the impact of corporate cultural in vietnamese companies

8/13/2019 THE IMPACT OF CORPORATE CULTURAL IN VIETNAMESE COMPANIES

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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


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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:


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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


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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.


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TABLE OF CONTENTPage

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


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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 leaderkey 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 VietinBanks corporate culture............................................. 32


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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. Offices architecture and decoration............................................................. 34

4.4.1.2. Brand name, logo, and slogan ....................................................................... 36

Source: VietinBanks 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 VCONCLUSION............................................................................. 64


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5.1. Conclusion .......................................................................................................... 64

5.2. Limitation of research....................................................................................... 65

REFERENCES ......................................................................................................... 66


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LIST OF FIGURES AND IMAGES

Figures Title Page

Chapter 2

Figure 2.1. Maslows hierarchy of needs 13

Figure 2.2. Levels of corporate culture 15

Figure 2.3. Corporate cultureicebergs principle 16

Chapter 4

Figure 4.1. Organizational structure of VietinBank, Hoan Kiem Branch 31

Figure 4.2. VietinBanks logo 37

Image 4.1. Customer is King 59

____________________________________________________________________


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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


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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


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chose the topic The impact ofCorporate 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 andimprove 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?


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ii. What are the manifestations of corporate culture in VietinBank, HoanKiem Branch?

iii. What should VietinBank, Hoan Kiem Branch do to improve itscorporate 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.


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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.


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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 cultures 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 culturehas 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


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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


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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, 6thedition 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 todays 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/organizationalculture 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


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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.


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2.3. Corporate culture forming factors

Although each enterprises 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 corporations 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 corporations culture and

performance.


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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 corporations 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 enterprises 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.


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2.3.7. The external environment

An enterprises external environment includes forces outside its boundaries

that directly and indirectly interact with it (Bittel, 1989). These forces might be

suppliers, markets, competitors, regulators, organized labor and other elements

outside an enterprise. These forces affect the goals, resources and processes of an

enterprise. Obviously these elements shape the enterprises culture in many ways.

For instance, the government regulations can have a profound effect on corporate

culture as they normally protect the enterprise from competition.

2.4. The impact of corporate culture on the development of a corporation

2.4.1. Creating the unique manner and attitude for each corporate

Corporate culture is contributed by many components and elements such as

business philosophy, customs, rites, habits, trains, or even the legend of the founder,

etc. All of these elements together contribute the style of an enterprise and help to

distinguish this with others. This style or manner and attitude plays the role like air

and water, having a huge effect on the daily operation of enterprises.

It is not difficult to recognize the manner and attitude of a successful

corporation. This style makes the strong impression on the outsiders and is the pride

of the corporations members. Lets take an example of the Walt Disney House.

When entering this corporation, people can feel some very common values through

the uniform, some conversational language used by Walt Disneys employees (such

as a nice Mickey means You are doing well), common behaviors (always smile

and polite with customers) and common feelings (very proud of doing for Walt

Disney).


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2.4.2. Creating the centripetal force for the whole company

A good corporate culture helps company attracting the talent and

strengthening employees loyalty.

A person works not for money but for other needs. The system of needs of

human, according to Maslow, 1943, is a triangle including five kinds of needs in

ascending order: basic needs, safety needs, psychological needs, self actualization

and peak experiences. These needs are objective different tones of each individual.

Those needs create forces which impulse people to do but are not necessarily to be

the ideals of their life.

From the model of A. Maslow, it can be seen that it is wrong if a company

thinks that only high salary can help to attract and keep talent. An employee will be

loyal and want to have a strong attachment to a company only when he/she has

interest in working, feels the nicely air and has the chance to assert himself. In a

quality corporate culture, all members have a clear awareness of their roles within

overall, they work for common objectives.


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F igur e 2.1 -Maslows hierarchy of needs

Common example Organizational example

Source: Duong Thi Lieu, 2008

2.4.3. Fostering innovation and invention

Within a strong corporate culture, the high self-reliance will be emerged.

Employees are encouraged to be apart and raise their own ideas. This encouragement

helps employees proving their own creative abilities, as a base for R&D process of a

company. On the other hand, the success of workers will create a diving force which

helps to stick them with company for a longer time.

2.4.4. Creating the competitive advantage of the corporation

The competitiveness of an enterprise can be adjusted in four aspects:

flexibility (the ability of satisfying different needs of customer), the quality of

goods/services (technological characteristic, reliability, industrial design, etc.), the

Achievemen

Statu

Friendship

Stability

Food

Working

Challenges

Title

Colleges

Allowance

Base wage


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responsible speed in the market (the period of time from ordering to supplying, speed

of developing a new product, etc.), cost (lower than competitors).

Enterprises who want to gain these advantages have to get three important

resources: human resources, capital and technology. The human resources involve

directly adjusting, choosing and developing competitive advantages process of

enterprise. Hence, this resource has the key meaning to the ability of gaining these

advantages. Meanwhile, corporate culture has the first direct effect on each member

of an enterprise, which plays an important role in proving human resource. So,

indirectly, corporate culture can affect the competitive advantages of an enterprise in

the market.

2.4.5. Attracting customers

Thanks to the manifestation of corporate culture in each level, corporate

culture helps to create the unique organizational character. This also helps to improve

the good image of company with customers, helps customers distinguish each

company and establishes the customers loyal with companys goods and services.

2.5. Level of corporate culture

In general, corporate culture can be divided into two layers: surface layer and

core layer. Surface layer includes such expressions as dress code, work environment,

benefits, conversation, relationship, etc. The core layer consists of something cannot

see or hear like values, invisible rules, attitude, benefit, assumptions, etc. However,

according to Edgar H.Schein, a professor of organization research, in the book

Organizational culture and leadership, corporate culture has three layers or three


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levels. They are observable artifacts, espoused values and basic underlying

assumptions.

F igur e 2.2 - Levels of Corporate Cultu re

Source: Edgar H.Schein, 2004

If we regard corporate culture concept as a metaphor, three levels of

corporate culture can be described as an iceberg.

Artifacts

Visible organizational structures and processes (hard

to decipher)

Espoused Values

Strategies, goals, philosophies (espoused justifications)

Basic underlying assumptions

Unconscious, taken-for-granted beliefs, perceptions,

thoughts, and feeling (ultimate source of values andaction)


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F igur e 2.3-Corporate cultur e-icebergs principle

Source: Edgard H. Schein, 1999

Edgar H. Schein reveals that what we commonly call corporate culture

merely the tip of the iceberg, an iceberg that mangers ignore at the peril of their

companys future. Underneath lays the much-harder-to-grasp essence of the

company, the learned, shared, tacit assumptions on which people base their daily

behavior. In fact, only the floating part of an iceberg which accounts for about 10 to

20 percent of total weight can be seen. The other hidden part which accounts for

roughly 80 to 90 percent does decide the direction of an iceberg. Lets imagine that

the floating part is under the influence of the wind power while the hidden part is

under the influence of underground flow. Thus, icebergs direction will be under the

influence of underground flow regardless of wind power. Therefore, we can be

Artifacts

Espoused Values

Basic underlying

assumption


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clearly conscious of the importance of basic underlying assumptions to an enterprise.

Details of three levels will be described as follows.

2.5.1. Observable artifacts

At the surface of corporate culture is the level of artifacts. This level includes

all the phenomena that one sees, hears and feels when one encounters a new group

with an unfamiliar culture. Artifacts include the visible product of an organization,

such as the architecture of its physical of its environment, language, technology and

products, its artistic creations, its styles (clothing, manners of address, emotional

displays), myths and stories told about the organization, its publish of list of core

values, its observable rituals and ceremonies and so on.

The most important point to be made about this level of the culture is that it is

both easy to observe and very difficult to decipher. The Egyptians and the Mayans

both built highly visible pyramids, but the meaning of pyramids in each culture was

very different tombs in one, temples as well as tombs in the other. In other words,

observers can describe what they see and feel, but cannot reconstruct from that alone

what those things mean in the given group, or whether they even reflect important

underlying assumptions. On the other hand, one school of thought argues that ones

own response to physical artifacts such as buildings and office layouts can lead to the

identification of major images and root metaphors that reflect the deepest level of the

culture (Gagliardi, 1990). This kind of immediate insight would be especially

relevant if the organization is experiencing in the same larger culture as the

researcher. The problem is that symbols are ambiguous, and one can only test ones

insight into what something may mean if one has also experienced the culture at the

deeper levels of values and assumptions.


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Based on this foundation, the artifact can be divided into the following

categories:

Architecture, decoration, technology, product; Symbol, logo, brand name, slogan; Language and dress; Leadership style; Behavior within organization; Behavior toward customers; Ceremonies, stories of heroes, etc.

2.5.2. Espoused beliefs and values

The next level of corporate culture is about the values. Values define what an

enterprise needs to do, what is right or wrong. There are two kinds of values. The

first one is available values which exist objectively and unprompted takes shape in

corporation. The other one is values which managers expect the corporation to own

and develop step by step.

Espoused values are those principles or ideas the group articulates or

announces publicly as what stand for or what they are trying to achieve. Values here

include vision, mission, business philosophy and core values.

a. Vision

The first step when building objectives and priorities is to briefly identify what our

corporation will be in one point of future time, or in other words, to build vision.


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Vision is the future status that an organization strives for. Vision shows us

common purpose and united activities. Vision term refers to a spiritual picture, a

prospective of the organization future. This term also refers to some time limited, or

time horizon, in the short or middle run which normally is ten, twenty or fifty years

for an influential vision.

Expected vision should be a picture of where an enterprise will be in one

certain future day. It is a picture of what it takes to reach perfection, for instance, or

for the best production method, or even of same quality production method when

companys overall turnovers decrease to 10%.

It is necessary that corporation vision will be built first of all and informed to

every member. Enterprises departments will take step specify objectives, methods

and tools to achieve vision.

b. Mission

Mission explains why an enterprise exists including organization objectives,

general activities, to which it serves and by what method.

Function of mission is to find ways and stages to achieve stated vision. As

long as mission is identified, an enterprise can reach important goals as follows (1)

decide human resource power; (2) avoid conflict between pursuing goals; (3) set up

extensive border of responsibility and (4) support organization objectives.

It is essential that organizations mission is designed for one certain stage of

its life.

c. Business philosophy


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Business philosophy is philosophic thoughts reflecting the business reality by

experiencing, thinking and generalizing of business subjects and then used to instruct

business activities of an organization. Business philosophy of an organization

consists of three parts: mission and basic targets, operating method and specific

business activity.

The roles of business philosophy are:

The core of corporate culture, creates the firm development method forcorporate culture;

The oriental tool and base for strategic management; The medium for training, developing human resource and creating the

specific working style for company.

d. Core values

Organization core values are purified essence and are commonly recognized.

It has a great impact on individual norm, behavior, and attitude among company. It is

also the foundation of vision. Core values are similar to rulers of norms of behaviors.

Thanks to it, we are conscious of what consistent with companys mission and then

reach vision. Core values are those will never change no matter how tough a

company suffer, unless the enterprise goes bankruptcy or dissolution.

Upon visiting Vietnam on January 10th, 2005, Brian Bacon who is the

president of Oxford management Institute and former Chief Executive Officer (CEO)

of Australian Coca-cola told an excellent example of core values for corporations.

When taking a VND ten thousand paper-money in hand and ask, everybody will

immediately tell us its face value of ten thousand Vietnam dongs. When we rub it


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and ask, we will still receive the same answer. And even when we drop and beat it

and ask, the result is still ten thousand Vietnamese dongs (VNDs). It simply

represents unchangeable value of the paper-money, or core values of an enterprise, in

any circumstance.

Values can be core values when: (1) there is united belief in whole

organization; (2) it sets up norms and standard; (3) solid values to the very last thing;

(4) there are myths, rites or stories supporting existence.

2.5.3. Basic underlying assumptions

The deepest level of culture consists of shared assumptions that provide a

foundation for how people think about what happens in organizations. These

assumptions represent beliefs about reality and human natures that are taken for

granted and embedded in the way we understand and interpret daily life. Schein

contends that underlying assumptions grow out if values, until they become taken for

granted and drop out of awareness. Assumptions are the result of continually

validated and reinforce values, they guide groups behavior, perceptions, thoughts,

and feeling about a situation. They can deal with basic aspects of life through the

correct way for the individual and group to relate at each other; relative importance

of work, family, and self-development; the proper role of men and women; and the

nature of the family. Therefore, shared assumptions are the most difficulty to study

and to change because people may be even unaware of or unable to articulate the

assumptions forming their deepest level of culture.

The basic underlying assumptions of an organization are thoughts, beliefs,

awareness and emotion toward the internal and external environment. These are


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assumptions of human, quality, performing ability, customers, competitor and the

role of invention. The manifestation of underlying assumptions is expressed through

the conception of relationship between human and environment, conception of trust

and reality, conception of human nature, of human activity and the nature of human

relationship and the conception of time.

1. Conception of relationship between human and environment deals with thequestions: What is our relationship with the environment? Do members

believe they have the capacity to master the environment, are they supposed

to live in harmony with it, or do they think they are controlled by it?

2. Conception of trust and reality are about the way to reveal the truth. What isreal and how to determine the reality? Is truth revealed by external authority

figures, or is the accuracy of information determined by a process of personal

investigation and testing?

3. Conception of human nature give answers to such questions: defines what itmeans to be human and what human attributes are considered intrinsic or

ultimate. Is human nature good, evil, or neutral?

4. Conception of human activity can be divided into three approaches: (1) adoing orientation where people are basically active and evaluated according

to what they produce, (2) a being orientation where people are passive and

unable to alter existing circumstances, and (3) a becoming orientation

where people are continually developing and becoming an integrated whole.

5. Conception of human relationship: defines what is ultimately the right wayfor people to relate to each other, to distribute power and love? Is life

cooperative or competitive; individualistic, group-collaborative, or

communal? What is the appropriate psychological contract between


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employers and employees? Is authority ultimately based on traditional lineal

authority, moral consensus, law, or charisma? What are the basic assumptions

about how conflict should be resolved and how decisions should be made?

6. Conception of time: The shared assumptions that define the basic concept oftime in the group, how time is defined and measured, how many kinds of time

there are, and the importance of time in the culture.

2.6. The role of leader key factor creating the corporate culture of

organization

The leader is not the one who creates the values of corporate culture in an

organization but more important, he/she is the one who transmit, maintain and

change them into a guiding system to the whole company. It is important for

enterprises which want to succeed to have the sound system of principles. These

principles are the foundation for enterprises to set their line and actions. It is more

important that this system needs to create the loyalty, the attachment within the

organization and is absolutely followed. This requires the leader who creates the

values system to keep in close touch with employees and assist them and at the same

time, heighten these values.

Beside the role of shaping and managing corporate cultures values, the

leader has to change them according to the requirement of changing strategy in the

case culture does not support or even be against with a new strategy.

The new strategy is often dominated by market and competitors these

external elements which organization can not control. Meanwhile, culture is created

by the whole organization so changing culture to fit the strategy is more effective


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than changing strategy to fit culture. However, it takes time to erase all the existing

culture because it has had a long time to shape and develop. In particularly, this

change is really difficult with the founder. Although, when corporate culture is

suitable with the new strategy, it will bring much more achievements for

organization.

In general, if national culture tends to naturally affect the corporate culture,

the leader plays a very active role in creating process of it. This means, the leader

with his/her goal to help organization gain a good performance, by his/her managing

behavior, this contributes to set a unique style for an organization, that is corporate

culture.


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CHAPTER III - RESEARCH METHOLOGY

3.1. Overview

The purpose of this chapter is to measure the impact of corporate culture.

Research approach is defined by the use of data collection, and selecting samples.

3.2. Research methodology

The methodology uses in this research that is qualitative research.

Qualitative research is a type of scientific research. In general terms, scientific

research consists of an investigation that:

seeks answers to a question

systematically uses a predefined set of procedures to answer the question

collects evidence

produces findings that were not determined in advance

produces findings that are applicable beyond the immediate boundaries of the study

During the 1970s and 1980s, qualitative research began to be used in other

disciplines, and became a significant type of research in the field of education

studies, social work studies, and many other fields. The goal of qualitative research is

to gather a deep understanding of human behavior and the reasons that govern

behavior. Qualitative methods also are investigating why and how of decision

making. So the smaller samples are more focused than large samples.


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The advantage of qualitative research is its ability to provide complex textual

descriptions of how people experience a given research issue. It provides information

about the human side of an issue that is, the often contradictory behaviors,

beliefs, opinions, emotions, and relationships of individuals. When used along with

quantitative methods, qualitative research can help us to interpret and better

understand the complex reality of a given situation and the implications of

quantitative data. Qualitative methods are also effective in identifying intangible

factors, such as social norms, socioeconomic status, gender roles, ethnicity, and

religion, whose role in the research issue may not be readily apparent. Qualitative

research can help us to interpret and better understand the complex reality of a given

situation.

3.3. Data collection

This thesis is written based on both primary and secondary data. Most of the

materials are extracted from the relevant books, articles, and documents in both

English and Vietnamese. The data, concepts, theories are collected to analyze the

situation of VietinBank, Hoan Kiem Branch to answer these three sub questions.

The approach of qualitative research in this project is documentation, direct

observation and interview. Documentation is used as secondary source of

information in forms of books, articles and websites to collect information of theories

relevant for this thesis, background information about the organization and the

standards of its corporate culture. Direct observation is appropriate for collecting

data on naturally occurring behaviors in their usual contexts. For this study, direct

observation is the main primary method to help the writer collect the information of

corporate culture of the chosen objective. Beside, interview is optimal for collecting


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data on individuals personal histories, perspectives, and experiences, particularly

when sensitive topics are being explored. In this study, the interview provides the

added information for the research of the real situation and helps the writer to make

suitable recommendations.

3.4. Sampling

The sample population is the ViettinBank and its staffs. Currently, VietinBank

has 138 branches, 188 transaction offices, 258 points of sales and 191 savings

offices, 742 Automatic Telling Machines (ATMs), throughout 56 provinces and

cities, centered more in big cities such as Hanoi (12 branches and 02 transaction

centers), Ho Chi Minh City (17 branches and 01 transaction center), industrial zones,

trading and economic parks, densely-populated areas. However, due to the far

distance, and the time limitation, the author was able to conduct the study at one its

Branch: Hoan Kiem Branch. The author will make an observation of the entire

building of the company and interview 10 staff members (five veteran employees,

four young employees and one deputy manager of a transaction office) who are

randomly selected from different departments in the company to get information for

the thesis.


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CHAPTER IV- RESEARCH ANALYSIS AND RECOMMENDATION

4.1. Overview

This chapter includes four main parts: Part one is an overview of Vietinbank,

Hoan Kiem Branch. Part two is a brief view on of the corporate culture of

VietinBank in general. Part three is that concentrates on analyzing the manifestations

of corporate culture in VietinBank, Hoan Kiem Branch using the frame developed by

Edgar H.Schein. Part four provides some recommendations to further develop

corporate culture in Vietinbank, Hoan Kiem Branch. The main objective of this

chapter provides suggestions for further development of corporate culture in

VietinBank, Hoan Kiem Branch. At first, this chapter will give some suggestions to

VietinBank in general and then to VietinBank, Hoan Kiem Branch in particular.

Although there are many factors determining the development process of corporate

culture in an organization, with VietinBank, Hoan Kiem Branch, the author mainly

focuses on the leadership style, the values system and the relation with customers.

4.2. An overview of Vietinbank, Hoan Kiem Branch

4.2.1. Introduction of Vietinbank

Vietnam Joint Stock Commercial Bank for Industry and Trade (VietinBank)

was established in 1988 after being separated from the State Bank of Vietnam. It is

one of the four largest State-owned commercial banks of Vietnam, VietinBanks

total assets account for over 20 percent of the market share of the whole Vietnamese

banking system. The year 2009 marked a very important point in the development


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process of VietinBank. In June, 2009, VietinBank officially became a joint-venture

commercial bank. This brought about both new challenges and success for the Bank.

VietinBank has developed an operation network comprising of one head

office; three transaction centers; three subsidiaries, three administrative units, two

representative offices, 138 branches, 188 transaction offices, 258 points of sales and

191 savings offices, 742 Automatic Telling Machines (ATMs), throughout 56

provinces and cities, centered more in big cities such as Hanoi (12 branches and 02

transaction centers), Ho Chi Minh City (17 branches and 01 transaction center),

industrial zones, trading and economic parks, densely-populated areas. Vietinbanks

traditional services as well as other modern and valued added services have reached

nation-wide users. This has enabled Vietinbank to diversify its products suitable to

each segment of customers. Besides, it is diversified with three independent

accounting subsidiaries: VietinBank Leasing Company, VietinBank Securities

Company, Ltd., VietinBank Asset Management Company and two non-profit making

units: VietinBank Information Technology Center and VietinBank Training Center.

VietinBank is also the founder of some Financial Credit Institutions such as

Saigon Bank for Commerce and Industry; Indovina Bank (the first joint-venture bank

in Vietnam); Vietnam International Leasing Company VILC (the first financial

leasing company in Vietnam) and Vietinbank Insurance Company Ltd. This bank has

also being the official members of Vietnams Banker Association; Asian Bankers

Association; Society for Worldwide Interbank Financial Telecommunications

(SWIFT) and the Visa International Services Association.

The Bank has signed eight framework-credit Agreements with foreign

countries including Belgium, Germany, South Korea, Switzerland and established


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correspondent relationship with 600 large banks of 50 countries and territories all

over the world. And one more thing, this bank is the first bank in Vietnam to apply

modern technology and e-commerce in its banking operations.

Products and services of VietinBank are very diversified, including card

services (VietinBank E-partner, Cremium Visa, etc), oversees remittance, securities,

import-export payment, guarantee, derivative products, opening account, loan,

leasing, money transfer, insurance and saving.

4.2.2. Overview of Vietinbank, Hoan Kiem Branch

VietinBank, Hoan Kiem Branch was founded in 1979 as a branch of Ha Noi

State Bank and operated with two functions: state management and currency trading.

On 26th March, 1998, Decree No 53/HDDBT was promulgated which created a

premise for innovating process of Banking Industry. Based on it, the operation of this

branch was moved from subsidization mechanism to market mechanism and this

Bank operates with only one function: currency trading.

Nowadays, VietinBank, Hoan Kiem Branch is one of the first level branches

of VietinBank. This Bank is located in No37, Hng B Street, Hoan Kiem Distric,

Ha Noi. Currently, this Branch has seven departments, three transaction offices and

four savings deposit sections. The number of employees now is 110 people.


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F igur e 4.1 - Organizational structure of VietinBank, Hoan Kiem Branch

Source: VietinBank, Hoan Kiem Branch, 2010

VietinBank, Hoan Kiem Branch caries out theses following missions:

Mobilizing capital: exploiting and receiving sight deposits, term deposits,payable deposit of all organizations and individuals of all economic sectors

inside and outside country in VND and foreign currencies; issuing

Director

Savings

deposit

sections

Internal

inspection

department

Specialized

departments

Deputy Director

Transaction

officesChief of

accounting

departmen

Accounting

department

Administration

department

Risk

managing

department

Money-

Budget

Computing

department

Organizational

customer

department

Individual

customer

department

Administration

sector


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certificate of deposit, bond, bill of exchange and performing other forms ofmobilizing as the regulation of VietinBank;

Lending in short term, middle term and long term in VND and foreigncurrencies;

Guiding customer in lending investment projects; Trading foreign exchange operations when is allowed by Chairman of

VietinBank;

Trading services: collecting and spending cash, budgeting, payment cards,etc.

Business accounting and distributing income as the regulation of VietinBank; Examining, auditing internally; Building business plan suitable with local social-economic developing plan.

4.3. An overview of VietinBanks corporate culture

Nowadays, developing business culture is an urgent requirement of any bank

in integration process. Culture of a corporation is not to be the surface manifestation

like dressing, offices decoration, language but the moral standard, the lea dership

style, the behavior within company, etc. These elements create the prestige and brand

name for commercial banks in general and for VietinBank in particular.

Regarding corporate culture, people often think to 3P philosophy: people -

product-profit. According to the importance of three elements, each enterprise might

have different ways of behavior in business. With VietinBank, besides concentrating

on profit, the quality and the diversity of services, human resource is the first

concern. VietinBank always tries to care about the material and spiritual life of

employees; respect and encourage the initiation and creation of staffs. Hence,


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increasing profit likes an inevitable result, more and more customer has strong

attachment to VietinBank, at once, and the numbers of new customers are also bigger

and bigger. Therefore, talking about corporate culture of VietinBank is talking about

morality and behavior of VietinBank. During the process of international business

integration, corporate culture will be the key factor which helps VietinBank

overcome the challenges and is the key for sustainable development of the Bank.

In recent period of time, corporate culture is cared by both the leaders and

staff members of VietinBank. They want to build a value system of the truth-the

good-the beauty and for the sustainable development target of the whole system.

Hence, from moving to a new kind of form, VietinBank has published a handbook of

corporate culture which carries out the values VietinBank wants itself and its staffs to

achieve. This handbook includes mission, vision, and philosophy in business, moral

rules, rules of behavior, etc. of VietinBank. This book likes a guideline for all

members of VietinBank in process of building and developing corporate culture of

this Bank.

4.4. Levels and manifestations of corporate culture in VietinBank, Hoan Kiem

Branch.

VietinBank, Hoan kiem Branch is part of VietinBank. Hence, corporate

culture of this Branch will be formed basing on the cultural standard of VietinBank.

However, different branches will develop different corporate cultures. The

differences present in the manifestations of corporate culture in each branch. Those

differences themselves are one of the factors creating the level of success of each

branch in the whole system.


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In this part, the researcher will describe the corporate culture of VietinBank,

Hoan Kiem Branch. Much of this description rests on own direct observation as a

trainee in this Branch in June, 2009 and January and February 2010. Also, more

information is proved by some employees who have worked for this branch for a

long time and from the interviews 10 staff members (five veteran staffs, four young

staffs and one deputy manager of a transaction office). Besides, information has been

collected from the handbook of corporate culture of VietinBank (March, 2009).

To describe the banks culture, the framework developed by Edgar Schein

(1994) will be used. First, the writer will point out the visible culture-artifacts.

Then espoused values will be introduced and finally, the writer will try to

determine the basic underlying assumptions that explain and shape the artifacts and

the espoused belief of the branch.

4.4.1. Artifact level and its manifestations

According to Edgar Schein, artifacts include all the phenomena that one sees,

hears and feels when one encounters a new group with an unfamiliar culture. Hence,

the artifacts of VietinBank, Hoan Kiem Branch will be classified in the following

categories:

4.4.1.1. Offices architecture and decoration

The Branch office is separated into three parts but each part is bonded by the

lobbies. The middle part includes client accounts section on the first floor and all of

the directors rooms on the second floor. This part can be seen as the centre of

branch. Client accounts section is the place gathering almost transactions with

customers of the branch so the middle location is the most suitable one. One of the


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saving deposits sections and transaction offices are in the same location with the

head office of branch. The two sections are in the front, where customers can easily

pass by and carry out transactions. An ATM boot with two machines is placed in the

front, beside transaction office. This serves for the fast and comfortable needs of

customers. The branchs budget is put in the back in order to ensure the safety. These

departments dealing mostly with the secure information of branch are also located at

the back or on the third floor.

The decoration of transaction office, client account section or other

departments strictly follows the standards of VietinBank. In detail, in places which

carry out the direct transactions with customers every day, the branch arranges space

which is suitable with the frequent number of customers. Chairs are put for

customers when they wait in busy time. While waiting, they can look around and see

the slogan; the philosophy in business of VietinBank is hung on the wall. Besides,

the information about products and services of VietinBank or other marketing

programs of VietinBank or branch is put orderly on the wall or on the small

bookshelf in attempt to attract customers and bring them the good impression of

branch. However, one more thing is not follow the standard of VietinBank is the

branch has not owned the traditional room. All kinds of certificates are hanged on the

wall of meeting room or in the directors room.

The decoration of each department in the back office often depends on the

space and the role of each one. Though, usually each officer is provided a suitable

space with a desk and all the stuffs serving for his/her work. Each officer doesnt

have his/her owned cabin. This brings the opened and comfortable working

environment for people. One more thing, the job in a bank relies much on document,


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so a throughout space makes faster for passing document. There also have air

conditioners in every room. Door and window are made by glass. The hot summer

will be cooler with glass door and air conditioner; the winter will be warmer because

of hold-back wind effect of glass. Yet, members of each room put a small altar in

their rooms. In the ritual ceremonies, together, they can show their sincerity.

Especially on Tet holiday, members of each room always prepare for the altar

following the Vietnamese tradition. Through this, they all have a wish that in a new

year, their department will work more effective and also their branch will get more

and more benefit and success.

4.4.1.2. Brand name, logo, and slogan

Logo and brand name are among the visible factors showing the culture not

only of Hoan Kiem branch but also of all the branches in the VietinBanks branch

system. It is the culture of VietinBank in general. However, the writer still wants to

mention here because they are one of the factors attracting customers to the branch.

Here, the logo of VietinBank will be described both for itself and the brand name.

VietinBanks logo consists of two parts: wordmark and symbol/graphic mark.

F igur e 4.2VietinBanks Logo

Source: VietinBanks website, 2009


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The word part is also the brand name of the Bank: VietinBank and the

symbol part is a hollow circle.

Firstly, the word part is the abridge name from an English name of the Bank:

Vietnam Bank for Industry and Trade: Vie (tnam)-Bank In (dustry and)-T (rade).

This seems to be simple but in Vietnamese, Vietin contains a beautiful meaning. It

implicates the trust or the prestige of both the country and Vietnamese people.

This might be a purposed suggestion or just a coincidence. Whatever it is, it still

takes a deep effect to the customers curiousness and helps to attract them. The

wonderful thing is that the meaning of symbolic term enables both in English and

Vietnamese. This is really a subtle arrangement never ever seen in any organization.

Hence, it is brilliant when putting the whole name VietinBank into the logo. It is

not only simple and meaningful but also easy to recognize. The mix of colors of red

and blue has its own purpose. Red is color of heart and blue is the color of brain. The

first part Vietin is in red showing the love with our country simultaneous

emphasizing the fire of enthusiasm of VietinBankers. The part Bank is stuck on

blue-traditional color of VietinBank. It shows the belief, the hope of ones who are

dedicated to the development of the bank. In the fierce competition situation now, if

there is no one with big hands, big brain, who do not dare to think do; it is really

difficult to achieve a brilliant career.

Beside the words part, the symbol part (emblem) contains the meaningful

significance. It has the form of an old penny. Using penny as a symbol of a bank is

not a new way; however, the value does not end with this. The penny has two parts,

the blue part is above and red part is below. Blue part presents the sky, red part

symbolizes the ground. Sky and ground dissolve in one. According to the Eastern


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conception, there is nothing having the perfect harmony like sky and ground.

Furthermore, the logo presents an image of a bright early morning with rising sunrise

and bigger moving orbit which emphasizes the harmonic move and follow between

Sky and Ground in the universe. Together with the old penny symbol, the

metaphorical means illustrate the spirit of VietinBank with the trusted image of a

sunrise and the effect in the move of the Earth.

The brand name VietinBank has its own characters. These are effect, trust

and modern. Effect here implies the effect in the operations and services of the Bank

with the aim to provide the optimal benefits for VietinBanks customers. Trust is the

consistence, stability of finance and the high level of trust. The last character

modern refers to the thought of always moving forward of the Bank. In order to

emphasize more on the effect, VietinBank creates the slogan: Nang gia tri cuoc

song. This slogan shows the conscience of VietinBank in supporting and ensuring

the success of customers as well as the effort which helps to build a beautiful and

meaningful life.

4.4.1.3. Language and style

Dress codeIn this branch, formal clothes for male and female staff are divided into two

seasons: summer and winter. These formal clothes are both traditional and

fashionable in order to create a professional style for staffs and make good

impression on customers when coming to transact at branch.

In summer, dress for female staff is white shirt and black skirt. The length of

skirt is cross or over knee. Formal clothes for male staff are also white shirt and dark


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trousers. In winter, male staff will wear traditional suit with dark color, together with

white shirt and cravats. Their shoes are also in dark color. Dress for female staff in

winter will be a dark-color suit: vest and skirt. They can wear bright color clothes

inside. Especially, on these very cold days, all staff can wear their own warm dress

outside but still look tidy and formal. Furthermore, on such special days such as

anniversaries, female staff will wear Ao dai with blue color-traditional color of

VietinBank.

Each employee is given a bank badge with the logo of VietinBank to carry on

the front of dress. Nameplate of each staff is also required during working hours or

during the time of transaction. These requirements are to help customers to know

who VietinBanks employees are when they come to the branch and know the name

of the one whom they transact with. The badge is also effective in expressing the

image of VietinBank in comparison with other banks and somehow, the nameplate

will help newcomers to remember the name of all colleges.

LanguageAccording to principles of the working environment, no slang can be used

in conversation in this branch. When at work, they are serious and use simple, easy

to understand words. They try to avoid words which are easy to misunderstand

because they know that one mistake can lead to huge loss. Beside work, they talk

about other matters. It might be sharing work and life experience, or they discuss of

some current news. Sometimes, they have divergence on one matter but they have

never used rude words. In any cases, they always try to show the respect for others. If

they do not share common ideas at end, they will end the discussion and change

topics. One more thing worth mentioning here is the young is often polite with the


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old. If a young person says something not quite polite, everyone will warn her

delicately.

The language uses in different circumstances and with different people is

really cared. For example, in the lunch time or when seeing in the yard, people often

smile and talk joyfully to clear away the stress of work. Even though, some leaders

and managers are very funny people with joking stories. The language uses between

colleges often is words showing the comfort but is very polite words if the listeners

are employers or the older people.

4.4.1.4. Leadership Style

According to Edgar Schein, the leader is the one who has the most influential

impact on the corporate culture of an organization. A strong corporate culture can

make the best success. It is true for all organizations in general and for VietinBank,

Hoan Kiem branch in particular.

Since 1988, VietinBank, Hoan Kiem Branch has led by four directors.

Depending on the leaders personality and character, the leadership style varies.

According to the writers observation together with ideas of some staffs who has

more than 20 years experiences in the branch, there is one common feature among

most banks leaders: powerful. This is affected by the owned form of VietinBank and

the development of society. VietinBank was founded as a State Bank which was

owned by the government. So, monarchism has embedded on the mind of leaders.

This idea causes many bad effects to the branch. The branch had a very difficult

period. Over years, the branch operated without profit, the percent of bad loan up to


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70-80%, the lives of staffs were really difficult. Staffs almost had no belief on the

leaders.

However, day by day, step by step, this idea has been changing, especially in

the new development of society. The later leaders are more opened minded and have

the better way of leading. During her internship in this branch, the writer heard a lot

about Mr. Long, the current leader at that time who retired in March 2010. Mrs. Van,

a staff of Accounting Department said that Mr. Long is seen to be the best leader

ever. When he was leader, he brought the new wind for members of the branch. He

was the one who helped branch overcome the hard time. He changed the old way of

leadership, brought about more democracy for the staffs. Thanks to it, staffs had the

confidence and tried their best to devote to the branch.

From March 2010, VietinBank, Hoan Kiem branch has a new leader. Every

member of the branch puts great belief in this leader. They hope the new one can do

even better than the former one.

4.4.1.5. Behavior within the branch

The behavior within the branch is manifested through communication

between managers - staffs and among colleges.

Firstly, the communication of managers to staffs will be mentioned.

Managers always show their fair treatment with all staffs. Whoever achieves good

results will be rewarded and who has mistake will be warned or punished depending

on the severity of the mistakes. During the observation, the writer had a chance to

join in a monthly meeting of the accounting department. In this meeting, the manager

had a straight forward discussion on the mistakes of staffs in this month. Some


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accidental mistakes which did not cause any harm were passed but the serious

mistakes were analyzed and lessons are drawn. On the other hand, she also pointed

the good things. By this way, no one could claim or complain about anything. Some

managers of the branch have shown their willingness to listen to staffs ideas and try

to talk with about the difficulties, the obstacles of job. However, only a few

managers can do this. During the observation, some employees complained about

their managers who did not want to listen to their ideas, managers just tried to

impose their ideas on employees. Though, one good thing is that, managers of the

branch care a lot about life of their staffs. When a staff encounters a family problem,

managers will try to arrange time and work to visit the staffs family. Managers will

create the favorable conditions for this one to overcome their personal problems.

In return, almost all staffs of this branch have positive attitude toward

managers. They always show their respect for their superiors. The respect is shown

by the way of greeting and the language is used. Staffs use the formal words along

with a smile when greeting managers. When having some problem needed to

exchange with managers, every one try to talk in a brief way. Lengthy conversations

are often avoided. Besides, employees of branch always try to complete the entire

divided task. They even spend the extra time to finish task.

The third one is the communication among colleges. In general, the

relationship among staffs is close. There are many close friends in the branch. By

being close together, staffs will understand each other more. From that, working

together becomes easy with them and helps them to get better effect. At work,

everyone shows the respect for listener while discussing. If they need to exchange


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views, they often meet and talk the face to face to each other. Internal telephone

often is used to handle some kinds of quick tasks or problems.

4.4.1.6. Behavior toward customers

Communication of branchs staffs to customers here mainly refers to

communication between tellers and customers. The reason is tellers are the ones who

play the main role in transacting with customers. The behavior of tellers will be the

most important element in creating a good or bad impression on customers.

Culture during transaction in VietinBank, Hoan Kiem branch is to bring

convenience to customers in order to keep them loyal, to make them feel

comfortable while using the banks products and services. This is the purpose that all

tellers and others always keep in mind. Firstly, culture is shown as transaction

procedures. Customers will save their time when they do banking transaction. Too

much waiting time due to complicated procedures can really annoys customers. They

can get tired, unpleasant and do not want to transact at the branch anymore.

Gradually, this can decrease the number of customers to the branch. So,

modernization of VietinBanks banking system - from doors transaction to one-door

transaction- is one of the keys to get the customers satisfaction. Modernization helps

shorten the waiting time when customers come to transact at the branch. Customers

can choose who to transact with instead of being appointed as in the past. Besides,

tellers of the branch always introduce all the necessary steps which customers need

to follow. If any step takes a longer time to do, it will be stated to the customer at

first. Secondly, culture is reflected in the style of communication of the tellers.

During the observation period of the writer at VietinBank, Hoan Kiem branch, the

author was much impressed by the way the tellers serve customers. Tellers always


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share the tips of behaving with customer together. The core thing is teller has to

serve customers wholeheartedly by speak lightly, always smiling and fast serving.

They never show unpleasing attitude when customers ask too many questions. They

are always patient, answer clearly all the questions of the King. Furthermore,

tellers are really good at how and what to consult customers. Tellers have good

understanding of what products and service the branch offers and how to fully satisfy

customers demand. By doing so, the branch can attract new customers and enhance

the existing customers loyalty. The way of communication of the tellers is one of

the important factors helping in increase the number of customers. In fact, the last

three years saw a remarkable increase in the number of customers to the branch.

Moreover, by holding the customer meeting once a year, a survey is always

conducted to get the ideas of customers about the quality of serving at the branch. Up

to now, there has never been any complains.

Beside tellers, other staffs of the branch always show their respects with

customers. The security man always gently in guiding customers parking. If

customers have any questions of the places of departments, he often shows them with

a smile. Other employees also keep in their mind that customers are the King. So like

tellers, they also try to serve customers wholeheartedly any time a customer needs

help.

4.4.2. Espoused beliefs and values

VietinBank missionTo be the top financial-banking group of Vietnam, operate versatility,

provide products and services as international standard, in order to improve the

quality of live


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VietinBank visionVietinBank is a top modern, effective financial-banking Group inside and

outside the country

Being part of VietinBank, all the operations of the branch are for the vision,

mission of VietinBank. Business philosophy of the branch also follows that of

VietinBank.

The mission and vision of VietinBank is to be the top financial banking group

in Vietnam. To achieve it, every part of VietinBank has to try its best including

VietinBank, Hoan Kiem Branch. The effort of the branch is clearly seen in the way

to improve its competitiveness in comparison with other branches of other banks in

the same area-Hoan Kiem District. To do that, the branch is trying to improve the

quality of services. Services quality is of greatest importance to help a bank attract

more customers. Relying on marketing strategies as well as enhancing the quality of

staffs, the image of the branch under the eyes of customers is increasingly improved.

The number of customers visiting the branch is increasing significantly. As a result,

the branch has gained the trust from many local organizations.

VietinBank business philosophy1. To follow through safe, effective, sustainable, international standard;2. To unite, cooperate, share and have the social responsibility;3. The prosperity of customers is the success of VietinBank.

The philosophy of VietinBank is also the philosophy in business of Hoan

Kiem Branch.


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To follow through safe, effective, sustainable, international standard: the

branch always tries to maintain safety in all activities. Safety here is for both

customers and the branch. The effectiveness is represented in the satisfaction and

success of customers every time they come to transact at the branch. The

sustainability is shown in the way the branch minimizes its bad debts and increase

the benefits. This will help to make healthy the financial situation, bring about the

sustainability for the branch. International standard is the one which the whole

system of VietinBank has been pursuing. Applying and updat

the impact of corporate cultural in vietnamese companies

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