Nâng cao năng lực làm việc của giao dịch viên tại ngân hàng TMCP đầu tư và phát triển việt nam – chi nhánh hải phòng e

DECLARATION OF AUTHORSHIPI hereby declare the thesis “Improving working competence of tellers in the Joint Stock Commercial Bank for Investment and Development of Vietnam – Hai Phong Bra

Nguyen Thi Thu Ha, VN1001509

DECLARATION OF AUTHORSHIP

I hereby declare the thesis “Improving working competence of tellers in the Joint

Stock Commercial Bank for Investment and Development of Vietnam – Hai Phong Branch”is my work under the guidance of Doctor Pham Thi Nhuan

The contents are summarized in the learning process, the data on the subject arehonestly obtained through implementing experiments which accurate and truly followscientific logic

This thesis has not been published in any research project

Author

I sincerely thank Doctor Pham Thi Nhuan who has dedicatedly supported me withvaluable guidance, suggestions to complete my dissertation “Improving workingcompetence of tellers in the Joint Stock Commercial Bank for Investment andDevelopment of Vietnam – Hai Phong Branch”

I am grateful to all teachers who have taught me knowledge for two years ofgraduate program;

I am forever thankful to my family and my classmates at IEMBA HO3who haveshown their great support during the time of study and research

Yours sincerely!

Author

TABLE OF CONTENT

TABLE OF CONTENT ii

LIST OF TABLES ii

LIST OF CHARTS & FIGURES ii

L IST OF ABBREVIATIONS ii

PREFACE 2

1 The necessity of chosen topic 2

2 Purposes research thesis 2

3 Research scope and object 2

4 Research method 2

5 Significance of research topic 2

6 Thesis structure 2

CHAPTER I THEORETICAL BASES OF WORKING COMPETENCE OF BANK TELLERS 2

1.1 WORKING COMPETENCE 2

1.1.1 Definition of working competence 2

1.1.2 Roles of working capacity assessment 2

1.1.2.1 Roles of working capacity assessment to employees 2

1.1.2.2 Roles of working capacity assessment to an organization 2

1.1.2.3 Roles of working capacity assessment to economy 2

1.1.3 Working capacity assessment model 2

1.1.3.1 ASK model introduction 2

1 1.3.2 Elements of ASK model 2

1.2 Banking institutions and bank teller 2

1.2.1 Commercial bank definition 2

1.2.2 Bank teller definition 2

1.3 Working capacity assessment of bank teller 2

1.3.1 Factors contributing to working capacity of bank teller 2

1.3.1.1 Attitude 2

1.3.1.2 Skill 2

1.3.1.3 Knowledge 2

1.3.2 Significance of implementation of working capacity assessment model 2

1.3.2.1 Significance to banking institutions 2

Significance to banking institutions 2

1.3.3.2 Significance to bank teller 2

1.3.3.3 Significance to banking customers 2

1.4 Design assessment with opinions of bank manager, bank teller and customer 2

CHAPTER II CURRENT STATUS OF WORKING COMPETENCE OF BANK TELLERS AT BIDV – HAI PHONG BRANCH 2

2.1 Introduction of BIDV – Hai Phong branch 2

2.1.1 History of establishment & development 2

2.1.2 Organization model 2

2.1.3 Business results of BIDV - Hai Phong branch in period 2012 – 2014 2

2.2 Assessment of working capacity of bank teller at BIDV - Hai Phong Branch 2

2.2.1 General assessment of working capacity of bank teller at BIDV - Hai Phong Branch 2

2.2.2 Assessment of working capacity of bank teller at BIDV - Hai Phong Branch through research tools 2

2.2.2.1 Feedback from BIDV managers about working capacity of bank teller2 2.2.2.2 Feedback from bank tellers 2

2.2.2.3 Feedback from customers 2

2.3 Discussion about working capacity of bank tellers at BIDV – Hai Phong branch 2

2.3.1 Strength 2

2.3.2 Existing limitations and causes of problems 2

CHAPTER III SOLUTIONS TO ENHANCE WORK PERFORMANCE OF BANK TELLERS AT BIDV – HAI PHONG BRANCH 2

3.1 Orientation of development goals of BIDV – Hai Phong branch 2

3.1.1 Orientation of development goals of BIDV 2

3.1.2 Orientation of development goals of BIDV – Hai Phong branch 2

3.2 Solutions to enhance the work performance of bank teller at BIDV – Hai Phong branch 2

3.2.1 Enhance job performance of bank tellers through changing working attitudes 2

3.2.2 Improvement communication skills of tellers 2

3.2.3 Organization the professional training for tellers 2

3.2.4 The solution for the organization and management and use of staff 2

3.2.5 Other solutions 2

3.3 Some suggestions Recommendations for BIDV 2

CONCLUSION 2

REFERENCE ii

LIST OF TABLES

Table 2.1: The business results of BIDV Haiphong in period 2012-2014 2

Table 2.2 Number of tellers at main office and transaction offices of BIDV Hai Phong .2

Table 2.3 Number of tellers by genders: 2

Table 2.4 Structure of the number of tellers by age 2

Table 2.5 Education level of tellers at BIDV Hai Phong Branch 2

Bảng 2.6 Summary of foreign language, IT skills of tellers at BIDV Hai Phong 2

Table 2.7 Years of service in BIDV 2

Table 2.9:Feedback from BIDV managers about working capacity of bank teller 2

Table 2.10: Results of feedback from bank tellers 2

Table 2.11 Ages of surveyed customers 2

Table 2.12 Years of using BIDV and some credit institutions that customers are using as follows 2

Table 2.13: Feedback from customers on tellers at BIDV Hai Phong 2

Table 2.14: Summary of results of survey from customers, managers, tellers 2

Table 2.15 Summary of reviews from customers through Customers Service about tellers of BIDV Haiphong from 2012 to 2014 2

Table 3.1: Proposed training program for building work competence 2

LIST OF CHARTS & FIGURES

Figure 1.1 ASK Model for capacity assessment 2

Figure 1.2 The ladder of career growth of bank tellers 2

Figure 1.3: Three components of attitude 2

Figure 2.1: Organizational Chart BIDV Hai Phong 2

Figure 2.2: Feedback from BIDV managers about working capacity of tellers 2

Graphic2.3: Results of feedback from bank tellers 2

Figure 2.4: Feedback from customers 2

Figure 2.5: Results of feedback from customers on tellers 2

LIST OF ABBREVIATIONS

BIDV Hai Phong: BIDV Hai Phong Branch

BIDV: Back for Investment and Development of Vietnam JSCGDV Teller

1 The necessity of chosen topic

The world has entered a new era of economic integration and globalizationwhich has become an inevitable trend and increasingly drawn attention of a greatnumber of countries Banking institutions are not definitely out of this general trend Inbanking business activities, customers usually interact with bank tellers; therefore, theirattitude and working style has a decisive effect on the image and reputation of a bank

Therefore, knowledge, experience, service attitude, ability to convincecustomers, appearance and dress code can increase or decrease service quality.Nowadays, due to the arrival of a variety of both foreign and domestic commercialbanks, the technological level and banking products offered by banks almost have nodifference, commercial banks can only enhance their competitiveness by increasingquality of staff’s service The higher the service quality is, the better competitiveadvantage the bank achieves

In short, customers’ loyalty depends heavily on their impression wheninteracting with the bank’s employees There are many customers who conductbanking transactions with a bank for a short time decide to switch to another bankbecause of their dissatisfaction with the customer services offered by the former bank

How can banks both retain existing customers and attract more new ones? Theservice quality of a bank teller is an important factor which creates customer’s goodimpression and makes significant contributions to customer’s decision on whether touse the services of a bank or not In particular, bank tellers are the ones who interactwith customers on the most regular basis They are considered as a bank’s ambassadors

to build its image, brand name as well as its culture

Determining quality of service and working style of teller team is one of theimportant factors to attract customers and improve the competitiveness of BIDV In

recent years, BIDV has focused on creating a good image for this team Currentlyquality of bank tellers at BIDV - Hai Phong Branch has has many positive changes, but

it has not yet met standards set by management board Some officials have lowqualifications and weakness in communication skills, customer service attitude whichhas not demonstrated professionalism of BIDV

Being aware of the importance of bank tellers in operation of banking industryand some existing limitations in their performance of customer service, the authordecided to choose the thesis with the title:

“Improving working competence of tellers in the Joint Stock Commercial Bank for Investment and Development of Vietnam – Hai Phong Branch”

2 Purposes research thesis.

With the topic, the research has the following purposes:

(1) Systemize the theoretical basis about improving staff’s working competenceand capacity in business organizations

(2) Analyze to assess the status of working capacity of bank teller staff atBIDV- Hai Phong branch to point out the strengths, weaknesses and causes of existingproblems

(3) Propose a number of measures of improving bank tellers’ workingcompetence at BIDV - Hai Phong branch and some proposals to implement themeasures mentioned above

3 Research scope and subject.

- Research scope:

 Data is going to be collected within the period of 2012-2014

 Time to carry out the study is from July 1st, 2015 to September 1st, 2015

- Research subject: 45 bank tellers working at BIDV – Hai Phong Branch

4 Research method.

• Research procedure:

Theory and the reality of the banking operations are combined In this study, thestatistical survey method is used with the subject of 10 administrators, 45 tellers and

100 customers of the bank Process can be generalized through the following steps:

- Identify research subject

- Design research through questionnaires and surveys

- Gather information and data

- Make data analysis based on the survey results

- Make conclusions about the research results

• Secondary data collection:

The theoretical and practical bases through information about banking activities

of BIDV - Haiphong branch are collected This information will be collected from thebank's websites and internal reports (period of 2012-2014)

• Primary data collection with the aim of assessing tellers’ competence based on:

- Bank managers’ opinions and solutions (obtained through interviews)

- Tellers’ self-assessment opinions

- Customers’ opinions and suggestions, who make transactions at the banks

• Data Processing: The information and data collected above are processedthrough excel software, and then compared and analyzed; and conclusions are drawn tooffer proper solutions

5 Significance of research topic.

Based on the analysis and assessment of the bank teller staff’s working capacity

at BIDV - Hai Phong branch, this research will point out their strengths andweaknesses, which will help the bank managers have a general overview onachievements and limitations which need remedying As a result, several measuresmay be promptly proposed to enhance tellers’ working competence, which make acontribution to improving customer service quality and making a good impression andreputation of BIDV within banking industry

6 Thesis structure

Excluding the introduction, conclusion, appendix, charts and figures, reference,the report is divided into 3 main chapters:

Chapter 1: Theoretical bases for working capacity of bank tellers

Chapter 2: Current status of the working capacity of bank tellers at BIDV Haiphong branch

-Chapter 3: Solutions to enhance work performance of bank tellers at BIDV- HaiPhong branch

CHAPTER I THEORETICAL BASES OF WORKING COMPETENCE

OF BANK TELLERS

1.1 WORKING COMPETENCE.

1.1.1 Definition of working competence.

According to Marxist Psychology, humans competence associates with theirown activities, and when it comes to understand the human competence is not a singlemental attribute but is the sum of total individual’s psychological attributes meeting theoperational requirements and ensuring action achieved the desired results

According to Mac Van Trang (2000), competence is the sum of a anindividual’s properties meeting operational requirements and ensuring the operations

be achieved superior results Competence is not a general concept but it belongs to aparticular activity, such as mathematical ability, capacity of political activism, teachingcapacity

According to Rycher (2004), working competence is able to meet therequirements or conduct a successful job This capacity includes cognitive and non-cognitive aspects Foreman-Peck and Winch (2004) stated that the ability to work is amixture of action, knowledge, values and purpose to change the context In short,competence can be understood as the combination of personal attributes defined in theoperation in particular job, it represents competence of the individual to fit the job ornot

In general, working competence is knowledge, skills and abilities that bank tellers should have to satisfy work requirements in order to perform the job successfully In different profession, there will be different specific requirements for job performance Also according to Mac Van Trang (2000), the ability to work is constituted by the following three components: Professional knowledge, Practical skills, and Working attitudes

Working competence is not born-with characteristic but it is formed anddeveloped through learning activities, practical working and professional activities Wecan affirm that learning and working are the only development path for improvingcompetence.

1.1.2 Roles of working capacity assessment

1.1.2.1 Roles of working capacity assessment to employees.

- For staff, assessments of capacity means organization acknowledge their workresults In addition, employees will understand their competence in particular positionand try to self-improve work capacity and make change to suit the requirements oforganization

- Through work capability assessment, employee will receive help fromorganizations and managers to make adjustments consistent with their position andgoals of organization The understanding between managers and employees will createbetter conditions for job performance Managers will have the timely and accuratedecisions so employees can make change promptly to adjust working methods

- Work capacity assessment will encourage, motivate employees If workcapacity assessment is conducted properly and fairly, it will motivate employees toimprove ethics and conduct assigned task in a positive direction On the other hand, if

an organization does not make process work capacity assessment or conducted withbiased subjective assessment or only consider the seniority, , the employee may beentitled to same treatment regardless of their job performance That process woulddistort the results of work performance valuation leading to reduce motivation to work,creating moral hazard

1.1.2.2 Roles of working capacity assessment to an organization.

Assessment of work competence is an important activity of human resourcemanagement to help organizations to form the basis for planning, recruitment, training

and development of human resource To properly assess job performance ofemployees, managers need to understand purpose of assessment to organizations:

- Improving job performance and providing feedback to staff about the extent ofwork process to measures to improve and improve work performance

- Assessment of working capacity helps to organize the data indicating likelihood

of employee promotion Through this assessment, organization can have a basis forhuman resources planning

- Helping employees to adjust and fix errors in work process, and forming a basisfor employee’s encouragement

- Assessing working capacity to predict future demand of human resources, andmake training plans and plan for development of human resources

- Through capacity assessment conducted by staff, managers can adjust taskassignment to match employees’ capacity and detect potentials in employees to planfor further personal development

1.1.2.3 Roles of working capacity assessment to economy.

Human resources are considered the most important factor in a business or anorganization Meanwhile, business entity is an important part of economy and the maincomponents generating GDP Therefore, human resource significantly contributes tothe economy HR management contributes to solving social aspects of economic orother labor issues Providing workers with suitable work and fulfilled life is a problem

of the whole society Work capability assessment for the economy is defined asfollows:

- Contribute to improving quality of human resources in socio-economicdevelopment process Human resources, labor resources are a decisive factor forexploitation, utilization, protection and other renewable resources Between humanresources, capital, natural resources, infrastructure engineering, science and technology

there is a cause - effect relationship, but in which human resources are consideredendogenous competence dominating socio-economic development of each country.

- Contribute to development of high quality human resources; this is one of thedeterminants of successful economy It transforms the production process from usingmanual labor to using highly trained labor with skills technology and advancedmethods to create a society of high productivity

- Compared with other resources, human resources which has characteristics ofintellectual factors and has prominent advantages of being able to foster and train issuperior than other resources which are only limited and promoted only utilities whencombined with human resources effectively So people as human resources, as thecreators, are central elements in manufacture process, are the center of internal forces,main resources deciding economic – social development process

- Facilitate lag gap, promote social and economic growth with sustainability;facilitating international economic integration

1.1.3 Working capacity assessment model

1.1.3.1 ASK model introduction

Human Resources is a special resource which could not be borrowed, it has acrucial role to the success or failure of an organization and commercial banks inparticular But in fact, many organizations and banks are still struggling with theproblem of human resource development and employee competency assessment Todevelop human resources, assessment of individual potential is the foremostimportance To have effective competency assessment, it required standards ofcompetence and specific measure

There are some models of work capacity assessment as KSAOs model, ASKmodel

(i) KSAOs Model (or KSAs) to assess capacity of individuals in eachorganization According to Ngo Quang Thuat (2013), KSAOs include some factors:

knowledge, skills, abilities and other features that candidates/employees must have inorder to perform successfully a task or a job:

 Knowledge: includes the knowledge necessary to perform one or moretasks Knowledge can be expressed in two forms: qualification andtraining or, more specifically a list of detailed knowledge required

 • Skills: to be understood as a list of the skills necessary to do the jobsuch as: hard skills, soft skills, management skills, leadership skills Skills are formed when learning, training and then mastering (practice) acertain kind of job: show maturity level in performing one or moreoperations

 Abilities: inherent ability of a person to perform work: eg singing skills,ability to carry heavy loads,

Other factors: including personal qualities, personality, hobbies

(ii) According to ASK model, competency standards include Knowledge; Skills;Attitude which are required to undertake a specific job position And the number of jobpositions in organization must be equal to the number of capacity standards Example:Capacity standard of tellers in BIDV Hai Phong branch

And to understand staff weakness and strength, the current status of humanresource at an organization, it calls for competency standards; and what arecompetency standards and how to build competency standard? Benjamin Bloom (1956)proposed the model ASK to address this issue and Shubha Rajan (2012) has continued

to develop measures

Figure 1.1 ASK Model for capacity assessment

Source: Benjamin Bloom (1956) và Shubha Rajan (2012)

According to model of Shubha and Rajan (2012), the knowledge only accountsfor 15% of success, skills and attitudes account for 85% To work well, a person mayneed to have all three factors

Due to the nature of popularity of ASK in research in working capacity, andespecially in working capacity of personnel in services industry which is the focus ofthis thesis, the author will ASK model to apply in the next part of thesis

1.1.3.2 Elements of ASK model

ASK model is common in human resources management to training anddeveloping individual capacities The model provides professional standards for jobpositions in an organization within three main criteria:

 Attitude,

Knowledge

SkillAttitude

Competence

Competence

 Skills

 Knowledge

- Quality or Attitude often includes factors of Receiving, responding tophenomena, valuing priority values The behavioral qualities and attitude of individualswith jobs, motivation and qualities required to undertake further work (Harrow, 1972).These qualities are also determined in accordance with job requirement

- Skills (skill) is understood as the ability to perform specific tasks, turningknowledge into action Skills can be classified into several types, depending on thepurpose of classification Generally it can be divided into three categories: life skills,expertise and working skills In expertise, there are kinds of skills, such as hard skills,soft skills and mixed skill According to Dave (1975) skills are divided into levels suchas: imitation (observations and behavioral stereotypes), applications (perform certainactions by following instructions), adjust (with each situation), creative application(become natural reflex) (Dave, 1975) Hard skills are technical skills, professionalskills, helping employees perform specific work under certain criteria Soft skillsinclude skills such as communication skills, behavioral skills, listening skills,negotiation skills Soft skills depends heavily on audience of interaction andtherefore it is difficult to build a common standard Among two skills, soft skills play alarger role in success of a person According to Daniel Goleman, hard skills accountfor only 15%, whereas 85% of the soft skills for success of every human being Tosucceed, employees need to know how to combine both types of skills

- Knowledge is understood as the capacity for data collection, capacity tounderstand problems (comprehension), capacity to apply (application), capacity toanalyses (analysis), synthesis capacity (synthesis), capacity of assessment (evaluation).These are basic competencies that an individual needs to converge upon receiving ajob More complex work requires higher level of capacity These capabilities will bespecified according to the characteristics of each organization

1.2 Banking institutions and bank teller

1.2.1 Commercial bank definition

Credit Institutions Law by National Assembly X on December 12 1997 defined:commercial banks were a form of credit institutions performing all banking activitiesand operating other related businesses This law defines: Credit institutions areestablished under the provisions of this law and other provisions of law relatingmonetary operations, banking services including receiving deposit, lending andproviding payment services State Bank Law stated: Banking activities are monetaryoperations and banking services with regular activities of accepting deposits, lendingand providing payment services

French bank Act (1941): Commercial Bank is the enterprise or institutionsreceive regular public deposits, which are used for lending and financing activity andproviding payment service

Therefore commercial banks are intermediary financial institutions which aremost important factor to market economy This institutional system will help idlecapital funds be mobilized, create enormous credit resources for lending in economicdevelopment The nature of commercial banks is a special economic and businessactivities in the field of monetary credit and banking services

1.2.2 Bank teller definition

Bank tellers are bank employees working at the counter transactions inbranches, transaction offices and banking transaction points They daily exposure toclient requests, transaction processing and recording all transactions related to cashtransactions, checks, savings, transfer, purchase foreign exchange, account opening which incurred at the counter The specific job of a bank teller as follows:

 Consulting, answering customer questions about products and services ofthe bank;

 Implementing of the customer care and cross-selling service at bank’scounter;

 Receiving and processing customer transactions such as transactingaccounts, savings transactions, transfers, currency exchange according tothe bank’s regulations;

 Performing collecting revenue and expenditure in cash from customerswithin transaction limit;

 Reconciling cash at the end of trading day;

 Performing daily report after the close of trading hours;

 Filing documents of daily transactions in accordance with regulations ofthe bank, storing and managing customer records in accordance withregulations of the bank

 Performing other duties as assigned by management

Each teller has the role of a sales introducing cross – sales product, creating theimage, brand name of the bank and performing excellent service quality, helping thebank increasing profit Each bank will have different requirements, but a bank tellermust have three basic requirements: (1) Banking knowledge (2) and soft skills (3)attitude and good – looking appearance

Banking background:

 Mastering knowledge of bank products and services;

 Handling the situation, the actual operating activity occurring at bank

counter such as: collecting cash revenue, transferring money, exchangemoney, travelers checks, cards, e-banking,

 Practicing work on Core-banking system

Soft skills

 Communication skills and sales skills through telephone (tele sales);

 Consulting and closing sales / cross-selling of products and services;

 Preparation Skills

Attitude and good looking appearance

 There are professional ethics, respect for organizational regulations, rulesand labor discipline;

 Professional working style, teamwork and independent working skils

 Good looking appearance

Figure 1.2 The ladder of career growth of bank tellers

Source: BIDV

1.3 Working capacity assessment of bank teller

1.3.1 Factors contributing to working capacity of bank teller

1.3.1.1 Attitude.

In the banking sector, tellers often have to contact with customers, thereforeworking style and attitude of tellers have great influence to the image of the bank

Head of tellers Director/Deputy director Branch director

Head of teams Manager/Deputy managers Head of CS at HO

Tellers

According to Philip Kotler (2001), "The attitude is conscious evaluation,feelings, consistent behavior of a certain individual toward a subject, an idea, an issuethat would bring the advantages or disadvantages to an object or a particular matter "Attitude has 3 basic components:

Figure 1.3: Three components of attitude

Source: Philip Kotler (2001)

- Awareness is the level of understanding and knowledge to object Bank tellersmay be different in perceptions of the same object by the three processes: selectiveattention, distortions and depictions

- Emotions are feelings, good or bad, friendly or aversion

- Behavioral trend speaks expected behavior or perceived direction towardobject

The attitude is reflected in positive spirit, motivated by work The tellers need tohave confidence in communication, as well as in their own ability However it shouldnot show overconfidence leading to arrogance, refusal to acquire knowledge andexperience This is important in individual development in future career For banktellers attitude is reflected in the following:

The attitude is reflected in positive spirit, motivated by work The tellers need tohave confidence in communication, as well as in their own ability However it should

Emotions

Behavioral trendAware

ness

not show overconfidence leading to arrogance, refusal to acquire knowledge andexperience This is important in individual development in future career

 Confidence in communication and confidence in personal ability

 Listening to comments of customers

 Instruct customers with dedicated, thoughtful and warm attitude, together withpatience and courtesy

 Professional attitude is shown in the love for the job Only when working withpassion and do the best for job, can tellers fulfill the assigned tasks and theresponsibility for the work

 Attitude to banking institutions: Tellers should appreciate the organization theyare working for The staff who is proud of their work place will be more likely

to commit in a long time compared to those who are dissatisfied and constantlylooking for a new working place Banking organizations should learn from themajor Japanese company Japanese companies are good at retaining talent andmaking employees love and commit long-term to their organization

 Attitude to customers: Customers are the ones who bring revenue to the bank.Tellers need to identify key customers who generate their income, salaries andbonuses A bank can not continue to grow without customers or customer’sactivities to generate enough revenue to offset costs Therefore, traders need toknow cherish every customer, not discriminate among customers, serve withaffable attitude, enthusiasm and friendly advice to help customers with best theireffort

For a bank, tellers’ attitude toward customers is particularly important Aprofessional teller must love their jobs and working organization and always respectcustomers to create a good impression for customer

1.3.1.2 Skill.

Bank tellers need to prepare themselves some soft skills as follows:

(i) Communication skills

Communication skill is one of extremely important soft skills to bank tellers.Communication is understood as a process of exchanging information between thespeaker and listener to achieve a certain purpose Communication skill is ability toapply scientific knowledge and experience in communication process for achieving thepurpose in each specific activity

The tellers with good communication skills are able to apply knowledge andexperience through language and non-verbal means to guide customers to performtransactions, provide products and services that exceed customer needs, bringingbenefits to bank The daily work of tellers is dealing directly with customers, thereforethey have to pay attention to attitude, behavior, behavior, manner when speaking tocustomers When communicating with customers, tellers should use universallyunderstandable language, minimize specialized, foreign language, express in normalbut expressive tone Besides verbal language, tellers should know how to use othermeans of nonverbal language such as behaviors, gestures, body language to expressthoughts, message to customers Through communication with the customer, teller’simage reflects image of the bank A dissatisfied customer will negatively affect thebank's reputation while good impression will be acknowledged and spread if tellermakes customer satisfied

(ii) Listening skills

Listening skills are part of communication skills, and are important skill for allbank tellers Everybody needs listening skills but how to listen effectively is difficult tomany people and this skill is a necessary requirement in banking sector Listen to shareand understand customers, so that customers not only consider tellers as a serviceprovider, but also a friend Requirements for this skill are that tellers must listen

attentively, respond immediately and enthusiastically to customer inquiries, makecustomers satisfied and happy When tellers really listen to customers, a sense ofcomfort, convenience will appear inside each customer, making them feel respected bytellers who appreciate and care for them

(iii) Ability to work creatively: bank tellers could not be taught to be creative at

work If there is, it is only a guide to bank tellers how to work most effectively Socreative skills on the job are learned by bank tellers themselves A bank teller could notimprove their work performance if doing the same task everyday Bank teller shouldtry to find various methods to accomplish job faster, more innovatively and achievebetter results

(iv) Consulting skills, persuasion skills: to a bank teller, this is also sales skills of

banking products to customer To sell product successfully, tellers must first clearlyunderstand the products offered and understand the customer's needs to advisecustomers to use the most suitable product The introduction of suggested productsshould be customized in order to make it easy for customers to understand Moreover,tellers should exchange questions, use suitable voice in their talk to make their talkmore interesting A good teller is the one with great communication skills to convincecustomers by their language, body language, attitudes Successful teller is the one whomakes customers feel that bank’s product create the best benefit for their own uses andbusiness compared to other commercial banks The bank tellers are required to catchcustomer’s attitude quickly, be able to understand customer needs, customize theircommunication toward different types of clients

(v) Flexible response: In daily communication, tellers will encounter many

different types of customers who is either polite or impolite, quick tempered, rude,grumpy It is important for tellers to understand customer sentiment, always maintainthe principles of respecting customers in any circumstance People with quick response

was likely to adjust mentally and physically to adapt to any situation or environment,while keeping self- control and calm Flexibility is also reflected in ability to observe,learn, assess quickly a situation, react rationally and act less emotionally This requirestellers a wise reaction in any specific situations to guide customers with enthusiasm.Bank tellers should make customer satisfied even if the transaction fails and customerdoes not buy the products and services That depends on skillful conduct of eachindividual in an organization.

 Knowledge of communication , sales and marketing: They are the basicknowledge and critical skills of bank tellers

 Good understanding of information technology, IT security in bankingoperation: this is an important condition in the context in which banksincreasingly modernized and brought many applications of informationtechnology Speed of customer service was also interested by customers.Banks have increasingly modernized and brought many informationtechnology applications in banking services, tellers need to update

themselves with new knowledge to use modern technology, new software

to serve customer service quickly and accurately

1.3.2 Significance of implementation of working capacity assessment model.

1.3.2.1 Significance to banking institutions

Significance to banking institutions

The assessment of tellers’ work capacity has great significance to operation ofbanking organizations Through model of working capacity, leaders can identifyemployees who work effectively, employees are not likely Especially for tellers,effective communication skills and attitude to work is extremely important to helpthem complete their work and convey the message to the customer's bank The leaderswould have more objective perspective on their individual capacities They would haveplan of arrangement, reorganization, and redeployment of personnel to match thecapabilities of each person

- For weak personnel, banks can organize more training so they are receptive,learning more knowledge, serve better job

- For too weak personnel who are unable to meet the minimum requirements ofthe bank or has uncooperative attitude or cheats in work, the organization will think ofalternatives to layoffs

This is nothing strange for market economy, when the efficiency factor is setpriority in business organizations, particularly with fierce competition Bank tocompete today will not let the weak personnel who serve with bureaucratic attitude tostay in their system to weaken the brand name of the banking institution

The application of model to evaluate the capacity of teller team will help bankinginstitutions find the best factors for improving the quality of services and sustainabledevelopment in the future

1.3.3.2 Significance to bank teller

The application of working capacity assessment is helpful not only for bankexecutives but also useful for tellers Instead of working passively, tellers can beactively aware of their ability to work in the organization Under reviewing period,staff may know the strengths and weaknesses for improvement to become aprofessional teller Tellers will have the opportunity to discuss this with the leaders,expresse thoughts and aspirations and difficulties and problems

Working capacity model not only allows tellers to recognize strengths andweaknesses, to improve knowledge, skills required but also help them shorten the gapwith the leader and have the opportunity to share their wishes and needs

1.3.3.3 Significance to banking customers

In the time of fierce competition, service quality and customer service attitude ofstaff is a factor helping customers stick with the organization Perfect service qualityand service attitude will induce customer’s long-term commitment or accepttransactions with bank Along with the development of the economy, the number ofbanks also increased significantly in recent years People have much more choice in theuse of financial services As the product differentiation of the credit institution is notlarge, and interest rate charged between banks is almost equal, customers absolutelylike to use banking services with better service quality and caring staff

Which bank has professional staff, better customer service; certainly it wouldhave more competitive advantages Customers entering the bank feel a professionalenvironment which is safe and cares about customer’s wishes, needs Each worker,gains customer’s trust, l feel more satisfied with the services they are using

Clearly, when conducting transaction with a teller with affable and enthusiasticattitude, customers will find pleasant, far more comfortable than dealing with anemployee of lethargy, irritability When customers are satisfied, the success rate oftransactions also increased Now customers who not only acts as a client, but they may

be the PR, who introduces and promotes banking products to those customersefficiently.

1.4 Design assessment with opinions of bank manager, bank teller and customer

To assess overall job performance of tellers, the author used multidimensional(360 degrees) assessment under ASK approach

 Assessment with feedback from bank manager

 Assessment with feedback from bank tellers

 Assessment with feedback from customers

Survey method was carried out as follows:

(i)Survey participants: 3 groups

- Group 1: A total of 10 managers who is head or deputy of different units inBIDV Hai Phong This is the team of managers who are well aware of capabilities ofeach employee working in the branch

- Group 2: 45 bank tellers

- Group 3: 100 regular individual and corporate clients 100 customers wereselected randomly in database of loyal customers; They will give fairly accurateassessments

(ii) Method:2 categories

- 10 managers: Direct interviews with questionnaires for general assessment ofjob performance of bank tellers

- 45 tellers and 100 customers: questionnaires were sent to tellers andcustomers to respond under the guidance in questionnaire;

(iii) Design of questionnaires: based on ASK model with following content:

1 Section 1: Customer’s info

2 Section 2 : Assessment under ASK model’s requirements

3 Section 3: Feedback

(iv) Assessment scale - 5 level of capacity assessment according to ASK model::

: Totally disagree 2: Partly disagree 3: No idea

4: Agree 5: Totally agree (v) Summary of findings in proportion and average value of questions to analyze and compare groups together

- Second, author presented dimension of commercial banking system and bank tellers through concept of bank, tellers and the requirements of tellers at work

- Third, the part of assessment of teller’s work capacity by application of ASK model into designed survey of groups including customer, tellers and bank managers

These are background for next study in chapter 2 of the thesis.

CHAPTER II CURRENT STATUS OF WORKING COMPETENCE OF

BANK TELLERS AT BIDV – HAI PHONG BRANCH

2.1 Introduction of BIDV – Hai Phong branch.

2.1.1 History of establishment & development

Bank for Investment and Development of Vietnam - Hai Phong Branch (BIDVHai Phong) was established on 27/05/1957, its first name was Vietnam Building bankBank - Hai Phong Branch, their main responsibilities were mainly allocated capital forconstruction and loans for working capital of construction and installation projects

The first years of establishment, the branch did not deal with raising capital;their main capital came from government budget for lending in construction andinstallation Since 1995, BIDV started operating in model of commercial banks; theyterminated their activities of allocating government budget for construction, theiroperating funds had to borrow fromeconomic organizations, residents and foreigners.The branch started banking activities of credit lending, non-credit activities,consignment and other services.

Implementation of Decision No 2124 / QD-TTg dated 30/11/2011 by PrimeMinister approving the equitation plan of BIDV, in 05/2012 BIDV officially becameJoint Stock Commercial Bank for Investment and Development of Vietnam

For over 57 years of establishment and operation, Hai Phong branch had lent tothousands of projects with total amount of trillions vnd, it was considered as playing akey role in process of industrialization - modernization of Hai Phong

BIDV Hai Phong was awarded the independent Medal of third class; Labor Medal of

1st, second and third class by Government In 2003, the government awarded the title ofexcellent unit In 2004, the Governor of State Bank gave flags title of excellent unit inyear 2004 Many years of being the flagship unit of the banking system in Hai Phong,BIDV Hai Phong has become of the best branch in BIDV network

2.1.2 Organization model

BIDV Hai Phong has built a simple structure but still ensuring flexibility andsteady speed in handling workload Currently, the organization model of BIDV HaiPhong includes: 1 Director, 2 Deputy Directors The branch is divided into 5 divisionswith 12 specializing departments, 06 transaction offices and 01 Savings Fund Totalstaff of the branch at the time of 31/07/2015 is 170

-25-Director

Deputy director- wholesale division Deputy director- retail sales division

Figure 2.1: Organizational Chart BIDV Hai Phong

Source: Internal documentsofBIDVHai Phong Branch

2.1.3 Business results of BIDV - Hai Phong branch in period 2012 – 2014.

The operating results of BIDV Hai Phong in period 2012 - 2014 was brieflypresented as below:

Table 2.1: The business results of BIDV Haiphong in period 2012-2014

Individual customer Dept

Individual customer service Dpt

Accounting- Finance Dept

Corporate

customer Dept

2

Integrated planning Department

Individual customer management Unit

Nguyen Duc Canh Fund Accountant

Individual

customer

management

Card service dept Treasury Dept

Office management Dept Credit management dept

HR dept

3 Deposit from residential population 2,339.7 0 2,467.0 0 3,079.0 0

Source: Financial Report, 2012 – 2014 of BIDV Haiphong Branch

Table 2.1 reveals:

In the last three years, despite the intense capital raising market BIDV Hai Phongstill be able to maintain the stable capital, moreover, the mobilization of capital in 2014has been recovered after the slackening in 2013:

- Despite the decrease in funds from economic organizations, from 1,914.30billions Dong in 2012 to 1,672 billions Dong in 2014, the funds mobilized frompopulation, which is considered as most stable with low-cost, has risen from 2,339.70billions in 2012 to 3,079 billions in 2014

- The structure of capital has positive changes over time, long-term capital with

12 months above duration increases from 1,191.12 billions in 2012 to 1,472.81 billions

in 2014

Capital using results (credit): This is the main function, the basis for developingother services of the Branch.In the last three years, credit activities of the branch facedmany difficulties due to the economic crisis in the country, many large clients of thebranch are caught in difficult situations, can not pay the debts for the branch, the debt

is then converted into bad debts or being forced to be settled down On the other hand,

It is getting more and more difficult in recruiting new customers, the debts can not beoffset.Therefore, the total loans of branches dropped rapidly, from 5.076 billion to4.849 billion However, the array of personal customer, households lending has madegood progress, constantly expands, the value of loans increases from 256 billion in

2012 up to 517 billion in 2014, contributes to the overall result of credit activities ofthe branch

BIDV Hai Phong deploys most types of services: payment, card, cash, moneytransfer, guarantees, electronic banking etc and has gained good results, contributes tothe efficiency of the Branch Service activites in 2013 increased by 7 billion comparedwith 2012but declined in 2014 due to economic difficulties, competition among banks

is getting more and more fierce, has large impact on the performance of bankingservices

Period 2012 - 2014 was a difficult period for the economy, not only in Vietnambut also for the global economy Therefore, the profit of BIDV Hai Phong alsodecreased during this period.

2.2 Assessment of working capacity of bank teller at BIDV - Hai Phong Branch 2.2.1.General assessment of working capacity of bank teller at BIDV - Hai Phong Branch

- BIDV Hai Phong has a team of 45 tellers, working in its transaction offices asfollows:

Table 2.2 Number of tellers at main office and transaction offices of BIDV Hai

Phong

3 Transaction office for individual customers 10

Source: Internal documentsofBIDVHai Phong Branch

Table 2.3 Number of tellers by genders:

- Due to nature of the job as bank tellers, most employees are women,accounting for 93.33%

- Male only accounts for 6.67% of total

This kind of job is often more suitable for the female because they often havegood attitude and soft skills in communication, customer will also be happier whenmaking deals with pretty, inspriring Tellers However, in the scale of knowledge,female often can not be able to promote the creativity as well as capturing newtechnologies as fast as male tellers do Compared to female, male tellers also havecertain advantages in studying, receiving new knowledge, application of modernscience and technology in They have better health and stamina than women, especiallymay create very good impression for the customer is older women