ENHANCING THE COMPETENCY OF MSB''S RETAIL SALESMEN IN HANOI AREA

NATIONAL ECONOMICS UNIVERSITY NEU BUSINESS SCHOOL TRAN THI PHUONG THUY ENHANCING THE COMPETENCY OF MSB'S RETAIL SALESMEN IN HANOI AREA MASTER OF BUSINESS ADMINISTRATION THESIS Supervisor: DR VU VAN NGOC - Hanoi – 2021 – ACKNOWLEDGEMENT This Thesis has fully completed the requirements from the Master of Business Administration (MBA) program in National Economics University – Business School First, I would like to thank the leadership and teachers at the National Economics University - Institute of Business Administration for organizing the program so that I had the opportunity to attend Through the program, I had the opportunity to learn more and to improve my capacity to better serve my job Especially, I would like to thank my supervisor - DR Vu Van Ngoc, despite being very busy at work at the National Economics, he always gives his time and dedicated guidance, he provided me with valuable knowledge, guidance and supported me along the process Moreover, I would also like to thank the Executive Board of MSB, Head of Retail Banking Division and my colleagues for facilitating and supporting me during the research, as well as providing time, advice and instructions to conduct the research Their support was extremely important and was a determining factor in the success of my essay And finally, I would like to thank my family, who supported and facilitated me during my time in the MBA program and completing my thesis Thank you so much! TABLE OF CONTENT ACKNOWLEDGEMENT CHAPTER 1: INTRODUCTION 1.1 Rationale: 1.2 Research objectives: 1.3 Research questions 1.4 Research methodology 1.5 Data Analysis 1.6 Research scope: 1.7 Structure of research CHAPTER 2: THEORETICAL BACKGROUND ON COMPETENCY OF SALESMAN .7 2.1 Nature of competency 2.2 Competency model .9 2.2.1 Competency Iceberg Model 2.2.2 Onion Competency Model 2.2.3 KSA (Knowledge, Skill and Attribute) Model 10 2.2.4 Model to be used on Retail Salesman in Commercial Banking 11 2.3 The component of the competency: 11 2.4 Level of competency 12 2.4.1 Benjamin Bloom's Taxonomy .12 2.4.2 Levels of competency applied to the retail Salesmen in the Commercial Bank 13 2.5 Competency assessment method 14 2.6 The Competency Based Interview 16 2.7 Factors affecting the competency of Retail Salesmen in the Commercial Bank 17 2.7.1 The factor in the Organization: 17 2.7.2.External factors in an organization .18 2.8 Job description of Retail Salesmen in a Commercial Bank .19 2.9 Requirement for competency of Retail Salesman in a Commercial Bank 20 CHAPTER 3: MSB’s OVERVIEW AND REQUIREMENT OF COMPETENCY FOR RETAIL SALESMEN (RBOS) IN HANOI AREA 24 3.1 MSB’s overview and Human Resource 24 3.1.1 MSB’s Overview 24 3.1.2 Vision, Mission, and Values 25 3.1.3 MSB Business Result in 2020 .26 3.1.4 MSB Human Resource 31 3.2 Salesman and Selling process 33 3.3 The requirement of competency in MSB 38 3.3.1 Job Description of Salesman at MSB 38 3.3.2 Required competencies of RBO at MSB .41 CHAPTER 4: CURRENT COMPETENCIES OF SALESMEN OF MSB'S RETAIL SALESMEN (RBOS) IN HANOI AREA .51 4.1 Respondent’s information 51 4.2 Current competency status of RBOs at MSB Hanoi area 52 4.2.1 Current Knowledge competency of RBOs 52 4.2.2 Current Skill competencies of RBOs 54 4.3 The Gap between Required and current competency of RBOs at MSB Hanoi area 55 4.3.1 Competency Gap analysis 55 4.3.2 Gap of Knowledge of RBOs .56 4.3.3 Gap of Skill competency of RBOs 57 4.3.4 Gap of Attitude of RBOs .58 4.4 Reason of the Gaps .59 CHAPTER 5: SOLUTIONS AND RECOMMENDATIONS ON ENHANCING THE COMPETENCY OF MSB’S RETAIL SALESMEN (RBOs) IN HANOI AREA 61 5.1 Proposed Training solution on enhancing competency of retail Salesmen of MSB 61 5.1.1 Developing training methodologies 61 5.1.2 Improving Training Evaluation 63 5.1.3 Build training program for RBO base on Competency framework .66 5.1.4 Build training program for RBO 72 5.2 Other solutions on enhancing competency of RBOs in MSB Hanoi area 73 5.2.1 Building Role model: Successful RBO .73 5.2.2 Improvements on compensation and incentive policies .74 5.2.3 Setting up a clear career path for Sales personnel .74 5.2.4 Building motivational programs 74 5.3.5 Developing the talent development and retention policies 75 CONCLUSION 76 REFERENCES 78 LIST OF TALBE Table 1.1: Survey-Response details Table 2.1: Requirement for Knowledge of Retail Salesman 21 Table 2.2: Requirement for Skill of Retail Salesman .22 Table 2.3: Requirement for Attitude of Retail Salesman 23 Table 3.1: MSB Business Result in 2020 .26 Table 3.2:Questionaire table 43 Table 3.3: Requirement for knowledge of RBO’s competency 47 Table 3.4: Requirement for skill of RBO’s competency 49 Table 3.5: Requirement for attitude of RBO’s competency 50 Table 4.1: Current Knowledge competencies of RBOs 52 Table 4.2: Current Skill competencies of RBOs 54 Table 4.3: Current Attitude competencies of RBOs .55 LIST OF FIGURE Fig 2.1 Competency Iceberg Model Fig 2.2 Onion Competency Model .10 Fig 2.3 KSA (Knowledge, Skill and Attribute) Model 11 Figure 4.1: Respondent profile for survey .51 Figure 4.2: Gap of Knowledge of RBO’s MSB Hanoi area 56 Figure 4.3: Gap of skill of RBO’s MSB Hanoi area 57 Figure 4.4: Gap of attitude of RBO’s MSB Hanoi area 58 CHAPTER 1: INTRODUCTION 1.1 Rationale: Employees are the indispensable asset and the key element of gaining competitive advantage of an organization and together with the training as an essential tool for its actualization The highest level of competency, skills, and the ability of the workforce as an organization to which influences the ability to preserve its obtained position gain organizational performance Employees who possessed the knowledge and competency is also the most important asset of an organization For successful business management, effectiveness and strategic management of human resources is essential Acquiring a qualified employee in the right place at the right time is beneficial in order to face the needs of a business with quick response pertaining to the dynamics of business environment Therefore, to all companies in general, management should pay full attention in improving the competence of the employees to ensure that the organization’s goals and objectives will be achieved Vietnam Maritime Commercial Joint Stock Bank (short name is MSB) is the first commercial bank established in 1991 during the period of economic opening and development in Vietnam MSB is constantly expanding its network of operation to rise to the top of non-state banks in Vietnam, with 274 branches/ Transaction offices and 500 ATMs covering 51 out of 64 provinces in the country MSB’s strategic goals for human resource development in the 5-year period of 2021 up to 2025 are as follows: - The creation of a sales force possessing good skills and high labor productivity reaching the regional level - Understanding the needs of the customers as well as having a better internal coordination to build a professional service culture - Human resources are of same quality to the standards of international banks and corresponding remuneration - To geta clear career path for each position and values for the sales force - Establishing a better sales force to create a competitive advantage of MSB with 60% over years Understanding the strategic goals, a study was made according on “Enhancing the competency of MSB's retail salesmen in Hanoi Area” in order to attain the goals and improve such traits in terms of competition in Retail Banking 1.2 Research objectives: Following objectives are listed below: - Clarification of requirements for the MSB’s Retail Salesmen in terms of competency - Analyzation on the current status and identifying the gaps between required and current competency of MSB’s retail salesmen - Proposal of solutions and recommendations as well as the implementation for the improvement of MSB’s Retail Salesmen 1.3 Research questions To achieve such goals, the following questions must be addressed: - What are the necessary competency requirements or traits of a Retail Salesmen in commercial banking? - What is the competency requirement of a Retail Salesmen in MSB standards? - What is the current status of MSB’s Retail Salesmen in terms of competency? - What are the reasons why there are gaps of competence in MSB? - What are the solutions and recommendations on how to improve the competency of Retail Salesmen in MSB? 1.4 Research methodology Data collection: both secondary data and primary data are used to find out the requirement and current selling competency of MSB’s staff Secondary data: The secondary data were collected from: Selling process, Job description, reports, Sales and Incentive policy; Vision and Mission, and other supporting documents from the HR Department Primary data: Method analysis: In the process of researching and collecting information at MSB, two (2) methods were used to gather the primary data; In-depth Interview and Survey In-depth Interview: Proven that leaders are the ones who understand the most about the job as well as the requirements of the job for the staffs Therefore, open-ended questions were given to identify the staff's current capacity; Ten (10) people were selected to participate on the In-depth Interview This includes (1) Head of the Retail Banking Division (HRBD), one (1) of the Heads of Regional Level 1, (3) Super Branch Managers and five (5) Sales personnel Appointments were made in accordance with the implementing Rules and Regulations Guidelines of the interview: There are 10 questions given to the subjects which took 30 minutes per individual to complete Location of interview: Head office located at Building 54A Nguyen Chi Thanh, Hanoi, and three (3) Super branches in Hanoi City Head of Retail Banking Division (HRBD): The purpose of this interview was to find out the top management’s point of view in Retail Banking regarding on the sales resources With this, the researcher could determine the views and ideas on the requirements, also the importance of the said trait per individuals and the way of evaluating the strength and weaknesses of the employees Head of the Regional Level (HOR 1), Manager of the northern branches The purpose of interview is to get the person’s point of view and ideas on being the Regional Banking Officer who’s in charge of the Northern market who possesses measuring customer satisfaction RBO is not enough to properly identify customers by segment 10 In fact, which Set up target quarterly, and group Making the survey to methods did you KPI yearly manager of RBO use to evaluate Review the Review the RBO’s achievement, check achievement, check competency? reference from leaders, reference from leaders, customers, and customers, and colleagues Focus on improving colleagues Building training What is your Review the Review the achievement, achievement, Review the achievement, check reference check reference check reference from from leaders, from leaders, leaders, customers, and customers, and customers, and colleagues colleagues colleagues Recruiting the Recruiting the Recruiting the right solution to improve competency for RBO program for current right people for right people for people for the right job, RBO's competency through training RBO; and New hire the right job, the right job, meeting competency in the Hanoi area Build training programs Increase training on meeting meeting standards right from the better in today's for new recruits to be job; competency competency beginning; barely competitive able to work and Set up motivated tool standards right standards right Increase training on job; market? training program for for example: incentive from the from the Set up motivated tool for current staff; Increase training on job; Set up motivated tool for example: incentive program; Having a strategy tin recruiting RBO program; Having a strategy in beginning; beginning; recruiting RBO Increase training Increase training Build training on job; on job; programs for new Set up motivated Set up motivated RBO to be able to tool for example: tool for example: work and training incentive incentive program for current program; program; example: incentive program; staff; APPENDIX 2: SUMMARY IN-DEPTH INTERVIEW FOR SALESMENS (RBOs) No QUESTIONS In your point of view, RBO There are components RBO There are RBO There are RBO There are what is the competency components of of salesmen like: Skill, components of components of components of criteria which must be salesmen like: Skill, Knowledge, Attitude salesmen like: salesmen like: salesmen like: at RBO in MSB Knowledge, Attitude Skill, Knowledge, Skill, Skill, Attitude Knowledge, Knowledge, especially in Hanoi? RBO There are According to your opinion, what knowledge you at MSB have to equip to work well? Knowledge about MSB product, and MSB's competitive advantage Customer insight for work well and reach Retail Banking the target? product, and MSB's competitive advantage Attitude Knowledge Knowledge Knowledge about about MSB about MSB MSB product, and product, and product, and MSB's competitive MSB's MSB's advantage competitive competitive advantage advantage Customer relationship What skill you at MSB have to equip to Knowledge about MSB Attitude management, Communication skill, Presentation skill Customer Empathy Sale planning Segmentation skill, skill skill What attitude I think we will Negotiation skill Strategy Mindset, Strategy Mindset, Strategy Strategy salesmen at MSB follow Change and Innovation, Change and Mindset, Mindset, required to have? competencies that Collaboration, Results Innovation, Change and Change and Top leaders of MSB Orientation Collaboration, Innovation, Innovation, require that is Results Collaboration, Collaboration, Strategy Mindset, Orientation Results Results Orientation Orientation Change and Innovation, Collaboration, Results Orientation How you think Salesmen adapt about the current Salesmen adapt with competencies of the requirement of salesmen at MSB? the bank and some Whether current selling time we need to competencies of learn some course to salesmen meet the update new product requirement of of our bank Salesmen adapt with the requirement of the bank and some time we need to learn some course to update new product of our bank competency requirement of the bank and some time we need to learn some course to update new product of our bank In your own opinion, what the most with the Salesmen adapt Salesmen adapt with the with the requirement of requirement of the bank and the bank and some time we some time we need to learn need to learn some course to some course to update new update new product of our product of our bank bank I think we I think we should be I think we enough improving negotiation I think we should should be competencies you at skill, not lack of any skill and update some be improve MSB lack of? competency knowledge of the MSB's Advisory skill Retail risk What is your solution Build training product Building training Increase training management Training to improve RBO's programs for new program for current on job; competency in the recruits to be able to RBO; and New hire Changing incentive Planning skills Training improving Hanoi area better in work and training today's barely program competitive market? Set up motivated tool for example: incentive program; Increase training on job; program; APPENDIX 3: SURVEY FOR IDENTIFY REQUIRED COMPETENCY OF RBO AT MSB HANOI AREA (This form is used for Leaders and Managers only) Dear Sir/Madam, This form is use for collecting data for research on competencies of RBO at MSB Please answer the question bellow The purpose of questionnaire is only getting information about the requirement for competencies of RBO at MSB Hanoi area Your personal information and questions are used for study purpose only Thanks for your saving time PART 1: PERSONAL INFORMATION Name: Gender: Male: Female: Working time in MSB: year 2-5 years 5-10 years 10-15 years More than 15 years: PART 2: QUESTIONNAIRE This chart demonstrates about list of necessary competencies of RBO Each competency has level, Each level has the corresponding behavior attached in the reference link below for your reference Therefore, please give your opinion about your require RBO for each level I Competency of Knowledge Level Level Level Level Level Product management for Retail Banking Credit operations for Retail Banking Credit appraisal for Retail banking Financial planning Financial advisory Service Quality Risk management and compliance II Competency of Skill 11 Customer insight for Retail Banking Segmentation skill for Retail Banking Customer relationship management for Retail banking Customer Empathy skill 12 Sale planning skill 10 III Competency of Attitude 13 Strategic mindset 14 Change and Innovation 15 Collaboration 16 Results Orientation Level Level Level Level Level Level Level Level Level Level APPENDIX SURVEY FOR IDENTIFYING REQURED COMPETENCIES OF RBO AT MSB HANOI AREA Hoang Hoa No Competencies Head of Retail Head of region banking Division level Tham Branch manager (Super Branch) I II Competency of Knowledge Product management for Retail Banking Credit operations for Retail Banking Credit appraisal for Retail banking Financial planning Financial advisory Service Quality Risk management and compliance Competency of Skill Customer insight for Retail Banking Dong Da branch manager (Super Branch) Ly Thai To Branch manager Average (Super Branch) 3 3 3 3 3 3 3 3 3 3 3 3 3 3 3 2.6 3 3 2 2.4 3 3 3 Segmentation skill for Retail Banking Customer relationship 10 management for Retail 11 12 III 13 14 15 16 banking Customer Empathy skill Sale planning skill Competency of Attitude Strategic mindset Change and Innovation Collaboration Results Orientation 3 3 3 3 3 3 3 3 3 3 3 3 3 3 3 3 3 3 3 3 3 3 3 3 APPENDIX 5: SURVEY FOR IDENTIFY CURENT COMPETENCY OF RBO AT MSB HANOI AREA (This form is used for Managers an) Dear Sir/Madam, This form is use for collecting data for research on competencies of RBO at MSB Please answer the question bellow The purpose of questionnaire is only getting information about the requirement for competencies of RBO at MSB Hanoi area Your personal information and questions are used for study purpose only Thanks for your saving time PART 1: PERSONAL INFORMATION Name: Gender: Male: Female: Working time in MSB: year 2-5 years 5-10 years 10-15 years More than 15 years: PART 2: QUESTIONNAIRE This chart demonstrates about list of necessary competencies of RBO Each competency has level, Each level has the corresponding behavior attached in the reference link below for your reference Therefore, please give your opinion about your require RBO for each level I Competency of Knowledge Product management for Retail Banking Credit operations for Retail Banking Credit appraisal for Retail banking Financial planning Financial advisory Service Quality Risk management and II compliance Competency of Skill Customer insight for Retail Banking Segmentation skill for Retail 10 Banking Customer relationship Level Level Level Level Level Level Level Level Level Level Level Level Level Level Level management for Retail 11 12 III 13 14 15 16 banking Customer Empathy skill Sale planning skill Competency of Attitude Strategic mindset Change and Innovation Collaboration Results Orientation APPENDIX 6: SURVEY FOR IDENTIFYING CURENT COMPETENCIES OF RBO AT MSB HANOI AREA Hoang Hoa Head of No Competencies Retail banking Division Head of region level Tham Branch manager (Super Branch) I II Dong Da Ly Thai To branch Branch manager manager (Super (Super Branch) Branch) Average Competency of Knowledge Product management for Retail Banking Credit operations for Retail Banking Credit appraisal for Retail banking Financial planning Financial advisory Service Quality Risk management and compliance Competency of Skill 2 2.2 2 3 2.4 2 2.2 2 2 2 2 2 2 2 2.2 2 2 2 Customer insight for Retail Banking Segmentation skill for Retail Banking Customer relationship 10 management for Retail 11 12 III 13 14 15 16 banking Customer Empathy skill Sale planning skill Competency of Attitude Strategic mindset Change and Innovation Collaboration Results Orientation 2 2 2 2 2 2 3 2.6 2 2 3 2 2 2.2 2.2 2 2 2 3 2 3 3 2 2.6 2.4 2.4 APPENDIX 7: SURVEY FOR IDENTIFYING CURENT COMPETENCIES OF RBO AT MSB HANOI AREA No Competencie s I Competency of Knowledge Level Leaders (5) Level Level Leve l4 Level Level Brand managers (10) Level Leve Level l3 Level Level Leve l2 RBOs (65) Level Level Level Level Leve l2 Peers (15) Level Quantity (95) Level Level 5 II Product management for Retail Banking Credit operations for Retail Banking Credit appraisal for Retail banking Financial planning Financial advisory Service Quality Risk management and compliance Competency of Skill Customer insight for Retail Banking Segmentation skill for Retail Banking 5 10 7 5 5 5 10 45 26 34 16 39 10 33 16 10 40 15 45 20 10 10 20 40 22 27 45 12 95 12 95 12 95 3 95 95 10 95 95 95 8 95 10 11 12 III 13 14 15 16 Customer relationship management for Retail banking Customer Empathy skill Sale planning skill Competency of Attitude Strategic mindset Change and Innovation Collaboration Results Orientation 4 3 5 20 35 95 3 44 11 3 95 38 10 2 30 32 95 15 48 13 95 5 12 46 6 95 24 38 95 95 ... competencies of salesmen of MSB's retail salesmen (RBOs) in Hanoi area  Chapter 5: Solutions and recommendations on enhancing the competency of MSB's retail salesmen (RBOs) in Hanoi area 7 CHAPTER 2: THEORETICAL... ON ENHANCING THE COMPETENCY OF MSB’S RETAIL SALESMEN (RBOs) IN HANOI AREA 61 5.1 Proposed Training solution on enhancing competency of retail Salesmen of MSB 61 5.1.1 Developing... Understanding the strategic goals, a study was made according on ? ?Enhancing the competency of MSB's retail salesmen in Hanoi Area? ?? in order to attain the goals and improve such traits in terms of competition