Tài liệu Improving corporate culture at vietnam prosperity bank

ĐẠI HỌC QUỐC GIA HÀ NỘI KHOA QUẢN TRỊ VÀ KINH DOANH --------------------- TRỊNH TRỌNG THỦY IMPROVING CORPORATE CULTURE AT VIETNAM PROSPERTIRY BANK HOÀN THIỆN VĂN HÓA DOANH NGHIỆP TẠI NGÂN HÀNG VPBANK LUẬN VĂN THẠC SĨ QUẢN TRỊ KINH DOANH Hà Nội - 2017 ĐẠI HỌC QUỐC GIA HÀ NỘI KHOA QUẢN TRỊ VÀ KINH DOANH --------------------- TRỊNH TRỌNG THỦY IMPROVING CORPORATE CULTURE AT VIETNAM PROSPERTIRY BANK HOÀN THIỆN VĂN HÓA DOANH NGHIỆP TẠI NGÂN HÀNG VPBANK Chuyên ngành: Quản trị kinh doanh Mã số: 60 34 01 02 LUẬN VĂN THẠC SĨ QUẢN TRỊ KINH DOANH NGƯỜI HƯỚNG DẪN KHOA HỌC: TS. TRỊNH NGỌC HUY Hà Nội - 2017 DECLARATION The author confirms that the research outcome in the thesis is the result of author’s independent work during study and research period and it is not yet published in other’s research and article. The other’s research result and documentation (extraction, table, figure, formula, and other document) used in the thesis are cited properly and the permission (if required) is given. The author is responsible in front of the Thesis Assessment Committee, Hanoi School of Business and Management, and the laws for above-mentioned declaration. Date: November, 01, 2017 i ACKNOWLEDGEMENT I have gained huge knowledge, skill and insights from my MBA course. The course raises my capacity of administration and management up to the next level. I am now very confident in my position of management. I would like to extend my sincerest thanks and appreciation to all those who have made this Thesis to be possible. I woud like to express my great gratitude to my supervisor Mr. Trinh Ngoc Huy for his useful comments, remarks and engagement during my process of doing this master thesis. Also, I would like to give my sincere thanks to staff of Vietnam Prosperity Bank, in my survey, who have willingly spent their precious time joining the interview. Sincere thanks are extended to the Hanoi School of Business and Management (HSB) - Vietnam National University, Hanoi for equipping me with huge knowledge and skills through various interesting and practical subjects. I also would like to thanks my classmates for their friendship and reciprocal encouragement to make our class time to be unforgettable time Lastly, I would like to give my great thanks to my wife, my kids, and my family who always standby me during the past two years and encourages me to keep moving from the beginning of my study. ii SUMMARY 1. Summary of the result With the synthesis of corporate culture theory of researchers, foreign and domestic scholars, the author made the choice of corporate culture analysis method at VPBank, according to OCAI model, with four types of corporate culture, namely family culture, hierarchical culture, creative culture, competitive culture. From there, it was necessary for the author to not only determine the type of corporate culture expressed at VPBank but also identify the corporate culture that VPBank staff desire in the future. As can be seen from the results, family and market culture are expressed strongly at VPBank, and in the future, VPBank staff recommend a higher creative culture at work. Besides, the author based on the content of survey to point out that there were some limitations in tangible value as weak sites about the rituals, festivals, the story, anecdotes of the enterprise, or declared value or common concept like the core value, information sharing that were limited points. Therefore, the proposed is to strengthen creative culture value and improve above corporate culture facts at VPBank 2. Applicability in practice Business culture in general and corporate culture in particular always accompany with the sustainable development of any business. The more businesses want to develop, the more they need to build the solid foundation on culture, thereby creating coherence in the internal business, and the pride of employees with business, and create your own business style to help affirm corporate brand on the market. As a result, the issue of corporate culture research always has the urgency in accordance with requirements of the enterprise development. Hence, the author's research results will contribute a part in the direction of building enterprise culture for VPBank, following the consistent with the demands of VPBank officials staff, at the same time, the solution will contribute to the selection of building corporate culture direction of VPBank leaders. With positive and convince results that the author did, it might be believed that recommendations that the author gave are iii realistic high and meet the current characteristics of enterprise culture at VPBank and also support for the construction of enterprise culture at VPBank in the future. 3. Further research orientations If there are further research conditions, the author hopes to perform further research about corporate culture at VPBank accompanied the evaluation of enterprise culture model in a more diversified way, and use models such as family culture Model, Eiffel Tower culture model, homing missiles culture model, incubation culture model. There also needs additional researches about banking business culture to complete a more detail view on the characteristic culture at VPBank, from which propose better recommendations for VPBank. iv TABLE OF CONTENTS DECLARATION ......................................................................................................... i ACKNOWLEDGEMENT .......................................................................................... ii SUMMARY............................................................................................................... iii TABLE OF CONTENTS ........................................................................................... v LIST OF TABLES .................................................................................................. viii LIST OF FIGURES AND PICTURE........................................................................ ix INTRODUCTION ...................................................................................................... 1 CHAPTER 1: CORPORATE CULTURE THEORY AND CORPORATE CULTURE MODEL IN COMMERCIAL BANKS ........................................................................ 8 1.1 An overview of corporate culture .................................................................... 8 1.1.1 Basic concepts ........................................................................................ 8 1.1.2 Characteristics of corporate culture .................................................... 10 1.1.3 The necessity of building corporate culture ......................................... 12 1.2 Factors influencing the corporate culture ....................................................... 13 1.2.1 National culture .................................................................................... 13 1.2.2 The leader’s characteristic ................................................................... 13 1.2.3 Other corporate culture ........................................................................ 13 1.2.4 The customer......................................................................................... 14 1.2.5 The business industry............................................................................ 15 1.3 Components of corporate culture ................................................................... 15 1.3.1 Visible values ........................................................................................ 15 1.3.2 Statement about corporate culture ....................................................... 17 1.3.3 Invisible values ..................................................................................... 19 1.4 Components of the bank’s corporate culture ................................................. 20 1.5 Business culture models ................................................................................. 22 1.5.1 Clan oriented culture model ................................................................. 22 1.5.2 Adhocracy oriented cultures ................................................................. 23 1.5.3 Market oriented cultures ...................................................................... 24 1.5.4 Hierarchy oriented cultures.................................................................. 25 v CHAPTER 2 ACTUAL STATUS OF CORPORATE CULTURE OF VPBANK . 27 2.1 Overview of Vietnam Prosperity Joint Stock Commercial Bank .................. 27 2.1.1 The formation and development process .............................................. 27 2.1.2 Business mission and function .............................................................. 28 2.1.3 Organizational structure and departments .......................................... 29 2.1.4 Distribution system ............................................................................... 29 2.1.5 Business resutls..................................................................................... 30 2.2 VPBank ’s corporate culture contents ............................................................ 31 2.2.1 General concepts .................................................................................. 31 2.2.2 The statement of corporate values ........................................................ 33 2.2.3 Visible values ........................................................................................ 35 2.3 The actual status of corporate culture of VPBank by survey......................... 45 2.3.1 Assessing the levels of VPBank 's corporate culture ............................ 45 2.3.2 Identify the VPBank ’s corporate culture model and future oriented .. 50 2.4. The affecting factors on the VP Bank corporate culture ............................... 56 2.4.1. The national culture............................................................................. 56 2.4.2. The leaders .......................................................................................... 56 2.4.3. The learned cultural values ................................................................. 57 2.4.4. The customer........................................................................................ 58 2.4.5. The business industry........................................................................... 59 CHAPTER 3 SOLUTIONS FOR IMPROVING THE CORPORATE CULTURE OF VPBANK ............................................................................................................ 60 3.1. Research summary ........................................................................................ 60 3.2. The development direction for the VPBank corporate culture ..................... 60 3.3. Solutions for improving the corporate culture of VPBank ........................... 61 3.3.1. Complete the general concepts ............................................................ 61 3.3.2. Complete the declared values .............................................................. 62 3.3.3. Building the visible values to create the special characteristics in VPBank corporate culture ............................................................................. 65 3.3.4. Training and enhancing the understanding of corporate culture ....... 65 3.3.5. Other supplemental solutions ........................................................... 66 vi 3.4. Recommendations ......................................................................................... 68 3.4.1. Improve the legal framework of the State............................................ 68 3.4.2. Administrative reform .......................................................................... 69 3.4.3 Enhance the leadership of the Party, and management effectiveness of the Goverment ................................................................................................ 69 CONCLUSION ........................................................................................................ 70 REFERENCES ......................................................................................................... 71 APPENDIX .............................................................................................................. 73 vii LIST OF TABLES Table 2.1 Business results of VPBank ..................................................................... 30 Table 2.2 The main ideal in business operation of VPBank .................................... 32 Table 2.3 Special architectural features.................................................................... 37 Table 2.4 VPBank 's policy documents .................................................................... 38 Table 2.5 Main ritual and ceremonies of VPBank ................................................... 41 Table 2.6 Annual charity events ............................................................................... 43 Table 2.7 Assessment of corporate culture levels .................................................... 45 Table 2.8 The VPBank ’s corporate culture model under the evaluation of staffs......... 50 Figure 2.6 The VPBank ’s corporate culture model under the evaluation of staffs ........ 50 Table 2.9 The VPBank ’s corporate culture model under the evaluation of middle leaders ....................................................................................................................... 51 Table 2.10 The VPBank ’s corporate culture model under the evaluation of senior leaders ....................................................................................................................... 53 Table 2.11 General assessment on VPBank ’s corporate culture model .................. 54 Table 2.12 Strength and Weaknesses in the direction develop the corporate culture models in VPBank .................................................................................................... 55 viii LIST OF FIGURES AND PICTURE Figure Figure 2.1 Structure of VPBank ............................................................................... 29 Figure 2.2 Visible values assessment ....................................................................... 46 Figure 2.3 Declared values and General concepts assessment ................................. 47 Figure 2.4 Visible values assessments by surveyed groups ..................................... 49 Figure 2.5 Declared values and General concepts assessments by surveyed groups ...... 49 Figure 2.6 The VPBank ’s corporate culture model under the evaluation of staffs ........ 50 Figure 2.7 The VPBank ’s corporate culture model under the evaluation of middle leaders ....................................................................................................................... 52 Figure 2.8 The VPBank ’s corporate culture model under the evaluation of senior leaders ....................................................................................................................... 53 Figure 2.9 General assessment on VPBank ’s corporate culture model .................. 54 Picture Picture 2.1 VPBank Logo ......................................................................................... 39 Picture 2.2 Corporate uniform .................................................................................. 40 ix INTRODUCTION 1. Rationale Vietnam is in the process of deepening integration with the regional and world economy. The integration process plays an important role in expanding the trade and exchange activities of the whole industries, institutions (enterprises) with the rest of the world. Economic integration will gradually remove trading (and investment) barriers, enter the international markets, reach to the new technologies and modern management experience. At the same time, the integration process promotes innovation and enhances the competitiveness of domestic firms, promotes economic growth, reallocates resources efficiently, and enhances the living standards, attracting finance, science and technology ... This actual requires each country (industry, sector) in general and each enterprise in particular to actively integrate, promote strengths, remove the weaknesses in order to create competitive advantage and development. Banking sector is no exception to the above trend. Naturally, the economic integration creates favorable conditions for foreign banks that have large-scale, high-level of management, huge capital and finance... enter the Vietnam banking market, exploitation our country's financial market. This is one of the greatest pressures on commercial banks in Vietnam. The strength of an enterprise is not only shaped by external resources (such as assets, capital, quality and quantity of labor ...) but also by organizational factors. (corporate culture...). The corporate culture is an invaluable invisible asset of every enterprise. The corporate culture is “the soul, belief, attitude and the value” that stable exist in enterprise. Corporate culture is built on factors including: business and management philosophy; Motivation of individuals and organizations; Regulatory system; Information system; Movement, Ceremony (Ritual). Building corporate culture in the organization is important to motivate employees, reduce conflicts in the enterprise, improve the efficiency of inspection and control, and improve the competitive advantage of the enterprise. Realize the important of corporate culture, Vietnam Prosperity Bank (VPBank) has built up its own specific culture and creates its strength to overcome 1 all difficulties and challenges to become a leader in many aspects of commercial banks in Vietnam. However, VPBank ’s culture is still limited and not yet really fit with its potential and the expectation of employees. Moreover, the issue of research on corporate culture at VPBank has not been done in a science way, and there is not any research project related to the corporate culture at VPBank is done up to now. Therefore, the author has chosen the topic of "Corporate culture at Vietnam Prosperity Bank" to fulfillment the master thesis because of these practical and research requirements above. 2. Literature review The phrase of "cultural entrepreneur" or "corporate culture" is no stranger to business man and those who care about the economy, in general. Besides capital, finance, labor resource, management skill, business strategy…, the strength of corporate culture made the difference between the enterprise and its competitors. In other words, corporate culture has a very important role that helps stabilize the business grows and making relationship between business owners with employees, partners, customers become better...Because of its importance, researchers and business managers have spent a lot of time in studying the field of corporate culture. Following are several typical case studies: E. Schein (1992) ran a research on "Organizational Culture and Leadership". According to Schein, the structure of corporate culture can be divided into three different “layers”. The term "layer" refers to the extent possible sense of the cultural values of the organization, or in other words, it is the visible and invisible property of corporate cultural values. In this research, the author pointed out the “three layers model” of corporate culture. The first layer includes the “visible process and structures” (visible and easy to realize). The second layer is the “accepted values” and the last layer is the “general conceptions” (invisible). The corporate culture is built on the both factor (visible and invisible) of which, the invisible is the core and has a stronger impact to corporate culture than the visible factor. This research has made great success in making three layers model of corporate culture as a solid theory foundation for further studies. However, the research results of Edgar Schein 2 just fitted with conditions at 1992, this study may not up to date when the global economy is now far differing. Nguyen Hai Minh (2015) completed a research on "Model of the corporate culture at the state-owned commercial banks before and after Vietnam joined the WTO". This study, the author Nguyen Hai Minh conducted at big-four state-owned commercial banks in Vietnam: Joint Stock Commercial Bank for Foreign Trade of Vietnam (Vietcombank), Joint Stock Commercial Bank for Investment and Development of Vietnam (BIDV), Joint Stock Commercial Bank for Industry and Trade of Vietnam (VietinBank) and the Vietnam Bank for Agriculture and Rural Development (Agribank). More than 1,500 questionnaires were sent, 1,056 got back, of which 318 came from employees who both working at the bank in the period before and after Vietnam joined the WTO. The author based on research of Cameron and Quinn to complete corporate culture model in this study by adding six factors include: highlight features of enterprise, management style, employee characteristics, cohesive elements in the organization, development strategy and success criteria. Based on that background, the author suggests some solutions for commercial banks in Vietnam to build a suitable model of corporate culture. The solutions include: Building a specializing department of corporate culture management at commercial banks; Building corporate culture toward the market characteristics; education, improve the knowledge and awareness of employees about corporate culture. The results of this study are an important basis for the stateowned commercial banks are shaping their corporate culture models. However, due to research issues as well as the author's sample is too broad, the author did not yet analyze detail each factors of corporate culture model that the author pointed out. Joke Mooij (2004) with the research of “Corporate Culture of Central Banks: Lessons from the Past”. In this research, Joke Mooij shows a fully framework of literature of corporate culture, factors that affect the process of building corporate culture (national culture, the role of leaders...). In addition, the author also points out the elements involving in corporate culture such as: visible factors, board of leaders and quality of staffs, regulation of culture, conventions...Based on this framework, the author applied to analysis the corporate culture of financial 3 institutions in particular central banks of UK. This paper explores what may be learned about the culture of financial institutions in particular central banks by looking at their history. However, this paper still contains some limitations such as: did not set up a corporate culture model in the research and, some of the data did not totally measurable (quantitative). Doan, H.T (2013) has done a research of “Corporate culture survey at Asia Commercial Joint Stock Bank”. In this research, the author shows the corporate culture elements such as: visual icons and in visual icons. Based on that, the author shows a detail model that includes specify variables: Physical symbols, rituals, anecdotic, language, slogans, values and standards. By applying this model on survey, some solutions were gave out for the ACB to complete their corporate culture such as: regular training courses for officials; Strengthening of on-the-job training, mutual guidance between staff members in departments on corporate culture; Regularly organize tests for exploring the corporate culture of the bank ...This research is a good reference for applying in the research about the VPBank However, in the research of Doan, H.T (2013), this author did not show a good solution to setup a perfecting corporate culture at Asian Bank. Thus, after reviewing some typical researches, I will continue to study this topic to supplement the "research gaps" in both theoretical and practical as following: + About the theoretical: None of works codified fully and comprehensively the basic theory of corporate culture in the commercial banking sector, particularly in the context of Vietnam during the process of international integration. + About the practical: Although there are many studies on building corporate culture, quite a few studies on corporate culture in the banking sector, especially in VPBank So, the research on “Corporate culture at Vietnam Prosperity Bank” is practical necessary to supplement the "research gaps" of the earlier studies as shown above and not be overlap with previous studies 4 3. Research objectives 3.1 General objective Research the current status of the corporate culture at VPBank and suggest to the VPBank managers some solutions for perfecting corporate culture. 3.2 Detail objective - Systemize basic theoretical issues of corporate culture and corporate culture model in commercial bank. - Studies the current status of corporate culture and corporate culture building process of VPBank - Suggest some solutions and recommendations in order to improve the corporate culture in VPBank 4. Object of research Assess the current status of corporate culture and corporate culture building process of VPBank 5. Scope of research Location: The study will be performed at VPBank head office and branches of the VPBank in Hanoi. Time: + The primary data: will be collected since 15/06/2016 to 30/09/2016 via google form and direct interview at VPBank ’s branches, head office in Ha noi. According to the opinion of Hair (1998), the minimum sample size for research needs to be from 100 to 150 observations. Research on sample size by Roger (2006) presents that minimum sample size for practical researches is from 150-200 samples. The information of VPBank in the period of 2013-2015, interview data is in the Sept of 2016. 6. Research methodology 6.1 Method of data collecting: + Secondary data: Published data in period of 2013 -2015 of VPBank and other information on internet, journals, publicity reports of banking system. 5 + Primary data: Author scheduled time to collect data in the period of time from 15/08/2016 to 30/09/2016 via email (google form) and directly collect via interview at the VPBank 's branches in Ha Noi and head office VPBank The interviewees are employees, managers of VPBank s at selected branches and head office. The observation method is also applied in this study to understand the behavior and style of work, the expression of the corporate culture of the staff, leaders of the branches in the system of VPBank 6.2 Data processing method and analysis method • Metaanalysis: Metaanalysis is applied in selection, assessement and summary the related documents. The related documents are: researches in corporate culture topic, banking culture, information of VPBank ’s culture. After that, the author will assesses and selects these documents to meet the research aims. • Methods of sociological survey Methods of sociological survey is applied in questionnaires building, collecting the elements of the corporate culture. The content of the questionnaire includes selected scales that are inherited from previous studies. Each answers (choosing of interviewees) is seperated by 5 options as: (1: No/Not implemented, 2: Weak, 3: Intermediate, 4: Good, 5: Excellent). On this basis, the authors analyze and assess the strength of corporate culture of VPBank From there, draw conclusions, as a basis for process improvement and orientation to the corporate culture at VPBank In order to complete the research, the author will implement the following steps in collection and processing data: + The interviewees: Officers who are currently working at VP Bank (Headquarter, branches at Hanoi). + Sample size: According to the opinion of Hair (1998), the minimum sample size for research needs to be from 100 to 150 observations. Research on sample size by Roger (2006) show that, the minimum sample size for practical researches is from 150-200 observations. So, of the total 180 sent, 153 feedbacks, 07 invalid. 6 Thus, the total sample size in analyzing are 146. The survey questionnaires were sent via email to the random selected officers of VP Bank (listed by the VPBank). The survey time was 15/8/2016 to 30/9/2016. Of the total valid feedbacks, there was 05 seninor leaders (deputy general manager, Member of Supervisory Board), 15 managers (branches manager, Dept leaders), 126 staffs (work at Head quater and branches in Hanoi). The method of identification the VPBank ’s culture is based on OCAI model of Kim S.Cameron và Robert E.Quinn. 7. Structure of thesis The thesis is started with the Introduction and ending by the Conclusion. The main contents of this thesis are divided into three chapters as following: Chapter 1: Corporate culture theory and corporate culture model Chapter 2: Actual status of corporate culture of Vietnam Prosperity Bank Chapter 3: Proposed solution to improve the corporate culture in Vietnam Prosperity Bank. 7 CHAPTER 1 CORPORATE CULTURE THEORY AND CORPORATE CULTURE MODEL 1.1 An overview of corporate culture 1.1.1 Basic concepts Culture There are quite much concepts and (or) definitions of culture that reflect different viewpoints of human being about the social movement (operation). By the traditional way, people all consider the culture as “the endemic living mode of human beings that totally different from other on the earth”. Culture is made by human beings through the survival activities since the past up to date, over generations and that is not the resulting from the problem of genetics. However, according to the systematic perspective (view), human being’s activities just be considered as culture unless it satisfies with following conditions: (1) the result of human being’s activities must be valuable (called as values), (2) these values must be made by human beings in a continuous historical process and (3) these values must be in a strictly system (E. Heriot, 1990). On the side of academic terminology, culture is derived from the Latin language of "Cultus” with the meaning of cultivation (it means "cultivating the land", or "cultivating the spirit" or "cultivating the soul of human"). So, Thomas Hobbes cited out that “…the teaching of children is called spiritual cultivation" (Thomas Hobbes, 1649). According to Ho Chi Minh president "Culture is the synthesis of all modes of living together with its manifestations that humans create in order to meet the needs of human and the demands of life" (Ho Chi Minh, 1943). Federico Mayor – the Former General Director of UNESCO – said “Culture is the overall creative activities from the past to the current. By the years, these creative activities have built a system of values, tradition and social trends (taste) that identify culture of each nations” (Federico Mayor, 2002). Vietnamese Dictionary (2004) gives a series of concepts of culture such as: 8  Culture is the overall general material and spiritual value that are created by human in the historical process;  Culture is a system of material and spiritual values that are created and accumulated by human beings in the long period of actual operation, in the interaction between humans and the natural and social environment;  Culture is the human activity to satisfy the needs of spiritual life (in general);  Culture is social knowledge, scientific knowledge (in general);  Culture is high level in social activities, expression of civilization; Thus, in general, culture could be understanding as “a special product of human society that is made and developed through the relationship between people and society. Culture, in its turn, takes an important role in creating human beings living style and ideology, maintenance the social stability and order. Culture is preserved and handed down over generations through the process of socialization. Culture represents the development level of human and society that is manifested in the types and forms of social organization, human actions as well as in the material and spiritual values. Corporate culture As the same with the definition of culture, corporate culture also be defined by many different ways and none of them is the standard definition. Here are some commonly used in corporate culture definitions: According to Georges (2009) " Corporate culture is the synthesis of values, symbols, legendary, ritual (etiquette), taboos, philosophical and ethical views that build up the foundations of enterprise". Another definition that was showed by Akihiko Urata (2010): "Corporate culture can be understood as a characteristic of cultural value, a behavior based on a goal that members share and keep. It can be considered as the standard and common behavior of the enterprise and staffs”. Assoc Prof Duong Thi Lieu (2011) gives out a definition of corporate culture as follows: "Corporate culture is all cultural factors that are selected, created, 9