Ineffective workplace culture at Phu Nhuan Exchange PropertyX Joint Stock Company

Contents

Executive Summary ………………………………………………………………………………………………………….3

1. INTRODUCTION ……………………………………………………………………………………………………..4

1.1. Hung Thinh Corporation overview ………………………………………………………………………..4

1.2. PropertyX Joint stock company overview ………………………………………………………………6

1.3. PropertyX’s structure …………………………………………………………………………………………..7

2. PROBLEM CONTEXT………………………………………………………………………………………………8

2.1. Industry context…………………………………………………………………………………………………..8

2.2. Company context…………………………………………………………………………………………………9

3. PROBLEM IDENTIFICATION ………………………………………………………………………………..11

3.1. Symptoms…………………………………………………………………………………………………………11

3.1.1. Lowest revenue among exchange systems ……………………………………………………..11

3.1.2. Highest turnover rate……………………………………………………………………………………11

3.2. Potential problems……………………………………………………………………………………………..12

3.2.1. The First Potential Problem: Ineffective Leadership ………………………………………..14

3.2.2. The Second Potential Problem: Ineffective Employment………………………………….15

3.2.3. The Third Potential Problem: Ineffective Workplace culture…………………………….16

3.3. Central problems ……………………………………………………………………………………………….22

3.3.1. Definition …………………………………………………………………………………………………..22

3.3.2. Problem consequences …………………………………………………………………………………23

3.3.2.1. Poor working conditions………………………………………………………………………..23

3.3.2.2. Poor work-life balance…………………………………………………………………………..24

3.3.2.3. Low employee engagement ……………………………………………………………………24

3.3.2.4. Lack of Training & Development focused ……………………………………………….25

3.3.2.5. Lack of Transparent & Open communication …………………………………………..26

3.3.2.6. Weak Team spirit………………………………………………………………………………….26

4. CAUSE AND EFFECT MAP ……………………………………………………………………………………28

4.1. Potential Causes ………………………………………………………………………………………………..28

4.1.1. The first potential cause: Rigid Policies …………………………………………………………28

4.1.2. The second potential cause: Weak of management practices and the formal socialization process …………………………………………………………………………………………………29

4.1.3. The third potential cause: Autocratic leadership ……………………………………………..30

4.2. Cause validation ………………………………………………………………………………………………..32

5. ALTERNATIVE SOLUTION …………………………………………………………………………………..33

5.1. The first alternative solution: Changing leadership style…………………………………………33

 

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5.2. The second alternative solution: Replace position – Director of Phu Nhuan’s exchange …
………………………………………………………………………………………………………………………..36

5.3. Solution validation …………………………………………………………………………………………….38

6. ACTION PLAN……………………………………………………………………………………………………….39

6.1. Action Plan……………………………………………………………………………………………………….39

6.2. Effectiveness measurement …………………………………………………………………………………41

Conclusion …………………………………………………………………………………………………………………….42

7. SUPPORTING INFORMATION……………………………………………………………………………….43

7.1. Appendix: …………………………………………………………………………………………………………43

7.2. References ………………………………………………………………………………………………………..54

 

LIST OF FIGURES

Figure 1: Top 10 Most Reputable Property Developers 2019 (Source: Vietnam Report, Top 10

Reputable Real Estate Companies 2019, March 2019) ……………………………………………………………… 6

Figure 2: Company structure (Source: Company website)…………………………………………………………. 8

Figure 3: Exchange structure (Source: Company website)…………………………………………………………. 8

Figure 4: Top 5 Most Reputable Real Estate Agencies 2019 ……………………………………………………… 9

Figure 5: Initial Symptom and Potential problems diagram ……………………………………………………… 20

Figure 6: Updated Initial Symptom and Potential problems diagram ………………………………………… 22

Figure 7: Initial Cause and effect tree……………………………………………………………………………………. 31

Figure 8: Final Cause and effect tree …………………………………………………………………………………….. 32

Figure 9: Leadership Style …………………………………………………………………………………………………… 33

 

LIST OF TABLE

Table 1 : Annual Revenue report of PropertyX 2016-2017-2018 (Source: Company report 2016-

2017-2018-2019)………………………………………………………………………………………………………………… 11

Table 2: Turnover rate 2016-2019 (Source: Human resources report 2016-2019) ………………………. 12

Table 3: Number of employee – Phu Nhuan 2019 (Source: Human resources report 2019)………….. 12

Table 4: Board of Management’s expectation on replacing director position effectiveness ………….. 41

 

 

 

 

 

 

 

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Executive Summary

This thesis provides an analysis and evaluation of the ineffective workplace culture of Phu Nhuan exchange, one of the PropertyX exchange systems and recommends the solutions to improving the sale revenue and decrease the high turnover rate. Methods to find out the central problem of Phu Nhuan include primary data from internal and company reports, two- round in-depth interview and related literature frameworks. Results of the finding show that leadership style is not suitable with Phu Nhuan exchange anymore and have bad effect to employee performance and engagement.
Further investigations reveal that good or positive workplace culture has many benefits such as: higher employee’s performance, increase employee satisfactory and engagement, lower turnover rate, higher team spirit … Of course, Phu Nhuan will face many challenges if they want to successfully implement the leadership style changing. These include challenges from replace senior position as well as changing workplace culture and the pressure to get the sale target.
In addition, the thesis will base on the main cause of the effect of autocratic leadership style to propose two alternative appropriate solutions: The first is changing leadership style and the second is replacing director position by promoting person from other exchange.
Based on relevant factors as well as considering advantages and disadvantages, a detail action plan was conducted to implement the second alternative solution is Replacing director position by promoting person from other exchange for better workplace culture. This will
help to predict accurate measurement of figure performance to determine whether Phu Nhuan

invest in this project.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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1. INTRODUCTION

1.1. Hung Thinh Corporation overview

Hung Thinh Corporation had more than 17 years of run in the field of real estate at Vietnam. Company have the efficient board of director, right strategy and the efforts of whole employees Hung Thinh brand is is one of the strongly named in the market and continually develops into a well-known real estate company not only in Ho Chi Minh city but also
expand to many other provinces.

Hung Thinh Corporation has more than 50 member companies, 3 representative offices and system of 9 property exchanges. Company has over 2,500 staffs working in the fields of investment, architectural design, construction, furniture, distribution and many kinds of fields to meet the growing development target. More than 50 member companies run in many kinds of different sector to help Hung Thinh Corporation to form a closely associated process in
real estate supply chain. This provides the high quality products at reasonable prices for

company’s partners and customers

Hung Thinh Corporation always focuses on real estate development as the foundation for all business activities is. Invest in real estate field will help to create stable and sustainable growth and affirm are the comprehensive strengths of corporation. Hung Thinh try to use the strength of exploitation and available core competencies to expand investment to other fields, company is always committed to bringing good values to partners and customers. The Board of Directors and every employees of Hung Thinh Corporation always try to bring to the market the quality projects and become a reliable name in the market.
Member Companies

Hung Thinh Land Joint Stock Company ( Hung Thinh Land ) Hung Thinh Incons Joint Stock Company ( Hung Thinh Incons ) Property X Joint Stock Company ( PropertyX )
Hung Thinh Furniture Joint Stock Company (Hung Thinh Furniture)

Prowind Architecture Joint Stock Company (Prowind Architecture) Nam Hung Thinh Housing Trading Joint Stock Company
Cong Ty Co Phan Dich Vu Giai Tri Hung Thinh Quy Nhon

Binh Trieu Engineering And Construction Joint Stock Company

Hung Loc Investment Business Joint Stock Company

Viet Tam Joint Stock Company

Hung Thinh Cam Ranh Limited Liability Company

Khai Huy Quan Corporation

Lam Vien Investment And Commercial Service Joint Stock Company

 

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Doi Dua – Hoan My Trading And Service Joint Stock Company

Gia Dinh Star Investment Jont Stock Company Cam Ranh Mystery Joint Stock Company Thuan Thanh Phat Co., Ltd.
Khai Thinh Real Estate Joint Stock Company

Hung Loc Tree Business Investment Joint Stock Company

Indec Infrastructure Development Joint Stock Company

On March 15, 2019, Top 10 Prestigious Real Estate Companies in 2019 was announced Vietnam Report JSC. This is an independent research result of Vietnam Report published annually since 2016. The result based on:
– Media Coding method has been applied by Vietnam Report and its partners since

2012, and put together with in-depth research with high growth potential industry such as: Banking, Insurance, Securities, Food – Drinks, Retail… Media coding method is used to evaluate media prestige by encoding related company articles on
some influential media channels; survey of industry experts; survey of residents living and working in big cities on the level of satisfaction with products or services.
– Financial capacity is used to evaluate the prestige of companies by using the recent company financial.
– The survey on the operation situation, number of projects, progress of project handover, etc… in 2018 – 2019 is also used as an additional factor to determine the position of enterprises in the industry.
Based on the result of the research, Hung Thinh Corporation is at 7th position.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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Figure 1: Top 10 Most Reputable Property Developers 2019 (Source: Vietnam Report, Top 10

Reputable Real Estate Companies 2019, March 2019)

 

1.2. PropertyX Joint stock company overview

PropertyX is one of member of Hung Thinh Corporation. PropertyX has 9 real estate exchanges systems and over 1,200 emloyees working at Ho Chi Minh and other provinces in the country such as: Ha Noi, Binh Dinh, Vung Tau. Based on mission and strategic vision of Hung Thinh Corporation, PropertyX try to bring high quality products to customer and continue on the way to develop a sustainable community. Company vision is
developing PropertyX to be the the biggest and prestige real estate business and distribution company not only at Ho Chi Minh City but also in Vietnam. By providing quality and affordable products with increasing value over time, PropertyX is always tries to build the civilized and prosperous community. Besides that, preparing the high quality employees to develop the company’s competitiveness; try to get the development of the economy and creating many great values for the society.
PropertyX’s target is “Professionalism – Efficiency – Sustainability”. Company always focuses on building the professionalism with a pioneering strategy by training and changing
to adapt globalization every day. PropertyX provides the diversity of products, trying to bring to customer as much as possible high quality product with suitable price to maximize the
value of each project in order to bring the highest efficiency to customers. PropertyX believe

 

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that a sustainable society is the most important factor to develop the company successful. Therefore, company strongly focuses on improving the quality of community, nurturing and creating good living values in the society. Company’s mission is developing the civilized and prosperous community. PropertyX tries to build good conditions for employees to develop their abilities and encourage them to learn and develop their knowledge. It will help them to have higher performance and make loyal with company. All employees worked at PropertyX will be respected, listened and shared by board of director and leadership teams. Besides that, PropertyX believe that focus on training is a good way to invest for the Company’s future success. Therefore, PropertyX usually organizes many training course to develop soft and
hard skills. They will clearly shape employee’s career path forward to the best goals. Training activities are organized to build and develop qualified employees in terms of quality and quantity to meet the requirements of work regularly. Moreover, with team building each 6 months for all employees connect with training is an effective way to help develop staffs knowledge and team sprits. With many kinds of activity, Board of Directors of company has always orientated PropertyX to become a good workplace for all staffs. With ideal
workplace, employees can get the high performance than company’s expectation. Company Projects:
Condominium

8x Thai An, 12 View, Thien Nam Apartment, 91 Pham Van Hai, 8x Rainbow, 8x Dam

Sen, 8x Plus, Sky Center, Melody Residences, Florita, Vung Tau Melody, Lavita Garden,

9view Apartment, Saigonmia,Citizen.Ts, Moonlight Residences, Moonlight Park View, Moonlight Boulevard, Richmond City, Lavita Charm, Q7 Saigon Riverside Complex, Q7
Saigon Riverside Complex,Quy Nhon Melody, Q7 Boulevard, Vung Tau Pearl, Grand Center

Quy Nhon

Land Plot – Villa

Hung Thinh Villas, La Residence Hung Thinh, Sentosa Villa, Golden Bay – Cam Ranh, Khanh Hoa, Cam Ranh Mystery Villas, Saigon Mystery Villas, Golden Bay 602, Bien Hoa New City, Ba Ria City Gate, Para Draco, Vinh Long New Town

1.3. PropertyX’s structure

PropertyX has Board of Directors, including:

– General Director Head of Real Estate Exchange System

– Permanent Deputy General Director Head of Sales

– Deputy General Director Head of Finance – Legal Pratice

– Deputy General Director of PropertyX

 

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PropertyX has 9 exchange, each exchange has Board of Exchange Directors (figure 2), including:
– Director of Exchange

– 02 Deputy Director

Figure 2: Company structure (Source: Company website)

Each small sales group will have from 07-15 sales and each sale manager will manage 30-35 sales. Administration includes 03 administrators. Figure 3 show structure of each exchange.

Figure 3: Exchange structure (Source: Company website)

2. PROBLEM CONTEXT

2.1. Industry context
The result in Figure 4 below based on the research on the evaluation of industry experts using financial factors point, business image from the mass media. According to

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Vietnam Report JSC, Vietnam real estate in 2018 has still grown but it can be accepted. The overview of the real estate market in 2018 changes slightly better than that in 2017 was evaluated by nearly 50% of enterprises. In 2019, one of the major and continuing challenges in the real estate market is that the authorities review land fund, the procedures and project legislation causing the supply and transaction to decline in large markets such as Hanoi, Ho Chi Minh City, Nha Trang, Da Nang, … are decreased in new supply while the provincial markets are vibrant with a series of projects, strongly attracting investors. The number of newly launched projects is extremely small. This challenge has forced developers to switch from traditional markets to find land fund in many localities to develop new projects. Many areas where no one previously thought it would be a destination for real estate investors, but now the market is more active than before. Therefore, real estate companies have to catch the market and improve to adapt with new environment.

 

Figure 4: Top 5 Most Reputable Real Estate Agencies 2019

Source: Vietnam Report, Top 10 Reputable Real Estate Companies 2019, March 2019

2.2. Company context

PropertyX has six exchanges at Ho Chi Minh City and three exchanges at other provinces. This research focuses on difference on development between six exchanges at Ho Chi Minh City, they are:
– Phu Nhuan Exchange established in 2008 at 163 Hoa Lan Street, Ward 2, Phu Nhuan

District

 

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– Nguyen Chi Thanh Exchange established in 2010 at 526 Nguyen Chi Thanh Street, Ward

7, District 10

– Pham Viet Chanh Exchange established in 2011 at 1A Pham Viet Chanh Street, Nguyen

Cu Trinh Ward, District 1

– Hang Xanh Exchange established in 2013 at 527 Dien Bien Phu Street, Ward 25, Binh

Thanh District

– Tan Son Nhat Exchange established in 2014 at 45 Hoang Viet Street, Ward 4, Tan Binh

District

– Tan Hung Exchange established in 2015 at 133 Nguyen Thi Thap, Tan Hung Ward, District 7
Six exchanges have the same product sources to sale, the same price and promotion policy, same support tools from PropertyX but each exchange gets different result. Different results is not a concern problem but if the gap between exchanges are so big, that will be the concern problem to company. According to Revenue report up to the end 2019, six exchange have a huge different between the 1st and the 6th exchange. Phu Nhuan is the first exchange of PropertyX but recently always get the lowest result than other exchanges. Target revenue will be set at beginning of each year base on the predict product Hung Thinh Corporation will launch in next year. Revenue use to evaluate depends on each project, usually from 6-8% of product price. The percentage will be showed in the contract between PropertyX and Hung Thinh Corporation at the date the project is launched and notify for every exchange systems. The maximum number of sales in each exchange is 150 and total employee is 180. Each exchange has different strategy, activity, working environment or hiring employees and local workplace culture specialize for each exchange. Exchanges have own funds from competition rewards, end-year reward, so each exchange can use that money for their own strategy. Director of each exchange is the person who decides the way that exchange work and is
responsible with Board of Director of PropertyX.

 

 

 

 

 

 

 

 

 

 

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3. PROBLEM IDENTIFICATION

3.1. Symptoms

3.1.1. Lowest revenue among exchange systems

As we can see in Table 1, in 2016 and 2017 Phu Nhuan Exchange was at 4th between six exchange systems at Ho Chi Minh City. In 2018, Phu Nhuan Exchange was downgrade at 6th and the efficiency per sale per year was 986 billion. This number was higher than in 2016 and
2017 but still lower than other exchanges. The gap between Phu Nhuan and Nguyen Chi Thanh was around 25-32 million. Up to 2019, Phu Nhuan is still at 6th. We can see that, from January to December, Phu Nhuan was always at low position from 4-6th. The gap between Phu Nhuan and Nguyen Chi Thanh was over 58 million. This gap is increasing over twice times so it is important for finding out the reasons.
Table 1 : Annual Revenue report of PropertyX 2016-2017-2018 (Source: Company report

2016-2017-2018-2019)

 

 

3.1.2. Highest turnover rate

As we can see in Table 2, Turnover rate of Phu Nhuan in 2019 was highest. The number of employee quit the jobs was significant higher than other exchange systems. Other exchanges kept the turnover rate below 50% but turnover rate of Phu Nhuan in 2018 was
52%, up to 2019 was 67%. This rate is over 50% and highest in exchange systems.

 

 

 

 

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Table 2: Turnover rate 2016-2019 (Source: Human resources report 2016-2019)

Table 3 show the number of total employee of Phu Nhuan in detail. Total employ is 156, in

2019 had 105 quit, include 94 sales and 11 managers. New hiring is 84, include 69 sales anf

15 managers. Salary of sale is from 4-4.5 million VND, salary of manager is from 7.7 million

VND (group leader), to 25 million VND (director of exchange).

Table 3: Number of employee – Phu Nhuan 2019 (Source: Human resources report 2019)

In summary, in six exchange systems of PropertyX, Phu Nhuan has the lowest revenue and highest turnover rate compare with other exchanges in 2019. Each exchange was located at different district. Each district will have different advantage and disadvantage which can effect to number of potential customer. Company has many kind of project and they located not only at different district but also different province. But location just has small effect to exchange performance. Location of exchange could not be changed but exchange can hire employees live in different district. Furthermore, salesman is not usually work at exchange office, they can move to everywhere to find customers. Location of project can get
advantaged for nearest exchange but it could be effect on short time because PropertyX use to sale one project just in 5-6 month and have new project each 2-3 month. Moreover, salesman from other exchange will get into this area immediately to rival customers. Board of director of PropertyX always tries to make six exchanges in Ho Chi Minh City have the same basic conditions to have a fair competition environment. So the revenue of the exchange system
and turnover rate through 4 years could show the capacity of each exchange

3.2. Potential problems

In order to identify the problem of Phu Nhuan exchanges, PropertyX’s symptom will be

justified first by using internal data such as Revenue report and Turnover rate report. After

 

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that, the central problem will be identified through reviewing some theory frameworks in combine with conducting in-depth interview with the General Director of company and leader of Phu Nhuan exchanges to have a holistic view of the problems.
In order to find out the central problem that lead to the symptom of PropertyX, specialize in Phu Nhuan exchange, the depth interviews were conducted with person who in charge of the PropertyX‘s symptom from inside and outside. The summary of informant’s profiles can be listed as bellows:
 Mr. Nam Hien – General Director Head of Real Estate Exchange Systems, has worked at

Hung Thinh for 8 years, 10 year experiences in real estate field.

 Mr. Quoc – Deputy Director of Phu Nhuan Exchange, has worked at Hung Thinh for 9 years, 10 year experiences in real estate field.
 Ms Nhan – Director of Nguyen Chi Thanh Exchange, has worked at Hung Thinh for 8 years, 11 year experiences in real estate field.
 Ms Thu Hien – Human Resources Manager of PropertyX, has worked at Hung Thinh for

4 years, 6 year experiences in human resources field.

 Mr Chi – Sale Manager of Nguyen Chi Thanh Exchange, has worked at Hung Thinh for 6 years, 6 year experiences in human resources field.
 Mr Hiep – Sale Manager of Nguyen Chi Thanh Exchange, has worked at Hung Thinh for

3 years, before he worked at Nguyen Chi Thanh, he has worked at Phu Nhuan for more than 2 year.
 Mr Tuan – Sale Manager of Phu Nhuan Exchange, has worked at Hung Thinh for 4 years and quit 5 month ago.
 Ms Hong – Salesman of Phu Nhuan Exchange, has worked at Hung Thinh for 1 year

 Mr Binh – Salesman of Phu Nhuan Exchange, has worked at Hung Thinh for 2 months.

 

General Director Head of Real Estate Exchange Systems Mr Nam Hien said that (in

Appendix 1):

“When Phu Nhuan’s revenue decreased, employee of Phu Nhuan quit their jobs or request for change exchange more than before. When Phu Nhuan hired new employees, they need time to be trained and familiar with company culture, so they could not get the target and Phu Nhuan’s revenue decreased”
He pointed out it had connection between tow symptoms: change in revenue and number of quit. A series of assessments are given to find out the potential problem of the symptoms
from the interviewees.

 

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3.2.1. The First Potential Problem: Ineffective Leadership

Bennis, W.(1) pointed out effective leaders provide inspiring mission and vision to their employees and give them an identity through modeling integrity, magnanimity, dedication, openness, humility, and creativity. Kouzes MP, B. (2) further admitted successful leaders challenge the process, inspire a shared vision, enable others try to act, model the way, and encourage those led. Poor leadership in good times can be hidden, but it will showed out in bad time according to Zenger and Folkman (3). Effective leadership styles will be the important role in motivating employees, raising their morale, and making a positive impact on employee and organizational performance. Many studies have confirmed this influence Ogbonna and Harris, Jing and Avery (4). Bass (5) pointed out subordinates of such a leader feel trust, loyalty, admiration, and respect for the leader and because of the leader’s qualities are willing to work harder and better than company expected. Ineffective leadership is in many companies at many levels and styles. Ineffective leadership impacts to performance at both individual and the company level. Ineffective leadership does not inspire or support innovation and support simply such as only like thinking, avoiding others that challenge or find other solutions and not usually changing to adapt new circumstance. Furthermore, respondents indicated ineffective leadership has bad influence on the success of employees. Employees will lose their confident and motivation in leaders if there is no trust in the leader’s leadership abilities. Mutual trust between management and employees is the first step to develop performance and creating a positive working environment, staffs that feel valued and important are willing to try their best to get company goals as a business. Transparent leadership creates an environment where staff members – no matter how long they had work in company – are encouraged to share their ideas, progress and challenges. Deputy Director of Phu Nhuan Exchange – Mr Quoc said that (in Appendix 2):
“Third, ineffective leadership made poor creates an inspiring, motivation and weak

planning & organization. Our staffs lost their faith to leadership gradually and quit.”

He mention about the last reason made Phu Nhuan had the lowest revenue and highest turnover rate is about ineffective leadership. Ineffective leadership made poor creates an inspiring, motivation and weak planning & organization. This reason made Phu Nhuan’s staffs lost their faith to manager team and quit. Now, they are studying CEO course to improve their skills and made an effective manager team. General Director Head of Real Estate Exchange Systems Mr Nam Hien said that (in Appendix 1):
“Most of manager of Phu Nhuan have experience in real estate and work at Phu

Nhuan at a long time. After long time working with them, they show me that they have

 

 

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ability but not active so much. They are usually quiet and rarely give opinion or new ideal to improve their exchange.”
He admitted that most of manager of Phu Nhuan have experience in real estate and work at Phu Nhuan at a long time. After long time working with them, they show me that they have ability but not active so much. So Phu Nhuan leader team has to show their abilities and have positive change to adapt with new business environment. It can be said that ineffective leadership can affect the turnover rate and low revenue. However, it is not really a significant problem that can have strongly effect the employment performance at Phu Nhuan.
3.2.2. The Second Potential Problem: Ineffective Employment

Basically, any change in the workforce such as hiring a new staff, a termination (voluntary or involuntary), or even a role change could create some instability in an organization. Many organizations have to face with finding the balance between stability and change, which affects individual contributors in turn. But on the way of innovation and
digital transformation, the idea of stability has been lost in the mix.

A high annual employee turnover rate can be worst because it is cost and take time to solve. When replacing an employee, companies have to face with both direct and indirect costs. A direct cost can be easily calculated. Direct costs incurred when company replace an employee include the cost have to pay for existing worker and the cost to pay for a temporary worker fill in at the same time. The potential cost of pay for unemployment insurance premium, the cost to advertise to finding suitable candidate to fill in, the cost of hiring an agency or recruiter to help fining new employee, the cost of training a new employee and many other related cost. About indirect cost, it cannot be easily quantified. It includes the cost of processing the changing position such as employee’s benefit paperwork, the cost in filing unemployment documentation, the cost occur when manager take time for meetings to find
out the reason of high employee turnover and sole it, lost production result from a slower new staffs who have to take time for familiar with new job, and the lost production of the manager because he has to take time to find a new hiring.
Recruitment and selection process will effect on the company’s performance. Bad decisions in these process can create serious problem to company and manager has to take time and money to solve that (6). Neeraj pointed out that selection as the process of picking candidates who have related qualifications to fill position in company. It is important to select the right person because of three main reasons: performance, costs and legal obligations (7). Ekwoaba, Ikeije, and Ufoma defined the impact of recruitment and selection criteria on company performance. Recruitment and selection criteria have a significant effect on
company’s performance. The more objective the recruitment and selection criteria are meet,

 

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the better the organization’s performance will be (8). Human Resources Manager of

PropertyX -Ms Hien said that (In appendix 4):

“So I think that ineffective employment is one of the reason make Phu Nhuan can get the target. Ineffective job-seekers and monitoring candidates make Phu Nhan do not have competent employees. Other exchanges have lower turnover rate than Phu Nhuan. Phu Nhuan took much time for hiring and cost more time and money to training new comer. It is a weakness. If we do not have solution for this problem, Board of Director may replace or dissolve Phu Nhuan exchange soon.”
She mentioned in her interview that ineffective employment showed low employee morale and company had to cost a lot of money and time to hiring, training for new comer. General Director Head of Real Estate Exchange Systems Mr Nam Hien said that (in Appendix 1)”
“ When Phu Nhuan hired new employees, they need time to be trained and familiar with company culture, so they could not get the target and Phu Nhuan’s revenue decreased” He had the same thought with Ms Hien about cost time and money when hiring new
employee and more over it affected on sale’s result. And Director of Nguyen Chi Thanh

Exchange – Ms Nhan shared that (in appendix 3):

“As you can see, the number of quit at Nguyen Chi Thanh is not high, I believe that keep employment engaged is one of the important thing make Nguyen Chi Thanh strong.”
She admitted that effective employment is very important to get good result. Moreover, employees prefer working together with competent colleague who they use to with. In this case, employees tend to easier to focus on their target and be productive to complete their job. The cost use to hiring new employee will be better use for investing training and develop current staffs. To improve morale, company can offer some activities such as working time flexibility, offline
team-building events, bonus… In general, it is important problem but it is not central problem to the symptoms of Phu Nhuan.
3.2.3. The Third Potential Problem: Ineffective Workplace culture

Workplace culture is one of the important point of practice development (9) (10) . Many different elements effect to workplace culture, according to the work of many practice development researchers, the basic point of culture are primarily formed and effected by the values, beliefs and abilities of each employees (11) (9). With an ineffective workplace culture, all staffs could not get better performance. They would develop slowly and could not upgrade company’s competition. If employees are not empowered by company workplace culture, they could not show a high performance and have low satisfaction with their jobs.
Employee will often fail to learn new skills and have new ideas. With lack of training and

 

 

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challenging, employees could not develop themselves effectively. General Director Head of

Real Estate Exchange Systems Mr Nam Hien said that (in Appendix 1):

“When Phu Nhuan’s revenue decreased, employee of Phu Nhuan quit their jobs or request for change exchange more than before. When Phu Nhuan hired new employees, they need time to be trained and familiar with company culture, so they could not get the target and Phu Nhuan’s revenue decreased.”
“In my opinion, problems may from ineffective Workplace culture. Leader of each exchange has own decide to build their exchange the way they want and have to be in charge with board of Director of PropertyX about sales revenue result. As you can see, Nguyen Chi Thanh and Tan Son Nhat have a wonderful workplace where employee can share their opinions and develop their skills easily. But in Phu Nhuan exchange, it rarely has activities for employee can talk together or helping each other to work effectively. So it led to weak team spirits.”
He admitted that Phu Nhuan had trouble in turnover rate and got low result. This situation needs to be solved to increase company’s revenue. He pointed out low revenue led to high turnover rate and opposite. Low revenue in long time made employee have low income, sales could not afford for cost of living and marketing cost. Phu Nhuan had to cost time and money for hiring new employees. It is not easy to hiring an experience sale nowadays, so Phu Nhuan had to take time to training new comer and they need time to familiar with new working
place. This situation made Phu Nhuan could not have strong sales team to get revenue target. Phu Nhuan is the first exchange of PropertyX but for a long time, Phu Nhuan can get the high result. According to Mr Hien, poor working culture of Phu Nhuan is the main problem. Poor working culture made Phu Nhuan had poor working condition, lack of training and development-focused and weak team spirit. Phu Nhuan focused on investing in marketing than building a better working place or activities for their employee. Mr Quoc have the same opinion with Mr Hien about high turnover rate is one of the reason make Phu Nhuan could
not reach the sales target, but in other aspect, sales target is one of the reason make employee feel pressure and quit job. He said that Phu Nhuan had a long time focus on chasing revenue target, investing in marketing and ignored building workplace culture. Phu Nhuan rarely has teambuilding trip or training course for employee, so staffs lack of information and lack of communication together. According to Mr Quoc, ineffective workplace culture is the most important problem Phu Nhuan has to solve to create a positive place for their staff improving their skills and get the sales target. In the interview with Director of Nguyen Chi Thanh
Exchange – Ms Nhan shared that (in appendix 3):

 

 

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“Exchange systems of PropertyX have the same product sources to sale, the same price and promotion policy, same support tools. But each exchange will have a different way to deploy and get different results. Director of each exchange have more than 10 years experiment in real estate but each person has different aspect and run their exchange different strategy. With me, Hung Thinh give very good sources from products, affordable prices, finance, marketing tools… so all we need is to have team spirit so I always focus on develop build a good workplace culture where all staff can share anything from work to life together. We need to help each other to get exchange’s target together. Our staffs work eight or can be more eight hours a day so
I hope that I can create a place my staffs feel happy and do whatever they want, fair competition”
She pointed out the reason made Nguyen Chi Thanh always be the 1st exchange. She pointed

out every exchange has the same sources but different way to deploy. Therefore, each exchange will get different result. Leader of each exchange all have over ten years experiences in real estate but different aspect and choose different way to manage the exchange. Because the initial sources for all exchange were the same, she focused on making a strong spirit team by create a positive workplace culture. As described by Human
Resources Manager of PropertyX -Ms Hien said that (In appendix 4):

“In 2019, Leavers of Phu Nhuan increased both employee and manager positions. I interviewed some person, most of them said that they want to change working environment. They want to get new challenge at other company. Some said that sale target make them feel so stressful, they could not get balance between life and work. Not only employee who work at Phu Nhuan short-time but also for a long time.”
She pointed out leavers of Phu Nhuan increased both employee and manager positions. Low revenue made them so stressful and they can find the way to get through it. They want to change their working environment where they can get motivation and work-life balance. The market change gradually but Phu Nhuan did not change to adapt with new situation. She thought that is serious problem because the gap between Phu Nhuan and other exchange is bigger each year. If we do nothing to change it, maybe Phu Nhuan will be dissolved.
About Sale Manager of Nguyen Chi Thanh Exchange – Mr Chi who has been working for

Nguyen Chi Thanh more than 6 years, he said that (in appendix 5):

“Nguyen Chi Thanh builds a standard culture working which I could not find in other exchange at PropertyX. It always has connection between salesman and leadership. We encourage each other every time. Board of Direction has clearly oriented to
subordinates. Nguyen Chi Thanh has friendly environment, we celebrate all the

 

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holiday, staff birthday… donate for difficult situation… I am happy because my subordinates can get their target each month. They are confident and try to break their limit.”
He admitted that Nguyen Chi Thanh has positive workplace culture. Leaders of exchange has clearly oriented to subordinates. He feels motivated and inspirited when he is working here. That is the reason why he has been dedicated this place for a long time. To get the target, team leader have to work hard to find out a suitable strategy for each project. After that, they focused on training for their staffs. They hold competition to encourage sales
teams. Every time sales need to share ideal or any problems, manager always sit down and listen to them. Strong leadership and solidarity spirit make Nguyen Chi Thanh success. According to Sale Manager of Nguyen Chi Thanh Exchange – Mr Hiep who has worked at Phu Nhuan for more than 2 year before moving to Nguyen Chi Thanh (in appendix 6):
“It has a big different between two exchange that is employee in Nguyen Chi Thanh are more honestly and helping each other than Phu Nhuan. In Phu Nhuan, they active in group and do not contact with other group”
He thought that it has a big different between two exchange that is employee in Nguyen Chi Thanh are more honestly and helping each other than Phu Nhuan. Lack of transparent, communication and training, development focused in Phu Nhuan made their staffs feel run out of motivation. This situation led to they can get sales target. Interview with Mr Tuan, he pointed out working environment is really important. Phu Nhuan has ineffective workplace culture. He felt run out of motivation and can get his sale target for a long time before his leaving. So workplace culture had significant impact to the symptom of Phu Nhuan exchange.
From the above analysis, the initial Symptoms and Potential problem diagram can be showed

as below:

 

 

 

 

 

 

 

 

 

 

 

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