Thesis outline core value of PVFC corporate culture final for present

National Economic University NEU Business School CORE VALUE OF CORPORATE CULTURE AT PETROVIETNAM FINNANCE CORPORATION (PVFC) Instructor: ASSOC PROF TRAN THI VAN HOA, PHD Student: HO NGHIA THU Class: EMBA9b TABLE OF CONTENT CHAPTER 1:THEORETICAL BACKGROUND 1.1 1.1.1 1.1.2 1.1.3 1.2 1.2.1 1.2.2 1.2.2.1 1.2.3.2 1.2.4.3 1.2.5.4 1.2.6.5 1.2.7.6 1.2.8.7 1.2.9.8 1.3 1.3.1 1.3.2 Concept of culture and corporate culture Definitions of culture Definitions of corporate culture The role of corporate culture in enterprise development Edgar Schein Model on corporate culture and core value Introduction to Edgar Schein Model Core value of corporate culture based on Edgar Schein Model Goals Mission Vision Core values Business Philosophies Communication and behavior Social responsibilities Ritual Factors impact on corporate culture at Vietnam enterprises External factors Internal factors TABLE OF CONTENT CHAPTER 2: CORE VALUE OF PVFC CORPORATE CULTURE 2.1 2.1.1 2.1.2 2.1.3 2.1.4 2.2 2.2.1 2.2.2 2.2.3 2.2.4 2.2.5 2.2.6 2.2.7 2.2.8 2.3 2.3.1 2.3.2 Introduction of PVFC Overview of PVFC Organization structure Customer network of PVFC Product & service Analysis core value of PVFC corporate culture Goals Mission Vision Core values Business Philosophies Communication and behavior Social responsibilities Ritual Assess core value of PVFC corporate culture Achievement Short comings TABLE OF CONTENT CHAPTER 3: RECOMMENDATIONS 3.1 3.1.1 3.1.2 3.2 3.2.1 3.2.2 3.2.3 3.2.4 3.2.5 3.2.6 The goal of building and developing corporate culture of PVFC Orientations of PVFC’s development to 2025 The goal of developing core values of PVFC corporate culture Recommendations to improve core value of PVFC corporate culture Officialize the core values of PVFC corporate culture Strengthen communication PVFC corporate culture Reform the recruitment, training and using human resources Improve the work environment more open and more attractive Encourage to enhance the awareness and consciousness of staffs Increase monitoring to raise awareness and responsibilities of staffs 3.3 Some conditions for PVFC to promote core value of corporate culture 3.3.1 3.3.2 3.3.3 3.3.4 For PVFC leaders For PVFC managers For PVFC employees For PVFC unions INTRODUCTION PETROVIETNAM FINANCE CORPORATION - PVFC  PetroVietnam Joint Stock Finance Corporation (PVFC), a non-banking financial institution – A member of PetroVietnam (PVN)  Foundation: previously known as PetroVietnam Finance Company was established in June 19th, 2000, 100% state owned company  Mission: the spine (main) financial institutions of the PetroVietnam, aims at financing PetroVietnam’s development and designing financial instruments to assist PetroVietnam’s Group staff policy  Original Charter Capital: quite small beginning equity of 100 billion VND (about million US$ at that time)  Original Staff: people INTRODUCTION PETROVIETNAM FINANCE CORPORATION - PVFC  After more than 13 years of construction and development, PVFC has become a powerful financial institution of PetroVietnam as the biggest financial institution in the Vietnamese Market and PVFC has been appreciated as one of the fastest growing non-banking financial institutions in Vietnam  Location: 22 Ngo Quyen Street, Hoan Kiem Dist, Ha Noi City  Present Charter Capital: 6.000 billion VND (about 300 million US$), include 78% of the share hold of PetroVietnam and 10% of Morgan Stanley  Total asset: about more than 90.000 billion VN  Braches/Subsidiary Companies: 15  Staff: about 1,700 people  Products: co-financing, lending trust, investment trust, investment advisory and brokage, restructuring advisory services, etc ANALYSIS CORE VALUE OF PVFC CORPORATE CULTURE  Goals:  Build the PVFC become powerful trade-mark, provides the multiform financial service and high priority for customer especially Vietnam National Oil and Gas Group and for a part of customer in the key economic sectors: energy, mining and infrastructure  Vision:  As financial backbone institutions of the PetroVietnam, creating reputable brands on the domestic market and the world market, become top of Vietnam commercial banks and top 10 strong banking - financial group of energy sector in the Asian region  Mission:  For the growth of the Petro Vietnam and the economics development of the country  Meet demand in financial services, with motto of that is partner of client, for the development and prestige of business;  Increasing business value and benefit of shareholders constantly  Create dynamic, professional working environment, equal opportunity for all members of the development;  Commitment to build business culture for the community development ANALYSIS CORE VALUE OF PVFC CORPORATE CULTURE  Core value: PVFC has built the core value system of corporation include:  Solidarity – Agreement:  Sincerity, tolerance, commitment, respect, cooperate, help each other to work together to develop Have spirit of weddings and funerals of other members of Big PVFC Family Delication - Aspirations  Have goals, aspirations, strong motivation Dedicated, take high responsiblity for work; did not mind the difficulty, dedicate wholeheartly, strive to complete assigned tasks ANALYSIS CORE VALUE OF PVFC CORPORATE CULTURE  Active – Creative  Active, creative, flexible, decisive, honest, objective, create a strong belief are all for PVFC honor  Action drasticly – Compliance  Dare to think, dare to do, dare to take responsibility Thoughtful, responsible, drastic, submissive, compliant, have cooperative spirit for general success Comply laws and regulations of PVFC; Consider professional ethics is as a basis to perform tasks  Sharing – Taking responsibility for community  Have loving heart, is responsible with community Participate in social security programs actively of the Government and programs that Group launched Participate in studying extension actively Be always grateful to who dedicated and sacrificed for the country, for the younger generation today Voluntary initiative to help people who faces to difficulties and trouble by practical actions ANALYSIS CORE VALUE OF PVFC CORPORATE CULTURE  Business Philosophies: “Professional - Safety - Efficiency - Transparency - Towards the customer” Professional Be Proficient in work, dynamic, creative and efficient, professional manner, professional conduct, professional service During operation, PVFC considered in the human factor; completes recruitment, training continuously; and strengthen the education of politics and ideas  Safety Stages of investment activity, credit, financial services etc are followed comply with all procedures, regulations and laws Risk control is included in all activities of PVFC  Efficiency To ensure safety but also to ensure the effeciency of investment activities, credit and other financial activities, on the principle of balancing of the interests between harmony PVFC, customers and employees ANALYSIS CORE VALUE OF PVFC CORPORATE CULTURE  Communication and behavior:  As early as 2001, PVFC Cultural Convention was developed and issued to conventional rules of communication, the core behavior in PVFC The convention was amended, supplemented, and officially completed in 2011 In 2008, the PVFC ethical standards was born and improve conventions of PVFC behavior  Cultural behavior conventions with the Corporation  Action Principle: Consider PVFC is our general house Every thought and action is all to construct, to protect and to enhance prestige, brand, rights of corporation  Ethical Standards: dedicate wholeheartedly and will to strive to build PVFC soon became Financial - Banking Group with sustainable development and strong international brand ANALYSIS CORE VALUE OF PVFC CORPORATE CULTURE  Cultural behavior conventions with one’s self  Action Principle: every staff and officer needs to be proud of being a member of the big family PVFC Building The beautiful big common PVFC house is build ourselves, should dedicate heart, mind, energy and enthusiasm with constantly aspiration to that  Ethical Standards: occupational passion, learning effort and creative work, by all way to overcome difficulties and obstacles with the desire to succeed  Cultural behavior conventions with colleagues  Action Principle: colleagues are brothers and sisters in general house PVFC, That is the our second dear house of our Let think and action as members of a family  Ethical Standards: Sincerity, tolerance, commitment, respect, sharing, cooperation, help each other move forward ANALYSIS CORE VALUE OF PVFC CORPORATE CULTURE  Cultural behavior conventions with work  Action Principle: make hay while the sun shines, to assure the quality of work that measured by superiors’ and clients’ satisfaction  Ethical Standards:  To be creative, energetic, dare to dream, dare to do, dare to take responsibility  Thoughtful, responsible, positive, to have sense of co-operation for success of general duty  To be flexible, determined, honest, unprejudiced, build up strong belief of customers for PVFC’s dignity  Obey the laws and PVFC’s rules, career morals is considered as the main point in implement duties  To be friendly, co-operative, polite.in communication ANALYSIS CORE VALUE OF PVFC CORPORATE CULTURE  Cultural behavior conventions with customers/ partners  Action Principle: When dealing with clients / partners, every staff is a Marketing officer, is a representative of the Corporation in his / her work, so he/she should be aware of his/her behavior that may bring advantages or disadvantages so he/she has to follow the rules of cultural behavior seriously  Ethical Standards: enthusiastic, open, honest, listen with cooperative attitude, help on the basis of equality and mutual development  Cultural behavior conventions with society/ community  Action Principle: Every employees contribute their little heart, mind and force voluntary to build strong PVFC, contribute to build Vietnam become a civilized democratic equitable and prosperous country  Ethical Standards: Have loving heart, be always grateful to who dedicated and sacrificed for the country, for the younger generation today Voluntary initiative to help people who faces to difficulties and trouble by practical actions ANALYSIS CORE VALUE OF PVFC CORPORATE CULTURE  Social responsibilities:  It can be said that the corporate culture of PVFC is mixing identity traditions of Vietnamese ethnic and businesses in PetroVietnam, with modern style of financial institutions, as well as its own developing way That makes unique culture and unique feature of PVFC PVFC appreciates values of business ethics and human values, always aims to better the social responsibility of business  Ritual:  Corporate culture has received adequate attention from managers Especially, at PVFC, human element is always placed on top, is cared that expresses in all kinds of holidays in Corporate culture (as Transfer, Consolidate, Reminder, Link/ Confederate) are held successfully and effectively by PVFC SUMMARY CORE VALUE OF PVFC CORPORATE CULTURE  Achievement:  Good brand and reputation  Good facilities and infrastructure  Good relationship with Petro Vietnam and its members  Fair internal document system  Many cohesive creative and meaning rituals  Good working environment  Implement social responsibility well SUMMARY CORE VALUE OF PVFC CORPORATE CULTURE  Short comings:  Lack of a clear direction development  Change leadership and business scale grows fast  The concern for the maintenance and development of cultural is declined  Communication and surveillance cultures not perform well  Weak compliance to regulations  Consciousness, thought of leaders & staff are changing  Easy recruiting process  Unfair payment policy RECOMMENDATIONS IMPROVE CORE VALUE OF PVFC CORPORATE CULTURE 3.1 The goal of PVFC The business environment is becoming more complex and become highly competitive that is requiring businesses in general and commercial banking in particular must constantly increase their resources Focus on implementing PVFC developing strategy to 2025, convert on run as Petroleum joint-stock commercial banks model, develop comprehensively and sustainable achieve and maintain Its position in top 10 strong locations joint-stock commercial banks of region in energy sector PVFC aims to continue fostering, completing and implementing PVFC corporate culture, it is indeed priceless intangible assets of business RECOMMENDATIONS IMPROVE CORE VALUE OF PVFC CORPORATE CULTURE 3.2.1 Officialize the core values of PVFC corporate culture  Over 13 years of building and developing, senior leadership team has changed several times, the context of economic changes, the working environment, vision, objectives, and strategies are adjusted  It is time to evaluate, re-systemize our core value as foundation of completing working corporate culture in new stage of development  Need to set up a specialized department led by a senior leader to coordinate work with consulting firms for ensuring the desired implementation results 3.2.2 Strengthen communication PVFC corporate culture  To enhance the exchange of information between senior leaders, middle leaders and employees through official directives, internal information system, meetings, conferences, seminars, encounters  Conveying information, it also provides communication, understanding and consensus among leaders, managers and staff at the highest level  Propagate official culture system, core value, strategy, objective, mission, vision; take action plans and encourage, motivate PVFC’s member for the high unified implementation RECOMMENDATIONS IMPROVE CORE VALUE OF PVFC CORPORATE CULTURE 3.2.3 Rectify the recruitment, training and use of talents  Be necessary to overcome the weaknesses of personnel work Firstly, finalize recruitment policy to attract and select people with ability, passion for work, minimize the recruitment through relationship  Next, take stronger innovation of the training, enhance training through internal trainers, professional activities and take training the right people, expertise and have critical, accurate assessment of training result  Finally, inherit and innovate the evaluation, reward and incentive policies in PVFC 3.2.4 Improve the work environment more open and more attractive  The work environment has particularly important role in maintaining and developing corporate culture, especially in present, when we spend more hours per day at the office and contact, communicate with leaders and colleagues in working process  Besides policies, office equipment, resources and activities, it is necessary to complete and implement correct workplace behavior which is premise for thoughts and behavior among members in PVFC RECOMMENDATIONS IMPROVE CORE VALUE OF PVFC CORPORATE CULTURE 3.2.5 Encourage to enhance the awareness and conscientiousness of staffs  The role of propaganda, education and training are important, should be considered as key factors in the process of building and development PVFC’s culture  The process of communication, education and training must be done regularly; method of implement must be innovated and enriched to make workplace culture become easy to understand and approach  There should be many discussions between leader and staff to discuss the orientation, planning, desire of the parties for unifying people’s thought and action 3.2.6 Strengthen monitoring the maintenance and development culture  Focus on the way close the gap between our existing values and desired values that means we need to avoid maintaining and developing working culture  Culture department, training department and relevant units supervise, monitor, evaluate, take timely reminders, and suggest corrective rewarded in the implementation process, take periodical reports on recommendations to maintain & develop working culture to leaders of the Corporation RECOMMENDATIONS SOME CONDITIONS FOR PVFC 3.3.1 For PVFC leaders  The role of the head is important in building enterprise culture Enterprise culture is the culture of senior leaders, expressing the will of the leader  Leaders should always have consensus and support program of building/ innovating working culture  Leader should direct, advocate and enthusiastically participate in all stages of building/innovating culture  And be always "exemplary" in implementing culture, revitalizing cultural elements: core value, behavior, measures and actions  All values are meaningless if we not get sufficient of these factors 3.3.2 For PVFC managers  Building and implementation of culture depends on the head unit due to managers of units as the bridge between senior manager and staff of the unit  The manager has to understand, participate in campaigns, be exemplary as well as receive and reflect the issues of staff to senior leaders RECOMMENDATIONS SOME CONDITIONS FOR PVFC 3.3.3 For PVFC employees  Culture is only possible if there is consensus, unanimous of all members Therefore, each individual needs to think and act for the prosperity and sustainability of the corporation because that is also the long-term interests of each member  Instead of requiring individual interests, firstly, each person should complete their own task and regulation of PVFC’s workplace culture Thereafter, individual will get what exactly they deserve 3.3.4 For PVFC unions  With the unions and the relevant units: Trade union, Youth union and Training department should enhance their role and responsibility in maintaining and developing working culture, particularly in propaganda, monitoring, evaluating and proposing solutions during process of workplace culture  Bureau, Organizing Board and relevant units advise leaders to build policies, terms of resources for creating a friendly, open-minded, attractive working environment, as well as implement measures to maintain and develop workplace culture RECOMMENDATIONS CONCLUSION  Culture is only possible if there is consensus, unanimous of all members Therefore, each individual needs to think and act for the prosperity and sustainability of the corporation because that is also the long-term interests of each member  I hope and believe that this dissertation could be a further step that helps clarify theories about corporate culture into practice that my employer – PVFC – could apply in present and future reality  I would to get a lot of your advices to complete my thesis ... developing corporate culture of PVFC Orientations of PVFC? ??s development to 2025 The goal of developing core values of PVFC corporate culture Recommendations to improve core value of PVFC corporate culture. .. for all members of the development;  Commitment to build business culture for the community development ANALYSIS CORE VALUE OF PVFC CORPORATE CULTURE  Core value: PVFC has built the core value. .. 2.3.2 Introduction of PVFC Overview of PVFC Organization structure Customer network of PVFC Product & service Analysis core value of PVFC corporate culture Goals Mission Vision Core values Business