Luận văn thạc sĩ UEH ineffective leadership style in sale department at CADIVI company

UNIVERSITY OF ECONOMICS HO CHI MINH CITY

International School of Business

----------------------------

PHAN NGUYEN THU HANG

INEFFECTIVE LEADERSHIP STYLE

IN SALE DEPARTMENT

AT CADIVI COMPANY

MASTER OF BUSINESS ADMINISTRATION

Ho Chi Minh City – Year 2018

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UNIVERSITY OF ECONOMICS HO CHI MINH CITY

International School of Business

----------------------------

PHAN NGUYEN THU HANG

INEFFECTIVE LEADERSHIP STYLE

IN SALE DEPARTMENT

AT CADIVI COMPANY

MASTER OF BUSINESS ADMINISTRATION

SUPERVISOR: Dr. Pham Phu Quoc

Ho Chi Minh City – Year 2018

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TABLE OF CONTENT

ACKNOWLEDGE ..................................................................................................................................... 1

EXECUTIVE SUMMARY ........................................................................................................................ 2

CHAPTER I: INTRODUCTION ABOUT CADIVI COMPANY AND RECOGNISED SYMTOMS

WITHIN SALE DEPARTMENT.............................................................................................................. 3

1.1 Background of CADIVI company ................................................................................................. 3

1.2 Symptoms of problem in Sale Department at CADIVI company: high turnover rate ............. 5

CHAPTER II: PROBLEM IDENTIFICATION IN SALE DEPARTMENT AT CADIVI................. 8

2.1 Potential problems in Sale Department......................................................................................... 8

2.2.1 Interview results............................................................................................................................ 8

2.2.2 Initial cause- effect map .............................................................................................................. 11

2.2.3 Theoretical framework ................................................................................................................ 13

2.2.4 Updated cause- effect map .......................................................................................................... 14

2.2 Problem Justification .................................................................................................................... 16

2.2.5 Central problem: Ineffective leadership style.............................................................................. 16

2.2.6 Definition of central problem- ineffective leadership style ......................................................... 17

2.2.7 Justify the existence of problem: ineffective leadership style ..................................................... 18

2.2.8 Justify the importance of problem: ineffective leadership style .................................................. 19

CHAPTER III: CAUSE VALIDATION................................................................................................. 23

3.1 Identification of potential causes.................................................................................................. 23

3.1.1 Poor attitude and personality of leaders ...................................................................................... 23

3.1.2 Soft-Skills shortage ..................................................................................................................... 23

3.1.3 Poor leader-follower relationship................................................................................................ 24

3.2 Final cause-effect map................................................................................................................... 25

3.3 Causes validation of real problem: ineffective leadership style ................................................ 26

CHAPTER IV: SOLUTION ANALYSIS.............................................................................................. 28

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4.1 Theoretical framework ................................................................................................................. 28

4.2 Short-term solution: Improving leader-follower relationship................................................... 29

4.3 Long-term solution: Solution for training, emphasizing soft skill and enhancing leader

relationship ................................................................................................................................................ 31

4.4 Solution Comparison: short-term solution and long-term solution.......................................... 32

CHAPTER V: SELECTED SOLUTION AND CHANGING PLAN................................................... 34

5.1 Selected long-term solution........................................................................................................... 34

5.2 Details plan for long-term solution .............................................................................................. 34

5.2.1 Criterion set of this plan:............................................................................................................. 34

5.2.2 Action plan .................................................................................................................................. 35

5.2.3 Cost-benefit analysis of this comprehension plan ....................................................................... 37

5.3 Changing plan................................................................................................................................ 38

CHAPTER VI: SUPPORTING INFORMATION ................................................................................ 40

6.1 Questionnaire development to justify central problem.............................................................. 40

6.2 Questionnaire development to justify causes.............................................................................. 41

APPENDIX................................................................................................................................................ 43

REFERENCES ......................................................................................................................................... 61

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LIST OF FIGURE

Figure 1: CADIVI structure........................................................................................................................... 4

Figure 2: Turnover rate in Sale Department from 2015 to 2018 ................................................................... 6

Figure 3: Turnover rate of 4 main departments at CADIVI in 6 first monthsin 2018 .................................. 7

Figure 4: Initial Cause- Effect Map............................................................................................................... 12

Figure 3: Updated Cause-Effect map ............................................................................................................ 15

Figure 6: Customer Satisfaction .................................................................................................................. 22

Figure 7: Final Cause-Effect map ............................................................................................................... 26

LIST OF TABLE

Table 1: Turnover rate in Sale Department from 2015 to 2018 .................................................................... 6

Table 2: Turnover rate of four main departments at CADIVI in 6 first monthsin 2018............................... 6

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Page 1

ACKNOWLEDGE

I would like to express my great appreciation and endless thank to my supervisor, Dr.

Pham Phu Quoc, who has kindly supported, guided, motivated, and given me loads of

advances during the time writing this thesis. His encouragement and comments

significantly help me to fulfill this. Without his support and instructions, this thesis

would have been impossible to be done effectively.

In addition, I would like to approve my special gratitude to my family and all friendsin

MBUS 7.1 for encouraging me, caring and giving me strength in all the time writing

this thesis.

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Page 2

EXECUTIVE SUMMARY

This study has talked about the case in Sale department within CADIVI with the

symptoms of the high turnover rates in the first six months in 2018. Based on the

interview result and theoretical framework, ―ineffective leadership style in Sale

Department at CADIVI‖ is the central problem that sale department needs to solve.

Ineffective leadership has been the great attributes to retention rate because of

significant role of the leader in the way their staff devote their time, efforts, commitment

and extend their support to achieve organizational goals. Therefore, if turnover rate

reduced, it could help to increase employee satisfaction, high performance and

productivity. In this thesis, leader personality, lack of soft-skill training, leadership￾followers relationship and gender-related leadership are listed as potential causes ofthe

problem in Sale Department. According to cost-benefit analysis between two solutions

as short-term and long-term, long- term solution selected as suitable solution, which

could improve soft-skill of leaders and enhance leadership relationship in sale

department. With the detailed action plan and combination between sale department and

HR department, the situation of sale team is expected to be solved in near future. The

cost for this plan is approximately 80 million VND each year but it expected to reduce

the cost for recruit and train news replaced and the lower customer satisfaction.

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