UNIVERSITY OF ECONOMICS HO CHI MINH CITY International School of Business ------------------------------ VƯƠNG THỊ HƯỜNG POOR TRAINING QUALITY IN VIETINBANK – X BRANCH’S ENTERPRISE CUSTOMER DEPARTMENT MASTER OF BUSINESS ADMINISTRATION Ho Chi Minh City – Year 2019 LUAN VAN CHAT LUONG download : add luanvanchat@agmail.com UNIVERSITY OF ECONOMICS HO CHI MINH CITY International School of Business ------------------------------ VƯƠNG THỊ HƯỜNG POOR TRAINING QUALITY IN VIETINBANK – X BRANCH’S ENTERPRISE CUSTOMER DEPARTMENT MASTER OF BUSINESS ADMINISTRATION SUPERVISOR: ĐOÀN ANH TUẤN Ho Chi Minh City – Year 2019 LUAN VAN CHAT LUONG download : add luanvanchat@agmail.com Table of Contents Executive summary. 7 CHAPTER 1: COMPANY INTRODUCTION. General information about Vietinbank – X branch. Enterprise customer department.
High turnover rate. Deposit mobilizing activity. High non-performing loans ratio. High provisioning expense.
23 CHAPTER 3: PROBLEM IDENTIFICATION. Incompatible compensation policy. Poor training courses. The importance of main problem.
37 CHAPTER 4: CAUSE VALIDATION .39 1 LUAN VAN CHAT LUONG download : add luanvanchat@agmail. Unclear Training objectives. Unpractical training contents. Inefficient training time management.
Inappropriate frequency of training. Insufficient training amenities. Lack of training evaluation. Unclear Training objectives.
Lack of training evaluation. 46 CHAPTER 5: ALTERNATIVE SOLUTION. Solutions for setting clear training objectives. Solutions for developing professional trainers.
Solutions for improving the quality of training evaluation.59 CHAPTER 6: ACTION PLAN. 90 2 LUAN VAN CHAT LUONG download : add luanvanchat@agmail.com List of Abbreviations Vietinbank Vietnam Joint Stock Commercial Bank for Industry and Trade NPL Non - Performance Loan ECD Enterprise Customer Department HRD Human Resource Department DOB Director of Board 3 LUAN VAN CHAT LUONG download : add luanvanchat@agmail.com List of Tables Table 1: Concepts about Kinds of Credit Group. 18 Table 2: Non – Performing Loans of X Branch and Enterprise Customer Department in 2018. 18 Table 3: Ratio of Specific Provision.
20 Table 4: The Profit of X Branch’s Enterprise Customer Department, X Branch and HCM Region’s Enterprise Customer Department. 24 Table 5: A Summary of Some Researchers' Comments on the Role of Key Factors in a Training Course. 49 Table 6: Estimated Costs for Solutions to Improve the Quality of Trainers. 59 Table 7: Estimated Costs for Solutions to Improving the Quality of Training Evaluation.
61 Table 8: Estimated Costs of Kaufman's Training Evaluation Method. 62 Table 8: Action Plan. 68 4 LUAN VAN CHAT LUONG download : add luanvanchat@agmail.com List of Figures Figure 1: Human Resource Structure According to Work Experience of Enterprise Customer Department in 2018. 11 Figure 2: Turnover Rate from 2016-2018 in X Branch’s Enterprise Department.
12 Figure 3: Total Deposits of X Branch and Enterprise Customer Department in 2018. 13 Figure 4: The Rate of Implementing Deposit Mobilization Plan in 2018 of X Branch and Enterprise Customer Department. 14 Figure 5: The Average Productivity of Deposit Mobilizing Implementation of the Enterprise Customer department in X Branch and HCM City Region. 15 Figure 6: Credit Balance of the Enterprise Customer Department in 2018.
15 Figure 7: Productivity of Credit Activity in 2018. 16 Figure 8: The NPL ratio of X Branch’s Enterprise Customer Department, X Branch and HCM Region’s Enterprise Customer Department. 19 Figure 9: Loan Debt Ratio without Collateral of X Branch, the Enterprise Customer Department and HCM Region. 21 Figure 10: Provision Expense of X Branch in 2018.
22 Figure 11: Proportion of Provision Expense of X Branch and HCM Region in 2018. 22 Figure 12: Total Profit after Deducting Provisions of X Branch and HCMC Region in 2018. 23 Figure 13: The Rate of Implementing Profit Plan in 2018. 25 Figure 14: ROA of X Branch and HCM Region in 2018.
26 Figure 15: The Average Income of Some Commercial Banks in 2018. 31 5 LUAN VAN CHAT LUONG download : add luanvanchat@agmail.com List of Diagrams Diagram 1: Organization of Operation of X Branch. 9 Diagram 2: A Model of Job Stress. 29 Diagram 3: The Initial Cause – Effect Map.
35 Diagram 4: Updated Cause – Effect map of Enterprise Customer Department. 41 Diagram 5: Final Cause – Effect Map of the customer Department. 47 Diagram 6: The Analysis Process of Employees’ Performance. 52 6 LUAN VAN CHAT LUONG download : add luanvanchat@agmail.com Executive Summary Under strong competitive pressure among commercial banks today, the working environment at banks has become more stressful than ever and more than all other industries.
Banks are constantly modernizing by applying many modern technologies to the development of new products, increasing utility for consumers. However, the quality of the workforce remains a key to the success of commercial banks. They are the bridge connecting banks and customers. With that great role, the workforce in Vietinbank – X branch’s enterprise customer department has constantly made efforts to improve the professional level to meet the highest requirements for work.
That the volume of daily processing work is higher, the pressure of work is higher, but the proportion of inadequate income makes the rate of quitting work at this department increasing. The new employees are lack of real experiences, skills and not met the work requirements. The above factors have partly caused negative impacts on the current business results of X branch. Realistically, the biggest problem of Vietinbank - X branch is facing is the poor quality of training.
This makes the new workforce in the enterprise customer department fail to meet the work requirements promptly. The quality of customer appraisal in this department decreases and makes bad debt increase (1). In addition, the lack of skills in sales has also resulted in a significant reduction in credit and capital sales. Poor working capacity has partly increased the work pressure for employees in this department, increasing turnover rate at the branch.
With certain limitations, this study desires to offer effective solutions to promote the quality of training at X branch in particular and at Vietinbank system in general. From there, X branch’s business activity will become more and more developed. Its business cost will decrease and its profit will increase. The welfare policies for its employees will also be improved.
7 LUAN VAN CHAT LUONG download : add luanvanchat@agmail.com CHAPTER 1: COMPANY INTRODUCTION 1. General information about Vietinbank – X branch Vietnam Joint Stock Commercial Bank for Industry and Trade (Vietinbank) - X branch was established in the early days of Vietinbank in operation (26th March, 1988). The head office of the branch is located at district 8, Ho Chi Minh City and has transaction offices scattered in districts 8,10,11. The total number of current employees of the branch consists of 116 employees and has 15 departments.
Moreover, the branch provides all the products that Vietinbank has with the diversity and outstanding competitiveness compared to other banks in the same area: Savings deposits, deposits flexible accumulation, lending to large enterprises, small and medium enterprises, small households, super-large enterprises, card products, etc. The branch does not contribute greatly to the development of Vietinbank, but also help to building a local economy to develop and actively support individuals and organizations in the area with conditions to build families and develop business activities. Since its establishment, the branch always strives to complete all tasks assigned by Vietinbank excellently. Particularly in 2018, due to the increase in bad debt, business efficiency brought quite limited and only completed the tasks.
Over 30 years of operation, the total deposits at the end of the period at 31st December, 2018 is VND 5,907 billion, accounting for 2% of the total deposit in the Ho Chi Minh city area and the total outstanding loans are VND 3,598 billion, accounting for 1% of the region's total outstanding loans with the total profit achieved after setting up the risk provision to the end of February, 2019 is VND 16,839 million. 8 LUAN VAN CHAT LUONG download : add luanvanchat@agmail.com Director Vice presidents Enterprise Retail Accounting Transaction Monetary Synthetic and customer customer department marketing offices treasury department department departme department nt Transaction office Transaction -Binh Dien office - Hung Phu Transaction office Transaction office -Pham Hung - Xom Cui Transaction office Transaction office -Lakai -Rach Ong Transaction office Transaction office -Binh Dang -Minh Phung Diagram 1: Organization of Operation of X branch. Enterprise Customer Department The enterprise customer department is one of the key departments of X branch in generating revenue and profit. The department currently has 17 employees including 2 management leaders, 13 officers in charge of small and medium enterprises, 1 officer in charge of large enterprises and 1 trade finance officer.
The 9 LUAN VAN CHAT LUONG download : add luanvanchat@agmail.com main activity of the department is lending and raising deposit from corporate customers, cross-selling other products. Total outstanding loans of this department at 31st December, 2018 were VND 2,509 billion and the total deposit was VND 1,059 billion. 10 LUAN VAN CHAT LUONG download : add luanvanchat@agmail.com CHAPTER 2: SYMPTOMS 2. High turnover rate Based on the working time to classify, the workforce in the department is divided into 3 different types.
Firstly, people with working experience from 3 years or more, including 6 people, accounting for 35.3% of the total number of employees in this department. Secondly, people with experience from 1 to 3 years, including 4 people, accounting for 23.5% of the total workforce. The rest are employees with less than one - year experience. This is the segment that accounts for the highest proportion of this department with 7 people, accounting for 41.2% of the employees in this department.
Figure 1: Human Resource Structure According to Work Experience of Enterprise Customer Department in 2018 The chart is below the description of the quitting work rate in the corporate customer department from year 2016 to 2018. Accordingly, it shows that the rate of this department was increasing: it was 16,7% in year 2016, year 2017 was 21. And in 2018, the ratio of this department (35,3%) was higher than other departments in X branch. 11 LUAN VAN CHAT LUONG download : add luanvanchat@agmail.com Figure 2: Turnover Rate from 2016-2018 in X Branch’s Enterprise Department 2.
Low sale Sales of loans and deposits are the two main criteria that the enterprise customer department need to implement. However, the performance in 2018 of this department is quite low compared to the yearly plan and Ho Chi Minh City area. Deposit mobilization activity Total depositsof the enterprise customer department at 31/21/2018 was VND 1,059 billion, accounting for 17% of X branch’s total deposits and only reached 56.1% of year 2018’s plan. The implementation ratio was quite low compared to the implementation rate of the retail department (VND 4,204 billion, reaching 97% of year plan) and X branch's implementation rate (88.
12 LUAN VAN CHAT LUONG download : add luanvanchat@agmail.com Unit: VND billion. Figure 3: Total Deposits of X Branch and Enterprise Customer Department in 2018 13 LUAN VAN CHAT LUONG download : add luanvanchat@agmail.com Figure 4: The Rate of Implementing Deposit Mobilization Plan in 2018 of X Branch and Enterprise Customer Department Compared to the average productivity of deposit implementation, the enterprise customer department at X branch only reached VND 61 billion/employee. Meanwhile, this index of the corporate customer department at HCM region was 149 billion VND/employee. Unit: VND billion/employee.
Figure 5: The Average Productivity of Deposit Mobilizing Implementation of The Enterprise Customer department in X Branch and HCM City Region 2. Credit activity At the end of 2018, the department achieved VND 2.509 billion, accounting for 64.7% of the outstanding loan of X branch and achieving 98.8% of business plan. Compared to the retail department (104.8%), the rate of enterprise customer department was still lower. In addition, the implementation of the credit balance of this department had also tended to decrease: VND 2,586 billion in March, 2018 and VND 2,509 billion in December, 2018.