PROBLEM IDENTIFICATION
Problem conceptualization
The Bank for Investment and Development of Vietnam JSC (BIDV), with a rich history spanning 58 years, has played a pivotal role in Vietnam's economic development In 2015, BIDV marked a significant milestone by transitioning from a state capital institution to a commercial bank operating under market principles Over the past two decades of transformation, BIDV has achieved remarkable progress, establishing itself as one of the largest banks in Vietnam's banking system.
Established on December 1, 2005, BIDV Tan Binh Branch aimed to expand the Bank's network in key economic areas of southern Vietnam, becoming the eighth BIDV branch in Ho Chi Minh City In January 2008, it was officially renamed Branch Commercial Bank for Investment and Development of North Saigon Over the past decade, the branch has grown from 48 employees and 6 departments to over 140 employees across 16 departments, including 4 transaction offices in Tan Binh District, Go Vap District, and District 10 BIDV North Saigon has successfully fulfilled its mandate to expand the network, including the establishment of the new Tan Binh Branch and providing support for the integration of Mekong Housing Bank branches in 2015.
In June of 2015, the branch received Tan Son Nhat transaction office (now renamed to Nhat Tao transaction office) from the bank MHB, which was merged to
BIDV in April of 2015 Until December 31 st 2015, the retail operation of the branch comprised: Individual Customers department and 4 transaction offices located at Tan
Binh district, Go Vap district, district 10 With the scale of 69 employees (accounting for
42% total number of employee of entire branch), most of retail employees are young, enthusiastic, dynamic and equipped full of operational knowledge, suitable with business environment
In 2015, retail operation of the branch was structured with 5 departments as the diagram below:
Figure 1 – Retail operation structure of BIDV North Saigon branch
ICT Dept Individual Customer Transaction Department
IC Dept Individual Customer Department
Cong Hoa transaction office, Go Vap transaction office, Nhat Tao transaction office
TR team Tax Refund team: The team works inside the
International Terminal – Tan Son Nhat International Airport, which
Table 1 – Retail departments name abbreviation
Retail banking, often referred to as consumer banking, focuses on providing financial services to individual consumers rather than businesses or corporations Key services include savings and transactional accounts, mortgages, personal loans, debit cards, and credit cards This term helps differentiate retail banking from investment, commercial, and wholesale banking, and may also denote a specific division within a bank that caters to retail customers.
Retail banking lacks a precise definition, but it is generally understood as the provision of financial products and services to individuals, households, and small businesses This sector focuses on delivering services through a network of branches and transaction offices, while also enabling direct access to banking products via electronic and telecommunications channels.
Vietnam, with a population of approximately 90 million and rising incomes, presents a promising market for commercial banks The anticipated growth in this sector is driven by increasing income levels and the expansion of diverse enterprises As banks shift their focus towards retail banking, they aim to enhance accessibility for individual clients and small to medium-sized enterprises This transition not only opens up larger market opportunities but also fosters potential growth while enabling better risk diversification in their business strategies.
In recent years, retail banking has become a key focus for commercial banks, shaping their development strategies In line with this trend, BIDV has implemented a well-structured strategy to enhance its retail banking operations, ensuring a cohesive approach from headquarters to branches As a result of this strategy, BIDV experienced significant growth in scale, efficiency, and quality in its retail banking operations between 2013 and 2015 According to BIDV's internal report, these efforts culminated in impressive results in 2015.
From 2013 to 2015, BIDV upheld its position as the leading retail banking institution in Vietnam, achieving a retail banking scale of 495 trillion VND The bank also demonstrated significant success in various key retail banking metrics during this period.
In 2015, retail capital mobilization reached 355 trillion VND, marking a 1.7-fold increase since 2013 This significant growth positioned BIDV as the leading commercial bank in Vietnam for retail capital mobilization.
- Retail Loan outstanding in 2015 was 140 thousand billion VND, increasing 2.4 times in comparison with 2013, which made BIDV have the most loan outstanding among comercial banks in Vietnam
- Retail Profit in 2015 was 8.6 thousand billion VND, increasing nearly 2 times after 2 years, average growth in 2013-2015 period was 33%
The retail operations at the BIDV North Saigon branch have demonstrated inefficiencies when compared to the overall BIDV system and other branches within the Ho Chi Minh City region.
Inefficient in comparison with entire BIDV system
Between 2013 and 2015, BIDV North Saigon experienced significantly lower average growth rates in key retail metrics, including Retail Loan Outstanding, Retail Profit, and the Number of Retail Customers, compared to the overall BIDV system The specific figures illustrating this disparity are detailed in the accompanying table.
Difference Entire BIDV system BIDV North
Table 2 – Comparison on average growth of retail criteria 2013-2015 between
Entire BIDV system and BIDV North Saigon branch
Besides, about the proportion criterias, BIDV North Saigon branch is also at a low level in comparison with entire BIDV system:
Difference Entire BIDV system BIDV North
Table 3 – Comparison on retail proportion of retail criteria between Entire BIDV system and BIDV North Saigon branch
The retail operations of the BIDV North Saigon branch are diverging from the overall trend of the BIDV system, which is focused on enhancing and expanding retail banking services.
Inefficient in comparison with other branches in Ho Chi Minh City region
The performance of retail operation in the branch is also not satisfactory in comparison with other BIDV branches in Ho Chi Minh City region on many criteria:
At the end of 2015, retail capital mobilization of BIDV North Saigon was 2,628 billion VND, ranking 7 th among 15 BIDV branches (excepting MHB merged in 2015) in
Ho Chi Minh City region Besides, capital mobilization (CM) per retail employee in
2015 was 46.11 billion VND, ranking 13 th among 15 BIDV branches in Ho Chi Minh City region, whereas the average CM per retail employee in the region was 62.62 billion VND
The retail contribution margin (CM) at BIDV North Saigon branch is notably low, accounting for only 27% of the total CM, which is significantly below the regional average of 53% This stark contrast indicates that retail operations at this branch are underperforming compared to other branches in the region, highlighting inefficiencies in their retail CM operations.
Ranking among 15 branches in HCM city region (excepting MHB branches merged in 2015)
Table 4 – Comparison on Retail Capital Mobilization between BIDV North Saigon branch and other branches in HCMC region
Ranking among 15 branches in HCM city region (excepting MHB branches merged in 2015)
Table 5 – Comparison on Retail Loan Outstanding between BIDV North Saigon branch and other branches in HCMC region
In 2015, the branch's loan outstanding (LO) per retail employee was 12.7 billion VND, placing it 11th out of 15 branches in the region and falling short by 2.67 billion VND compared to the regional average Additionally, the retail LO to total LO ratio was notably low at 8%, ranking 14th among the branches Furthermore, the retail LO growth rate from 2013 to 2015 positioned the branch in the bottom tier within the region.
Ranking among 15 branches in HCM city region (excepting MHB branches merged in 2015)
Table 6 – Comparison on Retail Profit between BIDV North Saigon branch and other branches in HCMC region
In 2015, the Retail Profit (RP) per retail employee at the BIDV North Saigon branch was 1.09 billion VND, placing it 9th out of 15 branches in the Ho Chi Minh City area, excluding the MHB branches that merged that year The branch's Retail RP/Total RP ratio was only 21%, significantly below the regional average of 36%, ranking it last among its peers.
Recent years have revealed significant issues in retail operations, including an increase in customer complaints regarding employee attitudes, a high turnover rate among staff, frequent employee absences, and poor interpersonal relationships among team members.
Problem Identification
To identify inefficiencies in retail operations at the BIDV North Saigon branch, initial interviews were conducted with key staff members involved in retail functions The interviewees included Mrs Hien, the Deputy Director of Retail Operations, who oversees the branch's retail development strategy; Mr Hai, the Head of Individual Customers, responsible for enhancing retail products and action programs; Mrs Ngan, Head of the Nhat Tao transaction office, focusing on retail development in District 10; Mr Hung, a former retail employee; and Mrs Thuy, Head of Human Resources, who manages recruitment and HR-related issues across all departments, including retail Detailed interview questions and transcripts are provided in Appendix 1.
Interviews revealed that each participant had unique perspectives on the inefficiencies affecting retail operations at the branch compared to others in the region Commonly identified issues contributing to this inefficiency included emotional exhaustion, ineffective business processes, and an unsuitable recruitment policy.
Mrs Hien attributed the inefficiency of retail operations at the branch to the emotional exhaustion experienced by employees Research by Cordes & Dougherty highlights that employees suffering from high levels of emotional exhaustion struggle to perform their tasks effectively, leading to poor service delivery Observations made by Mrs Hien revealed that retail employees often arrived at work looking tired, and tellers frequently displayed a lack of enthusiasm, failing to engage positively with customers Despite her warnings about these issues, there has been no improvement Bozionelos et al also noted significant interaction effects between emotional labor and emotional exhaustion, which further impacts work attitudes Consequently, the branch has received numerous customer complaints regarding the behavior of retail employees, particularly tellers Additionally, Mrs Hien pointed out that relationships among employees and between staff and management were strained, contributing to an uncomfortable work environment She concluded that the low morale of retail employees likely stems from their emotional exhaustion and the challenging working conditions at the branch.
Mrs Thuy, Head of the Human Resource Department, echoed Mrs Hien's concerns regarding the emotional exhaustion faced by retail employees She observed that many employees arrived at work in a negative mood, often reacting angrily to conflicts with colleagues Signs of fatigue were evident, with some employees even sleeping at their desks during work hours Additionally, statistics revealed that retail employees had a higher average of absenteeism compared to those in wholesale and internal management operations This emotional distress among retail staff appears to contribute to various negative symptoms, ultimately leading to less efficient performance in retail operations compared to other BIDV branches.
In an interview with Mr Hung, a former employee of the Individual Customers department, he shared his reasons for leaving the job, citing high work pressure, stagnant benefits, and inadequate recognition However, he emphasized that the toxic working environment was the primary factor in his decision to resign Mr Hung expressed difficulties in building relationships with his coworkers, whom he described as selfish and unsupportive Additionally, he felt neglected by his leader, who frequently criticized him despite his hard work to meet targets This emotional stress ultimately led to his dissatisfaction and departure from the branch.
Mrs Ngan, the Head of Nhat Tao transaction office, highlighted the negative impact of BIDV's current work processes on retail employees, indicating that the lack of logical structure leads to confusion She pointed out that retail credit staff are overwhelmed with the requirement to complete and notarize credit documents, leaving them little time to attract new customers This situation not only results in customer complaints but also increases stress levels among employees In contrast, other banks have dedicated departments for document processing, allowing their staff to focus on customer acquisition and reducing work-related stress Additionally, Mrs Ngan noted that BIDV's outdated information technology system prolongs customer transactions and increases manual tasks for employees, ultimately pushing them beyond their limits.
Mr Hai, the Head of the Individual Customers Department, has identified significant weaknesses in the branch's recruitment policy, which he believes directly impacts employee performance Research by Rafii et al supports this notion, highlighting a correlation between effective recruitment and enhanced employee performance Patimah also emphasizes that a robust recruitment program can positively influence employee commitment, productivity, and overall work quality Mr Hai noted that some retail employees are hired primarily due to personal connections with branch leaders, despite lacking the necessary qualifications This has led to customer complaints regarding employees' improper attitudes and insufficient knowledge about banking products, hindering their ability to meet the department's objectives Furthermore, employees who underperform are often only penalized with salary reductions yet remain employed, exacerbating inefficiencies within the retail department Consequently, Mr Hai asserts that the recruitment policy significantly affects the performance of retail operations.
Interviews conducted with employees from various departments involved in the branch's retail operations have identified key issues contributing to inefficiencies The summarized findings are presented in the table below.
Emotional exhaustion of retail employees
Mrs Ngan Bad business process
Mr Hai Inappropriate recruitment policy
Table 7 – Summary of opinions on potential problems in retail operation at BIDV North Saigon branch
To generalize the cause-effect relationship between negative symptom happening in retail operation and potential problems detected, initial cause-effect map was set up:
Figure 2 – Initial Cause –effect map
An interview with Mr Thuy, the Head of the Human Resources department, was conducted to identify issues in the retail operations of the BIDV North Saigon branch and to assess the feasibility of implementing changes in alignment with the branch's existing resources and overall objectives.
Mrs Thuy highlighted that the issue of bad work processes is not isolated to retail operations but also affects wholesale and internal management operations across various branches within the BIDV system This challenge is systematic, stemming from the uniform working processes mandated by BIDV Headquarters, which are slow to change Consequently, while bad work processes are a concern, they should not be viewed as the primary cause of inefficiencies in retail operations.
Mrs Thuy argued that the inefficiency of retail operations in the branch cannot be attributed to an inappropriate recruitment policy, as over 80% of retail employees are graduates from top economic universities in Vietnam, with more than 90% achieving graduation marks above 7.5 Furthermore, these employees are required to attend training courses focused on communication skills and product knowledge, with assessments to ensure mastery of the material Additionally, employees undergo a mandatory "Ability test" every two years, which they must pass to renew their labor contracts Those who do not perform well may be reassigned or terminated based on leadership recommendations Thus, Mrs Thuy concluded that the branch's recruitment policy is not the cause of operational inefficiencies, as employees are well-educated and adequately trained to fulfill their job requirements.
As a result, both Bad business process and Inappropriate recruitment policy should not be considered the main problem that leads to inefficiency of retail operation
Mrs Thuy highlights that the primary issue affecting the low working spirit among retail employees stems from negative emotions in the workplace She supports this claim with a striking statistic: retail employees took an average of 7.6 days off in 2016, compared to just 5.6 days for all employees in the sector Additionally, research by Schaufeli et al indicates a correlation between emotional exhaustion and the length of sick leaves, further emphasizing the impact of workplace emotions on employee well-being.
Operation Number of employees Average day-off
Operation Number of employees Average day-off
Table 8 – Comparison on number of day-off between retail employees and employees from other operation in the branch
In recent years, the retail sector has witnessed a significant rise in employee turnover, with rates reaching as high as 80% in 2015 Research by Wright et al indicates that emotional exhaustion is a key predictor of future voluntary turnover among retail employees.
Mrs Thuy identified that retail employees often struggle with interpersonal relationships, creating an intangible barrier that fosters a tense working atmosphere This negative environment adversely affects their emotions, leading to a lack of enthusiasm Consequently, it is crucial for the branch to prioritize the emotional well-being of retail employees as a key issue to address According to literature, the primary challenge faced by retail operations is "emotional exhaustion."
Problem definition
Emotional exhaustion occurs when employees feel overwhelmed by job demands that surpass their available resources, leading to a sense of being emotionally overextended (Maslach et al.) Research by Lee et al and Wright et al further indicates that this state of emotional exhaustion results in feelings of detachment and depletion in individuals.
Workplace incivility significantly contributes to emotional exhaustion, characterized by feelings of helplessness and depletion of emotional resources Research by Wright et al indicates that heightened emotional exhaustion adversely affects both employee and organizational outcomes, leading to increased work stress and diminished job satisfaction Consequently, Bakker et al suggest that emotionally exhausted employees may experience discomfort at work, question their job's value, and exhibit higher turnover intentions Ultimately, emotional exhaustion can severely impact employees' mental health and performance, resulting in serious issues within the organization.
Problem existence
To assess the issue of emotional exhaustion among retail employees at the BIDV North Saigon branch, a questionnaire was administered to gather their opinions and attitudes Emotional exhaustion levels were evaluated using the nine-item component of the Maslach Burnout Inventory, developed by Maslach et al The survey employed a Yes/No format for responses (refer to Appendix 3).
1 Do you feel emotionally drained from your work?
2 Do you feel used up at the end of the workday?
3 Do you feel fatigued when you get up in the morning and have to face another day on the job?
5 Do you feel burned out from your work?
6 Do you feel frustrated by your job?
7 Do you feel you’re working too hard on your job?
8 When working with people directly, does it put too much stress on you?
9 Do you feel like you’re at the end of your rope?
The survey was conducted at the BIDV North Saigon branch and several selected branches in the Ho Chi Minh City region due to time constraints The chosen branches included the Saigon branch, East Saigon branch, and Nam Ky Khoi Nghia branch, all of which have been in operation for a comparable duration to the North Saigon branch.
A recent survey conducted at the North Saigon branch revealed that 61% of retail employees reported experiencing emotional exhaustion, affirming their struggles across all nine survey items In contrast, the results from other branches indicated a significantly lower prevalence of this issue, highlighting a concerning trend within the North Saigon branch compared to its counterparts.
Number of retail employees attending the survey
Percentage of employees answering “Yes” for all 9 items of the survey
Table 9 – Result of emotional exhaustion survey in BIDV North Saigon branch and some other branch
To investigate the issue of emotional exhaustion, a survey developed by Maslach et al was utilized, focusing on four key questions Interviews were conducted with four retail employees from various branches, including Ms Trang from the Individual Customers department, Mrs Tim, the Vice Head of the Nhat Tao Transaction office, Mr Dung from the Go Vap Transaction office, and Ms An, a retail teller in the Individual Customers transaction department.
Due to the limitation of time, there are just 4 of 9 questions from the survey was chosen to conduct interview, including:
- Question 1: Do you feel emotionally drained from your work?
- Question 2: Do you feel used up at the end of the workday?
- Question 3:Do you feel fatigued when you get up in the morning and have to face another day on the job?
- Question 4: When working with people all day, do you feel it is really a strain for you?
The interview results reveal a strong connection among all participants to the issue of "emotional exhaustion." Detailed findings from the interviews can be found in Appendix 3.
A recent survey and interviews reveal that retail employees are experiencing significant emotional exhaustion This issue will be examined further to identify effective solutions for addressing it.
Importance of the problem-consequences and the validation
To assess the significance of emotional exhaustion, a series of interview questions was developed based on existing literature and definitions, targeting retail employees at BIDV North Saigon.
An interview was conducted with four retail employees from various departments, including Mr Huy and Ms Trang from the Individual Customers Department, Ms Tim, the Vice Head of the Nhat Tao Transaction Office, and Mr Trong from the Cong Hoa Transaction Office The detailed questions and answers from the interviewees can be found in Appendix 4.
Four key factors negatively impact employees and contribute to inefficiencies in retail operations: low job satisfaction, poor performance, work-family conflicts, and declining mental health.
Emotional exhaustion can significantly reduce job satisfaction, as highlighted by Wright et al and further elaborated by Clark et al., who describe job satisfaction as the utility an employee derives from their position Verhaest et al emphasize that lower job satisfaction correlates with decreased individual productivity Interviews reveal that employees express dissatisfaction with their salaries and workplace relationships, leading to feelings of boredom and a lack of motivation to excel in their roles.
According to Cordes et al., staff experiencing emotional exhaustion struggle to perform their tasks effectively, leading to poor service delivery Interviewees reported a lack of focus and frequent mistakes in even simple tasks, attributing this to a negative workplace environment This exhaustion often results in diminished determination and health, hindering their ability to complete their jobs Furthermore, statistical data indicates that the performance of retail operations at this branch is less efficient compared to the overall BIDV system and other branches in the Ho Chi Minh City region.
Research by Demerouti et al and Hall et al highlights a cyclical relationship between work-family conflicts and emotional exhaustion, where conflicts lead to exhaustion, which in turn exacerbates conflicts Greenhaus et al define work-family conflict as the difficulty of fulfilling family roles due to work obligations Interviewees, including Mrs Tim, reported frequent family issues stemming from their work schedules, with Mrs Tim expressing that her late hours and work on days off leave her little time for relaxation or family care This often leads to arguments with her husband about prioritizing family time Similarly, other participants struggle to meet family obligations due to their job commitments, creating an imbalance between work and life that fuels further conflict.
Research by Ramirez et al indicates that emotional exhaustion significantly impacts mental health, leading to increased stress and headaches among individuals Interviewees reported a rise in healthcare service usage and associated costs, highlighting a concerning trend Additionally, many retail employees experience sleep disturbances, with a notable prevalence of insomnia among this group.
Causes of problem and the validation
Emotional exhaustion can be attributed to various factors identified through interviews and existing literature To further validate these causes, a series of targeted questions were created for interviewing retail employees at the branch, with the interviews conducted on-site (Refer to Appendix 4)
Performance appraisal bias from leaders
Inaccurate performance appraisals can lead to employee dissatisfaction, as highlighted by Jawahar Moers emphasizes that bias in these evaluations complicates crucial personnel decisions like promotions Consequently, biased appraisals from leaders can diminish retail employees' motivation and negatively impact their emotional well-being Interviews with retail employees reveal a common sentiment: their leaders often fail to acknowledge their efforts and contributions adequately Furthermore, Bennis et al assert that team leaders play a significant role in shaping team members' behaviors by fostering and encouraging their competencies.
In an interview with Mrs Thuy, Head of Human Resources, it was revealed that retail leaders at the branch exhibit a lack of responsibility in managing their departments effectively She noted that their bureaucratic mindset, influenced by their backgrounds in state-owned enterprises, hinders their ability to propose innovative business strategies for departmental growth Consequently, this attitude has led to stagnation within the retail department, leaving employees feeling demotivated and unclear about the direction needed to meet business targets.
Work overload significantly contributes to emotional exhaustion among employees, as highlighted by Karatepe Parasuraman et al define work overload as the overwhelming perception of work demands coupled with insufficient time to complete them Iverson et al further describe it as the excessive job performance expectations that exceed reasonable limits Dormann et al identify various symptoms of work overload, including stress, headaches, sleep issues, irritability, and low job satisfaction Interviews with retail employees reveal that they frequently experience headaches and frustration with colleagues due to workplace pressure Additionally, these employees often work late into the night due to an excessive workload Compounding the issue, the inadequate information technology systems at BIDV require retail staff to manually prepare numerous reports at the end of each month or quarter, unlike many other banks in Vietnam that utilize automated reporting systems.
Coworker incivility significantly contributes to emotional exhaustion, as noted by Laschinger et al and Sliter et al Pearson et al describe this incivility as deviant behaviors with unclear intentions to harm, such as neglecting basic courtesies or raising one's voice Interviews with retail employees reveal frequent exposure to rudeness during conflicts, compounded by a lack of support from leaders, who often respond to mistakes with shouting rather than encouragement For instance, when one employee greets a colleague with a "hello" or a nod, a lack of response can exacerbate feelings of stress, leading to emotional exhaustion among retail staff.
The interviews revealed that while work overload contributes to the emotional exhaustion of retail employees, it is not the primary factor A significant issue identified is performance appraisal bias from leaders, stemming from BIDV's lack of a KPI system, a problem prevalent in many regional branches that cannot be resolved quickly Most interviewees acknowledged that coworker incivility is the leading cause of emotional exhaustion, highlighting it as a critical area for addressing the central business problem.
SOLUTION
Proposal of solution
To address the root cause of coworker incivility, interviewees propose four key solutions: implementing skill training courses for retail leaders, establishing a Branch Code of Conduct, organizing extracurricular activities, and facilitating regular collegial conversations within each retail department.
Creating skill training courses for retail leaders
To enhance sales performance, it is essential for sales managers to develop coaching competencies and provide effective supervisory feedback, as highlighted by Chakrabarty et al and Honeycutt et al Research indicates a positive correlation between increased training budgets and improved productivity, emphasizing training as a vital investment in human resources Implementing skill training courses for retail leaders can foster better relationships with subordinates, promote altruism, and reduce workplace stress These courses will also equip leaders with conflict resolution skills and will be conducted quarterly by experienced executives, ensuring that retail leaders gain valuable insights to improve management effectiveness in their departments.
Issuing Branch Code of Conduct
Mrs Hien, Deputy Director of Retail Operations, emphasizes the importance of implementing a Branch Code of Conduct to establish a cohesive internal culture and set behavioral standards among employees and leaders Research by Dubinsky et al and Nwachukwu highlights that a written code helps staff understand their responsibilities and expected behaviors, aligning them with organizational goals This Code of Conduct will serve as a reference point for all stakeholders, clarifying expectations and promoting respectful interactions between employees and leaders By defining appropriate behaviors, the Code fosters an equitable work environment and supports the branch's sustainable growth.
Coworker incivility occurs during interactions between employees, where one person exhibits uncivil behavior towards another, often resulting from poor communication and misunderstandings To mitigate this issue, Mr Hai, Head of the Individual Customers Department, suggests implementing extracurricular activities that encourage employees to engage with one another and foster better relationships with their peers and leaders These activities may include soft skills training and team-building exercises in local parks or remote locations Research by Ardahan et al highlights the benefits of outdoor activities, such as enhanced group dynamics, increased self-confidence, improved decision-making, and a greater sense of responsibility among individuals.
Developing essential skills can significantly enhance employees' behaviors both professionally and personally, offering everyone the chance for self-improvement The young and dynamic members of the Executive Committee of the Communist Youth Union bring valuable experience in event organization, such as year-end parties, and demonstrate creativity in extracurricular activities Consequently, it is advisable to integrate outdoor tasks with their primary responsibilities to maximize their potential and contributions to the company.
Organizing periodic collegial conversation in every retail department
Ford 37 highlights that organizational change is primarily driven by communication, underscoring the importance of conversations in facilitating change Mr Hai recommends organizing regular collegial discussions within each retail department to allow employees to voice concerns and identify weaknesses that need addressing to enhance operational effectiveness These discussions provide a platform for employees to share their frustrations and insecurities, fostering better understanding and collaboration among team members By directly confronting issues together, employees can work towards solutions that promote unity within the organization To create a relaxed atmosphere for open dialogue, these conversations should be held quarterly in a casual setting, such as a coffee talk.
Potential Solution Evaluation
To evaluate the feasibility of potential problems, the interview with Mr Thuy - Head of Human Resource department has been conducted
Mrs Thuy, the Head of Human Resources at the branch, emphasizes the importance of creating skill training courses for retail leaders, as current offerings from BIDV Headquarters primarily focus on operational knowledge, with limited emphasis on leadership and soft skills She believes that such training would enhance leaders' management capabilities However, she notes that hiring successful CEOs for these courses can be costly and challenging to schedule due to their busy agendas Additionally, she points out that leaders' established viewpoints, shaped by years of experience, may hinder the effectiveness of short-term training in altering their management mindsets.
The implementation of a Branch Code of Conduct is essential for enhancing the effectiveness of retail operations, as the previous General Code of Conduct issued by BIDV Headquarters focused primarily on employee-customer interactions, neglecting employee behavior among themselves According to researchers Hacker et al and Pierce et al., a well-defined code of conduct helps employees understand organizational expectations regarding acceptable behavior The Human Resource department will draft the Branch Code of Conduct with input from the Branch Board of Directors, ensuring it is shared with all employees for feedback After incorporating employee suggestions, the finalized Code will be disseminated and clearly explained to foster a collaborative branch culture where employees support one another in achieving common goals.
Implementing extracurricular activities can enhance retail employees' work experience by providing them with engaging tasks beyond their routine responsibilities The most favored suggestion from interviewees is to establish a dedicated team responsible for organizing these activities and internal events The Executive Committee member of the Communist Youth Union will oversee initiatives such as monthly gatherings, skills training, and team-building exercises With a budget cap of 200 million VND for the year, prioritizing skill training and team-building activities within the city is essential to minimize costs, rather than opting for remote events.
Organizing periodic collegial conversations in every department can provide opportunities for employees and leaders to engage in open discussions about disagreements However, many employees hesitate to voice their concerns publicly, fearing it may upset their leaders and jeopardize their chances for promotion Research by Peterson and Milliken indicates that employee silence is widespread across organizations, particularly in environments where top management has economic backgrounds, long tenures, and a high degree of worker similarity Consequently, employees often refrain from expressing their true feelings, which ultimately fails to address the root cause of issues like coworker incivility.
All the solutions suggested and their evaluation are summarized in the table below:
Create skill training courses for retail leaders
- Improve the ability of leadership, help create and maintain the good relationship with subordinates
- High cost to invite lecturer
- Hard to change retail leaders’ mindset in short-term through training course
Issue Branch Code of - Create the internal culture Accepted
Accepted /Not accepted Conduct and behavior principles in the branch
- Assures equal working environment for all employees and the sustainable growth for the branch
- Create chances for employees to meet and understand more about each other
- Organized by Member of Executive Committee of Communist Youth Union
- Received positive feedback from interviewees
Organize periodic collegial conversation in every retail department
- Opportunities for all employees to confess all the unsatisfied things in workplace
- Create chances for employees and leaders to discuss directly and frankly all disagreements
- Employees have tendency of not telling the truths
Table 10 – Solution suggested and evaluation
Action Plan
With the specific setting and job distribution at BIDV North Saigon Branch, Human resources department is responsible mainlyfor dealing with the problem
“emotional exhaustion” in retail operationwhich will last from the beginning of 2018 to December of 2018
To address the resource limitations identified in the branch analysis, two key solutions will be implemented: the introduction of a Branch Code of Conduct and the establishment of extracurricular activities.
In addition to the Human Resources department, several other key departments will participate in the planning process, including the Finance-Planning department, all retail divisions, the Board of Directors, and the Executive Committee of the Communist Youth Union within the branch.
With the purpose of officially applying solution from the beginning of 2018, detail timeline of the action is built as follow:
In early October 2017, the Head of the Human Resources Department addressed the Board of Directors regarding the issue of emotional exhaustion within retail operations This discussion highlighted the symptoms and evidence of the problem, outlined its potential consequences, and proposed an initial action plan to address the situation effectively.
The second week of October 2017: Human resources department issues document to make retail employees perceive the existing problem affecting
In the third week of October 2017, the Human Resources department drafted the Branch Code of Conduct and submitted it to the Board of Directors for review, leading to revisions that culminated in the finalized edition of the Branch Code of Conduct.
The last week of October 2017: Human resources department, Finance-
The Planning Department and Secretary of the Executive Committee of the Communist Youth Union in the branch are collaborating to develop a comprehensive plan for organizing extracurricular activities This initiative focuses on key aspects that enhance engagement and participation among youth, ensuring a well-rounded and impactful experience within the community.
- Setting up specific group responsible for organizing extracurricular activities in the branch
- Occasions to organize extracurricular in year
- The budget allowed to organize extracurricular activities
- Detail program for extracurricular activities (skill training, periodic team building, remote-area picnic)
The first week of November 2017: Human resources department sends the finished edition Branch Code of Conduct to all employees and collecting opinions till the end of November 2017
Week 2 of November 2017: Human resources department publicizes the plan of organizing extracurricular for all employees to evaluate till the end of November 2017
In the first week of December 2017, the Human Resources Department convened a meeting with relevant departments to gather feedback on the draft edition of the Branch Code of Conduct During this meeting, they also presented a detailed plan for organizing extracurricular activities within the branch, aiming to finalize the official action plan for implementation in 2018.
In the second week of December 2017, the official Branch Code of Conduct will be announced to all employees The Human Resources department will facilitate a training course for branch leaders to ensure the effective implementation of the Code of Conduct across all departments.
Quarter 1 and 2 of 2018: Official application of Branch Code of Conduct and program of organizing extracurricular activities in the branch
By the end of Q2 2018, a meeting was convened involving the Board of Directors, the Head of Human Resources, the Head of Finance Planning, the Secretary of the Executive Committee of the Communist Youth Union, and the heads of retail departments The purpose of this meeting was to conduct a detailed evaluation of the implemented solutions and to propose any necessary adjustments.
The summary of Action Plan is performed in the graph below:
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Symptoms
Mrs Hien - Deputy Director of Retail Operation
In an interview with Mrs Hien, an MBA student from ISB seeks to identify potential issues in the retail operations of their branch while working on their thesis The student emphasizes the importance of understanding these challenges and exploring possible solutions, assuring that all shared information will remain confidential.
Respondent (R): Yes, I can give some of my idea
I: Thank you very much First of all, can you share something about any disadvantage in retail operation that you have faced during these time?
Retail employees frequently arrive at work looking fatigued, and many tellers often fail to smile or exhibit a positive attitude during customer transactions The relationships among employees, as well as between employees and their leaders, appear to be strained, contributing to an uncomfortable work environment within the branch.
So I think there’s something happen to employees’ emotion when they’re working
I: So is it affected to performance of retail operation?
The branch has faced numerous customer complaints regarding retail employees, particularly retail tellers Despite multiple warnings issued to the retail staff about this ongoing issue, there has been no noticeable improvement in the situation.
I: So can you assume exactly what’s the problem happening in retail operation?
Retail employees often experience low morale and emotional exhaustion, which can be attributed to their working conditions and the overall environment of the branch.
I: Thank you very much for the information
Mrs Ngan – Head of Nhat Tao transaction office
In an interview with Mrs Ngan, I sought her insights on potential issues in our branch's retail operations as part of my MBA thesis at ISB I emphasized the importance of identifying any existing problems and exploring possible solutions Assuring her of confidentiality, I requested her assistance in answering several questions to gain her perspective on the matter.
I: What do you feel about working in the branch, especcially in retail operation??
R: It’s good that we can learn a lot from the variety business activities However, in the same time, we have to work with the limitation of business process
I: Can you explain more about this?
The business processes at BIDV appear illogical and confusing for employees, particularly in the retail credit department Employees are burdened with the dual task of completing credit documentation and obtaining notarization at authority offices, which significantly limits their ability to focus on acquiring new customers and expanding the customer base.
I: And this business process affect negatively employees’ performance, right?
Excessive pending credit documents often lead to customer complaints, placing significant pressure on retail credit employees and increasing their work-related stress In contrast, other banks have dedicated departments that handle the notarization of credit documents, allowing employees to focus on acquiring new customers and alleviating their workload Additionally, BIDV's outdated information technology system prolongs customer transactions and necessitates more manual tasks for employees Consequently, retail employees at the branch face a challenging work environment due to these complicated processes.
I: Thank you very for your information
Mr Hai – Head department of Individual Customers
In an interview with Mr Hai, I sought to address potential issues in the retail operations of our branch as part of my MBA thesis at ISB I aimed to identify any existing problems and propose effective solutions, emphasizing the confidentiality of the information shared Mr Hai's insights were crucial for understanding the operational challenges we face.
Respondant (R): Yes, Please get started
I: What do you feel about working in the branch, especcially in retail operation?
R: It’s fine The job is quite pressure but benefit is good However, there’re some not good points need to be improved
I: Can you share with me?
I frequently receive complaints from customers regarding the behavior of employees in my department, who often display an improper attitude during interactions and appear to lack sufficient knowledge when advising on banking products.
I: Well, based on some analysis, I also found out that retail operation of the branch is inefficient in comparison with entire BIDV system and other branches in HCM City
R:Really? I’m really supprised for that
I: Yes, So what problem do you think that leads to this situation?
The current situation appears to stem from the branch's flawed recruitment policy, where some retail employees have been hired primarily due to personal relationships with branch leaders, rather than their qualifications for the role.
I: Really? How can you assure that those employees are not qualified for their job?!
I frequently receive complaints from customers regarding the behavior of employees in my department Many of them exhibit unprofessional attitudes during customer interactions and demonstrate a lack of knowledge when advising on banking products Consequently, these issues hinder our employees' ability to meet the objectives established by management.
I: So what is solution to deal with those employees?
Despite facing punishment, employees experience only a reduction in salary while remaining in their positions, which exacerbates inefficiency within the department.
I: Well, I see that point Thank you very much for your information
Mr Hung – Former retail employee at Individual Customers Department
In an interview with Mr Hung, the interviewer, currently enrolled in an MBA program at ISB, seeks to identify potential issues within the retail operations of their branch for their thesis The aim is to clarify existing problems and propose effective solutions, emphasizing the confidentiality of the information shared during the discussion.
I: What do you feel about working in retail operation of BIDV North Saigon branch?
For recent graduates, engaging in diverse business activities offers valuable learning opportunities However, challenges related to the working environment within the branch can pose difficulties.
I: Can you express more detail?
I struggled to get along with my coworker, who was quite selfish and focused solely on their own tasks, resulting in a lack of support among employees Additionally, my former leader provided no encouragement and frequently shouted at me, despite my efforts to meet targets This environment of emotional stress ultimately led me to the decision to leave the branch.
Mrs Thuy -Head department of Human Resource of the branch