PROBLEM IDENTIFICATION
DongA Joint Stock Commercial Bank (DongA Bank/ DAB)
DongA Bank (DAB), established on July 1, 1992, has over 25 years of experience in Vietnam's banking sector, achieving significant advancements in banking technology and service quality, particularly in personal finance and card services Despite facing challenges such as a volatile market, rising bad debts, and legal issues in recent years, DAB remains committed to addressing these obstacles The bank is focused on organizational development, operational restructuring, and enhancing risk management to boost customer satisfaction and strengthen its position as a leading retail bank in Vietnam.
DAB organizes its operations into nine divisions, with the Trading department in the Capital and Trading Division being the most crucial This department focuses on the buying and selling of foreign currencies, playing a vital role in generating profits for the bank.
Deputy Director of Trading Department
FX Trading (Interbank)Banknotes Trading Gold Trading Back Office
Source: DongA Bank’s website (www.dongabank.com.vn)Figure 1: DongA Bank's organizational structure
Trading Department
Figure 2: Trading Department's organizational structure
The rapid expansion of the foreign exchange market, one of the world's most liquid markets, is driven by advancements in information technology According to Omar and Jones, banks primarily trade in money, making currency trading—through the buying and selling of currencies—a key focus for banks aiming to maximize profits.
The Trading Department was created to advise the Board of Directors on annual business strategies for forex, gold, and banknotes trading Its responsibilities include organizing and managing trading activities in line with DAB's strategy and the regulations set by the State Bank of Vietnam, analyzing trading performance, and collaborating with other departments to achieve DAB's overall objectives.
It can be seen in Figure 2 that the Trading Department is made up of four sections:
FX Trading (Interbank), Banknotes Trading, Gold Trading and Back Office Specifically,
Mr Vo Van Dat – Director of the Department and Mrs Duong Thi Thuy – Deputy Director are in charge of this department.
During challenging operational periods, the Trading Department is experiencing noticeable declines in performance This thesis aims to identify the underlying causes and effects of these issues within the department.
Marlon Wayne emphasizes the importance of identifying and distinguishing symptoms to effectively define a problem Following an initial meeting with department employees and reviewing monthly data from 2017, two significant symptoms have emerged: a high turnover rate and low profit A detailed analysis of these symptoms reveals critical insights into the department's challenges.
High turnover rate
Human resource challenges are among the most common internal issues faced by companies today, as highlighted by Woods (5) Numerous surveys and research initiatives are being conducted across various HR domains to gain insights and enhance the workplace environment Consequently, high turnover rates remain a significant concern for organizations.
Turnover rate Linear (Turnover rate) 34.00%
2015 2016 2017 are possibly considered as the most expensive issue businesses face in the industry Bliss
Employee turnover can be quite costly, with expenses related to advertising job openings, recruiting and interviewing candidates, and training new hires potentially reaching 150% of an employee's annual salary.
Number of employees quit their job 13 10 7
Table 1: The percentage of turnover rate at DongA Bank's Foreign trading department from 2015 to 2017
Figure 3: The percentage of turnover rate at DongA Bank's Foreign trading department from
The data presented in the table and chart illustrate the turnover rate percentage in the Foreign Trading Department from 2015 to 2017 While there was a slight decrease in the number of employees leaving their positions compared to 2015, the total number of staff departures in 2017 indicates a continuing trend.
Revenue Foreign exchange trading gross profit Expense
Linear (Foreign exchange trading gross profit) working staffs fell rapidly, from 40 to 19 persons; thus, the percentage of turnover rate still rose from 32.5% to 36.84%.
As a result, it illustrates that the increase of turnover rate at the department should be also seen as a symptom which managers need to focus on now.
Low profit
Source: DongA Bank’s financial report (2017) Table 2: Data of foreign exchange trading profit from January to December, 2017 at DAB
Revenue 15.39 13.43 13.64 11.84 10.77 8.25 9.77 7.41 6.77 6.27 5.76 5.20 Expense 0.52 0.23 0.39 0.64 1.03 3.09 1.08 0.47 0.87 1.02 1.14 1.50 Foreign exchange trading gross profit 14.87 13.20 13.25 11.20 9.74 5.16 8.69 6.94 5.90 5.25 4.62 3.70
Figure 4: Foreign exchange trading profit from January to December, 2017 at DongA Bank
In 2017, DAB's foreign exchange trading gross profit showed a significant decline, starting at 14.87 billion dong in January and plummeting to 3.70 billion dong by December, marking a reduction of approximately 75%.
The Trading department at DongA Bank oversees the trading of gold and foreign currencies while ensuring liquidity, safety, and efficiency within the banking system The department is structured around three key areas: interbank FX trading, banknotes trading, and gold trading However, following Circular No 38/2012/TT-NHNN and Notice No 176/TB-DAB, gold trading with customers has been suspended since August 25, 2015, allowing only limited purchases of previously deposited gold Consequently, gold transactions have become infrequent, with a single employee responsible for summarizing and reporting gold trading activities quarterly to the State Bank of Vietnam As a result, the department's profits primarily stem from interbank FX trading and banknotes trading.
Based on DongA Bank’s financial report, the profits of FX trading in interbank and Banknotes trading in 2017 are summarized in Table 3 and Figure 5 below:
Month of 2017 FX Trading in Interbank Banknotes Trading
FX Trading in Interbank Banknotes Trading
Month of 2017 FX Trading in Interbank Banknotes Trading
Source: DongA Bank’s financial report (2017) Table 3: Profits of FX trading in interbank and Banknotes trading in 2017
Figure 5: Profits of FX trading in interbank and Banknotes trading in 2017
In 2017, the profits from FX trading and Banknotes trading exhibited a significant downward trend, mirroring the overall decline in foreign exchange trading gross profits Specifically, FX trading profits began at 2.19 billion dong in January but plummeted to 0.67 billion dong by December Similarly, Banknotes trading profits started at 12.68 billion dong in January and fell to 2.03 billion dong by the end of the year.
Foreign exchange trading plays a crucial role in the banking sector by improving profitability and capital adequacy ratios This service is not only utilized by major banks in Vietnam, such as Vietcombank, VietinBank, Agribank, and BIDV, but also by medium-sized banks like MB and Sacombank.
In 2017, medium-sized banks in Vietnam, including Techcombank, ACB, and Eximbank, significantly enhanced their foreign exchange business, as illustrated in Table 4 Notably, Sacombank led the sector with foreign exchange profits of 343.87 billion dong, while DongA Bank lagged behind with a profit of only 102.52 billion dong, marking it as the lowest among its peers Despite exceeding 100 billion dong, DongA Bank's performance was still considered subpar compared to other commercial banks in the country (Appendix 3).
Foreign exchange trading profit in 2017 Name of commercial banks Profit
In 2017, the financial reports of commercial banks in Vietnam revealed low foreign exchange trading profits, indicating a potential issue that warrants further investigation This trend serves as a crucial signal for stakeholders to monitor and assess the underlying factors affecting foreign exchange performance in the banking sector.
Potential problems
According to the analyses depending on the financial reports, the meeting and in- depth interviews with members of Trading Department at DAB, some potential problems are listed as following:
An analysis of the department's high turnover rate reveals that, despite a slight decrease in employee resignations from 2015 to 2017, the overall trend indicates an increase in turnover rates.
Mr Dat, our director, highlighted that the department requires 25 employees but currently has only 19, leading to insufficient staff to maintain optimal work performance This shortage has resulted in increased workloads and job stress for the remaining employees Additionally, Ms Tam, the team leader of the back office, noted that her team supports the FX trading team by confirming deals with banks, tracking money transfers, and managing over twenty daily and monthly reports, creating an extremely stressful environment for just three back office members.
In the study done by Kulachai and Amaraphibal (8), job stress is defined as
Individuals face various pressure conditions such as opportunities, obstacles, losses, incidents, and uncertainties, which can result in both positive and negative stress impacts While stress can sometimes motivate individuals to complete their tasks, it also correlates with job satisfaction, as higher job stress often leads to lower job satisfaction Furthermore, studies indicate a negative relationship between job satisfaction and turnover intention, highlighting the importance of addressing turnover as a key management issue in today’s fast-paced market Increased workloads and additional responsibilities can heighten stress levels among employees, leading to dissatisfaction and a desire to leave their current positions for better opportunities Ultimately, job stress is a significant factor that contributes to job dissatisfaction and increases employee turnover intention.
Besides job stress at the department, work-life imbalance is also an issue needed to concern According to Mr Nhut – FX Trading staff, Ms Thao – Back office staff and
Ms Thuy, a Senior in Banknotes Trading, highlights the challenges faced by the department due to a reduced staff count, resulting in an increased workload for the remaining employees They are required to manage numerous assignments efficiently while meeting managerial expectations, often working under pressure for extended hours This situation frequently leads to taking work home and insufficient breaks, significantly impacting their leisure activities and overall work-life balance.
Work-life balance is defined as the mutual desire of employees and employers to harmonize workplace responsibilities with personal obligations Effective work-life programs, such as flexible schedules, telecommuting, and job sharing, offer significant advantages for both parties Employees who successfully manage their work and family life tend to experience greater satisfaction, leading to enhanced productivity, job satisfaction, and loyalty to the organization Consequently, this can result in improved job performance and reduced employee turnover.
Full-time employees at the company adhere to a strict 40-hour workweek with no flexible scheduling options Due to a limited number of staff in the department, especially during busy periods like audits, the remaining employees often struggle to complete all necessary tasks within regular office hours As a result, they frequently find themselves working overtime, typically an additional 2 to 3 hours, or taking work home to meet deadlines.
Research indicates that increased weekly work hours negatively impact work-life balance Employees with family responsibilities, like Mrs Thuy, Ms Thuy, and Ms Thao, struggle to manage long hours while fulfilling their personal obligations This imbalance leads to dissatisfaction, especially when extended work hours do not yield adequate rewards or recognition Consequently, employees may seek more flexible work environments, increasing their intention to leave the organization.
According to Table 2 – Data of DongA Bank’s foreign exchange trading profit in
In 2017, DAB experienced a significant decline in foreign exchange trading revenue, dropping from 15.39 billion dong in January to 5.20 billion dong in December, a decrease of approximately 66.21% Mrs Thuy noted that challenges such as bad debts and legal issues have directly impacted the bank's operations and revenue Prior to 2016, DAB had established credit limits with 31 banks in Vietnam; however, the number of partners willing to maintain long-term relationships dwindled to under 20, including major banks like Vietcombank, BIDV, and ACB This reduction in partnerships has negatively affected trading activities and led to decreased trading frequency.
Importantly, as is shown at Trading Department's organizational structure in figure
The department is organized into four specialized teams, each with distinct responsibilities and requirements However, team members primarily focus on their individual tasks and show limited cooperation with other teams unless directed by superiors For example, the FX trading, Banknotes trading, and Gold trading teams, known as front offices, concentrate on generating profits, while the back office supports the overall business and processes documents During project implementations, front office members often seek assistance from the back office for better understanding and collaboration Unfortunately, back office members frequently cite their own workload as a reason to avoid collaboration, leading to fragmented projects and ineffective outcomes.
A manager plays a crucial role in the effective planning, coordination, and implementation of organizational strategies, particularly within banks, where planning influences both strategic and operational aspects Longenecker et al emphasize that inadequate planning can lead to disorganized operations Following monthly Board of Directors meetings, the main director typically relays work assignments to teams without holding departmental meetings to develop collaborative action plans This lack of discussion can lead to ambiguity in team roles, causing members to become distracted and overlap in their responsibilities, ultimately undermining effective planning and negatively impacting teamwork.
Hence, poor team cooperation could be considered as a problem which causing ineffective planning and low profit of foreign exchange trading.
In 2017, foreign exchange trading expenses rose from 0.52 billion dong in January to 1.5 billion dong by December, as illustrated in Table 2 This increase can be attributed to market fluctuations, a decline in DAB's partners, and the bank's diminished market position, which limited its ability to negotiate favorable prices with suppliers and reduce unnecessary costs Consequently, these market conditions led to decreased revenue and heightened expenses, resulting in a low profit level from foreign exchange trading throughout the year.
In trading, employees, or traders, must adapt to the market's fluctuations, especially during the volatile opening hours when foreign currency prices can change rapidly Strategies that work at the market's start may not be effective later in the day, necessitating a shift in approach To succeed in this dynamic environment, traders need not only education and technical skills but also the flexibility and confidence to make timely buy or sell decisions Mastering common day trading strategies, understanding basic charts and patterns, and implementing effective loss-limiting techniques are crucial for successful trading.
Mrs Thuy, Deputy Director of the Foreign Trading Department, emphasizes the significance of employee abilities, work spirit, and flexibility in enhancing business performance She highlights that fostering employees' confidence in trading is crucial for expediting processes and minimizing time-consuming tasks that impact other teams Research by Gibbons et al and Nielsen et al supports that confidence boosts self-esteem and is vital for workplace well-being and morale, while a lack of confidence can lead to low self-esteem and diminished job performance Therefore, it is essential for all employees to maintain and enhance their confidence to work effectively and efficiently, driving business development forward.
Market conditions significantly influence the Trading department, as they directly impact traders' behaviors and overall business performance.
To sum up all potential problems having at the department, the diagram 1 which is the initial cause-effect map of the department has been developed as following:
High turnover rate Work-life imbalance
Poor cooperation in teams Ineffective planning Decrease in trading frequency Decrease in revenue
Lack of confidence in work Time- consuming in trading Increase in expense Market condition
Diagram 1: Initial cause-effect map of Foreign Trading Department
The updated cause-effect map aims to clarify the relationships between variables identified in the initial analysis while incorporating new findings derived from both existing literature and organizational data This revision seeks to provide a more precise context for the central problem being investigated in the validation phase.
Validating problems
In Cedoline's study, workload is characterized as employees' perception that their work demands exceed normal levels Weiner further emphasizes that workload encompasses various pressures that influence employee performance and reactions Notably, research indicates that employees in the education sector experience higher workloads compared to those in other fields Excessive workload and time pressures significantly contribute to work stress, work-life imbalance, and increased turnover intention Therefore, consistent with existing literature, it can be concluded that a high workload correlates with elevated stress levels, disrupted work-life balance, and a greater likelihood of turnover due to additional assignments.
Cooperation is a fundamental element of coworkership, essential for fostering a productive workplace where team members feel comfortable and effective High levels of team cooperation lead to quicker decision-making and increased reliance on one another for advice, ultimately enhancing task efficiency and reducing workload, which drives business growth Additionally, cooperation enhances employees' work quality and boosts their confidence in engaging with both colleagues and upper management Furthermore, a cooperative team promotes better understanding among colleagues across different departments, alleviating concerns about organizational roles.
Besides workload and cooperation in organizations, based on Tai VW and Chou
Market conditions significantly influence traders' behavior, including their confidence and biases, ultimately affecting the number of transactions The inherent volatility of the market, characterized by constant change, directly impacts traders' decisions to buy or sell assets, leading to potential gains or losses To enhance performance in trading activities, it is essential to have experienced and decisive traders However, external factors such as market liquidity, information availability, price volatility, competition, and government foreign exchange policies present challenges that the Trading department cannot resolve.
Hansen RS and Vartika emphasize that as work tasks become increasingly complex, effective team cooperation emerges as a key strategy for positive workplace change Literature indicates that collaborative efforts among employees enable them to share workloads, allowing individuals to focus on their strengths and enjoy their tasks Additionally, cooperative teams engage in discussions and interactions that provide new perspectives and learning opportunities, enhancing both individual and collective knowledge This collaborative approach fosters innovative ideas and equips teams to manage market risks more effectively Therefore, addressing poor team cooperation in the Trading department could significantly improve workload management and overall market responsiveness for managers.
In order to validate and confirm the main problem of the department, the further information collected from the interviews are summarized as following:
Mr Vo Van Dat, Director of the Foreign Trading Department, emphasizes the importance of enhancing internal operations to drive business growth and interdepartmental collaboration He advocates for a team-oriented approach where employees align with common goals and share collective accountability, rather than functioning independently In instances of departmental challenges, team members responsible for resolution should proactively seek assistance from other sections to ensure swift and effective solutions.
Mrs Thuy, the Deputy Director of the Foreign Trading Department, and Ms Tam, the current team leader of the back office, identified the lack of team cooperation as the department's most significant issue This deficiency in collaboration leads to an overload of internal work and causes shifts in job responsibilities between teams.
Ms Thuy, Ms Thao, and Ms Hong highlighted that while all coworkers are friendly, there is a lack of collaboration among teams Each team tends to concentrate solely on their own tasks and only offers assistance to other teams when directed by management This lack of cooperation can lead to an overwhelming workload, resulting in increased fatigue during work.
Poor cooperation among staff often hinders access to advice and support, making it challenging to acquire valuable on-the-job knowledge New employees, like Mr Nhut and Mr Hau, find it particularly difficult to integrate into the workplace, learn from their experienced colleagues, and showcase their skills effectively.
In-depth interviews and existing literature indicate that inadequate team cooperation is a critical issue affecting the operations of DongA Bank's Foreign Trading Department at present.
Main problem
Collaboration within organizations is characterized by interdependence, necessitating cooperation among team members (Heavey C and Murphy E) The concept of cooperation has evolved over time, with various researchers highlighting its significance in operational success and organizational performance It is regarded as a vital factor in achieving business success and enhancing group effectiveness Pinto MB and Pinto JK define cooperation as the quality of task and interpersonal relations among different functional areas working together towards organizational goals Employees who exhibit high levels of cooperation are more adept at understanding others' ideas, sharing information, and effectively communicating about tasks.
To enhance organizational effectiveness, managers should implement Ton Voogt's framework for cooperation, which includes nine essential conditions such as specific functional processes, structures, mindset, and skills within organizations The detailed framework is illustrated in Table 5 below.
1 The quality of the goal setting of all cooperating partners
- Connected by supporting or opposing each other
2 The quality of the cultural preferences in thinking and behavior
- in tasks managers tell to stimulate workers.
- in the reinforcements given to workers when showing one of these behaviors
- in withholding reinforcements or punishing when showing specify behavior
- in a generic general preference: not favorable for cooperation
- in situational preferences: favorable for cooperation
3 The quality of ideas on self- performances in cooperation
- Dominance in self-concept of positive experiences with building cooperation
- Confidence in overcoming cooperation obstacles
- Openness to others cultural ideas and behavioral preferences
4 The quality of the ideas on others readiness, willingness, competence to cooperate.
- Dominance of negative cooperative behavior of others over positive examples in the evaluation of others
- Openness to experiment in building cooperation with others by start “giving”
5 The quality of distances that have to be bridged starting and continue cooperation.
-Understanding each other professional language (functional different)
-Having a common language to cooperate in projects (the common project management language)
6 The quality of complexity To be measured in handling complexities.
- The competence to explain and make all more simple
- The ability to start with rough guesses before calculating all in detail
7 The quality of the communication structure.
The rules/practice for communicating:
- only thought the official lines: not favorable
- also mutual adjustment: favorable When communicating:
- only after trouble: not favorable
- preparing when it is not necessary: favorable
- in time: regular? or not?
8 The quality of the practice, the behavioral sequence, to build cooperation.
To be measured in the tactics that are used by employees.
- Favorable tactics: Continue, only change when the other changes
- Not favorable tactics: Over punishment;…
9 The quality of specific cooperation skills
To be measured in the level of performance in practicing these behaviors:
- Offering cooperation by sharing differences
- Monitoring others behavior and own behavioral effects on others
- Act direct when others act uncooperative: have a talk
- Willing to forgive and make a new start.
- Willing to fight for better cooperative conditions
- Regular scheme of talks on the progress in the cooperation
Source: Ton Voogt’s research (2014) Table 5: Framework of measuring cooperation
In DongA Bank's Trading department, there is a significant issue with poor team cooperation, particularly evident in the interbank market transactions involving FX staff, back office (BO) staff, and managers The transaction process typically takes around 30 minutes; however, delays of over an hour are common due to inadequate interaction and collaboration between teams FX staff often lack confidence when engaging with other banks, leading to prolonged transaction times, while BO staff show a lack of enthusiasm in providing support This situation highlights the department's low-quality conditions, which stem from ineffective goal-setting among partners, insufficient communication skills, and a lack of cohesive teamwork.
Consequences
Team cooperation is essential for solving problems and achieving mutual goals, ultimately leading to improved business performance According to Pinto MB et al., the outcomes of cooperation can be categorized into two main types: task outcomes and psychosocial outcomes Task outcomes encompass factors related to departmental implementation, including time management, budget adherence, and overall performance In contrast, psychosocial outcomes focus on aspects such as employee satisfaction, productivity, mental health, and overall quality of life.
Teams play a crucial role in decision-making and task execution, as no individual possesses all the necessary information and resources High cooperation within teams enhances efficiency, reducing processing time and costs Furthermore, the diverse strengths, weaknesses, and perspectives of team members contribute to improved decision-making and overall business performance, offering advantages that individual efforts alone cannot achieve.
Psychosocial outcomes significantly impact employees' quality of life and behavior, with high team cooperation fostering happiness and satisfaction among employees This positive environment enhances their work abilities and attitudes Conversely, low cooperation within a department leads to negative psychosocial effects, resulting in employee unhappiness, anxiety, and a lack of confidence in expressing ideas or seeking support from colleagues.
Team cooperation is essential for successful job implementation and overall departmental performance Currently, poor team collaboration is a significant issue that, if unaddressed, will continue to adversely impact trading performance and departmental profits It is imperative to find solutions to improve team cooperation promptly to boost profits and support the organization's sustainable development.
ALTERNATIVE SOLUTIONS
Potential causes
In line with the previous analysis and based on literature reviews, some potential causes of the central problem are identified as below:
Generally, when employees step into their workplace, they will bring various backgrounds, personalities, beliefs and goals into their work According to Wong et al.
Personality is defined as an individual's typical way of behaving, thinking, and feeling, which significantly influences workplace behavior Furthermore, personality serves as a direct indicator of actual behavior, shaped by an individual's values.
Cooperation involves two or more individuals engaging in collaborative activities, highlighting the significance of understanding personality differences in the workplace These differences can influence both job performance and job satisfaction among team members Consequently, variations in personality may lead to diverse collaborative approaches among managers and employees, potentially hindering task execution and workplace relationships if mutual understanding and satisfaction are lacking.
Effective communication among coworkers fosters cooperation in the workplace by reducing uncertainty and misunderstandings It is essential for creating a successful and healthy work environment, leading to increased employee satisfaction and engagement while boosting organizational performance When employees receive adequate information, they tend to be more cooperative and motivated.
Effective communication is essential for sharing information and reducing ambiguity in the workplace, as it fosters cooperation among employees Verbal, face-to-face communication stands out as the most effective method in dynamic environments, enabling quick adjustments and timely feedback This approach not only facilitates problem-solving but also saves costs However, it's crucial to strike a balance; excessive communication can distract employees, while insufficient guidance may leave them feeling lost within the organization.
1.1.3 Lack of updating job descriptions
In the Trading department, effective teamwork is essential for sharing data, information, and expertise to complete assigned tasks However, employees often focus solely on their job descriptions, leading to a lack of collaboration and increased workloads With a reduced workforce and unchanged job roles, it is common for employees to resist taking on additional responsibilities, highlighting the need for improved team cooperation and flexibility in job expectations.
Updating job descriptions within the department is essential for fostering flexibility in work, enhancing team collaboration, and boosting productivity, while also reducing confusion regarding employees' roles and responsibilities.
Currently, the bank has completely eliminated financial funds for employee rewards and bonuses, redirecting those resources to prioritize its core business activities.
The remaining employees are facing increased workloads without any reward systems in place to acknowledge their efforts This lack of recognition highlights the need for effective awards to celebrate their hard work Additionally, an inadequate reward system has led to a decline in team cooperation within the department.
Validating causes
Many employees highlighted the necessity of updating job descriptions, as outdated ones led to confusion regarding their roles and hindered their ability to showcase their skills, ultimately affecting their motivation to collaborate with other teams Ms Thao noted that unclear job descriptions and uncooperative colleagues directly impacted her motivation, while Mr Hau from the FX Trading team expressed that a lack of challenging job expectations would deter him from investing his time in the department Additionally, Ms Thuy emphasized the significance of good communication and relationships among employees, as these factors enhance cooperation and retention when individuals feel valued Furthermore, employees voiced concerns about an unfair pay system that does not reflect education and experience levels, suggesting that equal pay for inexperienced and seasoned workers could negatively impact performance and lead to workplace conflicts.
In organizations, each employee possesses unique perspectives and characteristics, making it challenging for top management to address personality differences effectively Consequently, communication is influenced by the working environment and employee interactions By leveraging appropriate leadership styles, managers can enhance communication and foster a more cohesive workplace.
Due to low benefits and limited opportunities, employees are seeking to leave their jobs for better prospects, leading to dissatisfaction among remaining staff and negatively impacting overall business performance It is essential for management to address current employee demands by promptly updating job descriptions and enhancing the reward system.
A job description is a written document that outlines the tasks, duties, and responsibilities of a position, along with the necessary knowledge, skills, and abilities required to perform it While there is no standard format for job descriptions, they should include key sections such as position identification, employee responsibilities, work relations, performance standards, work conditions, and minimum qualifications Currently, many job descriptions are outdated and inflexible, leading to decreased cooperation and increased workloads among employees within the department.
Rewards are essential for enhancing employee motivation and recognizing their achievements within a company A well-structured reward system not only encourages employees to excel but also helps organizations reduce turnover rates When employees feel valued and satisfied in their roles, overall performance improves Conversely, the absence of a reward process can lead to a lack of inspiration among employees, hinder talent retention, and create a disconnect among remaining staff.
The interviews and validations reveal that outdated job descriptions and an ineffective reward system are key factors contributing to employee cooperation issues within the department.
In short, according to all previous analysis, the final cause-effect map will be shown as below:
Lack of updating job descriptions
Diagram 3: Final cause-effect map of Foreign Trading Department
To address the issue of poor team cooperation in the Trading Department, it is essential to identify the key causes and implement effective solutions for improvement Taking decisive action will be crucial in enhancing collaboration within the team.
Mr Dat, the department director, emphasized the importance of fostering a better working environment to boost sales and reduce employee turnover He urged all employees to actively seek and implement solutions that enhance team collaboration Given the bank's current financial constraints, it is crucial to identify the most effective methods and carefully evaluate expenses to address the department's actual needs.
To enhance team cooperation, it is crucial for employees to perceive a fair structure and possess a clear understanding and confidence in their roles This belief is essential when managers aim to implement a new reward system or revise an existing one.
Effective rewards structures are essential for fairly differentiating individual contributions within an organization To create an equitable pay system, it is crucial to develop comprehensive job descriptions and conduct thorough job evaluations Consequently, managers should prioritize the creation of detailed job descriptions before establishing any compensation framework.
2.1 Solution 1: Mangers share current job descriptions with employees, require their input to incorporate into managers’ ideas about how to describe the position appropriately and then get reviews by Human Resources
A job description is a concise written overview of a position, as defined by Oswald FL (58), which serves to inform those unfamiliar with the role Arthur D (59) emphasizes that it details the essential duties and responsibilities expected of employees, establishing accountability and preventing task overlap For organizations, having a clear and descriptive job description is crucial Gan M and Kleiner BH (60) suggest that well-defined job descriptions can enhance employee satisfaction and foster more efficient teamwork.
Many organizations overlook the critical need to regularly update and create new job descriptions, despite these documents serving as fundamental components for various human resource functions such as recruitment, hiring, performance evaluations, and rewards When an organization's purpose, mission, or structure evolves, it inevitably impacts departments, teams, and business operations Consequently, employees may take on new responsibilities or eliminate ineffective tasks, highlighting the necessity for timely revisions to job descriptions to reflect these changes accurately.
To ensure optimal workplace efficiency, it's essential to regularly review and update job descriptions, especially when one employee is handling multiple roles or when some employees are reluctant to fulfill their responsibilities Outdated job descriptions hinder effective performance management, making it vital for managers to engage in detailed discussions with employees about their roles and how these align with business objectives By keeping job descriptions current and reflective of actual job functions, organizations can prevent potential challenges and enhance overall productivity.
The DAB Trading department is facing challenges due to poor team cooperation and staff shortages, leading to employee dissatisfaction from work overload and unclear job responsibilities Directors Mr Dat and Mrs Thuy have observed a decline in engagement from long-term employees, which has affected new hires and overall collaboration To address these issues, they emphasize the urgent need to update job descriptions to clarify roles and objectives, fostering a more comfortable working environment They propose forming a dedicated team or hiring external specialists with at least three years of experience to assist in this process, while also ensuring that the budget for these improvements remains within the limit of approximately 100 million Vietnam dong.
Recognizing that many issues existed with the non-updated job description at the department, there are some solutions that managers consider as followings:
Task handling
Step 1: Revising and updating current job descriptions (Duration: 39 days)
No Task Start Finish Durations Prede
1 Receiving job description amendment request and give the
2 Gathering information related to the jobs from current employees to identify the need for an updated job descriptions
3 Holding a meeting to discuss with all Wed
No Task Start Finish Durations Prede
Salary employees what needs to amend based on current job descriptions
4 Validating the job description draft with employees, adding appropriate changes and reviewing job description draft"
5 Discussing and developing the updated job description based on the guidance and approval of
6 Signing job descriptions by the
Trading department’s managers and HR manager then making initial approval by the concerned assistant undersecretary
Table 7: Estimated labor cost in Action plan step 1
Step 2: Discussing and revising KPI evaluation through updated job descriptions
No Task Start Finish Durations Prede
7 Attaching the goal of job position to a common goal
8 Reviewing and gathering information about the needs of revising current
No Task Start Finish Durations Prede
9 Defining and setting targets for each KPIs based on the current business objectives and updated job descriptions
10 Collecting data and develop KPI Tue
12 Monitoring, revising and evaluating employees quarterly based on updated KPI"
Table 8: Estimated labor cost in Action plan step 2
Step 3: Applying KPI-based reward system (Duration: 80 days)
No Task Start Finish Durations Prede
13 1-month trial process with KPI- based reward system
14 Monitoring and evaluating the updated KPI system
Table 9: Estimated labor cost in Action plan step 3
In this project, the estimated cost comprises fixed salaries and additional expenses After a three-step evaluation of labor costs, the total expenditure for implementing the plan is approximately 98,880,000 VND Consequently, the overall budget for the project is outlined as follows:
Table 10: Estimated total budget for action plan
After estimating and creating a timeline for the action plan, the total budget remains within the top management's requirement of 300 million VND It is crucial for all employees to focus on utilizing resources, time, and costs efficiently and punctually to achieve optimal productivity.
Gantt chart
The department can generate a Gantt Chart based on the comprehensive details of the action plan, which will serve as a summary to effectively monitor the timeline, manage the budget, and assess potential risks.
Effectiveness measurement through taking actions
To address the critical issue of improving trading profits and reducing employee turnover, the Board of Directors, Trading Department, and Human Resources Department are focused on implementing effective strategies Their goal is to achieve noticeable growth in trading profits and a significant decrease in turnover rates by the end of 2019.
According to the top managements’ belief, they expect that the trading profits could increase by 25% compared to that ones at the end of 2017 and the total number
The department aims to increase its workforce to 25 employees, representing a 30% growth since 2017 With the implementation of the proposed action plan, they anticipate that business operations will be conducted efficiently, on schedule, and without disruptions.
Cooperation is crucial for fostering a healthy workplace that enhances employee productivity and aligns personal and organizational goals This thesis aims to identify key issues negatively impacting trading profits and employee turnover at DongA Bank's Trading department Through in-depth interviews and literature reviews, it reveals that the primary causes are a "Lack of updating job descriptions" and a "Poor reward system." Consequently, the thesis highlights that inadequate team cooperation is the main challenge that requires immediate and effective solutions to drive business improvement.
To enhance team cooperation within the department, a 6-month action plan is proposed, consisting of three key steps: revising current job descriptions, discussing and updating KPI evaluations based on these descriptions, and implementing a KPI-based reward system Successful execution of this plan requires collaboration from all managers and employees to ensure timely and effective implementation Additionally, regular discussions and quarterly evaluations between managers and employees are essential for promptly identifying and addressing any issues that may arise.
SUPPORTING INFORMATION
1 Methodology (Qualitative research – In-depth interviews)
Team cooperation issues can be complex and challenging to resolve, as highlighted by Islam R et al (70) The most valuable insights often come directly from employees themselves, making it essential to regularly inquire about their fears regarding collaboration with fellow team members in the department.
The research was conducted over two periods: from July 2 to July 13, 2018, and from August 6 to August 7, 2018 A total of eight current employees from the Trading department were randomly selected as respondents, consisting of three males and five females, following the data saturation principle.
This study utilized in-depth interviews to explore employees' attitudes toward teamwork and refine a draft questionnaire Participants were assured of confidentiality, with responses used solely for research purposes An unstructured questionnaire featuring eleven open-ended questions enabled moderators to delve into behaviors and encouraged respondents to express themselves freely The primary objective was to identify the key issues and causes negatively impacting team cooperation in DongA Bank’s Trading department, focusing only on relevant information related to these areas.
The article outlines a structured interview process aimed at gathering insights from current employees about their roles and experiences within the department Initially, basic information regarding the interviewees' positions and job descriptions will be collected The first three questions will focus on employees' feelings about their jobs, followed by inquiries into the department's working environment, factors affecting foreign exchange profits, employee turnover rates, managerial support, supervisor-employee relationships, and development opportunities, covering questions four through ten Lastly, question eleven will seek the respondents' final thoughts on the department's current challenges.
No Name Gender Position Work experience (year(s))
Time working for DAB (year(s))
Time of interview Place of interview
1 Vo Van Dat Male Director 12 10 2 July
2 Duong Thi Thuy Female Deputy
3 Pham Minh Tam Female Team leader of BO
8 Tran Trung Hau Male FX trading staff
- Explain the purpose of the interview Information security.
- Group, job title, job description of interviewee.
1 How long have you worked at DAB?
2 What do you feel about your job at DAB? (Describe general feeling in their job: happy? satisfied? productive?) Why?
3 What do you like/dislike about your job at DAB? Why?
Probe: Could you give some examples of experience in your job that were satisfying or dissatisfying?
Prompt: Work environment, co-worker, boss, benefits, development opportunities, etc.
The Trading Department's performance can be evaluated through its effectiveness in achieving set goals and adapting to market changes Its strengths lie in strong analytical skills and quick decision-making, which contribute to successful trades However, areas for improvement include communication within the team and the implementation of more robust risk management strategies Overall, while the department excels in certain aspects, enhancing collaboration and risk assessment could lead to even better outcomes.
5 What impacts the foreign exchange profit? Why? Prompt: Market situation,
6 The turnover rate of DAB is high, how about your department? How does it impact on your operation? What do you think about the reason?
7 How is the job meeting your personal needs? What do you think about
When evaluating employee satisfaction within a department, key factors such as salary, benefits (including holidays, education, insurance, and bonuses), and work-life balance play a crucial role Employees often assess their overall contentment by comparing their current state with their desired conditions, highlighting the importance of a supportive work environment in fostering job satisfaction.
In assessing your job satisfaction within your department, consider the alignment of your job description with your actual responsibilities, the challenges you encounter, and the level of recognition you receive Reflect on any difficulties or stressors you face in your role, such as heavy workloads, time pressures, or the struggle to maintain a work-family balance Identifying these factors can provide valuable insights into your overall job experience and well-being.
9 What do your supervisors/managers do to help you in your job? How do they affect your job performance? Prompt: Teach, coach, develop subordinates.
The way they inspire subordinates, communicate and share the organization’s goals, objectives and strategies? How is it? Clear or not And what do you feel?
10 What are development opportunities in your department? Can you tell more about it? Prompt: Challenge jobs, learning opportunities, opportunities for advancement and other personal development.
11 Is there anything else you want to share?
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AppendicesAppendix 1: No 38/2012/TT-NHNN of the State Bank of Vietnam
Appendix 2: Notice No 176/TB-DAB of DongA Bank
Appendix 3: Foreign exchange profits of some commercial banks in 2017
Appendix 4: KPI – Band scores & evaluation results
Outstanding (A) Over 100 points Employees’ working abilities and performances are outstanding in most areas High productivity and always maintained on a regular basis.
Employees achieving a score of 80 to 100 points demonstrate consistent working abilities and performance that meet standard levels across all areas Conversely, those scoring between 60 and 79 points show deficiencies in certain areas, indicating a need for improvement in their working capabilities and performance.
Employees have poor working abilities and performances, not qualified in most areas.
Source: DongA Bank’s Human resources department
Question and Answer Coding Category
Name and Job position at DongA Bank’s Trading Department
Mr Dat: My name is Vo Van Dat and I’m in charge of Director of Trading Department.
Mrs Thuy: My name is Duong Thi Thuy – Deputy Director of the department.
Ms Tam: My name is Pham Minh Tam – team leader of Back office team.
Ms Thao: My name is Nguyen Thi Phuong Thao – BO staff.
Ms Thuy: My name is Nguyen Thi Ngoc Thuy – Senior of Banknotes trading.
Ms Hong: My name is Nguyen Thi Anh Hong – Banknotes Trading staff.
Mr Nhut: My name is Nguyen Minh Nhut – FX Trading staff.
Mr Hau: My name is Tran Trung Hau – FX Trading staff.
- Team leader of BO team
Q1: How long have you worked at DAB? Employees’
Question and Answer Coding Category Q2: What do you feel about your job at DAB?
Mr Dat believes that his job aligns well with his personality, as he enjoys interacting with, guiding, and supporting his employees Despite the significant workload and responsibilities he manages, he finds fulfillment in his role.
Mrs Thuy: My job is ok.
Ms Tam: I think it’s fine although sometimes I feel a little stressful.
Ms Thao expresses her stress at work due to a high turnover rate, which has resulted in remaining employees shouldering the workload of two or three people.
Ms Thuy: Previously, my team included 5 employees but now only has 3 people, so I need to do more work than before.
Ms Hong expresses her passion for her job but is concerned about managing her workload during Ms Thuy's upcoming six-month maternity leave She emphasizes the need for support and collaboration from other teams to ensure that her responsibilities are met effectively.
Mr Nhut: If my seniors have more guidance to me and cooperate with me in doing job, I will feel more satisfied with the job.
Mr Hau: I feel a little pressure due to decrease in trading frequency which causing low trading profits and workload.
Q3: What do you like/dislike about your job?
Mr Dat: In our work situation, staff recruitment is not sufficient and timely due to limited working environment, lack of applications and competitive salaries; therefore, we need to
- Enhance team cooperation, follow job descriptions
The Question and Answer Coding Category prioritizes enhancing internal operations to foster business development and cross-unit collaboration As a manager, my role is to support a unified effort towards common goals, encouraging employees to embrace collective responsibility rather than individual tasks It is essential to clearly define job descriptions for all employees to ensure accountability In the event of departmental issues, team members should feel empowered to seek assistance from other sections to facilitate swift and effective solutions.