UNIVERSITY OF ECONOMICS HO CHI MINH CITY International School of Business ---------------------------------------- NGUYEN TRAN NGOC ANH THE ONGOING DECREASE OF JOB SATISFACTION AMONGST THE CORPORATE CREDIT OFFICERS IN BANK FOR INVESTMENT AND DEVELOPMENT OF VIETNAM JSC – HO CHI MINH CITY BRANCH: CAUSES, IMPACTS, AND SOLUTIONS MASTER OF BUSINESS ADMINISTRATION Ho Chi Minh City – Year 2018 TIEU LUAN MOI download : skknchat@gmail.com UNIVERSITY OF ECONOMICS HO CHI MINH CITY International School of Business ---------------------------------------- NGUYEN TRAN NGOC ANH THE ONGOING DECREASE OF JOB SATISFACTION AMONGST THE CORPORATE CREDIT OFFICERS IN BANK FOR INVESTMENT AND DEVELOPMENT OF VIETNAM JSC – HO CHI MINH CITY BRANCH: CAUSES, IMPACTS, AND SOLUTIONS MASTER OF BUSINESS ADMINISTRATION SUPERVISOR: LE THI THANH XUAN Ho Chi Minh City – Year 2018 TIEU LUAN MOI download : skknchat@gmail.com Executive summary Nowadays, in the fourth industrial revolution (Industry 4.0), although there are an increasing number of professional fields gradually replaced by technology (i. banking, production, transportation, etc.), the intellectual capital of human resource is still considered as the indispensable asset of all organizations in operating and maintaining organizations’ operations. Therefore, to build and maintain the effective human resource as a competitive advantage requires the management to put forward suitable strategies in which creating a more convenient work place is one of prerequisites. The failure of the managers on understanding and adjusting appropriately could gradually lead to the decrease of job satisfactions.
More concernedly, the low levels of job satisfactions are supposed to provoke other severe consequences such as the increase levels of burnout, the high turnover rate, the smoulder deterioration of employee involvement and organizational commitment, and the decline of organizational outcomes. Indeed, from Bank for Investment and Development of Vietnam JSC – Ho Chi Minh City Branch (hereinafter called BIDV.HCMC) perspectives, as a matter of fact, there stand an increasingly high turnover rate amongst the corporate credit officers and the decreasing business outcomes. Although there are a variety of internal and external causes that are to blame for these results, it is popularly believed that the decreasingly low level of job satisfaction is probably the main internal underlying cause. Therefore, the thesis first aims to identify the underlying causes of low satisfaction amongst the corporate credit officers at BIDV.
According to several deeply interviews derived from the current and former employees, the findings of the thesis point out that the uncertainty and power distance appear to be the main causes that lead to an emerge in the turnover intention. The thesis will then discuss some feasible alternative solutions regarding to the improvement of some management skills and the promotion of a more democracy working environment to incline the level of satisfaction and relieve the turnover intention amongst the BIDV. 1 TIEU LUAN MOI download : skknchat@gmail.com Acknowledgements I would like to acknowledge all who supported me during my studies without whom I would not be where I am today. I would especially like to thank my supervisor – Professor Le Thi Thanh Xuan for all her advice and guidance, without her invaluable helps this thesis could not have been possible.
I also would like to show my gratitude to my colleagues at work and classmates at ISB for their constant supports and motivations. I also send my sincere thankfulness to my parents and friends for their support and encouragement. 2 TIEU LUAN MOI download : skknchat@gmail.com Table of contents Executive summary .1 List of figures .4 List of tables. The branch’s structure and general goals.
The classification of initial causes leading to the decrease of job satisfaction. The theoretical initial cause and effect map. The factual cause and effect map. The literatures for the elements affecting to the job satisfaction and the connections of these literatures with the BIDV.
Physical working conditions. Human resource element. Work – life balance. Time – based conflict.
Strain – based conflict. The first alternative solution: training the management skills for the managers at all levels. The second alternative solution: the team – building/extracurricular activities. The third alternative solution: developing a democracy working environment.
Organization of actions .50 IN-DEPTH INTERVIEW.59 3 TIEU LUAN MOI download : skknchat@gmail.com List of figures Figure 1: BIDV.HCMC organizational structure Figure 2: The conceptual cause – effect model of the thesis Figure 3: The initial cause – effect map Figure 4: The general process of promotion in BIDV.HCMC Figure 5: The cause and effect map Figure 6: The final cause and effect map 4 TIEU LUAN MOI download : skknchat@gmail.com List of tables Table 1: The size of debt and deposit from 2014 to 2016 Table 2: The income of credit, deposit and other services from 2014 – 2016 Table 3: The total number of employee at all levels in BIDV.HCMC in 2018 Table 4: The income of debt, deposit and other services of BIDV.HCM by category of CCM and ICM departments from 2014 to 2016 (BIL. VND) Table 5: The growth of net income of loan, deposit and other services classified by departments from 2014 to 2016 Table 6: The market share of credits amongst banks in 30/6/2018 Table 7: The growth rate of credits amongst the selected banks in 30/6/2018 Table 8: The development of BIDV branches in the period of 2010 – 2017 Table 9: The number of BIDV.HCMC officers leaving job in 2014 – 2017 Table 10: The number of staff leaving their CCM duties from 2014 – 2017 Table 11: A variety of reasons acquired through the interviews Table 12: The average income per head of several surveyed banks in 2016 – 2017 Table 13: The average salaries of some positions at BIDV.HCMC in 2018 Table 14: The costs for private courses of training in leadership skills Table 15: The cost of holding several team – building/extracurricular activities Table 16: The cost of developing a democracy working environment Table 17: An action plan timeline which consumes 12 months from December 2018 to December 2019 5 TIEU LUAN MOI download : skknchat@gmail. Company Background Bank for Investment and Development of Vietnam JSC – Ho Chi Minh City Branch (hereinafter called “BIDV.HCMC”), founded in 1976, is one of the longest established branches of BIDV. Over 40 years of development, BIDV.HCMC nowadays becomes one of the largest units of BIDV with the total asset of approximately VND 20,000 billion and contributes roughly 10% to the general profit after tax of BIDV (Source: the financial statements of BIDV in 2017).
The market network of BIDV.HCMC mainly concentrates on individual customers and a number of large corporate customers specializing in construction, high technology industries, building materials, agriculture, commerce etc. Moreover, in the field of human resources development, BIDV Head office considers BIDV.HCMC as an ideal place to train and educate many leadership generations of BIDV at all levels. The following tables illustrate some typical acquired goals in business operations in 2014 – 2016: (VND Billion) Table 1: The size of debt and deposit from 2014 to 2016 SIZE 2014 2015 2016 2015/2014 2016/2015 2016/2014 DEBT BALANCE (BIL. VND) 13,943 16,542 19,054 19% 15% 37% DEPOSIT BALANCE (BIL.
VND) 17,856 23,536 22,937 32% -3% 28% Table 2: The income of credit, deposit and other services from 2014 – 2016 INCOME 2014 2015 2016 2015/2014 2016/2015 2016/2014 DEPOSIT (BIL. VND) 277 349 336 26% -4% 21% CREDIT (BIL. VND) 282 264 231 -6% -13% -18% OTHER SERVICES (BIL. VND) 165 164 164 0% 0% 0% TOTAL 725 777 731 7% -6% 1% (Source: Financing – Planning Department) Due to the broadly domestic and international business networks and the quality management systems reviewed periodically by the International Organization for Standardization (ISO 9001: 2015), BIDV.HCMC is one of the experimental branches to be selected for applying a number of international standards (i.) and testing banking products before launching into the entire system.HCMC is selected as an important payment intermediary of many domestic and international organizations (i.
Foreign Direct Investment, etc. 6 TIEU LUAN MOI download : skknchat@gmail. The branch’s structure and general goals Figure 1: BIDV.HCMC organizational structure Board of Directors Internal Risk Customer Transaction Operation management management management offices Financing and Risk Customer Corporate planning management Service banking Individual Organization Vault Service banking Human Credit Resources Administration (Source: Financing– Planning Department) In accordance with the BIDV policy of standard organizational model in branch, the organizational structure of BIDV.HCMC includes Board of Directors and five main divisions of business operations: Customer Management including Departments of corporate customer management and individual customer management (hereinafter called CCM and ICM), Risk Management (Department of Risk Management), Operation (Department of Credit Administration, Department of Customer Service and Department of Vault Service), Internal Management (Department of financing and planning, Organization Department, and Human Resources Department) and the subsidiary units (or Transaction Offices, in other words). The following table illustrates the current total number of employee at all levels in BIDV.HCMC: Table 3: The total number of employee at all levels in BIDV.HCMC in 2018 Divisions Department Number Percentage Board of Director 6 2% Internal management Financing and Accounting 15 6% Organization 15 6% Human resources 4 2% Risk management Risk management 13 5% Operation Customer service 30 12% Vault Service 12 5% Credit Administration 16 6% Customer Management Corporate customer 49 20% Individual customer 39 16% 7 TIEU LUAN MOI download : skknchat@gmail.com Divisions Department Number Percentage Transaction offices 48 19% Total 247 100% Source: Department of human resource management According to the general goals of BIDV in 2017 – 2020 including maintaining the top position in market share, scale, and the ability of regulating the domestic financial market, the entire BIDV system in general and BIDV.HCMC in particular mainly concentrate on the traditional banking areas including credit, guarantee issuance, deposit, international payment, trade finance, and other banking products (i.
internet banking, card products, etc. In other words, it is obvious that the traditional banking field (i. credit, guarantee issuance, etc.) is still in the highest priority of BIDV in 2017 – 2020. For example, according to the speech of Mr.
Van Dinh Hai – Director of BIDV.HCMC – in Corporate Banking Meeting in March, 2017, he stated that: “Even though the development of retail banking and other related products will be the trend of modern banking in the future, the contribution of corporate banking still plays an important role of our current performance. We have already attracted a number of large and SME (small and medium enterprise) corporate customers and these customer resources are our competitive advantage. Most of our income comes from them, about 80%, thus, maintaining the group of customers is still necessary for our performance in long term”. This shows that corporate customer resources have the most significant impact to BIDV.HCMC performance and the labour force in this front – office division plays a key role in the business operations.
Problem context In fact, the CCM departments have three main responsibilities of: developing and maintaining customer relationships, (ii) appraising and submitting to the higher levels having jurisdiction over all credit proposals, and (iii) collaborating to other departments to develop and retain the business operations in BIDV. Due to being a key role in income – generating activities, the CCM departments are allocated the largest number of employees – accounting for approximately 20 percent of the entire branch staff. Moreover, due to the credit activities regarding a great deal of internal and external issues (i. laws, finance, communication, business characteristics 8 TIEU LUAN MOI download : skknchat@gmail.com of various customers, business strategies of BIDV, internal rules and procedures, etc.
Therefore, in spite of the offered competitive remuneration, to be in charge of a great deal of complex tasks in customer management division requires the employees at all levels to be skilful, well – regulated, and be able to lifelong learning. As commented above, it is undeniable that the CCM departments play a pivotal role in running the branch’s business operations. Particularly, the CCM departments contribute approximately 76 percent of the entire branch income in 2016 (see table 4).