Poor cooperation between after sales team at prestige sports cars co , ltd

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

NGUYEN THI MY LINH

POOR COOPERATION BETWEEN
AFTER SALES TEAM AT PRESTIGE
SPORTS CARS CO., LTD

MASTER OF BUSINESS ADMINISTRATION

Ho Chi Minh City – Year 2019


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

NGUYEN THI MY LINH

POOR COOPERATION BETWEEN
AFTER SALES TEAM AT PRESTIGE
SPORTS CARS CO., LTD
MASTER OF BUSINESS ADMINISTRATION

SUPERVISOR: DR. DOAN ANH TUAN

Ho Chi Minh City – Year 2019

TABLE OF CONTENT

Executive summary
1 Company introduction .............................................................................................................. 3
1.1 Industry overview ........................................................................................................... 3
1.2

Company Overview .................................................................................................... 3

1.3

After sales department (AFS) .................................................................................... 4
1.3.1 After Sales chart ..................................................................................................... 5
1.3.2 After Sales Service scope....................................................................................... 7

2 Company’s symptoms ................................................................................................................ 7
2.1 Low profit margin of AFS department in 2018............................................................ 7
3 Problem identification ............................................................................................................. 12
3.1 Problem context ............................................................................................................ 12
3.2 Problem finding process: .............................................................................................. 12
3.3 Potential problem: ........................................................................................................ 13
3.3.1 Effect by Decree 116 from government............................................................... 13
3.3.2 High workload ..................................................................................................... 14
3.3.3 Poor cooperation between AFS’s team ................................................................ 17
3.4 Validating problem ....................................................................................................... 24
3.5 The main problem: Poor corporation between AFS team ........................................ 27
4 Cause and updated caused-effect map ................................................................................... 28
4.1 Potential causes ............................................................................................................. 28
4.1.1 Unbalance benefits and compensation ................................................................. 30
4.1.2 Poor communication ............................................................................................ 30

4.1.3 Personality differences ......................................................................................... 31
4.2 Validating causes........................................................................................................... 32
5 Alternative solution .................................................................................................................. 34
6 Action plan................................................................................................................................ 38
7 Supporting information ........................................................................................................... 44
Interview guide ............................................................................................................................ 59
References .................................................................................................................................... 74
1


Executive summary
Prestige Sports Cars Co., Ltd is the official distributor of Porsche in Vietnam
(Porsche Vietnam). Porsche is one of the leading sport car brands in the world with
powerful engine, high performance, attractive vehicle such as the legendary 911, 718
Boxster, 718 Cayman, Panamera, Cayenne, Macan. In Vietnam, Porsche is still taking a
small market share in car industry.
Porsche is famous brand in luxury cars industry with quality products as well as
warranty and maintenance service. Therefore, in addition to selling cars, after-sales
service is also given top priority for all official distributor in the world.
Base on the management report in 2018, the result of business had been decreased
compare with 2017. By using different literature reviews and in-depth interviews among
employees in different departments: Sales, After Sales, Finance, Human Resources,
Porsche Vietnam had two main symptoms in After Sales department which lower in
After Sales profit margin and high turnover rate of technician. These aspects contribute to
clarify the answer of the queries: what the main problem is, what the potential problem is,
why it is the main problem, how important and how it effect to profit margin and After
Sales employees in general and technicians in particularly.
The number of vehicles reduced corresponds to a 4-year maintenance package
reduction, which is included when selling a new car. Besides, technical staffs leaved their
job frequently which also greatly affects the quality of service and sales of the

company.The cause of the decline in profit margin and high turnover rate of technicians
are estimated to be impacted by three reasons: reduction of sales, increase in cost of
goods sold and job dissatisfaction.
This research will be a supportive analysis for After Sales Director to find the key
problem, the main causes and conduct best solution to increase profit margin as well as
reduce the turnover rate of technicians. Improvement of cooperation and teamwork is the
necessary method to reach business target as well as achieve personal goals.
2


1 Company introduction
1.1 Industry overview
The automobile industry in Vietnam is divided into 2 main categories:
imported cars (CBU - Completely Built-Up) and domestically produced cars
(including CKD - Completely Knocked Down and SKD: Semi-Knocked Down).
Porsche is one of the luxury car brands imported from Germany. In 2018, it was a
difficult year for imported cars with influence of The Decree No. 116/2017 / ND-CP
taking effect from January 1, 2018. The Decree No. 116/2017/ ND-CP stipulated
conditions for production, assembly, import of automobiles, and standardized
requirement of warranty and maintenance services for all enterprises. Accompanied
by Circular 03 of the Ministry of Transport, import activities of automobile
manufacturers in Vietnam have encountered barriers and affect the business in
general. The Decree is considered as a technical barrier to "curb" the prospect of
imported CBU vehicles, especially automobiles from Southeast Asian countries,
massively entering Vietnam since 2018.
In addition to selling cars, the enterprises need to invest on workshop with
full machine and tool, have strong human resources to build up brand name and
provide excellent service in the market. It is one of the strategies of any automotive
builder. In Vietnam, the reputable automakers as BMW, Lexus, Audi, Mercedes-Benz
also often focus on after-sales service, which is an inevitable trend to retain a loyal

customer base and to maintain its reputation.
1.2 Company Overview
Prestige Sports Car Company Limited is the official distributor of Porsche in
Vietnam with two centers in Ho Chi Minh City and Hanoi. With comprehensive
infrastructure and equipment and professional staff, two centers provide services
according

to

standard

Sales, Porsche special

of Porsche

globally. Services

tequipment, Porsche

Selection) and other services.

3

Fashion

include

Sales,

After

Collection (Porsche driver's


Porsche brings to the Vietnam market the sporty cars with optimal
personalization. This is also a factor that makes Porsche sports car brand unique.
The Porsche models introduced in Vietnam include: the legendary 911, the "roadster"
718, the Gran Turismo Panamera, the SUV Cayenne and the mid-size SUV Macan.
Porsche is a brand created to conquer sports car enthusiasts. Porsche Vietnam has
grown steadily since 2007 with canters being considered one of the standards of the
automotive industry.
Porsche is a brand created to win sports car enthusiasts. Porsche Vietnam has grown
steadily since 2007 with center rated as one of the benchmarks of the automobile
industry. Porsche Vietnam is proud of perfect service package providing under the
leadership of knowledgeable, experienced and skillful leaders and professional staffs.
Organization chart of Porsche Vietnam
General Director

Finance Director

Sales Director

Finance

HR

Admin

IT

Finance
staffs

HR
staffs

Admin
staffs

IT
staffs

1.3

Sales
staffs

Marketing Director

Marketing
Staffs

Logistics

After Sales Director

After Sales
Manager

After sales department (AFS)

Following to Gaiardelli, Nicola and Lucrezia (1), nowadays After Sales service
activities are acknowledge as a relevant source of revenue, profit, competitive
advantage. Therefore, top management should focus on the definition of a
structured business performance measurement system for the after-sales business.
Porsche Vietnam has already provided good service to take care of customers’ car
according to Porsche standards: service job, service of car interior and exterior will
4

Technical
Manager


be provided professionally with 24/7 emergency service only for Porsche car
owners. Porsche Vietnam provides 24/7 hotlines to customers when the cars are in
emergencies. In the event of a vehicle malfunctioning during the warranty period,
the vehicle will be transported free from the accident location to the Porsche
Service Centre for processing and will be returned after inspection look up.
1.3.1 After Sales chart
After Sales
Director

After Sales Manager

Technical Manager

Foreman
Service
Advisor

Service
Executive/
Admin

Warranty
Admin

Parts
Department
Technicians
Team

Car care
Team

*Note:
- After Sales Director: Managing all activities in After Sales Department.
- After Sales Manager: Managing all activities in After Sales Department relate to
Service
- Technical Manager: Monitoring and handling of all technical problem case,
technical diagnostic support and general technical support, special tool and workshop
equipment orders and administration, PIWIS Tester support and updates.
- After sales admin: Supporting to AFS director and AFS manager in AFS activities,
taking responsibility for synthesizing all feedback from customers.
- Foreman: Organizing workshop (workflow, job assignment (incl. car care), etc.),
workshop equipment maintenance supervision.
5


- Technician: Taking responsibility for

• Repairing & maintaining Porsche cars in accordance with manufacturer’s
procedures & diagnostic guidelines.
• Diagnosing vehicle with advanced special equipment.
• Interpreting of diagnostic logs and fault finding for comprehensive vehicle
system networks
• Assurance of highest repair quality standards
• Storing and maintaining tools using for repair
- Car care: Taking responsibility for polishing and beautifying the car before
delivering to the customer.
- Service Advisor: taking responsibility for:
• Receiving phone, setting up auto repair appointment for customers.
• Contacting customers and listen to customers' opinions and requests about their
cars.
• Taking full note of the customers’ comments.
• Transferring requests and customer comments for technicians to diagnose
diseases.
• Uploading the list of repairs, parts, working hours, ... to quote and convince
customers.
• Processing to deliver the car to the workshop to repair.
• Taking final inspection and delivery of vehicles to customers.
• Selling the equipment.
- Service Executive: Taking responsibility to diagnose errors of new vehicles,
receiving feedback from customer.
- Warranty Admin: Taking responsibility for the work related to reimbursing
warranty task
- Parts department: Ordering and managing spare parts to technical staff as their
demand, following up with shipment information and support logistics staff in part
importation
6

1.3.2 After Sales Service scope
Repairing cars
Providing warranty jobs for customers according to Porsche's regulations
Providing 4 - year maintenance package for new car (4 - year maintenance
packages is offered for each vehicle after activating new car warranty and
counted as the revenue of AFS department at that time.)
Selling spare parts to customers
Checking the cars before delivering to the customer
Supplying car care and cosmetic services
2 Company’s symptoms
According to Ropega (2) , in order to help businesses reduce the number of risks and
avoid business failures, it is necessary to analysis and understand the symptoms of a
business. When business symptoms are recognized, it will help board of management
make decisions to develop the business. Following the management report in 2017
and 2018, the symptoms of Porsche Vietnam had revealed as low profit margin and
high turnover rate of technician.
2.1 Low profit margin of AFS department in 2018
The gross profit margin = (Sale revenue – Cost of Goods Sold) / Sale revenue

After Sales Monthly Profit Margin
70%
Profit margin (%)

60%
50%
40%
30%
20%
10%

0%

Jan

Feb Mar

Apr May Jun

Jul

Aug

Sep

Oct

Nov Dec

Y2017 54% 48% 52% 48% 56% 51% 59% 50% 49% 49% 47% 51%
Y2018 50% 49% 50% 42% 48% 40% 45% 48% 46% 45% 44% 47%

7


Figure 1: AFS’s profit margin from 2017 to 2018
Base on Figure 1, in 2018, After Sales monthly profit margin was declined comparing
to 2017. The lowest reduction was March with 2%, the highest was Augy with 14%.
The main reasons of declining profit margin of AFS were decrease in revenue.
Following to Rigopoulou (3) the after sales services effects on customers' satisfaction
as well as on their behavior intentions or repurchase intention, AFS’s revenue include

4-years maintenance package which already sell to customers at the same time with
new car sold, warranty service, AFS internal service (include as disposal job, internal
job, gifts to customers, etc.).
The revenue of AFS did not meet the AFS’s target in 2018. The main service which
made AFS’s profit margin decreased include disposal job, service job with gross
margin < 25% due to discount for customers, parts stock aging and 4 years
maintenance package.

8


Table 1: AFS profit margin for 6 months from Augy to Dec 2018
(Source: MR report of Prestige Sports Cars Co., Ltd)

No.

Description

1

Disposal job

3

Normal job with gross
margin <25%

Aug
2017
2018

Sep
2017

2018

Sep
2017
2018

Oct
2017

2018

Nov
2017

2018

Dec
2017

2018

-110%

-516%

-85%

-472%

-36%

-18%

-35%

-43%

0%

-597%

12%

-136%

24%

22%

23%

17%

21%

14%

23%

20%

21%

14%

23%

16%

Table 2: AFS profit margin for 6 months from Augy to Dec for 2017 and 2018
(Source: MR report of Prestige Sports Cars Co., Ltd)

9


Note:
• Disposal job: service job or counter sales job with cost higher than the selling price or discount job with profit margin was
negative.
• Warranty job: warranty service to customers with selling price equal to cost
• Internal SALE _selling price: internal expenses for sale department
• Service job with gross margin <25%: service job with profit margin less than 25% due to discount for customers, parts stock
aging.
• Service job with gross margin >25%: normal service job
• 4Y maintenance package: 4 years maintenance package for new car (4- year maintenance packages are always included when
selling new cars. The revenue of 4 - year maintenance package had counted as the revenue of AFS department).

10


2.2 High turnover rate of Technicians
The second symptom of Porsche Vietnam is high turnover rate of technicians.
According to Xu, Blankson and Prybutok (4), service employees had played an
important role in measuring and evaluating a series service of activities. Following the
table below, it showed the resources for technical staff changes from 2014 to 2018:
Qty. of

Y2014

Y2015

Y2016

Y2017

Y2018

Opening

14

14

19

23

28

Increase

3

8

9

12

12

Leave

3

3

5

7

9

Ending

14

19

23

28

31

18%

14%

18%

20%

23%

technician

Turnover
rate (%)

Table 3: Turnover rate of technicians from 2014 to 2018
The rate of technician leave was always over 14% from 2014 to 2018. For an
automotive engineering company, the turnover rate of technician is over 20%, which
will make the company face a lot of difficulty and challenge. An individual working
for one organization up to 4 years tends to seek new opportunity. At Porsche, it takes
at least 3 years to train a newcomer to be a qualified technician. When a technician
reaches Gold level of Porsche’s Global Technical Certificate (the highest level of

technician training), they usually tend to consider new career offer if they do not have
opportunities to get promotion, salary increase, or they are not satisfied working
environment.
High turnover rate of technicians which was made the company have difficult
to be qualify the service that have provided to customers. When technicians left their
job, company must recruit new technician. New technicians need to have time to train
new technicians while the quality of customers and cars have increased every day.
New technicians, they do not have enough knowledge to repair. So, they usually to
make mistake. It makes the company cost was increased and the revenue was
11


decreased. The decreasing of revenue and increasing of cost in 2018 compare to 2017.
It will make the profit margin of after sales department decreased corresponding.

3 Problem identification
3.1 Problem context
Porsche vehicles is always something special and also expect extraordinary
results when it comes to the profitability of the enterprise. To achieve this goal, today
and in the future, Porsche Vietnam needs to rely on employees and managers who are
always willing to go that extra mile. In addition, Porsche and other reputable
automakers as BMW, Lexus, Audi, Mercedes-Benz have to focus on after-sales
service, which is an inevitable trend to retain a loyal customer base and to maintain its
reputation. Porsche is luxury brand of sporty vehicle which targets high income
customers in Vietnam. In addition to the sales target, Porsche Vietnam always aims to
provide the best customer service, which help Porsche stay in the back of customers’
mind and become priority when thinking of purchasing new vehicles.
Base on two symptoms of Porsche Vietnam including the AFS low profit
margin in 2018 comparing to 2017 and the high turnover rate of technicians, we will
identify the problem as bellows:

3.2 Problem finding process:
Following the steps below helps the company identify the problem. Consulting and
analysing company data can show if problems and causes can affect symptoms.
Reviewing literature of symptoms, problems of companies will show the roof
company’s issue and conclude solution for these causes. Interviewing with experts in
the company is one of the key process to diagnose the problem.
Mrs. Vu Thi Thanh Quyen – Finance Director
Ms. Ta Ngoc Nhu Quynh – Human Resources Manager (HR Manager)
Mr. Peer Marzahn – After Sales Director (AFS Director)
Mr. Hy Gia Thanh – After Sales Manager (AFS Manager)
Ms. Lam Gia Buu – After Sales Admin (AFS Admin)
12


Mr. Vu Toan – Technical Manager
And Technicians and Service Advisors (SA) to get more information about the
main cause.
References customer’s complaint data, internal sources.
3.3 Potential problem:
According to management report in 2017, 2018, AFS’s revenue significantly
reduced from 2018 compare to 2017. After research with the finance department,
determining the cause of reduced AFS revenue may be three potential problem as
effect by Decree 116 from government, high workload and poor cooperation between
AFS team.
3.3.1 Effect by Decree 116 from government
Prestige Sports Cars Co., Ltd is official distributor of Porsche in Vietnam, the
main business is selling the new Porsche cars imported from Germany. But in 2018,
new regulation of Vietnam government has generated difficulties to imported car
business. According to the. Mr. Andreas Klingler - General Director of Porsche
Vietnam said (5) Decree 116/2017/ ND-CP (6), which takes effect from 01/01/2018,

has impacted on the decline in sales of imported cars, especially vehicle in the luxury
segment. Decree 116 has been applied since January of 2018, leading to significant
decline of sales in automobile market. The imported car segment is reduced by 50%
over the same period of the previous year. Imported car enterprises are all affected by
some provisions in this decree. The authority has been tightening regulations
regarding VTA (Vehicle Type Approval) certificates issued by exporting countries.
Moreover, this decree also requires that the inspection is carried out in each batch of
vehicles. For one batch of imported vehicles, each individual model must be inspected
separately. The inspection of each imported batch requires the company spend more
time as well as implementation costs.
Porsche Vietnam is also affected by new regulations. The batches of cars that
have been imported to Vietnam ports from January to Sep have completed the
inspection procedures to prepare for delivery to customers. It makes Porsche Vietnam
13


suffer a lot of economic loss due to warehouse expense, aging stocks. Also, some
customer would like to liquidate the contract since they did not receive their vehicle as
contract.
According to Mrs. Quyen – Finance director, in 2018 Porsche Vietnam had to
solve many issues and problems in 2018. Firstly, for external factor, the Decree 116
affects directly the main business of selling the new car. From Jan to Sep 2018, the
company did not have any new cars to handover for customers. Besides that, the
Decree 116 was also one of the reasons to the decrease of AFS revenue Porsche
Vietnam offers the 4-years maintenance package to customers with three models as
Panamera, Cayenne, Macan at the time selling the new cars. The estimated standard
profit margin per model is 58% for Panamera, 57% for Cayenne, Macan is 60%. It
contributes a large proportion in AFS profit margin.
However, according to Vogelstein (7), the objective and subjective reasons,
where objective reasons are determined by the facts, while subjective reasons are

determined by one's beliefs. In business, the main causes come from government’s
policy, market condition and demand. Political and legal factors, economic factors,
foreign trade, inflation, and economic growth are outside factors that cannot be
controlled by enterprises. Due to the difficulty of importing vehicles and spare part in
2018, the revenue decreased quickly, and the enterprise could not prepare action plan
to avoid the problem. It takes more time and expense to follow and apply these new
regulations in running business.
3.3.2 High workload
According to Tom Tan (8) when the overall workload is small, managers and
staffs expend more and more work efforts with the increase in workload at a cost of
slower service speed. However, above a certain workload threshold, staffs start to
reduce their work efforts. It may be mistakes in the job that make the customer
unhappy.
Following to Mr. Thanh - AFS manager, Porsche Vietnam had around 2000
customers equivalent to more than 2000 cars. Normally, customer takes his car to the
14


Porsche workshop for service twice per year. The number of technicians of Porsche
Vietnam is about 25-27 people divided in 2 workshop centres in Ho Chi Minh city
and Hanoi. If the customers want to repair, maintain their cars, they need to make an
appointment with Porsche service advisor two weeks in advance. With the demand of
customer is higher than workshop capacity, the technicians must work under the
pressure of time measure, they do not have time to have a short break or relax in
working hours. Also, focusing and strictly following to manual repair guide of
Porsche are their obligatory standard.
Base on the analysis of decrease in profit margin in AFS department from 2017
to 2018, Mrs. Quyen - Finance Director stated the internal expenses of AFS increase
in 2018 as Figure 2 below. This is the main reason effect to AFS profit margin. AFS
internal expenses include disposal expense, compensation, gift and discount to

customers.

Reimbursement costs (million VND)

AFS's Reimbursement Cost
160.00
140.00
120.00
100.00
80.00
60.00
40.00
20.00
-

140.00
86.00
59.00
47.00

7.31
43.50
29.48

8.50
15.00 10.10
2.30
5.50
3.70 11.20 5.60 7.70
Jan

Feb

Mar

95.13

80.00 80.62

Apr May

Jun

24.80
8.70 5.80 6.70 8.90

Jul- Aug- Sep- Oct- Nov- Dec18
18
18
18
18
18

Y2018 2.30 8.50 47.0 86.0 59.0 80.0 80.6 7.31 29.4 140. 24.8 95.1
Y2017 3.70 11.2 5.60 7.70 15.0 10.1 5.50 43.5 8.70 5.80 6.70 8.90

Reimbursement costs per monthly
Y2017

Y2018

Figure 2: AFS's Reimbursement Cost
Following to Xu, Blankson and Prybutok (4), when dealers have positive
service experience, it will be useful for both the manufacturer and dealers. It will
impact the customer’s intention to make future repurchases and limitation of
switching to another brand. Stated by Ms. Buu – After Sales Admin, Porsche Vietnam
received around 220 direct complaints from customers in 2018, counted for 5% of the
total number of service implementation for customers (average 400 jobs per month).
15


The customers satisfaction index (CSI) was 80% in average annually which met target
of CSI. Most of customer complained on quality and times of service. Porsche is a
famous brand that always sets quality as the primary. When receiving complaints, the
company usually appeases customers, discounts, gifts are offered to satisfy customers.
It also makes the cost of the after sales division increase significantly.
Time of repairing car is longer customer’s expectation. The first reason is strict
repairing time regulations which makes technicians feel pressured in their task. The
new technicians do not have enough time and experience to repair Porsche cars
comparing with experience ones. Furthermore, there are only two official repair
centres for Porsche cars, which leads to the need to reserve at least 2 weeks in
advance for arranging maintenance service or repairing the car. These mentioned
factors make customer unsatisfied with services offered by Porsche Vietnam.
In 2018 the reimbursement cost of AFS increased comparing to 2017. The rise
causes resulting from customers’ complaint about services such as poor quality of
service and long repair time. Porsche is the famous brand vehicle, so customer service
always considers as top concern. Therefore, the received of any feedback from
customers, Porsche always considers and provides an appropriate method to make
them feel satisfied. Following to Wicks, Roethlein (9), quality describes as the
summation of the affective evaluations by each customer of each attitude object that

creates customer satisfaction and Oliver said (10) that if the enterprise would keep the
loyalty of customers, must first keep customers retention in which customer
satisfaction is the first factor should be focused.
Type of customers complaint
Year

Qty. of wrong
diagnosis

Qty. of slow
repair time

Year 2017

35

115

Year 2018

85

135

% of complaints of
Year 2017

1%

% of complaints of

Year 2018

2%

16

Successful
repair

Total

4,680

4,830

4,800

5,020

2%

97%

100%

3%

96%

100%

In additional, time to repair in Porsche Vietnam is long because it also depends
on service centres schedule and technicians’ skill and experience. Mr. Toan –
Technician Manager said, currently technicians who can diagnose, good repair for
Porsche car count for only 60% of the total current technician. Porsche cars have
complex structures, modern techniques. A good technician usually needs 3 years of
training and practicing to be qualified to repair Porsche cars professionally. In
addition to understanding the technique, it is required that the technician must have
equip enough experience to judge the error and make a suitable repair plan. In 2018,
the turnover rate of technicians was so high, it makes very difficult to build a quality
service team. The number of sold vehicles were increased but technician team is very
young and do not have enough experience to repair the vehicle quickly as customers’
expectation. Therefore, the quality had been limited and not adapt to customers’
demand.
3.3.3 Poor cooperation between AFS’s team
According to Table 1, in 5 years from 2014 to 2018, the rate of technical staffs
taking leave is always over 14%. This is an alert sign for board of manager to
maintain the development of the business. An excellent aftersales service is key point
to increase sales target, however the technician – the heart of after sales service, left
the company continuous increase in the year is alarm for Porsche Vietnam. According
to Zhou and George (11) the conditions under which job dissatisfaction will lead to
workers creativity as an expression of voice. Continue commitment is important but it
not sufficient condition for job dissatisfaction to result in creativity as it ensures that
dissatisfied workers don't quit. To being committed to remain in an organization,
workers must also perceive that their creative performance has the potential to be
effective. The useful feedback from colleague, colleague helping and support, and
perceived organizational support for creativity would each lead employees to perceive
that their creative efforts would be effective and thus, each of these three variables
would interact with job dissatisfaction.

17


Following to the interview of technician, we found out two reason which effect
to job dissatisfaction of technicians. The first reason is stressful staffs and the second
reason is unbalanced work life.
For first reason, according to Vijayan (12), stressful staff is an outcome or
response to certain stimulate in the environment. Nowadays, stressful staff has
become clear and leading to the spirit of the staff. The reason of job stress could be
arisen from technological changes, competitive lifestyles and different other social
factors. Stressful staff is a double-edged sword, it can be both productive and counterproductive. It can be useful when it helps or motivates employee work more and
evaluate well. It will allow employee to explore opportunities and leads to enhanced
productivity in their jobs. It can be counter-productive when external factors create
more pressure to work but doesn’t lead to concrete outcome. Stressful staff is usually
happening in every employee’s day-to-day life and it effects their job performance.
Stressful staffs can come due to several factors like overwork, workload, low salaries,
lack of incentives, motivation at work.
Mr. Duy – technician of Porsche Vietnam said that they usually work under
time pressure. They must work continuously, when they receive job card, they always
limited to repair time which base on manual repair guide of Porsche. Most of errors
details and standard time is available on manual guide. Technicians must follow and
complete it on time. PIWIS tester system at Porsche is method for technician to check
and diagnose the issue of the vehicles. It also records time and history of every
Porsche one they are produced. AFS admin is responsible for conducting the timer
when starting to receive and completing a job card. If the repair time of job card is
longer than standard time, they will be faulted and may not get the KPI of that month.
Mr. Tam – technician of Porsche Vietnam said that he graduated from university with
a major in engineering and worked in automobile industry with 3-year experience. In
currently, his basic salary is around 8 million VND per month. If he gets first level of

KPI, he could get income around 12 million VND. Technicians KPI of Porsche
Vietnam are calculated in many factors such as repair quality, productivity,
documents quality, training, target revenue of AFS department.

18


The salary, benefit and compensation of technicians and service in Porsche Vietnam
as bellows:

19


No.
A
1
2

Compensation description
Direct benefit
Base salary
Meal allowance

Technician

VND 7-13 mill
VND 800,000

Commision
3

4

5

5
B
1
2
3
4
5

C

1

2

Monthly bonus
After Sale Service Excellence
Award Premium (ASEA), SGD
3,000 prize for the best after sale
department in the Asia Pacific
region
Yearly bonus
1. Excellent
2. Very good
3. Good
4. Acceptable

5. Unacceptable
Increase salary
1. Excellent
2. Very good
3. Good
4. Acceptable
5. Unacceptable
13 month salary
Indirect benefit
Social insurance
Health care insurance package
Teambuilding (1 time/year)
Annual leave (16 days/ year)
Oversea training, travelling
- Accommodation
- Transport fee
- Per diem allowance as follow
+ Oversea
+ Local
Special benefit

none
Base on monthly performance

Service Advisor / Service
executive
VND 10 -25 mill
VND 800,000
2% * retail price (tequipment/
window film)

None

Equal to each employee in the Equal to each employee in the after
after sale department
sale department
Base on yearly performance
3 month base salary
2 month base salary
1 month base salary
none
will not sign continue contract
Base on yearly performance
10% - 15%
5% - 12%
3% - 8%
none
will not sign continue contract
Base salary

Base on yearly performance
3 month base salary
2 month base salary
1 month base salary
none
will not sign continue contract
Base on yearly performance
12% - 20%
8% - 12%
5% - 8%
none

will not sign continue contract
Base salary

by Viet Nam law
VND 4,000,000
VND 12,000,000
16 days

by Viet Nam law
VND 4,000,000
VND 12,000,000
16 days

Hotel fee
Air ticket, taxi fee

Hotel fee
Air ticket, taxi fee

VND 600,000
VND 300,000

VND 600,000
VND 300,000

Benefits of being a Porsche technician of "Certificate Porsche
technician" with valuable throughout the world, when technician
get the level, they will receive a symbolic bonus as follow:
- Bronze level
- Silver level

- Gold level
Certificate of Porsche Service
Advisor

VND 4,000,000
VND 6,000,000
VND 10,000,000
Certificate of Porsche Service
Advisor

Table 2: The compensation for technicians and service advisors
20


According to Mr. Hung – technician has over 3 years experiences as Porsche
Vietnam. He said technician is working from Monday to Saturday in the environment
with oil, lubricant, dust, pollution but their salary is not high comparing with service
advisors. They are always working under individual KPI pressure while service
advisors are only responsible for reaching the monthly revenue target. Service
advisors working directly with customer, so they also received the tips which will not
be shared to their team. When Service advisors quotes wrong selling price, but the
profit of the job is not negative, this job card can be covered to discount policy to
legalize. Meanwhile, if technicians make fault to damage the spare-parts, this spareparts will be liquidated. A part of value of this part is reimbursed to their salary as
policy.
Porsche is the world's leading luxury car company, to train a skilled technician in
accordance with Porsche standards need at least 3 years. Porsche has three levels for
technical staff: Bronze, Silver, Gold. Employees in the automobile industry implied
that technicians are required to work carefully and gained knowledge, real experience
and advanced skills. Some technicians are not satisfied with their jobs due to taking
risks of part reimbursement, time pressure and other internal issues. However, most

firms in the automotive service industry shared that recruiting and training a good
technician requires long term strategy. Therefore, some skilled worker leaving job is
big issue for the team. Porsche has been faced with difficult current situation that the
huge percentage of Porsche’s technician has been leaving their tasks.
In addition, key performance indicators (KPIs) is the indicator of performance
evaluation which is an effective tool to measure and evaluate the work efficiency
through data, percentage, quantitative targets to reflect the operational efficiency of
the organizations or functional units or individuals. KPI helps assess the performance
of work. Each employee will understand the level of work completion compared to
the target. Motivation to work of the employees results of effective performance
evaluation. Employees can detect defects and improve them during the evaluation
process. The assessment process will help the management to have an overview of the
employee's performance as well as the appropriate remuneration and discipline

21


regime. In addition to the advantages, KPI also has drawbacks such as employee
pressure.

22


Decree 116

New regulation
Decrease
revenue

Slow repair

time

Low profit
margin in AFS
department in
2018

Customer
complaint

High workload
Low quality
of service

Poor
cooperation
between team

Stressful
staffs
Job
dissatisfaction

Unbalanced
work life

Diagram 1: The initial effect map of Porsche Vietnam

23

High turnover
rate of
Technicians