(LUẬN văn THẠC sĩ) low job satisfaction in sacombank – ky hoa transaction office

UNIVERSITY OF ECONOMICS HO CHI MINH CITY International School of Business TA THI DIEP TAN LOW JOB SATISFACTION IN SACOMBANK – KY HOA TRANSACTION OFFICE ID: 22130064 MASTER OF BUSINESS ADMINISTATRION SUPERVISOR: Dr LE NHAT HANH Ho Chi Minh City – Dec, 2016 TIEU LUAN MOI download : skknchat@gmail.com TIEU LUAN MOI download : skknchat@gmail.com TABLE OF CONTENT ACKNOWLEDGEMENT EXECUTIVE SUMMARY CHAPTER 1: COMPANY INTRODUCTION 1.1 General Information about Sacombank 1.2 Company details 1.3 Organization chart CHAPTER 2: PROBLEM IDENTIFICATION 2.1 Problem context 2.2 General symptoms 2.2.1 The first symptom: High employee turnover 2.2.2 The second symptom: Decreasing in profit 11 2.3 Identifying and Diagnosing Tentative Problems 14 2.3.1 The first potential problem: Low satisfaction in training and development opportunity 15 2.3.2 The second potential problem: Low satisfaction in salary, compensation, and benefits 16 2.3.3 The third potential problem: Low satisfaction in job security and promotion opportunity 16 2.3.4 The fourth potential problem: Low satisfaction in relationships with other employees and supervisors 17 2.4 The real problem: Low job satisfaction 17 2.5 Verifying the importance of job satisfaction 18 TIEU LUAN MOI download : skknchat@gmail.com 2.6 Verifying the existence of real problem: Low job satisfaction in Sacombank 19 2.7 Causes and Effects chart of real problem: Low job satisfaction in Ky Hoa 23 CHAPTER 3: ALTERNATIVES ANALYSIS AND POSSIBLE SOLUTIONS 25 3.1 Justify the importance of the causes 25 3.2 Recommended Solutions 27 3.1 Solution 1: Increasing employee motivation by improving workplace harmony 27 2.2 Solution 2: Increasing employees’ professional skills and career development through training and development plans 28 2.3 Solution 3: Motivating employee by a better performance and reward system 30 CHAPTER 4: SUPPORTING INFORMATION 34 4.1 Questionnaires of employees’ satisfaction 34 4.2 Customers’ interviews 39 4.3 Manager’ interviews 43 4.4 The results of the focus group interview to justify the main causes: 46 REFERENCES TIEU LUAN MOI download : skknchat@gmail.com ACKNOWLEDGEMENT I am grateful to my supervisor, Dr Le Nhat Hanh, whose expertise, understanding, generous guidance and support made it possible for me to work on a topic that was of great interest to me It was my pleasure working with her I am very thankful to Managers and Directors of Sacombank for give me time to response to my questions for being ever so kind to show interest in my research and for giving their precious and kind advice regarding to my topic I would like to express my gratitude to co-workers at Sacombank Ky Hoa bank for being so generous to reply to my questionnaires Words can never be enough to thank your all kindness TIEU LUAN MOI download : skknchat@gmail.com EXECUTIVE SUMMARY Ky Hoa Transaction Office (Ky Hoa) of Sacombank located in Su Van Hanh Street, District 10, Ho Chi Minh City is one of the top transaction offices of Sacombank, the top biggest public commercial bank in Vietnam The transaction office has impressive growth since the very first day of business It achieved the title of “Potential Transaction office”, a very honor title for a transaction office of Sacombank, place them equivalent to many branches, which usually included the branches and many smaller transaction offices However, Ky Hoa’s management team still unsatisfied with the result of its business Despite the great growth of many aspects like customer base, customer deposit and saving, services fee, foreign exchange business…, Ky Hoa’s profit still under performance as pointed out by both the management team of this transaction office and Sacombank headquarter As profit is the key to the survival of any business, lacking of profit means the future of Ky Hoa is in danger In order to figure out the problem with this transaction office, the full scale of problem finding methods have been conveyed including interview with Ky Hoa management team; managers of others transaction office of both Sacombank and competitors; focus group with all the related employees of Ky Hoa; and combined with related market condition and literatures After all these step, the lacking of employee satisfaction of Ky Hoa (especially the employees of credit department) that lead to the symptom of low credit growth rate is the main problem of this transaction office The possible cause of the problem also pointed out in according with the KPI of KY Hoa Credit department: the inexperience and limited knowledge of the Bank credit TIEU LUAN MOI download : skknchat@gmail.com services of credit employees; the satisfaction of employees on salary, work load, benefits and promotion opportunities; and lack of guidance from supervisors Therefore, the first solution for this problem is improving the knowledge of the bank’s services for both the sale team and management team After that, the frequently KPI check for each of employee will be conveyed as the standard for credit department There should be some type reward, visible and recognizable reward for the good work of employee In the mean time, anyone who could not qualified or did not show significant improvement will be replaced by more competent candidates For these solutions to be effective, the management team and supervisors also need to be restructured as creating the competing environment, providing guidance and encouragement for all members to achieve both personal and department targets In other word, the harmony in working environment is the key to balance the need of employees, manager, superviors and customers TIEU LUAN MOI download : skknchat@gmail.com CHAPTER 1: COMPANY INTRODUCTION 1.1 General Information about Sacombank Sai Gon Thuong Tin Commercial Joint Stock Bank (Sacombank) was established in 1991, currently one of the top Vietnamese joint stock banks In term of charter capital, it is reaching over 14,000 billion VND and the rank is in the top ten of biggest private banks in Vietnam regards as large amount of capital Currently, Sacombank have 448 Transaction Offices from many big cities to small rural areas such as Hanoi, Danang, Ho Chi Minh City, Cu Chi and An Giang Sacombank’s team of professional ability provides banking services a large amount of customers from individual, personal banking service to companies like exporters or importers and Small and medium enterprises (Statebank, n.d.) Sacombank is accepted to be a member of Visa Card network and many reputable financial institutions With roughly 13,000 employees, Sacombank locates its head office at the downtown in Ho Chi Minh City This bank is increasingly becoming the valuable choice of many enterprises as well as thousands of individuals (Sacombank, n.d.) In order to determine problem existence, a preliminary assessment of financial report was released as displayed in Appendix A random key managers or employees of Sacombank were selected to join in this survey and the results (Appendix 1) showed that apart from customer profile and preliminary assessment (Sacombank, n.d.) One more thing, the figure from financial report can be shown out the performance of employee in certain stance The decrease of credit growth tends to be increased in relation to the last quarter or the same quarter of last financial report Mostly, the gap between borrowing and lending are tend to be higher while Sacombank strategy has been create many unique sale point to produce several sustainable competitive TIEU LUAN MOI download : skknchat@gmail.com advantage for its product (Sacombank, n.d.) Although its advantages are quite significant, the sale team or the volume of sale has been improved in terms of credit growth Meanwhile, a client survey was carried out with the purpose of take a 360-degree point of view about these problems (Sepehri & Akram-lodhi, 2005) In addition, after several survey and deeply research with the clients or the supervisors, Ky Hoa Transaction Office was identified many phenomenon’s from low productive and incompetent credit sale to heavily job-unsatisfaction of many of its employees Comparing with the size and the benchmark of another transaction office, the potential value and operation profit were under expected and the effect growth comparing with June 30th was not positive number A client survey can quickly recognize the issues with individual or group In Ky Hoa Transaction Office of Sacombank, client or enterprises are main businesses customers Once again, the feedback from customers was undervalued in many aspects Overall customer services of the Transaction Office not satisfy the standard of service requirements Several negative responses mean employee performance is not exceeding expectations Besides, the quality of work is one of the evident for those problems The standard that can be measuring employee performance seems to be lower The work is likely to carry out in higher length of time or lower than average commitment Those indicators above were come from the results the interview with chief operational officers of Sacombank (Appendix) After those researching and clarify this phenomenon, I truly realize that low performance among employee, which is defined as the main place where a bank's revenue was born by strategic management and professional service (Tu, Ha & Yen, 2015) It is a hot issue in the view of competitive environment, especially in the dynamic economy in Vietnam and has great impact on the sustainable growth (Chinh & Anh, 2008) Thus, I would like to a research about this TIEU LUAN MOI download : skknchat@gmail.com issue at this Ky Hoa Transaction Office with the purpose of improving the situation Productive employees are the lifeblood of any banking system It is necessary to assess the performance level in order to comprehend and evaluate the employees 1.2 Company details Sacombank Head Office Address: 266 - 268 Nam KY Khoi Nghia Street, Ward 8, District 3, HCMC Tel: (+84) 83 9320 420 Fax: (+84) 83 9320 424 Email: info@sacombank.com Swift: Code: SGTTVNVX TIEU LUAN MOI download : skknchat@gmail.com due to the fact suitable reward getting better salary packages based on fee from other my extremely good competitors I think performance will be a that employees need way to preserve me to good benefit spending extra effort Then, they can to the company’s concentrate on goals on their result working, spending more effort into work Otherwise, they will depart if there is higher offer Yes I think that Yes If employee’s Yes, the financial assume “Training career development profession developed institution wishes and profession job is important for with the bank to improve promotion” affect employees after few development, the learning the degree of years of working In worker will locate the opportunity for employee my case, just wanted engagement with that their staff, so they engagement? Please to work for a place I am can follow extra explain extra detail company, where I appreciating the new of your opinion can use my enterprise that spends understanding knowledge, and effort to strengthen whilst looking for What you 48 TIEU LUAN MOI download : skknchat@gmail.com have true salary my capabilities via and retaining Now, I center of education format customer In attention on return, employee improvement can method new possibilities for explore ability to promoting pursuit their possibilities profession path Training assist team of workers to strengthen ability, and work properly What you Yes, I want creative Yes In working think “Working and free to job, environment, the environment” affect but nevertheless in manager empowers the stage of worker the job scope In my their worker to engagement? bank, the big function job, or Explain more details customer solely contact directly to your opinions contacts with my large clients when supervisor, but I they trust in them and hope that I will have their ability Trust opportunities to every other is the communicate factor of each without delay with wonderful No ideas 49 TIEU LUAN MOI download : skknchat@gmail.com them to show my relationship ability I no longer desire to everything my manager requires Besides, taking responsible for very own choice with assist and worker increase belonging feeling to the bank What you Yes I suppose if the Yes, sure The Yes Staff can't suppose “Perceived employee receive worker can't get the work without organizational and help from end result as expected guide from managerial level organization, besides guide from colleague and support” have an especially from their supervisor and co- manager I effect on the level of manager, is proved worker Furthermore, assume that employee that their supervisor organization facility advantageous engagement? Please take care of their also influences the relationship with explain more detail employees Timely degree of employee’s them is very your opinion manager’s focuses engagement Now necessary That on workers ACB not glad relationship is the ‘contribution about elevator only purpose for 50 TIEU LUAN MOI download : skknchat@gmail.com Truthful in doing quality, parking overall performance region and employer assessment make me cannot still solve joyful about my these issues supervisor even completely It will though some not create the ideal managers still bias company’s me to go to work reputation What you In my view, staff Yes I suppose job I not suppose assume “Job prefers to characteristic would so, when Characteristic” understand what possibly have an employees affect the stage of their jobs and effect on to my practice for work, employee responsibilities, and engagement If I they might know engagement? how the job is run not understand about the job Explain extra Job characteristics client’s demand, or characteristic It element your have affected the recognize my may affect the job opinion engagement with position and duty, deciding on employees’ mistake will be however no working without problems longer for happened How I engagement carry out job is very vital 51 TIEU LUAN MOI download : skknchat@gmail.com Which No comment No comment No comment - Reward and -Training and career -Training and arrange the factor Recognition development career that have an effect Programs elements have an effect on the level of low worker engagements that no longer listing in this discussion? Please on the level of low worker engagement - Training and career development - Work environment - Reward and Recognition development - Work environment according to the -Work environment Programs - Reward and level of importance, give element provide -Perceived - Perceived an explanation for organizational and organizational and your choice? supervisor support supervisor support - Job Characteristic - Job Characteristic Recognition Programs - Perceived organizational and supervisor support - Job Characteristic 52 TIEU LUAN MOI download : skknchat@gmail.com What you Provide advantage Clear career path for Clear job think about any bundle for all staff, every position description and contributions to not solely for the decorate the stage of experienced low employee engagement in Ky Hoa Transaction Office? Let the center management stage in career course for all position Develop a training choice making Cash out bonus graph fit with process timely character improvement plan Support employees whilst they are becoming a member Have an captivating income range Succession planning for manageable sources of the classification 53 TIEU LUAN MOI download : skknchat@gmail.com 54 TIEU LUAN MOI download : skknchat@gmail.com REFERENCES Aken, J E., Berends, H., Bij, V., Van B., & Joan, E (2007, January 25) Problem solving in organizations Cambridge University Press, p 25 Available from http://dx.doi.org/10.1017/CBO9780511618413 Chinh, V T M., & Anh, N V (2008) Measuring customer satisfaction based on service quality gap at a local bank in Vietnam Journal of International Business Research, 7(2), 27-51 Coudert, V., & Pouvelle, C (2010) Assessing the sustainability of credit growth: The case of central and eastern european countries The European Journal of Comparative Economics, 7(1), 87-120 doi: 727604804.63189 Carmen, B C., Enrique, M A., & David, M R (2004) The influence of employee organizational citizenship behavior on customer loyalty International Journal of Service Industry Management, 15(1), 27-53 doi: 233641606.63189 Chaita, M V (2014) The impact of employee attitudes on job satisfaction: A comparative study of university professors in the northwest region of england International Journal on Global Business Management & Research, 3(1), 2-12 Cohen, L (2003) Loyalty based portfolio choice Chicago: University of Chicago Dotan, H (2007) Friendship ties at work: origins, evolution and consequences for managerial effectiveness Los Angeles: University of California Matly, L., & West, H (2005) Commercial bank financing of white and black-owned small business start ups Quarterly Review of Economics and Business, 1(3), 10-15 Pham, T T T (2015) Does exporting spur firm productivity? Evidence from Vietnam Journal of Southeast Asian Economies,32(1), 84-105 TIEU LUAN MOI download : skknchat@gmail.com SOLUTION FOR CREDIT GROWTH IN KY HOA TRANS O'Connor, D (2000) Financial sector reform in China and Viet nam: A comparative perspective Comparative Economic Studies,42(4), 45-66 doi: 204145139.63189 Kaliski, B.S (2007) Encyclopedia of business and finance Detroit: Thompson Gale Koys, D J (2001) The effects of employee satisfaction, organizational citizenship behavior, and turnover on organizational effectiveness: A unit-level, longitudinal study Personnel Psychology, 54(1), 101-114 doi: 220136421.63189 Hayat, M., Khalid, G K., & Malik, A (2010) Job satisfaction among national highway authority employees International Review of Business Research Papers, 6(1), 319-330 Herzberg, F (1976) Motivation-hygiene profiles Organizational Dynamics, 3(2), 18-29 Lancaster, S., & Di Milia, L (2014) Organisational support for employee learning European Journal of Training and Development, 38(7), 642 Lee, J J., & Ok, C (2011) Effects of workplace friendship on employee job satisfaction, organizational citizenship behavior, turnover intention, absenteeism, and task performance Kansas: Kansas State University Sepehri, A., & Akram-lodhi, A (2005) Transition, savings and growth in Vietnam: A threegap analysis Journal of International Development, 17(4), 553-574 Statebank (n.d.) Retrieved July 19, 2015, from http://www.sbv.gov.vn/portal/faces/en/enpages/public/areports;jsessionid=zZPtVT1cm z3XCjQLVjnX3TG6C2w2TkLh48jRyLZZXpqndwM9FpT1!-1905113511!952516252?_afrLoop=9121961526167835&_afrWindowMode=0&_afrWindowId=null #%40%3F_afrWindowId%3Dnull%26_afrLoop%3D9121961526167835%26_afrWind owMode%3D0%26_adf.ctrl-state%3Djywo1dfhx_4 Sacombank (n.d.) Retrieved May 19, 2015, from https://www.sacombank.com.vn/en/intro/Pages/Establishment-and-Deveplopment.aspx TIEU LUAN MOI download : skknchat@gmail.com SOLUTION FOR CREDIT GROWTH IN KY HOA TRANS Sahinidis, A G., & Bouris, J (2008) Employee perceived training effectiveness relationship to employee attitudes Journal of European Industrial Training, 32(1), 63-76 doi:http://dx.doi.org/10.1108/03090590810846575 Statt, D (2004) The routledge dictionary of business management Detroit: Routledge Publishing Spicer, D (2010) 10 factors creating job satisfaction: what motivates now? Bradford: University of Bradford Susan, M G (2003) Eployee development: An examination of service strategy in a highcontact service environment Production and Operations Management, 12(2), 186-203 Pablo, M L., Yolanda, P R., & Javier, S O (2006) The impact of customer relationship characteristics on customer switching behavior Managing Service Quality, 16(6), 556574 doi:http://dx.doi.org/10.1108/09604520610711909 Tu, T T T., Ha, N P., & Yen, T T H (2015) Socio-economic impact of rural credit in northern vietnam: Does it differ between clients belonging to the ethnic majority and the minorities? Asian Social Science, 11(10), 159-167 Thanh, V H., & Ha, N M (2013) The effect of banking relationship on firm performance in vietnam International Journal of Economics and Finance, 5(5), 148-158 Yong-Ki, L., Jung-Heon, N., Park, D., & Lee, K A (2006) What factors influence customeroriented prosocial behavior of customer-contact employees? The Journal of Services Marketing, 20(4), 251-264 doi:http://dx.doi.org/10.1108/08876040610674599 Wheatley, M (2006) Leadership and the new science, discovering order in a chaotic world San Francisco: Berrett-Koehler TIEU LUAN MOI download : skknchat@gmail.com Appendices Appendix Total Asset balance Sheet updated June in 2015 of Ky Hoa Transaction Office of Sacombank NGAN HANG TMCP PHUONG NAM PGD SU VAN HANH BANG TONG KET TAI SAN TU 31/12/2014 DEN 30/06/2015 Don vi: Trieu Dong TAI SAN CO 31/12/2014 30/06/2015 TAI SAN NO 1/ Cho vay cac T/chuc kinh te 655,637 674,692 1/ Von va cac loai quy A.Ngan han 660,528 679,532 A Von dieu le - Trong : No Qua Han B Trung han - Dai Han 30/06/2015 B Thang du von co phan 204 169 C.Co phieu quy - Trong : No Qua Han D Von khac C Cac Khoan No Cho Xu Ly D Du phong rui ro 31/12/2014 E Cac quy cua TCTD (5,095) (5,009) 2/ Tien gui cua khach hang 2/ Cho vay cac TCTD khac - Tien gui toan 3/ Hun von, Mua Cp, Ldoanh 969,044 1,081,334 29,782 54,312 - Tien gui tiet kiem VND 908,908 1,009,584 - Voi Cac To Chuc Kinh Te - Tien gui tiet kiem ng.te 30,354 17,439 - Voi Cac To Chuc Tin Dung - Chung chi huy dong vang Cvon cho Cty truc thuoc - Tien gui ky quy 4/ Mua Ban TPKB, Chung khoan, CP - Giay to co gia 5/ Tien Gui O Nh Nha Nuoc 3/ Tien gui cua cac TCTD 6/ Tien Gui Tai Cac TCTD Khac 4/ Vay Ngan Hnag Nha Nuoc 7/ Cong cu tai chinh phat sinh 8/ Von Uy Thac Dau Tu 9/ Ngan Phieu Thanh Toan 10/ Tien Mat, Ngoai Te, Vang - Tien Mat - Ngoai Te - Chung tu Co G/tri Nte - Vang 11/ Tai san co dinh - Trong do: Nguyen gia Tscd 12/ Tai San Co Khac 5/ Vay cac TCTD khac 6/ Von uy thac dau tu 7/ Cac khoan no khac 8/ Du phong rui ro khac 9/ Cong cu tai chinh phat sinh 10/ Chenh lech ty gia 11/ Chenh lech danh gia tai san 12/ Lai/lo nam truoc 13/ Lai/lo nam 13,546 17,062 28,280 14,496 1,010,871 1,112,892 CAN SO 2,771 2,166 605 2,826 2,249 577 818 1,241 351,645 720 1,241 434,654 1,010,871 1,112,892 CAN SO TIEU LUAN MOI download : skknchat@gmail.com Appendix Financial Report updated June in 2015 of Ky Hoa Transaction Office of Sacombank TIEU LUAN MOI download : skknchat@gmail.com TIEU LUAN MOI download : skknchat@gmail.com TIEU LUAN MOI download : skknchat@gmail.com TIEU LUAN MOI download : skknchat@gmail.com ... since the slowing down of banking jobs in Vietnam However, we should maintain the rate at possible range I’m suggesting the board for a plan to investigate further into Ky Hoa? ??s transaction office. .. in Ky Hoa Transaction Office? Interview in focus group: Table Group Interview descriptions Question Van Trang Ky Yes Ky Hoa Yes, I suppose Yes In my view, suppose “Reward Transaction office income... Manager’ interviews The Q&A interviews with Ky Hoa transaction office managers and branch manager: Mr Dai – Ky Hoa? ??s deputy manager - As a deputy manager of Ky Hoa? ??s transaction office, how you think