Name: Nguyen Thanh Vinh

ID: 20200855

1. The pandemic has brought a lot of difficulties to the Economic environment of

Vietnam. Among many industries that receive negative impact from the Covid-19
pandemic, some of the pharmacy corporations still have the abilities to keep up their
revenue and growth. Their resources provider (80-90% from export) can be badly effect
by restriction from trading among countries, however, they have been and currently
being positively affected as pharmacy demand increases rapidly.

Hau Giang Pharmaceutical company created some breakthrough during the pandemic.

The company did receive several negative impact from the pandemic. Because the
government applied the social distancing policy, the company in the South area
(including Hau Giang) has to reduce production capacity because of resources shortage.
Moreover, some Covid waves made many hospitals become the temporary Covid
station. This reduce the number of patients come to hospital and reduce the pharmacy
selling.

Beside though disadvantages, Hau Giang (DHG) company did manage and keep up their
growth by focusing on positive impact from the pandemic. On the third quarter of 2021,
the company revenue is ~944B VND (raised 9.2%). The company focus on producing
current demand products such as Covid medical equipment, medicine for body
resistance, antiseptic water, … This provide product for domestic market and also
support international exportation. During the pandemic, Hau Giang increase number of
pharmacy station from 28000 to 30000 across Vietnam. With revenue from these
resources, Hau Giang has kept up to be in the top 50 best trading companies of Vietnam.

2. The Ministry of Planing and Investing, and the Ministry of Finance are two of the
organization that are responsible for the fiscal and monetary policies of Vietnam.

In 2020, the government opened a fiscal policy on household for financially support
people whose job/income badly affected by the pandemic. Each eligible individual can
receive from $34 to $241 per month. The main method is direct cash transfer. This
policy quickly bring positive impact to many people, increase positive consumer
sentiment, higher personal well-being and more trust in the government.

In 2021, Vietnam government releases some monetary policies to support business and
individual in coping with financial difficulties and also to balance the economical state.
Among the policies, there exists one policy that re-define debt re-pay period, reduce or
remove interest rate for customers whose Covid-19 difficulties. Until 20/12/2021, the
national central bank extended debt due for 755.000 customers, reduce or remove
interest rate for 2M customers with remaining total debt equal 3.87M VND. The central
bank also support business to loan money for employment pay with interests rate 0%.
From these policies, thousands of people are being payed and being able to sustain their
living condition. Many business gain more resources to continue their business during
the pandemic time.

** reference: Vietnamese Banking review websites.

3. The expectancy theory is a good option for explaining the employee’s low motivation.
According to the theory, the effort that employees invest to their job will depend on their
expectation of the outcome. If she believe what she is doing can contribute to a major
success of the company, and the reward for her job is worthy, then she will be motivated.
Because in this case, the employee is working in a start-up company, there will be high
risk that the company direction is wrong and everything will fail at some point. She
compare herself with her friend who has the same abilities as her but working in other
global company, where there are more probability of success and worthy reward for their
job. Also, the main reward of the employee for finishing current project is the company
stock-option, which depend on the development of the company. All of that can explain
why the employee is losing motivation in doing her job.

To cope with this problem and increase the motivation of the employee, firstly, I will
apply the goal-setting theory with the expectancy theory. The goal-setting theory states
that setting ambitious and attainable goal will improve the employee performance. I will
have some meeting with the employee to talk about company vision, what are the
advantages and what are the challenges. From that, I specify for her the development
path of the company and highlight the impact of her current project into the success of
the company. Then, I and the employee can set up a plan with specific goals for her
project and also the post-plan for integrating the project’s result to the company current
system. What I need to highlight is the company vision and development plan is
promising and highly likely will success with her contribution in current project. The
specific goals (ambitious ones) can raise her interests in the project by directly challenge
her credentials. Besides that, I also add some recognition into the reward system of the
project, instead only the company stock. I also need to make sure her base salary is good
enough comparing to other employees with same level. From the goal-setting theory and
expectancy theory, these action can effectively raise the motivation of the employee.

4.
We compare most common type of compensation plans
Salary Salary plus Commission Hourly Profit sharing
commission
characteristics - Stable - Base salary + - Completely - Pay net - allow
payment (no bonus for sales based on job amount for an employee
fluctuation) - Guaranteed performance hour. decide % to
- provide higher income even - Create - Get more contribute to
pay than hourly failed (from motivation for payment for project.
pay base salay) employee working more - Payment from
- More flexible - Can have - offer time % benefit of
in schedule & incentives for significant pay - Double pay company
workplace high job for for working - Bring
performance performance, holidays flexibility for
can be potential - Provide employees
- Company can flexibility for work plans
make sure of employee - bring
benefit motivation for
employee have. high
performance
working.

Compensation plans for hair stylists:

Job Salary plus commission
Hair stylist 1 3000$ / month with 10% commission
Hair stylist 2 2000$ / month with 15% commission
Hair stylist 3 2500$ / month with 15% commission.

I think this is the most effective way to pay because the first hair stylist create the
famous effect for the shop so she deserve the highest salary with % commission. The
commision for second stylist is 15% (highest) to motivate her attracting customers to the
shop and the last hair stylist has the skills so high commission will motivate her to gain
more customer by improving her communicating skills.