Organizational culture at commercial banks in Quang Ngai province

ramework of organizational culture at commercial banks, contributing to enriching and clarifying the concept of organizational culture at commercial banks. At the same time, the thesis identifies the main manifestations of organizational culture at commercial banks, including two groups: the group of tangible cultural expression and the group of intangible cultural expression. Secondly, the thesis's research results show that there are differences in organizational culture between two groups of state-owned commercial banks and private commercial banks. For the state-owned commercial banks group, the type of organizational culture tends to study the attributes of market culture and hierarchical culture, while the type of organizational 6 culture of joint-stock commercial banks tends to balance between four properties. Thirdly, the thesis has proposed a model to study the factors affecting organizational culture at commercial banks including the scales: Bank leaders, Bank staff, Job Features, Customers, Market Competition, Integration process. Fourth, the research results of the thesis have identified the factors that affect the organizational culture at commercial banks. Factors affecting the organizational culture at commercial banks include Staff (Leader and Staff), Job Features, Market Competition, Customers and Integration process. However, these factors have different influences and levels of influence on different ownership groups of banks. Fifth, comparing the results of quantitative research on the factors affecting the development of organizational culture in two groups of state and private commercial banks in Quang Ngai province, showing the difference in the composition of the influencing factors and Influence level of factors. Sixthly, the dissertation gave the views and proposed solutions based on scientific and applicability to increase the expression and development of organizational culture at commercial banks in Quang Ngai province and can extend the application to other banks in general. 6. Theoretical and practical meanings of the thesis Theoretically, the thesis systemizes and unifies the concepts of organizational culture at commercial banks, provides a scientific basis in the study of organizational culture, summarizes the related concepts and presenting the concept of organizational culture at commercial banks, identifying the main expression groups of organizational culture at commercial banks and building a model to study the factors affecting organizational culture of commercial bank in Quang Ngai province. Therefore, the thesis's research results will contribute to enriching and diversifying the theoretical system of organizational culture, especially in 7 the field of commercial banks. At the same time, the thesis has formed a complete analytical framework of organizational culture at commercial banks to be able to deploy other research in the future. Practically, the thesis analyzes the situation of the expression and type of organizational culture in commercial banks in Quang Ngai and the influencing factors, based on which proposed groups of solutions are possible. Application for private and state-owned commercial bank branch groups in Quang Ngai province. These solutions can be used as a scientific basis for the strategy of changing or developing organizational culture at Vietnamese commercial banks, contributing to creating sustainable competitiveness for banks in the past international integration process. 7. Research structure In addition to the Introduction, Conclusion, References and Appendix, the thesis is divided into 4 chapters: Chapter 1: Overview of research on the organizational culture at commercial banks. Chapter 2: Theoretical for organizational culture at commercial banks. Chapter 3: Actual situation of organizational culture at commercial banks in Quang Ngai province. Chapter 4: Some solutions to develop organizational culture at commercial banks in Quang Ngai province. Chapter 1 OVERVIEW OF THE RESEARCH ON THE ORGANIZATIONAL CULTURE AT COMMERCIAL BANKS 1.1. Overview of abroad researches on the organizational culture at commercial banks 1.1.1. The study of organizational culture at commercial banks Up to now, organizational culture in general and culture in commercial banks in particular do not have a fixed and widely accepted concept. Instead, there exist many meanings and implications of 8 organizational culture in organizational behavior, economics and financial theories. By examining various documents and research works in the world, the author realized that there are approaches to organizational culture in commercial banks mainly including: aspects, basic expressions of organizational culture and the roles and impacts of organizational culture on other factors (performance, shareholder value, cohesion ...) of commercial banks. 1.1.2. Organizational culture types at commercial banks When researching on the types of organizational culture, it is impossible not to mention typical studies such as: - “Diagnosing and changing the organizational culture” of authors Cameron and Quinn. Based on the Competitive Value Framework - CFV, they have developed an Enterprise Culture Assessment Tool that distinguishes four types of visual culture: The Clan Culture, The Adhocracy Culture, The Hierarchy Culture and The Market Culture. - “Toward a Theory of Organizational Culture and Effectiveness” of the authors Denison and Mishra proposed a research framework consisting of four types of organizational culture defined including adaptability, mission, consistent participation and culture. - “Corporate culture in banking” of Anjan Thakor uses the CVF framework for research. Start by observing organizations that carry out many activities to create value, and these activities will shape the bank's corporate culture in one of four or the correlation of The following categories are: Cooperative Culture (Family), Control Culture (Decentralized), Competition Culture (Market) and Creative Culture. 1.2. Overview of the research works of local authors on the organizational culture at commercial banks In Vietnam, theoretical and empirical studies on the concept, types and impacts of organizational culture are researched by many authors. Through the research, analysis and synthesis of research projects related to 9 organizational culture at commercial banks, there are approaches synthesized into the following research directions:  First approach: Building cultural measurement methods.  Second approach: Assessing the expression and type of organizational culture in typical commercial banks.  Third approach: Assessing the impact of organizational culture on internal factors of commercial banks. 1.3. General assessment of the research situation 1.3.1. Inheritance of previous studies In theory, in general, the review of foreign studies helps the thesis to inherit the theoretical basis, along with rich perspectives and approaches on organizational culture at commercial banks. The main contents of the studies include clarifying the concept of organizational culture in companies or commercial banks, the constituent elements of organizational culture, the measurement model of organizational culture, the role and impact of organizational culture ... Regarding research methods, the methods used in the study of organizational culture at commercial banks are quite diverse, including qualitative and quantitative methods, and a combination of qualitative and qualitative method. Most of the works use analysis, synthesis, and comparison methods to conduct research. Some authors use econometric analysis, running regression models to draw conclusions. The sociological survey method was used by the authors in order to reach out to the people and collect the necessary facts and evidence. 1.3.2. Research gaps Therefore, the thesis will follow the direction of clarifying the organizational culture concept of commercial banks only, applying appropriate research models to assess the identity of organizational culture at commercial banks current and expected, especially comparing the differences in organizational culture between the two groups of state-owned and private state-owned commercial banks. Not only stopping at studying 10 the actual expression and type of organizational culture at commercial banks in Quang Ngai province, the author further analyzes and explores factors affecting organizational culture at commercial banks, thereby finding problems and propose solutions for organizational culture development at commercial banks in Quang Ngai province in order to improve competitive advantage and sustainable development. Chapter 2 THEORETICAL FOR ORGANIZATIONAL CULTURE AT COMMERCIAL BANKS 2.1. Some theoretical issues about organizational culture at commercial banks 2.1.1. Organizational culture Based on previous studies, organizational culture in this thesis is construed as follows: “Organizational culture is all tangible and intangible values selected, created and used by enterprises expression in the course of business activities, forming the characteristics of such enterprise ”. 2.1.2. Organizational culture at banking 2.1.2.1. Operating characteristics of commercial banks 2.1.2.2. Definition of organizational culture at commercial banks The thesis proposed the definition: “Organizational culture at commercial banks is all tangible and intangible values that the bank selects, creates, uses and manifests in the course of business activities , creating a unique character of the bank”. 2.1.3. Expression of organizational culture at commercial banks 2.1.2.1. Tangible culture expressions - Architectural characteristics of the workplace - The external logo of the bank - System of regulations of conduct, standards of behavior - Bank etiquette 2.1.2.2. Intangible culture expressions - Business philosophy, Mission, Strategic vision - Development history and cultural traditions 11 - Trust, ideals, attitudes and feelings of employees towards the bank 2.2. Types of organizational culture at commercial banks The author proposes the main types of organizational culture at banking , including: 2.2.1. Family culture 2.2.2. Hierarchical culture 2.2.3. Creative culture 2.2.4. Market culture Among the above types of organizational culture , family culture and market culture are the two types of customer-oriented orientation, in line with the nature of the business of credit products of commercial banks. Because these two types focus on improving the morale and performance of employees, while optimizing products to provide customers with the best service. However, in order to develop and develop organizational culture appropriately and effectively, bank leaders should consider and evaluate the factors affecting organizational culture . 2.3. Factors affecting organizational culture development at commercial banks Combining the views and opinions of previous research, it can be seen that there are many factors including internal and external environment affecting the formation and development of organizational culture at commercial banks. 2.3.1. Internal factors 2.3.1.1. Human in the bank - Bank Leader - Bank Staff 2.3.1.2. Job features 2.3.2. External factors 2.3.2.1. Competition 2.3.2.2. Customer 2.3.2.3. Integration 12 2.3.2.4. Social culture, ethnic culture, regional culture 2.4. Framework of organizational culture at commercial banks in Quang Ngai On the theoretical basis of organizational culture at commercial banks, PhD student has built an analytical framework of organizational culture at commercial banks in Quang Ngai, including: (i) Expressions of organizational culture at commercial banks (ii) Type of organizational culture at commercial banks (iii) Factors affecting organizational culture at commercial banks Picture 1. Framework of organizational culture at commercial banks in Quang Ngai Source: Author’s analysis 2.4.1. Research content on the expression of organizational culture at commercial banks and the system of evaluation criteria Tangible factors: - Workplace: such as building architecture, office design and office decoration such as headquarters, branches, transaction points, ATM ... - External logo: including a brand identity toolkit and printed items. These are Slogan, Logo, Staff Uniforms and stationery. - Regulations: is a set of rules, business processes, rules of conduct, specific phrases, common language agreed in the form of a written statement or a common statement in the bank. 13 - Etiquette: including regular cultural and sporting activities to enhance solidarity and exchange among bank members, Traditional songs, Mass organizations operating in banks (Trade Unions, Youth Group).. Intangible factors: - The common values are agreed: That is the Bank's Mission (showing the reason for existence, mode of operation, customers), Business Strategy (Mission direction, development roadmap, action plan), Philosophy business logic. - Cultural tradition: expressed through specific criteria such as anecdotes about the process of operation (the period of strong development, the period of overcoming the crisis) with the important contributors, activities to remember and Honoring the bank's proud values. - Feelings of employee: bank staff have confidence in the development of the bank in the future, proud to be a member of the bank, feel the difference or specific characteristics of the organization, aware of the role of the individual contributions in the overall development of the bank. 2.4.2. Research content on type of organizational culture at commercial banks in Quang Ngai province The questionnaire that diagnoses the type of organizational culture and identifies the organizational culture model is built entirely using the OCAI tool. In order to determine the current organizational culture model of the Bank compared to the organizational culture model of the Bank, the author uses 6 evaluation factors, including: - Dominant characteristics - Organizational leadership - Management of employees - Organizational glue - Strategic emphasis - Criteria of success 2.4.3. Research content on factors influencing organizational culture at commercial banks in Quang Ngai province 14 Based on the research question mentioned in the introduction and proposed research model, the research hypothesis includes: H1: Banking leadership influences organizational culture at commercial banks in Quang Ngai province. H2: Bank staff influences organizational culture at commercial banks in Quang Ngai province. H3: Characteristics of banking business affecting organizational culture at commercial banks in Quang Ngai province. H4: Customers use credit products and services that affect organizational culture at commercial banks in Quang Ngai province. H5: Competitive characteristics in banking business that affect organizational culture at commercial banks in Quang Ngai province. H6: The process of economic integration affects the organizational culture at commercial banks in Quang Ngai province. Picture 2. The proposed model measures factors influencing organizational culture at commercial banks in Quang Ngai province Source: Author’s analysis 15 Chapter 3 CURRENT SITUATION OF ORGANIZATIONAL CULTURE AT COMMERCIAL BANKS IN QUANG NGAI PROVINCE 3.1. Introduction of commercial banks in Quang Ngai province 3.2. Results of organizational culture expression evaluation at commercial banks in Quang Ngai province 3.2.1. The expression evaluation at state-owned commercial banks in Quang Ngai province 3.2.1.1. The tangible expression The tangible elements include the brand identity system, which are the most concentrated construction and development by state-owned commercial banks in Quang Ngai province. Through the development stages of the bank, these factors have been formed and adjusted to suit the current business situation. Traditional emulation activities and event programs are also invested by banks in both scale and quality, in order to contribute to the process of building and developing brands as well as organizational culture. In particular, state-owned commercial banks have developed organizational culture by developing clear rules that are expressed in the form of Organizational Culture Handbook. In addition, office architectural features and office decoration are not really effective in expressing cultural characteristics of state-owned commercial banks in Quang Ngai province. 3.2.1.2. The intangible expression The results show that the common values of the state-owned commercial banks are interested in building and developing, reaching a relatively high rating from bank staff. The staff reflects the future belief and development of the bank and the pride of being a member of the bank. However, the missions, business philosophy and development strategies do not seem to be clear enough and highlight the roles and duties of the members of the bank. 16 3.2.2. The expression evaluation at private commercial banks in Quang Ngai province 3.2.2.1. The tangible expression Private commercial banks in Quang Ngai province also focus on cultural development under the main tangible expressions such as the system of professional rules and conduct communication, brand identification tools, style activities emulation movement at the bank. 3.2.2.2. The intangible expression The common values of commercial banks in Quang Ngai province are concerned about the business philosophy, mission and core values systems, as these factors have been agreed from the central headquarters to the local branch. The unified value system in banks often manifests itself in the form of business philosophy, mission, core values and vision. On the contrary, these banks have not paid much attention to the awareness of the cultural traditions and history of the organization's development, as well as the employees' awareness of their role in the future development of the bank. 3.3. Results of organizational culture type evaluation at commercial banks in Quang Ngai province 3.3.1. Type of organizational culture at state-owned commercial banks in Quang Ngai province In general, the current organizational culture model of state-owned commercial joint stock commercial banks is more in favor of market culture (C = 26,4375), hierarchical culture (D = 26,3185) than Family Culture and Creative Culture. In the future, the employees in this group expect the organizational culture model to be developed towards the family culture (from 24,2173 to 29,3661) - this is an attribute highest expected among the 4 attributes of the organizational culture model, and the attribute of Creative culture is also expected to increase (from 22,7560 to 25,5863); sharply decreasing Market culture and Hierarchical culture. 17 3.3.2. Type of organizational culture at private commercial banks in Quang Ngai province The survey results show that, in the present, the organizational culture model of private commercial banks tends to balance between the four attributes, the level of difference between the attributes is not high. And with employees' expectations for future organizational culture models, the model will shift towards increasing the score of Family Culture (up from 25,1870 to 29,7703) and Creative Culture (increase from 24,0064 to 25,2564); reducing Market and Hierarchical Culture. 3.3.3. Comparison of organizational culture type between two groups of state-owned and private commercial banks For state-owned joint stock commercial banks, the model tends to study the attributes of market culture and hierarchical culture, while the organizational culture model of private commercial banks tends to balance between the four attributes. For the attribute of Family culture and Creative culture, the average score in the group of private commercial banks is higher. 3.4. Research results of factors influencing organizational culture at commercial banks in Quang Ngai province Research results for commercial banks groups are as follows: 3.4.1. State-owned commercial banks 3.4.1.1. Quantitative research results After eliminating the unreliable indicators, the official scale left 23 observed variables corresponding to 6 factors assumed to be influential. The official scale is built and restructured based on observed variables with sufficient remaining reliability. Applying the method of rotation of factors, the results show that all these variables are significant (values> 0.5) and are extracted into 6 specific groups of factors. In the adjusted model, the dependent variable is Organizational Culture (VH). The independent variables are: 18 - Staffs (CBNV); - Job Feature (CV); - Competition (CT); - Customer (KH); - Integration process (HN). With the analysis results, it can be affirmed that these variables have significance in the model and the regression model of VH is set as follows: VHi = 1,107 + 0,592CBNVi + 0,143KHi + 0,040HNi + ɛi The linear regression model is made with a number of assumptions and the model only really makes sense when these assumptions are guaranteed. 3.4.1.2. Discussion Based on the results of quantitative research, there are 3 factors that directly affect organizational culture at state-owned commercial banks in Quang Ngai province. They are Staff, Customers and Integration Process. Among the above three factors, the staff staff including leaders and employees of state-owned commercial banks has the most positive influence on the organizational culture of the unit with a regression coefficient of 0.592; The customer factor has the regression coefficient of 0.143 and the integration process has the lowest regression coefficient of 0.040. This is also the answer to this content research goal. 3.4.2. Private commercial banks 3.4.2.1. Quantitative research results In the study of the influencing factors proposed in Chapter 2, there are 6 factors (corresponding to 24 indicators) that are assumed to influence organizational culture at private commercial banks. The Cronbach’s Alpha coefficient obtained from the survey results for these scales generally ranges from 0,613 to 0,807. This proves that this scale has good reliability. After the removal of the correlation coefficient was too low, the official scale left 21 observed variables corresponding to 6 factors assumed to be 19 influential. The official scale is built and restructured based on observed variables with sufficient remaining reliability. Multiple linear regression analysis was performed with 6 independent variables, including: Staff (NV), Customer (KH); Leadership (LD); Job Feature (CV); Integration process (HN); The competition(CT) and dependent variable are Organizational Culture (VH). With the results of the analysis, it can be confirmed that these variables have significance in the model and the regression model of the culture of private commercial banks is established as follows: VHi = 0,727 + 0,286NVi + 0,215KHi + 0,118LDi + 0,098CTi + 0,080CVi + ɛi The linear regression model is made with a number of assumptions and the model only really makes sense when these assumptions are guaranteed. 3.4.2.2. Discussion Based on the results of quantitative research, there are 5 factors that directly affect organizational culture at private commercial banks in Quang Ngai province. They are Staff, Customers, Leader, Competition and Job Features. In which, Staff is the most influential factor in organizational culture at private commercial banks with regression coefficient of 0,286; next is Customer factor with regression coefficient of 0,215; Leader factors (0,111); Competition factor (0,098) and job feature factor (0,080). 3.4.3. Comparison of factors influencing organizational culture between two groups of state-owned and private commercial banks Firstly, differences in composition of influencing factors. For state- owned commercial banks, Organizational culture is directly influenced by the factors Staff (including leaders and employees), Customers and Integration. Organizational culture at private commercial banks is influenced by factors such as Staff, Customers, Leadership, Competition Enviro