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THE IMPACT OF CORPORATE CULTURAL IN VIETNAMESE COMPANIES: A CASE STUDY OF VIETINBANK, HOAN KIEM BRANCH

BY LE VAN QUYNH E0600106

Graduation Project Submitted to the Department of Business Studies, HELP University College, in Partial Fulfillment of the Requirements for The Degree of Bachelor of Business (Accounting) Hons

APRIL 2011

DECLERATION

I hereby declare that the graduation project is based on my original work except for quotations and citations which have been duly acknowledged. I also declare that it has not been previously or concurrently submitted for any other course/degree at HELP University College or other institutions. The word count is 15,077 words.

_____________________ LE VAN QUYNH Date:

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ACKNOWLEDGEMENT

This graduation thesis is the result of thirteen weeks of research and writing during the spring of 2011. It has been an interesting and learning experience. In fulfilling this thesis, I would like to give my special thanks to many people for their significant help, contribution, and recommendations during my writing process.

First and foremost, special mentions and grate thanks must go to Ms. Dao Thi Thu Giang, my supervisor at Hanoi Foreign Trade University. With her master knowledge and experience in writing thesis, she has wholeheartedly helped me in writing this thesis. I could not have been able to complete this thesis without her positive suggestions and guidance.

Secondly, I want to thank all the managers and staffs of VietinBank, Hoan Kiem Branch, for their cooperation that helped and inspired me in writing.

Thirdly, I would also like to give my heartfelt thanks to the authors who provided me with valuable books for my thesis.

My appreciation is to my family and my friends for their supports and encouragements.

Gratefulness is to the readers also, whose feedback will help much in improving the thesis.

Hanoi, April 2011 Le Van Quynh

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THE IMPACT OF CORPORATE CULTURAL IN VIETNAMESE COMPANIES: A CASE STUDY OF VIETINBANK, HOAN KIEM BRANCH

BY LE VAN QUYNH APRIL 2011 Supervisor: Ms. Dao Thi Thu Giang Abstract The graduation project represents the results of research on impact of corporate culture in Vietnamese companies. The objectives of the project were to understand impacts of corporate culture in Vietnamese companies which shows the importance of corporate culture. Benefits of adopting corporate 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 this thesis, the researcher uses case study of VietinBank, Hoan Kiem Branch because this Branch may be given more accurate information and able to take the right actions.

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TABLE OF CONTENT Page DECLERATION ........................................................................................................ ii ACKNOWLEDGEMENT ........................................................................................ iii Abstract ...................................................................................................................... iv TABLE OF CONTENT ............................................................................................. v LIST OF ABBREVIATION ...................................................................................... x CHAPTER I - INTRODUCTION ............................................................................ 1 1.1. Study background ............................................................................................... 1 1.2. The objectives of study........................................................................................ 2 1.3. Research questions .............................................................................................. 2 1.4. Scope of research ................................................................................................. 3 1.5. Structure of the thesis ......................................................................................... 3 CHAPTER II - LITERATURE REVIEW............................................................... 5 2.1. Overview .............................................................................................................. 5 2.2. Definition of culture and corporate culture ...................................................... 5 2.2.1. Definition of culture ........................................................................................... 5 2.2.2. Definition of corporate culture .......................................................................... 7 2.3. Corporate culture forming factors .................................................................... 9 2.3.1. Key business processes ...................................................................................... 9 2.3.2. Employees and other tangible assets ................................................................. 9 2.3.3. Formal arrangements ...................................................................................... 10 2.3.4. Dominant coalition .......................................................................................... 10 2.3.5. The social system ............................................................................................. 10 2.3.6. Technology ....................................................................................................... 10 v

2.3.7. The external environment ................................................................................. 11 2.4. The impact of corporate culture on the development of a corporation ....... 11 2.4.1. Creating the unique manner and attitude for each corporate ......................... 11 2.4.2. Creating the centripetal force for the whole company..................................... 12 2.4.3. Fostering innovation and invention ................................................................. 13 2.4.4. Creating the competitive advantage of the corporation .................................. 13 2.4.5. Attracting customers ........................................................................................ 14 2.5. Level of corporate culture ................................................................................ 14 2.5.1. Observable artifacts ......................................................................................... 17 2.5.2. Espoused beliefs and values ............................................................................. 18 2.5.3. Basic underlying assumptions .......................................................................... 21 2.6. The role of leader key factor creating the corporate culture of organization .............................................................................................................. 23 CHAPTER III - RESEARCH METHOLOGY ..................................................... 25 3.1. Overview ............................................................................................................ 25 3.2. Research methodology ...................................................................................... 25 3.3. Data collection ................................................................................................... 26 3.4. Sampling ............................................................................................................ 27 CHAPTER IV - RESEARCH ANALYSIS AND RECOMMENDATION......... 28 4.1. Overview ............................................................................................................ 28 4.2. An overview of Vietinbank, Hoan Kiem Branch ........................................... 28 4.2.1. Introduction of Vietinbank ............................................................................... 28 4.2.2. Overview of Vietinbank, Hoan Kiem Branch ................................................... 30 4.3. An overview of VietinBanks corporate culture ............................................. 32

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4.4. Levels and manifestations of corporate culture in VietinBank, Hoan Kiem Branch. ...................................................................................................................... 33 4.4.1. Artifact level and its manifestations ................................................................. 34 4.4.1.1. Offices architecture and decoration ............................................................. 34 4.4.1.2. Brand name, logo, and slogan ....................................................................... 36 Source: VietinBanks website, 2009........................................................................... 36 4.4.1.3. Language and style ........................................................................................ 38 4.4.1.4. Leadership Style ............................................................................................ 40 4.4.1.5. Behavior within the branch ........................................................................... 41 4.4.1.6. Behavior toward customers ........................................................................... 43 4.4.2. Espoused beliefs and values ............................................................................. 44 4.4.3. The basic underlying assumption ..................................................................... 48 4.5. Some suggestions to VietinBank in general .................................................... 49 4.5.1. Identifying the right way of development ......................................................... 50 4.5.2. Improving the influence of core values inside and outside the whole system .. 52 4.6. Some suggestions to VietinBank, Hoan Kiem Branch ................................... 53 4.6.1. Leadership style as the decisive element in building and developing corporate culture ........................................................................................................................ 53 4.6.2. Building the specific value system.................................................................... 55 4.6.3. Changing the physical working environment ................................................... 57 4.6.4. Building up a close relationship between customers and branch .................... 58 4.6.4.1. Customer is King ....................................................................................... 58 4.6.4.2. PR and face-to-face communication with customers .................................... 61 4.6.5. Learning from other organizations .................................................................. 62 CHAPTER V CONCLUSION ............................................................................. 64

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5.1. Conclusion.......................................................................................................... 64 5.2. Limitation of research....................................................................................... 65 REFERENCES ......................................................................................................... 66

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LIST OF FIGURES AND IMAGES Figures Title Page

Chapter 2 Figure 2.1. Figure 2.2. Figure 2.3. Maslows hierarchy of needs Levels of corporate culture Corporate culture icebergs principle 13 15 16

Chapter 4 Figure 4.1. Figure 4.2. Image 4.1. Organizational structure of VietinBank, Hoan Kiem Branch VietinBanks logo Customer is King 31 37 59

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LIST OF ABBREVIATION Abbreviation Full name

VietinBank

Vietnam Joint Stock Commercial Bank for Industry and Trade

Vietin Bank, Hoan Kiem Branch

Vietnam Joint Stock Commercial Bank for Industry and Trade, Hoan Kiem Branch

I.L.O. I.T.

International Labor Organization Information Technology

CHAPTER I - INTRODUCTION

1.1. Study background Recently, corporate culture has not been a new expression with organizations and public. Many companies have not been afraid of investing in many resources to form and develop their own culture. Make a difference is a philosophy in business to improve the image of an organization under the eyes of society, community and clients. One of the factors making the difference is the culture values which are shaped, developed, recognized and popularized in many years. However, not all organizations can be aware of the concept and connotation of the culture they have. Although corporate culture now is a popular term, there are many ways of understanding leading to different definitions of corporate culture. In general, corporate culture can be understood as all the culture values of an organization which are formed during its development period. It has great influence on all activities of a company as well as its workers. In fact, nowadays, corporate culture is one of the important elements that many job hunters concern when they enquire about a company. Besides, a good business environment can become an effective tool to keep those current employees loyal to and dedicated to their organization.

Banking is an industry whose success is based on the belief of the clients. Hence, forming a unique corporate culture which can make good impression on customers is of greater importance for banks in general and for commercial banks in particular. Vietnam Joins Stock Commercial Bank for Industry and Trade VietinBank is one of the top banks in Vietnam. Nowadays, corporate culture is one of the greatest concern by both the leaders and officers of this bank. Therefore, I 1

chose the topic The impact of Corporate culture in Vietnamese companies: A Case Study of VietinBank, Hoan Kiem Branch as graduation thesis topic in the hope that some findings and recommendations from the study could be a reference to help further developing a successful corporate culture for the branch.

1.2. The objectives of study

The study focuses on the concepts of corporate culture, the way it manifests in an organization. From the findings withdrawn from the case study of a selected organization VietinBank, Hoan Kiem Branch, it is expected good

recommendations will be made for creating corporate culture process of this branch. Thus, the study aims to:

i. ii.

Get deeper understanding of the corporate culture; Understand why, what and how an organization forms and develops its corporate culture a case study of VietinBank, Hoan Kiem Branch;

iii.

Find out some solutions and recommendations to develop and improve the corporate culture in this branch.

1.3. Research questions The key question of the study is: What is the corporate culture of VietinBank, Hoan Kiem Branch? To answer this research question, it is necessary to answer the following sub questions:

i.

What is corporate culture?

ii.

What are the manifestations of corporate culture in VietinBank, Hoan Kiem Branch?

iii.

What should VietinBank, Hoan Kiem Branch do to improve its corporate culture in the future?

1.4. Scope of research

This study focuses on the corporate culture of VietinBank, Hoan Kiem Branch, particularly, the way corporate culture manifests in this branch.

The study analyzes the corporate culture developed by the organization and gives some recommendations for the organization to improve its culture to make its difference in the eyes of society, community and clients.

1.5. Structure of the thesis

The thesis includes three five chapters:

Chapter 1: Introduction.

It identifies the statement of aims and objectives with clear indication of the issues, problems and hypothesis being considered.

Chapter 2: Literature review.

Definitions, forming factors and impacts of corporate culture can be found in this chapter. A description of the layers of corporate culture is also provided to help the readers get a sound understanding of corporate culture.

Chapter 3: Methodology.

This chapter presents the research methods as well as data collections. The manifestations are seen from different perspectives, ranging from visible to invisible manifestations.

Chapter 4: Analysis and recommendation.

Firstly, the corporate culture in VietinBank, Hoan Kiem Branch will be analyzed. The manifestations are seen from different perspectives, ranging from visible to invisible manifestations. Next, recommendations are made to further develop corporate culture in VietinBank, Hoan Kiem Branch. In that, this chapter gives some suggestions for VietinBank in general to develop its culture. Then, based on that, recommendations to further develop corporate culture in VietinBank, Hoan Kiem Branch will be given.

Chapter 5: Conclusion.

The conclusion should be a brief resume of the investigation design and results and an overall, personal evaluation of the whole study.

CHAPTER II - LITERATURE REVIEW

2.1. Overview

This chapter provides background knowledge about the study. The chapter will be divided into five main parts: the common concepts of the study including the concepts of culture and corporate culture; the forming factors and the main impacts of corporate culture; the corporate cultures levels developed by Edgar H.Schein and a brief view on the role of leader to the development of culture in an organization.

2.2. Definition of culture and corporate culture

2.2.1. Definition of culture

Culture is a familiar expression with human being. Culture connects closely with our lives, or in other word, culture was born at the same time with human society. However, it was not until the seventeenth century, especially from the second half of the nineteenth century, did scientists in the world concentrate on conducting in-depth researcher in this field. Culture itself is a complex and diversified issue. Therefore, each researcher has his own way to define what culture is. The word culture has many different meanings. For some, it refers to an appreciation of good literature, music, art, and food. For a biologist, it is likely to be a colony of bacteria or other microorganisms growing in a nutrient medium in a laboratory Petri dish. However, for anthropologists and other behavioral

scientists, culture is the full range of learned human behavior patterns. The term was first used in this way by the pioneer English Anthropologist Edward B. Tylor in 5

his book, Primitive Culture, published in 1871. Tylor said that culture is "that complex whole which includes knowledge, belief, art, law, morals, custom, and any other capabilities and habits acquired by man as a member of society." This definition refers quite briefly to every aspect of spiritual culture but does not exhaust the many uses of material culture which play a vital role in human culture treasure.

There came many other definitions of culture after Tylor. Nowadays, the definition stated by Mr. Frederico Mayor, General Manager of UNESCO is agreed by many people. To him, culture is defined as the set of distinctive spiritual, material, intellectual and emotional features of society or a social group, and that it encompasses, in addition to art and literature, lifestyles, ways of living together, values systems, traditions and beliefs (UNESCO, 2002). This definition was worldwide accepted at Intergovernmental Conference of culture policies in 1970 in Venice. In 1982, this approach was admitted at the second conference named Mondiacult.

In terms of economy, scientists have different approach to culture. In the book of Geert Hofstede named Communication between Culture (1984), culture was understood as the collective programming of the mind which distinguishes the members of one category of people from another. In another viewpoint, according to Rao and Swaminathan (1995) culture refers to the values and beliefs shared by members in a society, includes patterns of behaving, feeling and reacting, and the premises underlying behaviors.

From these above definitions, culture is summed up, spread and shared from one generation to another. Culture is transmitted not only from parents to children but also between social organizations, culture group, and from governments to 6

schools, churches and so on. Common thoughts and behaviors are generated and maintained by social pressure and social trends. In this thesis, the author will use the definition taken from the book International Business, 6th edition of Czinkota, 2001. In this book, culture is defined as a system of typical behaviors of each individual in every society. This system consists of every aspect from the way people think, talk, and act to their habits, languages, material as well as spiritual products and their common viewpoints.

Culture itself, which is both conservative and changeable, is a highly complex portrait of people. Having a united definition of culture in mind will help us find an easier way to approach the issue of corporate culture.

2.2.2. Definition of corporate culture In the past, the answer for the question Why do people work for a certain company instead of one another? might be the reasonable salary, the benefits or the high position this organization offers. However, in todays changing business environment, intangibilities are increasingly more crucial to employees. One tangible that seems to be most influential is corporate culture. So what is corporate culture? In the early seventies of the twentieth century, following the spectacular success of many Japanese corporations, American corporations started to pay attention to the underlying reason behind it. The term of corporate/organizational culture was used by organization research professors and managers to refer to one of the main reasons behind Japanese corporations worldwide success.

Many in-depth researches on composing parts as well as huge impact of corporate culture on the development of one enterprise were started to be carried out

at the beginning of the nineteenth decade. There are various definitions for the concepts of corporate culture. Louis Handy mentioned corporate culture in the book Understanding organizations as set of understandings or meanings shared by a group of people that are largely tacit among members and are clearly relevant and distinctive to the particular group which are also passed on to new members.

According to Donnelly et al. (1992) organizational culture refers to the impact on the environment resulting from group norms, values, philosophy, and informal activities. What this definition implies is that corporate culture is similar to culture in society as it has norms, values, beliefs and patterns of behavior. The definition also highlights that values and norms create culture.

Another definition comes from the International Labor Organization-I.L.O in 2005 that Corporate culture is the values, beliefs, norms, and traditions within an organization that influence the behavior of its members.

Nevertheless, the most general definition of corporate culture is given by a professor of organization research, Corporate culture is a pattern of shared basic assumptions that the group learned as it solved its problems of external adaptation and internal integration, that has worked well enough to be considered valid and, therefore, to be taught to new members as the correct ways you perceive, think, and feel in relation to those problems (Edgar H.Schein, 2004).

This thesis will take this definition as the standard definition of the study.

2.3. Corporate culture forming factors Although each enterprises special blend of elements develop a unique culture, a comparison of many enterprises identifies seven culture shaping factors (Plunkett and Attner, 1994). Each of these factors is in itself a complicated concept and none is independent of the others. Their dynamic interaction forms the corporate culture.

2.3.1. Key business processes

At the core of every corporation is the processes employees follow to gather information, make decisions, communicate, produce a product or service and manage work flow. The corporation is defined by how leaders communicate to employees, how they share decision making and how they structure the work flow. The corporate processes influence and are influenced by the other six factors that affect corporate culture.

2.3.2. Employees and other tangible assets A corporations resources such as employee population, plants and offices, equipment, tools, land, inventory and money, are used by the corporation to carry out its activities. These are the most visible and complex factors that influence culture because their quality and quantity determine much of the corporations cultu re and performance.

2.3.3. Formal arrangements

Another factor that affects corporate culture is the formal arrangements that organize tasks and individuals. These arrangements include the structure of the enterprise and its procedures, rules and specific mandated behaviors.

2.3.4. Dominant coalition A corporations culture is significantly affected by the goals, objectives, strategies, personal characteristics and interrelationships of its leaders, who form the dominant coalition. The leadership style of the corporation leaders determines how employees are treated and how they feel about themselves and their work.

2.3.5. The social system

The social system contributes norms and values to the corporate culture. Components like employees relationships, the grapevine and the informal organization are also parts of the social system. Because people are in the enterprise, their relationships define the enterprises character.

2.3.6. Technology

The principle technological processes and equipment that employees use also affect corporate culture. For example, the utilization of technology plays a role. The question to ask regarding technology is: Is a machine or process intended to productivity? The answer to this question sends a message about the value of employees in the enterprise.

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2.3.7. The external environment An enterprises external environment includes forces outside its boundaries that directly and indirectly interact with it (Bittel, 1989). These forces might be suppliers, markets, competitors, regulators, organized labor and other elements outside an enterprise. These forces affect the goals, resources and processes of an enterprise. Obviously these elements shape the enterprises culture in many ways. For instance, the government regulations can have a profound effect on corporate culture as they normally protect the enterprise from competition.

2.4. The impact of corporate culture on the development of a corporation

2.4.1. Creating the unique manner and attitude for each corporate

Corporate culture is contributed by many components and elements such as business philosophy, customs, rites, habits, trains, or even the legend of the founder, etc. All of these elements together contribute the style of an enterprise and help to distinguish this with others. This style or manner and attitude plays the role like air and water, having a huge effect on the daily operation of enterprises.

It is not difficult to recognize the manner and attitude of a successful corporation. This style makes the strong impression on the outsiders and is the pride of the corporations members. Lets take an example of the Walt Disney House. When entering this corporation, people can feel some very common values through the uniform, some conversational language used by Walt Disneys employees (such as a nice Mickey means You are doing well), common behaviors (always smile and polite with customers) and common feelings (very proud of doing for Walt Disney). 11

2.4.2. Creating the centripetal force for the whole company

A good corporate culture helps company attracting the talent and strengthening employees loyalty.

A person works not for money but for other needs. The system of needs of human, according to Maslow, 1943, is a triangle including five kinds of needs in ascending order: basic needs, safety needs, psychological needs, self actualization and peak experiences. These needs are objective different tones of each individual. Those needs create forces which impulse people to do but are not necessarily to be the ideals of their life.

From the model of A. Maslow, it can be seen that it is wrong if a company thinks that only high salary can help to attract and keep talent. An employee will be loyal and want to have a strong attachment to a company only when he/she has interest in working, feels the nicely air and has the chance to assert himself. In a quality corporate culture, all members have a clear awareness of their roles within overall, they work for common objectives.

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Figure 2.1 - Maslows hierarchy of needs

Common example

Organizational example

Achievemen t Statu s Friendship Stability Food

Working Challenges

Title Colleges Allowance Base wage

Source: Duong Thi Lieu, 2008

2.4.3. Fostering innovation and invention

Within a strong corporate culture, the high self-reliance will be emerged. Employees are encouraged to be apart and raise their own ideas. This encouragement helps employees proving their own creative abilities, as a base for R&D process of a company. On the other hand, the success of workers will create a diving force which helps to stick them with company for a longer time.

2.4.4. Creating the competitive advantage of the corporation

The competitiveness of an enterprise can be adjusted in four aspects: flexibility (the ability of satisfying different needs of customer), the quality of goods/services (technological characteristic, reliability, industrial design, etc.), the 13

responsible speed in the market (the period of time from ordering to supplying, speed of developing a new product, etc.), cost (lower than competitors).

Enterprises who want to gain these advantages have to get three important resources: human resources, capital and technology. The human resources involve directly adjusting, choosing and developing competitive advantages process of enterprise. Hence, this resource has the key meaning to the ability of gaining these advantages. Meanwhile, corporate culture has the first direct effect on each member of an enterprise, which plays an important role in proving human resource. So, indirectly, corporate culture can affect the competitive advantages of an enterprise in the market.

2.4.5. Attracting customers

Thanks to the manifestation of corporate culture in each level, corporate culture helps to create the unique organizational character. This also helps to improve the good image of company with customers, helps customers distinguish each company and establishes the customers loyal with companys goods and services.

2.5. Level of corporate culture

In general, corporate culture can be divided into two layers: surface layer and core layer. Surface layer includes such expressions as dress code, work environment, benefits, conversation, relationship, etc. The core layer consists of something cannot see or hear like values, invisible rules, attitude, benefit, assumptions, etc. However, according to Edgar H.Schein, a professor of organization research, in the book Organizational culture and leadership, corporate culture has three layers or three

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levels. They are observable artifacts, espoused values and basic underlying assumptions.

Figure 2.2 - Levels of Corporate Culture

Artifacts
Visible organizational structures and processes (hard to decipher)

Espoused Values
Strategies, goals, philosophies (espoused justifications)

Basic underlying assumptions Unconscious, taken-for-granted beliefs, perceptions, thoughts, and feeling (ultimate source of values and action)

Source: Edgar H.Schein, 2004

If we regard corporate culture concept as a metaphor, three levels of corporate culture can be described as an iceberg.

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Figure 2.3-Corporate culture-icebergs principle

Artifacts

Espoused Values

Basic underlying assumption

Source: Edgard H. Schein, 1999

Edgar H. Schein reveals that what we commonly call corporate culture merely the tip of the iceberg, an iceberg that mangers ignore at the peril of their companys future. Underneath lays the much-harder-to-grasp essence of the company, the learned, shared, tacit assumptions on which people base their daily behavior. In fact, only the floating part of an iceberg which accounts for about 10 to 20 percent of total weight can be seen. The other hidden part which accounts for roughly 80 to 90 percent does decide the direction of an iceberg. Lets imagine that the floating part is under the influence of the wind power while the hidden part is under the influence of underground flow. Thus, icebergs direction will be under the influence of underground flow regardless of wind power. Therefore, we can be

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clearly conscious of the importance of basic underlying assumptions to an enterprise. Details of three levels will be described as follows.

2.5.1. Observable artifacts

At the surface of corporate culture is the level of artifacts. This level includes all the phenomena that one sees, hears and feels when one encounters a new group with an unfamiliar culture. Artifacts include the visible product of an organization, such as the architecture of its physical of its environment, language, technology and products, its artistic creations, its styles (clothing, manners of address, emotional displays), myths and stories told about the organization, its publish of list of core values, its observable rituals and ceremonies and so on.

The most important point to be made about this level of the culture is that it is both easy to observe and very difficult to decipher. The Egyptians and the Mayans both built highly visible pyramids, but the meaning of pyramids in each culture was very different tombs in one, temples as well as tombs in the other. In other words, observers can describe what they see and feel, but cannot reconstruct from that alone what those things mean in the given group, or whether they even reflect important underlying assumptions. On the other hand, one school of thought argues that ones own response to physical artifacts such as buildings and office layouts can lead to the identification of major images and root metaphors that reflect the deepest level of the culture (Gagliardi, 1990). This kind of immediate insight would be especially relevant if the organization is experiencing in the same larger culture as the researcher. The problem is that symbols are ambiguous, and one can only test ones insight into what something may mean if one has also experienced the culture at the deeper levels of values and assumptions. 17

Based on this foundation, the artifact can be divided into the following categories:

Architecture, decoration, technology, product; Symbol, logo, brand name, slogan; Language and dress; Leadership style; Behavior within organization; Behavior toward customers; Ceremonies, stories of heroes, etc.

2.5.2. Espoused beliefs and values

The next level of corporate culture is about the values. Values define what an enterprise needs to do, what is right or wrong. There are two kinds of values. The first one is available values which exist objectively and unprompted takes shape in corporation. The other one is values which managers expect the corporation to own and develop step by step.

Espoused values are those principles or ideas the group articulates or announces publicly as what stand for or what they are trying to achieve. Values here include vision, mission, business philosophy and core values.

a. Vision

The first step when building objectives and priorities is to briefly identify what our corporation will be in one point of future time, or in other words, to build vision.

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Vision is the future status that an organization strives for. Vision shows us common purpose and united activities. Vision term refers to a spiritual picture, a prospective of the organization future. This term also refers to some time limited, or time horizon, in the short or middle run which normally is ten, twenty or fifty years for an influential vision.

Expected vision should be a picture of where an enterprise will be in one certain future day. It is a picture of what it takes to reach perfection, for instance, or for the best production method, or even of same quality production method when companys overall turnovers decrease to 10%.

It is necessary that corporation vision will be built first of all and informed to every member. Enterprises departments will take step specify objectives, methods and tools to achieve vision.

b. Mission

Mission explains why an enterprise exists including organization objectives, general activities, to which it serves and by what method.

Function of mission is to find ways and stages to achieve stated vision. As long as mission is identified, an enterprise can reach important goals as follows (1) decide human resource power; (2) avoid conflict between pursuing goals; (3) set up extensive border of responsibility and (4) support organization objectives. It is essential that organizations mission is designed for one certain stage of its life.

c. Business philosophy 19

Business philosophy is philosophic thoughts reflecting the business reality by experiencing, thinking and generalizing of business subjects and then used to instruct business activities of an organization. Business philosophy of an organization consists of three parts: mission and basic targets, operating method and specific business activity.

The roles of business philosophy are:

The core of corporate culture, creates the firm development method for corporate culture;

The oriental tool and base for strategic management; The medium for training, developing human resource and creating the specific working style for company.

d. Core values

Organization core values are purified essence and are commonly recognized. It has a great impact on individual norm, behavior, and attitude among company. It is also the foundation of vision. Core values are similar to rulers of norms of behaviors. Thanks to it, we are conscious of what consistent with companys mission and then reach vision. Core values are those will never change no matter how tough a company suffer, unless the enterprise goes bankruptcy or dissolution. Upon visiting Vietnam on January 10th, 2005, Brian Bacon who is the president of Oxford management Institute and former Chief Executive Officer (CEO) of Australian Coca-cola told an excellent example of core values for corporations. When taking a VND ten thousand paper-money in hand and ask, everybody will immediately tell us its face value of ten thousand Vietnam dongs. When we rub it 20

and ask, we will still receive the same answer. And even when we drop and beat it and ask, the result is still ten thousand Vietnamese dongs (VNDs). It simply represents unchangeable value of the paper-money, or core values of an enterprise, in any circumstance.

Values can be core values when: (1) there is united belief in whole organization; (2) it sets up norms and standard; (3) solid values to the very last thing; (4) there are myths, rites or stories supporting existence.

2.5.3. Basic underlying assumptions

The deepest level of culture consists of shared assumptions that provide a foundation for how people think about what happens in organizations. These assumptions represent beliefs about reality and human natures that are taken for granted and embedded in the way we understand and interpret daily life. Schein contends that underlying assumptions grow out if values, until they become taken for granted and drop out of awareness. Assumptions are the result of continually validated and reinforce values, they guide groups behavior, perceptions, thoughts, and feeling about a situation. They can deal with basic aspects of life through the correct way for the individual and group to relate at each other; relative importance of work, family, and self-development; the proper role of men and women; and the nature of the family. Therefore, shared assumptions are the most difficulty to study and to change because people may be even unaware of or unable to articulate the assumptions forming their deepest level of culture.

The basic underlying assumptions of an organization are thoughts, beliefs, awareness and emotion toward the internal and external environment. These are

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assumptions of human, quality, performing ability, customers, competitor and the role of invention. The manifestation of underlying assumptions is expressed through the conception of relationship between human and environment, conception of trust and reality, conception of human nature, of human activity and the nature of human relationship and the conception of time.

1. Conception of relationship between human and environment deals with the questions: What is our relationship with the environment? Do members believe they have the capacity to master the environment, are they supposed to live in harmony with it, or do they think they are controlled by it? 2. Conception of trust and reality are about the way to reveal the truth. What is real and how to determine the reality? Is truth revealed by external authority figures, or is the accuracy of information determined by a process of personal investigation and testing? 3. Conception of human nature give answers to such questions: defines what it means to be human and what human attributes are considered intrinsic or ultimate. Is human nature good, evil, or neutral? 4. Conception of human activity can be divided into three approaches: (1) a doing orientation where people are basically active and evaluated according to what they produce, (2) a being orientation where people are passive and unable to alter existing circumstances, and (3) a becoming orientation where people are continually developing and becoming an integrated whole. 5. Conception of human relationship: defines what is ultimately the right way for people to relate to each other, to distribute power and love? Is life cooperative or competitive; individualistic, group-collaborative, or

communal? What is the appropriate psychological contract between 22

employers and employees? Is authority ultimately based on traditional lineal authority, moral consensus, law, or charisma? What are the basic assumptions about how conflict should be resolved and how decisions should be made? 6. Conception of time: The shared assumptions that dene the basic concept of time in the group, how time is dened and measured, how many kinds of time there are, and the importance of time in the culture. 2.6. The role of leader key factor creating the corporate culture of organization

The leader is not the one who creates the values of corporate culture in an organization but more important, he/she is the one who transmit, maintain and change them into a guiding system to the whole company. It is import ant for enterprises which want to succeed to have the sound system of principles. These principles are the foundation for enterprises to set their line and actions. It is more important that this system needs to create the loyalty, the attachment within the organization and is absolutely followed. This requires the leader who creates the values system to keep in close touch with employees and assist them and at the same time, heighten these values. Beside the role of shaping and managing corporate cultures values, the leader has to change them according to the requirement of changing strategy in the case culture does not support or even be against with a new strategy. The new strategy is often dominated by market and competitors these external elements which organization can not control. Meanwhile, culture is created by the whole organization so changing culture to fit the strategy is more effective

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than changing strategy to fit culture. However, it takes time to erase all the existing culture because it has had a long time to shape and develop. In particularly, this change is really difficult with the founder. Although, when corporate culture is suitable with the new strategy, it will bring much more achievements for organization.

In general, if national culture tends to naturally affect the corporate culture, the leader plays a very active role in creating process of it. This means, the leader with his/her goal to help organization gain a good performance, by his/her managing behavior, this contributes to set a unique style for an organization, that is corporate culture.

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CHAPTER III - RESEARCH METHOLOGY

3.1. Overview

The purpose of this chapter is to measure the impact of corporate culture. Research approach is defined by the use of data collection, and selecting samples.

3.2. Research methodology

The methodology uses in this research that is qualitative research.

Qualitative research is a type of scientific research. In general terms, scientific research consists of an investigation that: seeks answers to a question systematically uses a predefined set of procedures to answer the question collects evidence produces findings that were not determined in advance produces findings that are applicable beyond the immediate boundaries of the study

During the 1970s and 1980s, qualitative research began to be used in other disciplines, and became a significant type of research in the field of education studies, social work studies, and many other fields. The goal of qualitative research is to gather a deep understanding of human behavior and the reasons that govern behavior. Qualitative methods also are investigating why and how of decision making. So the smaller samples are more focused than large samples. 25

The advantage of qualitative research is its ability to provide complex textual descriptions of how people experience a given research issue. It provides information about the human side of an issue that is, the often contradictory behaviors, beliefs, opinions, emotions, and relationships of individuals. When used along with quantitative methods, qualitative research can help us to interpret and better understand the complex reality of a given situation and the implications of quantitative data. Qualitative methods are also effective in identifying intangible factors, such as social norms, socioeconomic status, gender roles, ethnicity, and religion, whose role in the research issue may not be readily apparent. Qualitative research can help us to interpret and better understand the complex reality of a given situation.

3.3. Data collection

This thesis is written based on both primary and secondary data. Most of the materials are extracted from the relevant books, articles, and documents in both English and Vietnamese. The data, concepts, theories are collected to analyze the situation of VietinBank, Hoan Kiem Branch to answer these three sub questions.

The approach of qualitative research in this project is documentation, direct observation and interview. Documentation is used as secondary source of information in forms of books, articles and websites to collect information of theories relevant for this thesis, background information about the organization and the standards of its corporate culture. Direct observation is appropriate for collecting data on naturally occurring behaviors in their usual contexts. For this study, direct observation is the main primary method to help the writer collect the information of corporate culture of the chosen objective. Beside, interview is optimal for collecting 26

data on individuals personal histories, perspectives, and experiences, particularly when sensitive topics are being explored. In this study, the interview provides the added information for the research of the real situation and helps the writer to make suitable recommendations.

3.4. Sampling

The sample population is the ViettinBank and its staffs. Currently, VietinBank has 138 branches, 188 transaction offices, 258 points of sales and 191 savings offices, 742 Automatic Telling Machines (ATMs), throughout 56 provinces and cities, centered more in big cities such as Hanoi (12 branches and 02 transaction centers), Ho Chi Minh City (17 branches and 01 transaction center), industrial zones, trading and economic parks, densely-populated areas. However, due to the far distance, and the time limitation, the author was able to conduct the study at one its Branch: Hoan Kiem Branch. The author will make an observation of the entire building of the company and interview 10 staff members (five veteran employees, four young employees and one deputy manager of a transaction office) who are randomly selected from different departments in the company to get information for the thesis.

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CHAPTER IV - RESEARCH ANALYSIS AND RECOMMENDATION

4.1. Overview

This chapter includes four main parts: Part one is an overview of Vietinbank, Hoan Kiem Branch. Part two is a brief view on of the corporate culture of VietinBank in general. Part three is that concentrates on analyzing the manifestations of corporate culture in VietinBank, Hoan Kiem Branch using the frame developed by Edgar H.Schein. Part four provides some recommendations to further develop corporate culture in Vietinbank, Hoan Kiem Branch. The main objective of this chapter provides suggestions for further development of corporate culture in VietinBank, Hoan Kiem Branch. At first, this chapter will give some suggestions to VietinBank in general and then to VietinBank, Hoan Kiem Branch in particular. Although there are many factors determining the development process of corporate culture in an organization, with VietinBank, Hoan Kiem Branch, the author mainly focuses on the leadership style, the values system and the relation with customers.

4.2. An overview of Vietinbank, Hoan Kiem Branch

4.2.1. Introduction of Vietinbank

Vietnam Joint Stock Commercial Bank for Industry and Trade (VietinBank) was established in 1988 after being separated from the State Bank of Vietnam. It is one of the four largest State-owned commercial banks of Vietnam, VietinBanks total assets account for over 20 percent of the market share of the whole Vietnamese banking system. The year 2009 marked a very important point in the development

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process of VietinBank. In June, 2009, VietinBank officially became a joint-venture commercial bank. This brought about both new challenges and success for the Bank.

VietinBank has developed an operation network comprising of one head office; three transaction centers; three subsidiaries, three administrative units, two representative offices, 138 branches, 188 transaction offices, 258 points of sales and 191 savings offices, 742 Automatic Telling Machines (ATMs), throughout 56 provinces and cities, centered more in big cities such as Hanoi (12 branches and 02 transaction centers), Ho Chi Minh City (17 branches and 01 transaction center), industrial zones, trading and economic parks, densely-populated areas. Vietinbanks traditional services as well as other modern and valued added services have reached nation-wide users. This has enabled Vietinbank to diversify its products suitable to each segment of customers. Besides, it is diversified with three independent accounting subsidiaries: VietinBank Leasing Company, VietinBank Securities Company, Ltd., VietinBank Asset Management Company and two non-profit making units: VietinBank Information Technology Center and VietinBank Training Center.

VietinBank is also the founder of some Financial Credit Institutions such as Saigon Bank for Commerce and Industry; Indovina Bank (the first joint-venture bank in Vietnam); Vietnam International Leasing Company VILC (the first financial leasing company in Vietnam) and Vietinbank Insurance Company Ltd. This bank has also being the official members of Vietnams Banker Association; Asian Bankers Association; Society for Worldwide Interbank Financial Telecommunications (SWIFT) and the Visa International Services Association.

The Bank has signed eight framework-credit Agreements with foreign countries including Belgium, Germany, South Korea, Switzerland and established 29

correspondent relationship with 600 large banks of 50 countries and territories all over the world. And one more thing, this bank is the first bank in Vietnam to apply modern technology and e-commerce in its banking operations.

Products and services of VietinBank are very diversified, including card services (VietinBank E-partner, Cremium Visa, etc), oversees remittance, securities, import-export payment, guarantee, derivative products, opening account, loan, leasing, money transfer, insurance and saving.

4.2.2. Overview of Vietinbank, Hoan Kiem Branch

VietinBank, Hoan Kiem Branch was founded in 1979 as a branch of Ha Noi State Bank and operated with two functions: state management and currency trading. On 26th March, 1998, Decree No 53/HDDBT was promulgated which created a premise for innovating process of Banking Industry. Based on it, the operation of this branch was moved from subsidization mechanism to market mechanism and this Bank operates with only one function: currency trading.

Nowadays, VietinBank, Hoan Kiem Branch is one of the first level branches of VietinBank. This Bank is located in No37, Hng B Street, Hoan Kiem Distric, Ha Noi. Currently, this Branch has seven departments, three transaction offices and four savings deposit sections. The number of employees now is 110 people.

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Figure 4.1 - Organizational structure of VietinBank, Hoan Kiem Branch

Director

Deputy Director

Chief of accounting departmen t

Administration sector

Specialized departments

Transaction offices

Savings deposit sections

Accounting department

Internal inspection department

Individual customer department

Administration department

Organizational customer department

Computing department

Risk managing department

MoneyBudget department

Source: VietinBank, Hoan Kiem Branch, 2010

VietinBank, Hoan Kiem Branch caries out theses following missions:

Mobilizing capital: exploiting and receiving sight deposits, term deposits, payable deposit of all organizations and individuals of all economic sectors inside and outside country in VND and foreign currencies; issuing 31

certificate of deposit, bond, bill of exchange and performing other forms of mobilizing as the regulation of VietinBank;

Lending in short term, middle term and long term in VND and foreign currencies;

Guiding customer in lending investment projects; Trading foreign exchange operations when is allowed by Chairman of VietinBank;

Trading services: collecting and spending cash, budgeting, payment cards, etc.

Business accounting and distributing income as the regulation of VietinBank; Examining, auditing internally; Building business plan suitable with local social-economic developing plan.

4.3. An overview of VietinBanks corporate culture

Nowadays, developing business culture is an urgent requirement of any bank in integration process. Culture of a corporation is not to be the surface manifestation like dressing, offices decoration, language but the moral standard, the leadership style, the behavior within company, etc. These elements create the prestige and brand name for commercial banks in general and for VietinBank in particular. Regarding corporate culture, people often think to 3P philosophy: peopleproduct-profit. According to the importance of three elements, each enterprise might have different ways of behavior in business. With VietinBank, besides concentrating on profit, the quality and the diversity of services, human resource is the first concern. VietinBank always tries to care about the material and spiritual life of employees; respect and encourage the initiation and creation of staffs. Hence, 32

increasing profit likes an inevitable result, more and more customer has strong attachment to VietinBank, at once, and the numbers of new customers are also bigger and bigger. Therefore, talking about corporate culture of VietinBank is talking about morality and behavior of VietinBank. During the process of international business integration, corporate culture will be the key factor which helps VietinBank overcome the challenges and is the key for sustainable development of the Bank.

In recent period of time, corporate culture is cared by both the leaders and staff members of VietinBank. They want to build a value system of the truth-the good-the beauty and for the sustainable development target of the whole system. Hence, from moving to a new kind of form, VietinBank has published a handbook of corporate culture which carries out the values VietinBank wants itself and its staffs to achieve. This handbook includes mission, vision, and philosophy in business, moral rules, rules of behavior, etc. of VietinBank. This book likes a guideline for all members of VietinBank in process of building and developing corporate culture of this Bank.

4.4. Levels and manifestations of corporate culture in VietinBank, Hoan Kiem Branch.

VietinBank, Hoan kiem Branch is part of VietinBank. Hence, corporate culture of this Branch will be formed basing on the cultural standard of VietinBank. However, different branches will develop different corporate cultures. The differences present in the manifestations of corporate culture in each branch. Those differences themselves are one of the factors creating the level of success of each branch in the whole system.

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In this part, the researcher will describe the corporate culture of VietinBank, Hoan Kiem Branch. Much of this description rests on own direct observation as a trainee in this Branch in June, 2009 and January and February 2010. Also, more information is proved by some employees who have worked for this branch for a long time and from the interviews 10 staff members (five veteran staffs, four young staffs and one deputy manager of a transaction office). Besides, information has been collected from the handbook of corporate culture of VietinBank (March, 2009). To describe the banks culture, the framework developed by Edgar Schein (1994) will be used. First, the writer will point out the visible culture-artifacts. Then espoused values will be introduced and finally, the writer will try to determine the basic underlying assumptions that explain and shape the artifacts and the espoused belief of the branch.

4.4.1. Artifact level and its manifestations

According to Edgar Schein, artifacts include all the phenomena that one sees, hears and feels when one encounters a new group with an unfamiliar culture. Hence, the artifacts of VietinBank, Hoan Kiem Branch will be classified in the following categories: 4.4.1.1. Offices architecture and decoration

The Branch office is separated into three parts but each part is bonded by the lobbies. The middle part includes client accounts section on the first floor and all of the directors rooms on the second floor. This part can be seen as the centre of branch. Client accounts section is the place gathering almost transactions with customers of the branch so the middle location is the most suitable one. One of the 34

saving deposits sections and transaction offices are in the same location with the head office of branch. The two sections are in the front, where customers can easily pass by and carry out transactions. An ATM boot with two machines is placed in the front, beside transaction office. This serves for the fast and comfortable needs of customers. The branchs budget is put in the back in order to ensure the safety. These departments dealing mostly with the secure information of branch are also located at the back or on the third floor.

The decoration of transaction office, client account section or other departments strictly follows the standards of VietinBank. In detail, in places which carry out the direct transactions with customers every day, the branch arranges space which is suitable with the frequent number of customers. Chairs are put for customers when they wait in busy time. While waiting, they can look around and see the slogan; the philosophy in business of VietinBank is hung on the wall. Besides, the information about products and services of VietinBank or other marketing programs of VietinBank or branch is put orderly on the wall or on the small bookshelf in attempt to attract customers and bring them the good impression of branch. However, one more thing is not follow the standard of VietinBank is the branch has not owned the traditional room. All kinds of certificates are hanged on the wall of meeting room or in the directors room.

The decoration of each department in the back office often depends on the space and the role of each one. Though, usually each officer is provided a suitable space with a desk and all the stuffs serving for his/her work. Each officer doesnt have his/her owned cabin. This brings the opened and comfortable working environment for people. One more thing, the job in a bank relies much on document,

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so a throughout space makes faster for passing document. There also have air conditioners in every room. Door and window are made by glass. The hot summer will be cooler with glass door and air conditioner; the winter will be warmer because of hold-back wind effect of glass. Yet, members of each room put a small altar in their rooms. In the ritual ceremonies, together, they can show their sincerity. Especially on Tet holiday, members of each room always prepare for the altar following the Vietnamese tradition. Through this, they all have a wish that in a new year, their department will work more effective and also their branch will get more and more benefit and success.

4.4.1.2. Brand name, logo, and slogan

Logo and brand name are among the visible factors showing the culture not only of Hoan Kiem branch but also of all the branches in the VietinBanks branch system. It is the culture of VietinBank in general. However, the writer still wants to mention here because they are one of the factors attracting customers to the branch. Here, the logo of VietinBank will be described both for itself and the brand name. VietinBanks logo consists of two parts: wordmark and symbol/graphic mark. Figure 4.2 VietinBanks Logo

Source: VietinBanks website, 2009

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The word part is also the brand name of the Bank: VietinBank and the symbol part is a hollow circle.

Firstly, the word part is the abridge name from an English name of the Bank: Vietnam Bank for Industry and Trade: Vie (tnam)-Bank In (dustry and)-T (rade). This seems to be simple but in Vietnamese, Vietin contains a beautiful meaning. It implicates the trust or the prestige of both the country and Vietnamese people. This might be a purposed suggestion or just a coincidence. Whatever it is, it still takes a deep effect to the customers curiousness and helps to attract them. The wonderful thing is that the meaning of symbolic term enables both in English and Vietnamese. This is really a subtle arrangement never ever seen in any organization. Hence, it is brilliant when putting the whole name VietinBank into the logo. It is not only simple and meaningful but also easy to recognize. The mix of colors of red and blue has its own purpose. Red is color of heart and blue is the color of brain. The first part Vietin is in red showing the love with our country simultaneous emphasizing the fire of enthusiasm of VietinBankers. The part Bank is stuck on blue-traditional color of VietinBank. It shows the belief, the hope of ones who are dedicated to the development of the bank. In the fierce competition situation now, if there is no one with big hands, big brain, who do not dare to think do; it is really difficult to achieve a brilliant career. Beside the words part, the symbol part (emblem) contains the meaningful significance. It has the form of an old penny. Using penny as a symbol of a bank is not a new way; however, the value does not end with this. The penny has two parts, the blue part is above and red part is below. Blue part presents the sky, red part symbolizes the ground. Sky and ground dissolve in one. According to the Eastern

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conception, there is nothing having the perfect harmony like sky and ground. Furthermore, the logo presents an image of a bright early morning with rising sunrise and bigger moving orbit which emphasizes the harmonic move and follow between Sky and Ground in the universe. Together with the old penny symbol, the metaphorical means illustrate the spirit of VietinBank with the trusted image of a sunrise and the effect in the move of the Earth.

The brand name VietinBank has its own characters. These are effect, trust and modern. Effect here implies the effect in the operations and services of the Bank with the aim to provide the optimal benefits for VietinBanks customers. Trust is the consistence, stability of finance and the high level of trust. The last character modern refers to the thought of always moving forward of the Bank. In order to emphasize more on the effect, VietinBank creates the slogan: Nang gia tri cuoc song. This slogan shows the conscience of VietinBank in supporting and ensuring the success of customers as well as the effort which helps to build a beautiful and meaningful life.

4.4.1.3. Language and style

Dress code
In this branch, formal clothes for male and female staff are divided into two seasons: summer and winter. These formal clothes are both traditional and fashionable in order to create a professional style for staffs and make good impression on customers when coming to transact at branch.

In summer, dress for female staff is white shirt and black skirt. The length of skirt is cross or over knee. Formal clothes for male staff are also white shirt and dark 38

trousers. In winter, male staff will wear traditional suit with dark color, together with white shirt and cravats. Their shoes are also in dark color. Dress for female staff in winter will be a dark-color suit: vest and skirt. They can wear bright color clothes inside. Especially, on these very cold days, all staff can wear their own warm dress outside but still look tidy and formal. Furthermore, on such special days such as anniversaries, female staff will wear Ao dai with blue color-traditional color of VietinBank.

Each employee is given a bank badge with the logo of VietinBank to carry on the front of dress. Nameplate of each staff is also required during working hours or during the time of transaction. These requirements are to help customers to know who VietinBanks employees are when they come to the branch and know the name of the one whom they transact with. The badge is also effective in expressing the image of VietinBank in comparison with other banks and somehow, the nameplate will help newcomers to remember the name of all colleges.

Language
According to principles of the working environment, no slang can be used in conversation in this branch. When at work, they are serious and use simple, easy to understand words. They try to avoid words which are easy to misunderstand because they know that one mistake can lead to huge loss. Beside work, they talk about other matters. It might be sharing work and life experience, or they discuss of some current news. Sometimes, they have divergence on one matter but they have never used rude words. In any cases, they always try to show the respect for others. If they do not share common ideas at end, they will end the discussion and change topics. One more thing worth mentioning here is the young is often polite with the 39

old. If a young person says something not quite polite, everyone will warn her delicately.

The language uses in different circumstances and with different people is really cared. For example, in the lunch time or when seeing in the yard, people often smile and talk joyfully to clear away the stress of work. Even though, some leaders and managers are very funny people with joking stories. The language uses between colleges often is words showing the comfort but is very polite words if the listeners are employers or the older people.

4.4.1.4. Leadership Style

According to Edgar Schein, the leader is the one who has the most influential impact on the corporate culture of an organization. A strong corporate culture can make the best success. It is true for all organizations in general and for VietinBank, Hoan Kiem branch in particular.

Since 1988, VietinBank, Hoan Kiem Branch has led by four directors. Depending on the leaders personality and character, the leadership style varies. According to the writers observation together with ideas of some staffs who has more than 20 years experiences in the branch, there is one common feature among most banks leaders: powerful. This is affected by the owned form of VietinBank and the development of society. VietinBank was founded as a State Bank which was owned by the government. So, monarchism has embedded on the mind of leaders. This idea causes many bad effects to the branch. The branch had a very difficult period. Over years, the branch operated without profit, the percent of bad loan up to

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70-80%, the lives of staffs were really difficult. Staffs almost had no belief on the leaders.

However, day by day, step by step, this idea has been changing, especially in the new development of society. The later leaders are more opened minded and have the better way of leading. During her internship in this branch, the writer heard a lot about Mr. Long, the current leader at that time who retired in March 2010. Mrs. Van, a staff of Accounting Department said that Mr. Long is seen to be the best leader ever. When he was leader, he brought the new wind for members of the branch. He was the one who helped branch overcome the hard time. He changed the old way of leadership, brought about more democracy for the staffs. Thanks to it, staffs had the confidence and tried their best to devote to the branch.

From March 2010, VietinBank, Hoan Kiem branch has a new leader. Every member of the branch puts great belief in this leader. They hope the new one can do even better than the former one.

4.4.1.5. Behavior within the branch

The behavior within the branch is manifested through communication between managers - staffs and among colleges.

Firstly, the communication of managers to staffs will be mentioned. Managers always show their fair treatment with all staffs. Whoever achieves good results will be rewarded and who has mistake will be warned or punished depending on the severity of the mistakes. During the observation, the writer had a chance to join in a monthly meeting of the accounting department. In this meeting, the manager had a straight forward discussion on the mistakes of staffs in this month. Some 41

accidental mistakes which did not cause any harm were passed but the serious mistakes were analyzed and lessons are drawn. On the other hand, she also pointed the good things. By this way, no one could claim or complain about anything. Some managers of the branch have shown their willingness to listen to staffs ideas and try to talk with about the difficulties, the obstacles of job. However, only a few managers can do this. During the observation, some employees complained about their managers who did not want to listen to their ideas, managers just tried to impose their ideas on employees. Though, one good thing is that, managers of the branch care a lot about life of their staffs. When a staff encounters a family problem, managers will try to arrange time and work to visit the staffs family. Managers will create the favorable conditions for this one to overcome their personal problems.

In return, almost all staffs of this branch have positive attitude toward managers. They always show their respect for their superiors. The respect is shown by the way of greeting and the language is used. Staffs use the formal words along with a smile when greeting managers. When having some problem needed to exchange with managers, every one try to talk in a brief way. Lengthy conversations are often avoided. Besides, employees of branch always try to complete the entire divided task. They even spend the extra time to finish task.

The third one is the communication among colleges. In general, the relationship among staffs is close. There are many close friends in the branch. By being close together, staffs will understand each other more. From that, working together becomes easy with them and helps them to get better effect. At work, everyone shows the respect for listener while discussing. If they need to exchange

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views, they often meet and talk the face to face to each other. Internal telephone often is used to handle some kinds of quick tasks or problems.

4.4.1.6. Behavior toward customers Communication of branchs staffs to customers here mainly refers to communication between tellers and customers. The reason is tellers are the ones who play the main role in transacting with customers. The behavior of tellers will be the most important element in creating a good or bad impression on customers.

Culture during transaction in VietinBank, Hoan Kiem branch is to bring convenience to customers in order to keep them loyal, to make them feel comfortable while using the banks products and services. This is the purpose that all tellers and others always keep in mind. Firstly, culture is shown as transaction procedures. Customers will save their time when they do banking transaction. Too much waiting time due to complicated procedures can really annoys customers. They can get tired, unpleasant and do not want to transact at the branch anymore. Gradually, this can decrease the number of customers to the branch. So, modernization of VietinBanks banking system - from doors transaction to one-door transaction- is one of the keys to get the customers satisfaction. Modernization helps shorten the waiting time when customers come to transact at the branch. Customers can choose who to transact with instead of being appointed as in the past. Besides, tellers of the branch always introduce all the necessary steps which customers need to follow. If any step takes a longer time to do, it will be stated to the customer at first. Secondly, culture is reflected in the style of communication of the tellers. During the observation period of the writer at VietinBank, Hoan Kiem branch, the author was much impressed by the way the tellers serve customers. Tellers always 43

share the tips of behaving with customer together. The core thing is teller has to serve customers wholeheartedly by speak lightly, always smiling and fast serving. They never show unpleasing attitude when customers ask too many questions. They are always patient, answer clearly all the questions of the King. Furthermore, tellers are really good at how and what to consult customers. Tellers have good understanding of what products and service the branch offers and how to fully satisfy customers demand. By doing so, the branch can attract new customers and enhance the existing customers loyalty. The way of communication of the tellers is one of the important factors helping in increase the number of customers. In fact, the last three years saw a remarkable increase in the number of customers to the branch. Moreover, by holding the customer meeting once a year, a survey is always conducted to get the ideas of customers about the quality of serving at the branch. Up to now, there has never been any complains.

Beside tellers, other staffs of the branch always show their respects with customers. The security man always gently in guiding customers parking. If customers have any questions of the places of departments, he often shows them with a smile. Other employees also keep in their mind that customers are the King. So like tellers, they also try to serve customers wholeheartedly any time a customer needs help.

4.4.2. Espoused beliefs and values

VietinBank mission
To be the top financial-banking group of Vietnam, operate versatility, provide products and services as international standard, in order to improve the quality of live 44

VietinBank vision
VietinBank is a top modern, effective financial-banking Group inside and outside the country

Being part of VietinBank, all the operations of the branch are for the vision, mission of VietinBank. Business philosophy of the branch also follows that of VietinBank.

The mission and vision of VietinBank is to be the top financial banking group in Vietnam. To achieve it, every part of VietinBank has to try its best including VietinBank, Hoan Kiem Branch. The effort of the branch is clearly seen in the way to improve its competitiveness in comparison with other branches of other banks in the same area-Hoan Kiem District. To do that, the branch is trying to improve the quality of services. Services quality is of greatest importance to help a bank attract more customers. Relying on marketing strategies as well as enhancing the quality of staffs, the image of the branch under the eyes of customers is increasingly improved. The number of customers visiting the branch is increasing significantly. As a result, the branch has gained the trust from many local organizations.

VietinBank business philosophy 1. To follow through safe, effective, sustainable, international standard; 2. To unite, cooperate, share and have the social responsibility; 3. The prosperity of customers is the success of VietinBank.
The philosophy of VietinBank is also the philosophy in business of Hoan Kiem Branch.

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To follow through safe, effective, sustainable, international standard: the branch always tries to maintain safety in all activities. Safety here is for both customers and the branch. The effectiveness is represented in the satisfaction and success of customers every time they come to transact at the branch. The sustainability is shown in the way the branch minimizes its bad debts and increase the benefits. This will help to make healthy the financial situation, bring about the sustainability for the branch. International standard is the one which the whole system of VietinBank has been pursuing. Applying and updating frequently the new banking technology is one of the ways to reach the international standard.

To unite, cooperate, share and have the social responsibility: the branch has been trying to cooperate more and more with the local organizations, sharing with customers the financial difficulty as much as it can. Simultaneously, the branch is actively joining every social activities held by local administration.

That the prosperity of customers is the success of VietinBank is always in the mind of all staffs of Hoan Kiem branch. They understand that, only when customers are fully satisfied, success will then come to the bank.

VietinBank core values


1. All activities are for the customers; 2. Active, creative, professional, wholehearted, transparent and modern; 3. The employees have the right to work and devote themselves to the bankthe right to be paid by the results and the individual contributions efficiency-the right to be complimented the best employee.

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According to the observation of the writer, beside the core values of VietinBank in general, there are some natural values which are created by people of VietinBank, Hoan Kiem Branch in a long time. They are: Enthusiasm: once undertaking a task, any employees of the branch will try his/her best to carry it out with the sense of enthusiasm, wholeheartedness to bring the satisfaction to customers. Customer orientation: all tasks are supposed to satisfy all customers of the branch whether they are small customers or big customers. Morality: it is the morality among human, between people with their job and toward customers. Every member of the branch always considers morality the top criteria that a banker needs to have and to live with it. Time is money: the task of a bank is done by day so everyone tries to finish his or her task on time. Time is also one of the concerns which staffs of branch are really pay attention on while transacting with customers.

Besides, there are some values that leaders of the branch expected from their staffs: Dynamic: in the new situation, this is the value which many leaders want from their employees. This is not except with the leaders of the branch. And leaders must be the pioneer, they themselves must be self-starters. Professional: this is value that every member of the branch is pursuing. They have noticed that this is an important thing which help the branch develop. Harmony: the leaders of the branch wants all the members always balance between work and entertainment, between individual and group benefits.

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4.4.3. The basic underlying assumption

VietinBank, Hoan Kiem Branchs current basic underlying assumptions


The current basic underlying assumptions of the branch include natural values which are implicitly acknowledged as follows.

Enthusiasm: it is commonly agreed that when transacting with customers, the top concern is how to fully satisfy customers needs. The satisfaction of customers is the key to success of the branch.

Customer orientation: live in all banks in over the world, customers are the King. Thus, it is necessary for the branchs employees to first of all identify what customers need and want and what the branch can do to fulfill those wants and needs.

Morality: it is believed that morality is of utmost important quality a person needs to have if his/her wants to work in a bank. As a banker, a person needs to keep a pure morality.

Time is money: if one person is late, the whole system will be late. So time is really valued.

Six basic underlying assumptions of VietinBank, Hoan Kiem Branch:

Conception of relationship between human and environment: the relationship


between people of branch and the working environment is a two-way relationship. People are the ones who make better the environment and the natures of environment make people have to live and behave as principle. In general, members of the branch live in harmony in the working environment, reciprocal affect, develop together. 48

Conception of trust and reality: trust and reality in this branch is evaluated based on the morality standard and base on the real information from work. The subjective evaluation is not allowed in this branch.

Conception of human nature: people of the branch all believe that those who work in the bank must be those who have enough required background and good morality. Everyone has his/her own ability and he/she can bring into full play the ability if he is entrusted the right task.

Conception of human activity: currently, the approach of the branch is a becoming orientation where people are continually developing and becoming an integrated whole.

Conception of human relationship: the branch tries to create every possible condition to ensure harmony between individual development and group benefits. Step by step, democracy and free speech has been used to mutually find out the best solution to any problem.

Conception of time: for branchs staff, time is money, as mentioned above, therefore everyone values time. People value their time very much. They consider time as the most valuable asset that once lost never can be found again. That is why people get familiar to the thought that being late is one of the first things to avoid.

4.5. Some suggestions to VietinBank in general

The development of corporate culture of VietinBank, Hoan Kiem Branch relies mainly on the corporate culture of VietinBank. Being in transition from state owned to private owned bank, VietinBanks corporate culture will have to be changed and improved to capitalize on a new direction. In this part, the writer will 49

give some recommendations will be given for VietinBank in general to adjust its corporate culture.

4.5.1. Identifying the right way of development

As a result of integration and the increasing independent among nations, there has been an increase in recognition of different cultures around the world. Besides, due to the fierce competition which each bank has been facing, banks have to adopt more holistic strategic approaches to their business in order to survive and grow in the highly competitive market. Therefore, the awareness of corporate culture and identification of the right way of its development is really crucial.

Perhaps, it seems to be very easy to realize that culture is far-reaching ramifications for all members of VietinBank and even those outside its boundaries. An understanding of its culture is critical if the bank and its human resources want to thrive. The reason is that culture in an organization or in banking sector affects its members in many ways such as working hours per day, per week; the availability of options such as flexible time and telecommuting, the way people interact with each other in the workplace, how people dress at work, benefits to employees, office space, training and professional development opportunities, perks-just everything related to the working time.

A right way of development here means the specific direction of the bank but it is still in the line with the rules of development of its industry and of the whole country. To plan an effective strategy and the right way of corporate culture development in banking sector in Vietnam, it is vital to assess the current situation, especially in globalization and WTO accession now. Integration creates the

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opportunities for Vietnamese banking sector to learn and approach leadership style from other foreign banks. From that, it will improve the fair competition among small, medium and large banks in the market. Customers will exchange their consumption habits culture and know more about new things in corporate culture in those foreign banks.

In practice, since its transition from state to private ownership, VietinBank has paid more attention to its corporate culture. The proof is the handbook of VietinBank corporate culture issued in March, 2009. This handbook provides information about corporate culture of the bank in the first two levels, artifact and espoused values. The handbook serves as a frame for all branches and other parts of VietinBank to develop their own culture. However, this handbook is quite vague. At first, it was difficult to apply what is written in the handbook immediately in the real situation of VietinBank. Therefore, VietinBank later on arranged classes for staffs of all branches to learn and understand the role of corporate culture. Though, it is not enough. In the future, VietinBank should launch a pilot model of corporate culture in the head office and in one or some of its branches. It will be a very typical example for other parts to see and learn.

Besides, the Management Committee of VietinBank should change the leadership style to be suitable to the new situation, which is different from that in a state-owned bank. VietinBank can study this from the big and successful banks all over the world or even the foreign banks operating in Vietnam. The way they recruit new employees, the way leaders communicate and spread the passion on employees, etc. are things really worthy to learn.

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On the other hand, VietinBank should set their own objective and strategy for each development period. By always sharing the difficulties with all staffs, and in turn receiving constructive ideas from them, VietinBank will create the closer relationship with employees. Members of VietinBank will feel that they have their own values; their voice is heard and they will have the feeling that they have selfcontrol at work. From that, they will have more and more creative ideas contributing to the development of VietinBank.

4.5.2. Improving the influence of core values inside and outside the whole system

The system of core values is an important part in business philosophy of all enterprises in general and in the banking sector in particular. A long with the leadership style, they will establish the action plan to perform the mission of an organization. This system answers such questions like how the organization performs its mission and achieves its targets. Which resources and media will be used? Therefore, the system of core values is an important content which is seen to be the spirit of an organization, and direct all the operation of the organization. Large organizations in the world or in Vietnam both have the values system which show the vision and philosophy of the leaders and is published in easy-to-see place in the main websites or in the publications of these organizations. These values rarely change and is imparted in association with the existence of the organization itself and its products. These values are impregnated in all staffs and are the guideline for all policies and strategies of an enterprise. VietinBanks core values are:

All activities are for the customers;

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Active, creative, professional, wholehearted, transparent and modern; The employees have the right to work and devote themselves to the

bank-the right to be paid by the results and the individual contributions efficiencythe right to be complimented the best employee.

The core values of VietinBank are quite long although these values refer to the banks purpose, the main employees characteristics and the main rights of human resource. Therefore, with members of the bank, it could be easy to understand and remember. Day by day, these core values need to be popularized widely not only inside the boundary of the bank but also the outside, especially to the customers of VietinBank-who mainly create the success for VietinBank. The values should impregnate with all staffs and create the positive impact on the way of thinking and communicating of VietinBanks members in all activities inside and outside the boundary.

It is, therefore, suggested that the bank:

Build the specific customer - orientated strategies and spread them to both VietinBanks members and customers;

Offer the appropriate incentives which encourage the creativeness of the employees;

Always update technology, adapt the working environment to the more modern direction to create the better environment for employees.

4.6. Some suggestions to VietinBank, Hoan Kiem Branch 4.6.1. Leadership style as the decisive element in building and developing corporate culture

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At any time and in any cases, leaders always play the most important role and in shaping corporate culture of an organization.

VietinBank, Hoan Kiem Branch has got a new leader. A new leader means a new leadership style. However, the most concerning problem is about the policies of the branch. The leader needs to show her positive role in defining the policies, strategies and common targets for the branch in each period based on the regulations of VietinBank. The new development policies should be launched to suit the current trend of the market.

In order to carry out the proposed policies, the leader is not the one who forces staffs, but she herself needs to be the pioneer in performing these policies anywhere, at anytime. For example, the leader should be the one who wear the branchs uniform first. That will create close relations between employers and employees. From the small things to the big things, if the leader is the pioneer, she can set a good example and from which she can encourage employees, makes them respect and follow. Therefore, the branch can gain the achievements in performing their strategies.

Banking environment requires the high principles of morality. Hence, leaders need to be the ones who have the good impression of personality and morality on staffs. When a problem arises in the branch, the decisions from a good impressive leader will get more respect than from the one who has not really good impression in the employees eyes. In additionally, a good leader will be able to find out best solution and avoid serious mistakes.

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According to the observation and the interview, it seems that staffs of the branch still do not feel free in discussing their ideas with the leader. The leadership is the main reason. In the new situation, the way of leading needs to be changed. From the senior mangers to junior managers and the leaders of teams need to change the way of communication with staffs: caring more about employees working environment, listening to and sharing their problems at work, receiving their contributions, etc. Managers should also exchange their ideas with them. The problems of management need to be shared with the whole organization to let every one get a deeper understanding of the challenges in managing and to the managers. From that, staffs will deeply sympathize with the leaders; they themselves will keep changing their working style to best fulfill the requirements. If they feel something not right, they can share with the leaders directly to help the leaders understand the real situation and make change in time.

4.6.2. Building the specific value system

As mentioned above, the value system is really important for an enterprise. For VietinBank, Hoan Kiem Branch, based on the value system of VietinBank, this branch should develop its specific value system. These values need to be clear, easy to remember and need to eliminate the obsolete thoughts.

Based on the real situation of VietinBank, Hoan Kiem Branch, some suggested are made as follows:

Discipline: At work, discipline is important. The reason why Japanese can succeed is they value high discipline at work. So, if the branch wants to gain more achievements, strict discipline is of great concern. Discipline here is the

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rules and regulations which are promulgated by VietinBank and by the branch itself. For example, the rule is staffs have to wear uniform every working day. However, this is not done usually in some transactions locations which are far away from the head quarter. The manager of the transaction will be the one who should be responsible for any mistake caused by her/his employees. The method is to dock the wage of this manager. By this way, he/she will add more responsibility on warning his/her direct employees. Conscience: This is the first thing that all bankers need to have when working for a bank. The work requires people to be very careful with the number and figures. Only one small mistake leads to serious consequence. Besides, when communicating with customers, if bankers are not conscientious, they can make the customers unsatisfied. Once customers are not fully satisfied, they will not come back again to the branch. Solidarity: In any organization, solidarity is the strength. Currently, staffs of VietinBank, Hoan Kiem Branch have not shown the high solidarity. Therefore, the Management Committee of the branch should hold some internal activities to help people close together. Once they are closer, they can easily understand each other and the solidarity will be built up step by step. Being active and creative: These are now the dull values in VietinBank, Hoan Kiem Branch. In a working environment where the number of old people accounts for about 70%, it is easy to understand. However, if the branch wants to further develop in the future and improve its competitiveness, it is impossible to lack these two criteria. To have these, the first thing the branch has to do is to change the employees structure. The branch should set the new and higher requirements for its employees. From that, the branch can

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weed out those do not meet the standard requirements, for example those without any university degree. At the same time, the branch can hold some small competitions which create the chance for staffs to be creative. The topic could be marketing ideas, for example. Sharing environment: As mentioned above, members of the branch do not want to share their ideas or even contribute their ideas to solve problems. This is partly because of the leadership style. They share their ideas but leaders do not want to listen to or they contribute straightly about something caused by the leadership and then they get the bad impression on the leaders. Through time, staffs will not contribute their ideas. To change that, leaders of the branch need to change themselves first and then, show their willingness to listen to their employees. So employees feel they are valued and then in return they will be more dedicated to the branchs development. 4.6.3. Changing the physical working environment In Hoan Kiem District, VietinBank, Hoan Kiem Branch is one of the biggest and most prestigious banks. However, many other banks have recently made their presence felt in this area. Because of this area is the centre of Ha Noi City. In order to keep pace with the development of the District, the branch should prepare a new plan to improve its image. Besides improving the quality, the metal part should be enhanced, too. The plan of building a new office of branch in a new location is necessary.

While the time of building a project and asking for the finance from the Head Office of VietinBank, in the current location, the branch also should modernize the decoration. It will be suitable with the new development strategy of VietinBank and it helps to improve the image of the branch on customers. A modern and active 57

decoration will bring a better impression of serving quality. On the other hand, a modern working office definitely can make staffs feel comfortable, enhance their passion on work. However, changes still have to follow the standards of VietinBank and in accordance with the style, philosophy and the culture of VietinBank.

4.6.4. Building up a close relationship between customers and branch 4.6.4.1. Customer is King

Image 4.1: Customer is King

The ultimate purpose of any economic organization is profit maximization. Customers are those who bring profit to an organization. In the market now, the focus of all organizations has gradually shifted from customers satisfaction to customers delight. Globalization and integration cause fierce competition which reminds every business that Customer is the King. Therefore, the branch should reconsider the way it treats the King who is of great importance to enhance the productivity and the profit of the branch through banking services and banks

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products. The answer is: good quality and easy procedure together with the philosophy of caring.

First of all, the branch should realize that customer focus is very vital. Surveys and customers feedbacks can be conducted to find out customers gratification which is really useful in keeping the existing and attracting new customers for the branch. However, the real consideration about customer satisfaction could be drawn only when the same customers come back to the branch and carry out some more business. With customers often doing direct transactions, their longer stay with the bank could increase the retention percentages. Customers will deepen the relationship with the branch. Customers will recommend banks products or services to others. Thanks to them, the branch will surely get more revenues and profits. Thus, in order to bring the branch in a powerful growth trajectory, when the branch further develops, it will have more opportunities to adapt, train and achieve customers satisfaction. However, customers satisfaction at the transaction time is not the only element. The ability of making customers satisfied after transaction is also very important. Hence, paying more attention on building a good customer care service is really possible.

The branch can use the application of software in IT to help customers. For example, the application of customer relationship management provides customer care services for a smoother customer transaction. Customer support services are also provided by the application which takes care of the needs and queries of the clients. The investment on Customer call centre is still a good idea to improve the quality of customer care and guarantee the best services for all customers in line with the view point: Customer is King.

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Successful companies always listen to customers and provide the products that customers want, not what the company wants to sell. Perhaps the most basic tool of customer service is to listen to what they are saying or demanding. Often, customers tend to visit companies/representatives who listen to them and help them in fulfilling their needs. Listening to customers is an art, and much training and focus should be given to develop this art. These tips can help the branch in that. Whenever an employee speaks with a customer, try to keep him comfortable and relaxed. Also remember they are in need of his support and service, not for sharing the tension. Concentrate on what they are saying and always look for possibilities to offer helps on anything they need. Try to understand the customers personality, their profession, their goals, their social status, their needs, tastes and also their way of thinking.

Moreover, gift giving is also a good idea to show respect to customers. It is a good way to retain customers loyalty, and of course, naturally, it will make customers help the branch doing the oral advertisement. However, one business cannot afford to deliver gifts to every customer for a long time. Therefore, the branch should do good planning. Branch should give gifts on special occasions such as on customers birthdays, on Tet holidays or when the branchs sales drop considerably.

All businessmen know the importance of customer service for their business growth. But most of them fail to deliver best services to customers, because of many different reasons. Here are some tips which the branch can use for their better customer service practice. First, find and hire employees who have already been trained about customer service and have good communication skills. There are many people who want to serve others and are ready to serve at any time. Second, inform

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employees of the branchs position, growth prospect, growth plans, products details, advantages, etc., so that they can better serve customers. Make the customer service an impressive experience with customers, they will return whenever they want to do any banking transactions. Always raise customers concern and customer service in business meetings, make it an important business agenda, so everyone in the branch will be ready for better customer service.

4.6.4.2. PR and face-to-face communication with customers

Beside customer cares or call centre service, PR and face to face communication will closer the relation between the branch and customers.

Public relations (PR) are the management of internal and external communication of an organization to create and maintain a positive image. PR may involve heightening success, downplaying failures, announcing changes, and many other activities. However, ethical PR practitioners can also convince bank to work more closely with its various publics and form win-win relationships.

PR activities aim to:

Contact with customers (press conference, customer conference); Listen and receive feedbacks (customers comment about banks products or services);

Exchange and show ideas (about the impacts of products or services to consumers);

Build image and retain good reputation (support for the students scholarships).

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Realizing the aims and meaning of PR activities, the branch should have a specific strategy, such as advertising on local TV or radio. It is also important to remember that there are many PR companies which specialize in PR activities effectively in Vietnam, but they are almost foreignowned. The branch can take advantage of the experience and draw many useful lessons about PR activities from those companies. Or instead, the branch can hire them to implement PR strategies if budget is enough.

Face - to - face communication is also considered as part of PR activities. This will help the branch receive feedbacks flexibly and directly from its customers. As mentioned above, face to - face communication is conducted by a customer conference or interview on TV and radio talk with audiences or customers that the clients think and wish to reach. It is also important to note that information from direct conversations is better and more precise than this from other secondary methods.

4.6.5. Learning from other organizations

Learning here does not mean copying from other organizations. The branch can study some typical types of corporate culture of huge banks in the world or that of Vietnamese banks or even though study from other branches of VietinBank. The best way is to learn from reality, then look back at their development to know what they did, finally, draw the own conclusions or lessons for the branch. From these lessons, together with Vietnamese culture, the branch can adjust its own culture to better suit Vietnamese people.

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Besides learning from other banks, the branch can learn from the other branches in the same system. For example, VietinBank, Hai Ba Trung branch is a successful branch in Ha Noi. The profit of this branch is always higher than other VietinBanks branches in Ha Noi. VietinBank, Hoan Kiem Branch can learn from them, from the leadership style to the customer strategies, selective learning will be the key for the development of VietinBank, Hoan Kiem Branch.

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CHAPTER V CONCLUSION

5.1. Conclusion

The revolution of science and technology leads to many enormous changes, especially to the economic sector. It affects all the aspects of enterprises, banks and other sectors of the economy when adapting to a new situation. These influences require an innovation in most units including companies, banks or multinational corporations in the Vietnamese market. The innovation process must be firstly carried out in the corporate culture of each organization, from leadership style of managers, working style of staffs to professional environment. In the other words, corporate culture should be paid more attention to during the innovation and integration of most businesses.

Corporate culture consists of many elements such as dress code, leadership style, office decoration or organizational behavior, etc. In this research, the concept of corporate culture is limited to VietinBank, Hoan Kiem Branch. Each element of corporate 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 VietinBank, Hoan Kiem Branch in particular and the banking sector in general, corporate culture is becoming one of the vital strategies to promote banking operations. Therefore, building a significant corporate culture is very useful to enhance and improve all business activities.

As a final conclusion, this study focuses on corporate culture and its manifestations in VietinBank, Hoan Kiem Branch. The writer hopes that this

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research will contribute some valuable information to the development of corporate culture of this branch.

5.2. Limitation of research

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 may differ. However, errors on this research were the assumption of low rates.

Researchers might encounter financial problems during research phase.

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REFERENCES

ENGLISH

Books

1. Donnelly, J.H., Gibson, J.L. and Ivancevich, J.M. (1992) Fundamentals of management. Boston: Irwin

2. Edgard H. Schein. (2004). Corporate culture and leadership (3th ed.). Jossey Bass

3. Edgard H. Schein. (1999). The corporate culture survival guide. Jossey Bass 4. Geert Hofstede. (1984). Communication between culture (4th ed.). Larry A. Samovar and Richard E. Porter, Wadsworth/Thomson Learning, Belmont, CA, 2001

5. Michael R. Czinkota, Iikka A.Ronkainen, Michael H.Moffett. (2001). International Business (6th ed.)

6. Plunkett, W.A. and Attner, R.F. (1994). Introduction to management. (5th ed.) Belmont: Wadsworth 7. Taylor, Edward. 1924 [1871]. Primitive culture. 2 vols. (7th ed.). New York: Brentano's

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2. Rao, B.P. and Swaminathan, V. (1995), Uneasy alliances: cultural uncompatability o rculture shock? Retrieved from the World Wide Web: http://www.amiltd.com/AllianceCulture.html

3. Robuck, Mike, (2008), Customer experience is King, Retrieved from the World Wide Web: http://www.cedmagazine.com/

4. James Neil, 5 July 2006, Qualitative research I, Retrieved from the World Wide Web: http://wilderdom.com/OEcourses/PROFLIT/Class6Qualitative1.htm

5. Dr. C. George Boeree, Qualitative methods, Retrieved from World World Web: http://webspace.ship.edu/cgboer/genpsyqualmeth.html

Journal Articles 1. 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. 2. Desphande, R. and F.E. Webster, Jr. 1989, Organizational Culture and Marketing: Defining the Research Agenda, Journal of marketing. 3. The concept of Marketing mix, the journal of Advertising Research, June 1964. 4. Philipsburg. 2005. Steering group agrees to adopt UNESCO definition of culture, Journal of Daily Herald.

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VIETNAMESE

Books 1. PGS.TS. Dng Th Liu. (2008). Bi ging vn ha kinh doanh. Nh xut bn i hc Kinh t quc dn.

Websites

1. http://www.vietinbank.vn/web/home/en/index.html

2. http://www.vietinbank.vn/web/home/vn/research/09/090113_vanhoa.html

3. http://www.vietinbank.vn/web/home/vn/research/09/090521.html

4. http://www.vietinbank.vn/web/home/vn/research/09/090316.html

5. http://www.vietinbank.vn/web/home/vn/research/09/090113_vanhoa.html

Publications 1. S tay Vn ha doanh nghip VietinBank, thng 3, 2009 2. Gii thiu H thng Bn sc Thng Hiu VietinBank, 2009

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