Development of corporate culture at thaco group phát triển văn hóa doanh nghiệp tại THACO group

ĐẠI HỌC QUỐC GIA HÀ NỘI KHOA QUẢN TRỊ VÀ KINH DOANH - ĐỖ THỊ LAN ANH DEVELOPMENT OF CORPORATE CULTURE AT THACO GROUP PHÁT TRIỂN VĂN HÓA DOANH NGHIỆP TẠI THACO GROUP LUẬN VĂN THẠC SĨ QUẢN TRỊ KINH DOANH HÀ NỘI - 2020 ĐẠI HỌC QUỐC GIA HÀ NỘI KHOA QUẢN TRỊ VÀ KINH DOANH - ĐỖ THỊ LAN ANH DEVELOPMENT OF CORPORATE CULTURE AT THACO GROUP PHÁT TRIỂN VĂN HÓA DOANH NGHIỆP TẠI THACO GROUP 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 NGUYỄN NGỌC THẮNG HÀ NỘI - 2020 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………………………… i TABLE OF CONTENTS DECLARATION i LIST OF TABLES v LIST OF CHARTS AND FIGURES vi BACKGROUND CHAPTER 1: THEORETICAL FRAMEWORK ON CORPORATE CULTURE DEVELOPMENT 1.1 Overview about the study on corporate culture development 1.1.1 Situation of foreign study 1.1.2 Situation of domestic study 1.2 General concept on corporate culture 1.2.1 General concept on culture and business culture 1.2.2 Concept on corporate culture 10 1.2.3 Identity of corporate culture 11 1.2.4 Brandname 12 1.3 Necessity to design and develop corporate culture 13 1.3.1 For enterprise: 13 1.3.2 For the society 14 1.4 Characteristics of corporate culture 14 1.4.1 Visual characteristics of corporate culture 15 1.4.2 Non - visual characteristics of corporate culture 17 1.5 Constituents of corporate culture 19 1.5.1 Management and business philosophy 19 1.5.2 Personal and organization motives 19 1.5.3 Procedures and regulations 19 1.5.4 Information exchange system 20 1.5.5 Movement, rituals, etiquettes 20 1.6 Benefits of corporate culture development 20 1.6.1 For enterprise 20 ii 1.6.2 For non-enterprise: 21 1.6.3 For branding of products and services 22 1.7 Steps of corporate culture development 22 CHAPTER 2: RESEARCH METHODOLOGY 24 2.1 Methodology 24 2.2 Research procedure 24 2.3 Data collection sources 25 2.3.1 Primary data source 25 2.3.2 Secondary data source 25 2.4 Data collection method and tools 25 2.4.1 Data collection method 25 2.4.2 Data collection tools 25 2.5 Data analysis and processing method 27 2.5.1 Primary data processing method 27 2.5.2 Statistics and comparison methodology 28 2.5.3 Descriptive statistics methodology 28 2.5.4 Analysis and synthesis method 28 CHAPTER 3: EXISTING STATUS OF CORPORATE CULTURE DEVELOPMENT IN THACO GROUP 30 3.1 Overview about Truong Hai Automobile Joint Stock Company (THACO) 30 3.1.1 History of development of Truong Hai Automobile Joint Stock Company 31 3.1.2 Organizational structure in Truong Hai Automobile Joint Stock Company (THACO) 33 3.1.3 THACO's value chain 35 3.1.4 Evaluate human resources characteristics in THACO .36 3.1.5 Evaluate the operation performance in the period of 2015 - 2018 39 3.2 Existing status of corporate culture in THACO through visual characteristics 40 3.2.1 Available cultural values of THACO 40 “3.2.2 Corporate culture development through T principles in THACO .41 3.2.3 Corporate culture development through THACO song 42 iii 3.2.4 Cultural development through Code of Conduct in THACO 42 3.2.5 Corporate culture development through THACO HR evaluation culture 43 3.2.6 Corporate culture development through THACO typical publication magazine 47 3.2.7 Corporate culture development in other charity activities .47 3.3 Existing status of corporate culture in THACO through non-visual characteristics 48 3.3.1 Corporate culture development through converting THACO culture into action by each member 48 3.3.2 Corporate culture development through emphasis level in THACO .51 3.3.3 Corporate culture development through working environment in THACO 52 3.3.4 Corporate culture development through cultural rituals and expression in THACO 52 3.3.5 Corporate culture development through Culture - leadership style in THACO 55 3.4 Evaluation of corporate culture development in THACO group 56 3.4.1 Achievements 57 3.4.2 Shortcomings 57 CHAPTER 4: SOLUTIONS FOR CORPORATE CULTURE DEVELOPMENT IN THACO 60 4.1 ThACO’s development and operation orientation to 2020 .60 4.2 Corporate culture development solution in THACO 64 4.2.1 Improve working capacity of the Culture - Communications Board .64 4.2.2 Improve and raise the awareness on corporate culture for the employees 66 4.2.3 Perfect the annual HR evaluation procedure 67 4.2.4 Design the behavior culture manual, governance regulation and rule system in THACO 69 4.2.5 Design and develop THACO brand 69 4.2.6 Set up corporate culture development procedure in THACO 70 4.3 Some recommendations 70 CONCLUSIONS 74 APPENDIX iv LIST OF TABLES Table 1.1 Characteristics of corporate culture 14 Table 2.1: Summary of questionnaire structure for official study 27 Table 3.1: Statistics of THACO employee gender and age updated on October 2018 36 Table 3.2: Statistics of THACO employee qualification, updated on October 2018 37 Table 3.3: Some business performance in the period of 2015 – 2018 39 Table 3.4: HR evaluation table in THACO 43 Table 3.5: Applicable standard criteria table of THACO 44 Table 3.6: General evaluation on corporate culture of THACO members .50 Table 3.7: Survey table on members’ awareness on corporate culture 53 Table 3.8: Influence of leadership style on THACO members 55 v LIST OF CHARTS AND FIGURES Figure 3.1 THACO market share revenue in 2018 32 Figure 3.2: Standard logo of THACO 36 Figure 3.3: Evaluation of labor age percent in THACO updated on October 2018 37 Figure 3.4: Available qualification of THACO staff, updated on October 2018 38 Figure 3.5: HR evaluation procedure in THACO 44 Figure 3.6: Sequence of approving the annual HR evaluation results 46 Figure 4.1: THACO's operation and development orientation to 2020 60 Figure 4.2: THACO development mission to 2020 62 vi BACKGROUND Necessity of the study With response to the international and regional economic integration development trends, Vietnamese enterprises and organizations are put under increasingly high pressure not only from the foreign counter-partners but also cutthroat competition even in each agency and organization The Vietnamese and international practice proved that a positive cultural environment is a reliable background to successfully compete and create the sustainable development for the organization and enterprise However, in such globalization trend, the cultural assimilation is tended to increase In order to prevent from becoming a cultural consistency, each organization is required to maintain and uphold its own culture Culture decides the survival of an organization and helps it further develops out of the starting point of founders Culture is also recorded as an intangible asset of such organization Culture helps the organization to reduce the conflict, coordinate and control, motivate the employees and enhance the competitive advantages By reducing the conflict, culture cements the organization’s members who may be unified in terms of understanding, evaluation, and selection and action orientation When the organization is faced with conflict tends, members are unified by the culture When a complicated decision is required, culture helps the organization to narrow down the options to be considered, motivate the employees so that they may master their job objectives and orientation, creating the good relationship between the employees and a convenient and healthy working environment Organization culture plays an important role not only for improvement of comprehensive work performance but also an important solution to successfully improve the competitiveness Culture creates the differences and distinguishes among organizations Corporate culture may be regarded as one of valuable intangible asset of each enterprise Corporate culture may create trust for each person working in such environment, a link among the members of the enterprise, creating the voice between the members and improving the enterprise’s competitiveness Therefore, corporate culture may be regarded as an important mechanism in managing human resources Meanwhile corporate culture is really merged into the objectives of each member, then, they may consider the enterprise’s objectives as their personal objectives That is why culture-based management may drive the enterprise’s longterm development To become the universal industrial Group and Vietnamese Brandname to be recognized as the regional leading position in ASEAN, THACO is required to make ceaseless efforts to develop its internal force, renovate the thinking and action, and improve the quality and scale of the staff In order to these, one of important tools to manage and govern the Company is THACO culture By always submerging the idea that the staff is the important resources to create the success and sustainable development, THACO culture is oriented toward developing a qualified staff with strong will, positive working attitude, high creativeness and high sense of qualification improvement to be able to work in a discipline and contribute to the Company's development As a result, they become the person useful for the society and the Country With awareness of significance of corporate culture on enterprise’s success and the sustainable future of the Group, creating a reliable premise to extend to the region and the world, “Development of corporate culture in Thaco Group” (THACO) topic is selected as the author’s graduation thesis Objectives The thesis's research objectives include systematizing some basic theoretical issues on corporate culture and development of corporate culture; evaluating the results of developing Thaco Group to be cemented with the Group's development and growth, proposing some possible solutions to successfully develop Thaco Group's corporate culture By analyzing and comparing the theories with the practice by constituents of organization culture; Analyzing the concerned concepts, phenomenon of objective and non-objective corporate culture; viewpoints and development of corporate culture; evaluating the existing conditions of maintaining and developing the understand mission, operation orientation? Do 14 you THACO guidelines development? Do you want to work in 15 THACO culture environment? Is 16 actively THACO culture? Does THACO apply and disseminate 17 regulations on moral standards member? Do 18 you trust assigned task? Do you want to maintain 19 the culture in THACO? 20 Do you wish to work for long time in THACO? human Section 3: Survey on “corporate culture expression” in THACO Corporate culture is basically divided into two aspects, visual expression of enterprise: from specific images and architecture of each enterprise to non-visual characteristics when the specific characteristics are only realized, felt and understood upon direct contract and engagement Please, select details in table below: (Tick the respective options) No Corporate culture expressi 21 Interior and exterior architec 22 Brand, logo, slogan “THAC the country” 23 The Company’s language, sl 24 Annual rituals 25 26 27 Internal and external comm members, behavior and com History of development and Value, philosophy, viewpoin towards THACO developme 28 Community activities 29 Internal reports, annual repo 30 THACO magazines, publica Section 4: Survey on “THACO leadership style” Leaders not only decide the organization structure and technology of the enterprise but also create the symbols, ideology, language, trust, rituals and legend, etc., of the enterprise Please, select score in accordance with the below scale: No Action of senior leader group 31 is suitab development strategy THACO management shares 32 THACO and business orientation The management 33 and members The 34 specific THACO 35 THACO samples to follow The 36 constructive direct subordinates The the 37 improve production activities unit's HR 38 The intermediate manager have made great efforts to reach the consents in all decisions The team intermediate managers conveys 39 the management values viewpoints departments/company The intermediate 40 maintain working support Sincere team Appendix 2: Available business model of THACO Group Linh kiện Phụ tùng Sản xuất Linh kiện PT • Cơ khí Sản xuất • Khung gầm • Khn mẫu • Điện - Điện lạnh • Hóa chất • Nhựa Composite • Kính Phân phối Phân phối Linh kiện PT Bán lẻ Dịch vụ Appendix 3: Thaco Group's organizational structure Appendix 4: Branches and subsidiaries of THACO No Region Hanoi branches) The Northern area (5 branches) The Northeastern area (3 branches) The Northwestern area (4 branches) The Northern area (4 branches) The Central (6 branches) The Central area (2 branches) The Southeastern area (10 branches) Ho Chi Minh (9 branches) The 10 Southwestern area branches) The 11 South central area branches) Appendix 5: HR evaluation levels applied in THACO Component Vehicle business Le Sa DVPT Se business co Repair workshop Te Appendix 6: Images of THACO Auto Magazine Vol 46 ... KINH DOANH - ĐỖ THỊ LAN ANH DEVELOPMENT OF CORPORATE CULTURE AT THACO GROUP PHÁT TRIỂN VĂN HÓA DOANH NGHIỆP TẠI THACO GROUP Chuyên ngành: Quản trị kinh doanh Mã số: 60 34 01 02 LUẬN VĂN... non-objective corporate culture; viewpoints and development of corporate culture; evaluating the existing conditions of maintaining and developing the corporate culture at Thaco Group, awareness of achievements... and forms of corporate culture, levels of corporate culture The respondents include officials and employees of THACO Scope of research: 4.1 Scope of space: Thaco Group? ??s branches extend nationwide,