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.
iv TABLE OF CONTENT. v LIST OF ABBREVIATION. The objectives of study. Scope of research.
Structure of the thesis. 3 CHAPTER II - LITERATURE REVIEW. Definition of culture and corporate culture. Definition of culture.
Definition of corporate culture. Corporate culture forming factors. Key business processes. Employees and other tangible assets.
The social system. The external environment. The impact of corporate culture on the development of a corporation. Creating the unique manner and attitude for each corporate.
Creating the centripetal force for the whole company. Fostering innovation and invention. Creating the competitive advantage of the corporation. Level of corporate culture.
Espoused beliefs and values. Basic underlying assumptions. The role of leader – key factor creating the corporate culture of organization. 23 CHAPTER III - RESEARCH METHOLOGY.
27 CHAPTER IV - RESEARCH ANALYSIS AND RECOMMENDATION. An overview of Vietinbank, Hoan Kiem Branch. Introduction of Vietinbank. Overview of Vietinbank, Hoan Kiem Branch.
An overview of VietinBank’s corporate culture. Levels and manifestations of corporate culture in VietinBank, Hoan Kiem Branch. Artifact level and its manifestations. Office’s architecture and decoration.
Brand name, logo, and slogan. 36 Source: VietinBank’s website, 2009. Language and style. Behavior within the branch.
Behavior toward customers. Espoused beliefs and values. The basic underlying assumption. Some suggestions to VietinBank in general.
Identifying the right way of development. Improving the influence of core values inside and outside the whole system. Some suggestions to VietinBank, Hoan Kiem Branch. Leadership style as the decisive element in building and developing corporate culture.
Building the specific value system. Changing the physical working environment. Building up a close relationship between customers and branch. “Customer is King”.
PR and face-to-face communication with customers. Learning from other organizations. Limitation of research. 66 viii LIST OF FIGURES AND IMAGES Figures Title Page Chapter 2 Figure 2.
Maslow’s hierarchy of needs 13 Figure 2. Levels of corporate culture 15 Figure 2. Corporate culture – iceberg’s principle 16 Chapter 4 Figure 4. Organizational structure of VietinBank, Hoan Kiem Branch 31 Figure 4.
VietinBank’s logo 37 Image 4. “Customer is King” 59 ____________________________________________________________________ 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. International Labor Organization I. Information Technology –––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––– x CHAPTER I - INTRODUCTION 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. 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. 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. 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. 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.
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.
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. 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.
Definition of culture and corporate culture 2. 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.