Corporate culture
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i THE IMPACT OF CORPORATE CULTURAL IN VIETNAMESE COMPANIES: A CASE STUDY OF VIETINBANK, HOAN KIEM BRANCH BY LE VAN QUYNH E0600106 Graduation Project Submitted to the Department of Business Studies, HELP University College, in Partial Fulfillment of the Requirements for The Degree of Bachelor of Business (Accounting) Hons APRIL 2011
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Transcript of Corporate culture
i
THE IMPACT OF CORPORATE CULTURAL IN VIETNAMESE
COMPANIES: A CASE STUDY OF VIETINBANK, HOAN KIEM BRANCH
BY
LE VAN QUYNH
E0600106
Graduation Project Submitted to the Department of Business Studies,
HELP University College, in Partial Fulfillment of the Requirements for
The Degree of Bachelor of Business (Accounting) Hons
APRIL 2011
ii
DECLERATION
I hereby declare that the graduation project is based on my original work except for
quotations and citations which have been duly acknowledged. I also declare that it
has not been previously or concurrently submitted for any other course/degree at
HELP University College or other institutions. The word count is 15,077 words.
_____________________
LE VAN QUYNH
Date:
iii
ACKNOWLEDGEMENT
This graduation thesis is the result of thirteen weeks of research and writing
during the spring of 2011. It has been an interesting and learning experience. In
fulfilling this thesis, I would like to give my special thanks to many people for their
significant help, contribution, and recommendations during my writing process.
First and foremost, special mentions and grate thanks must go to Ms. Dao Thi
Thu Giang, my supervisor at Hanoi Foreign Trade University. With her master
knowledge and experience in writing thesis, she has wholeheartedly helped me in
writing this thesis. I could not have been able to complete this thesis without her
positive suggestions and guidance.
Secondly, I want to thank all the managers and staffs of VietinBank, Hoan
Kiem Branch, for their cooperation that helped and inspired me in writing.
Thirdly, I would also like to give my heartfelt thanks to the authors who
provided me with valuable books for my thesis.
My appreciation is to my family and my friends for their supports and
encouragements.
Gratefulness is to the readers also, whose feedback will help much in
improving the thesis.
Hanoi, April 2011
Le Van Quynh
iv
THE IMPACT OF CORPORATE CULTURAL IN VIETNAMESE
COMPANIES: A CASE STUDY OF VIETINBANK, HOAN KIEM BRANCH
BY
LE VAN QUYNH
APRIL 2011
Supervisor: Ms. Dao Thi Thu Giang
Abstract
The graduation project represents the results of research on impact of
corporate culture in Vietnamese companies. The objectives of the project were to
understand impacts of corporate culture in Vietnamese companies which shows the
importance of corporate culture. Benefits of adopting corporate culture will create a
unique style and attitude for each company, creating centripetal force for the entire
company, helps companies boost innovation and invention, and attract more
customers.
In this thesis, the researcher uses case study of VietinBank, Hoan Kiem
Branch because this Branch may be given more accurate information and able to take
the right actions.
v
TABLE OF CONTENT
Page
DECLERATION ........................................................................................................ ii
ACKNOWLEDGEMENT ........................................................................................ iii
Abstract ...................................................................................................................... iv
TABLE OF CONTENT ............................................................................................. v
LIST OF ABBREVIATION ...................................................................................... x
CHAPTER I - INTRODUCTION ............................................................................ 1
1.1. Study background ............................................................................................... 1
1.2. The objectives of study........................................................................................ 2
1.3. Research questions .............................................................................................. 2
1.4. Scope of research ................................................................................................. 3
1.5. Structure of the thesis ......................................................................................... 3
CHAPTER II - LITERATURE REVIEW ............................................................... 5
2.1. Overview .............................................................................................................. 5
2.2. Definition of culture and corporate culture ...................................................... 5
2.2.1. Definition of culture ........................................................................................... 5
2.2.2. Definition of corporate culture .......................................................................... 7
2.3. Corporate culture forming factors .................................................................... 9
2.3.1. Key business processes ...................................................................................... 9
2.3.2. Employees and other tangible assets ................................................................. 9
2.3.3. Formal arrangements ...................................................................................... 10
2.3.4. Dominant coalition .......................................................................................... 10
2.3.5. The social system ............................................................................................. 10
2.3.6. Technology ....................................................................................................... 10
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2.3.7. The external environment ................................................................................. 11
2.4. The impact of corporate culture on the development of a corporation ....... 11
2.4.1. Creating the unique manner and attitude for each corporate ......................... 11
2.4.2. Creating the centripetal force for the whole company..................................... 12
2.4.3. Fostering innovation and invention ................................................................. 13
2.4.4. Creating the competitive advantage of the corporation .................................. 13
2.4.5. Attracting customers ........................................................................................ 14
2.5. Level of corporate culture ................................................................................ 14
2.5.1. Observable artifacts ......................................................................................... 17
2.5.2. Espoused beliefs and values ............................................................................. 18
2.5.3. Basic underlying assumptions .......................................................................... 21
2.6. The role of leader – key factor creating the corporate culture of
organization .............................................................................................................. 23
CHAPTER III - RESEARCH METHOLOGY ..................................................... 25
3.1. Overview ............................................................................................................ 25
3.2. Research methodology ...................................................................................... 25
3.3. Data collection ................................................................................................... 26
3.4. Sampling ............................................................................................................ 27
CHAPTER IV - RESEARCH ANALYSIS AND RECOMMENDATION ......... 28
4.1. Overview ............................................................................................................ 28
4.2. An overview of Vietinbank, Hoan Kiem Branch ........................................... 28
4.2.1. Introduction of Vietinbank ............................................................................... 28
4.2.2. Overview of Vietinbank, Hoan Kiem Branch ................................................... 30
4.3. An overview of VietinBank’s corporate culture ............................................. 32
vii
4.4. Levels and manifestations of corporate culture in VietinBank, Hoan Kiem
Branch. ...................................................................................................................... 33
4.4.1. Artifact level and its manifestations ................................................................. 34
4.4.1.1. Office’s architecture and decoration ............................................................. 34
4.4.1.2. Brand name, logo, and slogan ....................................................................... 36
Source: VietinBank’s website, 2009 ........................................................................... 36
4.4.1.3. Language and style ........................................................................................ 38
4.4.1.4. Leadership Style ............................................................................................ 40
4.4.1.5. Behavior within the branch ........................................................................... 41
4.4.1.6. Behavior toward customers ........................................................................... 43
4.4.2. Espoused beliefs and values ............................................................................. 44
4.4.3. The basic underlying assumption ..................................................................... 48
4.5. Some suggestions to VietinBank in general .................................................... 49
4.5.1. Identifying the right way of development ......................................................... 50
4.5.2. Improving the influence of core values inside and outside the whole system .. 52
4.6. Some suggestions to VietinBank, Hoan Kiem Branch ................................... 53
4.6.1. Leadership style as the decisive element in building and developing corporate
culture ........................................................................................................................ 53
4.6.2. Building the specific value system.................................................................... 55
4.6.3. Changing the physical working environment ................................................... 57
4.6.4. Building up a close relationship between customers and branch .................... 58
4.6.4.1. “Customer is King” ....................................................................................... 58
4.6.4.2. PR and face-to-face communication with customers .................................... 61
4.6.5. Learning from other organizations .................................................................. 62
CHAPTER V – CONCLUSION ............................................................................. 64
viii
5.1. Conclusion .......................................................................................................... 64
5.2. Limitation of research....................................................................................... 65
REFERENCES ......................................................................................................... 66
ix
LIST OF FIGURES AND IMAGES
Figures Title Page
Chapter 2
Figure 2.1. Maslow’s hierarchy of needs 13
Figure 2.2. Levels of corporate culture 15
Figure 2.3. Corporate culture – iceberg’s principle 16
Chapter 4
Figure 4.1. Organizational structure of VietinBank, Hoan Kiem Branch 31
Figure 4.2. VietinBank’s logo 37
Image 4.1. “Customer is King” 59
____________________________________________________________________
x
LIST OF ABBREVIATION
Abbreviation Full name
VietinBank Vietnam Joint Stock Commercial Bank for
Industry and Trade
Vietin Bank, Hoan Kiem Branch Vietnam Joint Stock Commercial Bank for
Industry and Trade, Hoan Kiem Branch
I.L.O. International Labor Organization
I.T. Information Technology
––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––
1
CHAPTER I - INTRODUCTION
1.1. Study background
Recently, “corporate culture” has not been a new expression with
organizations and public. Many companies have not been afraid of investing in many
resources to form and develop their own culture. “Make a difference” is a philosophy
in business to improve the image of an organization under the eyes of society,
community and clients. One of the factors making the difference is the culture values
which are shaped, developed, recognized and popularized in many years. However,
not all organizations can be aware of the concept and connotation of the culture they
have.
Although corporate culture now is a popular term, there are many ways of
understanding leading to different definitions of corporate culture. In general,
corporate culture can be understood as all the culture values of an organization which
are formed during its development period. It has great influence on all activities of a
company as well as its workers. In fact, nowadays, corporate culture is one of the
important elements that many job hunters concern when they enquire about a
company. Besides, a good business environment can become an effective tool to
keep those current employees loyal to and dedicated to their organization.
Banking is an industry whose success is based on the belief of the clients.
Hence, forming a unique corporate culture which can make good impression on
customers is of greater importance for banks in general and for commercial banks in
particular. Vietnam Joins Stock Commercial Bank for Industry and Trade –
VietinBank is one of the top banks in Vietnam. Nowadays, corporate culture is one
of the greatest concern by both the leaders and officers of this bank. Therefore, I
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chose the topic “The impact of Corporate culture in Vietnamese companies: A Case
Study of VietinBank, Hoan Kiem Branch” as graduation thesis topic in the hope that
some findings and recommendations from the study could be a reference to help
further developing a successful corporate culture for the branch.
1.2. The objectives of study
The study focuses on the concepts of corporate culture, the way it manifests
in an organization. From the findings withdrawn from the case study of a selected
organization – VietinBank, Hoan Kiem Branch, it is expected good
recommendations will be made for creating corporate culture process of this branch.
Thus, the study aims to:
i. Get deeper understanding of the corporate culture;
ii. Understand why, what and how an organization forms and develops
its corporate culture – a case study of VietinBank, Hoan Kiem
Branch;
iii. Find out some solutions and recommendations to develop and
improve the corporate culture in this branch.
1.3. Research questions
The key question of the study is: “What is the corporate culture of
VietinBank, Hoan Kiem Branch?” To answer this research question, it is necessary
to answer the following sub questions:
i. What is corporate culture?
3
ii. What are the manifestations of corporate culture in VietinBank, Hoan
Kiem Branch?
iii. What should VietinBank, Hoan Kiem Branch do to improve its
corporate culture in the future?
1.4. Scope of research
This study focuses on the corporate culture of VietinBank, Hoan Kiem
Branch, particularly, the way corporate culture manifests in this branch.
The study analyzes the corporate culture developed by the organization and
gives some recommendations for the organization to improve its culture to make its
difference in the eyes of society, community and clients.
1.5. Structure of the thesis
The thesis includes three five chapters:
Chapter 1: Introduction.
It identifies the statement of aims and objectives with clear indication of the issues,
problems and hypothesis being considered.
Chapter 2: Literature review.
Definitions, forming factors and impacts of corporate culture can be found in this
chapter. A description of the layers of corporate culture is also provided to help the
readers get a sound understanding of corporate culture.
Chapter 3: Methodology.
4
This chapter presents the research methods as well as data collections. The
manifestations are seen from different perspectives, ranging from visible to invisible
manifestations.
Chapter 4: Analysis and recommendation.
Firstly, the corporate culture in VietinBank, Hoan Kiem Branch will be
analyzed. The manifestations are seen from different perspectives, ranging from
visible to invisible manifestations. Next, recommendations are made to further
develop corporate culture in VietinBank, Hoan Kiem Branch. In that, this chapter
gives some suggestions for VietinBank in general to develop its culture. Then, based
on that, recommendations to further develop corporate culture in VietinBank, Hoan
Kiem Branch will be given.
Chapter 5: Conclusion.
The conclusion should be a brief resume of the investigation design and results and
an overall, personal evaluation of the whole study.
5
CHAPTER II - LITERATURE REVIEW
2.1. Overview
This chapter provides background knowledge about the study. The chapter
will be divided into five main parts: the common concepts of the study including the
concepts of culture and corporate culture; the forming factors and the main impacts
of corporate culture; the corporate culture’s levels developed by Edgar H.Schein and
a brief view on the role of leader to the development of culture in an organization.
2.2. Definition of culture and corporate culture
2.2.1. Definition of culture
Culture is a familiar expression with human being. Culture connects closely
with our lives, or in other word, culture was born at the same time with human
society. However, it was not until the seventeenth century, especially from the
second half of the nineteenth century, did scientists in the world concentrate on
conducting in-depth researcher in this field. Culture itself is a complex and
diversified issue. Therefore, each researcher has his own way to define what culture
is.
The word “culture” has many different meanings. For some, it refers to an
appreciation of good literature, music, art, and food. For a biologist, it is likely to be
a colony of bacteria or other microorganisms growing in a nutrient medium in a
laboratory Petri dish. However, for anthropologists and other behavioral
scientists, culture is the full range of learned human behavior patterns. The term
was first used in this way by the pioneer English Anthropologist Edward B. Tylor in
6
his book, Primitive Culture, published in 1871. Tylor said that culture is "that
complex whole which includes knowledge, belief, art, law, morals, custom, and any
other capabilities and habits acquired by man as a member of society." This
definition refers quite briefly to every aspect of spiritual culture but does not exhaust
the many uses of material culture which play a vital role in human culture treasure.
There came many other definitions of culture after Tylor. Nowadays, the
definition stated by Mr. Frederico Mayor, General Manager of UNESCO is agreed
by many people. To him, culture is defined as “the set of distinctive spiritual,
material, intellectual and emotional features of society or a social group, and that it
encompasses, in addition to art and literature, lifestyles, ways of living together,
values systems, traditions and beliefs” (UNESCO, 2002). This definition was
worldwide accepted at Intergovernmental Conference of culture policies in 1970 in
Venice. In 1982, this approach was admitted at the second conference named
Mondiacult.
In terms of economy, scientists have different approach to culture. In the
book of Geert Hofstede named Communication between Culture (1984), culture was
understood as the collective programming of the mind which distinguishes the
members of one category of people from another. In another viewpoint, according to
Rao and Swaminathan (1995) culture refers to the values and beliefs shared by
members in a society, includes patterns of behaving, feeling and reacting, and the
premises underlying behaviors.
From these above definitions, culture is summed up, spread and shared from
one generation to another. Culture is transmitted not only from parents to children
but also between social organizations, culture group, and from governments to
7
schools, churches and so on. Common thoughts and behaviors are generated and
maintained by social pressure and social trends. In this thesis, the author will use the
definition taken from the book International Business, 6th
edition of Czinkota, 2001.
In this book, culture is defined as a system of typical behaviors of each individual in
every society. This system consists of every aspect from the way people think, talk,
and act to their habits, languages, material as well as spiritual products and their
common viewpoints.
Culture itself, which is both conservative and changeable, is a highly complex
portrait of people. Having a united definition of culture in mind will help us find an
easier way to approach the issue of corporate culture.
2.2.2. Definition of corporate culture
In the past, the answer for the question “Why do people work for a certain
company instead of one another?” might be the reasonable salary, the benefits or the
high position this organization offers. However, in today’s changing business
environment, intangibilities are increasingly more crucial to employees. One tangible
that seems to be most influential is corporate culture. So what is corporate culture? In
the early seventies of the twentieth century, following the spectacular success of
many Japanese corporations, American corporations started to pay attention to the
underlying reason behind it. The term of “corporate/organizational culture” was used
by organization research professors and managers to refer to one of the main reasons
behind Japanese corporations’ worldwide success.
Many in-depth researches on composing parts as well as huge impact of
corporate culture on the development of one enterprise were started to be carried out
8
at the beginning of the nineteenth decade. There are various definitions for the
concepts of “corporate culture”.
Louis Handy mentioned corporate culture in the book “Understanding
organizations” as set of understandings or meanings shared by a group of people that
are largely tacit among members and are clearly relevant and distinctive to the
particular group which are also passed on to new members.
According to Donnelly et al. (1992) organizational culture refers to the
impact on the environment resulting from group norms, values, philosophy, and
informal activities. What this definition implies is that corporate culture is similar to
culture in society as it has norms, values, beliefs and patterns of behavior. The
definition also highlights that values and norms create culture.
Another definition comes from the International Labor Organization-I.L.O in
2005 that “Corporate culture is the values, beliefs, norms, and traditions within an
organization that influence the behavior of its members”.
Nevertheless, the most general definition of corporate culture is given by a
professor of organization research, “Corporate culture is a pattern of shared basic
assumptions that the group learned as it solved its problems of external adaptation
and internal integration, that has worked well enough to be considered valid and,
therefore, to be taught to new members as the correct ways you perceive, think, and
feel in relation to those problems” (Edgar H.Schein, 2004).
This thesis will take this definition as the standard definition of the study.
9
2.3. Corporate culture forming factors
Although each enterprise’s special blend of elements develop a unique
culture, a comparison of many enterprises identifies seven culture shaping factors
(Plunkett and Attner, 1994). Each of these factors is in itself a complicated concept
and none is independent of the others. Their dynamic interaction forms the corporate
culture.
2.3.1. Key business processes
At the core of every corporation is the processes employees follow to gather
information, make decisions, communicate, produce a product or service and manage
work flow. The corporation is defined by how leaders communicate to employees,
how they share decision making and how they structure the work flow. The corporate
processes influence and are influenced by the other six factors that affect corporate
culture.
2.3.2. Employees and other tangible assets
A corporation’s resources such as employee population, plants and offices,
equipment, tools, land, inventory and money, are used by the corporation to carry out
its activities. These are the most visible and complex factors that influence culture
because their quality and quantity determine much of the corporation’s culture and
performance.
10
2.3.3. Formal arrangements
Another factor that affects corporate culture is the formal arrangements that
organize tasks and individuals. These arrangements include the structure of the
enterprise and its procedures, rules and specific mandated behaviors.
2.3.4. Dominant coalition
A corporation’s culture is significantly affected by the goals, objectives,
strategies, personal characteristics and interrelationships of its leaders, who form the
dominant coalition. The leadership style of the corporation leaders determines how
employees are treated and how they feel about themselves and their work.
2.3.5. The social system
The social system contributes norms and values to the corporate culture.
Components like employees relationships, the grapevine and the informal
organization are also parts of the social system. Because people are in the enterprise,
their relationships define the enterprise’s character.
2.3.6. Technology
The principle technological processes and equipment that employees use also
affect corporate culture. For example, the utilization of technology plays a role. The
question to ask regarding technology is: Is a machine or process intended to
productivity? The answer to this question sends a message about the value of
employees in the enterprise.
11
2.3.7. The external environment
An enterprise’s external environment includes forces outside its boundaries
that directly and indirectly interact with it (Bittel, 1989). These forces might be
suppliers, markets, competitors, regulators, organized labor and other elements
outside an enterprise. These forces affect the goals, resources and processes of an
enterprise. Obviously these elements shape the enterprise’s culture in many ways.
For instance, the government regulations can have a profound effect on corporate
culture as they normally protect the enterprise from competition.
2.4. The impact of corporate culture on the development of a corporation
2.4.1. Creating the unique manner and attitude for each corporate
Corporate culture is contributed by many components and elements such as
business philosophy, customs, rites, habits, trains, or even the legend of the founder,
etc. All of these elements together contribute the style of an enterprise and help to
distinguish this with others. This style or manner and attitude plays the role like “air
and water”, having a huge effect on the daily operation of enterprises.
It is not difficult to recognize the manner and attitude of a successful
corporation. This style makes the strong impression on the outsiders and is the pride
of the corporation’s members. Let’s take an example of the Walt Disney House.
When entering this corporation, people can feel some very common values through
the uniform, some conversational language used by Walt Disney’s employees (such
as “a nice Mickey” means “You are doing well”), common behaviors (always smile
and polite with customers) and common feelings (very proud of doing for Walt
Disney).
12
2.4.2. Creating the centripetal force for the whole company
A good corporate culture helps company attracting the talent and
strengthening employees’ loyalty.
A person works not for money but for other needs. The system of needs of
human, according to Maslow, 1943, is a triangle including five kinds of needs in
ascending order: basic needs, safety needs, psychological needs, self – actualization
and peak experiences. These needs are objective different tones of each individual.
Those needs create forces which impulse people to do but are not necessarily to be
the ideals of their life.
From the model of A. Maslow, it can be seen that it is wrong if a company
thinks that only high salary can help to attract and keep talent. An employee will be
loyal and want to have a strong attachment to a company only when he/she has
interest in working, feels the nicely air and has the chance to assert himself. In a
quality corporate culture, all members have a clear awareness of their roles within
overall, they work for common objectives.
13
Figure 2.1 - Maslow’s hierarchy of needs
Common example Organizational example
Source: Duong Thi Lieu, 2008
2.4.3. Fostering innovation and invention
Within a strong corporate culture, the high self-reliance will be emerged.
Employees are encouraged to be apart and raise their own ideas. This encouragement
helps employees proving their own creative abilities, as a base for R&D process of a
company. On the other hand, the success of workers will create a diving force which
helps to stick them with company for a longer time.
2.4.4. Creating the competitive advantage of the corporation
The competitiveness of an enterprise can be adjusted in four aspects:
flexibility (the ability of satisfying different needs of customer), the quality of
goods/services (technological characteristic, reliability, industrial design, etc.), the
Achievemen
t
Statu
s
Friendship
Stability
Food
Working
Challenges
Title
Colleges
Allowance
Base wage
14
responsible speed in the market (the period of time from ordering to supplying, speed
of developing a new product, etc.), cost (lower than competitors).
Enterprises who want to gain these advantages have to get three important
resources: human resources, capital and technology. The human resources involve
directly adjusting, choosing and developing competitive advantages process of
enterprise. Hence, this resource has the key meaning to the ability of gaining these
advantages. Meanwhile, corporate culture has the first direct effect on each member
of an enterprise, which plays an important role in proving human resource. So,
indirectly, corporate culture can affect the competitive advantages of an enterprise in
the market.
2.4.5. Attracting customers
Thanks to the manifestation of corporate culture in each level, corporate
culture helps to create the unique organizational character. This also helps to improve
the good image of company with customers, helps customers distinguish each
company and establishes the customers’ loyal with company’s goods and services.
2.5. Level of corporate culture
In general, corporate culture can be divided into two layers: surface layer and
core layer. Surface layer includes such expressions as dress code, work environment,
benefits, conversation, relationship, etc. The core layer consists of something cannot
see or hear like values, invisible rules, attitude, benefit, assumptions, etc. However,
according to Edgar H.Schein, a professor of organization research, in the book
“Organizational culture and leadership”, corporate culture has three layers or three
15
levels. They are observable artifacts, espoused values and basic underlying
assumptions.
Figure 2.2 - Levels of Corporate Culture
Source: Edgar H.Schein, 2004
If we regard corporate culture concept as a metaphor, three levels of
corporate culture can be described as an iceberg.
Artifacts
Visible organizational structures and processes (hard
to decipher)
Espoused Values
Strategies, goals, philosophies (espoused justifications)
Basic underlying assumptions
Unconscious, taken-for-granted beliefs, perceptions,
thoughts, and feeling (ultimate source of values and
action)
16
Figure 2.3-Corporate culture-iceberg’s principle
Source: Edgard H. Schein, 1999
Edgar H. Schein reveals that what we commonly call “corporate culture”
merely the tip of the iceberg, an iceberg that mangers ignore at the peril of their
company’s future. Underneath lays the much-harder-to-grasp “essence” of the
company, the “learned, shared, tacit assumptions on which people base their daily
behavior”. In fact, only the floating part of an iceberg which accounts for about 10 to
20 percent of total weight can be seen. The other hidden part which accounts for
roughly 80 to 90 percent does decide the direction of an iceberg. Let’s imagine that
the floating part is under the influence of the wind power while the hidden part is
under the influence of underground flow. Thus, iceberg’s direction will be under the
influence of underground flow regardless of wind power. Therefore, we can be
Artifacts
Espoused Values
Basic underlying
assumption
17
clearly conscious of the importance of basic underlying assumptions to an enterprise.
Details of three levels will be described as follows.
2.5.1. Observable artifacts
At the surface of corporate culture is the level of artifacts. This level includes
all the phenomena that one sees, hears and feels when one encounters a new group
with an unfamiliar culture. Artifacts include the visible product of an organization,
such as the architecture of its physical of its environment, language, technology and
products, its artistic creations, its styles (clothing, manners of address, emotional
displays), myths and stories told about the organization, its publish of list of core
values, its observable rituals and ceremonies and so on.
The most important point to be made about this level of the culture is that it is
both easy to observe and very difficult to decipher. The Egyptians and the Mayans
both built highly visible pyramids, but the meaning of pyramids in each culture was
very different tombs in one, temples as well as tombs in the other. In other words,
observers can describe what they see and feel, but cannot reconstruct from that alone
what those things mean in the given group, or whether they even reflect important
underlying assumptions. On the other hand, one school of thought argues that one’s
own response to physical artifacts such as buildings and office layouts can lead to the
identification of major images and root metaphors that reflect the deepest level of the
culture (Gagliardi, 1990). This kind of immediate insight would be especially
relevant if the organization is experiencing in the same larger culture as the
researcher. The problem is that symbols are ambiguous, and one can only test one’s
insight into what something may mean if one has also experienced the culture at the
deeper levels of values and assumptions.
18
Based on this foundation, the artifact can be divided into the following
categories:
Architecture, decoration, technology, product;
Symbol, logo, brand name, slogan;
Language and dress;
Leadership style;
Behavior within organization;
Behavior toward customers;
Ceremonies, stories of heroes, etc.
2.5.2. Espoused beliefs and values
The next level of corporate culture is about the values. Values define what an
enterprise needs to do, what is right or wrong. There are two kinds of values. The
first one is available values which exist objectively and unprompted takes shape in
corporation. The other one is values which managers expect the corporation to own
and develop step by step.
Espoused values are those principles or ideas the group articulates or
announces publicly as what stand for or what they are trying to achieve. Values here
include vision, mission, business philosophy and core values.
a. Vision
The first step when building objectives and priorities is to briefly identify what our
corporation will be in one point of future time, or in other words, to build vision.
19
Vision is the future status that an organization strives for. Vision shows us
common purpose and united activities. “Vision” term refers to a spiritual picture, a
prospective of the organization future. This term also refers to some time limited, or
time horizon, in the short or middle run which normally is ten, twenty or fifty years
for an influential vision.
Expected vision should be a picture of where an enterprise will be in one
certain future day. It is a picture of what it takes to reach perfection, for instance, or
for the best production method, or even of same quality production method when
company’s overall turnovers decrease to 10%.
It is necessary that corporation vision will be built first of all and informed to
every member. Enterprise’s departments will take step specify objectives, methods
and tools to achieve vision.
b. Mission
Mission explains why an enterprise exists including organization objectives,
general activities, to which it serves and by what method.
Function of mission is to find ways and stages to achieve stated vision. As
long as mission is identified, an enterprise can reach important goals as follows (1)
decide human resource power; (2) avoid conflict between pursuing goals; (3) set up
extensive border of responsibility and (4) support organization objectives.
It is essential that organization’s mission is designed for one certain stage of
its life.
c. Business philosophy
20
Business philosophy is philosophic thoughts reflecting the business reality by
experiencing, thinking and generalizing of business subjects and then used to instruct
business activities of an organization. Business philosophy of an organization
consists of three parts: mission and basic targets, operating method and specific
business activity.
The roles of business philosophy are:
The core of corporate culture, creates the firm development method for
corporate culture;
The oriental tool and base for strategic management;
The medium for training, developing human resource and creating the
specific working style for company.
d. Core values
Organization core values are purified essence and are commonly recognized.
It has a great impact on individual norm, behavior, and attitude among company. It is
also the foundation of vision. Core values are similar to rulers of norms of behaviors.
Thanks to it, we are conscious of what consistent with company’s mission and then
reach vision. Core values are those will never change no matter how tough a
company suffer, unless the enterprise goes bankruptcy or dissolution.
Upon visiting Vietnam on January 10th
, 2005, Brian Bacon who is the
president of Oxford management Institute and former Chief Executive Officer (CEO)
of Australian Coca-cola told an excellent example of core values for corporations.
When taking a VND ten thousand paper-money in hand and ask, everybody will
immediately tell us its face value of ten thousand Vietnam dongs. When we rub it
21
and ask, we will still receive the same answer. And even when we drop and beat it
and ask, the result is still ten thousand Vietnamese dongs (VNDs). It simply
represents unchangeable value of the paper-money, or core values of an enterprise, in
any circumstance.
Values can be core values when: (1) there is united belief in whole
organization; (2) it sets up norms and standard; (3) solid values to the very last thing;
(4) there are myths, rites or stories supporting existence.
2.5.3. Basic underlying assumptions
The deepest level of culture consists of shared assumptions that provide a
foundation for how people think about what happens in organizations. These
assumptions represent beliefs about reality and human natures that are taken for
granted and embedded in the way we understand and interpret daily life. Schein
contends that underlying assumptions grow out if values, until they become taken for
granted and drop out of awareness. Assumptions are the result of continually
validated and reinforce values, they guide group’s behavior, perceptions, thoughts,
and feeling about a situation. They can deal with basic aspects of life through the
correct way for the individual and group to relate at each other; relative importance
of work, family, and self-development; the proper role of men and women; and the
nature of the family. Therefore, shared assumptions are the most difficulty to study
and to change because people may be even unaware of or unable to articulate the
assumptions forming their deepest level of culture.
The basic underlying assumptions of an organization are thoughts, beliefs,
awareness and emotion toward the internal and external environment. These are
22
assumptions of human, quality, performing ability, customers, competitor and the
role of invention. The manifestation of underlying assumptions is expressed through
the conception of relationship between human and environment, conception of trust
and reality, conception of human nature, of human activity and the nature of human
relationship and the conception of time.
1. Conception of relationship between human and environment deals with the
questions: What is our relationship with the environment? Do members
believe they have the capacity to master the environment, are they supposed
to live in harmony with it, or do they think they are controlled by it?
2. Conception of trust and reality are about the way to reveal the truth. What is
real and how to determine the reality? Is truth revealed by external authority
figures, or is the accuracy of information determined by a process of personal
investigation and testing?
3. Conception of human nature give answers to such questions: defines what it
means to be human and what human attributes are considered intrinsic or
ultimate. Is human nature good, evil, or neutral?
4. Conception of human activity can be divided into three approaches: (1) a
“doing” orientation where people are basically active and evaluated according
to what they produce, (2) a being orientation where people are passive and
unable to alter existing circumstances, and (3) a “becoming” orientation
where people are continually developing and becoming an integrated whole.
5. Conception of human relationship: defines what is ultimately the right way
for people to relate to each other, to distribute power and love? Is life
cooperative or competitive; individualistic, group-collaborative, or
communal? What is the appropriate psychological contract between
23
employers and employees? Is authority ultimately based on traditional lineal
authority, moral consensus, law, or charisma? What are the basic assumptions
about how conflict should be resolved and how decisions should be made?
6. Conception of time: The shared assumptions that define the basic concept of
time in the group, how time is defined and measured, how many kinds of time
there are, and the importance of time in the culture.
2.6. The role of leader – key factor creating the corporate culture of
organization
The leader is not the one who creates the values of corporate culture in an
organization but more important, he/she is the one who transmit, maintain and
change them into a “guiding system” to the whole company. It is important for
enterprises which want to succeed to have the sound system of principles. These
principles are the foundation for enterprises to set their line and actions. It is more
important that this system needs to create the loyalty, the attachment within the
organization and is absolutely followed. This requires the leader who creates the
values’ system to keep in close touch with employees and assist them and at the same
time, heighten these values.
Beside the role of shaping and managing corporate culture’s values, the
leader has to change them according to the requirement of changing strategy in the
case culture does not support or even be against with a new strategy.
The new strategy is often dominated by market and competitors – these
external elements which organization can not control. Meanwhile, culture is created
by the whole organization so changing culture to fit the strategy is more effective
24
than changing strategy to fit culture. However, it takes time to erase all the existing
culture because it has had a long time to shape and develop. In particularly, this
change is really difficult with the founder. Although, when corporate culture is
suitable with the new strategy, it will bring much more achievements for
organization.
In general, if national culture tends to naturally affect the corporate culture,
the leader plays a very active role in creating process of it. This means, the leader
with his/her goal to help organization gain a good performance, by his/her managing
behavior, this contributes to set a “unique style” for an organization, that is corporate
culture.
25
CHAPTER III - RESEARCH METHOLOGY
3.1. Overview
The purpose of this chapter is to measure the impact of corporate culture.
Research approach is defined by the use of data collection, and selecting samples.
3.2. Research methodology
The methodology uses in this research that is qualitative research.
Qualitative research is a type of scientific research. In general terms, scientific
research consists of an investigation that:
• seeks answers to a question
• systematically uses a predefined set of procedures to answer the question
• collects evidence
• produces findings that were not determined in advance
• produces findings that are applicable beyond the immediate boundaries of the study
During the 1970s and 1980s, qualitative research began to be used in other
disciplines, and became a significant type of research in the field of education
studies, social work studies, and many other fields. The goal of qualitative research is
to gather a deep understanding of human behavior and the reasons that govern
behavior. Qualitative methods also are investigating why and how of decision
making. So the smaller samples are more focused than large samples.
26
The advantage of qualitative research is its ability to provide complex textual
descriptions of how people experience a given research issue. It provides information
about the “human” side of an issue – that is, the often contradictory behaviors,
beliefs, opinions, emotions, and relationships of individuals. When used along with
quantitative methods, qualitative research can help us to interpret and better
understand the complex reality of a given situation and the implications of
quantitative data. Qualitative methods are also effective in identifying intangible
factors, such as social norms, socioeconomic status, gender roles, ethnicity, and
religion, whose role in the research issue may not be readily apparent. Qualitative
research can help us to interpret and better understand the complex reality of a given
situation.
3.3. Data collection
This thesis is written based on both primary and secondary data. Most of the
materials are extracted from the relevant books, articles, and documents in both
English and Vietnamese. The data, concepts, theories are collected to analyze the
situation of VietinBank, Hoan Kiem Branch to answer these three sub questions.
The approach of qualitative research in this project is documentation, direct
observation and interview. Documentation is used as secondary source of
information in forms of books, articles and websites to collect information of theories
relevant for this thesis, background information about the organization and the
standards of its corporate culture. Direct observation is appropriate for collecting
data on naturally occurring behaviors in their usual contexts. For this study, direct
observation is the main primary method to help the writer collect the information of
corporate culture of the chosen objective. Beside, interview is optimal for collecting
27
data on individuals’ personal histories, perspectives, and experiences, particularly
when sensitive topics are being explored. In this study, the interview provides the
added information for the research of the real situation and helps the writer to make
suitable recommendations.
3.4. Sampling
The sample population is the ViettinBank and its staffs. Currently, VietinBank
has 138 branches, 188 transaction offices, 258 points of sales and 191 savings
offices, 742 Automatic Telling Machines (ATMs), throughout 56 provinces and
cities, centered more in big cities such as Hanoi (12 branches and 02 transaction
centers), Ho Chi Minh City (17 branches and 01 transaction center), industrial zones,
trading and economic parks, densely-populated areas. However, due to the far
distance, and the time limitation, the author was able to conduct the study at one its
Branch: Hoan Kiem Branch. The author will make an observation of the entire
building of the company and interview 10 staff members (five veteran employees,
four young employees and one deputy manager of a transaction office) who are
randomly selected from different departments in the company to get information for
the thesis.
28
CHAPTER IV - RESEARCH ANALYSIS AND RECOMMENDATION
4.1. Overview
This chapter includes four main parts: Part one is an overview of Vietinbank,
Hoan Kiem Branch. Part two is a brief view on of the corporate culture of
VietinBank in general. Part three is that concentrates on analyzing the manifestations
of corporate culture in VietinBank, Hoan Kiem Branch using the frame developed by
Edgar H.Schein. Part four provides some recommendations to further develop
corporate culture in Vietinbank, Hoan Kiem Branch. The main objective of this
chapter provides suggestions for further development of corporate culture in
VietinBank, Hoan Kiem Branch. At first, this chapter will give some suggestions to
VietinBank in general and then to VietinBank, Hoan Kiem Branch in particular.
Although there are many factors determining the development process of corporate
culture in an organization, with VietinBank, Hoan Kiem Branch, the author mainly
focuses on the leadership style, the values system and the relation with customers.
4.2. An overview of Vietinbank, Hoan Kiem Branch
4.2.1. Introduction of Vietinbank
Vietnam Joint Stock Commercial Bank for Industry and Trade (VietinBank)
was established in 1988 after being separated from the State Bank of Vietnam. It is
one of the four largest State-owned commercial banks of Vietnam, VietinBank’s
total assets account for over 20 percent of the market share of the whole Vietnamese
banking system. The year 2009 marked a very important point in the development
29
process of VietinBank. In June, 2009, VietinBank officially became a joint-venture
commercial bank. This brought about both new challenges and success for the Bank.
VietinBank has developed an operation network comprising of one head
office; three transaction centers; three subsidiaries, three administrative units, two
representative offices, 138 branches, 188 transaction offices, 258 points of sales and
191 savings offices, 742 Automatic Telling Machines (ATMs), throughout 56
provinces and cities, centered more in big cities such as Hanoi (12 branches and 02
transaction centers), Ho Chi Minh City (17 branches and 01 transaction center),
industrial zones, trading and economic parks, densely-populated areas. Vietinbank’s
traditional services as well as other modern and valued added services have reached
nation-wide users. This has enabled Vietinbank to diversify its products suitable to
each segment of customers. Besides, it is diversified with three independent
accounting subsidiaries: VietinBank Leasing Company, VietinBank Securities
Company, Ltd., VietinBank Asset Management Company and two non-profit making
units: VietinBank Information Technology Center and VietinBank Training Center.
VietinBank is also the founder of some Financial Credit Institutions such as
Saigon Bank for Commerce and Industry; Indovina Bank (the first joint-venture bank
in Vietnam); Vietnam International Leasing Company – VILC (the first financial
leasing company in Vietnam) and Vietinbank Insurance Company Ltd. This bank has
also being the official members of Vietnam’s Banker Association; Asian Banker’s
Association; Society for Worldwide Interbank Financial Telecommunications
(SWIFT) and the Visa International Services Association.
The Bank has signed eight framework-credit Agreements with foreign
countries including Belgium, Germany, South Korea, Switzerland and established
30
correspondent relationship with 600 large banks of 50 countries and territories all
over the world. And one more thing, this bank is the first bank in Vietnam to apply
modern technology and e-commerce in its banking operations.
Products and services of VietinBank are very diversified, including card
services (VietinBank E-partner, Cremium Visa, etc), oversees remittance, securities,
import-export payment, guarantee, derivative products, opening account, loan,
leasing, money transfer, insurance and saving.
4.2.2. Overview of Vietinbank, Hoan Kiem Branch
VietinBank, Hoan Kiem Branch was founded in 1979 as a branch of Ha Noi
State Bank and operated with two functions: state management and currency trading.
On 26th
March, 1998, Decree No 53/HDDBT was promulgated which created a
premise for innovating process of Banking Industry. Based on it, the operation of this
branch was moved from subsidization mechanism to market mechanism and this
Bank operates with only one function: currency trading.
Nowadays, VietinBank, Hoan Kiem Branch is one of the first level branches
of VietinBank. This Bank is located in No37, Hàng Bồ Street, Hoan Kiem Distric,
Ha Noi. Currently, this Branch has seven departments, three transaction offices and
four savings deposit sections. The number of employees now is 110 people.
31
Figure 4.1 - Organizational structure of VietinBank, Hoan Kiem Branch
Source: VietinBank, Hoan Kiem Branch, 2010
VietinBank, Hoan Kiem Branch caries out theses following missions:
Mobilizing capital: exploiting and receiving sight deposits, term deposits,
payable deposit of all organizations and individuals of all economic sectors
inside and outside country in VND and foreign currencies; issuing
Director
Savings
deposit
sections
Internal
inspection
department
Specialized
departments
Deputy Director
Transaction
offices Chief of
accounting
departmen
t
Accounting
department
Administration
department
Risk
managing
department
Money-
Budget
department
Computing
department
Organizational
customer
department
Individual
customer
department
Administration
sector
32
certificate of deposit, bond, bill of exchange and performing other forms of
mobilizing as the regulation of VietinBank;
Lending in short term, middle term and long term in VND and foreign
currencies;
Guiding customer in lending investment projects;
Trading foreign exchange operations when is allowed by Chairman of
VietinBank;
Trading services: collecting and spending cash, budgeting, payment cards,
etc.
Business accounting and distributing income as the regulation of VietinBank;
Examining, auditing internally;
Building business plan suitable with local social-economic developing plan.
4.3. An overview of VietinBank’s corporate culture
Nowadays, developing business culture is an urgent requirement of any bank
in integration process. Culture of a corporation is not to be the surface manifestation
like dressing, office’s decoration, language but the moral standard, the leadership
style, the behavior within company, etc. These elements create the prestige and brand
name for commercial banks in general and for VietinBank in particular.
Regarding corporate culture, people often think to “3P” philosophy: people-
product-profit. According to the importance of three elements, each enterprise might
have different ways of behavior in business. With VietinBank, besides concentrating
on profit, the quality and the diversity of services, human resource is the first
concern. VietinBank always tries to care about the material and spiritual life of
employees; respect and encourage the initiation and creation of staffs. Hence,
33
increasing profit likes an inevitable result, more and more customer has strong
attachment to VietinBank, at once, and the numbers of new customers are also bigger
and bigger. Therefore, talking about corporate culture of VietinBank is talking about
morality and behavior of VietinBank. During the process of international business
integration, corporate culture will be the key factor which helps VietinBank
overcome the challenges and is the key for sustainable development of the Bank.
In recent period of time, corporate culture is cared by both the leaders and
staff members of VietinBank. They want to build a value system of the truth-the
good-the beauty and for the sustainable development target of the whole system.
Hence, from moving to a new kind of form, VietinBank has published a handbook of
corporate culture which carries out the values VietinBank wants itself and its staffs to
achieve. This handbook includes mission, vision, and philosophy in business, moral
rules, rules of behavior, etc. of VietinBank. This book likes a guideline for all
members of VietinBank in process of building and developing corporate culture of
this Bank.
4.4. Levels and manifestations of corporate culture in VietinBank, Hoan Kiem
Branch.
VietinBank, Hoan kiem Branch is part of VietinBank. Hence, corporate
culture of this Branch will be formed basing on the cultural standard of VietinBank.
However, different branches will develop different corporate cultures. The
differences present in the manifestations of corporate culture in each branch. Those
differences themselves are one of the factors creating the level of success of each
branch in the whole system.
34
In this part, the researcher will describe the corporate culture of VietinBank,
Hoan Kiem Branch. Much of this description rests on own direct observation as a
trainee in this Branch in June, 2009 and January and February 2010. Also, more
information is proved by some employees who have worked for this branch for a
long time and from the interviews 10 staff members (five veteran staffs, four young
staffs and one deputy manager of a transaction office). Besides, information has been
collected from the handbook of corporate culture of VietinBank (March, 2009).
To describe the bank’s culture, the framework developed by Edgar Schein
(1994) will be used. First, the writer will point out the visible culture-“artifacts”.
Then “espoused values” will be introduced and finally, the writer will try to
determine the “basic underlying assumptions” that explain and shape the artifacts and
the espoused belief of the branch.
4.4.1. Artifact level and its manifestations
According to Edgar Schein, artifacts include all the phenomena that one sees,
hears and feels when one encounters a new group with an unfamiliar culture. Hence,
the artifacts of VietinBank, Hoan Kiem Branch will be classified in the following
categories:
4.4.1.1. Office’s architecture and decoration
The Branch office is separated into three parts but each part is bonded by the
lobbies. The middle part includes client accounts section on the first floor and all of
the directors’ rooms on the second floor. This part can be seen as the centre of
branch. Client accounts section is the place gathering almost transactions with
customers of the branch so the middle location is the most suitable one. One of the
35
saving deposits sections and transaction offices are in the same location with the
head office of branch. The two sections are in the front, where customers can easily
pass by and carry out transactions. An ATM boot with two machines is placed in the
front, beside transaction office. This serves for the fast and comfortable needs of
customers. The branch’s budget is put in the back in order to ensure the safety. These
departments dealing mostly with the secure information of branch are also located at
the back or on the third floor.
The decoration of transaction office, client account section or other
departments strictly follows the standards of VietinBank. In detail, in places which
carry out the direct transactions with customers every day, the branch arranges space
which is suitable with the frequent number of customers. Chairs are put for
customers when they wait in busy time. While waiting, they can look around and see
the slogan; the philosophy in business of VietinBank is hung on the wall. Besides,
the information about products and services of VietinBank or other marketing
programs of VietinBank or branch is put orderly on the wall or on the small
bookshelf in attempt to attract customers and bring them the good impression of
branch. However, one more thing is not follow the standard of VietinBank is the
branch has not owned the traditional room. All kinds of certificates are hanged on the
wall of meeting room or in the director’s room.
The decoration of each department in the back office often depends on the
space and the role of each one. Though, usually each officer is provided a suitable
space with a desk and all the stuffs serving for his/her work. Each officer doesn’t
have his/her owned cabin. This brings the opened and comfortable working
environment for people. One more thing, the job in a bank relies much on document,
36
so a throughout space makes faster for passing document. There also have air
conditioners in every room. Door and window are made by glass. The hot summer
will be cooler with glass door and air conditioner; the winter will be warmer because
of hold-back wind effect of glass. Yet, members of each room put a small altar in
their rooms. In the ritual ceremonies, together, they can show their sincerity.
Especially on Tet holiday, members of each room always prepare for the altar
following the Vietnamese tradition. Through this, they all have a wish that in a new
year, their department will work more effective and also their branch will get more
and more benefit and success.
4.4.1.2. Brand name, logo, and slogan
Logo and brand name are among the visible factors showing the culture not
only of Hoan Kiem branch but also of all the branches in the VietinBank’s branch
system. It is the culture of VietinBank in general. However, the writer still wants to
mention here because they are one of the factors attracting customers to the branch.
Here, the logo of VietinBank will be described both for itself and the brand name.
VietinBank’s logo consists of two parts: wordmark and symbol/graphic mark.
Figure 4.2 – VietinBank’s Logo
Source: VietinBank’s website, 2009
37
The word part is also the brand name of the Bank: VietinBank and the
symbol part is a hollow circle.
Firstly, the word part is the abridge name from an English name of the Bank:
Vietnam Bank for Industry and Trade: Vie (tnam)-Bank In (dustry and)-T (rade).
This seems to be simple but in Vietnamese, Vietin contains a beautiful meaning. It
implicates the “trust” or the “prestige” of both the country and Vietnamese people.
This might be a purposed suggestion or just a coincidence. Whatever it is, it still
takes a deep effect to the customers’ curiousness and helps to attract them. The
wonderful thing is that the meaning of symbolic term enables both in English and
Vietnamese. This is really a subtle arrangement never ever seen in any organization.
Hence, it is brilliant when putting the whole name “VietinBank” into the logo. It is
not only simple and meaningful but also easy to recognize. The mix of colors of red
and blue has its own purpose. Red is color of heart and blue is the color of brain. The
first part “Vietin” is in red showing the love with our country simultaneous
emphasizing the fire of enthusiasm of VietinBankers. The part “Bank” is stuck on
blue-traditional color of VietinBank. It shows the belief, the hope of ones who are
dedicated to the development of the bank. In the fierce competition situation now, if
there is no one with big hands, big brain, who do not dare to think do; it is really
difficult to achieve a brilliant career.
Beside the word’s part, the symbol part (emblem) contains the meaningful
significance. It has the form of an old penny. Using penny as a symbol of a bank is
not a new way; however, the value does not end with this. The penny has two parts,
the blue part is above and red part is below. Blue part presents the sky, red part
symbolizes the ground. Sky and ground dissolve in one. According to the Eastern
38
conception, there is nothing having the perfect harmony like sky and ground.
Furthermore, the logo presents an image of a bright early morning with rising sunrise
and bigger moving orbit which emphasizes the harmonic move and follow between
Sky and Ground in the universe. Together with the old penny symbol, the
metaphorical means illustrate the spirit of VietinBank with the trusted image of a
sunrise and the effect in the move of the Earth.
The brand name VietinBank has its own characters. These are effect, trust
and modern. Effect here implies the effect in the operations and services of the Bank
with the aim to provide the optimal benefits for VietinBank’s customers. Trust is the
consistence, stability of finance and the high level of trust. The last character
“modern” refers to the thought of always moving forward of the Bank. In order to
emphasize more on the effect, VietinBank creates the slogan: “Nang gia tri cuoc
song”. This slogan shows the conscience of VietinBank in supporting and ensuring
the success of customers as well as the effort which helps to build a beautiful and
meaningful life.
4.4.1.3. Language and style
Dress code
In this branch, formal clothes for male and female staff are divided into two
seasons: summer and winter. These formal clothes are both traditional and
fashionable in order to create a professional style for staffs and make good
impression on customers when coming to transact at branch.
In summer, dress for female staff is white shirt and black skirt. The length of
skirt is cross or over knee. Formal clothes for male staff are also white shirt and dark
39
trousers. In winter, male staff will wear traditional suit with dark color, together with
white shirt and cravats. Their shoes are also in dark color. Dress for female staff in
winter will be a dark-color suit: vest and skirt. They can wear bright color clothes
inside. Especially, on these very cold days, all staff can wear their own warm dress
outside but still look tidy and formal. Furthermore, on such special days such as
anniversaries, female staff will wear Ao dai with blue color-traditional color of
VietinBank.
Each employee is given a bank badge with the logo of VietinBank to carry on
the front of dress. Nameplate of each staff is also required during working hours or
during the time of transaction. These requirements are to help customers to know
who VietinBank’s employees are when they come to the branch and know the name
of the one whom they transact with. The badge is also effective in expressing the
image of VietinBank in comparison with other banks and somehow, the nameplate
will help newcomers to remember the name of all colleges.
Language
According to principles of the working environment, no “slang” can be used
in conversation in this branch. When at work, they are serious and use simple, easy
to understand words. They try to avoid words which are easy to misunderstand
because they know that one mistake can lead to huge loss. Beside work, they talk
about other matters. It might be sharing work and life experience, or they discuss of
some current news. Sometimes, they have divergence on one matter but they have
never used rude words. In any cases, they always try to show the respect for others. If
they do not share common ideas at end, they will end the discussion and change
topics. One more thing worth mentioning here is the young is often polite with the
40
old. If a young person says something not quite polite, everyone will warn her
delicately.
The language uses in different circumstances and with different people is
really cared. For example, in the lunch time or when seeing in the yard, people often
smile and talk joyfully to clear away the stress of work. Even though, some leaders
and managers are very funny people with joking stories. The language uses between
colleges often is words showing the comfort but is very polite words if the listeners
are employers or the older people.
4.4.1.4. Leadership Style
According to Edgar Schein, the leader is the one who has the most influential
impact on the corporate culture of an organization. A strong corporate culture can
make the best success. It is true for all organizations in general and for VietinBank,
Hoan Kiem branch in particular.
Since 1988, VietinBank, Hoan Kiem Branch has led by four directors.
Depending on the leader’s personality and character, the leadership style varies.
According to the writer’s observation together with ideas of some staffs who has
more than 20 years experiences in the branch, there is one common feature among
most bank’s leaders: powerful. This is affected by the owned form of VietinBank and
the development of society. VietinBank was founded as a State Bank which was
owned by the government. So, monarchism has embedded on the mind of leaders.
This idea causes many bad effects to the branch. The branch had a very difficult
period. Over years, the branch operated without profit, the percent of bad loan up to
41
70-80%, the lives of staffs were really difficult. Staffs almost had no belief on the
leaders.
However, day by day, step by step, this idea has been changing, especially in
the new development of society. The later leaders are more opened minded and have
the better way of leading. During her internship in this branch, the writer heard a lot
about Mr. Long, the current leader at that time who retired in March 2010. Mrs. Van,
a staff of Accounting Department said that Mr. Long is seen to be the best leader
ever. When he was leader, he brought the new wind for members of the branch. He
was the one who helped branch overcome the hard time. He changed the old way of
leadership, brought about more democracy for the staffs. Thanks to it, staffs had the
confidence and tried their best to devote to the branch.
From March 2010, VietinBank, Hoan Kiem branch has a new leader. Every
member of the branch puts great belief in this leader. They hope the new one can do
even better than the former one.
4.4.1.5. Behavior within the branch
The behavior within the branch is manifested through communication
between managers - staffs and among colleges.
Firstly, the communication of managers to staffs will be mentioned.
Managers always show their fair treatment with all staffs. Whoever achieves good
results will be rewarded and who has mistake will be warned or punished depending
on the severity of the mistakes. During the observation, the writer had a chance to
join in a monthly meeting of the accounting department. In this meeting, the manager
had a straight forward discussion on the mistakes of staffs in this month. Some
42
accidental mistakes which did not cause any harm were passed but the serious
mistakes were analyzed and lessons are drawn. On the other hand, she also pointed
the good things. By this way, no one could claim or complain about anything. Some
managers of the branch have shown their willingness to listen to staffs’ ideas and try
to talk with about the difficulties, the obstacles of job. However, only a few
managers can do this. During the observation, some employees complained about
their managers who did not want to listen to their ideas, managers just tried to
impose their ideas on employees. Though, one good thing is that, managers of the
branch care a lot about life of their staffs. When a staff encounters a family problem,
managers will try to arrange time and work to visit the staff’s family. Managers will
create the favorable conditions for this one to overcome their personal problems.
In return, almost all staffs of this branch have positive attitude toward
managers. They always show their respect for their superiors. The respect is shown
by the way of greeting and the language is used. Staffs use the formal words along
with a smile when greeting managers. When having some problem needed to
exchange with managers, every one try to talk in a brief way. Lengthy conversations
are often avoided. Besides, employees of branch always try to complete the entire
divided task. They even spend the extra time to finish task.
The third one is the communication among colleges. In general, the
relationship among staffs is close. There are many close friends in the branch. By
being close together, staffs will understand each other more. From that, working
together becomes easy with them and helps them to get better effect. At work,
everyone shows the respect for listener while discussing. If they need to exchange
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views, they often meet and talk the face to face to each other. Internal telephone
often is used to handle some kinds of quick tasks or problems.
4.4.1.6. Behavior toward customers
Communication of branch’s staffs to customers here mainly refers to
communication between tellers and customers. The reason is tellers are the ones who
play the main role in transacting with customers. The behavior of tellers will be the
most important element in creating a good or bad impression on customers.
Culture during transaction in VietinBank, Hoan Kiem branch is to bring
convenience to customers in order to “keep” them loyal, to make them feel
comfortable while using the bank’s products and services. This is the purpose that all
tellers and others always keep in mind. Firstly, culture is shown as transaction
procedures. Customers will save their time when they do banking transaction. Too
much waiting time due to complicated procedures can really annoys customers. They
can get tired, unpleasant and do not want to transact at the branch anymore.
Gradually, this can decrease the number of customers to the branch. So,
modernization of VietinBank’s banking system - from doors transaction to one-door
transaction- is one of the keys to get the customers’ satisfaction. Modernization helps
shorten the waiting time when customers come to transact at the branch. Customers
can choose who to transact with instead of being appointed as in the past. Besides,
tellers of the branch always introduce all the necessary steps which customers need
to follow. If any step takes a longer time to do, it will be stated to the customer at
first. Secondly, culture is reflected in the style of communication of the tellers.
During the observation period of the writer at VietinBank, Hoan Kiem branch, the
author was much impressed by the way the tellers serve customers. Tellers always
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share the tips of behaving with customer together. The core thing is teller has to
serve customers wholeheartedly by speak lightly, always smiling and fast serving.
They never show unpleasing attitude when customers ask too many questions. They
are always patient, answer clearly all the questions of “the King”. Furthermore,
tellers are really good at how and what to consult customers. Tellers have good
understanding of what products and service the branch offers and how to fully satisfy
customers’ demand. By doing so, the branch can attract new customers and enhance
the existing customers’’ loyalty. The way of communication of the tellers is one of
the important factors helping in increase the number of customers. In fact, the last
three years saw a remarkable increase in the number of customers to the branch.
Moreover, by holding the customer meeting once a year, a survey is always
conducted to get the ideas of customers about the quality of serving at the branch. Up
to now, there has never been any complains.
Beside tellers, other staffs of the branch always show their respects with
customers’. The security man always gently in guiding customers parking. If
customers have any questions of the places of departments, he often shows them with
a smile. Other employees also keep in their mind that customers are the King. So like
tellers, they also try to serve customers wholeheartedly any time a customer needs
help.
4.4.2. Espoused beliefs and values
VietinBank mission
“To be the top financial-banking group of Vietnam, operate versatility,
provide products and services as international standard, in order to improve the
quality of live”
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VietinBank vision
“VietinBank is a top modern, effective financial-banking Group inside and
outside the country”
Being part of VietinBank, all the operations of the branch are for the vision,
mission of VietinBank. Business philosophy of the branch also follows that of
VietinBank.
The mission and vision of VietinBank is to be the top financial banking group
in Vietnam. To achieve it, every part of VietinBank has to try its best including
VietinBank, Hoan Kiem Branch. The effort of the branch is clearly seen in the way
to improve its competitiveness in comparison with other branches of other banks in
the same area-Hoan Kiem District. To do that, the branch is trying to improve the
quality of services. Service’s quality is of greatest importance to help a bank attract
more customers. Relying on marketing strategies as well as enhancing the quality of
staffs, the image of the branch under the eyes of customers is increasingly improved.
The number of customers visiting the branch is increasing significantly. As a result,
the branch has gained the trust from many local organizations.
VietinBank business philosophy
1. To follow through safe, effective, sustainable, international standard;
2. To unite, cooperate, share and have the social responsibility;
3. The prosperity of customers is the success of VietinBank.
The philosophy of VietinBank is also the philosophy in business of Hoan
Kiem Branch.
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To follow through safe, effective, sustainable, international standard: the
branch always tries to maintain safety in all activities. Safety here is for both
customers and the branch. The effectiveness is represented in the satisfaction and
success of customers every time they come to transact at the branch. The
sustainability is shown in the way the branch minimizes its bad debts and increase
the benefits. This will help to make healthy the financial situation, bring about the
sustainability for the branch. International standard is the one which the whole
system of VietinBank has been pursuing. Applying and updating frequently the new
banking technology is one of the ways to reach the international standard.
To unite, cooperate, share and have the social responsibility: the branch has
been trying to cooperate more and more with the local organizations, sharing with
customers the financial difficulty as much as it can. Simultaneously, the branch is
actively joining every social activities held by local administration.
That the prosperity of customers is the success of VietinBank is always in the
mind of all staffs of Hoan Kiem branch. They understand that, only when customers
are fully satisfied, success will then come to the bank.
VietinBank core values
1. All activities are for the customers;
2. Active, creative, professional, wholehearted, transparent and modern;
3. The employees have the right to work and devote themselves to the bank-
the right to be paid by the results and the individual contribution’s
efficiency-the right to be complimented the best employee.
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According to the observation of the writer, beside the core values of
VietinBank in general, there are some natural values which are created by people of
VietinBank, Hoan Kiem Branch in a long time. They are:
Enthusiasm: once undertaking a task, any employees of the branch will try
his/her best to carry it out with the sense of enthusiasm, wholeheartedness to
bring the satisfaction to customers.
Customer orientation: all tasks are supposed to satisfy all customers of the
branch whether they are small customers or big customers.
Morality: it is the morality among human, between people with their job and
toward customers. Every member of the branch always considers morality the
top criteria that a banker needs to have and to live with it.
Time is money: the task of a bank is done by day so everyone tries to finish
his or her task on time. Time is also one of the concerns which staffs of
branch are really pay attention on while transacting with customers.
Besides, there are some values that leaders of the branch expected from their staffs:
Dynamic: in the new situation, this is the value which many leaders want
from their employees. This is not except with the leaders of the branch. And
leaders must be the pioneer, they themselves must be self-starters.
Professional: this is value that every member of the branch is pursuing. They
have noticed that this is an important thing which help the branch develop.
Harmony: the leaders of the branch wants all the members always balance
between work and entertainment, between individual and group benefits.
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4.4.3. The basic underlying assumption
VietinBank, Hoan Kiem Branch’s current basic underlying assumptions
The current basic underlying assumptions of the branch include natural
values which are implicitly acknowledged as follows.
Enthusiasm: it is commonly agreed that when transacting with customers, the
top concern is how to fully satisfy customer’s needs. The satisfaction of
customers is the key to success of the branch.
Customer orientation: live in all banks in over the world, customers are the
King. Thus, it is necessary for the branch’s employees to first of all identify
what customers need and want and what the branch can do to fulfill those
wants and needs.
Morality: it is believed that morality is of utmost important quality a person
needs to have if his/her wants to work in a bank. As a banker, a person needs
to “keep a pure morality”.
Time is money: if one person is late, the whole system will be late. So time is
really valued.
Six basic underlying assumptions of VietinBank, Hoan Kiem Branch:
Conception of relationship between human and environment: the relationship
between people of branch and the working environment is a two-way
relationship. People are the ones who make better the environment and the
natures of environment make people have to live and behave as principle. In
general, members of the branch live in harmony in the working environment,
reciprocal affect, develop together.
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Conception of trust and reality: trust and reality in this branch is evaluated
based on the morality standard and base on the real information from work.
The subjective evaluation is not allowed in this branch.
Conception of human nature: people of the branch all believe that those who
work in the bank must be those who have enough required background and
good morality. Everyone has his/her own ability and he/she can bring into full
play the ability if he is entrusted the right task.
Conception of human activity: currently, the approach of the branch is a
“becoming” orientation where people are continually developing and
becoming an integrated whole.
Conception of human relationship: the branch tries to create every possible
condition to ensure harmony between individual development and group
benefits. Step by step, democracy and free speech has been used to mutually
find out the best solution to any problem.
Conception of time: for branch’s staff, time is money, as mentioned above,
therefore everyone values time. People value their time very much. They
consider time as the most valuable asset that once lost never can be found
again. That is why people get familiar to the thought that being late is one of
the first things to avoid.
4.5. Some suggestions to VietinBank in general
The development of corporate culture of VietinBank, Hoan Kiem Branch
relies mainly on the corporate culture of VietinBank. Being in transition from state
owned to private owned bank, VietinBank’s corporate culture will have to be
changed and improved to capitalize on a new direction. In this part, the writer will
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give some recommendations will be given for VietinBank in general to adjust its
corporate culture.
4.5.1. Identifying the right way of development
As a result of integration and the increasing independent among nations, there
has been an increase in recognition of different cultures around the world. Besides,
due to the fierce competition which each bank has been facing, banks have to adopt
more holistic strategic approaches to their business in order to survive and grow in
the highly competitive market. Therefore, the awareness of corporate culture and
identification of the right way of its development is really crucial.
Perhaps, it seems to be very easy to realize that culture is far-reaching
ramifications for all members of VietinBank and even those outside its boundaries.
An understanding of its culture is critical if the bank and its human resources want to
thrive. The reason is that culture in an organization or in banking sector affects its
members in many ways such as working hours per day, per week; the availability of
options such as flexible time and telecommuting, the way people interact with each
other in the workplace, how people dress at work, benefits to employees, office
space, training and professional development opportunities, perks-just everything
related to the working time.
A right way of development here means the specific direction of the bank but
it is still in the line with the rules of development of its industry and of the whole
country. To plan an effective strategy and the right way of corporate culture
development in banking sector in Vietnam, it is vital to assess the current situation,
especially in globalization and WTO accession now. Integration creates the
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opportunities for Vietnamese banking sector to learn and approach leadership style
from other foreign banks. From that, it will improve the fair competition among
small, medium and large banks in the market. Customers will exchange their
consumption habits culture and know more about new things in corporate culture in
those foreign banks.
In practice, since its transition from state to private ownership, VietinBank
has paid more attention to its corporate culture. The proof is the handbook of
VietinBank corporate culture issued in March, 2009. This handbook provides
information about corporate culture of the bank in the first two levels, artifact and
espoused values. The handbook serves as a frame for all branches and other parts of
VietinBank to develop their own culture. However, this handbook is quite vague. At
first, it was difficult to apply what is written in the handbook immediately in the real
situation of VietinBank. Therefore, VietinBank later on arranged classes for staffs of
all branches to learn and understand the role of corporate culture. Though, it is not
enough. In the future, VietinBank should launch a pilot model of corporate culture in
the head office and in one or some of its branches. It will be a very typical example
for other parts to see and learn.
Besides, the Management Committee of VietinBank should change the
leadership style to be suitable to the new situation, which is different from that in a
state-owned bank. VietinBank can study this from the big and successful banks all
over the world or even the foreign banks operating in Vietnam. The way they recruit
new employees, the way leaders communicate and spread the passion on employees,
etc. are things really worthy to learn.
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On the other hand, VietinBank should set their own objective and strategy for
each development period. By always sharing the difficulties with all staffs, and in
turn receiving constructive ideas from them, VietinBank will create the closer
relationship with employees. Members of VietinBank will feel that they have their
own values; their voice is heard and they will have the feeling that they have self-
control at work. From that, they will have more and more creative ideas contributing
to the development of VietinBank.
4.5.2. Improving the influence of core values inside and outside the whole system
The system of core values is an important part in business philosophy of all
enterprises in general and in the banking sector in particular. A long with the
leadership style, they will establish the action plan to perform the mission of an
organization. This system answers such questions like how the organization performs
its mission and achieves its targets. Which resources and media will be used?
Therefore, the system of core values is an important content which is seen to be the
spirit of an organization, and direct all the operation of the organization. Large
organizations in the world or in Vietnam both have the values system which show
the vision and philosophy of the leaders and is published in easy-to-see place in the
main websites or in the publications of these organizations. These values rarely
change and is imparted in association with the existence of the organization itself and
its products. These values are impregnated in all staffs and are the guideline for all
policies and strategies of an enterprise.
VietinBank’s core values are:
All activities are for the customers;
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Active, creative, professional, wholehearted, transparent and modern;
The employees have the right to work and devote themselves to the
bank-the right to be paid by the results and the individual contribution’s efficiency-
the right to be complimented the best employee.
The core values of VietinBank are quite long although these values refer to
the bank’s purpose, the main employees’ characteristics and the main rights of
human resource. Therefore, with members of the bank, it could be easy to understand
and remember. Day by day, these core values need to be popularized widely not only
inside the boundary of the bank but also the outside, especially to the customers of
VietinBank-who mainly create the success for VietinBank. The values should
impregnate with all staffs and create the positive impact on the way of thinking and
communicating of VietinBank’s members in all activities inside and outside the
boundary.
It is, therefore, suggested that the bank:
Build the specific customer - orientated strategies and spread them to both
VietinBank’s members and customers;
Offer the appropriate incentives which encourage the creativeness of the
employees;
Always update technology, adapt the working environment to the more
modern direction to create the better environment for employees.
4.6. Some suggestions to VietinBank, Hoan Kiem Branch
4.6.1. Leadership style as the decisive element in building and developing
corporate culture
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At any time and in any cases, leaders always play the most important role and
in shaping corporate culture of an organization.
VietinBank, Hoan Kiem Branch has got a new leader. A new leader means a
new leadership style. However, the most concerning problem is about the policies of
the branch. The leader needs to show her positive role in defining the policies,
strategies and common targets for the branch in each period based on the regulations
of VietinBank. The new development policies should be launched to suit the current
trend of the market.
In order to carry out the proposed policies, the leader is not the one who
forces staffs, but she herself needs to be the pioneer in performing these policies
anywhere, at anytime. For example, the leader should be the one who wear the
branch’s uniform first. That will create close relations between employers and
employees. From the small things to the big things, if the leader is the pioneer, she
can set a good example and from which she can encourage employees, makes them
respect and follow. Therefore, the branch can gain the achievements in performing
their strategies.
Banking environment requires the high principles of morality. Hence, leaders
need to be the ones who have the good impression of personality and morality on
staffs. When a problem arises in the branch, the decisions from a good impressive
leader will get more respect than from the one who has not really good impression in
the employees’ eyes. In additionally, a good leader will be able to find out best
solution and avoid serious mistakes.
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According to the observation and the interview, it seems that staffs of the
branch still do not feel free in discussing their ideas with the leader. The leadership is
the main reason. In the new situation, the way of leading needs to be changed. From
the senior mangers to junior managers and the leaders of teams need to change the
way of communication with staffs: caring more about employees’ working
environment, listening to and sharing their problems at work, receiving their
contributions, etc. Managers should also exchange their ideas with them. The
problems of management need to be shared with the whole organization to let every
one get a deeper understanding of the challenges in managing and to the managers.
From that, staffs will deeply sympathize with the leaders; they themselves will keep
changing their working style to best fulfill the requirements. If they feel something
not right, they can share with the leaders directly to help the leaders understand the
real situation and make change in time.
4.6.2. Building the specific value system
As mentioned above, the value system is really important for an enterprise.
For VietinBank, Hoan Kiem Branch, based on the value system of VietinBank, this
branch should develop its specific value system. These values need to be clear, easy
to remember and need to eliminate the obsolete thoughts.
Based on the real situation of VietinBank, Hoan Kiem Branch, some
suggested are made as follows:
Discipline: At work, discipline is important. The reason why Japanese can
succeed is they value high discipline at work. So, if the branch wants to gain
more achievements, strict discipline is of great concern. Discipline here is the
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rules and regulations which are promulgated by VietinBank and by the
branch itself. For example, the rule is staffs have to wear uniform every
working day. However, this is not done usually in some transactions locations
which are far away from the head quarter. The manager of the transaction
will be the one who should be responsible for any mistake caused by her/his
employees. The method is to dock the wage of this manager. By this way,
he/she will add more responsibility on warning his/her direct employees.
Conscience: This is the first thing that all bankers need to have when working
for a bank. The work requires people to be very careful with the number and
figures. Only one small mistake leads to serious consequence. Besides, when
communicating with customers, if bankers are not conscientious, they can
make the customers unsatisfied. Once customers are not fully satisfied, they
will not come back again to the branch.
Solidarity: In any organization, solidarity is the strength. Currently, staffs of
VietinBank, Hoan Kiem Branch have not shown the high solidarity.
Therefore, the Management Committee of the branch should hold some
internal activities to help people close together. Once they are closer, they can
easily understand each other and the solidarity will be built up step by step.
Being active and creative: These are now the dull values in VietinBank, Hoan
Kiem Branch. In a working environment where the number of old people
accounts for about 70%, it is easy to understand. However, if the branch
wants to further develop in the future and improve its competitiveness, it is
impossible to lack these two criteria. To have these, the first thing the branch
has to do is to change the employee’s structure. The branch should set the
new and higher requirements for its employees. From that, the branch can
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weed out those do not meet the standard requirements, for example those
without any university degree. At the same time, the branch can hold some
small competitions which create the chance for staffs to be creative. The topic
could be marketing ideas, for example.
Sharing environment: As mentioned above, members of the branch do not
want to share their ideas or even contribute their ideas to solve problems.
This is partly because of the leadership style. They share their ideas but
leaders do not want to listen to or they contribute straightly about something
caused by the leadership and then they get the bad impression on the leaders.
Through time, staffs will not contribute their ideas. To change that, leaders of
the branch need to change themselves first and then, show their willingness to
listen to their employees. So employees feel they are valued and then in
return they will be more dedicated to the branch’s development.
4.6.3. Changing the physical working environment
In Hoan Kiem District, VietinBank, Hoan Kiem Branch is one of the biggest
and most prestigious banks. However, many other banks have recently made their
presence felt in this area. Because of this area is the centre of Ha Noi City. In order
to keep pace with the development of the District, the branch should prepare a new
plan to improve its image. Besides improving the quality, the metal part should be
enhanced, too. The plan of building a new office of branch in a new location is
necessary.
While the time of building a project and asking for the finance from the Head
Office of VietinBank, in the current location, the branch also should modernize the
decoration. It will be suitable with the new development strategy of VietinBank and
it helps to improve the image of the branch on customers. A modern and active
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decoration will bring a better impression of serving quality. On the other hand, a
modern working office definitely can make staffs feel comfortable, enhance their
passion on work. However, changes still have to follow the standards of VietinBank
and in accordance with the style, philosophy and the culture of VietinBank.
4.6.4. Building up a close relationship between customers and branch
4.6.4.1. “Customer is King”
Image 4.1: Customer is King
The ultimate purpose of any economic organization is profit maximization.
Customers are those who bring profit to an organization. In the market now, the
focus of all organizations has gradually shifted from customer’s satisfaction to
customer’s delight. Globalization and integration cause fierce competition which
reminds every business that “Customer is the King”. Therefore, the branch should
reconsider the way it treats the King who is of great importance to enhance the
productivity and the profit of the branch through banking services and bank’s
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products. The answer is: good quality and easy procedure together with the
philosophy of caring.
First of all, the branch should realize that customer focus is very vital.
Surveys and customers feedbacks can be conducted to find out customer’s
gratification which is really useful in keeping the existing and attracting new
customers for the branch. However, the real consideration about customer
satisfaction could be drawn only when the same customers come back to the branch
and carry out some more business. With customers often doing direct transactions,
their longer stay with the bank could increase the retention percentages. Customers
will deepen the relationship with the branch. Customers will recommend bank’s
products or services to others. Thanks to them, the branch will surely get more
revenues and profits. Thus, in order to bring the branch in a powerful growth
trajectory, when the branch further develops, it will have more opportunities to adapt,
train and achieve customers’ satisfaction. However, customers’ satisfaction at the
transaction time is not the only element. The ability of making customers satisfied
after transaction is also very important. Hence, paying more attention on building a
good customer care service is really possible.
The branch can use the application of software in IT to help customers. For
example, the application of customer relationship management provides customer
care services for a smoother customer transaction. Customer support services are also
provided by the application which takes care of the needs and queries of the clients.
The investment on Customer call centre is still a good idea to improve the quality of
customer care and guarantee the best services for all customers in line with the view
point: “Customer is King”.
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Successful companies always listen to customers and provide the products
that customers want, not what the company wants to sell. Perhaps the most basic tool
of customer service is to listen to what they are saying or demanding. Often,
customers tend to visit companies/representatives who listen to them and help them
in fulfilling their needs. Listening to customers is an art, and much training and focus
should be given to develop this art. These tips can help the branch in that. Whenever
an employee speaks with a customer, try to keep him comfortable and relaxed. Also
remember they are in need of his support and service, not for sharing the tension.
Concentrate on what they are saying and always look for possibilities to offer helps
on anything they need. Try to understand the customer’s personality, their
profession, their goals, their social status, their needs, tastes and also their way of
thinking.
Moreover, gift giving is also a good idea to show respect to customers. It is a
good way to retain customers’ loyalty, and of course, naturally, it will make
customers help the branch doing the oral advertisement. However, one business
cannot afford to deliver gifts to every customer for a long time. Therefore, the branch
should do good planning. Branch should give gifts on special occasions such as on
customers’ birthdays, on Tet holidays or when the branch’s sales drop considerably.
All businessmen know the importance of customer service for their business
growth. But most of them fail to deliver best services to customers, because of many
different reasons. Here are some tips which the branch can use for their better
customer service practice. First, find and hire employees who have already been
trained about customer service and have good communication skills. There are many
people who want to serve others and are ready to serve at any time. Second, inform
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employees of the branch’s position, growth prospect, growth plans, products details,
advantages, etc., so that they can better serve customers. Make the customer service
an impressive experience with customers, they will return whenever they want to do
any banking transactions. Always raise customers concern and customer service in
business meetings, make it an important business agenda, so everyone in the branch
will be ready for better customer service.
4.6.4.2. PR and face-to-face communication with customers
Beside customer cares or call centre service, PR and face to face
communication will closer the relation between the branch and customers.
Public relations (PR) are the management of internal and external
communication of an organization to create and maintain a positive image. PR may
involve heightening success, downplaying failures, announcing changes, and many
other activities. However, ethical PR practitioners can also convince bank to work
more closely with its various publics and form win-win relationships.
PR activities aim to:
Contact with customers (press conference, customer conference);
Listen and receive feedbacks (customers comment about bank’s products or
services);
Exchange and show ideas (about the impacts of products or services to
consumers);
Build image and retain good reputation (support for the student’s
scholarships).
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Realizing the aims and meaning of PR activities, the branch should have a
specific strategy, such as advertising on local TV or radio. It is also important to
remember that there are many PR companies which specialize in PR activities
effectively in Vietnam, but they are almost foreign–owned. The branch can take
advantage of the experience and draw many useful lessons about PR activities from
those companies. Or instead, the branch can hire them to implement PR strategies if
budget is enough.
Face - to - face communication is also considered as part of PR activities.
This will help the branch receive feedbacks flexibly and directly from its customers.
As mentioned above, face – to - face communication is conducted by a customer
conference or interview on TV and radio talk with audiences or customers that the
clients think and wish to reach. It is also important to note that information from
direct conversations is better and more precise than this from other secondary
methods.
4.6.5. Learning from other organizations
Learning here does not mean copying from other organizations. The branch
can study some typical types of corporate culture of huge banks in the world or that
of Vietnamese banks or even though study from other branches of VietinBank. The
best way is to learn from reality, then look back at their development to know what
they did, finally, draw the own conclusions or lessons for the branch. From these
lessons, together with Vietnamese culture, the branch can adjust its own culture to
better suit Vietnamese people.
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Besides learning from other banks, the branch can learn from the other
branches in the same system. For example, VietinBank, Hai Ba Trung branch is a
successful branch in Ha Noi. The profit of this branch is always higher than other
VietinBank’s branches in Ha Noi. VietinBank, Hoan Kiem Branch can learn from
them, from the leadership style to the customer strategies, selective learning will be
the key for the development of VietinBank, Hoan Kiem Branch.
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CHAPTER V – CONCLUSION
5.1. Conclusion
The revolution of science and technology leads to many enormous changes,
especially to the economic sector. It affects all the aspects of enterprises, banks and
other sectors of the economy when adapting to a new situation. These influences
require an innovation in most units including companies, banks or multinational
corporations in the Vietnamese market. The innovation process must be firstly
carried out in the corporate culture of each organization, from leadership style of
managers, working style of staffs to professional environment. In the other words,
corporate culture should be paid more attention to during the innovation and
integration of most businesses.
Corporate culture consists of many elements such as dress code, leadership
style, office decoration or organizational behavior, etc. In this research, the concept
of corporate culture is limited to VietinBank, Hoan Kiem Branch. Each element of
corporate culture plays its own important role in a unified system of a bank. Dress
code brings a more professional working style, while leadership style affects
encouragement and motivation to the subordinators who contribute to the
development of bank. To VietinBank, Hoan Kiem Branch in particular and the
banking sector in general, corporate culture is becoming one of the vital strategies to
promote banking operations. Therefore, building a significant corporate culture is
very useful to enhance and improve all business activities.
As a final conclusion, this study focuses on corporate culture and its
manifestations in VietinBank, Hoan Kiem Branch. The writer hopes that this
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research will contribute some valuable information to the development of corporate
culture of this branch.
5.2. Limitation of research
The research scale on this study was limited in a Branch, a case study, so the
sample size was also limited. The result may be varied if a large scale was conduct.
The general answers and analysis based on the majority of the information
collected, but the knowledge of the participants about corporate culture may differ.
However, errors on this research were the assumption of low rates.
Researchers might encounter financial problems during research phase.
66
REFERENCES
ENGLISH
Books
1. Donnelly, J.H., Gibson, J.L. and Ivancevich, J.M. (1992) Fundamentals of
management. Boston: Irwin
2. Edgard H. Schein. (2004). Corporate culture and leadership (3th ed.). Jossey Bass
3. Edgard H. Schein. (1999). The corporate culture survival guide. Jossey Bass
4. Geert Hofstede. (1984). Communication between culture (4th
ed.). Larry A.
Samovar and Richard E. Porter, Wadsworth/Thomson Learning, Belmont, CA, 2001
5. Michael R. Czinkota, Iikka A.Ronkainen, Michael H.Moffett. (2001).
International Business (6th
ed.)
6. Plunkett, W.A. and Attner, R.F. (1994). Introduction to management. (5th ed.)
Belmont: Wadsworth
7. Taylor, Edward. 1924 [1871]. Primitive culture. 2 vols. (7th
ed.). New York:
Brentano's
Web documents
1. Dennis O’Neil (2006), What is Culture. Retrieved from the World Wide Web:
http://anthro.palomar.edu/culture/culture_1.htm
67
2. Rao, B.P. and Swaminathan, V. (1995), Uneasy alliances: cultural
uncompatability o rculture shock? Retrieved from the World Wide Web:
http://www.amiltd.com/AllianceCulture.html
3. Robuck, Mike, (2008), Customer experience is King, Retrieved from the World
Wide Web: http://www.cedmagazine.com/
4. James Neil, 5 July 2006, Qualitative research I, Retrieved from the World Wide
Web: http://wilderdom.com/OEcourses/PROFLIT/Class6Qualitative1.htm
5. Dr. C. George Boeree, Qualitative methods, Retrieved from World World Web:
http://webspace.ship.edu/cgboer/genpsyqualmeth.html
Journal Articles
1. Conner, D.R., B.G. Fiman, and E.E. Clements. 1987. “Corporate Culture and Its
Impact on Strategic Change in Banking”, Journal of Retail Banking.
2. Desphande’, R. and F.E. Webster, Jr. 1989, “Organizational Culture and
Marketing: Defining the Research Agenda”, Journal of marketing.
3. “The concept of Marketing mix”, the journal of Advertising Research, June 1964.
4. Philipsburg. 2005. “Steering group agrees to adopt UNESCO definition of
culture”, Journal of Daily Herald.
68
VIETNAMESE
Books
1. PGS.TS. Dương Thị Liễu. (2008). Bài giảng văn hóa kinh doanh. Nhà xuất bản
Đại học Kinh tế quốc dân.
Websites
1. http://www.vietinbank.vn/web/home/en/index.html
2. http://www.vietinbank.vn/web/home/vn/research/09/090113_vanhoa.html
3. http://www.vietinbank.vn/web/home/vn/research/09/090521.html
4. http://www.vietinbank.vn/web/home/vn/research/09/090316.html
5. http://www.vietinbank.vn/web/home/vn/research/09/090113_vanhoa.html
Publications
1. Sổ tay Văn hóa doanh nghiệp VietinBank, tháng 3, 2009
2. Giới thiệu Hệ thống Bản sắc Thương Hiệu VietinBank, 2009
