UNIVERSITY OF ECONOMICS HO CHI MINH CITY International School of Business NGUYEN THI HONG LOAN SOLUTIONS TO IMPROVE STAFF BEHAVIOR – CASE IN AGRIBANK SONG THAN MASTER OF BUSINESS ADMINISTRATION SUPERVISOR: DR. LE THI THANH XUAN Ho Chi Minh City – Year 2020 LUAN VAN CHAT LUONG download : add luanvanchat@agmail.com Contents List of Figures. 1 List of Tables .1 Viet Nam Bank for Agriculture and Rural Development .2 Vision and mission of Agribank Viet Nam .2 Agribank Song Than Industrial Zone branch .2 Organization chart of Agribank Song Than .3 Vision and mission of Agribank Song Than .2 Slow processing time (perceived transaction speed PTS) .3 Poor staff behavior.2 Poor perceived electronic service quality.1 Inconvenience website design .2 Slow speed of download the site content.3 Poor customer relationship .4 Poor corporate image .4 Main problem consequences .1 Lacking working capability.1 Lacking of communication skill .2 Lacking of problem-solving skill. 24 LUAN VAN CHAT LUONG download : add luanvanchat@agmail.2 Demotivation of working .1 Lacking of promotion opportunity .2 Unfair compensation and benefits .1 The first alternative solution: .2 The second alternative solution: Training for managing heavy workload effectively .3 The third alternative solution: Restructuring the front-line service staff .5 Action plan implementation.
41 LUAN VAN CHAT LUONG download : add luanvanchat@agmail.com SOLUTIONS TO IMPROVE STAFF BEHAVIOR – CASE IN AGRIBANK SONG THAN 1 List of Figures Figure 1. Establishment and development of Agribank Viet Nam (Source: Financial Institutes Department of Agribank Viet Nam) Figure 2. Organization chart of Agribank Song Than (Source: Internal data from Human Resource Department) Figure 3. Initial diagram of symptoms and potential problems (Source: by the researcher) Figure 4.
Final diagram of the symptom and central problem (Source: by the researcher) Figure 5. Initial cause and effect map (Source: by the researcher) Figure 6. Final cause and effect map (Source: by the researcher) Figure 7. Action plan implementation for staffing structuring in Agribank Song Than (Source: by the researcher) List of Tables Table 1.
Structure of Functional Department (Source: Internal data from Human Resource Department) Table 2. Net profit from 20 VIP customers of Agribank Song Than branch (Source: Internal data from Planning and Capital Department) Table 3. Characteristics and statistic number of 5-VIPS transactions (Source: Internal data from Planning and Capital Department) Table 4. Statistic numbers about factors affecting on staff performance in Agribank Song Than case in 2019 (Source: from the researcher) Table 5.
The demand and shortage of workforce in Agribank Song Than (Source: by the Human Resource Department of Agribank Song Than) Table 6. The workforce demands of departments in Agribank Song Than (Source: by the Human Resource Department of Agribank Song Than) Table 7. Estimated time for the recruitment solution (Source: Human Resource Department of Agribank Song Than Branch) Table 8. Estimated costs for the recruitment solution (Source: Human resource department of Agribank Song Than Branch) Table 9.
Estimated costs for the training course (Source: Human resource department of Agribank Song Than Branch) Table 10. Estimated time and costs for the restructuring solution (Source: Human resource department of Agribank Song Than Branch) LUAN VAN CHAT LUONG download : add luanvanchat@agmail.com SOLUTIONS TO IMPROVE STAFF BEHAVIOR – CASE IN AGRIBANK SONG THAN 2 Abbreviations 1. 5-VIPS: Five-very important customers 2. ABA: Asian Bankers Association 3.
Agribank Song Than: Viet Nam Bank for Agricultural and Rural Development – Song Than Industrial Zone Branch 4. Agribank Viet Nam: Viet Nam Bank for Agricultural and Rural Development 5. APRACA: Asia Pacific Rural and Agricultural Credit Association 6. ATMs: Automated Teller Machines 7.
CICA: Confederation Internationale de Credit Agricole 8. E-banking: Electronic banking 9. EDC: Electronic Data Capture 10. E-service: Electronic Service 11.
FDI: Foreign Direct Investment 12. IT: Intellectual Technology 13. KPIs: Key Performance Indicators 14. POS: Point of Sale 15.
PTS: Perceived Transaction Speed 16. SOEs: State-Owned Enterprises 17. SWIFT: Society for Worldwide Interbank Financial Telecommunication 18. VIP: Very Important Person 19.
WSBI: World Savings and Retail Banks Institute LUAN VAN CHAT LUONG download : add luanvanchat@agmail.com SOLUTIONS TO IMPROVE STAFF BEHAVIOR – CASE IN AGRIBANK SONG THAN 3 Executive Summary The purpose of this paper is figuring out the solution to improve the performance of the employees in Agribank Song Than. From the symptom – decreased profit of five VIP customers in Agribank Song Than in 2019, through theories and the in-depth interviews with people of the bank and involved customers, the writer explores that the central problem is poor behavior of the staff and the main cause leading to this problem is over workload. Moreover, the employee behavior plays an important role in customer’s satisfaction specialized in a service company as Agribank Song Than. Therefore, it is necessary to find the resolution to solve the heavy workload for the employees.
Every organization will have their own strategies to increase the staff behavior. The companies often focus on training or the compensation and benefits, and fail to mention the restructuring organization. Restructuring is not a simple work because it can be received negative responses from the employees if it is not satisfying the staff’s demands. From figuring out the real cause “over workload” leading to the decreased profits of five VIP customers, the thesis finds the best solution for this case in Agribank Song Than is reorganization which should be executed annually with a detailed action plan to enhance the employee behavior and working motivation.
LUAN VAN CHAT LUONG download : add luanvanchat@agmail.com SOLUTIONS TO IMPROVE STAFF BEHAVIOR – CASE IN AGRIBANK SONG THAN 4 1.1 Viet Nam Bank for Agriculture and Rural Development 1.1 Overview The Council of Ministers of Vietnam established Vietnam Bank for Agriculture and Rural Development (also known as Agribank) on 26th March 1988. It serves the purpose of stimulating the development in the rural and agricultural sectors. On 14th November 1990, the prime minister decided to change its name to Vietnam Bank for Agriculture. After that, on 15th November 1996, Vietnam Bank for Agriculture and Rural Development was again the official name of this organization.
Agribank is the largest bank in Vietnam by most measures: capital, total assets, staff, operating network, and clients. Its total assets as of 30th June 2019 was VND 1,359,012 billion. There are 2232 branches in operation domestically with nearly 40. Establishment and development of Agribank Viet Nam (Source: Financial Institutes Department of Agribank Viet Nam) General Director: Mr.
Tiet Van Thanh Head office’s location: Number 2, Lang Ha Street, Ba Dinh District, Ha Noi City, Viet Nam. Operation network Agribank has largest operational network in Vietnam with 2,232 branches and transaction offices; one branch in Cambodia, three representative offices, five subsidiaries, 68 banks on wheels (1). Auto-banking system of 2,885 ATMs including 46 auto banks, 21,850 POSs; the number of cards issued of 25,701,339 (1). Labor force of nearly 40,000 professional and loyal employees with good command of the local market.(1) Agribank has correspondent relationships with 738 foreign banks in 86 countries.(1) LUAN VAN CHAT LUONG download : add luanvanchat@agmail.com SOLUTIONS TO IMPROVE STAFF BEHAVIOR – CASE IN AGRIBANK SONG THAN 5 Business performance as of June 30th, 2019 (1) Total Assets: VND 1,359,012 billion (6% higher than that at beginning of the year) Mobilization from market 1: VND 1,254,231 billion (5.7% higher than that at beginning of the year).
Mobilization from public: VND 1,010,097 billion (approximately 80.5% of total mobilization) Outstanding loans: VND 1,054,047 billion (4.9% higher than that at beginning of the year) Profit before tax: VND 7,082 billion (meeting 70.8% target of the year) Service fee income: VND 3,162 billion (meeting 51.1% target of the year) Owner’s Equity: VND 62,717 billion Total Capital: VND 69,930.5 billion Role in agriculture and rural development (1) Proportion of agriculture loans to total outstanding loans of 67.8%, accounting for 50% of the total investment of banking sector in this industry. Providing many loan packets and credit programs for agriculture and rural areas. Cooperating with the largest agricultural machinery manufacturers in the world to provide credit support for sale of agricultural machines and equipment to develop high-tech agriculture, large sample fields. International cooperation (1) Being active Member of: - Asia Pacific Rural and Agricultural Credit Association (APRACA); - World Savings and Retail Banks Institute (WSBI); - Confederation Internationale de Credit Agricole (CICA); - Asian Bankers Association (ABA)… Receiving and implementing foreign credit projects through the Government; being in partnership with international donors in carrying out the projects of socio-economic development in Vietnam.
Social responsibility Agribank always focuses on the responsibility towards the social community through social and charity operations that aim at poverty elimination, rural transportation development, education and healthcare improvement, calamity and disease relief, climate change prevention, home building for wartime heroes, sea and islands safeguard support. Products and services (1) Agribank has more than 200 products and services classified into groups: Savings, Loan, Domestic and International Payment, Foreign Exchange, Investment, Domestic and International Card, LUAN VAN CHAT LUONG download : add luanvanchat@agmail.com SOLUTIONS TO IMPROVE STAFF BEHAVIOR – CASE IN AGRIBANK SONG THAN 6 Electronic Banking, Associated products and services which meet the needs of individual and corporate customers. Modern and diversified distribution network includes branches, transaction offices and banks on wheels nationwide, correspondent banks in many countries in the world, ATM, EDC/POS network; via Mobile, Internet Banking and other customer connection channels Products and services for individual customers (1) Saving deposits (in local and foreign currencies); Payment accounts (used for all payment channels and payment services of Agribank, issuance of ATM cards, payment of electricity bills, water bills, school fees, payments to the State budget, etc.); Issuance of valuable papers; Loan provision (lending, guarantee, valuable paper discount); Domestic payments (remittance, payment of bills, cash service, cheques, receives from the State budget); International payments (inward/outward international payments, overseas remittance, border payments); Card services; E-banking services: Mobile banking, Agribank E-Mobile banking, E-Wallet, Internet banking; Cash management; Linkage service (insurance, collection of air tickets). Products and services for corporate customers (1) Mobilization (Payment deposit; term deposit; online deposit); Loan provision (lending, guarantee, valuable paper discount, factoring); Domestic payments (remittance, bill payment, cash service, cheques, State budget collection); International payments (inward/outward international remittance, L/C-related services, collection, border payments); Foreign exchange; Card services (debit cards, credit cards, link cards, non-physical cards); E-banking services: Mobile banking, Agribank E-Mobile banking, Internet banking; Cash management; Linkage service (insurance, collection of air tickets).
Products and services for financial institutions (1) Money market and foreign exchange; LUAN VAN CHAT LUONG download : add luanvanchat@agmail.com SOLUTIONS TO IMPROVE STAFF BEHAVIOR – CASE IN AGRIBANK SONG THAN 7 Account service, bilateral payment connection; Cooperation in cash management (collect and pay out at customer’s location); Cooperation in overseas remittance; Cooperation in international payments; Cooperation in border payments; Syndicated loans.2 Vision and mission of Agribank Viet Nam Vision “To be the modern and the leading bank in Vietnam with “Safe, Effective and Sustainable” development of high competitiveness and full international economic integration.” (1) Mission “To be the leading State-owned commercial bank in Vietnam which plays a dominant and key role in the national economy, particularly in the investment in agriculture sector, rural areas and farmers, contributing to socio-economic development of the country.2 Agribank Song Than Industrial Zone branch 1.1 Overview Agribank Song Than Industrial Zone branch was founded on 05th April 2000, upgraded into a grade 1-branch and managed directly by Agribank Viet Nam at the end of year 2007. Its head office is based in Number 27, Thong Nhat Boulevard, Song Than 2 Industrial Zone, Di An District, Binh Duong Province, Viet Nam. Besides the headquarter, it has two grade 2-branches and five transaction rooms located in Di An and Thuan An district with 185 employees. The products and services of Agribank Song Than include all the products and services of Agribank Viet Nam for individual customers and corporate customers (2).
Pham Dang Bo Business performance of Agribank Song Than as of December 30 th, 2019 (2) Total Assets: VND 12,378 billion Mobilization: VND 10,585 billion Outstanding loans to the economy: VND 7,596 billion Profit before tax: VND 125.