly.
High industry competirors
The smarter and more talented sale persons with regard to their interaction to clients.
The more customers will tell about their need and they are willing to your orgainzation to
buy the services or products from yours (5). High competitors are conerned in managers’
lines because of clients. The consumers or customers who have the priorty rights to choose
the best services or products but the reasonable price is attractted to them. The relationship
between prices and markets has evaluated through market makers have a sury through
markets and prices. They expected profit maximizing tending to supply and demand chain
and get feedback their competitors’ same way of supply-demand one as well (6). The
translating industry was a special field that liked with government department such as
Nortary Public, Committee People Department or Justice Department of Ho Chi Minh City,
to be a coollaborators who can have a legal character to sign the legal valued translated
documents, however, the integrated economy with transmistion of circulars from Minister
19


of Justice from 2013, to encourage for small and midium enterprises to start-up business,
translating industry to become the attracted fields for young and dynamic people who would
like to do busiess with it, and it gradually become competed severly amongs companies
togethers and appearing the low service prices to draw the customers.
Unattractive salary
The employees are not recognized for their dedication or accomplishments that are
considered only criticized for their shortcomings, they do not feel valued and work in the
mood of fear of making a mistake. A company should encourage the creativity through

the fair reward and constructive judgment or recognition for creative, dedication in their
work (7) The topic of salary and benefit issues has always argued in almost companies.
There exits the comprising paying among employees when they often get the salary and
benefits to compare with other companies paying.
It is defined that many different of factors that can impact to an individual
employee’s level of satisfaction with his/ her job. These factors come from the level of
paying and benefits (8). The writer can discuss that salary is still an important factor
throughout the life of an employee’s career, but it is not the sole motivator to attract and
keep the employees. More and more people are considering companies that offer
incredible benefits, aside from salary. If the employers do not know how invest in their
employees, it is surely their top performers will go out of the door. Based on the
interviews to find the causes related to high turnover rate of leavers from unattractive
salary policy in Van Hung Xuan company
The update cause and effects map is presented as folows:

20


Low service price

External
industrial factors

High industry
competitors

Poor customers
targeting

Poor attractive new customers

A decrease in
Revenue

Weak customers’ relation

Losing the existing
customers

Assigned
multitasks

Stressful workload

Lack of sale and
marketing team

Poor
management
capability

Job
dissatisfaction

Reduce work
quality

Unstable workload
High turnover rate
of employees

No reward evaluation

Unattractive salary

Figure 3. Updated Cause – Effect Map
21

Lack of
human
resource
team


1.3. Problem identification
1.3.1 Possible problem
To identifying problem, the thesis mainly focusses on internal factors of Van Hung
Xuan Company. As such, external factor on high industrial competitors will be eliminate
removed. The remaking of this such will discuss and analysis by using theoretical and
empirical exploration to identify the main problem. In addition, some evidences
supporting for the analysis has gathered to strengthen the identification.
1.3.1.1 Lacking of human resource team
Human Resource (HR) keeps they key role in management of employees. If the
company has lacked of human resource means that it lacks of ability making employees
have motivation in job such as lacking of skills in complete the tasks (9), for example:
lacking of time, profession personnel that may have obstacles outside the employees’
control in relating to poor management from managers. Moreover, human resource team is
not only impacted to company’s performance through how to attract talents to retaining the
best tasks to completing or manage the employees’ morale, happiness a cooperating among
employees to reach the good results of tasks, but human resource manager should
understand how to attract the right talents with constantly upskilling employees to meet the

changing needs of the business operation. As concerned this, human resource management
can impact on performance and leading to poor services means that human resource has a
directly influence on employees’ skills, motivation, opportunities for career path.
Additional, appraisal performance is very important in human resource activities, because
it relevant to attractive salary and compensation with regard to employees’ attitudes. It is
very terrible for low motivation among employees associated in appraisal performance
leading to the poor performance and then affects to result of business. If human resource
activities exist in company in relating to valid performance management system to evaluate
the competence of employees and know how to keep the talents and recruit the new ones
to provide the skills and experiences required to keep the productivity levels up and create
the advantages competitive to push up the better ladder career (10). As a result, the
importance of management skills in human resource activities keep as a core role in
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company. As indicate in the previous section, the interview shows that Van Hung Xuan
company is lacking of human resource team leading to ability to communicate ineffectively
to assign and allocate the tasks properly, the policy of salary is satisfying or how to create
the source of creative and interesting to employees dedicate into their job to develop the
opportunities for career path. In addition, the lacking of human resource team may result in
insufficient training or poor appraisal performance leading to unsatisfied job among
employees means that it causes for time pressure. As such, lacking of human resource
activities has been considered as a negative factor in motivation of the staffs and strong
management is lacking with regard to negative affecting to workload, poor services and the
employees feel the big burdened by the volume of job dissatisfying (11). In addition,
lacking of human resource team makes the poor performance in Van Hung Xuan Company.
This is also one of reasons for low performance of job in company.
1.3.1.2 Poor Management Capability
According to Leonard et al (12), management capability helps managers in
thinking about knowledge to build consequences of their technology – related decision

and provide the knowledge for them the useful sources in successful adapting as an
incremental re-direction of skills and knowledge in management including the technology
innovation. Core capability should be managed to foster, not only critical knowledge but
competitive industry changes. Firstly, it should refer to lacking innovation of technology
in Van Hung Xuan Company leading to out updated information to meet the needs of
tasks in time or unexpected happens in management tasks (13). Next, the lacking of
business model innovation is one of essential factors make Van Hung Xuan company
cannot catch the modern business trend. According to Baden et al (14), business model is
linked basically to technology innovation and company performance. Update timely and
developing the right technology is a matter of a business model decision regarding
openness and user engagement. Furthermore, management role is very importance to run
all business operation and employees as well. It refers to poor management time in
dealing the assigned tasks in deadlines and how to keep and balance the time for urgent
time and work. In Van Hung Xuan company, the job is irregular assigned leading to stress
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