BACKGROUND INFORMATION
Company background
Founded in Thailand in 1963, Srithai Superware expanded to Vietnam in 1996, establishing a joint venture named Vietthai Industrial Plastic Co Ltd in Ho Chi Minh City In 2005, the company relocated its headquarters and factory to Binh Dương province Today, Srithai operates three factories in Vietnam, with two located in the southern region and one in the north.
Srithai has more than 20 year’s experiences in Viet Nam with 46 Injection Machines and 20 Compression Machines The capacity is plastic 2.500 Tons/year, beverage 8.000 Tons/year, household 500 Tons/year
Srithai is one of the leading manufacturers and distributors of three products group below: Industrial Plastic Product, Food & Beverage Packaging and Melamine
Tableware They do business with huge giant in plastic industry such as GS battery, Pinaco, Suntory Pepsi, Sapporo, Jotun, etc…
The business vision of Srithai Vietnam Co Ltd is using quality products and services to achieve customer's complete satisfaction, thereby ensuring company profitability and sustained market growth
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Company symptoms
1.2.1 The method of scan symptom
The research started from researching KIP of Plastic sales department There are five group of products such as Original Equipment Manufacturer (OEM), Material
The thesis focuses on the Material Handling Equipment (MHE) group, primarily dealing with plastic pallets and containers imported from Srithai Superware Thailand Srithai Vietnam began trading these products in June 2015, securing its first customer by mid-2016 after a year of outreach Although the MHE group met its targets in 2017, data analysis revealed a significant profit loss This prompted numerous meetings among the Sales, Purchasing, and Finance departments starting in early 2018 to identify the causes and develop corrective actions and solutions.
In the first half of 2018, a significant disparity emerged between the sales budget and actual revenue, affecting not only the MHE group but also other teams The sales budget was projected based on 2017's actual sales and customer forecasts for 2018, leading the management board to raise two critical questions: why is there such a large discrepancy between the 2018 sales forecast and actual returns, and what strategies are in place for the third and fourth quarters to recover from the revenue decline experienced in the first half of the year?
2018 Thus, the research starts from the history data such as sales report, profit report and customer’s satisfaction survey report, references from sales, finance and ISO department
1.2.2 Justify the importance of symptoms
A business runs because of many purposes Goldman et al researched that
Business organizations are integral to society, existing to serve and enhance its development Their fundamental purpose lies in the continuous production of goods that meet societal needs while fostering ongoing learning and improvement Additionally, modern theories emphasize that a key objective of organizations is to achieve sustained long-term profits, ultimately maximizing returns for shareholders and investors.
In today's rapidly evolving business landscape, both practitioners and the general public recognize that profit is crucial for a company's survival and growth Organizations must continuously adapt and reinvent themselves to thrive amidst fast-paced technological advancements and disruptive innovations like smartphones, e-commerce, and Industry 4.0 Companies that proactively embrace these changes and swiftly re-invent themselves will gain a competitive advantage, while those that fail to adapt risk mediocrity or, worse, complete failure.
A decline in a company's profits significantly affects all aspects of its operations Identifying the reasons behind this profit reduction is crucial; failure to address these issues promptly can jeopardize the business's survival in today's rapidly changing environment.
Customers are the cornerstone of any business, as their presence is essential for a company's survival Consequently, many organizations allocate substantial resources to understand customer needs and behaviors, aiming to enhance their satisfaction Customer satisfaction is crucial for assessing a company's strengths and weaknesses, providing valuable insights for improvement Ultimately, a company's ability to thrive depends on its responsiveness to customer feedback and evolving preferences.
Dawson highlighted the critical role of an organization's knowledge capabilities in navigating the dynamic competitive and market landscape He stated, "Effective real-time development and implementation of strategy—essential for organizational success—depends completely on the organization’s knowledge capability." This implies that an organization's effectiveness is directly tied to its knowledge capabilities, underscoring the necessity for improvements to stem from a clear understanding of these capabilities.
1.2.3.1 The first symptom: Low Customer’s satisfaction
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Figure 1: The average customer’s satisfaction in 2017 and 2018 of importing products group
Source: Customer’s satisfaction index report 2018, ISO department
The ISO department will conduct a customer satisfaction survey in the middle of the year, focusing on four key areas: product quality, after-sales service, delivery efficiency, and the knowledge of the sales team.
From 2016 to 2018, Srithai engaged in the import trade and conducted a customer satisfaction survey over the same period The results indicate that customers were generally satisfied with product quality, delivery service, and the knowledge of sales representatives However, dissatisfaction with the company's delivery service was notable, with 45% of customers expressing disappointment in 2017 and 50% in 2018 Specifically, in 2017, Srithai successfully delivered 30 out of 91 orders on time, while in the first two quarters of 2018, only 10 out of 38 orders were delivered punctually.
In 2018, a significant portion of late delivery orders was attributed to various projects, including supplying pallets to major clients like Suntory Pepsi, MM Mega Market, Nestle, and Mondelez Kinh Do, as well as providing containers for Big C, Pharmacity, and Bach Hoa Xanh.
Quality of product Delivery After delivery service Salesman's knowledge
Customer satisfaction of importing products group
In the import sector, late deliveries typically range from 7 to 20 days, which is considered standard The overall lead time for imported products, including potential delays, is approximately 30 days from the release of the purchase order Notably, Srithai exhibits the longest lead time for delivery compared to its competitors in the industry.
Figure 2: Delivery lead time of Srithai, Dino and Platinum
Source: Internal meeting minutes of Sales department in January 2018
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1.2.3.2 The second symptom: Gross profit decreases
Figure 3: Sales and %Gross Profit of Plastic Business Quarter 1, 2 in 2017, 2018
Source: Finance report in July 15 th 2018
The figure 3 shows the big gap between revenue of quarter one and two in 2017 and
In 2018, actual sales during the first half of the year deviated significantly from initial forecasts Specifically, the sales and gross profit of imported products mirrored the trends observed in the plastics business, both showing a notable decline compared to 2017.
Figure 4: Sales and Gross Profit of import products group quarter 1, 2 in 2017,
Source: Finance report in July 15 th 2018
1.2.3.3 The third symptom: High failing projects rate
In 2018, the Material Handling Equipment group faced significant challenges, with a project failure rate exceeding that of 2017, resulting in a 50% failure rate among existing customers Major clients such as ABI Bev, MM Mega Market, and Suntory Pepsi shifted to competitors like NPC Toda and Long Thanh Company Additionally, daily customers like Kureha and SABMiller ceased orders due to prices being too high compared to market rates Despite the MHE team's efforts to engage an average of five new customers each month, they encountered difficulties in the low pricing process, exemplified by Asia Saigon Foods, which sought 10,000 plastic pallets.
Jan Feb Mar Apr May June
Sales & GP of importing products group
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Srithai Superware's quotation speed and lead time are significantly slower than those of competitors like Platinum and Dino While Srithai Superware takes an entire week to generate a quotation, competitors such as Dino can complete the process in just twenty-five minutes.
(sources: meeting minutes of sales department in March 2018) Moreover, about lead time of delivery, Dino has just taken fifteen days while Srithai needs near forty days
There is currently no official commitment import process between Srithai Vietnam and Srithai Thailand, making it challenging to manage orders and address issues as they arise.
PROBLEM IDENTIFICATION
Methodology
To identify the core issues, four research methods will be employed, with in-depth interviews being particularly suitable due to the small number of employees in sales, purchasing, and finance, which is under thirty This method allows the interviewer to delve deeper and obtain comprehensive responses, as respondents often feel more at ease expressing themselves Additionally, in-depth interviews enable the interviewer to capture the emotions and behaviors of respondents, facilitating the detection of truthfulness and allowing for adjustments in the interview approach if respondents show signs of discomfort.
Identifying and Diagnosing Tentative Problems
Purpose: The research focus on MHE group consisted plastic pallet and container those in imported from Thailand There are three specific purposes:
Which reasons make profit decrease in period 2017 and 2018
Low customers ‘satisfaction in period 2017 and 2018
High failing project in in period 2017 and 2018
Method: Qualitative research- In-depth interview
Three experienced managers from Srithai, each with over five years of tenure, have been selected for an interview due to their in-depth knowledge of the company's operations and activities at Srithai Viet.
Nam's management policy and director style significantly influence employee performance and relationships within the company and with the parent company in Thailand They possess comprehensive knowledge of Srihai Company, which enhances their operational effectiveness.
The depth interview will be taken from July 27th, 2018 to July 30th, 2018 with three respondents from three departments in Srithai Vietnam as below:
No Full name Position Date
1 Nguyen Ngoc Thanh Finance Manager July 27 th 2018
2 Puripong Pinanong Sales Manager July 28 th 2018
3 Nguyen Thi Le Purchasing Manager July 29 th 2018
Table 1: The first depth interview arrangement Research findings
Having worked with Srithai Company for several years, I appreciate its supportive company policies that foster a positive working environment The management style is approachable and encourages open communication, which significantly enhances team collaboration Additionally, the employees exhibit a strong sense of camaraderie and professionalism, contributing to a motivated and productive workplace culture.
All respondents have five years of experience working at Srithai, which has provided them with valuable insights into its relationships, management, and policies Many noted that Srithai faces challenges with slow transaction processes and a weak caution system.
Le highlighted that the company's workload management is inefficient, as it fails to prevent issues before they arise Respondents noted the lack of accountability, with no specific individuals assigned to address particular problems, leading to a weak appraisal and punishment policy that does not foster fairness or improvement Additionally, Mr Puripong Pinanong pointed out that Srithai Company does not effectively empower its employees, resulting in a lack of engagement in their roles While employees complete their tasks, they show little concern for the work of their colleagues.
The working environment at Srithai Company is characterized by three key aspects Firstly, employees experience a low workload, which significantly reduces stress and pressure in the workplace.
The working environment at Srithai Company is hindered by three key issues: weak leadership from the management board, a lack of employee empowerment leading to decreased job engagement, and low morale among employees These factors contribute to an unhealthy organizational culture, which is crucial for fostering a successful learning organization A strong organizational culture is essential for the development and growth of the company, as it directly impacts employee motivation and overall productivity.
In the first half of 2018, a report indicated that the company experienced a decline in profits during 2017 and the initial months of 2018, particularly within the imported plastic sector This raises the question of the underlying factors contributing to the losses in the plastic import group over this year-and-a-half period.
Many candidates believe that Srithai Company faced significant challenges due to ineffective cost management Both Mr Puripong Pinanong and Mr Thanh noted that the company struggled during 2017 and the first half of 2018, citing high input and transportation costs Additionally, Ms Le pointed out that sales representatives were selling products below the break-even price, further exacerbating the company's financial difficulties.
The lack of collaboration between the sales and purchasing departments has led to untimely information updates, causing sales representatives to sell products below break-even levels The overlap in responsibilities between these departments has further complicated the situation Mr Puripong highlights that the slow importing process prevents the timely acquisition of input prices, which are crucial for setting competitive selling prices in the Vietnamese market As a result, salesmen often rely on outdated historical data for customer quotations, failing to account for fluctuations in raw material prices.
The purchasing department failed to provide timely and sufficient input to the sales department, while the finance department only offered analysis post-deal, lacking involvement in the quotation process and failing to alert the sales team to potential issues This highlights significant communication breakdowns between departments.
The 2018 customer satisfaction report from the ISO department reveals a concerning issue, with an on-time delivery rate of only 50% This low percentage raises questions about the underlying factors contributing to the problem What are your thoughts on the reasons behind this unsatisfactory performance?
Both the sales manager and purchasing manager acknowledged that a 50% on-time delivery rate is unsatisfactory, primarily due to the "complicated import process." There is minimal transaction activity between Srithai Vietnam and the parent company Mr Puripong highlighted that external factors, such as seasonal demand for trading pallets and containers, exacerbate the situation, particularly at year-end when demand peaks, straining the capacity of the parent company's factory He emphasized that the intricate and time-consuming import process leads to delays in obtaining input pricing and delivery, significantly undermining their competitive advantage in the market.
The importing process at Srithai Vietnam is characterized by three key issues Firstly, there is a lack of clarity regarding input information, particularly concerning the pricing and costs between Srithai Vietnam and its parent company, as highlighted by Mr Puripong’s statement that “the Mother company does not provide us with a price framework.” This ambiguity makes it challenging to establish a consistent pricing structure, as prices fluctuate based on raw material costs in the plastic industry Secondly, salesmen rely on historical data for quotations rather than current data, which can lead to inaccuracies in input pricing and increase the risk of logistical inefficiencies that may result in profit loss This situation also places salesmen in a difficult position, balancing customer demands with company objectives Lastly, there is a lack of seamless cooperation among the sales, purchasing, and finance departments, further complicating the importing process.
Consequences, each link of importing chain is not controlled effective
2.2.1 The first tentative problem: Ineffective internal communication
Initial cause-effect map was draw base on face-to-face interview three people, sales plastic manager, finance manager and purchasing manager
Complicated quotation In fact, importing process begins with asking quotation from
The process of obtaining information from the Mother Company can be lengthy, yet it is essential for salesmen to access accurate data for their customers To navigate this challenge, they frequently rely on historical data, as fluctuations in resin prices and currency exchange rates can significantly impact buying prices.
The real problem: Ineffective internal communication
The revised map highlights two significant challenges faced during face-to-face interviews in the sales, purchasing, and finance departments: ineffective communication and weak leadership These interconnected issues contribute to various complications, underscoring the importance of addressing them to enhance the interview process.
Effective communication is essential for all aspects of company operations and daily life, as highlighted by Hunjet et al Internal communication systems are crucial for gaining competitive advantages and enhancing performance However, Srithai Company struggles with an ineffective internal communication system, which negatively impacts daily activities, particularly in the product importing group The lack of formal commitment in the importing process allows employees to evade their responsibilities Additionally, poor communication fosters distrust among employees, leading to decreased collaboration This breakdown in logistics management results in uncontrolled costs and potential financial losses for the company.
Research by Hola, J indicates a strong link between internal communication and employee loyalty Effective communication unites all employees towards a common goal, enhancing competitive advantage and fostering a sense of meaningful work.
On the other hand, leadership is extremely importance for company However, it is very large impact on company and structure of organization in Srithai Company
Leadership encompasses both theoretical concepts and practical application in real life In the organization, all board members are Thai, and the structure is established by the parent company The leadership style is influenced by the knowledge, experience, and characteristics of the management board Consequently, the leadership of the Thai management team represents an external factor that Srithai Vietnam cannot influence or control.
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Lack of trust amongst employees
Slow importing process Unclear job description
Unclear KPI of profit and cost
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Problem definitions of ineffective internal communication
Communication can be defined in various ways, but it fundamentally involves a dialogue between a speaker and a listener aimed at conveying or persuading through the exchange of signals According to Hunjet et al., communication encompasses the sharing of information, ideas, and emotions through both verbal and non-verbal methods.
According to Zondi et al., internal communication is essential for any organization, serving as its lifeblood This type of communication involves the exchange of information among employees, which ultimately enhances both individual performance and overall organizational effectiveness.
Figure 7: The internal corporate communications process
Miller outlines an effective internal communication process in businesses, emphasizing the importance of informing employees, engaging in dialogue, and obtaining feedback However, Srithai Vietnam's internal communication system is ineffective due to low cross-departmental communication and poor policies that fail to support this system Additionally, unclear work processes allow employees to evade responsibilities Furthermore, the lack of empowerment and motivation hampers employee interaction, which is crucial for knowledge transfer and sharing Lastly, employees at Srithai are less likely to provide active responses and feedback due to a lack of trust and the perception that their opinions are not valued.
According to Hunjet et al (3), there are four part of internal communication in business:
Misunderstanding the term "communication" can lead to significant issues for managers Often, they mistakenly identify communication-related problems, which can result in mislabeling the actual issues at hand This misidentification creates an environment where managers may make incorrect decisions in addressing these problems Research by Minter highlights that communication comprises four key components, including communication channels, which are essential for effective problem-solving.
Ineffective internal communication within hierarchical structures at Srithai stems from three key aspects: communication attitudes, interpersonal communication behavior, and the overall communication culture Addressing these issues is essential for fostering a more effective communication environment.
Verifying the importance of ineffective internal communication
During two interviews, it could be said that ineffective internal communication is happening in Srithai Company First evidence is control in-put price of importing
Mr Puripong Pinanong, the sales manager, highlights a critical gap between the sales and purchasing departments, noting that the responsibility of requesting quotations from Srithai Thailand lies with purchasing However, due to the urgency of Vietnamese customers who cannot afford to wait for pricing, the sales team often bypasses this process This practice results in delayed pricing for salesmen, ultimately diminishing the company's competitive edge, especially as competitors operate with greater speed and efficiency.
Second evidence is weak to control cost lead to decrease bottom profit of importing products group Sales, purchasing and finance department work quite separately Ms
There are infrequent interdepartmental meetings, often convened only when significant issues arise This lack of regular collaboration results in departments not sharing relevant information, leading to prolonged and inefficient import processes.
Verifying the existence of ineffective internal communication
Effective internal communication serves as a vital tool for connecting employees with the company, significantly enhancing the organization's reputation, according to research by Holá, J.
Word-of-mouth marketing is often more effective than traditional methods, as poor internal communication can negatively impact a company's work environment When relevant information fails to reach the right individuals in a timely manner, productivity and efficiency decline This breakdown in communication also affects employee relationships and overall job satisfaction, which can extend to external communications and the company's reputation Ultimately, the consequences of ineffective internal communication can harm both internal operations and the company's external performance.
Declining employee satisfaction and productivity are closely linked to ineffective internal communication Research indicates that weak organizational communication can lead to low employee commitment, reduced satisfaction, higher turnover rates, and diminished productivity, as highlighted by Abugre, J B Furthermore, a positive correlation exists between employee satisfaction and organizational profitability, as noted by Fletcher, M Consequently, poor internal communication can trigger a chain reaction that negatively impacts a company's overall performance.
Holá, J also indicated many results of unproductive internal communication such as
“High rate of employee turnover (fluctuation);
Ineffective coordination of all activities of the company;
Failing to reach the company’s target;
Purpose: Finding evidences for proving importance of existence problem
Mr Puripong Pinanong and Ms Tran Thi Tuyet were selected for the interview due to their managerial experience and five years of tenure at Srithai, providing them with valuable insights into the company's operations The organization faces challenges such as high turnover rates, low employee satisfaction, and diminished productivity, all of which are linked to human resource management issues Mr Puripong is particularly well-suited for this interview, as his perspectives on the company's performance and reputation will contribute significantly to the research findings.
The depth interview will be taken from August 15th, 2018 to August 18th, 2018 with two respondents from two departments in Srithai Vietnam as below:
No Full name Position Date
1 Tran Thi Tuyet HR department manager August 15th, 2018
2 Puripong Pinanong Sales Manager August 16th, 2018
Table 3: The third depth interview arrangement
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The reputation of the company has been significantly harmed, particularly affecting the profit of the importing group over the past two years Sales figures for the first and second quarters of 2018 show a decline, and this downward trend is expected to continue The budget for 2018 diverges considerably from actual sales, which has adversely impacted the overall performance of Srithai Vietnam, especially within the Material Handling Equipment group Mr Puripong Pinanong emphasizes that this decline in performance will negatively influence the company’s reputation, leading to a reduction in investment capital from equities.
Ineffective internal communication can lead to a poor working environment, significantly affecting new employees Essential documents that outline company policies, history, strategies, and job descriptions are crucial for helping newcomers adapt quickly and effectively to their roles Providing this relevant information ensures that they have the foundational knowledge necessary for success within the organization.
Support from colleagues is crucial for newcomers, as it fosters a collaborative and encouraging work environment A positive atmosphere not only enhances employee morale but also drives exceptional performance within the company Conversely, a negative work environment can hinder organizational activities and overall productivity.
Reducing productivity of employees, employees’ satisfaction and increasing rate turnover Secondly, internal communication in Srithai Viet Nam is not fluent
At Srithai, the lack of individual accountability leads to a culture of blame among employees, undermining teamwork and morale This toxic environment diminishes employee productivity and satisfaction, ultimately resulting in higher turnover rates.
Causes and Effects chart of real problem: Ineffective internal communication in
Different language Nowadays, economic integration is a trend of economic global
Many multinational corporations, such as Pepsi, Coca-Cola, Apple, and Samsung, operate subsidiaries across various countries, benefiting from cost savings in labor, taxes, and distribution networks However, these advantages come with challenges, including cultural conflicts, communication barriers, and legal issues Research indicates that language significantly influences management decisions within international enterprises In these organizations, the processes of knowledge transfer and sharing are crucial, with internal communication serving as a vital tool Consequently, language plays a pivotal role in transferring knowledge and strategies from the parent company to its subsidiaries Additionally, studies reveal that language differences can create substantial barriers to building trust within diverse teams, impacting overall collaboration and effectiveness.
Srithai Vietnam context about transfer strategy from Mother company and relationship between Thai bosses and subordinates
Inadequate employee motivation can significantly impact a company's success, as highlighted by Grynko's research, which emphasizes that well-motivated employees are essential for a thriving organization Employee motivation encompasses both external factors, such as salary, benefits, and bonuses, and internal factors, including job satisfaction, enjoyment, challenges, and recognition In the case of Srithai, the lack of adequate motivation is particularly evident in the internal aspects, where employees feel unsatisfied, unappreciated, and unrecognized for their efforts.
Weak teamwork skills hinder effective collaboration in today's rapidly changing environment Successful teamwork relies on the collective knowledge, skills, and attitudes of each member to achieve shared goals The effectiveness of a team is determined by the quality of interactions and the integration of individual contributions Consequently, weak teamwork skills indicate that members struggle to connect and collaborate effectively, ultimately impacting the team's ability to accomplish its objectives.
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Weak individual leadership Individual leadership is call personal leadership
Personal leadership is considered as a significant element in management today(19) Freidman defied personal leadership through a person have leadership vision
Leadership vison concentrates three factor as the importance thing, living goal and desire(20) According to Klagge, personal leadership emphasized four aspects such as
“mental, emotional, volitional, physical and spiritual boundaries”(19) In specific, he also demonstrated characteristics of personal leadership behaviors as:
use of facts and data;
Weak individual leadership in organizational area in Srithai is expressed clearly during previous analysis They are irresponsibility, finger-point together and explanation for their faults often.
ALTERNATIVES ANALYSIS AND POSSIBLE SOLUTIONS
Verify causes of the real problem
Purpose: Exploring causes of real problem: ineffective in internal communication in Srithai company
Mr Withawin Laohakivjtoon and Mr Do Quoc Tu were both well-suited for the interview At just twenty-seven years old and with over two years at Srithai, Mr Withawin's youth and dynamism are significant advantages His willingness to think critically and observe keenly makes him an ideal candidate, as he is still new to the company and open to learning about his career path without being influenced by established norms On the other hand, Mr Tu's twelve years of experience at Srithai provide him with extensive knowledge and valuable relationships within the organization, making his insights crucial for the thesis.
The depth interview will be taken from August 26th, 2018 to August 27th, 2018 with two respondents from two departments in Srithai Vietnam as below:
No Full name Position Date
2 Do Quoc Tu Assistant to Director August 27th, 2018
Table 4: The fourth depth interview arrangement Research findings
During of an interview, different language is not a real cause in internal Srithai
Miscommunication in transactions with importing orders in Vietnam poses significant challenges, often resulting in incorrect product manufacturing that fails to meet customer expectations and quality standards Such misunderstandings can lead to customers refusing to accept products and seeking contract fee reimbursements, ultimately damaging the company's reputation Mr Withawin highlighted that the key contact at the parent company, Srithai Vietnam, has limited English proficiency, which exacerbates the issue as all communications are conducted in English This language barrier not only affects the parent company but also places considerable stress on the MHE group, complicating the importing process further.
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Many employees struggle with teamwork skills, which hinders their ability to communicate effectively and resolve conflicts According to Mr Withawin, the quality of communication significantly impacts transaction and work quality, noting that employee morale is low, leading to minimal effort beyond basic job completion Mr Tu added that half of the employees have family ties, causing them to avoid open discussions and share their viewpoints Consequently, most employees tend to adhere strictly to their job descriptions, showing little concern for the overall process.
The interview revealed that Srithai's work environment suffers from inadequate motivation, primarily due to familial relationships among fifty percent of its employees While these connections foster a supportive atmosphere, they also create barriers to the company's development by leading employees to avoid addressing conflicts Mr Tu noted that the low spirit of support stems from a lack of motivation, as all employees receive the same salary regardless of their effort, with no bonuses or rewards Mr Thanh echoed this sentiment, describing the working environment as complicated with various benefit groups, which further complicates dynamics Additionally, Mr Tu pointed out that the prevalence of family relationships among employees often results in a reluctance to express differing opinions, leading to a culture where most employees merely fulfill their job descriptions without engaging in the process.
Weak leadership is a significant issue at Srithai Vietnam, as highlighted by Mr Withawin, who identified two types of weak leadership within the company He noted that departments operate in silos, leading to minimal collaboration on projects, which reflects the ineffective leadership of Thai members on the Board of Managers This sentiment was echoed by most interviewees, who acknowledged the tendency for departments to work independently Additionally, Mr Hai pointed out the low level of cross-communication among departments, further emphasizing the need for improved leadership and collaboration within the company Both Mr Withawin and Mr Tu concurred that the leadership from Thai members on the Board is lacking.
Manager are over sixty years old So, their style is more traditional, low dynamics and avoid risk” They depended too much on commands of Mother company
Weak individual leadership is prevalent not only among office employees but also within the Board of Management at Srithai Vietnam Mr Withawin noted that the influence of weak leadership from the Board leads to similarly weak leadership at lower levels, resulting in diminished individual leadership spirit He believes this has become ingrained in the company's culture over time, making it challenging to implement change Consequently, the interplay of these two forms of weak leadership hinders development at Srithai Vietnam Mr Tu emphasized that this weak leadership dynamic fosters a culture lacking in support, collaboration, innovation, and progress within the organization.
Main cause of the problem: weak individual leadership
In four interviews conducted with employees at Srithai Vietnam, three key characteristics emerged: strong empathy, a commitment to completing tasks as outlined, and a collaborative spirit However, the company faces significant developmental challenges, primarily due to a lack of clear accountability Ms Le highlighted this issue in the first interview, emphasizing the need for designated responsibilities to enhance overall performance and growth.
“The employees are not empowered so that they often wait for their bosses solving problems, they are not initiative to deal with their issues” She also mentioned that
“there is not specific person who responsible for specific problem The faults often belong to group”
Many interviewers at Srithai Vietnam noted that the working environment is unsatisfactory, despite a manageable workload that doesn't heavily burden employees Mr Tu highlighted a sluggish spirit of support, cooperation, and innovation within the company Additionally, Mr Withawin pointed out two critical factors affecting employee communication: the frequency and quality of interactions While the frequency of employee interactions is high, the quality of these communications remains low.
Final point is they often finger point and explain for their faults Those action are symptoms of avoiding responsibility Three points connect together create bad
The organizational culture at Srithai Vietnam poses significant challenges to sustainable growth and threatens the company's ability to survive in today's rapidly changing and unpredictable environment.
Weak individual leadership is a significant issue at Srithai Vietnam, primarily influenced by the Thai-dominated board of management and the organizational structure established by the Mother Company This external factor limits the company's ability to control its leadership dynamics Nonetheless, the board members, as employees of Srithai Vietnam, play a crucial role in shaping the company's direction Effective leadership is vital for organizational success, fostering a culture of learning and growth By cultivating a leadership spirit among all employees, Srithai Vietnam can achieve sustainable growth and success.
Figure 8: The final cause-effect map
Reducing enterprise’s reputation Weak individual leadership
Declining employees’ satisfaction, employees’ productivity
High rate of employees’ turnover
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Possible solutions
3.3.1 Solution 1: Applying ROFO principle in office departments in Srithai Vietnam
Introducing ROFO principle of Mr Ah Bee Goh, COO of Schaffner Thailand company
The content of ROFO principle is(21)
Mr Ah Bee Goh, COO of Schaffner, highlighted that ROFO serves as a profound management insight and a robust tool for addressing challenges Additionally, he noted that it acts as a valuable guiding principle for staff behavior.
Mr Ah Bee Goh emphasized that fostering employee ownership and self-motivation is crucial for achieving desired outcomes He highlighted the interconnectedness of three key factors: ownership, focus, and timely corrective action, which together create a continuous cycle that enhances cooperation and learning within the organization This ongoing process ultimately leads to improved collaboration and knowledge sharing among employees.
“outcome is attained with enthusiasm, passion and without blaming others”(21)
Key factors that can be achieved with ROFO in training, applying and reflecting are
Ownership Mindset o Once every staffs in the process own the process together Everyone takes their tasks seriously o There will be no more smart talk, excuses, finger-pointing and etc
Effective cooperation and trust are essential for team success, as shared ownership of processes fosters a unified team spirit The emphasis on resolving issues collaboratively, rather than assigning blame, promotes a positive work environment By addressing problems constructively and gently reminding colleagues to avoid repeating mistakes, organizations can cultivate trust and enhance future collaboration among staff members.
A willingness to learn mindset is essential for continuous improvement, as it involves a commitment to timely corrective actions and process enhancements By adopting the ROFO mindset, individuals can ensure that this learning process is sustained every day, fostering ongoing development and innovation.
In their article "Why Organizations Don’t Learn?", Gino and Staats identify key actions to overcome barriers to organizational learning, emphasizing the importance of addressing conditions that hinder progress.
Increase awareness and engage workers(22)
Encourage workers to own the problems that affect them(22)
Give workers different kind of experience(22)
Empowering workers to use their experience(22)
The actions align with the ROFO model, fostering a culture of learning and ownership among employees When each team member embodies leadership, it enhances the ROFO framework, cultivating an organizational environment rooted in trust and a commitment to continuous learning.
The solution proposed is specifically applicable to the case of Srithai Vietnam, drawing parallels with Schaffner's experience Schaffner operates globally, with facilities in locations such as Kecskemét (Hungary), Lamphun (Thailand), Shanghai (China), and Wytheville (USA) The introduction of ROFO in the Thailand factory marked a significant turning point, embodying the valuable lessons learned by Mr Ah Bee Goh throughout his career He emphasizes that people are at the heart of any transformation, as they are the catalysts for change Upon his arrival at Schaffner Thailand, Mr Goh observed a situation reminiscent of Srithai Vietnam's current challenges, characterized by a detrimental working environment that hindered both employee and company performance Long-standing negative behaviors, such as finger-pointing and a lack of accountability, had become ingrained in the culture at Schaffner Thailand, leading to a decline in productivity However, through focused efforts, Schaffner Thailand has since transformed into a model of strength and efficiency.
The case of ROFO implementation in Thailand has gained significant attention, particularly in the context of Schaffner Thailand and Srithai Vietnam This situation highlights the changes occurring in the region, emphasizing the interconnectedness of these two companies For further information, you can download the thesis at skknchat@gmail.com.
ROFO principles should apply in Srithai Vietnam case.
ACTION PLAN FOR SOLUTION
The purpose of applying ROFO principle in office depatments in Srithai Vietnam
ROFO is a set working principles (mindset) and by getting staffs to adopt this mindset as their own is, in effect, to create a new corporate culture
Leadership committed to Companywide training and learning keep staffs at all levels equipped with the appropriate knowledge required in successfully implementation of the intended Strategy
As can be seen in the table 1, timeline for each task will be applied in 2019 as follow:
The first step should be training for whole office employees of each department Mr
Ah Bee Goh has been invited to train employees at Srithai Vietnam, bringing his expertise in ROFO principles to inspire listeners He will also serve as a consultant during the implementation of these principles in 2019 The initial training session is scheduled for December 2018 to prepare for the company’s upcoming changes Following this, additional training will be conducted in the first quarter of 2019 by members of Srithai Vietnam's board of managers.
Action 2: Evaluating effectiveness of conducting ROFO principles
The effectiveness of implementing ROFO principles will be assessed through three methods The first method involves a comprehensive 360-degree evaluation conducted at the departmental level every three months, highlighting overall improvements within the office The second and third methods focus on peer and self-evaluations within each department, reinforcing employees' understanding of ROFO and encouraging its daily application This approach aims to cultivate a habit among employees to consistently utilize ROFO in their work routines.
Action 3: Encouraging employees conduct ROFO principles
To promote adherence to ROFO principles, the appraisal program will be implemented at two levels: the entire office department and individual departments The office department level will oversee evaluations on a quarterly basis, while each department will manage its own appraisal processes.
Table 5: The prize and recognition of appraisal level
Each quarter, a 360-degree evaluation will be conducted to select one employee from each department for a special prize The selected employee will receive one million dong, and this initiative will be showcased company-wide over a three-month period.
Each department will conduct monthly evaluations where three employees are selected through a voting process The peer who receives the highest evaluation will be awarded a prize of two hundred dong This initiative aims to recognize outstanding performance within each department on a monthly basis.
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Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
Evaluating effectiveness of conducting ROFO principle
Action 3 Encouraging employees conduct ROFO principles
Table 6: The timeline for implementing set solution 1
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Ineffective internal communication is the primary issue affecting MHE Group, leading to reduced profits, decreased customer satisfaction, and a high project failure rate This communication breakdown has also significantly harmed the company's reputation in the pallet and container market Additionally, it has created a negative work environment at Srithai, where employees feel undervalued and dissatisfied Analysis reveals that weak individual leadership is the root cause of these problems To address this issue, the implementation of ROFO principles is recommended, though challenges related to resource availability and execution capabilities remain.
Topic The reasons that impact on profit, customer satisfaction in MHE group
Venue No.2, Street 2, Di An Ward, Di An district, Binh Duong province
Interviewer Nguyen Thi Thuy (ID: 22160052)
I want to thank you for taking the time to meet with me today
My name is Thuy and I would like to talk to you about your experiences with the reasons that impact on profit, customer satisfaction in MHE group
The interview will last approximately 20 minutes and will be recorded to capture all your comments accurately, as note-taking may not suffice Please speak clearly to ensure your responses are heard Rest assured, all your answers will remain confidential and will only be shared with the research team, with no identifying information included in the final report You are free to skip any questions you prefer not to answer, and you can terminate the interview at any point if you wish.
Are there any questions about what I have just explained?
Are you willing to participate in this interview?
1 Personal information Your job/responsibility/position within the company
Having worked with Srithai company for several years, I appreciate its supportive company policies that foster a positive working environment The management style encourages open communication and collaboration, which significantly enhances team dynamics Additionally, the employees exhibit a strong sense of camaraderie and professionalism, contributing to a productive and motivating workplace atmosphere.
In the first half of 2018, a report indicated that the company experienced a decline in profits during 2017 and the initial months of 2018, particularly within the importing plastic sector This raises the question: what factors contributed to the losses in the plastic import group over this year and a half?
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The 2018 customer satisfaction report from the ISO department highlights a concerning issue: the on-time delivery rate stands at only 50%, which is significantly below acceptable levels This low performance raises questions about the underlying reasons contributing to the problem What are your thoughts on the factors that may be leading to this unsatisfactory delivery rate?
5 The failing project rate is very high as fifty percentage in 2017, do you think what the reason of this problem?
Does your company have an employee motivation program? If so, please provide more details about the program If not, could you share your thoughts on why the company lacks a motivation program for its employees?
7 Who do you think that should responsible for loss profit? Why?
After completing a project, it is common to hold a meeting to evaluate its successes and challenges, allowing for valuable lessons to be learned Unfortunately, the plastic import group experienced significant losses within a year and a half Does your company have an effective cost control system in place to prevent such issues?
9 Are your employees clear their job description?
10 Do you want to share more information?
Topic The effective of internal communication system in Srithai Vietnam company
Venue No.2, Street 2, Di An Ward, Di An district, Binh Duong province
Interviewer Nguyễn Thị Thủy (ID: 22160052)
I want to thank you for taking the time to meet with me today
My name is Thuy and I would like to talk to you about your experiences in the effective of internal communication system in Srithai Vietnam company
The interview will last approximately 20 minutes and will be recorded to capture all your comments accurately, as note-taking may not suffice Please speak clearly to ensure your responses are heard Rest assured, all information shared will remain confidential and will only be accessible to the research team, with no identifiers included in the final report You are free to refrain from discussing any topics you are uncomfortable with, and you can choose to end the interview at any point.
Are there any questions about what I have just explained?
11 Are you willing to participate in this interview?
12 Personal information Your job/responsibility/position within the company
I have been working with Srithai company for several years, and I appreciate its supportive company policies that foster a positive working environment The management style is approachable and encourages open communication, which enhances collaboration among team members Additionally, the employees exhibit a strong sense of camaraderie and professionalism, contributing to an overall atmosphere of motivation and productivity.
14 Gross profit of importing products group has decreased since 2017, do you think what the reasons are?
15 The failing project of importing products group rate is very high, do you think what the reasons are?
16 Do you think that lack of effective communication in work organization would affect employees’ productivity? How are its affects? Could you share some experiences?
17 What are your difficulties in your job? Do your boss and your colleagues support you?
18 Are you initiative to make decision in your job? If answer is no, what reasons are in your opinion?
19 What are your opinion about cross communication of department in company?
20 How do you think of effective of sharing information between departments?
21 Are you clear your department’s KPI and your description job?
22 How do you think of effective of leadership in company? Prompts: making decision ability, persuade ability, motivation employees, listening, etc
23 Are you easy to tell your boss your idea or improvement?
24 Do you want to share more information?
Topic Finding evidences for proving importance of existence problem
Venue No.2, Street 2, Di An Ward, Di An district, Binh Duong province
Interviewer Nguyen Thi Thuy (ID: 22160052)
TIEU LUAN MOI download : skknchat@gmail.com
I want to thank you for taking the time to meet with me today
My name is Thuy and I would like to talk to you about your experiences in finding evidences for proving importance of existence problem
The interview will last approximately 20 minutes and will be recorded to capture all your comments accurately While I will take notes, I may not be able to write everything down, so please speak clearly Rest assured that all responses will remain confidential, shared only with the research team, and your identity will not be revealed in any reports You are not obligated to discuss anything uncomfortable, and you can choose to end the interview at any time.
Are there any questions about what I have just explained?
Are you willing to participate in this interview?
25 Personal information Your job/responsibility/position within the company