Solutions to improve labor productivity at BIDV branches in hanoi

ĐẠI HỌC QUỐC GIA HÀ NỘI KHOA QUẢN TRỊ VÀ KINH DOANH - LƯƠNG THANH MINH SOLUTIONS TO IMPROVE LABOR PRODUCTIVITY AT BIDV BRANCHES IN HANOI GIẢI PHÁP NÂNG CAO NĂNG SUẤT LAO ĐỘNG TẠI CÁC CHI NHÁNH BIDV TRÊN ĐỊA BÀN HÀ NỘI LUẬN VĂN THẠC SĨ QUẢN TRỊ KINH DOANH HÀ NỘI - 2019 ĐẠI HỌC QUỐC GIA HÀ NỘI KHOA QUẢN TRỊ VÀ KINH DOANH - LƯƠNG THANH MINH SOLUTIONS TO IMPROVE LABOR PRODUCTIVITY AT BIDV BRANCHES IN HANOI GIẢI PHÁP NÂNG CAO NĂNG SUẤT LAO ĐỘNG TẠI CÁC CHI NHÁNH BIDV TRÊN ĐỊA BÀN HÀ NỘI Chuyên ngành: Quản trị kinh doanh Mã số: 60 34 01 02 LUẬN VĂN THẠC SĨ QUẢN TRỊ KINH DOANH NGƯỜI HƯỚNG DẪN KHOA HỌC: PGS.TS PHẠM ĐỨC HIẾU HÀ NỘI - 2019 DECLARATION The author confirms that the research outcome in the thesis is the result of author’s independent work during study and research period and it is not yet published in other’s research and article The other’s research result and documentation (extraction, table, figure, formula, and other document) used in the thesis are cited properly and the permission (if required) is given The author is responsible in front of the Thesis Assessment Committee, Hanoi School of Business and Management, and the laws for above-mentioned declaration Date………………………… LỜI CẢM ƠN Em xin gửi lời cảm ơn sâu sắc đến PGS.TS Phạm Đức Hiếu tận tình hướng dẫn, dẫn em suốt q trình nghiên cứu hồn thành luận văn Xin chân thành cảm ơn đến tồn thể Q Thầy Cơ khoa Quản trị Kinh doanh (HSB) trường Đại học Quốc Gia Hà Nội tận tình giảng dạy, truyền đạt kiến thức suốt q trình em theo học chương trình MBA Kính chúc Qúy thầy cơ, tồn thể anh chị em bạn bè đồng nghiệp thật nhiều sức khỏe, nhiều thành công công việc sống Xin chân thành cảm ơn! Hà Nội, ngày…tháng…năm 2019 TABLE OF CONTENTS ABBREVIATIONS i LIST OF TABLES ii INTRODUCTION CHAPTER 1: OVERVIEW OF LABOR PRODUCTIVITY 1.1 Some basic concepts 1.2 Role of increasing labor productivity in businesses 1.3 Factors that affect the labor productivity 1.3.1 Impact of science and technology: 1.3.2 Impact of human resources and human management (human resources) 1.3.3 External factors such as macroeconomic environment, laws, policies, etc 16 CHAPTER 2: CURRENT STATUS OF LABOR PRODUCTIVITY OF BIDV BRANCHES IN HANOI CITY 17 2.1 Overview of BIDV and BIDV branches in Hanoi City 17 2.2 General evaluation of the average labor productivity of commercial banks in Vietnam and the average labor productivity of commercial banks in Hanoi City 20 2.3 Evaluation of the current status of labor productivity of BIDV branches in Hanoi City 29 2.3.1 Labor productivity by scale 29 2.3.2 Labor productivity by efficiency 33 2.3.3 Labor productivity by workload 37 2.4 Evaluation of the current status of labor productivity of BIDV in Hanoi City 43 2.4.1 Advantages 43 2.4.2 Shortcomings and causes 45 2.5 Factors affecting the labor productivity of BIDV branches in Ha Noi City 46 2.5.1 Organizational structure 46 2.5.2 Operation process 48 2.5.3 Technology 49 2.5.4 Human resources 50 CHAPTER 3: SOLUTIONS TO IMPROVE LABOR PRODUCTIVITY OF BIDV BRANCHES IN HANOI CITY 52 3.1 Orientation of BIDV’s operational objectives for the 2016-2020 period and vision to 2030 52 3.1.1 Vision to 2030 52 3.1.2 Objectives and requirements in the 2016-2020 period: 52 3.2 Solutions to improve labor productivity of BIDV branches in Hanoi City: 58 3.2.1 Solutions for organizational structure reform of BIDV: 58 3.2.2 Solutions for BIDV’s operation process reform and some specific mechanisms for branches in Hanoi City 59 3.2.3 Technology solutions 63 3.2.4 Human resources solutions 63 3.3 Implementation roadmap: 65 3.3.1 Phase 1: From 2018 to June 30, 2019 66 3.3.2 Phase 2: From July 01, 2019 to July 01, 2020 67 3.3.3 Phase 3: In Quarter 3+4/2020 67 REFERENCES 68 ABBREVIATIONS - TCTD: Credit institutions - NHNN: State Bank of Vietnam - NHTM: Commercial Bank - NHTMCP: Joint Stock Commercial Bank - NSLD: Labor Productivity - BCTC: Financial Statements - Ban QLHQHD: Performance Management Board - LNTT: Earnings before tax - QLKHDN: Corporate customer management - QLKH: Customer management i LIST OF TABLES Table 2.1: Average labor productivity of the whole economy 21 Table 2.2: Average labor productivity by sector in the 2011 – 2015 period 22 Table 2.3: Total assets of commercial banks with their head offices in Hanoi City 23 Table 2.4: Labor productivity by total assets of commercial banks 25 Table 2.5: Labor productivity by capital mobilization of commercial banks 26 Table 2.6: Labor productivity by the outstanding loans of commercial banks 26 Table 2.7: Net income of commercial banks in 2016 27 Table 2.8: The average net interest income per labor of commercial banks 28 Table 2.9: The average net non-interest income per labor of commercial banks 28 Table 2.10: Labor productivity by the average earnings before tax per labor of commercial banks 29 Table 2.11: Average residual capital mobilization per capita of some branches of commercial banks 30 Table 2.12: Average credit outstanding balance/person of some branches of commercial banks 32 Table 2.13: Average earnings before tax per capita of some branches of commercial banks 34 Table 2.14: Average net service income per capita of some branches of commercial banks 36 Table 2.15: Number of transactions of BIDV by area 38 Table 2.16: Average transactions/day/teller of some branches of BIDV in Hanoi City 39 Table 2.17: Comparison of the proportion of officers in departments among BIDV branches 40 ii Table 2.18: Number of organization customers/ corporate customer managers 42 Table 2.19: Number of retail customers/retail customer managers 42 Table 2.20: Comparison of Qualifications of employees of BIDV with commercial banks in Vietnam 44 iii INTRODUCTION Rationale Labor productivity is a very important quality indicator in the national economy For businesses, labor productivity is the decisive factor to increase production, reduce the costs and timely meet customer needs It is also an indicator of competitiveness, which is an important factor in the business growth, improves the efficiency of enterprises In addition, in the context of market economy and international economic integration and the more and more severe competition nowadays, to be able to exist sustainably and operate effectively, it is essential for businesses and banks to pay more attention to indepth development, improve the productivity, service quality, especially labor productivity Therefore, in Joint Resolution No 5960/NQLT-BIDV dated 07/8/2015 on Orientation of Business Plan Framework for the 2016-2020 period and Vision to 2030 of Vietnam Joint Stock Commercial Bank for Industry and Trade (BIDV), one of BIDV’s goals and requirements for the 2016-2020 period is: “Perfecting Regulatory compliance-based banking management model, Operating according to the Practices on the transparent, public and effective way Maintaining the goals of transforming the organizational model towards the centralized management in Head Office and operating the vertical business of a modern and advanced banking model Improving the business efficiency and labor productivity; striving to increase the labor productivity (Earnings before tax per capita increases by over 10% annually) In this situation, with the expectation of contributing a small part to the achievement of the goal and requirements of BIDV’s Board of Directors, the research team found it is really necessary to evaluation the current status of labor productivity and propose the solutions to improve labor productivity at BIDV branches in Hanoi City Therefore, the research team has selected the business in total revenue of BIDV Total revenue from insurance business (Bancas, BIC and BIDV MetLife Joint Venture) will not be less than 10% of BIDV’s total revenue by 2020 and over 25% by 2030 iii Boost insurance business through banks, raise total service revenue from insurance business cooperation in the top non-credit services of commercial banks in 2020 iv Strongly apply information technology, develop diversified banking insurance products and services; improve skills, professionalism, develop insurance distribution channels through banks (bancas) which is the dominant strength in the competition v Transform operations into a Holding Company model, apply modern management skills, connect non-life insurance products among Vietnam-Laos-Cambodia-Myanmar markets vi Make BIC become a non-life insurance company in the top five companies with the largest market share and the highest profitability of the Vietnamese market, having the international credit rating in the group of Vietnam’s leading insurance companies, have income from overseas markets at over 30% by 2020 vii Along with MetLife, make BIDV MetLife Life Insurance Joint Venture be the leading unit in Vietnam in terms of revenues from the bancas channel in Vietnam by 2020 and be one of the largest companies in terms of the market share by 2025 55 Some business plan indicators in the 2016-2020 period:  For operations of commercial banks Unit: Billion dong, % KH2015 T No Indicators 2016-2018 2019-2020 1645/N QHDQT 2018 TTBQ Plan 20162020 2020 TTBQ Plan objectives IScale TTotal assets 805,200 2Charter capital End-period capital mobilization 633,000 End-period debts 590,000 credit Where, retail debt (CK) I 49,500 1,149,20 1,060,00 18% 13% 22% 22% 36% 1,772,80 54,600 1,577,10 1,442,40 550,000 15% 17%/year 05% 10%/year 17% 20%/year 17% 20%/year 29% 34%/year 129,500 328,600