An analysis of organizational culture and employee’s job satisfaction at JointStock Commercial Bank For Foreign Trade of Vietnam – Vietcombank, Thanh Cong Branch

i TABLE OF CONTENT TABLE OF CONTENT i LIST OF TABLES AND FIGURES .v LIST OF ABBREVIATIONS vi ACKNOWLEDGEMENT vii ABSTRACT viii CHAPTER 1: INTRODUCTION 1.1 Rationale of the study 1.2 Aims of the study 1.3 Scope of the study .2 1.4 Structure of the study CHAPTER 2: LITERATURE REVIEW .4 2.1 Culture and organizational culture 2.1.1 Definition of culture 2.1.2 Organizational culture 2.1.2.1 Definition 2.1.2.2 Types of organizational culture 2.1.2.3 Levels of organizational culture .9 2.1.2.4 The impact of strong organizational culture on the development of a corporation/organization 13 2.2 Job satisfaction .14 2.2.1 Definition 14 2.2.2 Job satisfaction theory 15 2.2.2.1 Hierarchy of Needs 15 2.1.2.2 The Two-Factor Theory 17 2.2.2.2 Job Characteristic Model 18 2.3 Relationship between organizational culture and employee’s job satisfaction 19 2.3.1 Positive organizational culture and employee’s job satisfaction 20 2.3.2 Negative organizational culture and employee’s job satisfaction .22 CHAPTER 3: DATA AND METHODOLGY 24 3.1 Data 24 3.1.1 Data sources .24 3.1.2 Data collection and sampling method 25 3.2 Research methodology 26 CHAPTER 4: EMPRICAL FINDINGS 28 ii 4.1 An overview of Vietcombank 28 4.1.1 General Information .28 4.1.2 Establishment and Development 28 4.1.3 Organizational structure 29 4.2 An overview of Vietcombank, Thanh Cong Branch 31 4.2.1 General Information .31 4.2.2 Organizational structure 31 4.2.3 Business activity .32 4.2.3.1 Capital raising activity 32 4.2.3.2 Credit activity 33 4.2.3.3 Foreign currency trade 33 4.2.3.4 Import-Export payment activity .33 4.2.3.5 Card and banking card service .33 4.2.3.6 Customer development activity 34 4.2.3.7 Financial result .34 4.3 Organizational culture at Vietcombank, Thanh Cong Branch 34 4.3.1 Types of organizational culture 35 4.3.2 Artifact level and its manifestations .36 4.3.2.1 Office’s architecture and decoration .36 4.3.2.2 Brand name, logo and slogan 37 4.3.2.3 Language and style 38 4.3.2.4 Leadership style .39 4.3.2.5 Behavior within branch 40 4.3.2.6 Behavior towards customers 41 4.3.3 Espoused beliefs and values 42 4.3.3.1 Value 42 4.3.3.2 Attitude 43 4.3.3.3 Business philosophy .43 4.3.4 The basic underlying assumptions 44 4.3.4.1 Assumptions about External Adaptation Issue .44 4.3.4.2 Assumptions about Managing Internal Integration 44 4.3.4.3 Assumptions about Reality and Truth 45 4.3.4.4 Assumptions about the nature of time and space 45 4.3.4.5 Assumptions about human nature, activity and relationship 45 4.3.5 Evaluation of organizational culture at Vietcombank, Thanh Cong branch 45 4.3.5.1 Strength 46 4.3.5.2 Weakness 48 4.4 Employee’s job satisfaction at Vietcombank, Thanh Cong branch 49 iii 4.4.1 Survey of employees’ job satisfaction at Vietcombank, Thanh Cong Branch 50 4.4.2 An analysis of job satisfaction at Vietcombank, Thanh Cong Branch 50 4.4.3 Evaluation of employee’s job satisfaction at Vietcombank, Thanh Cong branch 64 4.4.3.1 Strength 64 4.4.3.2 Weakness 67 4.5 Relationship between organizational culture and employee’s job satisfaction at Vietcombank, Thanh Cong branch 68 4.5.1 Positive employee’s job satisfaction 69 4.5.2 Negative employee’s job satisfaction 70 CHAPTER 5: CONCLUSION AND RECOMMENDATIONS 73 5.1 Missions and Goals of Vietcombank, Thanh Cong branch 73 5.2 Recommendations for developing organizational culture and employee’s job satisfaction at Vietcombank, Thanh Cong branch .74 5.2.1 Developing the brand name and image of Vietcombank to the public 74 5.2.2 Improving the business ethics among employees and staffs 75 5.2.3 Changing the physical working environment 76 5.2.4 Building the specific value system 78 5.2.5 Changing the leadership style to adapt to the environment of all the staffs and employees at Vietcombank, Thanh Cong branch .79 5.2.6 Addressing conflict quickly .81 5.2.7 Giving feedback to employees properly 82 5.2.8 Developing equal evaluation system .83 5.2.9 Encouraging new ideas, creativity and innovation in the branch .84 5.2.10 Encouraging the collaboration between the members of the branch 85 5.2.11 Improving employee’s job satisfaction with pay 85 5.2.12 Enhancing employee’s job satisfaction with opportunity for training and promotion 87 5.3 A brief summary .88 CONCLUSION .89 REFERENCES .90 APPENDIX 95 APPENDIX .100 iv v LIST OF TABLES AND FIGURES Figure 2.1: Four types of organizational culture Figure 2.2: Maslow’s Hierarchy of Needs 16 Figure 4.1: Organizational structure at Vietcombank .30 Figure 4.2: Organizational structure at Vietcombank, Thanh Cong branch 31 Figure 4.3: Logo Vietcombank 38 Figure 4.4: Regression Standardized Residual 63 Table 2.1: Frederick Herzberg's Two-Factor Theory 18 Table 4.1: Demographic classification according to groups at Vietcombank, Thanh Cong branch 49 Table 4.2: Descriptive Statistics for factors affecting employee’s job satisfaction at Vietcombank, Thanh Cong branch 52 Table 4.3:Cronbach’s Alpha coefficients and the number of observation variables .54 Table 4.4: KMO and Bartlett's Test 55 Table 4.5: Total variance explained 57 Table 4.6: Correlation matrix 59 Table 4.7: Linear regression model 61 Table 4.8: R square 62 Table 4.9: ANOVA 62 vi vii LIST OF ABBREVIATIONS ATM Payment acceptance point – Automated Teller Machine BOD Board of Director CEO Chief Executive Officer JCM Job Characteristics Model JDI Job Descriptive Index HOSE Ho Chi Minh Stock Exchange MSQ Minnesota Satisfaction Questionnaire UNESCO United Nations Educational, Scientific and Cultural Organization USD United States Dollar Vietcombank Joint Stock Commercial Bank For Foreign Vietcombank, Trade of Vietnam Joint Stock Commercial Bank For Foreign Thanh Cong branch Trade of Vietnam, Thanh Cong Branch VND Vietnamdong viii ACKNOWLEDGEMENT This graduation thesis is the final result of a long process of research and writing During the time of conducting this thesis, I know that the successful completion of this dissertation would be impossible without the support and corporation of many people to whom I will be forever grateful First and foremost, special mentions and grateful thanks must go to Mrs Le Thu Hang, my supervisor at Hanoi Foreign Trade University I’m indebted to her inspiration and intellectual support throughout the course of writing this graduation paper I could not have been able to complete this thesis without her positive suggestions and guidance Her continual encouragement, careful reading, critical comments and patient guidance made my work more enjoyable and easier Secondly, I want to thank all the managers and staffs of Vietcombank, Thanh Cong Branch, for their cooperation that helped and inspired me in writing and for their willing participation in the study I greatly appreciate their generosity with their time and efforts in filling in the questionnaire Thirdly, I would also like to give my heartfelt thanks to the authors who provided me with valuable books for my thesis Finally, my appreciation goes to my family, my friends and my classmates Their support and constant encouragement gave me a great deal of strength and determination that help me during the stressful time of writing this paper My deepest gratitude is to the readers also, whose feedback will help much in improving the thesis In the future, I hope that with the obtained knowledge, I could apply my academic knowledge that I have learned at the university to practical problems in reality Hanoi, May 2015 Nguyen Thi Thuy Dung ix An analysis of organizational culture and employee’s job satisfaction at Joint Stock Commercial Bank For Foreign Trade of Vietnam – Vietcombank, Thanh Cong Branch ABSTRACT The graduation thesis represents the analysis and results of research on impact of organizational culture and employee’s job satisfaction at one of the most outstanding corporation in terms of banking sector in Vietnam – Joint Stock Commercial Bank For Foreign Trade of Vietnam (Vietcombank) In this thesis, I use the case study of Vietcombank, Thanh Cong Branch because this branch may be given more accurate detailed information The first objective of the thesis is to understand the impacts of organizational culture on the development of Vietcombank, Thanh Cong branch in particular which also shows the importance of organizational culture for any company in general Benefits of adopting organizational culture will create a unique style and attitude for each company, creating centripetal force for the entire company, helps companies boost innovation and invention, and attract more customers In addition, the second objective of this thesis is to find out the attitudes of employees towards their jobs while working at any organization through measuring their job satisfaction It is also critical which affect to the degree how good the organizational culture that organization has CHAPTER 1: INTRODUCTION 1.1 Rationale of the study Nowadays, with the rapid development of society, the competition between companies is more and more severe Each organization has to set up the unique strategy to help their corporation survive well in the business environment One of the most outstanding factors which help companies to create the critical position in the customer’s eyes is organizational culture Recently, this word has not been a new expression with corporations and public Many companies have not been afraid of investing in many resources to form and develop their own culture because they are aware about the fact that “Making a difference” is a philosophy in business to improve the image of an organization with society, community and clients In general, organizational culture can be understood as all the culture values of an organization which are shaped, developed, recognized and popularized from years to years or formed during its development period It has great influence on all activities of a company as well as its workers Banking industry is a successful industry in interacting with customers and its success is based on the belief of the clients Therefore, creating an unique organizational culture which can make good impression on customers is of greater importance for banks in general and for commercial banks in particular Joint Stock Commercial Bank For Foreign Trade Of Vietnam – Vietcombank is one of the top leading banks in Vietnam Developing strong organizational culture is one of the most strategy that the leaders and officers in that bank strive for Besides, a good business environment can become an effective tool to attract employees and especially help the workers be satisfied with their jobs Hence, the organizations can keep the current employees loyal to and dedicated to their corporation In return, when the employees are satisfied with their working environment and job itself, they will devote positively to help their organization go further steps in the future As a result, the high rate of job satisfaction will become the motivation for developing the corporate culture of any organization 85 huge However, the organizational structure does not allow employees promoted into many titles Therefore, to improve this factor, the branch needs to create an environment of healthy competition between the staffs together in the examination for leadership positions In addition to facilitating fair competition in the contest for leadership positions, the bank should also consider establishing hierarchy system between experts without leadership positions Some notes when formulating policies for the training and promotion at the branch are: Firstly, the policy of staff development ensures fairness in opportunities for personal development among the employees There is no distinction between different parts, or various labor groups The policy should be announced publicly to all employees Secondly, to improve expertise of the bank employees, the branch should sponsor employees to take short-term courses outside the bank The third is to organize focused and advanced courses for employees to improve job skills, collaboration skills among staffs together and increase professionalism At the same time, it also discovers the ones who can be developed; promote those who have a good performance The fourth is to allow staffs to participate in the promotion, leadership assessment and self vote for their leadership positions in the units of the organization When employees participate in the promotion, as well as leadership assessment and be a candidate for the leadership position, they will feel like being treated fairly and have the same opportunities as others in the promotion at work In addition to two main solutions for improving the factor Pay, and Opportunities for training and promotion, the bank should also pay attention to maintain the status of the factors Supervision, The work itself, and Coworkers Current satisfaction levels for these factors are good meeting employee expectations However, the related policy may make their overall job satisfaction decrease and increase dissatisfaction of workers 5.3 A brief summary This research focuses deeply on the organizational culture and employee’s job satisfaction at Vietcombank Thanh Cong branch The organizational culture varies from leadership style of managers, working style of staffs to professional environment Organizational culture consists of many elements such as dress code, 86 leadership style, office decoration or organizational behavior, etc In this research, the concept of corporate culture is limited to Vietcombank, Thanh Cong Branch Each element of organizational culture plays its own important role in a unified system of a bank Dress code brings a more professional working style, while leadership style affects encouragement and motivation to the subordinators who contribute to the development of bank To Vietcombank, Thanh Cong Branch in particular and the banking sector in general, organizational culture is becoming one of the vital strategies to promote banking operations Therefore, building a significant organizational culture is very useful to enhance and improve all business activities The result will be the high level of employee’s job satisfaction and their strong commitment to their company Employee’s job satisfaction is an essential measurement to reflect the organizational culture of any organization 87 CONCLUSION After all the analysis which are conducted in the thesis, I hope that this research will contribute some valuable information to the development of organizational culture and employee’s job satisfaction of Vietcombank, Thanh Cong branch in particular as well as Vietcombank and other corporation in the field of banking sector in general The research scale on this study was limited in a branch, a case study, so the sample size was also limited The result may be varied if a large scale was conduct The general answers and analysis based on the majority of the information collected, but the knowledge of the participants about corporate culture and job satisfaction may differ However, errors on this research were the assumption of low rates And the last one, because this study was done at a time, so its explanation ability in the long-run is limited To improve this, further researches should be done in different times and analyze the research model in the long-run in order to evaluate how the factors impact in the model Due to my limitation of knowledge, skills and experience, mistakes and faults are inevitable I welcome all comments, advices and suggestions that help me improve the quality of the thesis 88 REFERENCES Books and documents English sources: Angelo Kinicki, Mel Fugate (2012) Organizational Behavior: Key Concepts, Skills & Best Practices, 5th edition, Boston: McGraw-Hill/Irwin Bruce M Tharp (2003) Defining “Culture” and “Organizational Culture”: From Anthropology to the Office Castex, G (1990) An analysis and synthesis of current theories of ethnicity and ethnic group processes using the creation of the Hispanic group as a case example Conner, D.R., B.G Fiman, and E.E Clements (1987), “Corporate Culture and Its Impact on Strategic Change in Banking”, Journal of Retail Banking Daniels, J and Radebaugh, L (1998) International business Reading, Mass.: Addison-Wesley Desphande’, R and F.E Webster, Jr (1989) “Organizational Culture and Marketing: Defining the Research Agenda”, Journal of marketing Donnelly, J.H., Gibson, J.L and Ivancevich, J.M (1992) Fundamentals of management, Boston: Irwin Edgard H Schein (2004) Corporate culture and leadership (3th ed.), Jossey Bass Edgard H Schein (1999) The corporate culture survival guide, Jossey Bass 89 Efere, P (2005) Motivation and Job satisfaction, London:Trans – Atlantic College E.J Lumley, M Coetzee, R Tladinyane & N Ferreira Jennifer M George and Gareth R Jones (2008) Understanding and managing organizational behavior, 5th edition, Prentice Hall Fincham, R and Rhodes, P (2005) Principles of organizational behaviour Oxford: Oxford University Press Kinicki, A and Kreitner, R (2003) Organizational behavior Boston: McGrawHill/Irwin Mohammad Jasim Uddin1 , Rumana Huq Luva2 & Saad Md Maroof Hossian (2013) Impact of Organizational Culture on Employee Performance and Productivity: A Case Study of Telecommunication Sector in Bangladesh, Vol 8, No 2, International Journal of Business and Management N.van Saane, J.K.Sluiter, J.H.A.M Verbeek, M H.W Frings-Dresen (2003) Reliability and validity of instruments measuring job satisfaction—a systematic review, Occupational Medicine Philipsburg (2005) “Steering group agrees to adopt UNESCO definition of culture”, Journal of Daily Herald Plunkett, W.A and Attner, R.F (1994) Introduction to management, 5th edition, Belmont, Wadsworth Samovar, L and Porter, R (1991) Communication between cultures Belmont, Calif.: Wadsworth Pub 90 Schein, E.H (1992) Organizational Culture and Leadership: A Dynamic View, 2nd ed., Jossey-Bass, San Francisco, CA Sinem Aydogdu, Baris Asilgil, Mimar Sinan (2005) An Empirical Study of the Relationship Among Job Satisfaction, Organizational Commitment and Turnover Intention, Okan University, Institute of Social Sciences, Istanbul, Turkey Swanberg, J.E (2004) Illuminating gendered organization assumptions An important step in creating a family-friendly organization: a case study Community, Work & Family, 7(1), 3-28 Taylor, Edward (1924) Primitive culture, vols, 7th edition, New York: Brentano's Wayne F Cascio (2006) Managing human resources: Productivity, Quality of work life, Profits, 7th edition, Prentice-Hall Vietnamese sources: Hoàng Trọng & Chu Nguyễn Mộng Ngọc, 2008, Phân tích sữ liệu nghiên cứu với SPSS – tập, Nhà xuất bản Hồng Đức, TP.HCM PGS.TS Dương Thị Liễu, 2008, Bài giảng văn hóa kinh doanh Nhà xuất bản Đại học Kinh tế quốc dân Vietcombank, Chi nhánh Thành Công, 2015, Thông báo kết hoạt động kinh doanh năm 2014 phương hướng hoạt động kinh doanh năm 2015 ngân hang thương mại cổ phần ngoại thương Việt Nam – Chi nhánh Thành Công, số 02.TB.TC.TH 91 Web pages Anon, (2015), Uneasy alliances: cultural uncompatability or culture shock? [online] Available at: http://www.amiltd.com/AllianceCulture.html [Accessed 28 Apr 2015] Anthro.palomar.edu, (2015) Human Culture: What is Culture? [online] Available at: http://anthro.palomar.edu/culture/culture_1.htm [Accessed 14 Apr 2015] Boughton, J.M., 2002 The Bretton Woods proposal: a brief look Political Science Quarterly, [e-journal] 42(6) Available through: Anglia Ruskin University Library website [Accessed 12 Apr 2015] Eurofound.europa.eu, (2015) Measuring job satisfaction in surveys - Comparative analytical report [online] Available at: http://www.eurofound.europa.eu [Accessed 28 Apr 2015] Socialresearchmethods.net, (2015) Sampling [online] Available at: http://www.socialresearchmethods.net/kb/sampling.php/ [Accessed 28 Apr 2015] Vcfo.com, (2015) vcfo Blog: Attracting Top Talent: The Importance of Company Culture - vcfo [online] Available at: https://www.vcfo.com/blog/attracting-top-talent-the-importance-ofcompany-culture [Accessed 28 Apr 2015] Vietcombank.com.vn, (2015) Joint Stock Commercial Bank for Foreign Trade of Vietnam - Vietcombank [online] Available:http://www.vietcombank.com.vn/investors/FinancialReports.aspx? lang=en [Accessed 28 Apr 2015] 92 Vietcombank.com.vn, (2015) Joint Stock Commercial Bank for Foreign Trade of Vietnam - Vietcombank [online] Available at: http://www.vietcombank.com.vn/?lang=en [Accessed 29 Apr 2015] Wilderdom.com, (2015) Qualitative Research I - Lecture Notes - James Neill [online] Available at: http://wilderdom.com/OEcourses/PROFLIT/Class6Qualitative1.htm [Accessed 28 Apr 2015] 93 APPENDIX QUESTIONNAIRE Dear Sir/ Madam, I am doing a study about employee’s job satisfaction at Vietcombank, Thanh Cong branch, as subject of final thesis at Hanoi Foreign Trade University To complete this study I need your support by answering the questions below I would like to say that your answers will be very helpful for my research and they will be processed with synthetic statistics, so your personal information will not appear in the report Please read carefully and circle the box corresponding to the points stated below (1 - Totally disagree, - Disagree, - Neutral, - Agree, - Strongly Agree) Code Content I W1 Agree level The work itself The work represents the position in 5 the society W2 The work is in accordance with your academic and professional qualifications W3 The work facilitates the improvement of your skills and knowledge 94 W4 Your work is interesting and 5 challenging JS_1 Overall, You are satisfied with your work II T1 Opportunity for training and promotion The employees are supported for 5 5 time and money to study to improve the qualification T2 The employee’s promotion chance is various T3 The promotion policies at bank are fair T4 The employees are allowed to take part in evaluation and promotion process JS_2 Overall, you are satisfied with the training and promotion policies at your company III Supervision S1 Leaders are gentle and friendly S2 The leaders have good ability of leading employees at the branch 95 S3 The employees are treated fairly S4 The leaders always appreciate the 5 5 5 5 contributing ideas from employees JS_3 Overall, you are satisfied with the supervisors at your company IV C1 Co-workers Co-workers are friendly and outgoing C2 The collaboration between staffs and colleagues at work is good C3 There are few disagreements between employees at the branch JS_4 Overall, you are satisfied with your co-workers at your company V Pay P1 The basic salary is in accordance with the nature of work P2 The salary is consistent with the level of contribution P3 The allowances are appropriate 96 P4 Reward policies are fair and 5 5 5 satisfactory JS_5 Overall, you are satisfied with the pay and salary you receive VI WC1 Working condition The facilities at work are in good conditions WC2 The working environment is safe, comfortable and clean WC3 The broken machines or devices are repaired and replaced regularly JS_6 Overall, you are satisfied with the working condition in your company 97 APPENDIX Testing Cronbach’s Alpha coefficients  Factor: The work itself Reliability Statistics Cronbach's N of Items Alpha 789 Scale Mean if Item Deleted Item-Total Statistics Scale Variance if Corrected ItemItem Deleted Total Correlation Cronbach's Alpha if Item Deleted W1 W2 W3 W4 10.19 10.07 9.78 10.31  3.770 3.293 3.265 3.376 539 617 613 622 765 727 729 724 Factor: Opportunity for training and promotion Reliability Statistics Cronbach's N of Items Alpha 774 Scale Mean if Item Deleted Item-Total Statistics Scale Variance if Corrected ItemItem Deleted Total Correlation Cronbach's Alpha if Item Deleted T1 8.84 2.905 545 736 98 T2 T3 T4 9.12 9.03 9.05 2.845 2.771 2.471 557 419 866 730 820 577 Reliability Statistics Cronbach's N of Items Alpha 820 Scale Mean if Item-Total Statistics Scale Variance if Corrected Item- Item Deleted Item Deleted Total Correlation Cronbach's Alpha if Item Deleted T1 T2 T4 5.86 6.14 6.07 1.419 1.349 1.258 595 630 810 830 798 615  Factor: Supervision Reliability Statistics Cronbach's N of Items Alpha 716 Scale Mean if Item-Total Statistics Scale Variance if Corrected Item- Item Deleted Item Deleted Total Correlation Cronbach's Alpha if Item Deleted S1 S2 S3 S4 10.90 11.16 11.05 11.12 3.112 3.011 2.576 2.845  Factor: Co-workers Reliability Statistics Cronbach's N of Items Alpha 828 Item-Total Statistics 511 402 637 483 653 716 567 667 99 Scale Mean if Item Deleted Scale Variance if Corrected ItemItem Deleted Total Correlation Cronbach's Alpha if Item Deleted C1 C2 C3 7.17 7.43 7.29 2.075 1.864 1.825 621 676 765 823 773 682  Factor: Pay Reliability Statistics Cronbach's N of Items Alpha 751 Scale Mean if Item Deleted Item-Total Statistics Scale Variance if Corrected ItemItem Deleted Total Correlation Cronbach's Alpha if Item Deleted P1 P2 P3 P4 9.33 9.72 9.53 9.74 2.821 2.659 2.639 2.230 492 620 514 585 722 660 711 676  Factor: Working condition Reliability Statistics Cronbach's N of Items Alpha 663 Scale Mean if Item Deleted Item-Total Statistics Scale Variance if Corrected ItemItem Deleted Total Correlation Cronbach's Alpha if Item Deleted WC1 WC2 WC3 8.07 8.12 7.88 1.469 1.266 1.090 444 432 562 610 627 439 ... Southgate College in London For anthropologists and other behavioral scientists, culture is the full range of learned human behavior patterns The term was first used in this way in the book “Primitive