intership report on improving employee engagement in lavie company hưng yên factory

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UNIVERSITY OF NICE – SOPHIA ANTIPOLIS IAE School of Business

Administration THANG LONG UNIVERSITY

INTERSHIP REPORT ON

IMPROVING EMPLOYEE ENGAGEMENT IN LAVIE COMPANY – HƯNG YÊN FACTORY

BY

TO THI THU HIEN – AMI 9B

Under the Guidance of Academic supervisor Assoc.Prof. DAO NGOC TIEN

And Company supervisor Mr. NGUYEN NHU THIEN

Hanoi, October, 2019

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ACKNOWLEDGEMENT

Firstly, I would like to express my appreciation to all the professors in AMI Program from University of Nice Sophia Antipolis and Thang Long University, which have given me the useful knowledge, experiences, and skills to my life and work.

During my internship, I am particularly grateful to my academic supervisor, Assoc.Prof. Dao Ngoc Tien, for his time, expertise and helpful comments for my report.

Then, I would like to send my special thanks to Mr. Nguyen Nhu Thien, the Plant Manager of Hung Yen Factory, Lavie Co., Ltd.,. He coached, trained me a lot and helps me to collect data for my reports.

Finally, I would like to thank my family and classmates who are always side by side to support and encourage me throughout my studying.

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ABSTRACT

The research aims to study the factors influencing on employee engagement at Lavie Company – Hung Yen Factory in order to give some recommendations for improving employee engagement. Literature review part presents the concept of the employee engagement, the other model relating to employee engagement and the factors could influence employee engagement. Based on that the author chose five factors to analyze in this research which are strategic alignment, line manager’s performance & behaviors, training & development, working condition, and total reward. The qualitative research is carried out first to correct and complete observation variables for the scales. And then the quantitative research is performed with 76 employees who are leaders, supervisors, and managers working in Lavie Company – Hung Yen Factory. The research uses the Likert scales from 1 to 5 with 1 is strongly disagreed and 5 is strongly agree to measure the agreement of participants. Among the 5 factors, Line manager’s performance & behaviors factor gets the highest agreement of the employees. The second important factor in engaging employee is strategic alignment and then salary & benefit, the next is working condition and the last is training and development. The result presents that employee engagement has a positive correlation with all five factors.

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2.2Organization Structure Descriptions: ... 9

2.2.1The Board of Management ... 9

2.2.2General Manager... 9

2.2.3Factory Plant Manager ... 9

2.2.4Maintenance Department ... 9

2.2.5Safety and Health Department... 10

2.2.6Quality Assurance – QA Department ... 10

2.2.7Production Department ... 10

2.2.8Industrial Productivity Department ... 10

2.2.9Logistics Department ... 10

2.2.10Human Resources Department. ... 10

2.2.11My internship position and duty ... 11

CHAPTER 3: ... 12

3.1Tasks Assigned: ... 12

3.2Links Between The Subject Matter And The Mission ... 12

3.3Individual Schedule ... 12

3.4Contributions To The Company ... 13

3.5Theoretical Knowledge Applied ... 13

3.5.1.Process of Employee Engagement ... 13

3.5.2.Benefits of Employee Engagement ... 14

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3.5.3.Elements of Employee Engagement ... 15

3.5.4.Characteristics of Engaged Workforce ... 15

3.5.5.Three C of Employee Engagement... 16

3.5.6.Key players in enhancing employee engagement... 16

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INTRODUCTION

Today the competition for human resources is always an issue that all of the enterprises have to pay the attention. Many firms have been aware of the importance of human resources that is assets, the lifeblood of the organization. An organization may have modern technology, good service quality, and good infrastructure but without effective workforce, such organizations may hardly survive in long time and build competitive advantage. So how to take advantages of resources in order to create growth for the organization is a critical issue for every manager.

With the aim to help organizations in Vietnam could refer to build a highly engaged working environment, this study will focus on determining the factors influencing on employee engagement. In a short time of the internship, and with input more point of view for company's managers, I would work on the thematic research topic: “Improving Employee Engagement in Lavie Company – Hưng Yên Factory”.

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world-With ninety five production sites in thirty four countries, Nestlé Waters has 33,700 employees and a portfolio of 49 distinctive brands, enabling to perpetually initiate so as to fulfill the various expectations of customers all over the world. Among those brands, Nestlé PURE LIFE has become in 2008 the biggest bottled water brand sold in the world.

Here are the key figures of Nestle water in 2016:

La Vie Co., Ltd has been a member of Nestlé Water since 1992. Throughout the past 25 years, LaVie Natural Mineral Water Company has been continuously effect to develop the simplest products and services for customers. According to BC Neilsen 2016, La Vie Natural Mineral Water is the leading bottled water market in Vietnam.

Water is considering the selection of daily hydration because it doesn’t add any calories to diets, particularly as public challenges linked to obesity in the world are increasing. Bottled water is a healthy packaged beverage thanks to its absence of calories, its controlled origins, its outstanding quality, its taste, and convenience.

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3 Lavie is certified by the Ministry of Health and Vietnam Food Associating. Lavie is the first beverage Company in Viet Nam to achieve ISO 9001 certificating in 1999. Lavie has additionally been certified for Viet Nam high-quality products in successive 19 years.

1.2 Business Principles

Lavie Company implements 10 business principles of Nestle Corporation. These principles focus on five groups including consumer, human rights, people, customers & suppliers and environment. For the consumer, the company ensures three following principles:

 Nutrition, health, and healthy living: Nestle &’s goal is to improve the quality of life for consumers everywhere by offering more delicious and healthier food and beverage products, encourage a healthy lifestyle. Nestle expresses this through the slogan “Good food, good life”.

 Ensure quality of product and food safety: On over the world, the trademark Nestle expresses the commitment to consumers of full and high standard products.

 Communicate to consumers: Nestle commits to provide responsible and reliable communications to consumers in order to provide them the right to choose with full information.

 For human right, the company ensures one following principle:

 Human rights in all business activities of the company: Nestle fully implements the global treaty of the United Nations guiding the principles of human rights and labor.

For people, the company strictly follow two principles below:

 Leadership and individual responsibility: Nestle’s achievement is based on each employee in the company. We treat each other with respect and self-esteem and expect everyone raising awareness about personal responsibility. Nestle recruits talented people, enthusiasm and respect the values of the company. The company also gives them opportunities to grow and develop. Beside that, the company protects employee’s privacy and do not allow any form of harassment or discrimination.

 Health and safety: Nestle commits to preventing injuries and illnesses relating their work, and protecting employees, contractors and other relevant stakeholders throughout the value chain. For customers & suppliers, there are two following principles:

 Nestle requests suppliers, agents, contractors, and their staffs show the honesty, integrity and fairness complying with Nestlé’s mandatory standards. Likewise, Nestle commits to doing this because of the customers.

 Agriculture and rural development: Nestle contributes to improving agricultural productivity,

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Buying packaging materials

enhancing the social and economic of farmers and rural communities and improving the production system in order to build a sustainable system of the environment.

For the environment, here are two principles:

 The sustainability of the environment: Nestle commits launching the business with the sustainable of environment. At all stages of the product lifecycle, Nestle strives to use of natural resources effectively, prioritizing the use of renewable materials.

 Water: Nestle commits to use water sustainably and continues to improve water resource management.

1.3 Business Activities

Lavie Company has three main activities as the following diagram:

- Buying packaging materials: Through the purchasing department, all packaging materials for

production will be purchased and stored in the warehouse of the factory. All these materials are tested by quality assurance team before going into production.

- Producing: Raw water is taken from very deep underground water vessels. Lavie must respect a

process of 22 steps to properly test and pass the management closed loop regulations. Starting with retrieved mineral underground and the input packaging materials to finished products. Mineral water from groundwater after filtering system will be filled to clean bottles in the absolute sterile environment. The production lines are designed according to a technology of Italy with an automatic washing system and an automatic high pressure. The safe and modern production technology will allow Lavie to achieve its highest productivity.

- Selling: Finished products will be sold through distributors and dealers system across Vietnamese

country.

1.4.Company’s Overview

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5 Until 2019, total employees are working for Lavie Company at Hung Yen Factory is 352 peoples. The gender balance, age and working year as the following chart:

Figure 1: Gender balance in 2019 at Lavie Company

Figure 2: Employee’s age in 2019 at Lavie Company

Above 45 36-45

26-35 Below 25

54.3%

60.0%

Employee's Age Gender Balance

Male 59.6% Female 40.4%

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Figure 3: Working year for Lavie Company

The above numbers show that, the gender is quite balance with 40 percent of female and 60 percent of male. The percent of male is a litter higher than female due to for the manufacturing need more technicians and operators than inspectors. The age of the employee is quite young, older than 45 years old takes only 3.3%. The main force group is from 26 to 35 years old with 54.3%. This group of employee is experienced and is still willing to the innovation. For the working for the company, the ratio of employees working over 5 years for the company is quite large with nearly 38%. The rate of employee working less than year is 26.5% in which around 8% related to the turnover rate, the rest equal to 16.5% due to the expand of company’s business.

1.5.Lavie’s Policies

- Training and Development: Lavie focuses on developing two aspects for each employee. They

are problem-solving skills and leadership competency:

+ For the problem-solving skills, the company provides some tools. All employees will be trained these tools by experts of Nestle Corporation then they will practice in your daily operation.

+ For leadership competency development, there has 6 Success Drivers applicable to all employees depending on our position level in the company: All Employees, Leaders and Senior Leaders.

15 to < 20 10 to < 15

5 to < 10 1 to < 5

0 to 1 0.0%

0.0%

15.0% 10.0% 5.0%

11.9%

30.0% 25.0% 20.0%

26.5% 26.5%

35.0%

Working year for the company

35.1%

40.0%

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7 - Total Reward policies: Lavie applies the attractive total reward policy according to each level.

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CHAPTER 2: COMPANY STRUCTURE AND ORGANIZATION CHART

2.1 Organization Chart

Note: Orange will express Lavie Factory’s organization. Other departments will be leaded by head quarter.

General Manager

Human Resource Department

Operations

Demand and Supply department

Purchasing department

Factory Plant Manager

Logistic department

Accountant department

Information technology department

Administration

Safety & Health department

Production department

Quality assurance department

Industrial Productivity department

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2.2.2 General Manager

The General Manager is additionally Chairman of the Board of Management who was appointed by Nestle Headquarter for 5-year cycle. He makes decisions on all problems regarding to day-to-day business operation of the company; appoint, take away and dismiss personnel within the company; recruits staffs and makes decisions on salary and allowances for staffs of the company. He also is in charge for the sales and effectiveness of the Vietnam market.

2.2.3 Factory Plant Manager

Factory Plant Manager is recruited by the General Manager to be in charge in each factory. Lead factory to sustainable high performance in alignment with the necessities of the business. This is often usually documented within the Operational Master Plan which the Factory Manager would assist in developing.

- Plan, organize and lead the factory team to achieve the agreed objectives (supply, safety, environment, quality, cost, and service).

- Proactively drive focused improvement to achieve targets on KPIs in agreement with Business and Technical Management of the market or business.

- Ensure adherence to all Company principles and policies as well as local laws and regulations. - Ensure development of factory management team and employees - through performance

management, career development, succession planning, and coaching.

- Collaborate with factory managers to share best practices. Liaise with Sale, Purchasing, Logistics, Marketing, etc. to drive continuous improvement.

2.2.4 Maintenance Department

Maintenance Department can guarantee production line and industrial service machines/ instrumentality to be maintained in good condition, smooth running with less breakdown whereas optimizing the cost and energy consumption. Besides, to push maintenance improvement through NCE implementation basis and maintain a safe working environment in compliance with the local laws striving for Zero accidents through continuous coaching on safety behaviors.

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2.2.5 Safety and Health Department

SHE Dept can support & advise the Factory Management team in all aspects of Safety, Health & Environment (SHE) with a strong specialize in implementing initiatives, together with developing & driving site initiatives resulting in continuous improvement in SHE performance in line with the Nestlé Continuous Excellence mentality of zero accidents and incidents.

2.2.6 Quality Assurance – QA Department

Quality Assurance (QA) plays an important role in each factory. Manage all quality processes of the factory and North market to satisfy or exceed established goals/KPIs. Make sure the best organization and performance of the company’s quality system within the factory together with the performance of the laboratory and hygienist. Ensuring compliance of quality system and standards to local law or regulations as well as Nestle Guidelines.

2.2.7 Production Department

Production Department will make sure the production plan is absolutely achieved in terms of volume and time with the consideration of compliance with legal needs, safety, quality, hygiene, cost and environment. Driving continuous improvement

2.2.8 Industrial Productivity Department

In Nestle Water, we focus on continuous improvement in each department of the factory.

2.2.9 Logistics Department

Logistics Departments can guarantee supply together with Production planning & MSA measurement; Warehouse & inventory planning; Inbound & outbound logistics service orientation; Compliance (Quality, Safety, Factory's programs).

2.2.10 Human Resources Department.

HR Department is accountable for the people agenda within the accountable within the factory and the driving force behind creation and implementation of individuals strategy, in details:

- Organizational Design & Development: Pro-actively challenge the established organizational structure of the responsibility to drive superior performance (taking account of Nestlé principles, policies & local business context).

- Performance & Talent Management: Guarantee Performance and Talent Management drive the achievement of business goals through objective and development plan setting, performance calibration and talent development

- Employee Relations: Coordinate with FAM/HEADs to push information and customary understanding of the Nestlé Corporate Business Principles, the Nestlé Code of Business Conduct and the Nestlé Employee Relations Policy with the target that every employee becomes an ambassador of Nestlé Culture, Values and Principles.

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- Employee Engagement: Promote and foster a culture and environment that’s productive, open, empowering, safe and equitable and coach others to behave and make decisions in line with Nestlé Management and Leadership Principles and Nestlé Corporate Business Principles. - Recruitment: Conduct assessment and selection of candidates in compliance with laws,

Company's standards/policies, using Competence-Based Recruitment.

- Compensation & Benefits: Manage and guarantee all practices following Labor Law.

2.2.11 My internship position and duty

I started working in Lavie Company as HR Project Coordinator from July 2019. I used to be appointed to figure as a project coordinator which initially under the supervision of the Factory Plant Manager. My daily job was to support the Factory Plant Manager about improving employee engagement index for Lavie Hung Yen Factory. It’s quite a big job, however, under our Factory Plant Manager’s supervisor and my HR experiences, we resolve and have many suggestions for Factory.

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During my internship period, Mr.Thien helps me so much in the introduction of studying about the company, collecting information, analyzing data and implement actions plan with departments.

3.2 Links Between The Subject Matter And The Mission

As the instruction of my company’s supervisor, my mission is directly linked with the subject matter. Firstly, I have to understand well the company and the departments to have an overview of the company I work for and understand how the business runs in the company. This is the basic step of any missions. Secondly, collecting history and current information is key step to get the right direction by refining data for developing actions plan. And the last, after having all the needed information and then refine data for actions plan. I assisted Mr. Thiện in analyzing the information by using Nestle Guideline and other current methods in the market. Therefore we can get good feedback and increase the EEI result after 2 months implementing.

3.3 Individual Schedule

The table below will show my working plan:

I Study feasibility of the project

To learn general information about the company: history; business scale; types of business; organizational structure; current HR policies

5 days

II Develop the strategy of the project

III Implement the project

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3.4 Contributions To The Company

I have worked in Human Resources field for years, and I feel really love to have a chance to support and help people for their better working. That’s why I applied at Lavie and this Project. Recently, Lavie has strong growth in sales in the Vietnam Market. From 2011, the company reaches at least 30% growth every year and especially in 2018 is doubled compared to 2017. But the trend of employee’s turnover rate is going up. So my research may help the company somehow in prioritized effective actions. This also can be the reference for other companies which is trying to increase engagement index. I will use my knowledge acquired from the MBA course and my own experience in working with people from other industries to help Lavie to overcome this matter and to have engaged workforce.

3.5 Theoretical Knowledge Applied 3.5.1. Process of Employee Engagement

Since the mantra of success of any organization is that the higher involvement, engagement, and dedication of staffs towards their jobs and their continuous performance to gain more, it ‘s necessary to retain their spirits high, encourage them to perform their best and generate a breed of satisfied and good staffs. Employee Engagement isn’t a onetime step that could quickly bring results; rather it’s an ending step that will persist until the existence of an corporation.

As it is the fact that there’s a transparent link between structure performance and employee engagement, each organization seeking sustenance and growth within the ever-changing world of labor quickly answer to the wants of staffs along with designing and implementing a tailor-made step to extend the degree of employee engagement. The following are a couple of basic steps during this step based on the simplest industry practices.

- Prepare and Design: The primary process within the step is about discovering the precise

necessities of your organization and deciding the priorities. Then, a tailor-made style of carrying the total step could be designed. It is suggested to find the recommend of professional advisor so as to extend the possibilities of obtaining it done right at the primary try.

- Employee Engagement Survey: Design the questions of the employee engagement survey and

deploy it with the assistance of an applicable media. It are often either in written type or set online according to the comfort level of the staffs and your form evaluation step.

- Result Analysis: It’s the foremost necessary step within the entire step. It’s time once reports are

to be analyzed to search out what specifically motivates staff to perform their best and what really disengages them and at last compels them to depart the organization. The results and data will then be delivered through shows.

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- Action Planning: “How to show the results of the survey into an action” maybe a difficult

question that organizations ought to tough upon the almost care. Coaching of line managers in addition to HR professionals is incredibly necessary so as to inform them the way to take applicable actions to interact staff. They must even be told about do and don’t so that they ‘ll successfully implement the changes.

- Action Follow up: Action follow up is important so as to search out if the action has been taken

within the right direction or not and if it’s manufacturing the specified results.

3.5.2. Benefits of Employee Engagement

- Cost of Disengaged Workforce: The findings of the Gallup Study of 2008 show that whereas the

engaged staffs believe they’ll contribute to company’s growth, the disengaged staff believes otherwise, for ex: his job doesn’t contribute to the organization. This belief of the disengaged staff creates a negative spiral that affects his work, co-workers, customers, productivity, and eventually both happiness of staff and company performance. Some effects are illustrated below:

 Effect on Work – The disengaged staff tries to evade work, struggles to fulfill deadlines and is reluctant to accept extra responsibility.

 Effect on Co-Workers – The negativity of a disengaged staff, incontestible either through raves and rants or complete withdrawal from participation, affects the team morale. In any case, who has not detected of the saying – one dangerous apple will spoil the total bunch.

 Effect on Customers – Each staff, whether a company likes it or not, becomes its ambassador. And a disengaged staff either by actively de-selling the organization or by complete apathy towards their work, product, process, organization facilitate produce disengaged customers.

 Effects on Productivity – Disengaged staffs rarely push themselves to fulfill structure goals plus contribute to innovative practices at the workplace. Since they do not believe that their work contributes to the organization; they evade finishing tasks thereby poignant team productivity.

 Effect on Company Performance – within the corporate world, time is cash and organizations should pioneer to remain relevant. A disengaged workforce by virtue of delayed completion of tasks and inability to improvise and pioneer value the company that ultimately affects the bottom line.

 Effect on Personal Life of Staff – A disengaged staff is rarely able to shake off the lethargy and perform within the current organization or land employment of preference. This ends up in confined up frustration which can ultimately have an effect on his personal and family life.

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- Benefits of an engaged workforce: An engaged workforce kind an emotional connect with the

organization that helps them:

 Go the additional mile to attain individual and Company success

 Innovate at Workplace

 Attract customers and staffs

 Become Evangelists of the corporate, its product and processes

 Infuse energy and positivity at the workplace.

3.5.3.Elements of Employee Engagement

Four things are vital with employee engagement:

- Commitment: Commitment means that the degree to that people associate themselves with the

job, the responsibilities and therefore the structure objectives. Staffs are dependable and extremely productive and be responsible for what they are doing.

- Motivation: If staffs put in their 100 percent efforts to require their organization to following

level. Proper rewards and recognition encourage them to attain more and more for their organization. Motivation and accomplishment go hand in hand and act because the burning fuels for the success of any organization.

- Loyalty: Staffs who are actively engaged in their work show more loyalty towards the

organization. The simplest part is that they have less focus and a spotlight of managers to perform their task as they themselves feel in charge of their job responsibilities and results attained. Recognition may be a basic necessity for people to stay their loyalty.

- Trust: High levels of employee engagement is fostered only if trust come back from both sides.

Staffs should tend autonomy to perform their tasks on their way.

Besides four important components above, two-way communication to debate challenges, potential consequences, vision, core values and organization’s future ought to be established. Meanwhile, a structure culture, reward system together with compensation, benefits, recognition, learning and development of staffs play vital part of it.

3.5.4.Characteristics of Engaged Workforce

The level of employee engagement are often measured by the willingness and talent of staffs to contribute to the success of their organization. The main points can be:

- Mutual Trust: Letting people do their work while not telling them a way to perform it’s one of

amongst the most effective ways in which to have interaction staffs. Staffs welcome every other’s opinions and establish a good form of ways to accomplish a specific task. A extremely engaged

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workforce doesn’t want directions at every step. They will perform their jobs with mutual facilitate and trust.

- Job and Career Satisfaction: The individual who is glad with their career and also the way their

career graph is raising prefers to stay to the organization for very long time.

- Credible Leadership: Staffs know how to try and do it within the best way. They not solely

exhibit leadership qualities in routine tasks however also come back up with innovative ways to deal with crisis and emergencies.

- Focuses and Keen to require up challenges: The engaged workforce is willingly take up new

challenges, learn new things and widening their horizon.

- Better Performance: Employee performance is the solely way to measure the engagement,

involvement, and dedication of staffs towards their jobs.

- Problem Solving Attitude: An extremely engaged staff displays a way of belongingness towards

the organization and makes an effort to resolve the problem.

3.5.5. Three C of Employee Engagement

- Career: When joining an organization, everyone all expects to have a career path. If the line

managers spend dedicated time in developing the careers of their employees, they will feel that they belong to this organization.

- Competencies: Organizing workshops and training sessions could help employees to acquire a

higher level of skills and competencies. While the career focuses on the actual growth in terms of designation, wages and perks and authority, competence is the ability to grow to utilize the opportunities.

- Care: The managers need to be empathetic and sensitive towards people and understand their

personal problems. Showing day to day caring gestures towards employees make them feel belong to the organization.

3.5.6. Key players in enhancing employee engagement

- Line Managers: they play the most important role in enhancing the levels of employees. They

spend more time with them and they can easily determine their actions and find out what will keep them motivated. Although the directions come either from the top manager or HRD but they are the one who implements the process and define the level of satisfaction.

- Human Resource Department: They identify the most common factors that increase and

decrease the engagement levels. Then they study all the cases and bring them to the top management.

- Senior Leadership and Top Management: From HRD report or consulting, they decide the priorities and make investments.

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