Luận Văn Improving Ineffective Leadership In Tuan Loc Cic’s Head Office.doc

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UNIVERSITY OF ECONOMICS HO CHI MINH CITY
International School of Business
------------------------------
Pham Minh Tuan
IMPROVING INEFFECTIVE LEADERSHIP
IN TUAN LOC CIC’S HEAD OFFICE
MASTER OF BUSINESS ADMINISTRATION

UNIVERSITY OF ECONOMICS HO CHI MINH CITY
International School of Business
------------------------------
Pham Minh Tuan
IMPROVING INEFFECTIVE LEADERSHIP
IN TUAN LOC CIC’S HEAD OFFICE
MASTER OF BUSINESS ADMINISTRATION
SUPERVISOR: DR. PHAN THI MINH THU

SUPERVISOR’S REPORT ON THE THESIS PROPOSAL
SUBMITTED FOR DEGREE OF MASTER of BUSINESS
ADMINISTRATION
The thesis proposal title: IMPROVING THE INEFFECTIVE LEADERSHIP IN TUAN
LOC CIC’S HEAD OFFICE
Student Name: Pham Minh Tuan
Supervisor: Dr. Phan Thi Minh Thu
1. General comments:
 Remarks on the student’s attitude:

………………………………………………………………………………………
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…………………………………………………………………

 Remarks on the assignment’s academic quality:

………………………………………………………………………………………
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2. Overall assessment:
Meet requirement for submitting
Not meet requirement for submitting
3. Other remarks:
 Did the student follow the report schedule?
Yes No Other………………………….
 The Turnitin plagiarism percentage:

Supervisor’s signature

Contents
Executive Summary ................................................................................................................................ 2
1.1. Background.................................................................................................................................. 3
1.1.1 Company History ....................................................................................................................... 3
1.1.2. Symptoms.................................................................................................................................. 3
1.1.3. Importance of the selected symptom......................................................................................... 6
2.1. Situation Analysis ............................................................................................................................ 7
2.1.1. Problem Identification............................................................................................................... 7
2.1.2. Potential Problems..................................................................................................................... 9
2.1.3. Central Problem and Cause Identification...............................................................................14
2.1.3.1. Cetral Problem..................................................................................................................14
2.1.3.1. Cause Identification..........................................................................................................15
3.1. Proposed solution and action plan..................................................................................................18
3.1.1. Solution’s Objectives ..............................................................................................................18
3.1.2. Potential Solutions...................................................................................................................19
3.1.3. Evaluation of solutions............................................................................................................20
3.1.4. Action plan..............................................................................................................................23
Reference...............................................................................................................................................28
Appendix 1 – The report of Viet Nam salary online survey in 2016 ................................................31
Appendix 2 – Transcript with Mr. Viet – Deputy Planning Manager...............................................32
Appendix 3 – Transcript with Mr. Phuc - Deputy Human Resource Manager.................................34
Appendix 4 – Transcript with Mr. Nghia - Chief Accountant ..........................................................36
Appendix 5 – Transcript with staffs who left the company. .............................................................38
Appendix 6 – Questionnaire 1 to validate literature for leadership and actual situation in Tuan Loc
CIC’ Head Office. .............................................................................................................................41
Appendix 7. Result of Leadership Survey 3 Departments (Technical, Planning and Business).......42
Appendix 8 – Questionnaire 2: Company Communications Evaluation...........................................44
Appendix 9 – Transcript with Ms. Tam - Human Resource Manager ..............................................46
Appendix 10 – Transcript with Mr. Thang - Deputy General Director.............................................48
Appendix 11 – Transcript with Ms. Tam – Human Resource Manager for Evaluation of solutions 50
1

Executive Summary
High employee turnover rate becomes more and more complicated from 2014 up to
now, impacts on many aspects of the company such as performance, reputation,
finance and image. Specially, in the last haft of 2016 and 2017, the turnover rate
increases too quickly that seriously effect on the department’s activities as well as
company’s performance. There are a lot of potential problems causing the high
employee turnover rate was found out as ineffective leadership, low compensation and
poor work environment relied on interviews and literature. After analysis, evaluation
and validation process, department manager’s ineffective leadership is demonstrated as
the central problem. In this research, ineffective leadership is the term which describes
poor leadership qualities as well as causes negative influences on job satisfaction and
organizational commitment, results of this issue is high turnover rate. The root causes
and proposed solutions for solving problem are significant to reduce the employee
turnover rate and improve department’s performance. Finally, Results of research are
four potential solutions: team building, developing an internal training, finding third
party to train or finding the training courses (external training) and changing
Department Managers. Through solution evaluation process related to realistic and
feasibility, cost saving, requirement of time and obtained benefits, external training
and team building are the most appropriate solutions with available resources in order
to improve ineffective leadership in Tuan Loc CIC’s Head Office.
2

1.1. Background
1.1.1 Company History
Tuan Loc Construction Investment Corporation (Tuan Loc CIC) is established and
come into operation in 2005. The main business forms are road and bridge
construction, industrial park investment, water supply system construction and
investment. The average employees are 250 in total and to ensure the stable and
effective operation, the average number of staffs in Head Office is maintained from 55
to 65 people (excluding Manager). Tuan Loc CIC is promoting investment and
construction activities in the whole country and foreign cooperation. The company
operates relied on the function structure with 8 Departments in Head Office including:
Human Resource, Accounting, Technical, Planning, Business, Investment, Machine
and Equipment; Water Department.
1.1.2. Symptoms
Through the initial interview with the Deputy Manager of Human Resource
Department, he told that: “In 2015 and 2016, although there are a lot of employees
who left company, it is not seemed to impact on the Company’s operation, number of
staffs left the company continuous increase too many and impact on the operation of
the company this year. However, we have not found the effective solutions for
controlling yet”. He also shown the evidence for his talking regarding to numbers of
staff left Tuan Loc CIC from 2014 to 2017 presented in the Table 1 - Number of
Staffs working and Left Tuan Loc CIC’s Head Office from 2014 to 2017.
Number of Staff
Total Number
Year M
(Average) of left
HR Accounting Technical Planning Business Investment & Water
E
2014 5 12 18 3 6 3 6 3 56 1
2015 5 12 20 6 7 5 8 3 66 7
2016 5 10 15 3 5 5 8 3 54 13
3

Year
Number of Staff
M
HR Accounting Technical Planning Business Investment & Water
E
Total
(Average)
Number
of left
2017 5 11 4 0 5 5 8 3 41 15
Turnover Rate
40.00%
35.00%
30.00%
25.00%
20.00%
15.00%
10.00%
5.00%
0.00%
2014 2015 2016 2017
Turnover rate 1.79% 10.61% 24.07% 36.59%
Chart 1 – Tuan Loc CIC’s Head Office Turnover Rate
As the result of calculation shown in the Chart 1 - Tuan Loc CIC’s Head Office
Turnover Rate, the turnover rate in 2016 and 2017 are 24.07%, 36.59%,
respectively. Meanwhile, the average turnover rate is 15.7% for Real Estate –
Construction Major referred to the report of Viet Nam salary online survey in 2016
(Appendix 1 - The report of Viet Nam salary online survey in 2016) with
participation of 300 companies and 106.925 employees performed by Macconsult
Consultant Company. As analysis, Tuan Loc CIC’s Turnover rate is higher compared
with the average turnover rate and continue increasing year by year. Specially, Mr.
Phuc – Deputy Human Resource also said that: “In the first haft of 2017, three
departments: Technical Department, Planning Department and Business Department
always complain with us about lack of direct staffs and required to recruit new staffs
because they didn’t have enough staffs to work”. Refer to the data about left staffs are
provided more by Mr. Phuc, most of employees left the company from Technical
4

Department, Planning Department and Business Department, the details are given in
the Table 2 – Number of Staff Working and left of 3 Departments:
Head Office Staffs
Total of
Year
Technical Planning Business
Total leaving
Staffs Leaving TOR Staffs Leaving TOR Staffs Leaving TOR
staff
2014 18 0 0% 3 0 0% 6 1 17% 27 1
2015 20 3 15% 5 1 20% 7 3 43% 32 7
2016 20 7 35% 5 2 40% 5 2 40% 30 11
2017 15 11 73% 3 2 67% 6 2 33% 24 15
Remain 4 0 5 9
Table 2 – Number of Staff Working and Left of 3 Departments
According to functions and duties of departments, three Departments play important
role with the key contents such as:
- Technical Department: Completion of the shop drawing and calculation of
quantity for bidding; managing the technical of all projects and controlling and
improving the construction schedule, quality of projects.
- Business Department: Bidding for new projects and managing all of
Subcontractors.
- Planning Department: Managing Contract related to collecting Payment,
ensuring Schedule, Output and resolving the problems that need to be explained
and prove with State Management Agencies; forecast the output, revenue and
cash flow (including establish disbursement schedule).
With the role and functions as given, high turnover rate will certainly impact on the
company’s operation. To identify these effects, the researcher conducts interviews
with Mr. Viet – Deputy Planning Manager, Mr. Phuc - Deputy Human Resource and
Mr. Nghia – Chief Accountant.
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1.1.3. Importance of the selected symptom
In year 2015 and 2016, although the turnover rate was high, it did not seem to impact
distinctly on the management progress of the company yet. However, in the first haft
of 2017, there are a lot of problems the company shall face. Mr. Viet – Deputy
Planning Manager said that: “The completion of documents is often late, impact on the
reputation, finance and image of the company, For example:
- In Package I, we submitted payment two months late, the value of payment is
about fifty eight billion VND, and value of payment is about fifty eight billion
VND. It impacts on the finance for construction on site. Up to now, because of
delayed cash flow, the schedule of Package I is late for 2 months compared with
required Schedule. If this situation keeps going up to completion of Project, as
the condition and provision of Contract, we will be punished 0.1% of Contract
Value, about 566.5 million VND per 1 late day.
- In Sai Gon – Metro Project: Because late construction, we must bear the cost of
waterway warrant (560 million VND per month), for 3 months.
- In general, in this stage, payment document is late compared with the payment
plan from haft of month to 2 months because we don’t have enough staffs for
performance. Employers regularly complain these situations”
Mr. Phuc – Deputy Human Resource Manager added: “The document works in
projects are regularly slow, cannot meet the requirement lead to delay on construction
on site. We received a lot of writings in this year from Employer for complaining and
punishing due to late schedule on site, late document for payment and so on. All of
these situations seriously impact on the reputation of our company”.
In the interview with Mr. Nghia – Chief Accountant, he explained consequences of
delaying document and schedule: “We built the finance planning based on the
disbursement schedule and construction schedule on site of all projects. In 2017, the
actual disbursement and construction schedule are slower than planning, although the
planning is changed many times. Therefore, we have to change the source of financing
to meet operation needs by bank loans and bear more financial cost”.
6

From all information, high turnover rate impact directly on performance, finance,
image as well as reputation of company, problem identification and solving is very
significant as well as important in order to improve performance, maintain sustainable
growth and development.
2.1. Situation Analysis
2.1.1. Problem Identification
Researcher conducts the interviews to identify problem that Tuan Loc Construction
Investment Corporation shall face. The first, the face to face interview with Mr. Phuc –
Deputy Human Resource Manager, He said that: “The number of staffs left increase so
quick in recent year, I used to ask several people about the reasons which they decided
to leave the company. Most of them complain the salary and direct manager”.
Two interviewees who left the company participate in the next interview, the first one
shared that: “Managers only care about the results of the work, not care about the
process so rarely support staff to complete the work, seldom empower, all of things are
decided by manager and my tasks are performing the process, reporting regularly”. In
addition, two interviewees confirmed that: their manager frequently losses his temper
and blames on employees. Participants are not satisfied with their direct manager and
feel uncomfortable when work with their Manager. Deputy Human Resource Manager
also recognized that: “Most of them are good in the technical skill because they
graduated and worked with this field many years before become the manager.
However, everyone has certain limitations”. He added: “Many Managers in the
Department cannot maintain good relationship with staffs and control their temper. In
addition, most of managers are the detailed – focus and make decision all of situation”.
The second one said that: “I am not really satisfied with the company's salary policy
because the determination of wage is based on the assessment of direct management
and I think my manager misjudges my competent when he set up salary”. To clarify
the information got from interviews, more data was collected from Ms. An – Human
Resource Staff about the salary of 30 staffs working for departments with high
employee turnover rate in 2016 and another survey about salary from other sources.
The first, average salary as calculated based on data provided by Ms. An, the average
7

salary of staffs who working in three departments (technical, planning and business)
that having the high turnover rate of the company 2016 is 11.769.231 VND (refer
Table 3 - Salary statistics of salary of Departments (Technical, Planning and Business)
in 2016). Meanwhile, in the report of Viet Nam salary online survey performed by
Macconsult Consultant Company in 2016 as well, the average market salary for Engineer/
Architect is 12.000.000 VND with the same major. Thus, the salary of Tuan Loc CIC is
lower than average general level of this field. In addition, Mr. Phuc confirmed that: “Tuan
Loc CIC does not apply salary for working overtime, every staff have to complete
assigned tasks on time and ensure the quality. However, we support all of staffs two third
of lunch fees”.
Value Salary
Experience
Position Frequency
(year)
Max 14.000.000 5 Civil Construction Engineer 1
Min 8.000.000 3 Construction Economic Engineer 1
Mode (Majority) 12.000.000 7
Average (Experience) 11.769.231
Table 3: Salary statistics of salary of Departments (Technical, Planning and Business) in 2016
In this case, weighted average (Experience) of salary is calculated as the mathematical
formulae (Wikipedia): ̅
∑
∑
In this case:
which means: ̅
̅:is weighted average of salary.
: is salary of staffs working in Tuan Loc CIC
: is number of year working in Tuan Loc CIC
From all short interviews and data provided by Human Resource Department, the
researcher synthesizes the initial cause effect map as below:
8

Uncomfortable and
unsatisfied with direct
manager
High Turnover
Rate
Low Salary
Manager: Detailed-focus,
autocratic, decisive
person
Do not motivate and
support staffs in the
working
Basic salary is lower than
average of major
Do not pay for working
overtime
2.1.2. Potential Problems
Employee’s dissatisfaction resulting in having turnover intention and lack of
commitment to work goes beyond economic losses (3)
. In the first interview combined
with data provided by Human Resource Department, the researcher analyzed and
synthesized in the initial cause effect map include 2 problems: The first, staffs are
uncomfortable and unsatisfied with direct manager due to they are detailed-focus,
autocratic, decisive person and do not motivate and support staffs in the working; the
second, they also complain low salary due to basic salary is lower than average of
major and company does not pay for working overtime. From the literature review,
problems impact on employee turnover rate of company that are ineffective leadership,
poor work environment, low compensation (4)
. Combination of information and
collected data are basic for identifying central problem that cause employee high
turnover rate in Tuan Loc CIC’s Head Office. Details of each problem are verified as
follows:
Ineffective leadership: Transformational leadership has a positive relationship with
job satisfaction and organization commitment, meanwhile there is a negative
relationship between transformation leadership and turnover (5)
. Ineffective leadership
practices are the major source of employee turnover and managers who have not
received proper leadership training may be contributing to employee turnover because
their leadership practices may not be effective (6)
. Effective leadership styles have
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always played a positive role in motivating employees, raising their morale, and
making a positive impact on individuals and organizational performance and at that
time, ineffective leadership describe poor and unacceptable leadership qualities (7)
. In
addition, Shamas-ur-Rehman Toor and Ogunlana in 2009 cited the personal traits
leading to ineffective leadership of Lombardo’s research such as: inability to build a
cohesive team, over- and under-managing, being overly ambitious, not supportive and
demanding of subordinates, being overtly emotional, being insensitive, cold and
arrogant, maintaining poor relations with staffs and overriding personality defects (8)
.
The result of re-examining the component of transformational leadership shown that
there are four interrelated different types of behavior: idealized influence, inspirational
motivation, individual consideration, and intellectual stimulation (9)
and detail of these
components are presented by Nichoson and William in 2007 (10)
as follows:
- Idealized influence: Transformational leaders are admired, respected, and
trusted. Followers identify with and want to emulate this type of leader.
Transformational leaders produce these emotional reactions by considering the
needs of their followers and trying to meet them. Transformational leaders
share risks with their followers and always adhere to their personal ethics,
principles, and values.
- Inspirational motivation: Transformational leaders behave in ways that motivate
those around them. This type of leader provides their followers with
meaningful, challenging work. Individual and team spirit are aroused.
Enthusiasm and optimism are displayed. The transformational leader
encourages followers to envision attractive future states, which they can
ultimately envision for themselves.
- Intellectual stimulation: Transformational leaders stimulate innovation and
creativity in their followers by questioning assumptions, reframing problems,
and approaching old situations in new ways. Simic (1998) stated that these
leaders stimulate change in the way people think about problems: for example,
they use metaphor and analogy to describe problems and solutions.
Transformational leaders do not ridicule or publicly criticize individual
member's mistakes. New ideas and creative solutions to
10

problems are solicited from followers, who are included in the decision-making
process.
- Individualized consideration: Transformational leaders pay attention to each
person's need for achievement and growth by acting as a coach or a mentor.
Followers are helped to reach higher levels of achievement. New learning
opportunities are created in a supportive climate. Transformational leaders
recognize each person's needs and desires.”
The researcher applied the quantitative method conducting questionnaire using 5
points Likert scale of strongly disagree to strongly agree relied on leadership
components to validate the actual problems which Tuan Loc CIC is facing. The
participants are all of staffs work for 3 Departments in 2017: Technical, Planning and
Business including 24 people. However, after conducted survey by via mail and
collected the results, there are only 23 valid questionnaires. The first, Question 1, 2
and 3 are built to evaluate the level of idealized influence of Department Managers
with their subordinates. As the survey results respectively 2.57, 2.96 and 2.00, the
manager in three Departments have not built the good individual image with their
employees yet, they also do not properly concern for the employee’s needs.
Meanwhile, as Mr. Nghia said: “I think I create the good relationship with my staffs
and I understand their needs. I find the way to meet their needs in my authorization.
All of people in my department are like a family and complete all of task and targets
together”. Therefore, he had not to face the situation high turnover rate in the
management progress. Specifically, there are only 3 staffs left our department from
2014 to 2017, 2 of them moved to subsidiaries for working and one left because of
family reasons. The second, about the inspirational motivation, participants do not
highly evaluate the enthusiasm of their manager when the average score was only 2.96.
Although, several managers encourage staffs by the attractive future states such as
rising salary and undertaking high position. The third, many staffs (60.87%) strong
agreed and agreed that: “My manager encourages staffs giving ideas and proposing
solutions to solve problems”. However, very few of them agreed that their managers
empower to make decisions for employees when the average score for this question
was only 2.22. Finally, with the lowest average score as the result, staffs (73.91% of
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participants) do not highly appreciate their manager for individualized consideration
expressed by recognizing the needs and desires.
In general, following received results in the Appendix 7 – Result of Leadership
Survey 3 Departments (Technical, Planning and Business), the value of researched
factors is rated from 1.91 to 3.17 and the average is only 2.57 are very low. In
addition, as the result of survey in Appendix 8, 8 of 11 respondents (equivalent with
72.72 percent) are dissatisfied and very dissatisfied with direct managers. Most of
them also believe that their managers only never and sometimes share to help staffs
more comfortable and never empower in the working process. And the results also
showed that 63.64 percent of participants left company due to dissatisfaction with
Department Managers.
1.00 2.00 3.00 4.00 5.00
1. I admire, respect and trust your direct
2.57
manager
2. My direct manager shares responsibility
2.96
with staffs in the working process
3. My direct manager often discusses and
2.00
understands staff’s needs
4. My direct manager is enthusiastic
2.96
person
5. My manager ever encourage staffs by
2.87
the attractive future states
6. My direct manager provide staffs with
2.96
meaningful, challenging work
7. The manager stimulates innovation and
1.96
creativity in staffs by questioning…
8. My manager seldom publicly criticizes
2.43
individual member's mistakes
9. My manager encourages staffs giving
3.48
ideas and proposing solutions to solve…
10. My manager empowers staffs to makes
2.22
the decision many cases
11. My manager recognizes my needs and
1.91
desires
Chart 2 –Leadership Survey of 3 Departments (Technical, Planning and
Business)
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As analysis, ineffective leadership is the real problem related to Tuan Loc’s Head
Office and as is considered more and more with others in order to find the central
problem.
Low compensation/ low salary: Salary is not tied to performance and the benefits
offered does not appeal to and meet the needs of the various categories of employees
that lead to employee turnover(11)
. As the calculated average salary of staffs who work
for 3 Departments in 2016 (Table 3: Salary statistics of salary of Departments
(Technical, Planning and Business) in 2016, the salary is lower than the average
salary of industry. In addition, there are 2 of 11 valid questionnaires from 15
employees left 3 Departments (Technical, Planning and Business) in 2017 agreed that
“They left the company due to low salary”. Thus, low compensation/ low salary should
be considered as a potential proplem that Tuan Loc’ Head Office shall face.
Poor working environment: The working environment includes overall workload,
long working hours, negative behavior of the manager or lack of communication with
colleagues lead to job dissatisfaction and job avoidance such as taking leave leaving
work incomplete or efforts to quit the current job (12)
. As the interview, the
relationship and cooperation for working in the department of staffs is very good. And
they are only not uncomfortable when their direct manager sitting in the working room
due to he seem not to be friendly and support the friendly and flexible environment. As
the data provided by Human Resource Department, other departments as Accounting,
Materials and Machines, Investment, Water did not face with the high turnover
situations. Mr. Nghia shared: “All of people in my department are like a family and
complete all of task and targets together”. Overall workload, long working hours,
negative behavior of the manager or lack of communication with colleagues are factors
of work environment causing the employees turnover. However, following the result
of questionnaire 2 (Appendix 8), no one of 11 valid participants left the company in
2017 due to work stress and bad relationship with colleagues. Moreover, 8 of them
(72.72 percent) also agreed that: the relationship with other staffs is quite good and
very good. As the survey results and interview, the evidences shown that only negative
manager’s behavior impacts on staff’s satisfaction as well as working environment.
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2.1.3. Central Problem and Cause Identification
2.1.3.1. Cetral Problem
After using both qualitative and quantitative method as well as related theories,
ineffective leadership, low compensation/ low salary are found as potential problems,
researcher conducted evaluate one by one problem for identifying the central problem
to solve.
The first, as analysed, many managers cannot build well their images that make their
subordinates admire, respect and trust. Results also shown that due to managers do not
properly concern for the employee’s needs, staffs are unsatisfied with their manager
and do not highly appreciate their manager for individualized consideration. In
general, Department Managers did not demonstrate the characteristics (idealized
influence, inspirational motivation and individualized consideration) needed to become
leader with full of necessary leadership skills.
The second, despite the researcher also found that salary is lower than the industry’s
average salary, the data as comparison shown that the difference is not so high in order
to staffs make dicision to leave the company. On the other hands, 54.55% of 11
participants think that: “Salary is reasonable”. Moreover, Deputy HR manager
acknowledged that: “The salary will be increased compliance with company policy,
finance condition and every stage, the manager of department will propose the level of
salary for their staffs by themselves”. He also talked that: “The level of salary is
reasonable in this stage and as our survey, our level of salary is higher than many
domestic companies in the same major such as CII E&C, SC5, CC1, Cienco 4.”. As
interview, the level of salary is set up relied on experiences and ability of staffs and
Department Managers are the people that evaluate and propose directly staff’s salary.
In fact, other departments such as Accounting, Materials and Machine, Investment and
Water department, no one left the company due to low salary. This means that these
Department Managers proposed and set up reasonable salary. Mr. Nghia – Chief
Accountant shared: “I think the really problem come from the direct manager because
the salary of my department is also lower than other departments. However, no one
complain and left. I usually talk with my staffs, if the salary is low, they are willing to
14

share”. Although, there are several employees from three Departments (Planing,
Business and Technical) left company due to low salary, when researcher conduct
interview and collect data, the result shown that more than haft of participated in
survey are satisfied with their salary and in other Departments, no one left due to
salary in spite of lower than other Departments. In addition, someone left Tuan Loc
CIC and work for another company with lower salary. Therefore, low salary is not
proved as a main problem causing high turnover rate in Tuan Loc’s Head Office.
The third, in last step, overall workload, long working hours, negative behavior of the
manager or lack of communication with colleagues are factors of working environment
as referece from theory. However, in the analysis process, researcher found that only
manager’s behavior impact on the staff’s satisfaction. Related to manager’s behavior,
researcher considers the factor as once of leadership’s components.
By analysis and evaluation, researcher rejects low compensation/ low salary and poor
working environment as central problem causing high turnover rate in Tuan Loc CIC’s
Head Office. Most of evidences shown that ineffective leadership impacts more
strongly on the high employee turnover rate of Tuan Loc CIC, specially in 3
Departments (planning, business and technical). In conclusion, ineffective leadership
is the central problem that needs to be solved.
2.1.3.1. Cause Identification
From the result of central problem identification, the researcher conducts investigating
the causes of company problem – Ineffective Leadership. The first, researcher referred
studies and articles for finding out potential causes including: negative emotional
intelligence, poor interpersonal skill and lack of trust. The second, researcher
conducted discussion with Human Resource Manager and Deputy General Director for
identifying the root cause of the problem after finding out potential cause. To prepare
the interview, interview questions will be built to identify the causes based on the
characteristics such as: Firstly, emotional intelligence ability includes Ability to
understand one’s own and the emotions of others and managing one’s emotions (13)
.
Secondly, Laurer suggested five traits: The first trait is for a leader not to humiliate
15

staff members in front of other individuals that never be trusted in management
positions; the second, leaders should not make fast decisions to avoid making wrong
decisions and causing havoc on a company; Third, the leader needs to set realistic
deadlines to keep quality and staff morale from suffering; The fourth trait is for a
leader to not interfere with subordinates’ personal time outside the office therefore the
leader needs to demonstrate respect for team members’ lives away from the
workplace; the last, perception becomes reality in the workplace (14)
. Finally, one of
the best character-driven ways to build trust is for leaders to keep promises as well as
commitments and keep promises demonstrates integrity, a key factor in peoples'
willingness to follow (15)
. Combined both literature review and interview, details of
factors are shown as following:
Negative Emotional intelligence: Emotional intelligence characteristics are directly
linked to leaders being able to motivate and transform others and leaders with high
emotional intelligence are able to inspire others to feel positive emotions and increased
confident (16)
. Effective leaders possess a high degree of emotional intelligence
including 5 components: self-awareness, self-regulation, motivation, empathy, and
social skill. Social skill is another key component to successful leadership (17)
. People
with negative emotional intelligence often misinterpret emotional signals and have
difficulty with relationships (18)
. When researcher conducts a deep interview with Ms.
Tam – Human Resource Manager for considering the actual situation in Tuan Loc
CIC, Ms. Tam said that: “I think the first cause is from emotional intelligence.
Because, as I know, the department manager rarely discusses to understand their staffs,
they should improve this aspect. When we conduct the survey, most of staffs are not
pleasure with their direct manager about the enthusiastic and communication with
them. So the manager cannot understand his subordinates”. As her opinion, many
managers in Tuan Loc CIC cannot understand and control employee’s emotion. Thus,
they did not have the appropriate actions to manage their Department. She added:
“Many staffs left Tuan Loc CIC, they are unsatisfied with the direct manager. If
managers own the emotion intelligence, they will find out the reasons and solution for
improving by themselves. However, up to now, everything has not changed”. And
with the same opinion, Mr. Thang – Deputy General Director said that: “I want to
16

emphasis that the good relationship between Department Manager with their staffs do
not be maintained. It proved that managers cannot understand their emotion and
control emotion”.
Poor interpersonal skills: Reasons for ineffective leadership are the poor personal
traits of leaders, skills shortage, negative strategies, and focusing only on short-term
goals (19)
. Interpersonal skills include factors such as communication, motivation,
influence, interaction, and the establishment of relationships of trust, transparency,
positive attitudes, beliefs, and values (20)
.
Related to interpersonal skills, Ms. Tam explained: “There are some problems with
department managers, such as shouting staffs in front of others and regularly repeat the
last faults of employees as several ones complain”. It means Department Managers
have restrictions on the ability to communicate with their staffs that obstruct the
management process and creating dissatisfaction from staffs. In another case, Ms. Tam
gave an example: the manager made difficulty for employees to take leave. It proved
that managers interfere with subordinates’ personal time outside the office. Mr. Thang
– Deputy General Director also added: “I usually discuss with department managers, I
understand their skills. I think most of them are the expert in technical field. However,
interpersonal skill is very limited. In the report of HR Department, there are many
staffs complain about their direct managers. In fact, I think they cannot communicate
effectively with employees and create the good relationship. Therefore, they left the
company is normal in management process”.
Lack of trust: Childers (2009) has demonstrated a correlation between trust and
transformational leadership. The research has underscored the importance of
managers’ keeping their word to followers, building trust between a leader and
followers, and understanding the leadership character (21)
.
Related to the last cause – lack of trust, Ms. Tam cannot share anything with you about
this aspect because her Department have never surveyed before. However, following
results of leadership survey in Tuan Loc CIC (Appendix 7), in the first question: “I
admire, respect and trust your direct manager”, there are 3 participants strongly agreed
and 10 participants disagreed (total 56.52% of participants) demonstrating lack of trust
17

is also a root cause of ineffective leadership. In addition, Mr. Thang – Deputy General
Director think: “If Department Managers cannot meet the requirement of intelligence
emotional and interpersonal skill, trust cannot be built”.
Therefore, the researcher makes
Head Office’s problem include
skill and lack of trust.
conclusion that: the root causes of Tuan Loc CIC
negative emotional intelligence, poor interpersonal
High Turnover
Rate
Ineffective leadership
Low compensation/ salary
Negative Emotional
Intelligence
Poor Interpersonal Skill
Lack of Trust
Poor work environment
3.1. Proposed solution and action plan
3.1.1. Solution’s Objectives
To solve problem and improve ineffective leadership in Tuan Loc CIC’s, the
researcher propose the group of solutions in order to enhance emotional intelligence,
interpersonal skill and build trust. After applying group of solution the desirable results
are listed as follows:
The first, relationship between staff and staff, staffs and manager shall be improve and
will be evaluated rely on results of questionaire.
The second, skill and knowledge of all staffs and manager are enhanced. The
examination shall be performed before and after applying solutions to identify level of
improvement based on the participant’s obtained mark.
The last, employee turnover rate shall be decreased lower than major’s average rate
(15.7% in 2016).
18

3.1.2. Potential Solutions
Based on the theories, the researcher conducts identifying the potential solutions that
could be applied efficiently in Tuan Loc CIC:
The first, emotional intelligence is not fixed genetically, as people grow older they
seem to develop greater emotional intelligence and the second, organization can be
improve the emotional intelligence competence of their staffs (22)
. Therefore,
organization shall use emotional intelligence scores to detect the most competent
managers and establish training programs which are aimed at the development of
emotional intelligence (23)
. Training programs include internal training (Solution
No.1) and external training (Solution No.2). External trainings are mostly conducted
by external professionals, experts, consultants, trainers, speakers, and lecturers who
possess special skills and knowledge. While, internal trainings are performed by
internal managers or trainers if company has a large work force.
The second, Trust is the process of communications and building trust involves
managing communications and creating the right channels that give employees more
and more opportunities to say and encouraging discussion (24)
. In addition,
teambuilding activities (Solution No. 3) focus on enhancing communication and
cooperation (25)
. Therefore, team building is one of solution to enhance trust between
manager and staffs.
The final, specific interpersonal skills are needed for managers and subordinates to
establish a work relationship and organizations should participate in the training course
(Solution No.2) for improving interpersonal skills (26)
.
In the previous interviews, Human Resource Manager for solving problem raised three
solutions (Appendix 9): The first, organizing team building every 3 or 6 months to
create good relationship between staffs and direct manager; staff and staff. The second,
we should develop an internal training program to train the department managers. The
third, find third parties to train or find the training course to manager participate in. In
addition, Mr. Thang – Deputy General Director talked about another solution
(Solution No.4): changing the Department Manager.
19

Combined all of data from interviews and theories, there are four potential solutions:
internal training, external training, team building activities and changing Department
Managers.
3.1.3. Evaluation of solutions
In problem solving process, determining the reasonable solutions from various
potential solutions to solve problems is very important (27)
. To evaluate accuracy the
effective of proposed solutions, the researcher continues deeply interview one more
time with Ms. Tam – Human Resource Manager as the appointment with her in last
interview after Ms. Tam considered all of factors and made a detailed evaluation.
Ms. Tam showed 5 necessary factors when building a solution and submitting to Board
of Director for approval including: realistic and feasibility; requirement of time; cost
saving; company’s resources and obtained benefits need to be analyzed and evaluate to
identify the most reasonable to apply for solving problem. Results of interview are
presented in the Table 6 – Summary of evaluating solutions.
No.
Evaluation
Team building Internal Training External Training
Factors
- Appropriate with - Appropriate with - Appropriate with
company policies and company policies and company policies and
company culture. company culture. company culture.
- Realistic and - Easily create the
- The company is not
1 professional in training - Training by experts
Feasibility programs
& education.
- Improper training
program will not get
the expect result.
Requirement - Taking long time to
- Taking long time for
- More quickly to get the
2 building program and
of time get the effectiveness results
training
20

No.
Evaluation
Team building Internal Training External Training
Factors
- Lower cost for - Higher cost for
3 Cost saving preparation and preparation and - Lower cost
conduction. conduction.
4
Company's - Needing many - Needing many - Company do not need to
Resources resources to conduct. resources to conduct. spend their resources.
- Building the
- Building the
environment to - Cannot build the
environment to
practice, interact, environment to practice,
practice, interact, share
share and get interact, share and get
and get feedback
feedback between all feedback between all
between all people in
people in people in organization.
5 Benefits
organization.
organization.
- Improving Improving the skills,
- Improving the skills,
communications skill knowledge and
knowledge and
both staffs and performance for
performance for managers
manager participants.
Table 6 – Summary of evaluating solutions
Refer Table 6 and the analysis of causes, team building is the best solutions for
improving emotional intelligence, trust of Department Managers and help them create
close relationship with their employees. Meanwhile, when compare internal training
(Solution No.1) and external training (Solution No.2), the researcher realized that
external training (Solution No. 2) contains many advantages and limited risk. In
addition, the feasibility of internal training is not high. To improve the emotional
intelligence, interpersonal skill, external training (Solution No.2) is chosen as the
reasonable solution. Ms. Tam also confirmed that: “We should choose 2 solutions:
team building and external training for improving emotional intelligence and
interpersonal skill”. Although external training exist limitation such as cannot build the
environment to practice, interact, share and get feedback between all people in
21

organization, team building (Solution No.3) is the good environment to improving this
disadvantages. The results of study researched by Clarence and Mitchell have shown
that: “while classroom training is important, coaching, mentoring, and 360-degree
reviews should be considered in combination with classroom training” (28)
. Therefore,
the coaching, mentoring, and reviews shall be a part of team building activities.
Regarding to changing Department Managers (Solution No.4), Mr. Thang told that:
“About remaining solution, I am not sure our company can be find better managers
and it can be costly”.
Researcher, consideration of effectiveness of chosen solutions, many theories indicated
that:
Mark Joseph Maciha indicated that training was beneficial to their practice of
leadership and training programs provide foundational knowledge and awareness of
leadership (29)
. External training (Solution No.2) as Human Resource Manager’s
analysis is more appropriate than internal training because Tuan Loc CIC’s Head
Office did not have enough resources for building and operating an internal training
program.
Team building (Solution No.3) ensures self-development, positive communication,
leadership skills, and learning to work together in problem-solving and decision-
making (30)
. In addition, team building also is a good measure to motivate, get to
know one another, and build better relationships between manager and staffs (28)
.
Specially, effective team building help organizations increase productivity and
efficiency, improve the way the participants interact, improve support and trust as well
as reduce dissatisfaction in the work place (31)
.
Through interview results and related literature review for given solutions, the choice
of these solutions are reasonable and has the basis for effective implementations in
Tuan Loc CIC’s Head Office.
22

3.1.4. Action plan
In the last steps, the researcher identified two solutions: team building and external
training that are the basis to the researcher conduct building the action plan of solution
as follows:
External training (Solution No.2) is performed based on the main steps such as:
building and publish objectives, choosing the training courses and evaluation and
choosing Department Manager for participation in, registering the courses. In short
time, the researcher proposed short term training course in 3 – 6 moths with time from
2 to 3 days for each. In long time, the researcher chooses the MBA course for
developing in a comprehensive with Department Managers who are oriented to senior
management.
23

No. Term
Training
Company Objectives Participant Cost Schedule Time
courses
Build confidence in leadership
skills to become excellent leader;
Understand leadership skills, self
to lead others;
Communicate, connect and
Leadership Viet Man
collaborate with colleagues,
8 Department
- Total cost:
February,
1 subordinates; 64 million 2 days
foundation Power Training Managers 2018
Influence and inspire others; dong
Defining the role and developing
Short
leadership in work and daily life;
Know the four strategies to
times develop employees in the
organization by leadership skills
Create vision;
Build trust and become an
Delegation: influential leader;
- Total cost:
2
The art of Viet Man Energize communications to 8 Department
3 days
March,
80 million
delegating Power Training Inspire others; Managers 2018
dong
effectively Coaching and feedback;
Leadership tools to build team
power;
Clearly identify how delegation
fits into their job and how it can
make them more successful
- Total cost:
3
Executive VietMan Power Identify different ways of 8 Department
3 days May, 2018
80 million
leadership Training delegating tasks Managers dong
Use an eight-step process for
effective delegation
Give better instructions for better
24

No. Term
Training
Company Objectives Participant Cost Schedule Time
courses
delegation results
Recognize common delegation
pitfalls and how to avoid them
Monitor delegation results
Give effective feedback
Identify what motivation is
Describe common motivational
theories and how to apply them
Executive Viet Man
Learn when to use different kinds
8 Department
- Total cost:
of motivators 64 million 2 days June, 2018
leadership Power Training Managers
Create a motivational climate dong
Design a motivating job
Department
Long Educating knowledge and skills
Manager is Cost: 5,000
September
MBA course oriented to USD/ 2 years
times for management 2018-2020
senior participant
management
25

Secondly, team building (Solution No.3) involves in-house team building activities and outside
team building activities. The in house team building activities will focus on special subjects such
as interpersonal skills, emotional intelligent and will be organized monthly on the Saturday
morning of the last week of month. The outside team building activities combined with company
trip of relax travel will be organized once per six months. The Human Resource Manager also
shall follow many basic steps which are included explaining employees to understand the
requirements and expectations of activities. Informing the subjects in advance for participants can
search and prepare before participating, reporting the results, monitoring the improvement and
follow-up. The cost for in-house activities is estimated 8 million dong per activity and the cost for
outside activities is 2.5 million dong per person per time.
Contents In- house team building activities Outside team building activities
Objectives - Build the environment to practice, interact, share and get feedback between all people
in organization.
- Improving the relationship between staff and staff, staffs and manager.
- Increasing skills and knowledge of all staffs and managers.
- Decreasing turnover rate.
Actions - The in-house team building activities - The outside team building activities will
will focus on company culture, emotional focus on the outside activities, team games
intelligence and interpersonal skills. and entertainment activities… and will be
The first week of month:
combined with company trip of relax
travel.
- The HR Manager will build and
April/ October:
confirm the content based on the
knowledge, experience, reference from - HR Manager contact with reputable third
the book, research, online training parties and receive price quoting, program
program, … introduction, compare, and select the best.
- Assign the resource, especially the - Report to Board of Director fix the time,
guider and leader. resources and plan.
The second and third week of month: - Discuss with third party for details of
- Preparing the material for participants.
activity
- Informing and explain to staffs to
- Make agreements and sign the contract.
understand requirements and May/ November:
expectations. - Informing and explain to staffs to
- Informing the subjects understand requirements and expectations.
- Informing for preparation and
26

Contents In- house team building activities Outside team building activities
The last week of month: arrangement.
- Conducting on Saturday morning. June/ December
- The HR Department will synthesize the - Participating.
results, monitoring the improvement and
- The HR Department will synthesize the
follow-up
results, monitoring the improvement and
follow-up and HR Manager will report
results to Board of Director monthly.
Cost - 8 million dong per activity - 2.5 million dong per person per activity
Times - Saturday morning of the last week of - June and December
month. - 2 days and 2 nights.
- Time is 2 - 3 hours.
Participants - Executing: HR Department - Executing: Third party.
- Participants: Staffs and Managers - Participants: Staffs and Managers
27

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30

Appendix 1 – The report of Viet Nam salary online survey in 2016
31

Appendix 2 – Transcript with Mr. Viet – Deputy Planning Manager.
Interviewer: Good morning, Mr. Viet.
Mr. Viet: Good morning.
Interviewer: As discussion with you by mobile phone. Today, I make an appointment with
you for interviewing something about your Department performance.
Mr. Viet: Ok. I’m ready for sharing.
Interviewer: Yes. For saving time, I will focus on the main interview contents. What are
main tasks of your Department?
Mr. Viet: We are responsible for managing Contract such as performing payment document
with Employers, control general schedule of Projects, reporting all of contract performance
to Director Board and planning for payment. In addition, we have to explain with
Government Agencies for completion of Project.
Interviewer: How many projects does your Department undertake this year?
Mr. Viet: There are 15 Projects in total of operation that we have to manage every year and
next year we will get more 2 big projects.
Interviewer: How many staffs in your Department?
Mr. Viet: You mean only staff. Now, there is only one staffs and he works for Business
Department. In 2016, we have 5 staffs, but in last haft of 2016 and first half of 2017, 4 of
them left the company.
Interviewer: How can your department manage 15 Project with 0 staffs?
Mr. Viet: When we have 5 staffs, all of works were completed well and on schedule
because our staffs are very young and professional. Now, I and Mr. Phuc – Planning
Department Manager will undertake all of works that staffs undertake before we combined
two Department, Planning and Business. Thus, the quality of tasks, schedule cannot be met
the requirement of Employer and Customer.
Interviewer: How does this situation impact on your performance?
32

Mr. Viet: Yes. The completion of documents is often late, impact on the reputation, finance
and image of the company.
Interviewer: Why don’t your recruit new employees?
Mr. Viet: Oh, we recruit many staffs in the last of 2016 and first haft 2017 for the leaving
positions, some of them cannot meet the job requirement, some of them left the company
after 3 or 4 months.
Interviewer: Do you know why the staffs left your company?
Mr. Viet: I talked with some my staffs before they left. Some of them left because they find
the better jobs, some of them feel unsatisfied. However, they didn’t tell me more. You can
talk with Human Resource for more information.
Interviewer: Could you give me the examples for effect causing by lack of personnel?
Mr. Viet: Ok. For example:
- In Package I, we submitted payment two months late, the value of payment is about
fifty eight billion VND, value of payment is about fifty eight billion VND. It impacts
on the finance for construction on site. Up to now, because of delayed cash flow, the
schedule of Package I is late for 2 month compared with required Schedule. If this
situation keep going up to completion of Project, as the condition and provision of
Contract, we will be punished 0.1% Contract Value, about 566.5 million VND per 1
late day.
- In Sai Gon – Metro Project: Because of late construction, we must bear the cost of
waterway warrant (560 billion VND per moth), for 3 month.
- In general, in this stage, payment document is late compared with the payment plan
from haft of month to 2 month because we don’t have enough staffs for performance.
The reputation of company is impacted because of these cases.
Interviewer: In the second example, Could you explain more about the reasons of late
construction?
Mr. Viet: Because of delay on submitting the design and shop drawing for approval, we can
deploy working on site. The technical Department was responsible for this situation. We
33

have about 15 Projects. However, too many staffs left company in the first haft of 2017. In
the case, we recruit new staffs for these position, they take at least 3 months to be proficient
with the job. So we can meet the schedule as required.
Appendix 3 – Transcript with Mr. Phuc - Deputy Human Resource Manager.
Interviewer: Good afternoon, Mr. Phuc.
Mr. Phuc: Good afternoon.
Interviewer: Thanks for your participation in interview today.
Mr. Phuc: I heard the contents you want to interview through your calling, I am very
interested.
Interviewer: Ok. As the contents I talk to you before. Today, I would like to find out the
issues that company shall face related to HR management. What are issues your company
facing in 2017?
Mr. Phuc: Ah, n this year, number of staffs who left the company continuous increase and
impact on the operation of the company this year.
Interviewer: Could you give me the data of left staffs such as number of staff of every
Department, number of leaving?
Mr. Phuc: Ok. No problem. Your research is the good way to help me find the solutions for
solving this problem.
Interviewer: Thank you so much. Have your department ever researched this situation?
Mr. Phuc: In 2015 and 2016, although there are a lot of employees who left company, but it
not seemed to impact on the operation of Company, number of staffs who left the company
continuous increase too many and impact on the operation of the company this year.
However, we have not found the effective solutions for controlling yet. We are working
hard to find the best solution.
Interviewer: You talk this problem impact on the operation of company, could you give me
the example of effects?
34

Mr. Phuc: In the first haft of 2017, three departments: Technical Department, Planning
Department and Business Department always complain with us about the lack of direct
staffs and required to recruit new staffs because they didn’t have enough staffs to work. The
document works in projects are regularly slow, cannot meet the requirement lead to delay
on construction on site. We received a lot of writings in this year from Employer for
complaining and punishing due to late schedule on site, late document for payment and so
on. All of this situation seriously impact on the reputation of our company.
Interviewer: Have you ever find out the reason of this situation?
Mr. Phuc: We conduct the questionnaire before they leave the company, some people of
them show the reasons such as: Not satisfied with salary, direct manager, family and health
reasons, going to hometown to work.
Interviewer: Does your department have any solutions for solving?
Mr. Phuc: Last year, we only recruited new staffs to implement. However, It seems not very
effective because new employees take at least 3 to 6 months to get familiar and proficient in
the job. Some of them cannot meet requirement, some of them work left company after
short time work in. In this year, we shall find out the main causes to have the more effective
solutions.
Interviewer: How do you evaluate the salary of the company?
Mr. Phuc: The level of salary is reasonable in this stage. The salary of staffs is high or low
depending on their competent and the Department Manager’s evaluation.
Interviewer: It means Department Manager will propose salary of their staffs and your
Department will consider and submit to Board of Director for approval.
Mr. Phuc: Exactly. I see all of cases are approved when Department Manager proposed.
Interviewer: Really? Role of the Department Manager are very important in the process of
setting up and increasing employee’s salary, isn’t it?
Mr. Phuc: Yes. The salary is appropriate or not depending on their evaluation and proposal.
Interviewer: Does your company pay for working overtime or other allowance?
35

Mr. Phuc: Tuan Loc CIC does not apply salary for working overtime, every staff has to
complete assigned tasks on time and ensure the quality. However, we support all of staffs
two third of lunch fees.
Interviewer: Ok. What do you think about management of the Department Manager?
Mr. Phuc: Most of them are good in the technical skill because they graduated and worked
with this field many years before become the manager. However, everyone has certain
limitations.
Interviewer: Could you talk more detail of limitations or weakness?
Mr. Phuc: Many Managers in the Department cannot maintain good relationship with staffs
and control their temper. In addition, most of managers are the detailed – focus and make
decision all of situation.
Interviewer: Yes. Do you think they are the reason make employees feel unsatisfied and left
the company?
Mr. Phuc: Maybe. I can answer the exact this question. Because, there are many factors
causing the employee turnover, I have to interview or survey staffs that left or staffs also
working in the company before make the conclusion.
Interviewer: Ok. I understand. Beside the contents we discussed, Are there any problems
related to human resource management that company shall face?
Mr. Phuc: Nothing more.
Interviewer: Thanks for your sharing today.
Mr. Phuc: Ok. If you need more information for your research, I can help you anytime.
Appendix 4 – Transcript with Mr. Nghia - Chief Accountant
Interviewer: Hello, Mr. Nghia. Thank for your arranging your time to day. Today, I make an
appointment to find out situations that our company has to face in this year.
Mr. Nghia: I’m very pleasured.
Interviewer: So many staffs in other departments left the company in 2 last years and first
haft of this year, do you know this issue?
36

Mr. Nghia: Yes. I know. This is the subjects I have heard in many meeting of the company
recently to solve. And other departments also talk with me about this issue. In addition, It
also impact on the finance of the company so I am really interested in this problem.
Interviewer: Could you explain more about impact on finance?
Mr. Nghia: Ah, I will briefly explain to easily understand. We built the finance planning
based on the disbursement schedule and construction schedule on site of all projects. In
2017, the actual disbursement and construction schedule are slower than planning, although
the planning is changed many times. Therefore, we have to change the source of financing
to meet operation needs by bank loans and bear more financial costs.
Interviewer: Why do you know the problems that come from lack of people?
Mr. Nghia: In the report of Planning Department last months, there are many reasons, but
the turnover in short time is identified as the main reason causing this issue.
Interviewer: Dose your department face with the situations as others?
Mr. Nghia: No. There are only 3 staffs left our department from 2014 to 2017. However, 2
of them move to subsidiaries for working and one left because of family reasons.
Interviewer: What the factors help you maintain the stable personnel system like that?
Mr. Nghia: I think I create the good relationship with my staffs and I understand their needs.
I find the way to meet their needs in my authorization. All of people in my department are
like a family and complete all of task and targets together.
Interviewer: Oh. Have you ever participated in other training course about soft skill?
Mr. Nghia: Yes, I have. But I think skills can be learned. The important and necessary thing
is awareness about the skills.
Interviewer: I heard Mr. Phuc share that: several staffs left the company was not satisfied
with salary and the direct manager, what do you think about that?
Mr. Nghia: I think the really problem come from the direct manager because the salary of
my department is also lower than other departments. However, no one complain and left. I
usually talk with my staffs, if the salary is low, they are willing to share. About the
dissatisfaction with direct manager, I used to see the manager in my company show the hate
37

attitude with their staffs, regularly scold staffs in front of others. All of these things will
make staffs feel uncomfortable and unsatisfied.
Interviewer: How do you evaluate accuracy the competence of your staffs and set up a
reasonable salary?
Mr. Nghia: I usually establish a valuation standard in every year and inform all of staffs in
my department. After that everyone will contribute their opinion to complete this standard.
In the time for rising salary, all of staffs will conduct 2 table of evaluation, one for himself/
herself, one for others. I will synthesize and make the final decision.
Interviewer: Do your staffs feel satisfied with your setting up salary?
Mr. Nghia: No one complain about this.
Interviewer: Do other department do like your way?
Mr. Nghia: Everyone applied another way. However, I think most of them do not spend
much time for doing it, they often evaluate by themselves.
Interviewer: Thanks for your useful information.
Mr. Nghia: I am glad when I can help you.
Interviewer: See you later.
Mr. Nghia: Ok. See you.
Appendix 5 – Transcript with staffs who left the company.
Interviewer: Hi. Nice to meet you today. Thanks for your participating in this interview.
Mr. Binh: Hello.
Ms. Hanh: Nothing, I am willing to help you.
Interviewer: I discuss about the contents about the interview before. I want to find out the
main reason you left Tuan Loc CIC and other related contents. Let’s start. During the work,
are you pleasure with the salary and bonus policies?
Mr. Binh: I am not really satisfied with the company's salary policy because the
determination of wages is based on the evaluation of direct management. And I think my
38

manager misjudges my competent when he set up salary. In addition, the company does not
pay for overtime and I think the salary is lower than other company.
Interviewer: About Ms. Hanh?
Ms. Hanh: Actually I do not care much about this. The salary is reasonable with me.
Interviewer: Why did you leave Tuan Loc CIC?
Mr. Binh: The work environment is uncomfortable because my manager is not very
friendly. I think my manager set up salary base on the average salary of other department in
many times.
Ms. Hanh: Not satisfied with the direct management.
Interviewer: Where do you work for nowadays? How do you evaluate the conditions
(including salary, working environment and manager) compared with Tuan Loc CIC?
Mr. Binh: Now I work for Eurowindow JSC. Salary is higher than working in Tuan Loc, but
not too much. However, both manager and employees in the new company are very friendly
and always support and help together.
Ms. Hanh: I work for Binh Chanh Mechanical Co., Ltd. I work for this company about 2
months, so I can talk more about my manager, but the working environment is very
friendly, always cheerful and sociable. About salary, it is lower than my salary in Tuan Loc
CIC. However I am very comfortable.
Interviewer: What do you think Tuan Loc CIC should change about?
Mr. Binh: Adequate criteria for evaluating staff competence to set up adequate
compensation and create a friendly working environment between management and
employees.
Interviewer: What is your opinion, Hanh?
Ms. Hanh: Changes in management styles of department managers. Many departments are
in a situation where staff does not feel comfortable with their direct management, special in
my department.
Interviwer: Does your manager often care, share to help employees more comfortable?
39

Mr. Binh: Never.
Ms. Hanh: Managers only care about the results of the work, not care about the process so
rarely support staff to complete the work.
Interviewer: Does management empower the job that you think can decide? What do you do
and how do you do it?
Mr. Binh: I only actively work with stakeholders to handle and I regular report the process
to manager and my manager seldom empower, the whole is decided by the manager
Ms. Hanh: The all of things are decided by manager. My mission is performing the process,
reporting regularly.
Interviewer: Is direct manager a specialist in the field of management or not? Explain why?
Mr. Binh: Not really a specialist because he is young and has not been trained
professionally yet. However, the ability to hit the mentality of the staff and pressured his
staff to complete the task and his ability to stick to his job very well.
Ms. Hanh: I do not think so. Although he is good in the technical skill, he have to improve
many other skill to become a specialist.
Interviewer: Does manager often loss his temper during work? Is it regular or not?
Mr. Binh: Sometimes, he losses his temper because he is very young and tempered.
Ms. Hanh: Usually. He used to shout employees in front of others.
Interviewer: Will Direct Management Blame You During Work?
Mr. Binh: Of course it is, he is his boss he has that right.
Ms. Hanh: Yes.
Interviewer: Thanks Binh and Hanh.
40

Appendix 6 – Questionnaire 1 to validate literature for leadership and actual situation
in Tuan Loc CIC’ Head Office.
Components for Please chooses one number Strongly Strongly
evaluation for each item Dissagree Agree
Idealized influence 1. I admire, respect and trust
1 2 3 4 5
your direct manager
2. My direct manager share
responsibility with staffs in the 1 2 3 4 5
working process.
3. My direct manager often
discuss and understand staff’s 1 2 3 4 5
needs
Inspirational motivation 4. My direct manager is
1 2 3 4 5
enthusiastic person.
5. My manager ever
encourages staffs by the 1 2 3 4 5
attractive future states.
6. My direct manager provides
staffs with meaningful, 1 2 3 4 5
challenging work.
Intellectual stimulation 7. The manager stimulates
innovation and creativity in
staffs by questioning
1 2 3 4 5
assumptions, reframing
problems, and approaching old
situations in new ways.
8. My manager seldom
publicly criticizes individual 1 2 3 4 5
member's mistakes.
41

Components for Please chooses one number Strongly Strongly
evaluation for each item Dissagree Agree
9. My manager encourages
staffs giving ideas and
1 2 3 4 5
proposing solutions to solve
problems.
10. My manager empowers
staffs to make the decision 1 2 3 4 5
many cases.
Individualized 11. My manager recognizes
1 2 3 4 5
consideration my needs and desires.
Appendix 7. Result of Leadership Survey 3 Departments (Technical, Planning and Business)
No. Questionnaires
Strongly
Disagree Neutral Agree
Strong Average
disagree agree score
1. I admire, respect and
13,04% 43,48% 21,74% 17,39% 4,35% 2,57
trust your direct manager
2. My direct manager share
1
responsibility with staffs in 4,35% 21,74% 56,52% 8,70% 8,70% 2,96
the working process
3. My direct manager often
discuss and understand 30,43% 52,17% 8,70% 4,35% 4,35% 2,00
staff’s needs
4. My direct manager is
4,35% 26,09% 43,48% 21,74% 4,35% 2,96
enthusiastic person
2
5. My manager ever
encourage staffs by the 8,70% 34,78% 30,43% 13,04% 13,04% 2,87
attractive future states
6. My direct manager 8,70% 39,13% 13,04% 26,09% 13,04% 2,96
42

No. Questionnaires
Strongly
Disagree Neutral Agree
Strong Average
disagree agree score
provide staffs with
meaningful, challenging
work
7. The manager stimulates
innovation and creativity in
staffs by questioning
47,83% 21,74% 21,74% 4,35% 4,35% 1,96
assumptions, reframing
problems, and approaching
old situations in new ways.
8. My manager seldom
publicly criticizes
26,09% 34,78% 17,39% 13,04% 8,70% 2,43
individual member's
3
mistakes
9. My manager encourages
staffs giving ideas and
4,35% 17,39% 17,39% 47,83% 13,04% 3,48
proposing solutions to
solve problems
10. My manager empowers
staffs to makes the decision 30,43% 39,13% 13,04% 13,04% 4,35% 2,22
many cases
11. My manager
4 recognizes my needs and 43,48% 30,43% 17,39% 8,70% 0,00% 1,91
desires
Average 2,57
43

Appendix 8 – Questionnaire 2: Company Communications Evaluation.
Note: The purpose of this questionnaire is only to collect data regarding to identifying the
main causes you left the company. The data is vital for the mini research so hoping that
these questions will be answered honestly. Keeping all information secret is committed.
Thank for your doing this questionnaire.
1. Why did you leave Tuan Loc CIC?
A: Low and unreasonable salary/ bonus
B: Working stress
C: No opportunity for promotion
D: Dissatisfaction with Department Manager
E: Family reason or displaced.
F: Bad relationship with colleague
G: Better suggestion from other company
H: Others: …………………………………
2. How do you evaluate salary of Tuan Loc CIC?
A: Very low
B: Low
C: Reasonable
D: Quite high
E: Very high
3. How do you feel about the working environment?
A: Very poor
B: Normal
C: Friendly and sociable
4. How do you evaluate the relationship between staffs?
A: Very bad
B: Bad
C: Normal
44

D: Quite good
45

Appendix 9 – Transcript with Ms. Tam - Human Resource Manager
Interviewer: Hello Ms. Tam and thanks so much for participating in interview today. I will
focus on the main content to save time.
Ms. Tam: Ok.
Interviewer: I have sent you the problem and reasons causing this problem.
Ms. Tam: I saw and read this content. However, I really don’t understand means of the
terms of causes you write. Could you explain more about this term?
Interviewer: The first emotional intelligence is ability to understand one’s own and the
emotions of others.
The second, interpersonal skill is the ability to communicate effectively with staffs.
And finally, trust is keeping promises and commitments.
Ms. Tam: Ok. I understand. What is the main contents you want to find out today?
Interviewer: My main purposes are about the identifying the root causes that impact directly
with problems that company have to face and how to solve the problem effectively.
46

Ms. Tam: I am very glad to answer your question today.
Interviewer: What reasons do you think causing the ineffective leadership of the department
manager?
Ms. Tam: I think the first cause is from emotional intelligence. Because, as I know, the
department manager rarely discusses to understand their staffs, they should improve this
aspect. When we conduct the survey, most of staffs are not pleasure with their direct
manager about the enthusiastic and communication with them. So the manager cannot
understand his subordinates.
Interviewer: Why do you think the managers do not understand staff’s emotion and control
staff’s emotion?
Ms. Tam: Many staffs left Tuan Loc CIC, they are unsatisfied with the direct manager. If
managers own the emotion intelligence, they will find out the reasons and solution for
improving by themselves. However, up to now, everything has not changed.
Interviewer: What about other reasons?
Ms. Tam: About the trust, our Department have never surveyed before. I cannot share
anything with you about this aspect. About the interpersonal skill, I saw that: There are
some problems with department managers, such as shouting staffs in front of others and
regularly repeat the last faults of employees as several ones complain. I know 1 situation,
the manager made difficulty for employees to take leave.
Interviewer: Ok. I summary the reasons you mentioned: the first is emotional intelligence,
the department manager cannot understand their subordinates because they seldom discuss
and share feelings with others. The second, the interpersonal skill of the department
manager is limited, many staffs complain about their manager about this matter. About the
trust, you do not have information about this.
Ms. Tam: Yes. That’s right.
Interviewer: What are the solutions for solving ineffective leadership with the contents as
discussed last time?
Ms. Tam: I think several ideas:
47

The first, organizing team building every 3 or 6 months to create good relationship between
staffs and direct manager; staff and staff.
The second, we should develop an internal training program to train the department
manager.
The third, find third party to train or find the training course to manager participate in.
Interviewer: In your opinion, what is the best solution?
Ms. Tam: At that time, I could not answer this question. Because it belongs to a lot of
factors, I have to consider all of factor and make a detailed evaluation. Then I will answer
your question.
Interviewer: Pleased help me evaluate and find the best solutions. I will make another
interview when you are ready for this question.
Ms. Tam: I will call you when I completed.
Interviewer: Yes. Thanks you so much, Ms. Tam.
Ms. Tam: Ok. See you later.
Interviewer: See you soon.
Appendix 10 – Transcript with Mr. Thang - Deputy General Director
Interviewer: Thank you so much for participating in this interview today. I will focus on the
main contents to save time.
Ms. Thang: I hope you will get the necessary information for your research.
Interviewer: Thanks Sir. I will introduce briefly the problem and potential causes of our
company: The first, in my research, central problem is ineffective leadership impact on the
satisfaction of the employees causing high turnover rate taking place in 3 departments:
Technical, Planning and Business. The second, after conducting interviews with HR
Manager combined with other theories, I identified 3 root causes: negative emotional
intelligence, poor interpersonal skill and lack of trust.
Mr. Thang: Last month, I required the Human Resource Department reported detail of this
situation – a lot of staffs left company this year. This problem impacts on the performance
48

in this year. Standing on a management perspective, we focus all resources to solve the
problem soon.
Interviewer: What do you think when the result shown that: the problem is ineffective
leadership in 3 departments (Technical, Planning and Business)?
Mr. Thang: I also recognize that problems come from the skills of Department Manager,
because it only occurs in these 3 Departments. I think they are lack of the necessary skills to
become a good leader beside technical skill.
Interviewer: The first question, what reasons do you think causing the ineffective leadership
of the department manager?
Another example for interpersonal skill: I used to see management scolded employees in
front of other employees. This expresses of lack of confidence in his skills.
Interviewer: What about other causes?
Mr. Thang: Ah, emotional intelligence is a cause. I’m sure Ms. Tam shared with you about
this cause. I want to emphasis that the good relationship between Department Manager with
their staffs do not be maintained. It proved that managers cannot understand their emotion
and control emotion.
Interviewer: What about lack of trust?
Mr. Thang: I think if Department Managers cannot meet the requirement of intelligence
emotional and interpersonal skill, trust cannot be built.
Interviewer: I understand. In your opinion, are there any other causes?
Mr. Thang: It’s enough.
Interviewer: What are the solutions for solving ineffective leadership with identified
causes?
Mr. Thang: Training is a appropriate solutions. However, HR Department has to analyze
and choose the training forms. Another way, change Department Manager can be performed
if it is really necessary.
Interviewer: Are there any other solutions?
49

Mr. Thang: No. In this case, 2 solutions can be applied.
Interviewer: In your opinion, what is the most effective solutions?
Mr. Thang: I think training is the best solutions because I know leadership skill can be
improve by training. About remaining solution, I am not sure our company can be find
better managers and it can be costly.
Interviewer: Yes. Thanks you so much.
Ms. Tam: You are welcomed.
Appendix 11 – Transcript with Ms. Tam – Human Resource Manager for
Evaluation of solutions
Interviewer: Nice to meet you today, Ms. Tam.
Ms. Tam: Nice to meet you, too.
Interviewer: As discussion last weeks, you showed three solutions including: organizing
team building; developing an internal training program; external training. Today, we will
continue identify the best solutions for solving our problems. What components do you use
for analysis and evaluation of solutions, Mr. Tam?
Ms. Tam: There are 5 necessary factors including: realistic and feasibility; requirement of
time; cost saving; company’s resources and obtained benefits need to be analyzed and
evaluated to identify the most reasonable to apply for solving problem.
Interviewer: You talk: realistic and feasibility; requirement of time; cost saving; company’s
resources and obtained benefits, aren’t you?
Ms. Tam: Yes.
Interviewer: Ok. So we will focus on every factor. How do you evaluate benefits of
solutions?
Ms. Tam: We can create the environment to practice, interact, share and get feedback
between all people in organization by using teambuilding or internal training. Meanwhile,
when our manager participate in the external training, it is impossible. All of solutions have
an common benefit that is “improving the skills, knowledge and performance”.
Interviewer: What about Realistic and Feasibility?
50

Ms. Tam: Board of Director supports 3 solutions because they are perfectly fit with
Company policies and culture. So, we can apply all of them. However, Board of Director
will approve the most appropriate with company condition.
Interviewer: Can you evaluate the advantages or disadvantages of 3 solutions?
Ms. Tam: The first, with team building, my department is very easy to prepare all of
programs.
The second, there are many disadvantages with internal training because our company is not
professional in training & education and if training program is improper, we will not get the
expected results.
The third, external training overcomes the weakness of internal training due to training by
expert.
Interviewer: I understand. Could you evaluate remaining factors: requirement of time; cost
saving; company’s resources?
Ms. Tam: Ok. About time and resources, team building and internal training take long time
to get the effectiveness, and many resources. Meanwhile, team building is lower cost than
internal training. As our survey, only external training is the more advantages such as more
quickly to get the results, lower cost and company do not need to spend their resources.
Interviewer: As your analysis and evaluation, which solutions should Tuan Loc CIC choose
to solve problem?
Ms. Tam: In my opinion, we should choose 2 solutions: team building and external training
for improving emotional intelligence and interpersonal skill.
Interviewer: Thanks for your help.
Ms. Tam: Ok. See you later.
Interviewer: See you.
51

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