(Luận văn) work overload at vietinbank – x branch

UNIVERSITY OF ECONOMICS HO CHI MINH CITY International School of Business t to ng hi ep w n lo ad ju y th yi pl n ua al Vu Thi Thuy n va ll fu m oi WORK OVERLOAD nh at AT VIETINBANK – X BRANCH z z k jm ht vb gm om l.c MASTER OF BUSINESS ADMINISTRATION an Lu n va ey t re Ho Chi Minh City - Year 2018 UNIVERSITY OF ECONOMICS HO CHI MINH CITY t to International School of Business ng hi ep w n lo ad ju y th yi pl al n ua Vu Thi Thuy n va ll fu m oi WORK OVERLOAD at nh z AT VIETINBANK – X BRANCH z k jm ht vb gm om l.c MASTER OF BUSINESS ADMINISTRATION an Lu SUPERVISOR: DR PHAN THI MINH THU n va t re ey Ho Chi Minh City – Year 2018 t to ng Table of Contents Executive summary hi ep CHAPTER 1: COMPANY INTRODUCTION 1.1 General Information about Retail Banking w n 1.2 Company background lo ad 1.3 The Symptoms ju y th 1.3.1 The first symptom: High turnover rate of employees .9 yi 1.3.2 The second symptom: Low job satisfaction 11 pl 1.3.3 The third symptom: Low key performance indicators 12 al n ua 1.3.4 The fourth symptom: Low job performance 14 CHAPTER 2: PROBLEM IDENTIFICATION 16 va n 2.1 Problem mess .16 fu ll 2.1.1 Over working hours .17 m oi 2.1.2 Job stress .18 nh 2.1.3 Unrealistic targets 19 at z 2.1.4 Not enough Coaching & feedback 20 z ht vb 2.1.5 Inconsistent of management style 21 jm 2.1.6 Unfair between compensation and contribution of employees .21 k 2.1.7 Lack of vacation and family benefit .22 gm 2.2 Tentative problems 24 l.c 2.2.1 The first tentative problems: Work overload 24 om 2.2.2 The second tentative problems: Ineffective leadership 25 an Lu 2.2.3 The third tentative problems: Incompatible compensation policy 25 2.3 .29 2.5 Problem existence 30 2.6 Problem importance .31 ey 2.4 Problem definition .29 t re The central problem 29 n va 2.2.4 New findings from literatures .26 CHAPTER 3: ALTERNATIVES ANALYSIS AND POSSIBLE SOLUTIONS 34 3.1 Potential causes of the problem 34 3.2 Verify causes of the real problem .38 t to ng 3.3 Root cause 42 hi 3.4 Tentative solutions 42 ep 3.4.1 Set solution 46 w 3.4.2 Plan design: 49 n lo Conclusion .57 ad References .58 y th ju APPENDIX 62 yi Appendix 1: Interview guide .62 pl ua al Appendix 2: The result of interview 70 n Appendix 3: Transcript 78 n va Appendix 4: The example of a set KPI at Vietinbank – X Branch 91 ll fu oi m at nh z z k jm ht vb om l.c gm an Lu n va ey t re Executive summary t to Today, the banking profession is considered a dream job with many people because ng the high salary and reward up to several tens of millions per month However, in order hi to achieve that high pay, the bankers must suffer a lot of pressure and hardships At the ep retail division of VietinBank - X Branch, the average income of non-title staff ranges w from 10 to 20 million VND, maybe even higher if the employees achieved good sales n lo However, the rate of employee quit the job at X Branch is always high at ad y th approximately 50%, the number of new recruiting staff is not enough to offset the ju number of employees resign The retail division is always has the highest staff yi turnover rate compared to other departments in VietinBank - X Branch The unstable pl ua al personnel situation caused significant negative impacts on the business results of X n Branch, the revenue and profit decrease continuously in recent years va One of the main unsettled problems at VietinBank - X Branch is the staff being work n ll fu overload, pressure and heavy stress The main reasons leading to this problem is the oi m quantity and quality of personnel not meeting the demand of work, the staff is not nh trained leading to low productivity, lack of confidence and disappointed In addition, at the inappropriate workflow with many unnecessary steps is also one of the causes to z z increase workload for employees vb jm ht To improve the work overload situation, this paper proposes two solutions related to the focus on training human resources and reducing the number of customers at the k gm counter by encouraging more and more customers to use the Internet banking channel l.c The total cost of this solution included the training cost and the alternative system is om about 698,882,500 VND However, the benefits from the above solutions can an Lu completely cover the above costs In detail, with the target of successfully register a minimum of 10,675 Internet banking per year, X Branch will obtain a huge fee from va this product estimated about 1,127,280,000 VND per year These solutions not only n skills to confidently handle work, improve employee productivity, enhance employee satisfaction and engagement In addition, the move to Internet banking channel is a ey human resource training contributes to help the staff increase their knowledge and t re have a positive impact in the short term but also in the long term The emphasis on suitable solution with the development trend of the banking industry, bringing many benefits for both customers and banks (saving costs, fast and convenient, etc) t to ng hi ep w n lo ad ju y th yi pl n ua al n va ll fu oi m at nh z z k jm ht vb om l.c gm an Lu n va ey t re CHAPTER 1: COMPANY INTRODUCTION t to 1.1 General Information about Retail Banking ng Retail Banking is defined as the type of bank that deals directly with individual customers hi ep by providing them with a multiplicity of services like opening a savings account, taking a loan, applying for a credit card and customers may also inquire about w n potential banking products that they may need at a future date A retail bank which lo ad acts as a comprehensive financial service provider for retail clients, allowing them to ju y th purchase multiple financial instruments, under one roof (1, 2) yi Related to the trend of Retail Banking in Vietnam, Mr Rahn Wood (Head of Retail pl Banking at VIB Bank) said that start in 2014, development of retail banking will be a al ua natural development trend With a developing country characterized by low average n incomes, the primitive banking system and the demand for finance and payment va n services increases exponentially, surely the retail banking market in Vietnam will be ll fu grow strongly in the next decade (3) m oi Nowadays, most banks have started to focus on promoting retail banking in the nh Vietnamese market According to Vietnam Banking Industry report 2015, corporate at z lending is the main activity of the banks in Vietnam and it accounts for almost half of z ht vb total loans while only 28% are loans to individuals According to the State Bank of jm Vietnam, only 20% of the population in Vietnam holds a bank account This illustrates k that the banks in Vietnam has a huge opportunity to develop retail banking services l.c gm (4) Currently, local banks are competing fiercely to increase market share in various ways, om such as expanding Branch network across the country, developing online banking and an Lu telephone services, Giving priority financial services to VIP customers and etc that the human resources are not professional and lack of concentration and qualifications, knowledge of retail banking but also have skills to communicate with ey recruitment and training of staff, build a team of professionals not only have the t re synchronization Therefore, the banks in Vietnam have to pay attention to the n va However, one of the difficulties for banks in Vietnam when joining the retail market is customers They also create a good working environment for employees to promote the capacity and enhance the cohesion of employees with the bank (5) t to 1.2 Company background ng VietinBank - X Branch in Ho Chi Minh city was established in April 30, 1985 It has a hi ep wide network with the headquarters in X District and eight transaction offices in 8, 10 and 11 District w n VietinBank - X Branch always provides variety of banking products and services to lo ad customers like opening a savings account, taking a loan, providing banking guarantee ju y th products and etc After over 30 years of operation, total outstanding loans for retail customers of X Branch reached 1.110 billion VND, accounting for 12,98% of yi pl outstanding loans in the area; total mobilized capital reached 3.855 billion, accounting al ua for 18,61% of total deposits in the area With these results, VietinBank is the bank n with the third largest market share of credit and the largest market share of deposits in va n the area fu ll To specialize in customer management and design policies tailored to each customer m oi segment, VietinBank classifies customers into two segments in the whole system: nh Retail customers segment and Wholesale customers segment Retail division at z specialized in providing banking products for Retail customers including individuals z vb and micro enterprises with turnover of less than 20 billion Dong Wholesale division is jm ht responsible for developing wholesale customers that are organizations and enterprises k with turnover of over VND 20 billion gm The organizational model of VietinBank – X Branch is described as follows: l.c Figure 1: Organizational model of VietinBank - X Branch om Accounting department Personnel administration department ey Eight transaction offices t re Retail customer department n Enterprises customer department Vice president of other divisions Vice president of Retail division va Vice president of Wholesale division an Lu Director Synthetic department As you can be seen in the organizational model above, X Branch is managed by the Directors of Branch and three Deputy Directors The branch is divided into departments with different functions At June 30, 2018, the total number of personnel t to ng of X branch is 78 staff In which, the Retail division accounts 57 employees including hi Credit officers and Tellers accounted for the largest share of personnel at X Branch ep with about 73% of total w In recent years, the business results and the personnel situation of the retail division at n lo X Branch has many significant negative changes In detail, the level of employee ad satisfaction is very low and the number of employees resigning has increased rapidly y th ju in consecutive years, X Branch is always in shortage of personnel; the business results yi have been declining continuously for many years In this analysis, I will analyze to pl n VietinBank – X Branch ua al find out the potential problems and provide solutions to improve this situation of n va 1.3 The Symptoms ll fu 1.3.1 The first symptom: High turnover rate of employees oi m The below chart will show the number of employees of VietinBank - X Branch from nh 2015 up to now: at Figure 2: Compare the actual number of employees and the minimum number z 62 61 60 60 72 57 k jm 71 ht 69 vb 70 68 z 80 gm 50 The actual number of employees 30 Minimum number of employees om l.c 40 an Lu 20 10 Y 2016 Y 2017 Y 2018 ey t re Y 2015 n va Source: Human Report 2015, 2016, 2017, 2018 in VietinBank - X Branch Each year, based on the size and business network of each Branch, VietinBank will assign the minimum number of employees for each Branch, it is also called boundary of human resources The boundary is the minimum number of employees required to run the business normally Every year, based on the size, the number of transaction points of each branch and the personnel policy of Vietinbank from time to time, the t to ng Head office will assign the minimum number of employees to each Branch in the first hi quarter of year ep It can be seen that, X Branch always in the shortage of personnel from 6-11 w employees In recent years, the recruitment at X branch is very difficult, the number of n lo applications is very low and the quality of personnel does not meet, leading to X ad branch did not recruit the required needed In addition, the existing staff at this Branch y th ju continuously quit the job lead to the new recruitment does not cover the full number of yi employees leave pl n ua al Figure 3: The number of labors classify based on the work time va 60% 53% n 51% 46% ll fu 50% m 40% nh 30% 32% oi 28% 23% 23% 23% at 21% z 20% z ht vb 10% Y 2016 jm 0% Y 2017 Y 2018 k 1-2 years >2 years l.c gm