Ineffective managerial support in electrolux VietNam AC

Abstract

Customer dissatisfaction undoubtedly imposes a challenge for the organization to maintain consumers’ loyalty and retention 62. Dissatisfied consumers discontinue purchasing the product or service as well as have a high potential to engage in negative word-of-mouth communication about the organization’s product or service 62. The fact that keeping customers satisfied with their product or service does have a positive influence on an organization’s profitability is non-negotiable 63. Hence, customer defection or discontinuance of purchase from consumers causes Electrolux Vietnam AC to suffer remarkable loss of sales. To investigate the worrisome situation, potential problems which are identified through interviews and subsequently confirmed with theories involve ineffective managerial support and ineffective segmentation. By evaluating and verifying each potential problem, a discussion to focus on ineffective managerial support is determined as the central one. Electrolux Vietnam AC is confronting the ineffective managerial support that makes their employees feel dissatisfied with the job and consequently, has low commitment and intention to leave the company in the future. Their low productivity causes the organization to experience low performance as well. After further rounds of interviews and the support of literature, the validated and most important cause of ineffective performance evaluation is chosen to build the set of solutions. The possible solutions for improvement of performance evaluation are training sales manager and supervisor on evaluating and giving performance feedbacks to their subordinates effectively or developing the performance management system. Basing on the cost-benefit analysis, the development of the performance management system is feasible to efficiently solve the ineffective managerial support. The solution is beneficial from available resources that are gained from the cooperation between HR department and sales department, which costs around VND 11,500,000 and takes approximate two months without a break in order for salespeople to keep up with the schedule to promote their work efficiency. By taking an action, this cost-efficient solution can terminate the current problem of Electrolux Vietnam AC. Not only customer satisfaction but also employee satisfaction is expected to enhanced in order to improve the organizational performance.