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 .5 1.1 Overview about the study on corporate culture development .5 1.1.1 Situation of foreign study .5 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 enterprises, adversely affecting production and business activities, abetting negative acts, violating the laws, destroying the country's culture and business culture 73 CONCLUSIONS In the context of sharp globalization, cultural exchange, binding and engagement are increasingly high among the countries, then, enterprises face with specific culture development challenges so as to be well matched with their business strategy to successfully develop their fame and brandname and resources to distinguish and improve the competitiveness for the international economic integration Corporate culture is the soul of the enterprises, creating the enterprise’s spirit and identity Corporate culture is the link of individual viewpoints to create a general viewpoint system, generating a powerful strengths for the enterprise Thanks to corporate culture, the enterprise is empowered with the great strengths, specific identity and competitive advantages Therefore, maintaining, perfecting and developing corporate culture in Vietnam is extremely urgent and originated from the production and business practice It acts as the mission of each agency, organization and industry Powerful culture of each enterprise shall facilitate a good image for the country in the in-depth integration path with the world economy.” Over 20 years of history of development, THACO gradually creates its own cultural identity through business philosophies, visions and operation strategies, namely: “value” philosophy, differentiation strategy, specific governance, and convenient cultural working environment Thanks to that, THACO obtains the important achievements recorded in its production and business activities Corporate culture development is not only a slogan but also implemented in the whole accumulated specific value process, enhanced by each individual in such system 74 REFERENCES VietNamese: Đỗ Minh Cương (2001), “Văn hóa kinh doanh triết lý kinh doanh”, Nhà xuất Chính trị quốc gia Edgar H.Schein (2012), “Văn hóa doanh nghiệp lãnh đạo”, Nhà xuất Tri Thức Dương Thị Liễu (2008), “Bài giảng: Văn hóa kinh doanh”, Trường Đại học Kinh tế Quốc dân Nguyễn Anh Tuấn Nguyễn Phương Mai (2011), “Nghiên cứu mối quan hệ văn hóa doanh nghiệp chiến lược doanh nghiệp giai đoạn chuyển đổi kinh tế Việt Nam”, Trường Đại học Kinh tế- ĐHQGHN Nguyễn Mạnh Quân (2011), Giáo trình Đạo đức kinh doanh Văn hóa Cơng ty, NXB Đại học Kinh tế Quốc dân Nguyễn Viết Lộc (2011), “Nhân cách doanh nhân văn hóa kinh doanh Việt Nam Công ty cổ phần ô tô Trường Hải (THACO) , Báo cáo tài hợp 2010 – 2018 Đỗ Thị Phi Hồi (2009), Văn hóa doanh nghiệp, NXB Tài Chính Đỗ Tiến Long, Đánh giá văn hóa doanh nghiệp doanh nghiệp nhỏ vừa Việt Nam, viết tạp chí Khoa học ĐHQGHN, Kinh tế kinh doanh, tập 31 số 1(2015) English: Edgar H.Schein (2004), Organizational Culture and Leadership 3rd ed, Jossey-Bass Recardo, R., & Jolly, J, (1997), Organizational Culture and Teams S.A.M Advance Management Journal 73 Denison, D R (1990), “Corporate culture and organization effectiness”, New York: John Wiley& Sons Denison Consulting (2005, April), “Overview of the Reliability and Validity of the Denison Organizational Culture Survey”, Ann Website: http://thacogroup.vn/vi/Gioi-thieu/van-hoa-thaco/ http://www.vnpost.vn/vi-vn/bai-viet/chi-tiet/id/83537/key/xay-dung-van-hoadoanh-nghiepyeu-to-quyet-dinh-su-truong-ton-cua-doanh-nghiep http://www.bemecmedia.vn/van-hoa/xay-dung-van-hoa-doanh-nghiep-thoi-hoinhap-canphai-lam-gi.htm 75 APPENDIX Appendix 1: Questionnaire: Study on corporate culture in Truong Hai Automobile Joint Stock Company (THACO) Questionnaire No.…… Response time………………… Introduction: Hi every one, I am Do Thi Lan Anh from the Finance and Accounting Department at KIA Giai Phong Showroom I am a student of the postgraduate study course, MBA14, major business administration, Hanoi University The thesis on “Corporate culture development in THACO group” is being initiated You are selected at random in this survey Hence, you are highly appreciated to spend some time to answer some questions as follows Collected information from this questionnaire shall be summarized and combined with other information to process and apply for my own study Therefore, your data shall not be appeared in the finding report Section 1: General information Please, provide your full name ………………………………………… Gender (Please circle the answer) a Male b Female Which company are you working for? ………………………… Which department are you working? a Management b Accounting c Sales department e Human resources f Administration d Service g Service - operation Your title in the current unit? a Manager b Chief Accountant c Sales Manager e Sales Team Leader f Sales executive g Service Team Leader Service Member i Vice president d Service Manager k Technician Operator Which age group are you? a 18 – 25 b 26 – 35 c 36 – 45 d 46 – 55 e 56 – 60 f over 60 h Your qualification? a Below high schoolb High school c Vocational training school d Intermediate school e College f University g Postgraduates How long have you worked in THACO? a from – months b from – months c from – 12 months d from – years e From 2-3 years f from 3-5 years g from 6-10 years h from 10-15 years i from 16-20 years Section 2: Survey on corporate culture Please, select mark in the following scale (circle the correct answer) Please, mark it No Survey questions Completely disagree Do you agree to Completely agree that corporate culture is very essential Disagree Unsure Agree 5 and 5 thoroughly THACO development? 10 THACO culture is clearly identified and oriented? Do 11 you thoroughly understand THACO business policies orientations as well as customers? 12 13 Do you pride of being a THACO member? Do you understand THACO mission, vision and operation orientation? Do 14 you believe THACO in leadership guidelines 5 by 5 5 and development? Do you want to work in 15 THACO due to good culture and working environment? Is 16 members’ actively behavior affected THACO culture? Does THACO apply and 17 disseminate the regulations on standards for clear moral each member? Do you feel the good 18 trust to outperform the assigned task? Do you want to maintain 19 the human-centered HR culture in THACO? 20 Do you wish to work for long time in THACO? 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 expression in THACO 21 Interior and exterior architecture, identification, CI 22 Brand, logo, slogan “THACO - Developing with the country” 23 The Company’s language, slogan 24 Annual rituals 25 26 27 Internal and external communication methods of members, behavior and communication culture History of development and cultural tradition Value, philosophy, viewpoints, trust and attitude towards THACO development 28 Community activities 29 Internal reports, annual reports 30 THACO magazines, publications, brochures Tick “x” for your option Disagree Agree 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: Please give respective score (circle the correct No answer) Criteria Completely disagree Disagree Unsure Agree Completely agree Action of senior leader group 31 is suitable with THACO's 5 5 5 5 development strategy THACO management shares 32 THACO vision, philosophy and business orientation The management is respected 33 and trusted by THACO members The 34 management specific makes contributions to THACO 35 THACO leaders are bright samples to follow The 36 leaders maintain the constructive relation with the direct subordinates The unit's leaders outperform the 37 HR improve management the production and departments’ and business activities 38 The team leaders and intermediate manager have made great efforts to reach the consents in all decisions The team leaders and intermediate managers conveys 39 the management values and viewpoints of 5 the departments/company The team intermediate 40 maintain the working spirit leaders and managers team-building and mutual support Sincere thanks! Appendix 2: Available business model of THACO Group THACO GROUP Đầu tư Cơng nghiệp hóa Nơng nghiệp Ơ tơ Linh kiện Phụ tùng Xe Thương mại Xe Chuyên dụng Cao cấp Xe Du lịch Sản xuất Linh kiện PT Sản xuất & Lắp ráp Xe TM Sản xuất & Lắp ráp Xe CD CC Sản xuất & Lắp ráp Xe Du lịch Dịch vụ Hỗ trợ  Cơ khí Sản xuất  Khung gầm  Tải  Điện - Điện lạnh  Bus  Hóa chất  SMRM & Chuyên dụng  Bus CC  KIA  R &D  Mini Bus CC  Mazda  Đào tạo  Du lịch CC  Peugeot  Cơ điện Composite Phân phối Linh kiện PT Phân phối Xe TM Bán lẻ Xe TM Bán lẻ Sản xuất & Lắp ráp SP CK NN Sản xuất SP Phục vụ Nông nghiệp Khu Công Nghiệp Dịch vụ Hạ tầng & BĐS Vận tải đường Đầu tư KCN Dịch vụ KCN Bất động sản Hệ thống trung tâm thương mại Vận tải biển Xây dựng Dịch vụ Đô thị Hạ tầng Hệ thống siêu thị bán lẻ  Công cụ  Hệ thống canh tác  Hệ thống thu hoạch  Kính Phân phối Sản phẩm Phục vụ Nông nghiệp Thương mại Dịch vụ  Máy NN  Khuôn mẫu  Nhựa - Sản phẩm khí Nơng Nghiệp ĐT&XD KCN & Khu Đơ thị Giao nhận Vận chuyển Phân phối Xe CD CC Phân phối Xe DL Phân phối SP CK NN Phân phối Sản phẩm NN Bán lẻ Xe Du lịch Bán lẻ SP CK NN Bán lẻ Sản phẩm NN  SR Xe Tải  SR Xe KIA  SR Xe Bus  SR Xe Mazda  SR Máy NN  SR Xe PSA Dịch vụ Dịch vụ Cảng Dịch vụ Giải trí Appendix 3: Thaco Group's organizational structure Appendix 4: Branches and subsidiaries of THACO Special No Region tourism vehicle branch (24 units) Special vehicle commercial Tourism branch (7 Liem Hanoi branches) Branch, Branch, Le vehicle branch (15 units) Bo Truong Long Bien Branch, North Tu Mechanical (16 commercial units) Bac and Hai Company Duan Limited>> (CKCD, Phuc Mesco Company Dong, Soc Son); Giai (Kia, Mazda GP) Phong Branch; Ha Dong Branch The Truong Hai Bac Ninh North- Northern Thai Nguyen Branch area Tourism vehicle - Northeastern area (3 branches) The Northwestern area (4 branches) The South- Northern area (4 branches) The North- Central area (6 branches) Company - Commercial Phu vehicle (5 branches) The Truong Hai Thai Nguyen Company; Truong Lang Son Company; Bac Giang Branch Quang Ninh Branch - Tourism vehicle; Commercial vehicle Hai Phong Branch Truong Hai Vinh Phuc Company - Tourism vehicle Phu Tho Branch Thanh Hoa Branch - Tourism vehicle; TH Nghe An Company Quang Ninh Branch - Vinh Truong Branch Quang Hoa Binh Branch North Thanh Hoa Branch TH - Commercial vehicle Nang Branch Commercial vehicle; Hai - Commercial vehicle Da Nang Branch - Tourism Da vehicle; Phuc Ha Nam Company Quang Nam Branch; Binh Quang Binh Branch - TH Hue Company Company - Tourism vehicle Commercial vehicle The South- Central area Khanh Hoa Branch Binh Dinh Branch (2 branches) Dong Nai Branch - Tourism TH Company (CD, TM vehicle; The Southeastern Truong Hai Di An Company); Binh Binh Duong Duong Branch Company - Tourism vehicle Commercial area (10 branches) TH Vung Tau Company - Vung Tourism vehicle Tau - vehicle; Branch - Commercial vehicle Lam Dong Branch; TH Binh Phuoc Company ; Tay Ninh Branch; Phan Thiet Branch Phu My Hung Branch; Binh Tan Branch Ho Chi Minh Cong Hoa Branch; Binh (9 branches) Trieu Branch; An Suong Branch An Lac Branch Thu Duc Branch Go Vap Branch; Phu Nhuan Branch The 10 North- Southwestern Vinh Long Branch; (2 Tien Giang Branch area branches) The 11 South- South central Can Tho Branch - Tourism Can area branches) (3 vehicle Tho Branch Commercial vehicle - An Giang Branch Appendix 5: HR evaluation levels applied in THACO Component Level Vehicle business Sales consultant DVPT Service business consultant Level Sales Team Leader Service Team Leader Team Repair workshop leader: Technician MGD, Copper, paint Level Sales Manager; Deputy Sales Manager Level Level Director of Branch Showroom; Deputy Director of Deputy Branch Showroom Service Manager Vice shop foreman: MGD, Copper, paint Director; Shop foreman Director 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,