Tài liệu The impact of corporate cultural in vietnamese companies a case study of vietinbank, hoan kiem branch

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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 i 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: ii 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 iii 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. iv 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 v 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 vi 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 vii 5.1. Conclusion.......................................................................................................... 64 5.2. Limitation of research....................................................................................... 65 REFERENCES ......................................................................................................... 66 viii 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 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 Chapter 4 ____________________________________________________________________ ix 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 –––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––– x 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 1 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? 2 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. 3 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. 4 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 5 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 6 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 7 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. 8 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. 9 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. 10
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