THỰC TRẠNG HÀNH VI tổ CHỨC của CÔNG TY cổ PHẦN xây DỰNG COSACO

CONTENTS I II III INTRODUCTION THEORY ABOUT ORGANIZATIONAL BEHAVIOUR SITUATION OF ORGANIZATIONAL BEHAVIOUR OF SAIGON CONSTRUCTION JOINT-STOCK COMPANY (COSACO) GENERAL INTRODUCTION ABOUT COSACO SITUATION OF ORGANIZATIONAL BEHAVIOUR OF COSACO IV I ORIENTATION AND RECOMMENDATIONS FOR RESTRUCTURE OF COSACO INTRODUCTION Vietnam is in the process of integration, development and transformation from a planned into market-oriented economy The open-door policy period faces such disadvantages as lack of capital, technology, skilled labor force or experience, etc As a compensation, we are granted with the certain advantages of a developing countries like low labor cost, water and electricity fee, land rates, material inputs and relatively flexible exchange rate which helps to reduce the price of exports and increase our competitiveness in foreign markets Vietnam has gradually addressed such problems and promoted the favorable conditions over the past time However, competitiveness remains limited, inferior to foreign enterprises Page In the mean time, globalization is in the strong upward tendency; people from all corners of the world are closer to each other, jointly sharing human resources and cheap material inputs The favorable conditions of Vietnam as aforesaid will no longer be advantageous In order to attain better competitiveness, Vietnamese enterprises are forced to select one of the following alternatives: Enhance competitiveness with advanced technology, marketing unique and high-quality products Enhance competitiveness with management technology, bringing sustainable values to customers and introducing high-quality, low-cost products with good services We would like to mention enhancement of competitiveness with advanced technology in this presentation Specifically, this focuses on management of organizational behavior in order to establish an organization with high satisfaction level, motive power and productivity which contributes to manufacture high-quality, low-cost products with good services, sublimating customers’ expectations II THEORY ABOUT ORGANIZATIONAL BEHAVIOR Organizational behavior focuses on the study of thoughts, feelings and actions of the organization The study of organizational behavior constantly poses the questions as follows: - Are employees satisfied with their jobs? - What employees think of the organization? There are three groups of factors that affect feelings, thoughts and actions of employees as follows: - The employee himself - The group where the employee himself engages in for his duty Page - The organizational structure where the employee himself belongs to as a member In reality, there are are various behaviors the employees express in their organization, yet management of behaviors merely focuses on a number of important behaviors including: - Productivity - Absence - Transfer rate - Satisfaction level of employees in the organization An additional factor is collectivism assessed through team-work ability and adaptability Study model of organizational behavior is developed on the function as follows: Y= f(x) Where Y represent organizational behaviour, subject to variable X Variable Y includes the factors as below: - Productivity - Absence - Transfer rate - Satisfaction level of employees in the organization X is an independent variable, a subject for study of organizational behavior comprising the factors influential to variable Y as follows: - Group-level behavior - Individual-level behavior - Organization-level behavior Thus, results of variable Y shall be affected and controlled by variable X Page First of all, variable Y – subject for study of organizational behavior – shall be put in front: - Productivity: An organzation is considered productive if the organization meets the set target and changes inputs into output products at the lowest cost Therefore, productivity comprises both effectiveness and efficiency - Absence: The organization will encounter operational difficulties if the absence rate is too high, not all absence harms the organization, though - Transfer rate: The high transfer rate in the organization means high recruitment and training fees, especially well-cultured employees - Satisfaction: The difference between the values received by the employees and what they believe they can receive High satisfaction level will foster the employees to work better, which is expressed through their actions and behaviors This factor is very important to managers Variable X, factors affecting productivity, absence rate, transfer rate and satisfaction level in the organization According to scholars’ research, various factors are classified into such groups as individual-level, group-level and organization-level variables Individual-level variables include: - Biographical characteristics (age, gender, marital status, tenure) - Ability of each person - Personality - Conception on value of each individual - Attitude of each individual - Needs on encouragement of each individual Group-level variables: Page - Group structure - Communication in group - Leadership - Power and contradiction in the group Organization-level variables: - Organizational structure - Organization culture - Organization human resource policy Organization behavior model in reality also mentions some external factors such as change, stress in work, technology Relationship between behavior and manager: Managers is the person who has work done by others In particular: PLANNING – ORGANIZING - LEADING – CONTROLING To implementing well this function, manager needs following work skills: - Technical skills – ability to apply professional knowledge - Human skills – ability to work with other people, understand them and know how to encourage them - Conceptual skills – ability to analyze and forecast complicated situations to make right decisions According to a research of Fred Luthans: - A successful manager (successful here is understood as promotion in the organization) spends a lot of his working time on networking activity and spend less time on human resource management - An effective manager (effectiveness is measured by work quantity and quality, satisfaction and commitment of his subordinate to stay long with the organization) spends a lot of time on communication and spends less time on networking activity Page So to become either a successful manager or a effective manager, you need to pay attention to develop human skills, in which include networking activity and communication, organizational behavior which is widely used to improve human skills for the manager Organizational behavior is studied based on: Psychology, Management science, demography, politics, and economics Recently researchers have offered four more fields: Sex, Marketing, informatics and communication We will not go for details of theories on organizational behavior but only concentrate on the angle: “widely use of organizational behavior to improve human skills for the manager” Firstly, we study individual-level variables: - Biographical characteristics: Giving us interesting conclusions on age, sex, marital status, tenure which influence on behavior of the individual at working place - Ability: Inability of completing work is presented in work failure Ability to implement work is presented in the complement of the work Having more than enough ability to carry out the work causes dissatisfaction in work, the manager should create jos that are intellectually challenging, creating favorable conditions for the employees to show their high abilities and skills so that they have opportunities to contribute, making them satisfactory and taking highest advantage of their working ability - Personality helps us estimate individual behavior from which the manager has appropriate treatment and solutions to each individual Assigning work appropriately Identifying personality is based on personality classification (Myers- Briggs type indicator) - Study shows us how behavior is formed and the organization can made its staffs have desired behaviors through education and improvement programs - Acknowledgement: Based on motivation, attitude, concern, experience and expectation, acknowledgement not only influences the individual’s behavior but Page also affects his assessment on other’s behavior We often made decisions based on acknowledgement Three factors in attribution theory help us in explaining action and attitude of a person: distinctiveness, consistency, and consensus The factors that hinder acknowledgement: Halo effect, Copying, Projection, Converse effect - Value: Is acknowledgement of things being good or bad, right or wrong and this not only belongs to desire of the individual himself but also of society Value influence decisions, actions and target choice - Attitude: is opinions or assessments valuable about things, human, objects Attitude shows how people feel about it There are three types of attitude: satisfaction with work, stickiness to work, commitment with the organization If you know attitude of a person, their attitude can be forecasted, then reject unwanted behaviors and encourage wanted behaviors - Satisfaction: plays a role both as an independent variable and a dependent variable of organizational behavior model Satisfaction contributes to increase capacity, reduce absence and movement Factors influencing work satisfaction: Intellectually challenging jobs, fair reward, favorable working conditions, supportive colleagues, conformance between personality and work - Encouragement: For the manager to know why there is staff movement or why in the same organization, some people have high work capacity while some others have not: Demand theory: Shows relationship between achievement and capacity and forecast work satisfaction Target set-up theory: Helps in explaining capacity variable in organizational behavior model but does not mention absence, movement rate and satisfaction Fairness theory: explains all four dependent variables However, it forecasts absence and movement better than it forecasts about capacity Expectation theory: explains capacity, absence and movement rate of staffs in the organization Page Group-level behavior basis: Group is two or more individuals, have influence and interdependence, coming to each other to fulfill specific targets To organization, group work has following advantages: - Making more exact decisions - Developing better services and products - Creating a stronger labor force than individual work To staff, group work will bring about following advantages: - Feeling the relationship with other people, being encouraged to finish the common target of the group - Being able to implement different work in group (reduce borderness due to doing the same work) - Fulfilling demand on safety, power, coalition and position Group’s behavior, reflected through work result and satisfaction of group members, depends on many factors: - Group structure contributes to shape and forecast group’s behavior - Group’s working procedure influence work result and members’ satisfaction - Complication or implication of the task that the group is in charge also influence the group’s behavior - Making a group’s decision has advantages and disadvantages compared to making an individual decision Some techniques can be applied to reduce the disadvantages Page Group communication: Communication is a process in which two or many people exchange information and understand the meanings of the information Communication Model Receiving decoded message Decoding message Encoding response Response formaton Encoding Message Message formaton Channel Receiving response Decoding response Noise Channel Communication types: Official communication and unofficial communication (corridor information and rumor) Factors that hinder communication: o Selection factor o Selective acknowledgement Page o Language o Information overloaded Leadership: Leadership is the ability to influence and encourage groups or individuals to contribute into success and effectiveness of the operation of the organization in which they are members There are two theories on leaderships: situational leadership and behavioral leadership Page 10 Power: Power is the ability of person A to put influence on person B then person B does what the person A wants In an organization, there are as following types of power: - Right to force - Right to compliment and reward - Legal power - Profession power - Right to reference - Importance level - Scarcity - Substitution ability Right creates power, right is always accompanied by responsibly Contradiction when working together is unavoidable The contradiction can be settled by competing, collaborating, supporting, avoiding or compromising Organization level: Page 11 Organizational structure: Factors that shape an organizational structure: Work specialization, Partialization, Management department, Control boundary, Centralization and Decentralization, Officialization (Standardization) ORGANIZATIONAL STRUCTURE Mechanical + High partalization Organical + Low officialization + Small control boundary + Decentralization + High officialization + Large control boundary + Centralization + Wide information + Limited information Popular organization design types: Simple structure, bureaucracy structure, matrix structure, group work structure, illusory organizational structure - To design an organizational structure, manager should pay attention to key factors: (1) Work specialization; (2) Work partialization; (3) Management system; (4) Work officialization; (5) Decentralization or Centralization; and (6) Control boundary - Making decision on choosing some organizational structure depends on environmental factors such as: Organization’s strategy; technology; business environment and organization’s scale - A suitable organizational structure will increase work efficiency and employees’ satisfaction also increases That is what organizational behaviorists expect Organizational culture: Culture is the characteristics of the organization At a more complicated level, culture includes assumptions, values, standards, symbols of organization’s members and behavior Organizational culture layers: Page 12 - Surface layer: Cultural events and phenomena that can be easily observed such as: enterprise decoration style, slogans, uniform, publishment, expected behavior and communication ways - Medium layer: Symbols of the enterprise, legends, anecdotes, religious customs followed or worshiped by members - Deep layer: Basic values and business philosophy that the enterprise is pursuing Bringing culture to employees: Culture is spread through stories, rituals, material symbols, language III CURRENT SITUATION OF ORGANIZATIONAL BEHAVIOR OF SAIGON CONSTRUCTION JSC (COSACO) GENERAL INTRODUCTION ON COSACO: Saigon Construction Joint Stock Company (COSACO) was set up after 1975 It is a State-owned company operating in construction service field Its headquarter is at No Nguyen Sieu street, District 1, Ho Chi Minh City It has 120 indirect employees (management departments) and 2,400 direct workers (seasonally employed) Its average revenue for the past two years is 750 billion dongs per year Currently, COSACO is one of the five leading construction service companies in Ho Chi Minh City Page 13 COSACO COMPANY ORGANIZATION MODEL: CAPTAIN MANUFACTURE MANAGEMENT PROCESS: CURRENT SITUATION OF ORGANIZATIONAL BEHAVIOR OF COSACO: Research is carried out from position of director to captains a Organizational structure: Enterprise is using mechanic structure, partialization between divisions, two deputy-directors and captains, power centralized to Director, captains, which is two highest positions Other positions are two deputy-directors and Page 14 divisions (Technique Division, Planning Division, Material Division, Accounting Division, and Administration Division) have to consider the Director’s opinions before making decisions Information, communication between divisions are limited, there are many obstacles in preparing bidding documents When executing bidding, Technique Division has responsibility for providing material prices; Planning Division and Sales Division are in charge of price of manpower, price of subcontractors and suppliers under the management of the Deputy Director who is in charge of sales The disagreement between Technique Division and Sales Division on bid estimation frame cause time waste and make it easy to confuse of work classification, calculating unit, some items that have common characteristics Sales Division does not master technique so its price choosing is not appropriate and they cannot control work area to assign work to subcontractors In order to shorten the time spent on preparing bidding documents, Technique calculated quantity at the same time when Planning Division calculates unit price, it assumes a lot of time to adjust the price difference of the two divisions Technique Division must complete calculation days before the deadline for handing in bidding documents so that Planning Division has time to adjust the documents Besides, Human Resources Division has to prepare legal documents, capacity document for Planning Division to gather documents As there is no general leader for bidding document preparation, contradiction and delay usually occur Project execution is the tasks of captains under the leadership of the Directors, and other divisions play a role of assistance Self-decision right of captains at site is very high Directly guidance from the Director causes work disagreement between captains and other divisions Captains execute projects without close control from the company, the success of the projects depends on effect and influence from developer: The project that is closely controlled by the developer will has its execution progress rate ensured and has higher quality than projects having no close control from the developers Organizational culture: There are three organizational culture layers Page 15 Surface layer: Having standardization of office decoration, employees wear uniforms at work, paper forms, fonts and presentation way are done following regulations Social communication behaviors are standardized Medium layer: Forming common practice in COSACO: Yearly death anniversary for the founder of construction field (20/12), all employees meet on January 4th of Lular New Year The leaders pray for all projects when they are groundbroken or finished the construction Deep layer: Forming basic values and philosophy of COSACO: “Bringing about sustainable development” and “Speed, quality, effectiveness” However, there has not been any form to bring COSACO culture to every employee; knowledge about company culture is still limited Human resources policy: Currently COSACO still apply policies regulated by the Government: having 13th month salary, having award on national holidays on 30/4 and 1/5, pensions for retirement according to social insurance policy There is no other extra subsidy to encourage employees b Group behavior: The company has work done by separate division so there is no group set-up for project execution c Individual behavior: Biographical characteristics: The majority of employees in the company is more than 30 years old, 95% of them are married so absence and movement rate is low The majority of the employees are stick with the company since their graduation Ability: A recruitment standard of the company is that employees must graduate from a university, so the majority of the employees meet the work’s requirement The ability exceed the requirement of the work is not measured Employees are not encouraged with intellectually challenging jobs The company has not created favorable conditions for its employees to contribute, creating work satisfaction or taking the best advantage of employees’ ability Page 16 Personality: Board of Directors, captains have high self-control, self-decision on work, applying professional knowledge, having creativeness and independence in work Administration Division, Finance Division mainly work according to the Director’s order and have little independence in work In terms of work motivation, these two divisions are still passive The majority of heads and staffs or other divisions have low independence, working as per order, being passive in work Job assignment is not based on personality, but only based on professional ability Studying: There has not been in-time complementation on good behaviors such as: enthusiasm in work, being on-time at work, effectively working In stead, there is only complementation and rewards at the end of the year Unexpected negative behaviors have not been improved, such as: not completing work in time, having many failures in work The company does not base employees’ ability to give them what they deserve Knowledge: Conceptual knowledge has not been given to employees; effects mislead the conception on work and judging others, which lead to inappropriate decisions Attitude: Only Board of Directors and captains are at work satisfaction level, other divisions are only at work sickness level Encouragement: There has been no research on need level of employees to give a suitable encouragement Only Board of Directors and captains show their needs at performance and contribution level, employees in other divisions stop at life’s demand level Satisfaction in work: Salary is paid basing positions Productivity and work completion based salary payment has not been implemented The company only does compliments and rewards annually It does not attach importance to create opportunity for employees to show their skills, ability, and diversity in jobs and freedom in work Working conditions and the agreement between personalities and work are not paid attention Page 17 IV ORIENTATION AND RESTRUCTURE OF COSACO To create competitiveness in the market, COSACO should improve input activities (bidding jobs) and complete output activities (construction at site), based on the wide appliance of organizational behavior management to improve human skills for managers, improving the company efficiency to reduce project’s cost Regarding structure of COSACO, the separation between divisions is showed in bidding document preparation Communication between divisions is limited Power is centralized, control area is limited Hence, it is proposed to set up work group in charge of preparing bidding documents, including members from Material Division, Technique Division, Planning Division, and Administration Division and to avoid disagreement between divisions A deputy-director should be appointed to be group leader to set up procedure and standards in bidding and make decisions on related matter in timely manner Manufacture on site: It is proposed to put captains under close control of the Company to closer control manufacture activities and the implementation of philosophy and value that the Company is pursuing Regarding organization structure model: It is proposed to adjust/supplement (as following model) Page 18 Page 19 Recommendation for personal behavior: not only leaders make decisions, but each person must make decision for his/her work, which depends on his/her perception relating to behavior judgment of others Therefore all employees from Directors to staff should be equipped with knowledge of organization behavior The exchange of organization behavior depends on each position The HR department must know the qualifications, personalities to arrange suitable jobs for each employee to make them satisfied with the assigned job It should be noted that the company bases on skills, capacity and personalities to arrange suitable jobs for employees and make timely bonus and encouragement, which should be brought to learning theory so that employees have voluntary dynamics (conditional activity theory) at work and improve their skills Creating working groups with high intellectual challenge In summary: COSACO only meets the basic demand – living demand of employees To improve work efficiency, productivity and meet development demands, COSACO will pay more attention to higher demands of the human beings (Maslow demand tower theory) Board of Directors of COSACO should study demands of each employees to make timely encouragement It should understand capacity, awareness, attitude of each employee to guess his/her behaviors in the organization to remove unexpected behaviors and keep the expected ones This is the thing that successful and effective administrators need in “Organization behavior management” References: -Danh Van (9.2005), ‘Creating the future rather than waiting its coming”’, Saigon Economincs, Ho Chi Minh city - Du Lan, Le Anh Dung (02.2005), ‘Listening each employee’, Saigon Liberation, Ho Chi Minh city Page 20 -Greenberg J (2005), Managing behavior in organizations, United State of America: Prentice-Hall International Inc -Marcic D., Selter J., Vaill P (2001), Organizational Behavior Experiences and Cases, United State of America: Thomson Learning -McShane S.L., Von Glinow M.A.(2005), Organizational Behavior,NewYork: McGrawHill Co -Nguyen Huu Lam (1998), Organization behavior, HCM city Education Publishing House -Robbins S.P (1999), Organizational Behavior, United State of America: Prentice-Hall International Inc -Hien Bao (09.2005), ‘Attention to be paid to cultural difference’, Saigon Entreprenuer weekend, HCM city -Organization behavior-Ta Thi Hong Hanh – HCM Open University - Documents of Saigon Construction JSC Internet: -Borgatti S.P (1996), ‘Organizational Theory: determinants of structure’, http://www.analytictech.com/mb021/orgtheory.htm -Clark D.L (2000), ‘Big Dog’s Leadership page Organizational Behavior’, http://www.donclark@nwlink.com -Mc.Namara C (1999), ‘Organizatinal Culture’, http://www.amazon.com -Wertheim E.G (?), ‘Historical Background of Organizational Behavior’, Page 21 ... Other positions are two deputy-directors and Page 14 divisions (Technique Division, Planning Division, Material Division, Accounting Division, and Administration Division) have to consider the... ability - Personality helps us estimate individual behavior from which the manager has appropriate treatment and solutions to each individual Assigning work appropriately Identifying personality... Biographical characteristics: Giving us interesting conclusions on age, sex, marital status, tenure which influence on behavior of the individual at working place - Ability: Inability of completing work