Khóa luận - An analysis of organizational culture and employee’s job satisfaction at Joint Stock Commercial Bank For Foreign Trade of Vietnam – Vietcombank, Thanh Cong Branch

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Facebook:@Dethivaonganhang www.facebook.com/dethivaonganhang TABLE OF CONTENT TABLE OF CONTENT ....................................................................................................1 LIST OF TABLES AND FIGURES ...............................................................................5 LIST OF ABBREVIATIONS ..........................................................................................7 ACKNOWLEDGEMENT................................................................................................8 ABSTRACT ........................................................................................................................9 CHAPTER 1: INTRODUCTION ...................................................................................1 1.1. Rationale of the study..................................................................................1 1.2. Aims of the study .........................................................................................2 1.3. Scope of the study ........................................................................................2 1.4. Structure of the study..................................................................................3 CHAPTER 2: LITERATURE REVIEW.......................................................................4 2.1. Culture and organizational culture ...........................................................4 2.1.1. Definition of culture..............................................................................4 2.1.2. Organizational culture .........................................................................5 2.1.2.1. Definition.............................................................................................5 2.1.2.2. Types of organizational culture ...........................................................6 2.1.2.3. Levels of organizational culture ..........................................................9 2.1.2.4. The impact of strong organizational culture on the development of a corporation/organization .................................................................................13 2.2. Job satisfaction...........................................................................................14 2.2.1. Definition .............................................................................................14 2.2.2. Job satisfaction theory........................................................................15 2.2.2.1. Hierarchy of Needs............................................................................15 2.1.2.2. The Two-Factor Theory.....................................................................17 2.2.2.2. Job Characteristic Model...................................................................18 2.3. Relationship between organizational culture and employee’s job satisfaction ............................................................................................................19 2.3.1. Positive organizational culture and employee’s job satisfaction....20 2.3.2. Negative organizational culture and employee’s job satisfaction ..22 CHAPTER 3: DATA AND METHODOLGY ............................................................24 3.1. Data .............................................................................................................24 3.1.1. Data sources.........................................................................................24 3.1.2. Data collection and sampling method ...............................................25 3.2. Research methodology ..............................................................................26 www.ThiNganHang.com S Á C H – T À I L I Ệ U T H I T U Y Ể N Trang 1

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Facebook:@Dethivaonganhang www.facebook.com/dethivaonganhang CHAPTER 4: EMPRICAL FINDINGS ......................................................................28 4.1. An overview of Vietcombank ...................................................................28 4.1.1. General Information...........................................................................28 4.1.2. Establishment and Development .......................................................28 4.1.3. Organizational structure....................................................................29 4.2. An overview of Vietcombank, Thanh Cong Branch ..............................31 4.2.1. General Information...........................................................................31 4.2.2. Organizational structure....................................................................31 4.2.3. Business activity ..................................................................................32 4.2.3.1. Capital raising activity.......................................................................32 4.2.3.2. Credit activity ....................................................................................33 4.2.3.3. Foreign currency trade.......................................................................33 4.2.3.4. Import-Export payment activity ........................................................33 4.2.3.5. Card and banking card service ..........................................................33 4.2.3.6. Customer development activity.........................................................34 4.2.3.7. Financial result ..................................................................................34 4.3. Organizational culture at Vietcombank, Thanh Cong Branch.............34 4.3.1. Types of organizational culture .........................................................35 4.3.2. Artifact level and its manifestations..................................................36 4.3.2.1. Office‟s architecture and decoration .................................................36 4.3.2.2. Brand name, logo and slogan ............................................................37 4.3.2.3. Language and style ............................................................................38 4.3.2.4. Leadership style.................................................................................39 4.3.2.5. Behavior within branch .....................................................................40 4.3.2.6. Behavior towards customers .............................................................41 4.3.3. Espoused beliefs and values ...............................................................42 4.3.3.1. Value..................................................................................................42 4.3.3.2. Attitude ..............................................................................................43 4.3.3.3. Business philosophy ..........................................................................43 4.3.4. The basic underlying assumptions ....................................................44 4.3.4.1. Assumptions about External Adaptation Issue..................................44 4.3.4.2. Assumptions about Managing Internal Integration ...........................44 4.3.4.3. Assumptions about Reality and Truth ...............................................45 4.3.4.4. Assumptions about the nature of time and space ..............................45 4.3.4.5. Assumptions about human nature, activity and relationship ............45 4.3.5. Evaluation of organizational culture at Vietcombank, Thanh Cong branch 45 4.3.5.1. Strength..............................................................................................46 4.3.5.2. Weakness...........................................................................................48 www.ThiNganHang.com S Á C H – T À I L I Ệ U T H I T U Y Ể N Trang 2

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Facebook:@Dethivaonganhang www.facebook.com/dethivaonganhang 4.4. Employee’s job satisfaction at Vietcombank, Thanh Cong branch .....49 4.4.1. Survey of employees’ job satisfaction at Vietcombank, Thanh Cong Branch 50 4.4.2. An analysis of job satisfaction at Vietcombank, Thanh Cong Branch 50 4.4.3. Evaluation of employee’s job satisfaction at Vietcombank, Thanh Cong branch......................................................................................................64 4.4.3.1. Strength..............................................................................................64 4.4.3.2. Weakness...........................................................................................67 4.5. Relationship between organizational culture and employee’s job satisfaction at Vietcombank, Thanh Cong branch ...........................................68 4.5.1. Positive employee’s job satisfaction ..................................................69 4.5.2. Negative employee’s job satisfaction.................................................70 CHAPTER 5: CONCLUSION AND RECOMMENDATIONS..............................73 5.1. Missions and Goals of Vietcombank, Thanh Cong branch ......................73 5.2. Recommendations for developing organizational culture and employee’s job satisfaction at Vietcombank, Thanh Cong branch ................74 5.2.1. Developing the brand name and image of Vietcombank to the public 74 5.2.2. Improving the business ethics among employees and staffs ...........75 5.2.3. Changing the physical working environment ..................................76 5.2.4. Building the specific value system .....................................................78 5.2.5. Changing the leadership style to adapt to the environment of all the staffs and employees at Vietcombank, Thanh Cong branch .................79 5.2.6. Addressing conflict quickly................................................................81 5.2.7. Giving feedback to employees properly............................................82 5.2.8. Developing equal evaluation system..................................................83 5.2.9. Encouraging new ideas, creativity and innovation in the branch ..84 5.2.10. Encouraging the collaboration between the members of the branch 85 5.2.11. Improving employee’s job satisfaction with pay .............................85 5.2.12. Enhancing employee’s job satisfaction with opportunity for training and promotion....................................................................................87 5.3. A brief summary ........................................................................................88 CONCLUSION.................................................................................................................89 REFERENCES.................................................................................................................90 APPENDIX 1 ....................................................................................................................95 APPENDIX 2 ..................................................................................................................100 www.ThiNganHang.com S Á C H – T À I L I Ệ U T H I T U Y Ể N Trang 3

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Facebook:@Dethivaonganhang www.facebook.com/dethivaonganhang LIST OF TABLES AND FIGURES Figure 2.1: Four types of organizational culture...........................................................6 Figure 2.2: Maslow’s Hierarchy of Needs...................................................................16 Figure 4.1: Organizational structure at Vietcombank...............................................30 Figure 4.2: Organizational structure at Vietcombank, Thanh Cong branch ........32 Figure 4.3: Logo Vietcombank.......................................................................................38 Figure 4.4: Regression Standardized Residual............................................................64 Table 2.1: Frederick Herzberg's Two-Factor Theory................................................18 Table 4.1: Demographic classification according to groups at Vietcombank, Thanh Cong branch .........................................................................................................49 Table 4.2: Descriptive Statistics for 6 factors affecting employee’s job satisfaction at Vietcombank, Thanh Cong branch ..........................................................................53 Table 4.3:Cronbach’s Alpha coefficients and the number of observation variables 55 Table 4.4: KMO and Bartlett's Test..............................................................................56 Table 4.5: Total variance explained ..............................................................................57 Table 4.6: Correlation matrix ........................................................................................59 Table 4.7: Linear regression model ...............................................................................61 Table 4.8: R square ..........................................................................................................62 Table 4.9: ANOVA ...........................................................................................................62 www.ThiNganHang.com S Á C H – T À I L I Ệ U T H I T U Y Ể N Trang 5

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Facebook:@Dethivaonganhang www.facebook.com/dethivaonganhang LIST OF ABBREVIATIONS ATM Payment acceptance point – Automated Teller Machine BOD Board of Director CEO Chief Executive Officer JCM Job Characteristics Model JDI Job Descriptive Index HOSE Ho Chi Minh Stock Exchange MSQ Minnesota Satisfaction Questionnaire UNESCO United Nations Educational, Scientific and Cultural Organization USD United States Dollar Vietcombank Joint Stock Commercial Bank For Foreign Trade of Vietnam Vietcombank, Joint Stock Commercial Bank For Foreign Thanh Cong branch Trade of Vietnam, Thanh Cong Branch VND Vietnamdong www.ThiNganHang.com S Á C H – T À I L I Ệ U T H I T U Y Ể N Trang 7

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Facebook:@Dethivaonganhang www.facebook.com/dethivaonganhang ACKNOWLEDGEMENT This graduation thesis is the final result of a long process of research and writing. During the time of conducting this thesis, I know that the successful completion of this dissertation would be impossible without the support and corporation of many people to whom I will be forever grateful. First and foremost, special mentions and grateful thanks must go to Mrs. Le Thu Hang, my supervisor at Hanoi Foreign Trade University. I‟m indebted to her inspiration and intellectual support throughout the course of writing this graduation paper. I could not have been able to complete this thesis without her positive suggestions and guidance. Her continual encouragement, careful reading, critical comments and patient guidance made my work more enjoyable and easier. Secondly, I want to thank all the managers and staffs of Vietcombank, Thanh Cong Branch, for their cooperation that helped and inspired me in writing and for their willing participation in the study. I greatly appreciate their generosity with their time and efforts in filling in the questionnaire. Thirdly, I would also like to give my heartfelt thanks to the authors who provided me with valuable books for my thesis. Finally, my appreciation goes to my family, my friends and my classmates. Their support and constant encouragement gave me a great deal of strength and determination that help me during the stressful time of writing this paper. My deepest gratitude is to the readers also, whose feedback will help much in improving the thesis. In the future, I hope that with the obtained knowledge, I could apply my academic knowledge that I have learned at the university to practical problems in reality. Hanoi, May 2015 Nguyen Thi Thuy Dung www.ThiNganHang.com S Á C H – T À I L I Ệ U T H I T U Y Ể N Trang 8

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Facebook:@Dethivaonganhang www.facebook.com/dethivaonganhang An analysis of organizational culture and employee’s job satisfaction at Joint Stock Commercial Bank For Foreign Trade of Vietnam – Vietcombank, Thanh Cong Branch ABSTRACT The graduation thesis represents the analysis and results of research on impact of organizational culture and employee‟s job satisfaction at one of the most outstanding corporation in terms of banking sector in Vietnam – Joint Stock Commercial Bank For Foreign Trade of Vietnam (Vietcombank). In this thesis, I use the case study of Vietcombank, Thanh Cong Branch because this branch may be given more accurate detailed information. The first objective of the thesis is to understand the impacts of organizational culture on the development of Vietcombank, Thanh Cong branch in particular which also shows the importance of organizational culture for any company in general. Benefits of adopting organizational 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 addition, the second objective of this thesis is to find out the attitudes of employees towards their jobs while working at any organization through measuring their job satisfaction. It is also critical which affect to the degree how good the organizational culture that organization has. www.ThiNganHang.com S Á C H – T À I L I Ệ U T H I T U Y Ể N Trang 9

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1 CHAPTER 1: INTRODUCTION 1.1. Rationale of the study Nowadays, with the rapid development of society, the competition between companies is more and more severe. Each organization has to set up the unique strategy to help their corporation survive well in the business environment. One of the most outstanding factors which help companies to create the critical position in the customer‟s eyes is organizational culture. Recently, this word has not been a new expression with corporations and public. Many companies have not been afraid of investing in many resources to form and develop their own culture because they are aware about the fact that “Making a difference” is a philosophy in business to improve the image of an organization with society, community and clients. In general, organizational culture can be understood as all the culture values of an organization which are shaped, developed, recognized and popularized from years to years or formed during its development period. It has great influence on all activities of a company as well as its workers. Banking industry is a successful industry in interacting with customers and its success is based on the belief of the clients. Therefore, creating an unique organizational culture which can make good impression on customers is of greater importance for banks in general and for commercial banks in particular. Joint Stock Commercial Bank For Foreign Trade Of Vietnam – Vietcombank is one of the top leading banks in Vietnam. Developing strong organizational culture is one of the most strategy that the leaders and officers in that bank strive for. Besides, a good business environment can become an effective tool to attract employees and especially help the workers be satisfied with their jobs. Hence, the organizations can keep the current employees loyal to and dedicated to their corporation. In return, when the employees are satisfied with their working environment and job itself, they will devote positively to help their organization go further steps in the future. As a result, the high rate of job satisfaction will become the motivation for developing the corporate culture of any organization.

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2 Realizing the importance of organizational culture and employee‟s job satisfaction as well as the relationship between these two elements to the development of the corporation, I decided to choose the topic “An analysis of organizational culture and employee’s job satisfaction at Joint Stock Commercial Bank for Foreign Trade of Vietnam - Vietcombank, Thanh Cong branch” as my graduation thesis topic with the hope that some findings and recommendations from the study could be a reference to help further developing a successful corporate culture and job satisfaction for the branch. 1.2. Aims of the study The goal of the study is to find out about the organizational culture and employee‟s job satisfaction at Vietcombank, Thanh Cong branch. To answer this research question, it is necessary to answer the following sub questions:  What is organizational culture?  What are the manifestations of organizational culture at Vietcombank, Thanh Cong Branch?  What is employee‟s job satisfaction?  Which level are employees at Vietcombank, Thanh Cong branch satisfied about their job?  What is the relationship between organizational culture and employees‟ job satisfaction at Vietcombank, Thanh Cong branch?  What are the recommendations and solutions for developing organizational culture and employee‟s job satisfaction at Vietcombank, Thanh Cong branch? 1.3. Scope of the study This study focuses on the organizational culture and employee‟s job satisfaction at Vietcombank, Thanh Cong branch. Therefore, the scope of the research is the manifestations contributing the organizational culture and employees at this branch. The study analyzes the organizational culture developed by the organization and the level of job satisfaction at Vietcombank, Thanh Cong branch and gives

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