Improving KPI evaluation system a study of donga money transfer company

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

Nguyen Hoang Cuong

IMPROVING KPI EVALUATION
SYSTEM: A STUDY OF DONGA
MONEY TRANSFER COMPANY

MASTER OF BUSINESS ADMINISTRATION

Ho Chi Minh City – 2020

1


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

Nguyen Hoang Cuong

IMPROVING KPI EVALUATION
SYSTEM: A STUDY OF DONGA
MONEY TRANSFER COMPANY
MASTER OF BUSINESS ADMINISTRATION

SUPERVISOR: Asscoc.Prof. Tran Ha Minh Quan

Ho Chi Minh City – 2020

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TABLE OF CONTENTS

LIST OF ABBREAVIATION.................................................................................................................... 4
LIST OF FIGURES .................................................................................................................................... 4
LIST OF CHARTS ..................................................................................................................................... 5
LIST OF TABLES ...................................................................................................................................... 5
ACKNOWLEDGEMENT.................................................................................................................. 6

I.
II.

EXECUTIVE SUMMARY ............................................................................................................ 6

III.

INTRODUCTION .......................................................................................................................... 7

3.1.

COMPANY BACKGROUND ..................................................................................................... 7

3.2.

INDUSTRY OVERVIEW ............................................................................................................ 8

3.2.1.

Remittance market overall .................................................................................................... 8

3.2.2.

Competitor landscape............................................................................................................ 9

PROBLEM CONTEXT ............................................................................................................... 10

IV.
4.1.

BUSINESS CONTEXT .............................................................................................................. 10

4.2.

DONGA MONEY TRANSFER ORGANIZATIONAL STRUCTURE .................................... 12

4.2.1.
4.3.

Company organizational chart ............................................................................................ 12

SYMPTOMS .............................................................................................................................. 13

4.3.1.
SYMPTOM 01: Business performance of DongA Money Transfer does not reach the
target in 2019: ..................................................................................................................................... 13
4.3.2.

SYMPTOM 02: Low employee performance of Customer Service Department in 2019. . 15

PROBLEM IDENTIFICATION ..................................................................................................... 18

V.

5.1.

PROBLEM 01: KPI Evaluation system is unsuitable ................................................................. 19

5.2.

PROBLEM 02: Lack of motivation ............................................................................................ 22

5.3.

PROBLEM 03: Low employee satisfaction ............................................................................... 23

5.4.

PROBLEM 04: Personal issues .................................................................................................. 24

5.5.

Problem validation ...................................................................................................................... 25
CAUSES VALIDATION .............................................................................................................. 27

VI.
6.1.

CAUSE 01: KPI without SMART Goals.................................................................................... 28

6.1.1.

Sub-cause 01: Unrealistic targets (R).................................................................................. 28

6.1.2.

Sub-cause 02: Lack of detailed quantitative operation criteria (S) ..................................... 29

6.1.3.

Sub-cause 03: Hard to Achievable with Financial Indicators (A) ...................................... 30

6.2.

CAUSE 02: Lack of Learning and Development Indicators ...................................................... 30

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6.2.1.

Sub-cause 01: Less Training courses for employees .......................................................... 31

6.2.2.

Sub-cause 02: Lack Employee Development Programs ..................................................... 31

6.3.

CAUSE 03: Lack of recognition with high results ..................................................................... 32

6.4.

Causes Validation ....................................................................................................................... 33

6.5.

Cause – Effect map ..................................................................................................................... 34
ALTERNATIVE SOLUTIONS ................................................................................................... 34

VII.

7.1. ALTERNATIVE SOLUTION 01: Building detailed operation criteria for Customer Service
Department ............................................................................................................................................. 35
7.2.

ALTERNATIVE SOLUTION 02: Building suitable financial indicators .................................. 37

7.3.

ALTERNATIVE SOLUTION 03: Employees Reward Program ............................................... 38

7.4.

Action plan.................................................................................................................................. 40

VIII.
IX.

CONCLUSION ......................................................................................................................... 42
SUPPORTING INFORMATION................................................................................................ 44

APPENDIX A – INTERVIEW GUIDE .............................................................................................. 44
APPENDIX B – INTERVIEW SCRIPT ............................................................................................. 44
Interview 01: Problem identification ...................................................................................................... 44
References .................................................................................................................................................. 49

LIST OF ABBREAVIATION
HR
DAMTC
DAB

Human Resources
DongA Money Transfer Company
DongA Bank

LIST OF FIGURES
Figure 1: Organization chart of DongA Money Transfer Company
Figure 2: KPI Results of DongA Money Transfer Company in 2019

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Figure 3: KPI Results of Customer Service Department in 2019
Figure 4: Potential Cause
Figure 5: Cause – Effect map
Figure 6: Alternative Solutions
LIST OF CHARTS

Chart 1: The proportion of sales of DongA Money Transfer’s services from 2017 to 2019
LIST OF TABLES
Table 1: Results of implementing targets of DongA Money Transfer Company
Table 2: Total revenue results of DongA Money Transfer Company in 2019
Table 3: Problem identification – Interviewees list
Table 4: Solution 01 – Evaluation
Table 5: Solution 01 – Cost structure
Table 6: Solution 02 – Evaluation
Table 7: Solution 03 – Evaluation
Table 8: Solution 03 – Cost structure
Table 9: Roll – out plan of building detailed operation criteria for Customer Service
Department.
Table 10: Interview transcript for justification on Problem identification
Table 11: Interview transcript for Cause validation

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I. ACKNOWLEDGEMENT
Firstly, I would like to send my appreciation to Asscoc.Prof. Tran Ha Minh Quan who has
always supported me with helpful advice, clear instructions and provided in-depth knowledge
for me to complete this thesis.
In addition, I would like to express my sincere thanks to managers and employees of DongA
Money Transfer Company who are ready to help, advise and provide the necessary support
during the process of conducting research for my thesis.

II. EXECUTIVE SUMMARY

Remittances are an important source of capital for the economy to develop and stabilize the
foreign exchange market. In Vietnam, remittances are sent to support families, health care,

education, business investments, real estate and personal shopping.
DongA Money Transfer Company, under DongA Bank, has had 18 successful years
operating in the field of Remittance in Vietnam. However, at present, the employee
performance of the Company is at a low level, affecting business performance.
According to Bhatti et al (1), employee performance management has an important role in
creating a competitive advantage compared to competitors. As a result, organization checks
whether it is complying with the orientation, plan and achieving the set goals. For this
purpose, employee performance measures are used to assess and monitor the organization's
overall business activities. In addition, they are also used to measure and compare the
effectiveness of different organizations. Performance assessments are comparable in
departments, groups and individuals.

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Examining external and internal factors and internal data, the researcher identified unsuitable
KPI Evaluation System as the main problem. To solve these problems, Dong A Money
Transfer Company needs to set up KPI SMART Goals. This thesis will bring insight into the
organization in a realistic, objective and accurate way. The thesis aims to accurately identify
symptoms, problems and causes, effectively identify feasible and practical solutions to solve
problems.

III. INTRODUCTION
3.1. COMPANY BACKGROUND
DONGA MONEY TRANSFER COMPANY - A SUBSIDIARY OF DONGA BANK - one
of the famous remittance/ bank brand in Vietnam.
Since its establishment in November 2001, DongA Money Transfer Company has always led
the remittance market about the revenue, highly appreciated and trusted by both domestic and
foreign customers. In order to achieve such results, DongA Money Transfer has continuously
invested in developing the system, applying modern technology to daily operations with

payment network of over 220 locations nationwide. Each employee is trained professionally
to deliver remittance to customers fast and safe.
In addition to focusing on improving the quality of services, DongA Money Transfer
Company also builds and implements customer care programs regularly. Promotions with
high value prizes are held regularly.
Besides, the company has continuously expanded its cooperation with global partners to help
customers transfer money from more than 180 countries and territories around the world,
through 350,000 transaction locations to Vietnam through DongA Money Transfer Company.

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At present, the company has continuously made efforts to develop its network of overseas
partners and promoted the promotion of DongA brand in potential markets. The company has
connected with more than 40 major partners in 170 countries, such as RIA, MoneyGram,
Xpress Money, Sigue,....
The company has received prestigious awards as follows: "Excellent brand providing
financial services in Vietnam" by Global Banking & Finance and Finance Digest in London
(2017, 2018, 2019), “Strong brands in Vietnam” by Economic Times (2018), “Excellent
brand of remittance service in Vietnam” by Finance Digest in London (2019).
3.2. INDUSTRY OVERVIEW
3.2.1. Remittance market overall
According to the World Bank, in 2017 the amount of remittances transferred to Vietnam was
13.8 billion USD, up 16% compared to 2016 and surpassed Bangladesh to reach the top 10
countries with the largest amount of remittances in the world. In 2018, the number of
remittances sent to Vietnam reached US $ 15.9 billion, 100 times more than in 1993.
In particular, according to the World Bank, Vietnam ranked 9th in the top 10 countries
receiving the most remittances in the world in 2019. The amount of remittance transferred to
Vietnam reached 16.68 billion USD, accounting for 6.4% of GDP.
The most attractive field of remittance in recent years is production and business, accounting

for 60 to 65% of the total remittance transferred to Vietnam. Besides, real estate also
attracted a large amount of remittances, reaching 21%.
The leading remittance countries for Vietnam are the United States, Canada, Australia,
Europe, Malaysia, Taiwan, Korea and Japan. According to data from the Vietnam

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Association of Manpower Supply (VAMAS), in 2018, more than 131,000 Vietnamese
workers went to work abroad, an increase of 10.28% compared to 2017.
The main sources of money transfer to Vietnam are Vietnamese labor export workers and
Vietnamese living abroad living in other countries. In particular, the United States accounted
for 60% of remittances sent to Vietnam, the remaining 20% was from Europe, Korea, Japan
and other regions.
The official channels most commonly used to remit remittances to Vietnam are via
commercial banks, economic organizations, customs and post offices, of which commercial
banks account for 72% of remittances to Vietnam.
This brings many opportunities for competition among remittance companies, demonstrating
their strength to develop in the remittance industry.
3.2.2. Competitor landscape
For economic organizations, remittance service is very important because it is a special
channel of foreign currency mobilization without having to pay a lot of expenses. Currently
in Vietnam, in addition to banks, there are dozens of remittance companies providing
remittance services from abroad. This is a service that not only provides revenue sources but
also helps banks to buy foreign currencies, increase deposits and cross-sell other products to
overseas remittance recipients, and enhance the prestige and brand of bank with customers.
Currently, in addition to DongA Money Transfer Company, there are many other banks that
offer overseas remittance services such as Vietcombank, Vietinbank, BIDV, Agribank, ACB,
Sacombank,.... These are remittance organizations with many competitive advantages with
wide payment networks and good agency relations.

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However, DongA Money Transfer Company still has the optimal competitive advantages,
helping the market share always to the top of remittance payment in Vietnam.
Firstly, with 18 years of experience in the field of remittances, DongA Money Transfer
Company has cooperated with many major partners with the number of annual sales leading
the market. Besides, DongA Money Transfer Company also receives many valuable
international awards in the remittance market, which helps to increase the reliability of
partners and customers.
Second, Dong A Money Transfer Company fully develops three remittance payment services
for customers in Vietnam, namely home delivery, cash-backup and Bank transfer service.
Therefore, DongA Money Transfer Company has fully met the needs of customers when they
use remittance services.
Thirdly, the creativity in developing smart applications to facilitate transactions with
customers has made the service more professional, fast and safe.
These competitive advantages help promote the trust of partners and customers to develop
DongA Money Transfer Company in such competitor landscape.
IV. PROBLEM CONTEXT
4.1. BUSINESS CONTEXT
DongA Money Transfer Company is a remittance company in Vietnam, head office’s
location in district 3 in Ho Chi Minh City.
DongA Money Transfer provides the following services:
Home Delivery Service: for the home delivery service, DongA Money Transfer Company
employees deliver the remittance to hand at the designated beneficiary’s address with the
appointment time in advance.
Benefits of service:
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

Beneficiaries receive money safely, quickly, saving travel time.



Beneficiaries staying in the center of the provinces will receive money within 3
hours.



Beneficiaries who live in suburban or remote areas will receive money within 24 36 hours.



DongA Money Transfer Company’s home delivery network covers 57 provinces
and cities nationwide.



Friendly, reputable home delivery staffs are always on time and enthusiastic.

Cash pick-up Service: With 220 transaction pointes nationwide, beneficiary will easily and
conveniently received remittances.
Benefits of service:


The procedure is simple and fast. Within 02 minute beneficiaries will receive money
immediately.



With a wide network, beneficiaries can go to any transaction point of DongA
Money Transfer Company and DongA Bank.

Bank Transfer Service: deposits will be transferred in VND directly to the recipient’s
account with DongA Bank system and inter-bank in Vietnam.
Benefits of service:


Beneficiaries can withdraw money (Vietnam dong) at more than 1,400 ATMs and
over 100 counters in Banking System at Vietnam.



Enjoy all financial services, cardholder preferential policies from Dong A Bank.



Special beneficiary service policies from DongA Money Transfer Company.

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According to Customer Service Department’s Annual Report, the proportion of sales of the
DongA Money Transfer's services from 2017 to 2019 shows that home services always
account for the highest proportion from 62 to 68% of total sales. This shows that, in order to
develop in the coming time, Dong A Money Transfer Company needs to focus on developing
into main service and bringing many profits. In addition, people development is a resource to

perform services with customers to bring reliability, quality and professional. With the
current competitive advantage of professional services, efficient and advanced technology,
DongA Money Transfer has the potential to further develop in future compared to
competitors.

Chart 1: the proportion of sales of DongA Money Transfer's services from 2017 to 2019

4.2. DONGA MONEY TRANSFER ORGANIZATIONAL STRUCTURE
4.2.1. Company organizational chart

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The organizational structure of the company is presented as below:

Figure 1. Organization chart of DongA Money Transfer Company

The organizational structure of DongA Money Transfer Company is divided into section:
business and operating divisions including the head office in Ho Chi Minh City and its
branches in Nghe An, Quang Binh, Thanh Hoa. For Customer Service Department, the
employees work at head office (Ho Chi Minh City) and DongA Bank's 43 branches
nationwide.
There are 336 employees in DongA Money Transfer’s total organizational structure. These
336 people are divided into 6 departments and 3 branches, each department, branch plays a
crucial role in the organizational process producing product outcomes.
4.3. SYMPTOMS
4.3.1. SYMPTOM 01: Business performance of DongA Money Transfer does not
reach the target in 2019:

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Targets

1. Sales payment turnover

Unit

Actual in

+/- compare with

2019

plan

Plan

mil USD

1,705

1,485

87.1%

mil USD

1,000

974

97.4%

mil USD

36.0

46.8

130.0%

Billion VND

12

10.4

86.7%

2. Home delivery service
turnover
3. Foreign currency exchange
4. Revenue before tax

Table 1: Results of implementing targets of DongA Money Transfer in 2019
According to data from Business Development Department of DongA Money Transfer, sales
payment turnover only achieved 1,485 million USD that was equal 87.1% plan in 2019.
Although home delivery is main service, this turnover remarkably achieved 97.4% of plan
with 974 million USD. Profit in 2019 was VND 10.4 billion, only reached 86.7% of the plan.

Foreign currency exchange is only index exceeding the plan with 46.8 million USD reaching
86.7%.

Targets

Unit

Actual in

+/- compare with

2019

plan

Plan

1. Home delivery service
mil USD

1,000

974

97.4%

mil USD

278

243

87.4%

mil USD

427

268

62.8%

turnover
2. Cash pick-up service
turnover
3. Bank transfer service

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Total revenue

mil USD

1,705

1,485

87.1%

Table 2: Total revenue results of DongA Money Transfer in 2019
Ignoring to the elements of business strategy and economic situation, human resource factors
and performance of employees are also evaluated as factors that contribute to the reduction of
business efficiency.
4.3.2. SYMPTOM 02: Low employee performance of Customer Service Department
in 2019.

Figure 2: KPI Results of DongA Money Transfer Company in 2019
According to above figure, the highest number of people meet low performance belonged to
Customer Service Department (15 headcount target lower than 50%, 125 headcounts reach
50% - below 70% KPI, 75 headcounts get performance from 70% - below 90% KPI, 75

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headcounts get performance from 70% - below 90% KPI, 52 headcounts reach from 90%100%, and just only 02 headcount fulfill 100% commission in KPI).
Customer Service Department includes employees who work directly with customers such as
payment transactions for customers through company's services (cash at counters, home
delivery and account banks), resolving inquiries and complaints from customers via call
center, acting as a focal point to handle customers' transaction information with partners,
supervising service quality of tellers. So this is considered the most important parts in the
company because it is directly contact with customers, creating the reputation and service of
the company.
Customer Service Department has 269 employees, accounting for more than 80% of the
company's total employees. This shows that the performance of Customer Service
Department’ employees can affect to Company's business results.

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Figure 3: KPI Results of Customer Service Department in 2019
According to this figure, Home Delivery Staff and Teller have low KPI results compared to
other position. In which Home Delivery Staff has 14 people reaching KPI from 90% to below
100%, 107 people achieving from 50% to 70% and 15 people under 50%, especially without
people reaching 100%. For Teller, there are 8 people reaching result from 90% to below
100%, 22 people achieving from 50% to 70%. At DongA Money Transfer Company, Home
Delivery Staffs and Tellers are the main force for direct communication and dealing with
customers. Therefore, the performance of this team is also a measure of customer
satisfaction.
According to Parasuraman, Zeithaml & Berry as cited by Angelova et al (2) indicated that the
profitability and customer satisfaction are closely related, the higher satisfaction will bring
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the higher profits for the company. Therefore, Customer Service Department’s employees
have an important role to bring satisfaction when they work and communicate directly with
customers. With low KPI result of Customer Service Department’s employee is one of
factors leading to business results not reach the target in 2019.
V. PROBLEM IDENTIFICATION
With the limit of time and cost of the solving problem project, this study will find the main
reason of Customer Services Department’s KPI Results (focus on Home Delivery Staffs and
Tellers) and suggest solutions and prove them efficient in applying into company’s problem.
I conducted in-depth interviews (appendix 1) with the related employee of different groups
such as: Head of Customer Services Department, HR Manager and some low performance
employees. It is included:
Table 3: Problem identification - Interviewees list
No

Full name

Position

Department

1

Mr. Nguyen Tuong Tan

Head of Customer Service Dept.

Customer Service

2

Ms. Tran Thu Hang

Customer Transactions Team leader

Customer Service

3

Ms. Bui Tuong Oanh

Customer Care Team leader

Customer Service

3

Ms. Le Thi Hong Nhung HR Manager

HR & Admin

4

Mr. Ngo Hoa Huy

Teller

Customer Service

5

Ms. Tran Thuy Vy

Teller

Customer Service

6

Mr. Chau Quoc Dat

Home Delivery Staff

Customer Service

7

Ms. Nguyen Dinh Ly

Home Delivery Staff

Customer Service

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5.1. PROBLEM 01: KPI Evaluation system is unsuitable

At DongA Money Transfer Company, financial indicators in KPI evaluation system will be
built based on the strategic goals and assigned by DongA Bank every year.
The KPI template is built with the following key criteria: financial, operational and
compliance. For each major criterion, there are detailed measurement levels for each
position. However, Customer Service Department’s positions have not detailed quantitative
criteria to evaluate similar to business division.
Based on Mr. Ngo Hoa Huy said that financial indicators of sales allocated to employees in
2019 increased 15% compared to 2018 though the sales results in 2018 did not reach the
target.
Ms. Nguyen Dinh Ly shared that results of individual’s tasks: there are no detailed
evaluation criteria for employees. There is no additional reward offered when results exceed
the target.
According to Paramenter (3), a feasible KPI must ensure SMART criteria:
Specific: Indicators when elaborating need to explain three aspects: meaning, reasons for
selection and methods of measurement. The clearer KPI makes it easier for employees to
know what to do and how to achieve the desired job performance.
Measurable: For KPIs that do not measure the performance of the work, the evaluation will
become emotional and not objective.
Achievable: There are many KPIs that are measured but not feasible that will create

frustration and lack of motivation to work when employees find it hard to achieve the goal
despite trying their best.

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Relevant: This is a measure of the balance between the ability to perform against the
resources of the business (time, personnel, money ...).
Timed: Defining deadlines will motivate employees to get the best work done.
Besides, I also asked about the process of setting up and assigning KPIs to employees with
HR Manager. Ms. Le Thi Hong Nhung confirmed that the KPIs evaluation process and
criteria as following:
KPI implementation steps at DongA Money Transfer
Step 01: Set up KPI of company


KPI will be built based on the strategic goals, financial targets assigned by DongA
Bank every year. After receiving the company's targets from DongA Bank, BOD will
require HR team to set the financial indicators in KPI evaluation.

Step 02: Set up KPI for departments and individual


HR team with managers will set goals and KPIs of department and individual
associated with the description of functions, tasks of the department, job description
of each position on the basis of goals and KPIs of company. KPIs are set and unified
clearly demonstrating the roles of middle management, professional / implementation
staff, related persons.

Step 03: Implement KPI for employees



HR team sends KPI assessment form and approved criteria to departments and
employees for monthly implementation. The implementation of KPI ensures
compliance with the corporate governance principles associated with compliance with
the processes.

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Every month, managers review KPI of the staff then sends it to HR team for synthesis as a
basis for year-end reward. Managers are responsible for monitoring, reevaluating and
improving the criteria and recommending required human resources, finance, tools and
equipment needed to make these tasks more efficient.
KPI Evaluation Criteria
Financial Indicators
Company often concerned about the profits business achieves in certain periods. Therefore,
financial measures are always first. Financial indicators in DongA Money Transfer often
focus on:
Sales payment turnover;
Home delivery service turnover;
Foreign currency exchange
Revenue before tax.
The proportions of the above indicators are assessed differently with the influence of each
position. The positions of the operating division have lower financial proportion than
business division.
Operation Indicators
There are two main evaluation criteria: Results of the department’s tasks and Results of
individual’s tasks.
Results of the department’s tasks are evaluated based on the work plan completion

percentage of that department / branch. Each position has a different proportion based on
rank.

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Results of individual’s tasks are assessed based on the completion percentage of the
employee’s tasks.
Compliance Indicators
This indicator is used to measure & monitor the indicators and requirements of critical
processes within the enterprise towards customers, including: Regulatory compliance of
business processes and Compliance with Company Rules and Policies.
5.2. PROBLEM 02: Lack of motivation

Currently, KPI Evaluation form of DongA Money Transfer only has three key criteria
(financial, operational and compliance) and lack of training and development indicator.
Employee training courses will be assessed based on the test result score but not apply in KPI
criteria. Besides, HR Department has not yet established evaluation criteria to upgrade
positions so career path of each position is still unclear.
Ms.Tran Thuy Vy said that “For me, the current KPI assessment form does not have training
and development indicators so I don't have motivation to focus on corporate training
programs.”
Beside, Ms. Nguyen Dinh Ly shared that there are not development criteria in the KPI form
so we don't know which criteria to evaluate to upgrade our job position. There are no clear
standards for evaluating staff, senior executive or management levels.
According to R.Kaplan (4), the aspect of learning and development includes three key
elements: Employee capacity; Capacity of information systems; Motivation for developing,
assigning responsibility, connecting ability. The element of learning and development is
vitally important for employee adaptation to change in present and prepare for future.

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Employee satisfaction is the foundation to improve employee productivity and retain
employees in order to bring greater output to the company.
5.3. PROBLEM 03: Low employee satisfaction
Based on Mr. Chau Quoc Dat: “Employees are not allowed to discuss and exchange ideas
with management before assigning targets of the year”.
Ms. Tran Thu Hang: “Manager does not communicate details about the evaluation of sales
and financial indicators”
Ms. Bui Tuong Oanh: “Our salaries have not been paid at KPI rates and no other additional
benefits if the target is exceeded”
Management often tends to deliver many targets and requirements at a high level. While
employees expect to assign few targets that are easy to implement and have attractive
remuneration when completing the targets. The negotiation process aims to:
Ensure employees in the organization understand the meaning of KPIs and assign
responsibilities to each relevant level.
Ensuring the implementation of the strategy and goals of the company is supported by
employees and increases the motivation to complete the targets.
Balancing the interests of the enterprise with the capacity, responsibility and interests of the
individual (management level, implementer and stakeholders);
Consistent with the actual internal conditions (resources, mechanisms, ...) and external
business environment (opportunities, challenges, …) of the business.
Employee satisfaction relates to attitude and emotion, defined as a pleasurable or positive
emotional state resulting from the appraisal of one’s job or job experiences (5)

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Communication, group dynamics, and teamwork between departments are important

components for teamwork effectiveness and the decision-making process (6). Such
communication barrier decreases workflow efficiency, consequently, impact internal
performance, including timeliness with unnecessarily lengthened steps or errors during the
workflow. As a result, an agency’s performance in the client’s mindset is affected, increasing
customer dissatisfaction and complains (7). Similar to an easily won tug of war, one side
pulling for information and one side letting go of the rope towards active sharing, it creates a
negative situation in some teams under supervision, affecting KPI achievement.
5.4. PROBLEM 04: Personal issues
According to Shah (8) claimed that personal reasons defined as several causes relate to
health, family issues, education conditions of children and social status which can lead to
performance of employee in individual organization. In terms of this criteria, health matter,
relocation, attending military service, start-up or another family issue are the main drive.
Personal reasons also showed ability adapt with new working conditions if employees cannot
fit with this environment, they will easily to change job.
Mr. Nguyen Tuong Tan said that home delivery employees are often on the go, so their
health is also affected by the quality of their work. In addition, most of the company's tellers
are female, so they are also influenced by families (eg. taking care of children, housework,
etc.).
Ms. Tran Thu Hang conformed that customer care staffs rarely have conversations with
manager or team leader about the ability to perform the assigned tasks or the difficulties that
need guidance to be highly effective at work.

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Work-life balance management is vital in maintaining and increasing mental healthier and
working spirit. It also has serious effects on retention, commitment, absenteeism, and
productivity (9), consequently decreasing engagement and performance to the job.
5.5. Problem validation
After analyzing many aspects of symptoms through face-to-face interviews with related

departments and literature studies, DongA Money Transfer Company faced four issues:
-

KPI Evaluation system is unsuitable

-

Lack of motivation

-

Employees do not satisfaction

-

Personal issues of employees

KPI evaluation system unsuitable could have negative impact to employee performance
result of DongA Money Transfer Company.
According to interview, KPI evaluation is the main factor lead to low performance result. A
key performance indicator is a measurable value to demonstrate how effectively a company
is achieving key business objectives. Organizations use KPIs at multiple levels to evaluate
their success at reaching targets. High-level KPIs may focus on the overall performance of
the business, while low-level KPIs may focus on processes in departments such as sales,
marketing, HR, support and others.
Organizations succeed or fail based on their capability to set, track, and enforce key
performance indicators (KPIs). KPIs are widely considered as measures by which businesses
evaluate whether their actual performance is in line with their strategic business goals.
However, if an organization’s KPIs can’t be easily tracked, quantified, and tied to an
organization’s bottom line, then it will not deliver the intended result.

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