Corporate culture in FIFTH MEDIA GROUP current situation and recommendations for vietnamese enterprises

ii Academy of Finance Graduation thesis ACKNOWLEDGEMENT This thesis includes a lot of details and varieties, thus it would be difficult carry out it on one’s own This study receives encouragement and help from many people and I feel indebted to their ads, and wish to express my gratitude to them First and foremost, I would like to convey my special thanks to my supervisor, Ms Bui Thi Bich Thuy for her guidance, suggestions and invaluable advice in the knowledge as well as in English editing Without her, this thesis could not have been completed Special thanks to all instructors without whose knowledge and assistance this thesis would not have been successful My debt is also acknowledged to Fifth Media Limited Company for allowing me to the internship in Fifth Media Group office and Ms Nguyen Thu Dung – my direct supervisor in Thanh Xuan transaction office I truly appreciate all thes enthusiastic contributions And finally, I am extremely grateful to all staff of Fifth Media Group who cooperated with me during the survey and helped me with all the valuable information for my study iii Academy of Finance Graduation thesis LIST OF FIGURES AND TABLES Figure 1.1: Role culture…………………………………… ……………………………….12 Figure 1.2: Task cultur………… …………………………… ……………………………13 Figure 1.3: Power culture……………………………………… ………………… .13 Figure 1.4: Person culture………………………………………… ……………………… 14 Figure 1.5: Organizational culture model of Fons Trompenaars and Charles HampdenTuner………………………………………………………………………………………… 15 Figure 1.6: Elements of corporate culture…………………………………………………….16 Figure 1.7: Denison model of organizational culture…………………… …………………18 Figure 2.1: Developing history of Fifth Media Group……………………………………… 24 Figure 2.2: Organizational structure of Fifth Media Group… 26 Figure 2.3: Slogan and logo of Fifth Media Group………………………………………… 29 Figuer 2.4 – 2.5: Settings in Fifth Media Group working rooms…………………………… 31 Figure 2.6-2.7-2.8: Ceremonies in Fifth Media Group…………………… …………….32,33 Figure 2.9-2.10: Cozy lunch with Board of Directors at Fifth Media Group ………………34 Figure 2.11-2.12: Training time at Fifth Media Group……………………… …………… 35 Figure 2.13: Dressing code in Fifth Media Group…………………………… …………….36 Figure 2.14: Gender distribution of the sample………………………………… ………… 41 Figure 2.15: Tenure in years……………………………………………………… ……… 42 Figure 2.16: Department distribution of the sample………………………………… …… 42 Table 2.1: Descriptive statistics for Organizational Culture Survey………………………….43 Table 2.2: Abbreviations using in Organizational Culture Correlation Matrix………… …45 Table 2.3: Correlations of the dimensions of the Organizational Culture…………… …45,46 Figure2.17: Corporate culture of Fifth Media Group…………………………………… ….51 iv Academy of Finance Graduation thesis TABLE OF CONTENTS Declaration…………………………………………………………… ………………i Acknowledgement……………………………………………………….…………….ii List of figures and tables…………………………………………………….……….iii Table of contents……………………………………………………… .iv Introduction Rationale of study Aims of study Scope of study Methods of study Structure of study CHAPTERS CHAPTER I: LITERATURE REVIEW 1.1 Definition of Corporate Culture 1.1.1 Definition of Culture 1.1.2 Definition of Corporate Culture v Academy of Finance Graduation thesis 1.2 Impacts of corporate culture 1.2.1 Corporate culture can create internal reinforcement for organisations 1.2.2 Corporate culture can be a tool of management control 1.2.3 Corporate culture can be a powerful tool to enhance competitive advantage 1.2.4 Negative corporate culture can be a factor to resist movement and innovation 1.3 Factors affecting corporate culture 1.3.1 National culture 1.3.2 Role of leadership 1.3.3 Learned cultured values 1.4 Types of corporate culture 1.4.1 Role culture 1.4.2 Task culture 1.4.3 Power culture 1.4.4 Person culture 1.5 Corporate culture models 1.5.1 The model of Edgar H Schein 1.5.1.1 Artifacts 1.5.1.2 Espoused values 1.5.1.3 Basic underlying assumptions 1.5.2 The model of Daniel R.Denison vi Academy of Finance Graduation thesis 1.5.2.1 Mission 1.5.2.2 Consistency 1.5.2.3 Involvement 1.5.2.4 Adaptability CHAPTER II: CURRENT CULTURE SITUATION OF FIFTH MEDIA GROUP 2.1 Introduction to Fifth Media group 2.1.1 History of Fifth Media Group 2.1.2 Organizational structure 2.1.3 Business activities 2.2 Analyzing Fifth Media group’s corporate culture 2.2.1 Performance of Fifth Media Group’s corporate culture acording to Edgar H.Schein model 2.2.1.1 Artifacts 2.2.1.2 Espoused values 2.2.1.3 Basic underlying assumptions 2.2.2 Performance of Fifth Media Group’s corporate culture according to Daniel R Denison 2.2.2.1 Descriptive statistics of the Denision Organizational Culture Survey 2.2.2.2 Inferential statistics of the Denison Organizational Culture Survey 2.2.2.3 Four dimensions of Fifth Media Group’s corporate culture based on Denison model vii Academy of Finance 2.3 Evaluating Fifth Media group’s corporate culture 2.3.1 Fifth Media Group’s corporate culture strengths Graduation thesis 2.3.1.1 Base on Shein model 2.3.1.2 Base on Denison model 2.3.2 Fifth Media Group’s corporate weakness CHAPTER III: CONCLUSION AND RECOMMENDATIONS FOR VIETNAMESE ENTERPRISES 3.1 Conclusions 3.2 Limitations and avenue for future research 3.3 Recommendations for Fifth Media Group and Vietnamese enterprises to improve the corporate culture 3.3.1 Recommendations for FIFTH MEDIA GROUP to improve the corporate culture 3.3.1.1 Improve the core values system 3.3.1.2 Increase the empowerment among the whole group 3.3.1.3 Develop the ability to adapt to change 3.3.1.4 Spread out the strategic direction and intent 3.3.1.5 Focus on improving intangible cultural values 3.3.2 Overview of corporate culture in Vietnam at present 3.3.3 Recommendations for Vietnamese enterprises to build up and maintain a corporate culture 3.3.3.1 Improve the awareness of corporate culture viii Academy of Finance Graduation thesis 3.3.3.2 Leader of the enterprise should be a typical visible role model 3.3.3.3 Harmonize between individuals’ strengths and corporation’s requirements 3.3.3.4 Strengthen material investment in building and developing organisational culture 3.3.3.5 Widely disperse the sense of mission in the whole organization 3.3.3.6 Increase the adaptability of the organization 3.3.3.7 Improve the involvement of employees 3.3.3.8 Reinforce the consistency of the organization REFERENCES APPENDIX Academy of Finance Graduation thesis Academy of Finance thesis Graduation INTRODUCTION Rationale of study How could corporations create the differences from the others to be successful in a modern world context as today? What is the strategy that a firm should implement to survive and prosper in the highly competitive environment where concepts such as “integration” or “globalization” are not something new to people’s mindset? Gradually, explanation and solution to find answers for such those questions are on the top priority of each strategy formulated by leaders of worldwide companies, and Vietnamese ones particularly Apparently, developing business activity and a strong enterprise community are the key factors to help the development of each country should be soon well-emerged However, how to build up a globally competitive community and maintain the personality of each country still needs much consideration of strategic planners This leads to the idea of building up a corporate culture to represent the unique identity in the process of global integration However, acknowledgement and an accurate point of view of the corporate culture and the importance it brings to the success and outstandingly positions organization on the market are not widely received, especially to Vietnamese market where the limitation of economic development and education are still in existent Hence, in order to enhance the position of Vietnam in the world arena, it is essential that corporate culture building and maintaining issues should be given significant consideration by all Vietnamese leaders With those critical factors above, the author proposes to make a clear and deep analysis on how corporate culture places a considerable effect on the success of a Vietnamese enterprise, on the basis of assessing the current situation at FIFTH MEDIA GROUP, a leading company in the mobile and digital marketing service in Vietnam After that, on that basis, the author focuses thoroughly on how to reinforce those cultural strengths through suggesting some recommendations, which can draw many valuable lessons for Vietnamese enterprises to follow Academy of Finance thesis Graduation For those above reasonable implications, the author decides to make deep analysis in the topic of “Corporate culture in FIFTH MEDIA GROUP: current situation and recommendations for Vietnamese enterprises” Aims of study How farther researches may imply, standing on a FIFTH MEDIA GROUP shoulders is also the aim this thesis trying to achieve The research is fueled by two main objectives, namely: a To find out the elements, the relationship, and contributions of employees to the corporate culture of FIFTH MEDIA GROUP b To evaluate those factors in helping FIFTH MEDIA GROUP build up and maintain a corporate culture On the basis of two main objectives, to suggest, and learn valuable lessons from FIFTH MEDIA GROUP’s corporate culture, which could be a typical example for other enterprises to study Hence, the underlying thread of those objectives is the urge to improve self – knowledge of how corporate culture could affect the effectiveness of an organization in the market, to raise strong awareness of the importance of corporate culture among Vietnamese enterprises and finally to provide Vietnamese enterprises with a noteworthy case study and valuable lessons from the corporate culture of FIFTH MEDIA GROUP The thesis revolves around five main questions: i What is corporate culture, its elements, its impacts and models to assess the corporate culture of an organization? ii Which elements that FIFTH MEDIA GROUP’s corporate culture consist of? iii Which model to base on to assess and evaluate the corporate culture of FIFTH MEDIA GROUP? iv What lessons could be learned from FIFTH MEDIA GROUP’s corporate culture to for Vietnamese enterprises to build up a corporate culture? Scope of study 73 Academy of Finance thesis 46 Graduation Schein, H E (1985-2005) Organizational Culture and Leadership, 3rd Ed., Jossey-Bass 47 Siehl, C & Martin, J (1988), Measuring Organizational Culture: Mixing Qualitative and Quantitative Methods, in Jones, M.O, et al (Eds), Inside Organizations: Understanding the Human Dimension Sage Publications, Newbury Park, CA 48 Smircich, L (1983), ‘Concepts of culture and organizational analysis’ Administrative Science Quarterly 49 Sorensen, J B (2002) ‘The strength of corporate culture and the reliability of firm performance’ Administrative Science Quarterly 50 Spreitzer, G (1995) Psychological empowerment in the workplace: Dimensions, measurement and validation Academy of Management Journal, 41(5), 511-525 51 Struwig, F., & Smith, E (2002) The relationship between organizational culture and strategy formulation in South African firms South African Journal for Business Management, 33(1), 21-29 52 Teemu Reiman & Pia Oedewald (2002), The assessment of organizational culture: A methodology study 53 Trimpey, T (2004) Information and technology managers as influential change implementation agents: An organizational culture perspective Unpublished master’s thesis, University of Oregan, Portland 54 Troy M Mouton (2002), Organizational culture’s contribution to security failures within the United States Intelligence community 55 Van Muijen, J et al (1999), Organizational Culture: The Focus Questionnaire European Journal of Work and Organizational Psychology, volume 8, issue 4, pp 551–568 56 Vo Hong Nga (2005) Nexus between organisational culture and IT implementation in Vietnamese organizations: a doctoral thesis Swinburne University of Technology 57 Yauch, C and Steudel, H (2003) ‘Complementary Use of Qualitative and Quantitative Cultural Assessment Methods’ Organizational Research Methods 74 Academy of Finance thesis Graduation APPENDIX Open-ended questions for employees on levels of company’s corporate culture Questions for employees Subjects Architecture Language Questions - What you feel when working in a building like that? - Do you think architecture affect a lot of working efficiency? - What kind of language you and you and your 75 Academy of Finance thesis Graduation colleagues often use? Dress code - What you think about uniform? your company’s Vision and Mission - What is your company’s vision and mission? - Do you all know clearly about company’s vision and mission? - Where can company’s vision and mission can be seen and found? Core values - Are the core values of the bank anknowledged clearly by all staff? Basic underlying assumptions - Are you aware of what assumptions may include? - Can you tell me more details about company’s basic underlying assumptions? basic underlying 76 Academy of Finance thesis Graduation 77 Academy of Finance thesis Graduation Academy of Finance Graduation thesis Academy of Finance Graduation thesis Academy of Finance Graduation thesis Academy of Finance Graduation thesis Academy of Finance Graduation thesis Academy of Finance Graduation thesis Academy of Finance Graduation thesis Academy of Finance Graduation thesis Academy of Finance Graduation thesis 10 Academy of Finance Graduation thesis ... factors in helping FIFTH MEDIA GROUP build up and maintain a corporate culture On the basis of two main objectives, to suggest, and learn valuable lessons from FIFTH MEDIA GROUP s corporate culture, ... CHAPTER 2: CURRENT CULTURE STATE AT FIFTH MEDIA GROUP 2.1 Introduction 2.1.1 History of Fifth Media Group Fifth Media Group – an interactive mobile and digital media solutions and services group, ... CULTURE SITUATION OF FIFTH MEDIA GROUP 2.1 Introduction to Fifth Media group 2.1.1 History of Fifth Media Group 2.1.2 Organizational structure 2.1.3 Business activities 2.2 Analyzing Fifth Media group s