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THE INFLUENCEOFCORPORATECULTUREOFVIETNAMESE
COMPANIES: ASTUDYOFCORPORATIONFPT
BY
NGUYEN KHANH LY LY
Graduation Project Submitted to the Department of Business Studies, HELP
University College, in Partial Fulfillment ofthe Requirements for the Degree of
Bachelor of Business (Accounting) Hons
APRIL 2011
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Declaration of Originality and Word Count
––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––
DECLARATION
I hereby declare that the graduation project is based on my original work except for
quotations and citations which have been duly acknowledged. I also declare that it
has not been previously or concurrently submitted for any other course/degree at
HELP University College or other institutions. The word count is 16,195 words.
Nguyen Khanh Ly Ly
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ACKNOWLEDGEMENTS
First and foremost, I would like to convey my special thanks to Ms. Dao Thi
Thu Giang, my supervisor, for her guidance, suggestions and encouragement during
the writing of my thesis. Without her help, this thesis would not have been able to be
completed.
Secondly, I would like to express my gratitude to all lecturers at International
School Vietnam University for their teaching dedication and support. All knowledge
and skills that I gained during my study have laid the foundation for me to
accomplish my thesis as well as to pursuit further education in the future.
Thirdly, I would like to sincerely thank all the employees and leaders in FPT
corporation), especially the members ofFPT Software, FPT University, for their
comments and data provision for their suggestion to complete this thesis.
Last but not least, my sincere thank goes to my parents and my friends for
their constant assistance and encouragement during my preparation for this thesis.
Hanoi, April, 2011
Nguyen Khanh Ly Ly
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ABSTRACT
THE INFLUENCEOFCORPORATECULTUREOFVIETNAMESE
COMPANIES: ASTUDYOFCORPORATIONFPT
By
NGUYEN KHANH LY LY
April 2011
Supervisor: Dr. Dao Thi Thu Giang
Corporate culture has many definitions as it is heavily influenced by the
industry in which it operates, geographical location, history, employee personalities,
etc. Some formal definitions have arisen, but essentially acorporateculture has
several key elements: it offers a clear corporate vision; it is supported by corporate
values consistent with the aims ofthe company and aligned with the personal values
of organization members; a high value is placed on employees at all levels and there
is extensive employee interaction across many levels; and theculture is adaptable,
adjusting to external conditions, and consistent, treating all employees equally and
fairly. That is the motivation for the researcher to conduct the survey about the
influence ofcorporatecultureofVietnamese companies. The objective of this study
is to access the understanding ofVietnamesecompanies on the topics ofcorporate
culture, and FPT is typical example.
By conducting the research, the research is able to show that the
understanding ofcorporateculture concepts and its importance in companies. The
readers have little basic knowledge ofcorporate culture. Besides that, from
analyzing, evaluating and finding the author found out the strong as well as the week
points to draw lessons for Vietnam companies.
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TABLE OF CONTENTS
Page
Declaration ii
Acknowledgements iii
Abstract iv
Table of contents v
List of figures and tables ix
List of abbreviations xv
CHAPTER 1 INTRODUCTION 1
1.1 Study background 1
1.2 The objectives ofthestudy 2
1.3 The research question 2
1.4 Design ofthestudy 2
CHAPTER 2 LITERATURE REVIEW 4
2.1 Definition ofcorporateculture and its elements 4
2.1.1 Definition ofCulture 4
2.1.2 Definition ofcorporateculture 4
2.1.3 Elements affecting corporateculture 6
2.1.3.1 National culture 6
2.1.3.2 Role of leadership 6
2.1.3.3 Affections of business environment 7
2.2 The model of Edgar H. Schein 8
2.2.1 Artifact 10
2.2.1.1 Mission Statement 10
2.2.1.2 Architecture 11
2.2.1.3 Narrative 11
2.2.1.4 Language 12
2.2.1.5 Ceremonies 12
2.2.1.6 Norms of behavior 13
2.2.1.7 Symbol 13
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2.2.2 Espoused value 14
2.2.2.1 Vision 14
2.2.2.2 Mission 15
2.2.2.3 Core Value 16
2.2.3 Basic Underlying Assumptions 16
2.2.3.1 People’s relationship with natural environment 17
2.2.3.2 The temporal focus of human life 17
2.2.3.3 The innate character of human nature 18
2.2.3.4 The modality of human activity 18
2.2.3.5 The modality ofa person’s relationships to others 19
2.3 The model of Geert Hofstede 19
2.3.1 Process – oriented versus Result oriented 19
2.3.2 Job – oriented versus Employee – oriented 20
2.3.3 Professional versus Parochial 21
2.3.4 Opened versus Closed 21
2.3.5 Tight versus Loose 22
2.3.6 Pragmatic versus Normative 23
CHAPTER 3 METHODOLOGY 24
3.1 Research methodology 24
3.2 Research tools: Primary data: 25
3.2.1 Observation. 25
3.2.2 Interview 25
3.2.3 Sampling 26
3.3 Limitations of thesis 27
CHAPTER 4 ANALYSIS 28
4.1 The history of forming corporateculture in FPT 28
4.1.1 The process of building corporateculture in FPT 29
4.1.2 Key Ideology 29
4.1.3 STCo culture 30
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4.1.4 Gen FPT 31
4.1.5 FPT Spirit 32
4.2 Analyzing FPTcorporateculture 32
4.2.1 Performance ofFPTcorporateculture according to the model of Edgar H.
Schein 32
4.2.1.1 Artifact 32
a. Mission Statement 32
b. Architecture 33
c. Narrative 35
d. Language 36
e. Ceremonies 37
f. Norms of behavior 39
g. Symbol 39
4.2.1.2 Espoused value 42
a. Vision 42
b. Mission 43
c. Core Value 44
4.2.1.3 Basic Underlying Assumptions 45
a. People’s relationship with natural environment 45
b. The temporal focus of human life 46
c. The innate character of human nature 46
e. The modality ofa person’s relationships to others 47
4.2.2 Performance ofFPTCorporationculture according to the model of Geert
Hofsteed 47
4.2.2.1 Process – oriented versus Result oriented 47
4.2.2.2 Job – oriented versus Employee – oriented 48
4.2.2.3 Professional versus Parochial 49
4.2.2.4 Opened versus Closed 49
4.2.2.5 Tight versus Loose 50
4.2.2.6 Pragmatic versus Normative 50
4.3 The valuation ofFPTcorporateculture and the experienced lessons from
building FPTcorporateculture for Vietnam enterprises 51
4.3.1 Evaluating FPTcorporateculture 51
4.3.1.1 Risks coming from inside 51
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4.3.1.2 Risks coming from outside 52
4.3.1.3 Achievements 53
4.3.2 Awareness ofcorporateculture in Vietnam enterprises (Actual situations
of corporateculture in Vietnam) 53
4.3.3 The necessary of building corporateculture in Vietnam and the roles of
CC in business 57
4.3.3.1 The necessary of building corporateculture in Vietnam 57
4.3.3.2 The roles ofcorporateculture in business 58
4.3.4 The useful lessons for leaders in Vietnam enterprises 59
4.3.4.1 Improvement on awareness ofcorporateculture 59
4.3.4.2 Building corporateculture for long term target 59
4.3.4.3 Preserving and promoting corporateculture 60
CHAPTER 5 CONCLUSION 62
5.1 Conclusion 62
5.2 Recommendation 63
REFERENCES 64
APPENDIX 66
APPENDIX 1 OPEN-ENDED QUESTIONS OF INTERVIEW 66
APPENDIX 2 OPEN-ENDED QUESTIONS OF INTERVIEW 67
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LIST OF FIGURES AND TABLES
Firgure 2.1 Elements ofcorporateculture 9
Figure 4.1 Mission statement ofFPT 33
Figure 4.2 FPT Pham Hung building 34
Figure 4.3 – 4.4. Settings in one FPT working room 35
Firgure 4.5- 4.6. Ceremonies in FPT 38
Firgure 4.7 Men are given flowers in FPT 38
Firgure 4.8 – 4.9 Colors ofFPT from outside to inside 41
Figure 4.10 – 4.11. Dressing code in FPT 41
Table 1: Evaluation scale offptcorporationculture by hofstede model 51
Table 2: Awareness ofthe concept of enterprise culture 54
Table 3: Perceptions ofthe role of business culture 55
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LIST OF ABBREVIATIONS
CC
Corporate Culture
CMMI
Capability Maturity Model Integration
Dr
Doctor
FPT
Food Processing Technology
ISO
International Organization for Standardization
PhD
Doctor of Philosophy
VCCI
Vietnam Chamber of Commerce and Industry
WTO
World Trade Organization
[...]... artifact At the surface, they are visible artifacts and observable behaviors – mission statement, architecture, narratives, language, ceremonies, and norms of behavior and symbols that are shared All of them are tangible and audible results of activity that are grounded in values and assumptions The second level which the author can hardly observe is espoused values Espoused values are the rules, the. .. to the world, organizations belong to society, family members belonging to their ethnic, culture and business of each is also part of national culture In the growing process of corporate, national culture always has impacted (direct or indirect) on many different aspects of thecultureofthe corporate That explains why there is a difference between West and East corporate cultures, thecorporate culture. .. people have a thorough understanding of what CC is and what corporateculture covers; people, therefore, have not found the effective way to manage a company and comprehend the exact way in which a company operates In Vietnam, after “Doi moi”, a few businesses have built themselves a strong cultureThe aim of this study is to assess the influenceof CC in Vietnamesecompanies And with the purpose of study. .. 2.2.1.3 Narrative Narratives are based on true events that are shared among organizational employees and told to new employees to inform them about acorporate or an organization Passing the long term of time, stories still keep alive the primary values ofthecorporate Storytelling is a powerful tool in organizational learning as well in that they communicate implicitly organizational values It also plays... smaller categories such as: national culture, business culture, organizational culture, corporateculture and et cetera Since 1980s, studying about corporateculture has been carried out from America and been built and developed strongly by Japanese This trend emerged as the owners of corporations realized that they needed to change the approach to their corporations Before that, the only way they could... companies to build their own separate culture, contributing to improve the image of Vietnam enterprises in the eyes of international friends, the author would like to analyze the model of CC ofFPT Company in Vietnam as an example for other companies to follow 1 1.2 The objectives of thestudy - The main objectives of this study is to have a throughout understanding ofcorporatecultureThe first aim... symbols may be suitable with the brand of that organization On the other hand, there are also symbols of power in the organization which employees have to accept and respect Among symbols, a logo is an important asset of firms, because firms spend enormous amounts of time and money promoting them to achieve the company’s 13 corporate image goals and attract consumers (Henderson and Cote, 1998) A corporate. .. Ceremonies The activity models make one feature ofcorporate life According to Daft (2009, page 28) the ceremony is a dynamic and easy-to-understand one to the members of the company” There are three main types of ceremonies Reinforcing ceremonies represent an important category For example, the public award enforces the status ofthe person in the organization, and, at the same time, the values for which the. .. particularly popular in organizational memory 11 2.2.1.4 Language CC is first created through the use of language in the creation ofa shared vision which is articulated in a firm mission statement The used vocabulary steers the organization toward what will become its shared culture This culture is then reinforced through all manners of language, evidenced in corporate communications such as organizational... we also look at Microsoft and the oldest insurance corporationof Japan: Daiichi Microsoft is a class representing young and dynamic company, specializing in the information technology has lax control systems Conversely, with a particular company in the financial management industry, established in 1902 should bear a lot of cultural influence in Japan, Daiichi apply strict management style; seem hard . Hanoi, April, 2011
Nguyen Khanh Ly Ly
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ABSTRACT
THE INFLUENCE OF CORPORATE CULTURE OF VIETNAMESE
COMPANIES: A STUDY OF CORPORATION FPT. many different
aspects of the culture of the corporate. That explains why there is a difference
between West and East corporate cultures, the corporate