ASB 4831 Organisations and People

Management Report
VIETNAM EPORT IMPORT BAN!
An e"al#ation o$ its strateg%& str#'t#re&
'#lt#re and leaders(ip
Prepared )%
Huzairi bin Zainal Abidin 500355515
Khanh Viet Ngo 500364921
Linh Phuong Ha 5003650!
Bangor B#siness S'(ool
Bangor *ni"ersit%
+
nd
,e'em)er +-13
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E.e'#ti"e S#mmar%
As Vietnams banking sector is expected to grow remarkably during the
next few years following the changing landscape of its economy, it is
timely for Vietnam Eximbank (Eximbank) to examine itself and strategizes
to take adantage of the opportunities that the market has to o!er in
order to keep its position at the leading edge of the competition with other
banks"

#his report will ealuate Eximbank present business strategy,
organisational structure, culture and leadership practices" $here possible,
some recommendations for alignment and improement are presented for
the management to consider"
%n completing this report, data were gathered mainly from publicly
aailable sources i"e" through the banks annual reports, prospectus and
o&cial website" A reiew and synthesis of releant literatures were also
done to come up with a credible analysis"
Key fndings:
'airly clear oerall Vision that links well with its business goals
Appropriate organizational structure that supports its corporate
strategy
Eidence of (rocess )ulture, and *ole culture that appreciates
the young and educated employees
(romotion of $ork hard+ play hard culture through non,o&cial
work actiities
-uitable leadership traits and practices by the top management
Recommendations:
)onsider enhancing further the banks corporate strategy
%ncrease .$ork hard+ play hard culture/ while maintaining role
culture and process culture
(ut in place succession planning and opportunities for the young
and talented to make greater contribution towards organizations
success"
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Table of Contents
E.e'#ti"e S#mmar%//////////////////////////////////////////////////////////////////////////////////////////////////////////////// 1
0ist o$ 1ig#res///////////////////////////////////////////////////////////////////////////////////////////////////////////////////////// +
Appendi'es///////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////// +
1/- Introd#'tion/////////////////////////////////////////////////////////////////////////////////////////////////////////////////////// 3
1/1 Terms o$ re$eren'e//////////////////////////////////////////////////////////////////////////////////////////////////////// 3
1/+ O"er"ie2 o$ OB///////////////////////////////////////////////////////////////////////////////////////////////////////////// 3
1/3 Ba'3gro#nd/////////////////////////////////////////////////////////////////////////////////////////////////////////////////// 4
+/- Met(ods///////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////// 4
+/1 ,ata 'olle'tion met(ods////////////////////////////////////////////////////////////////////////////////////////////// 4
+/+ Iss#es and '(allenges////////////////////////////////////////////////////////////////////////////////////////////////// 4
+/3 Anal%sis///////////////////////////////////////////////////////////////////////////////////////////////////////////////////////// 4
3/- Res#lts/////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////// 5
3/1 O"er"ie2 o$ 'orporate strateg% and )#siness goals/////////////////////////////////////////////////5
3/+ E.planation o$ organi6ational str#'t#re/////////////////////////////////////////////////////////////////////8
3/3 Anal%sis o$ organi6ational '#lt#re//////////////////////////////////////////////////////////////////////////////8
3/4 7riti'al e"al#ation o$ 0eaders(ip pra'ti'es//////////////////////////////////////////////////////////////1-
4/- 7on'l#sions 8 Re'ommendations//////////////////////////////////////////////////////////////////////////////// 1+
4/1 7on'l#sions//////////////////////////////////////////////////////////////////////////////////////////////////////////////// 1+
4/+ Re'ommendations////////////////////////////////////////////////////////////////////////////////////////////////////// 1+
Re$eren'es//////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////// 13
0ist o$ 1ig#res
1ig#re 19 Relations(ip )et2een Organi6ation Settings& Emplo%ee:s Be(a"io#r 8
Organi6ational Per$orman'e////////////////////////////////////////////////////////////////////////////////////////////////// 3
1ig#re +9 B#ilding )lo'3s o$ Organi6ation Setting///////////////////////////////////////////////////////////////4
1ig#re 39 T(e Strateg% ,e"elopment Pro'ess Model//////////////////////////////////////////////////////////5
1ig#re 49 Personnel str#'t#re in terms o$ age//////////////////////////////////////////////////////////////////////;
1ig#re 49 Personnel str#'t#re in terms o$ ed#'ation//////////////////////////////////////////////////////////;
Appendi'es
Appendi. A Vietnam E.im)an3 Organi6ation Str#'t#re/////////////////////////////////////////////////14
Appendi. B < Vietnam E.im)an3 1inan'ial =ig(lig(ts 8 E.im)an3:s 7(airman////////////15
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1/- Introd#'tion
As Vietnams banking sector is expected to grow remarkably during the next few years (Ho
and Baxter, 2!!", it is timely for Vietnam #ximbank (#ximbank" to examine itself and
strategi$es to take ad%antage of the opportunities that the market has to offer in order to keep
its position at the leading edge of the competition with other banks&

1.1 Terms of reference
'his report aims to(
) pro%ide an o%er%iew of #ximbanks *orporate +trategy and Business ,oals
) explain the #ximbanks o%erall structure
) analyse the #ximbank culture(s"
) e%aluate its leadership
) make recommendations for impro%ement
'he study is limited to corporate aspect related to the organi$ation of people in #ximbank and
based on publicly a%ailable data gathered about the bank& -ther non.people oriented
organi$ation strategy or structure are beyond this scope of study&
,i%en the time, data a%ailability and words count constraints, the report will at best analyse
the basic components of the bank without getting further into the nitty.gritty details and
internally exclusi%e information which may result different findings and outcomes&
1.2 Overview of OB
'he main moti%ation for studying -rgani$ational Beha%iour (-B" is centred on the theory that
organi$ation may impro%e its performance and effecti%eness by understanding how people
especially employees beha%e in an /organi$ation setting and then respond to it accordingly& 0t
is argued that people beha%e differently according to the en%ironment they are in and as
people are the main resource of organi$ation, understanding and application of -B is crucial
for effecti%e human resource management which would lead to better organi$ational
performance&
Figure 1: Relationship between Organization Settings, Employees
Behaviour & Organizational er!orman"e
So#r'e9 +uggestion by authors based on literature re%iews
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1ithin the abo%e context, it is generally accepted that /organi$ation setting is typically
characteri$ed by its corporate strategy, organi$ational structure, culture and leadership&
Figure #: Buil$ing blo"%s o! Organization Setting
So#r'e9 +uggestion by authors based on literature re%iews
'herefore, this study will e%aluate the abo%e building blocks of #ximbank /organi$ation setting
for their appropriateness in shaping its people towards achie%ing better organi$ational
performance based on the -B literatures&
1.3 Background
#ximbank is founded on 2ay 23, !454 under the name V0#'6A2 #78-9' 028-9' BA6:
and one of the first ;oint.stock commercial banks in Vietnam& At present, #ximbank has the
charter capital of V6< !,=> billion and the owners e?uity of V6< !@,>2A billion, making it
one of the largest banks in terms of owners e?uity& As of 2!, #ximbank has de%eloped a
nationwide network with its Head -ffice located in Ho *hi 2inh *ity and !5@ branches and
transaction offices throughout Vietnam and has set up correspondent banking relationship
with o%er 5=2 banks and their branches in more than 5 countries in the world (#ximbank,
2!2"&
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+/- Met(ods
2.1 Data collection methods
<ata were gathered mainly from secondary sources i&e& through the banks annual reports,
prospectus and official website& Howe%er, we are pri%ileged to ha%e #ximbanks former
employee as our team member who is able to share his experiences for the purpose of this
report&
2.2 Issues and challenges
6ot all information on #ximbank is a%ailable publicly& 2ore often, information related to -B
such as salary package, promotion criteria, succession planning, etc& are confidential and
only accessible internally&
0n addition, due to time and resource constraints, we were not able to get documented
e%idences through sur%ey or inter%iew to better support our findings& 'hus, the analysis is
based on the information deduced from the publicly a%ailable reports and experience of one
of our team members& 0t may not comprehensi%e but sufficient to pro%ide general o%er%iew on
#ximbanks -B characteristics and its management practices&
2.3 Analysis
+ince our focus is only on the -B related management practices, we extracted the rele%ant
information within our scope of study from #ximbank annual report, prospectus and official
website& 'he extracted -B related information is then analysed from rele%ant -B literature
perspecti%e to better understand its characteristics and subse?uently make assessments as
well as recommendations on the findings&
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3/- Res#lts
3.1 Overview of cororate strategy and !usiness goals
'he first building block under study is #ximbank corporate strategy& Bormulating corporate
strategy is fundamental starting point because it sets the organi$ations o%erall direction,
goals and ob;ecti%es& 0t also helps the management to identify acti%ities to be carried out in
order to achie%e its purpose of existence&
2ullins (2!@, p& =" defines corporate strategy as Cthe generic term used with regards to
the core purpose of the organi$ation and its linkages with its structure, management process
as well as applications of organi$ational beha%iorD& -n the same sub;ect, :aplan E 6orton
(25" found that most successful organi$ations followed 'he +trategy <e%elopment 8rocess
2odel in formulating their corporate strategies& 'he first two steps are C*rafting 2ission,
Vision and Value +tatementsD and C+etting +trategic ,oalsD while the remainders are
CAnaly$ing key issuesD and C+trategy BormulationD& 'he model suggests that a successful
organi$ation should ha%e 2ission, Vision and Value +tatements for a start&
Figure &: 'he Strategy (evelopment ro"ess )o$el
So#r'e9 Adopted from The Execution Premium :aplan E 6orton (25"
Howe%er, only the following Vision +tatement (#ximbanks 2!2 Annual report, p& !5" is found(

:aplan E 6orton (25" define Mission as Ca brief statement that defines fundamental
purpose of the organi$ationD while Vision as Ca concise statement that defines the mid. to
long.term goals of an organi$ationD&
6
*E+imban% will ta%e a$vantage o! mar%et opportunities to
maintain reasonable an$ sustainable growth, strengthen its
!oun$ation, heighten position an$ $evelop E+imban% into a
mo$ern "ommer"ial ban% at whi"h all sharehol$ers,
investors, "ustomers an$ partners are "on,$ent with their
!un$ sa!ety, a ban% provi$ing a variety o! high -uality
ban%ing an$ ,nan"ial pro$u"ts an$ servi"es, an$ a bran$
with high prestige in the ban%ing in$ustry ma%ing great
Strategy Development
Process
Objectives Platform Issues Representative Activities
Mission, Vision and
Values
(What business are we in,
and why?)
To reaffirm the highest-level
guidelines about organizational
purpose and conduct.
stablish the vision in
terms that are conducive to
e!ecution
"ission analysis
#ision $tatement
%ore #alues
nhanced #ision
Strategic oals
(Where are we going&)
To clearly define the highest-level
financial or mission goals that will
drive the strategy
stablish the economic
model that will be used
throughout the strategy
management process
"acro mission-measure
#alue gap decomposition
$trategic themes
'-() year goals
*inancial model
Strategic Analysis
(What are our +ey issues)
To identify, through structured
analysis, the events, forces and
e!periences that impact and
modify the strategy
,efine the lin+age between
the influencing forces and
the process of value
creation
nvironmental scan
(-$T.)
/nternal scan ($W0T)
$trategy of record review
1ey issues identification
Strategy !ormulation
(2ow can we best
compete?)
To define where and how the
organization will compete
nsure that changes in
strategy are lin+ed to
changes in the planning
and e!ecution process
stablish the boundaries of
permissible change
Where to compete (niches)
,ifferentiators (value
proposition)
2ow to compete (strategy
map)
*inancial model & $trate!
$trategic change agenda
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Analysing #ximbanks Vision, we found that it is a hybrid of both 2ission and Vision& 'his is
because it stated its fundamental purpose, the o%erall picture of what the organisation would
like to be and how they are going to achie%e it& But, it is too long to fit :aplan E 6ortons
definition of Mission and without timeframe to fit in the definition of Vision&
Fet, in line with 2ullins (2!@, p& >>=" obser%ation that the distinction of Mission and Vision is
often unclear and management authors often use them interchangeably, we belie%e
#ximbanks hybrid Vision is still sufficient& 0n addition to becoming a modern commercial bank,
it also encompasses o%er.arching noble goal of contributing to the community and society&
0ncorporation of this noble goal is a strong point and brilliant corporate strategy as it would
lead to the banks greater acceptance by the community who are also existing and potential
customers of the bank&
Howe%er, we found a few weaknesses& As much as it is understandable that the management
wants it to be as clear as possible, there is a great probability that the intended meaning be
/lost in translation due to its too wordy form& 0t is therefore recommended for the organisation
to use more concise and catchy words to make it easier to digest&
Another weakness is the fact that one important stakeholder of the organi$ation is being left
out i&e& the employees& 0t is argued that the main dri%er for success of organi$ation is its
people& 'hey are the one who make things happen& 'hus, we belie%e it would be best for the
desired state of its employees also be embedded in the Vision& 0t will be the starting point for
participati%e approach of Cmanagement by ob;ecti%esD (2B-" which was first introduced by
<rucker in !4=3 (<rucker, !454" and later de%eloped further by 2c,regor (!4>>", to increase
the effecti%eness of the organi$ation by con%erging the organi$ational goals with personal
goals of its employees&
*on%erting the stated Vision into strategic goals, #ximbank has established the following 2
distinct targets namely de%elopment and business targets (Eximbanks 0120 Annual
report, p" 23)4
Analysing the Development Targets abo%e, one could see linkages with its %ision& C'o be the
top @ commercial ;oint stock banks in VietnamD is linked to the Cheighten positionD %ision while
the second target is linked to its strategy Cto take ad%antage of market opportunitiesD& As for
the third target, it is in line with #ximbanks %ision to increase its stakeholders confidence on
the way they manage the fund& 'he Business Targets on the other hand are short.term
?uantifiable targets for the year that ensure its sur%i%al and support its de%elopment targets&
'o sum, it is e%idenced that #ximbank has clear and sufficient corporate strategy that links
well with its business goals& Howe%er, for the purpose of clarity, the management should
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*(evelopment 'argets:
i. 'o be the top & "ommer"ial /oint sto"% ban%s in
0ietnam
ii. 'o "ontinue promoting its a$vantage o! being a ban%
with "ustomer base o! e+port an$ import "ompanies all
over the "ountry, as well as !urther $eveloping the
retail ban%ing system, espe"ially !or in$ivi$ual
"ustomers.
iii. 'o spee$ up the implementation o! international
*Business 'argets:
, 'otal 1ssets: rising by 123 against #41#
, (eposits: rising by #53 against #41#
, 6oans: rising by 173 against #41#
, ro,t be!ore ta+: rising by 1#3 against #41#8
VIETNAM EPORT IMPORT BAN!
consider splitting the present Chybrid VisionD into 2ission and Vision and ha%e its own Value
Statement (based on the desired corporate culture which will be discussed in section @&@"&
3.2 "#lanation of organi$ational structure
As a public listed company, #ximbank must ha%e a formal organisational structure& A formal
organi$ation structure pro%ides confidence in its in%estors as well as Ca framework for
integrating the organi$ations strategic plans for the allocation of its resourcesD (+chaffer,
!453"& 0t also pro%ides an o%er%iew on Cthe means through which organi$ational resources are
employed to meet organi$ational ob;ecti%es and the accomplishment of organi$ationals
purposeD (*handler, !4>2"&
'heoretically, business strategy must be linked up to the organi$ation structure& A lot of
debate is going on whether the organi$ation structure should follow business strategy or the
%ice %ersa& Howe%er, Gynch (2!2", cited in 2ullins (2!@, p& =5" suggests that what is more
important is Cto ensure that they are consistent with each otherD&
'hus, this section will identify and explain the organi$ational structure of #ximbank and
assess its consistency with its corporate strategy&
0n designing organi$ation structure, 1oodward (!45" suggests that it is essential to
differentiate the /'ask and /#lement functions& 'his will help to a%oid confusion in Cthe
planning structure and in the relationship between members of the organisationsD (2ullins,
2!@, p& =!3"& Brom Appendix A, we found that the separation of the #ximbank dimension
between task
!
and element
2
is not straight forward& -ne can look at it from 2 different angles&
'he first angle is at unitHdi%isional le%el e&g& at the Head -ffice whereby the Human 9esource,
-ffice 2anagement and 0' <epartments can be identified as /elements while the rest as
/tasks& 'he second angle is from the o%erall Head -ffice and Branches le%el whereby the
function of Head -ffice can be categori$ed as /elements which is supporting the /tasks
function at branches&
0n di%ision of work, #ximbank uses a combination of 2 groupings to group its acti%ities i&e& by
specialisation at the Head?uarters and by geographical location for its branches& 'his
structure is the ideal structure for a typical large banking network in line with organi$ation and
go%ernance model suitable to international practices& #ximbank could benefit from shared
resources at the Head -ffice while the branches would enable the bank to increase its
present to its existing and potential customers throughout Vietnam as well as worldwide&
#ffecti%ely, the extensi%e number of branches would support its goal of increasing its
customer base while the dedicated departments such as *redit *entre and Asset Giabilities
2anagement Init would help impro%ing the ?uality of loan and the risk management of the
bank& 'he marketing and product de%elopment departments, on the other hand, will focus
their effort to achie%e the targeted deposits and loans growth&
'herefore, it is e%idenced that #ximbank is ha%ing an appropriate structure in supporting its
business strategy& 'here is a clear di%ision of work, effecti%e line of reporting and sufficient
allocation of resources&
3.3 Analysis of organi$ational culture
0n addition to building a solid structure, organisational culture is belie%ed to be a contributing
factor for its success& 'here are many definitions about organisational culture from different
authorsJ howe%er, organisational culture could be understood following two angles( %isible
artefacts of culture, and in%isible angle& 1hile the %isible opinion shows culture through
1
Task functions are the basic activities of the organisation related to actual completion of the productive process and
directed toards specific and definable end results!
2
"lement functions are other activities of the organisation are not directed toards specific and definable ends but are
supportive of the task function
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Clanguage, symbols, dress, and beha%iourD, the in%isible artefacts of culture in%ol%e C%alues,
beliefs, and shared understandingD (Brinkman, et al, 2!, p& !=!"&
Geslie de *hernatony said organi$ational culture could be considered as CglueD, which can
moti%ate staffs beha%iour and make them be closer with organi$ations de%elopment (<e
*hernatony, 2!, p&!=4"& 'herefore, big organi$ation such as #ximbank with more than
=,5 employees at the end of 2!2 needs to culti%ate appropriate organi$ational culture to
bring e%ery single person together towards the achie%ements of it goals&
As mentioned in section @&2, #ximbank follows a typical large network banking structure&
Based on Handy (!44@" four main types of culture, it is predictable that the management has
to inculcate C8rocess *ultureD to ensure order and predictability of its conduct& 0t can also be
said that based on <eal and :ennedy (2" four generic types of culture, due to its business
nature, #ximbank has to adopt the C9ole *ultureD where the operation of the bank has to be
highly formali$ed, abound with regulations and paperwork, and the relations between
members are denominated by authority and the hierarchy&
Howe%er, most of its employees are young, enthusiastic and creati%e& #ximbank belie%es that
young people can help them de%elop for the future (#ximbank, 2!2, p&@2"& 0t is e%idenced in
the Bigure !, where most of its employees age is between !5.@= years old (e?ui%alent to 5@K
personnel structure"& 'hus, #ximbank is %iewed as a young organi$ation with youthful,
energetic, %ibrant and hardworking characters&
Figure 9: ersonnel stru"ture in terms o! age
So#r'e9 #ximbank. Annual report 2!2
#ximbank also put emphasis on the educational background of its employees& 0t understood
clearly that as its business is dealing with building trust to its customers, #ximbank has to
ensure that its people ha%e the knowledge and strong educational background& 'herefore, it
is apparent that the pie chart in Bigure 2 shows the combined number of employees with
undergraduates and post graduates degrees stood at 5=K&
Figure 7: ersonnel stru"ture in terms o! e$u"ation
So#r'e9 #ximbank. Annual report 2!2
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Building an organi$ational along with young, educated, energetic and creati%e pool of people
is a brilliant strategy& 0t has pro%en to be strategic for #ximbank as young employees are with
enthusiasm, learn ?uickly and able to cope with new things, new system and new market
opportunities that surface from the Vietnams emergent economics de%elopment& Howe%er,
they (the young, educated, energetic and creati%e" may find the C8rocessD and C9oleD culture
that come with the ;ob mundane and boring& 'hese may lead to lower moti%ation and
subse?uently higher turno%er&
Inderstanding this well, #ximbank has to promote Cwork hardH play hardD culture& Apart from
offering competiti%e salary package and taking care of their welfare, the management
encourages program and acti%ities that could enable the employees to get together and ha%e
fun& 'his is done through annually set up team building acti%ities, sports e%ents, music shows,
art or cook competitions, and summer holidays for @.3 days in order to create excitement and
retain loyalties of its young and energetic employees& 'hey also gi%e tickets for staff to go
home in 'et festi%al, a traditional Vietnamese festi%al (#ximbank, 2!2, p&@@"& Besides ha%ing
fun, those e%ents also create channels for employees to close the hierarchical gap between
them and subse?uently reduce conflicts in the organi$ation&
#ximbank also encourages its employees to participate in organi$ing social community
programs& +uch acti%ities include Craising fund for the poor in Ho *hi 2inh *ity, constructing
schools, kindergartens, bridges, roads, medical clinics, erasing temporary and damaged
homes, constructing houses of compassion for the poor and families under preferential
treatment policyD (#ximbank, 2!2, p&@@" and many more& 'hose programs not only could
build up #ximbanks image in the community by helping addressing the social issues but
could also inculcate customers focus mentality amongst its employees&
'hus, in terms of culture, it can be concluded that #ximbank is ha%ing C8rocessD and C9olesD
culture in line with the nature of its business but at the same time the management is
promoting the Cwork hard H play hardD culture through non.official ;ob related acti%ities to keep
its youthful, educated, energetic and creati%e employees moti%ated and ha%e a sense of
belonging to the organi$ation& 0t is recommended for the management to continue promoting
.$ork hard+ play hard culture/ while maintaining .*ole/ culture and
.(rocess/ culture
3.% &ritical evaluation of 'eadershi ractices
Geaders are crucial in any organi$ation& 'hey are the one who make decisions, determine the
direction and shape the organi$ation& 0n a nutshell, they pro%ide leadership&
Geadership can be defined as Ca relationship through which one person influence the
beha%iour or action of other peopleD (2ullins, 2!@, p& @>4" and in this case, influencing the
acti%ities of an organi$ed group in its efforts toward goal setting and goal accomplishment&
Gocke (!44!" describes leadership as Cthe process of inducing others to take action towards a
common goalD& 0t is therefore always argued that leadership is relationalJ which in%ol%es the
process of leaders influencing the followers to act&
<umdum et al&, (22"J Ludge and 8iccolo, (23" cited in 9owold (2!", found that there is
considerable e%idence from meta.analysis which suggests positi%e relationship between
leadership and organi$ational performance& 'hus, this section will e%aluate #ximbanks
leadership and its appropriateness in supporting the banks business strategy&
Brom the Annual 9eport, we identified that 2r& Ge <ung Hung is the chairman of the Board of
<irectors and therefore responsible in pro%iding leadership to the bank& Assessing him
through traits spotting approach, we found that he has all the fi%e traits as suggested by
+helly :irkpatrick and #dwin Gocke, cited in Bertocci (24" model of leadership& 'hose traits
are(
1%
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2r& Ge Hung <ung is ambitious, dynamic, confident, and does not gi%e up his target so easily&
He also manages to garner support from his team& According to report on the operation of the
Board of <irectors in 2!!, due to the support of his intense strategic directions, the solidarity
and unanimity among standing Board members, the deep understanding of rules and policies,
#ximbank has undergone a way of de%eloping from a medium.si$e bank to a strong bank and
now a huge bank (#ximbank, 2!!"&
Brom the beha%ioral perspecti%e, we chose to assess his leadership through Gikerts
Geadership +ystems which is one of the first and most known e%aluation models of the
leadership style& 'his model separates the leadership styles in four different systems
depending on the degree of the leaders authority use (Buble, 2"(
<emocratic is the main leadership style that 2r& Ge Hung <ung uses in leading #ximbank& He
has high trusts in his Board members and +enior 2anagers by allowing them to make
collecti%e decisions for themsel%es& He put in place reward structure that moti%ates its
employees to perform better through gi%ing out bonuses and promotions and get the senior
management in%ol%ed in setting the organi$ation targets which were later shared throughout
the organi$ation&
But democratic style has a weakness whereby its success depends on the maturity of the
employees& 0f the ma;ority of its employees inclination is di%erting away from the organi$ation
goals, then democratic style will be detrimental to the organi$ation& Howe%er, 2r& Ge Hung
<ung is correct in adopting that style of leadership since as discussed in @&@ abo%e, 5=K of
#ximbank employees are highly educated e%en though they are young& 0t is e%idenced by
%arious awards and achie%ements that the bank had recei%ed under 2r& Ge Hung <ung
leadership&
'o sum, it is clear that the current leadership practices in #ximbank is suitable and supporti%e
towards the achie%ements of its stated corporate strategy& But, it is recommended for the
management to ha%e succession planning to ensure continuity of the bank should any
changes to the leadership occur& #fforts should also be taken to take ad%antage of the young
and educated minds in the organi$ation in contributing towards the organi$ations success&
11
>A'(ie"ement9 A leaders need to accomplish is indispensable to finish difficult
tasks, incur work and educational experiences&
Am)ition9 A leaders aspiration dri%es learners to set disputing goals to accomplish&
Energ%9 A leader concentrates energy on successfully managing an intense and
demanding task&
Tena'it%9 A leader presents staying power in finishing difficult tasks and
o%erwhelming si$eable obstacles&
Initiati"e9 A leader who is proacti%e rather than reacti%e sei$es opportunities and do
not pause to initiate acti%ities to rectify identified problems&D
>E.ploitati"e a#to'rati'( 'he leader has no confidence and trust in subordinates,
enforces decisions, ne%er delegates, moti%ates by threat and there is %ery little
communication and no teamwork&
Bene"olent a#t(oritati"e( 'he leader has condescending trust in subordinates,
enforces decisions, ne%er delegates, moti%ates by rewards and sometimes in%ol%es
subordinates in sol%ing problems&
Parti'ipati"e( 'he leader has an incomplete confidence in subordinates, listens to
subordinates but controls decision.making, moti%ates by reward and some
in%ol%ement, uses ideas and opinions of subordinates constructi%ely
,emo'rati'( 'he leader has a complete confidence in subordinates, moti%ates by
reward for achie%ing goals set by participation and shares ideas and opinions&
8ersonnel at all le%els feels responsibility for the achie%ement of organi$ational goalsD
VIETNAM EPORT IMPORT BAN!
4/- 7on'l#sions 8 Re'ommendations
%.1 &onclusions
0n conclusion, #ximbank is currently ha%ing ade?uate and appropriate set of corporate
strategy, strategic goals, organi$ational structure, corporate culture and leadership practices&
'hose interrelated building blocks ha%e thus far enabled the bank to continue making profit
and grow its assets (refer to Appendix B"& 0t also has been awarded CBest <omestic Bank in
Vietnam 2!2D by the Asia 2oney maga$ine which acknowledges the capabilities and
excellent management of the bank&
Howe%er, as the market is becoming more competiti%e with new players coming in particularly
foreign banks, #ximbank shall not be complacent& 8roacti%e measures ha%e to be taken for
the bank to strengthen its corporate strategy and structure to prepare the bank to take
ad%antage the opportunities a%ailable in the market and maintain its leading position&
%.2 (ecommendations
Brom the analyses abo%e, management is recommended to consider splitting the present
Chybrid VisionD into 2ission and Vision to make it clearer and recognise its people as one of
the stakeholders& 0t is also recommended that the corporate culture be translated into Value
+tatement which shall be shared throughout the organi$ation&
+ince nothing much could be done on the bank organi$ation structure as it has to follow
international standard which naturally would lead to process and role culture being the main
culture of the bank, the management may focus promoting C1ork hardH play hard cultureD
through non.official related work&
As for the leadership practices, it is recommended for the management to ha%e succession
planning to ensure continuity of the bank& 'he young and talented should also be gi%en more
a%enues to participate and contribute their ideas in taking the bank into greater height in the
e%er increasing competiti%e market&
12
VIETNAM EPORT IMPORT BAN!
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#ximbank& (2!@"& (uthori)ation !or attendance at %&'*+s (nnual "eneral Meeting o!
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13
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14
APPEN,I A
Appendix A R Vietnam #ximbank -rgani$ation +tructure

So#r'e9 Vietnam #ximbank Annual 9eport 2!2
15
APPEN,I B
Appendix B . Vietnam #ximbank Binancial Highlights E #ximbanks *hairman
So#r'e9 Vietnam #ximbank Annual 9eport 2!2
2r Ge Hung <ung . *hairman of the Board of <irectors (#ximbank, 2!2"
16