Low job satisfaction in sacombank – ky hoa transaction office

UNIVERSITY OF ECONOMICS HO CHI MINH CITY International School of Business TA THI DIEP TAN LOW JOB SATISFACTION IN SACOMBANK – KY HOA TRANSACTION OFFICE ID: 22130064 MASTER OF BUSINESS ADMINISTATRION SUPERVISOR: Dr LE NHAT HANH Ho Chi Minh City – Dec, 2016 TABLE OF CONTENT ACKNOWLEDGEMENT EXECUTIVE SUMMARY CHAPTER 1: COMPANY INTRODUCTION 1.1 General Information about Sacombank 1.2 Company details 1.3 Organization chart CHAPTER 2: PROBLEM IDENTIFICATION 2.1 Problem context 2.2 General symptoms 2.2.1 The first symptom: H 2.2.2 The second symptom 2.3 2.3.1 Identifying and Diagnosing Tentative Problems The first potential pr opportunity 2.3.2 The second potentia benefits 16 2.3.3 The third potential p opportunity 2.3.4 The fourth potential employees and supervisors 2.4 The real problem: Low job satisfaction 2.5 Verifying the importance of job satisfaction 2.6 Verifying the existence of real problem: Low job satisfaction in Sacombank 19 2.7 Causes and Effects chart of real problem: Low job satisfaction in Ky Hoa 23 CHAPTER 3: ALTERNATIVES ANALYSIS AND POSSIBLE SOLUTIONS 25 3.1 Justify the importance of the causes 25 3.2 Recommended Solutions .27 3.1 Solution 1: Increasing employee motivation by improving workplace harmony 27 2.2 Solution 2: Increasing employees’ professional skills and career development through training and development plans 28 2.3 Solution 3: Motivating employee by a better performance and reward system .30 CHAPTER 4: SUPPORTING INFORMATION 34 4.1 Questionnaires of employees’ satisfaction 34 4.2 Customers’ interviews 39 4.3 Manager’ interviews 43 4.4 The results of the focus group interview to justify the main causes: 46 REFERENCES ACKNOWLEDGEMENT I am grateful to my supervisor, Dr Le Nhat Hanh, whose expertise, understanding, generous guidance and support made it possible for me to work on a topic that was of great interest to me It was my pleasure working with her I am very thankful to Managers and Directors of Sacombank for give me time to response to my questions for being ever so kind to show interest in my research and for giving their precious and kind advice regarding to my topic I would like to express my gratitude to co-workers at Sacombank Ky Hoa bank for being so generous to reply to my questionnaires Words can never be enough to thank your all kindness EXECUTIVE SUMMARY Ky Hoa Transaction Office (Ky Hoa) of Sacombank located in Su Van Hanh Street, District 10, Ho Chi Minh City is one of the top transaction offices of Sacombank, the top biggest public commercial bank in Vietnam The transaction office has impressive growth since the very first day of business It achieved the title of “Potential Transaction office”, a very honor title for a transaction office of Sacombank, place them equivalent to many branches, which usually included the branches and many smaller transaction offices However, Ky Hoa’s management team still unsatisfied with the result of its business Despite the great growth of many aspects like customer base, customer deposit and saving, services fee, foreign exchange business…, Ky Hoa’s profit still under performance as pointed out by both the management team of this transaction office and Sacombank headquarter As profit is the key to the survival of any business, lacking of profit means the future of Ky Hoa is in danger In order to figure out the problem with this transaction office, the full scale of problem finding methods have been conveyed including interview with Ky Hoa management team; managers of others transaction office of both Sacombank and competitors; focus group with all the related employees of Ky Hoa; and combined with related market condition and literatures After all these step, the lacking of employee satisfaction of Ky Hoa (especially the employees of credit department) that lead to the symptom of low credit growth rate is the main problem of this transaction office The possible cause of the problem also pointed out in according with the KPI of KY Hoa Credit department: the inexperience and limited knowledge of the Bank credit services of credit employees; the satisfaction of employees on salary, work load, benefits and promotion opportunities; and lack of guidance from supervisors Therefore, the first solution for this problem is improving the knowledge of the bank’s services for both the sale team and management team After that, the frequently KPI check for each of employee will be conveyed as the standard for credit department There should be some type reward, visible and recognizable reward for the good work of employee In the mean time, anyone who could not qualified or did not show significant improvement will be replaced by more competent candidates For these solutions to be effective, the management team and supervisors also need to be restructured as creating the competing environment, providing guidance and encouragement for all members to achieve both personal and department targets In other word, the harmony in working environment is the key to balance the need of employees, manager, superviors and customers CHAPTER 1: COMPANY INTRODUCTION 1.1 General Information about Sacombank Sai Gon Thuong Tin Commercial Joint Stock Bank (Sacombank) was established in 1991, currently one of the top Vietnamese joint stock banks In term of charter capital, it is reaching over 14,000 billion VND and the rank is in the top ten of biggest private banks in Vietnam regards as large amount of capital Currently, Sacombank have 448 Transaction Offices from many big cities to small rural areas such as Hanoi, Danang, Ho Chi Minh City, Cu Chi and An Giang Sacombank’s team of professional ability provides banking services a large amount of customers from individual, personal banking service to companies like exporters or importers and Small and medium enterprises (Statebank, n.d.) Sacombank is accepted to be a member of Visa Card network and many reputable financial institutions With roughly 13,000 employees, Sacombank locates its head office at the downtown in Ho Chi Minh City This bank is increasingly becoming the valuable choice of many enterprises as well as thousands of individuals (Sacombank, n.d.) In order to determine problem existence, a preliminary assessment of financial report was released as displayed in Appendix A random key managers or employees of Sacombank were selected to join in this survey and the results (Appendix 1) showed that apart from customer profile and preliminary assessment (Sacombank, n.d.) One more thing, the figure from financial report can be shown out the performance of employee in certain stance The decrease of credit growth tends to be increased in relation to the last quarter or the same quarter of last financial report Mostly, the gap between borrowing and lending are tend to be higher while Sacombank strategy has been create many unique sale point to produce several sustainable competitive advantage for its product (Sacombank, n.d.) Although its advantages are quite significant, the sale team or the volume of sale has been improved in terms of credit growth Meanwhile, a client survey was carried out with the purpose of take a 360-degree point of view about these problems (Sepehri & Akram-lodhi, 2005) In addition, after several survey and deeply research with the clients or the supervisors, Ky Hoa Transaction Office was identified many phenomenon’s from low productive and incompetent credit sale to heavily job-unsatisfaction of many of its employees Comparing with the size and the benchmark of another transaction office, the potential value and operation profit were under expected and the effect growth comparing with June 30th was not positive number A client survey can quickly recognize the issues with individual or group In Ky Hoa Transaction Office of Sacombank, client or enterprises are main businesses customers Once again, the feedback from customers was undervalued in many aspects Overall customer services of the Transaction Office not satisfy the standard of service requirements Several negative responses mean employee performance is not exceeding expectations Besides, the quality of work is one of the evident for those problems The standard that can be measuring employee performance seems to be lower The work is likely to carry out in higher length of time or lower than average commitment Those indicators above were come from the results the interview with chief operational officers of Sacombank (Appendix) After those researching and clarify this phenomenon, I truly realize that low performance among employee, which is defined as the main place where a bank's revenue was born by strategic management and professional service (Tu, Ha & Yen, 2015) It is a hot issue in the view of competitive environment, especially in the dynamic economy in Vietnam and has great impact on the sustainable growth (Chinh & Anh, 2008) Thus, I would like to a research about this issue at this Ky Hoa Transaction Office with the purpose of improving the situation Productive employees are the lifeblood of any banking system It is necessary to assess the performance level in order to comprehend and evaluate the employees 1.2 Company details Sacombank Head Office Address: 266 - 268 Nam KY Khoi Nghia Street, Ward 8, District 3, HCMC Tel: (+84) 83 9320 420 Fax: (+84) 83 9320 424 Email: info@sacombank.com Swift: Code: SGTTVNVX What you suppose “Perceived organizational and managerial level support” have an effect on the level of employee engagement? Please explain more detail your opinion 50 What you assume “Job Characteristic” affect the stage of employee engagement? Explain extra element your opinion 51 Which elements have an effect on the level of low worker engagements that no longer listing in this discussion? arrange the factor that have an effect on the level of low worker engagement according to the level of importance, give element provide an explanation for your choice? Please 52 think about any contributions to decorate the stage of low employee engagement in Ky Hoa Transaction Office? What you 53 54 REFERENCES Aken, J E., Berends, H., Bij, V., Van B., & Joan, E (2007, January 25) Problem solving in organizations Cambridge University Press, p 25 Available from http://dx.doi.org/10.1017/CBO9780511618413 Chinh, V T M., & Anh, N V (2008) Measuring customer satisfaction based on service quality gap at a local bank in Vietnam Journal of International Business Research, 7(2), 27-51 Coudert, V., & Pouvelle, C (2010) Assessing the sustainability of credit growth: The case of central and eastern european countries The European Journal of Comparative Economics, 7(1), 87-120 doi: 727604804.63189 Carmen, B C., Enrique, M A., & David, M R (2004) The influence of employee organizational citizenship behavior on customer loyalty International Journal of Service Industry Management, 15(1), 27-53 doi: 233641606.63189 Chaita, M V (2014) The impact of employee attitudes on job satisfaction: A comparative study of university professors in the northwest region of england International Journal on Global Business Management & Research, 3(1), 2-12 Cohen, L (2003) Loyalty based portfolio choice Chicago: University of Chicago Dotan, H (2007) Friendship ties at work: origins, evolution and consequences for managerial effectiveness Los Angeles: University of California Matly, L., & West, H (2005) Commercial bank financing of white and black-owned small business start ups Quarterly Review of Economics and Business, 1(3), 10-15 Pham, T T T (2015) Does exporting spur firm productivity? 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Retrieved July 19, 2015, from http://www.sbv.gov.vn/portal/faces/en/enpages/public/areports;jsessionid=zZPtVT1cm z3XCjQLVjnX3TG6C2w2TkLh48jRyLZZXpqndwM9FpT1!-1905113511!952516252?_afrLoop=9121961526167835&_afrWindowMode=0&_afrWindowId=null #%40%3F_afrWindowId%3Dnull%26_afrLoop%3D9121961526167835%26_afrWind owMode%3D0%26_adf.ctrl-state%3Djywo1dfhx_4 Sacombank (n.d.) Retrieved May 19, 2015, from https://www.sacombank.com.vn/en/intro/Pages/Establishment-and-Deveplopment.aspx SOLUTION FOR CREDIT GROWTH IN KY HOA TRANS Sahinidis, A G., & Bouris, J (2008) Employee perceived training effectiveness relationship to employee attitudes Journal of European Industrial Training, 32(1), 63-76 doi:http://dx.doi.org/10.1108/03090590810846575 Statt, D (2004) The routledge dictionary of business management Detroit: Routledge Publishing Spicer, D (2010) 10 factors creating job satisfaction: what motivates now? 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The Journal of Services Marketing, 20(4), 251-264 doi:http://dx.doi.org/10.1108/08876040610674599 Wheatley, M (2006) Leadership and the new science, discovering order in a chaotic world San Francisco: Berrett-Koehler Appendices Appendix Total Asset balance Sheet updated June in 2015 of Ky Hoa Transaction Office of Sacombank TAI SAN CO 1/ Cho vay cac T/chuc kinh te A.Ngan han - Trong : No Qua Han B Trung han - Dai Han - Trong : No Qua Han C Cac Khoan No Cho Xu Ly D Du phong rui ro 2/ Cho vay cac TCTD khac 3/ Hun von, Mua Cp, Ldoanh - Voi Cac To Chuc Kinh Te - Voi Cac To Chuc Tin Dung Cvon cho Cty truc thuoc 4/ Mua Ban TPKB, Chung khoan, CP 5/ Tien Gui O Nh Nha Nuoc 6/ Tien Gui Tai Cac TCTD Khac 7/ Cong cu tai chinh phat sinh 8/ Von Uy Thac Dau Tu 9/ Ngan Phieu Thanh Toan 10/ Tien Mat, Ngoai Te, Vang - Tien Mat - Ngoai Te - Chung tu Co G/tri Nte - Vang 11/ Tai san co dinh - Trong do: Nguyen gia Tscd 12/ Tai San Co Khac CAN SO Appendix Financial Report updated June in 2015 of Ky Hoa Transaction Office of Sacombank ... since the slowing down of banking jobs in Vietnam However, we should maintain the rate at possible range I’m suggesting the board for a plan to investigate further into Ky Hoa? ??s transaction office. .. co-workers at Sacombank Ky Hoa bank for being so generous to reply to my questionnaires Words can never be enough to thank your all kindness EXECUTIVE SUMMARY Ky Hoa Transaction Office (Ky Hoa) of Sacombank. .. branch in Ky Hoa Transaction Office It includes gathering the information, analyzing the necessary of the issues; pick out the root motives of low worker engagement at Ky Hoa Transaction Office, which