organization structure and design in vinhomes jsc

Background In 2018, - Changed name to Vinhomes Joint Stock Company, increased charter capital to VND 28,365 billion and listed on Ho Chi Minh City Stock Exchange HOSE, thereby becoming t

FPT UNIVERSITY – CAMPUS HO CHI MINH

1 Do Huu Hoang Hung SS181125 100% 2 Thai Kim Vy SS181089 100% 3 Ngo Chi Phuc SS181231 60% 4 Vo Bui Hai Nguyen SS181088 70% 5 Ho Thi Quynh Nhu SS180083 100%

Thành phố Hồ Chí Minh, 02/2024

Contents

Introduction: 4

Abstract: 4

Background 5

Organization Structure and Design 6

1 The Basic elements of Vinhomes JSC organization 6

1.1 Job specialization of Vinhomes 6

1.1.1 Benefits and Limitations of Vinhomes’s Specialization 6

1.1.2 Alternatives to Specialization of Vinhomes 7

1.2 Grouping Job: Departmentalization of Vinhomes 7

1.2.1 Functional departmentalization of Vinhomes 7

1.2.2 Product departmentalization of Vinhomes 8

1.2.3 Customer departmentalization of Vinhomes 9

1.2.4 Location departmentalization of Vinhomes 9

1.3 Establish Reporting Relationships in Vinhomes JSC 10

1.3.1 The Chain of Vinhomes’s Command 10

1.3.2 Tall versus Flat organization of Vinhomes 10

1.4 Distributing Authority of Vinhomes 11

1.5 Coordinating Activities of Vinhomes 11

1.5.1 The Need for Coordination of Vinhomes 11

1.5.2 Pooled Interdependence of Vinhomes 12

1.5.3 Sequential Interdependence of Vinhomes 12

1.5.4 Reciprocal Interdependence of Vinhomes 12

2 The Bureaucratic Model of Vinhomes’s Organization Design: 12

3 Situational Influences on Vinhomes’s Organization Design: 13

3.1 Core Technology 13

3.2 Environment: Stability or Fluctuation 14

3.3 Organizational Size and Life Cycle 14

4 Form of Vihomes JSC’S Organization Design 15

4.1 Organizational Design of Vingroup: 15

4.2 Organizational Design of Vinhomes 15

5 Emerging Issues in Vinhomes’s Organization Design 16

5.1 The Team Organization of Vinhomes 16

5.2 The Virtual Organization of Vinhomes 17

5.3 The learning organization of vinhomes 18Conclusion 19References 19

List of figures

Figure 1.2.1 1 General Organization Design of Vinhomes 8

Figure 4.2 1 General Organization Design of Vinhomes 15

Figure 4.2 1: Clearly organization design of Vinhomes 15

Introduction:

In the bustling landscape of the real estate, organizational structure and design play a pivotal role in determining the success and sustainability of companies Among the notable entities within this domain, Vinhomes JSC emerges as a prominent player, renowned for its innovative approaches and strategic organizational framework

Vinhomes considers transparency and efficiency as the guidelines for its corporate governance model The Board of Directors is also well aware of how these criteria ensure benefits for shareholders and sustainable development for the Company As a key member of Vingroup, Vinhomes inherits its core values and governance principles from the parent company It also follows the best international practices on organization structures, applying a clear separation of ownership, management, and executive All Vinhomes activities are arranged according to appropriate functions with specific responsibilities in the value chain (Company, 2022)

Abstract:

This research report embarks on a comprehensive exploration of Vinhomes s organizational structure and ’design, aiming to unravel the intricacies of its operational framework, hierarchy, decision-making processes, and cultural dynamics By delving into these aspects, we seek to provide a nuanced understanding of how the company's organizational architecture shapes its performance, adaptability, and competitive advantage in the dynamic real estate market

Through a combination of qualitative and quantitative research methodologies, this study endeavors to analyze the underlying principles guiding Vinhomes's organizational structure and design By examining factors such as departmentalization, reporting relationships, span of control, and integration mechanisms,

we aim to elucidate the rationale behind the company's organizational choices and their implications for operational efficiency and strategic agility

Furthermore, this research report serves as a testament to the importance of organizational structure and design in facilitating alignment, coordination, and innovation within companies operating in complex and rapidly evolving industries By highlighting Vinhomes's organizational practices, successes, and challenges, we aspire to offer valuable insights and lessons for real estate practitioners, researchers, and stakeholders navigating similar terrain

The subsequent sections of this report will delve deeper into various dimensions of Vinhomes's organizational structure and design, including its historical evolution, current configuration, leadership philosophy, communication channels, and response mechanisms to external factors Through this comprehensive analysis, we aim to uncover actionable recommendations and best practices for enhancing organizational effectiveness and resilience in the competitive landscape of the real estate

Background In 2018,

- Changed name to Vinhomes Joint Stock Company, increased charter capital to VND 28,365 billion and listed on Ho Chi Minh City Stock Exchange (HOSE), thereby becoming the Top 3 companies with the largest market capitalization in Vietnam at the time (Company, 2022)

- Introduced the world-class mega-city model and opened Vinhomes Ocean Park and Vinhomes Smart City for sale (Company, 2022)

- Inaugurated Landmark 81, the tallest building in Vietnam with 81 floors and a height of 461m, at

Organization Structure and Design

1 The Basic elements of Vinhomes JSC organization

1.1 Job specialization of Vinhomes

Job specialization is the degree to which the overall task of the organization is broken down and divided into smaller component parts (Griffin, 2021) Vinhomes JSC has been organized according to specialization, that included Tree care staff, security guard, building engineering staff, handover staff, accountant, … (Anon., 2024)

1.1.1 Benefits and Limitations of Vinhomes’s Specialization

Benefit and limitations of job specialization in Vinhomes JSC Workers performing small, simple tasks job specialization allows employees to focus on a special task, leading to increased efficiency and productivity As an example, a guard employee at Cong Ty Co Phan Vinhomes has just only observing for signs of crime or disorder and investigate disturbances (Anon., 2024) By mastering a particular skill or task, employees can perform their duties more proficiently, leading to faster turnaround time and higher output levels Therefore, when an employee who performs a highly specialized job is absent or resigns, the manager can train someone new at relatively low cost (Griffin, 2021) Reduce risks if there are any bad unforwarded situations, Vinhomes’s employees could solve mistakes fast and minimizes them, that will be made because Vinhomes’s employees have complete mastery of the task associated with their role

Beside benefit of jobs specializations, there are some challenges of them Firstly, monotonous task and a worker of Vinhomes can have negative consequences He can be leaded to restlessness or even job dissatisfaction because the job may be so specialized that it offers no challenge or stimulation In addition, jobs specialization also leads employees to boredom and fatigue, limited skill set, isolation, limited

Alternatives to specialization aim to balance the needs of the organization and the individual desires of employees The Job Characteristics Model (JCM) (Job Characteristic Model, 1980) It’s a normative approach to job enrichment and job redesign (Noon, 2008) In Vinhomes, for example, Sales and Marketing: Roles in this field involve promoting Vinhomes’ properties and securing sales This could include positions like Sales Consultant or Marketing Specialist.The model proposes that there are five core job characteristics that lead to three critical psychological states, resulting in improved work performance, internal motivation, and lower absenteeism and turnover (Griffin, 2021)

1.2 Grouping Job: Departmentalization of Vinhomes

1.2.1 Functional departmentalization of Vinhomes

Functional departmentalization is an organizational structure where jobs are grouped based on the functions they perform This approach is common in the form of departmentalization (Anon., 2023) In vinhoms company, function departmentalizations are devided in to General Meeting of Shareholders, Board of Directors, Board of Directors, Supervisory board, Management, Project Development Division, Construction Division, Design Institute, Sales and Marketing Division, Industrial Real Estate Division, Operations Division, Inspection, Safety Security and Fire Prevention Division, Administrative and Support Division, Smart City Division (Anon., 2024) As an example in functional departmentalization of Vinhomes, housing sales and marketing block promote properties and close deals for Vinhomes company’s products

(Company, 2022)

Figure 1.2.1 1 General Organization Design of Vinhomes

Because of grouping job in departmentalization, it also include some advantages: providing a logical reflection of functions, simplifies training and supervision of subordinates, Each department can be staffed by experts in that functional area, Coordination of activities within the departments is easy (Griffin, 2021) Besides advantages of functional departmentalization, Vinhomes could face to some disadvantages: Decision making can become slower and more bureaucratic, may de-emphasize overall company objectives, Accountability and performance become increasingly difficult to monitor, and reducing coordination between different functions or departments (Griffin, 2021)

1.2.2 Product departmentalization of Vinhomes

Product departmentalization is an organizational strategy that divides employees into teams to work on all aspects of a particular project or product line (Griffin, 2021) In the aspect of Vinhomes company, product specialization devided into plenty of department For example, in Sales Devision, there are two project,

disadvantage Firstly, advantages Product departmentalization promotes specialization, innovation, and :

customer-centric approaches It can lead to improved product quality and customer satisfaction, foster innovation, and enhance marketing efficiency (Griffin, 2021) These help Vinhomes company gains more market share of their products Therefore, Vinhomes company have the percentage of selling Times City is 100% reported by Vinhomes company in 06/2015 Disadvantage of grouping product departmentalization, It also comes with challenges, such as the potential for silos and resource allocation complexities (Griffin, 2021)

1.2.3 Customer departmentalization of Vinhomes

Customer departmentalization, Vinhomes target the middle-upper class in Vietnam The installment is more than 5 years with 2 years no extra fees This leads to Vinhomes offers different product lines such as Vinhomes Sapphire, Vinhomes Ruby, and Vinhomes Diamond to cater to different customer segments Each product line is designed and priced differently to meet the specific needs and preferences of its target customer segment For example, in Sales and marketing division, it divides in to 2 product departmentalization and in each products departmentalization was divided into plenty of apartments, those base on customer segments, sale and marketing division 1, sales and marketing division 2 and 3, … to commit and sales Vinhomes products based on each type of customers (Anon., n.d.)

1.2.4 Location departmentalization of Vinhomes

Location departmentalization, there are many projects of Vinhomes and each project is located at another area, for example: Vinhomes Ocean Park in Hanoi, Vinhomes Grand Park in HCM City, Vinhomes Marina in Hai Phong,… therefore, these affect to the way that Vinhomes organization structure For example, each project will include the same function with other project or may include other functions as the specific those projects’ performing For example, in Business Departent, it is divided into Northern Sales department, and

1.3.1 The Chain of Vinhomes’s Command

The chain of command in Vinhomes Joint Stock Company, a Vietnam-based company operating in the residential real estate industry, is as follows:

1 Board of Directors: The Board of Directors is at the top of the chain of command They are elected by the shareholders and are responsible for the overall direction of the company The board members include Mr Pham Nhat Vuong, Ms Pham Thu Huong, Ms Pham Thuy Hang, Mr Nguyen Viet Quang, Ms Nguyen Dieu Linh, Mr Adil Ahmad, Mr Chin Michael Jaewuk, Mr Ronaldo Dy-Liacco Ibasco, Mr Yoo Ji Han (Anon., 2024)

2 CEO: The CEO of Vinhomes is Thu Nguyen (Anon., 2024)

3 Senior Executives: Reporting directly to the CEO are the Senior Executives This includes John Farrell Douglas, the Director of Finance/CFO, and Thuy Mai, the Chief Administrative Officer (Anon., 2024)

4 Middle Management and Other Key Roles: Under the upper management level, there are other key roles such as Ba Nguyen, the Corporate Officer/Principal, Duc Nguyen, who is in charge of Sales & Marketing, and Cong Tien Le, the Comptroller/Controller/Auditor (Anon., 2024) 5 Employees: At the bottom of the chain of command are the employees who report to their

respective managers (Anon., 2024)

1.3.2 Tall versus Flat organization of Vinhomes

From tall organization point of view, there are several layers of management between frontline employees and the top level In Vinhomes, this is reflected in its clear separation of ownership, management, and executive roles All activities are arranged according to appropriate functions with specific responsibilities 1 in the value chain (Company, 2022)

On the other hand, a flat organization is characterized by few or no levels of middle management between

operational agility—could be inferred from Vinhomes’ commitment to transparency, efficiency, and international best practices (Company, 2022)

Therefore, it can be initially identified Vinhomes has a unique organizational structure that incorporates elements of both tall and flat organizations

1.4 Distributing Authority of Vinhomes

The company operates on a clear separation of ownership, management, and executive roles This structure allows for a clear distribution of authority, with each function having specific responsibilities in the value chain This approach is reflective of a tall organizational structure, where there are several layers of management between frontline employees and the top level (Company, 2022)

in addition, Vinhomes has recently announced the construction of an additional self-trading distribution system in parallel with the existing dealer system nationwide (Anon., 2024) This move indicates a decentralization of authority, allowing for more autonomy at the local level

However, the specifics of how authority is distributed within Vinhomes may vary and evolve over time

1.5 Coordinating Activities of Vinhomes

1.5.1 The Need for Coordination of Vinhomes

Interdependence is a fundamental structural feature of the international system It plays a crucial role in explaining the nature and dynamics of international organizations (IOs) and broader international relations (Griffin, 2021)

In the context of Vinhomes, interdependence involves linkages among actors (such as Vinhomes itself, other real estate developers, investors, and customers) and systems of interrelationships

As Vinhomes operates in the real estate sector, it interacts with various stakeholders, including buyers,