Professional Documents
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Ob A1.1
Ob A1.1
Ob A1.1
INTRODUCTION
The aim of this paper is to analyze organizational culture, politics using one of appropriate
theories, as well as evaluate their influence on the employees’ behavior and performance. Then,
a detailed recommendation for a better, more effective utilization of culture and politics would be
provided to put employees further, helping company achieve targeted objectives.
Aviation Industry is one of a huge concern in the world, as it enormously supports others, such
as travel industry, service industry, etc. which contributes to the global economic development.
Therefore, studying the culture of some Airlines’ culture would be suitable and essential to some
extent.
TASK RESPONSES
Established in 1995, Vietnam Airlines became the leader national aviation and has evolved
over years to become one of the most major carriers in Southeast Asia
(Vietnamairlines.com, 2023). Over 20 years, with a stable yearly rise (at average) in the
double-digits, Vietnam Airlines now becomes a pride of national aviation with a symbol
representing the Vietnamese Culture. The flag carrier also opened a wide global network, as
well as made a big statement to the regional aviation industry. Vietnam Airlines makes a
commitment to shareholders to disclosing all information to the public in order to show the
transparency, as well as to maintain and improve communication with stakeholders.
Besides, the company desires to attain successful business operation based on harmonious
balance between interests shareholders and the economic development in Vietnam.
REMARKABLE MILESTONES OF VNA
2006: Joined SkyTeam Alliance (first Southeast Asian Airlines to do so)
2015: World’s Airline pioneer to operate both Boeing 787 and Airbus A350.
2016: Received 4-star certificate from Skytrax.
2021: First time launched direct flight to US.
1.1 Artifacts
Schein believed that Artifacts are the most visible things, so changing these will not mean too
much to the organizational culture. Artifacts aspects might consist of office layout, logo, uniform,
dress code, decoration, facility of the organization.
Both office layout and the aircraft layout are designed with blue and white selected as main
colors
As mentioned above, the Artifacts outlined the brand identity, helping customers to easily
recognize. The yellow or blue-color ao dai, along with the Golden Lotus have been usual
things of Vietnam Airlines. However, since its change has the lowest impact on the
organizational culture, so the artifacts could easily be modified over the years. For
example, since the Vietnam Airlines’s establishment, its uniform has been changed 5
times, or its logo has been evolved 3 times.
According to Quinn and Kim, there are basically 4 types of culture, including Clan, Hierarchy,
Adhocracy and Market culture. The most unique characteristics of each type of culture are
shown below:
Nguyen Hai Quang (2017) researched on the organizational culture of Vietnam Airlines by
surveying 240 employees working here and indicated Vietnam Airlines is inclined to Clan and
Hierarchy Culture than Market and Adhocracy Market. Therefore, I will delve into Clan culture
and Hierarchy Culture and how they are implemented in Vietnam Airlines.
2.1 Clan Culture in Vietnam Airlines
According to Hung, et al (2022), applying clan culture means that the managers really care
about employee, and most importantly, they emphasize on the member participation and
teamwork. Besides, the clan culture focuses on the employee commitment, trust. To sum up,
managers consider the employee as a core aspect of the organizational development.
As mentioned above, Mr Dang Ngoc Hoa (Chairman of VNA) supposed that the employee
solidarity is the most important thing that VNA currently possesses, which shows that clan
culture is applied in VNA.
2.2 Hierarchy Culture in Vietnam Airlines
Meanwhile, Hierarchy Culture put emphasis on strict management and rule to control
employees for smooth operation of organization. Good planning, organization skills of managers
really matter in this type of culture to ensure the reliable and effective output.
According to the above organizational structure, it can be easily seen that Vietnam Airlines is
also applying Hierarchy culture with clear structure, each Vice CEO (or Head Office) hold
accountable for each Department (specializing each area such as: finance, commerce,
technical,etc.). All departments must collaborate with each other for smooth and safe operation.
Rule-based culture is a need in Vietnam Airlines as the Aviation Industry demands on safety
of passengers. Unorganized and undisciplined behavior of each employee would lower the
customers’ trust and furtherly cause accidents.
CLAN and HIERARCHY culture are harmoniously combined in Vietnam Airlines to make
sure that employees are experiencing flexible working environment but also must
commit to certain rules to maintain the customer’s trust as well as the face of flag carrier.
Vietnam Airlines employees certainly work under huge pressure from the Coercive Power.
Working in Aviation Industry, especially for the flag carrier highly requires employees to provide
the best service to customers, because if employees (flight attendant, for example) show
unenthusiastic conducts and low customer service, it would damage the organization reputation,
thus could lower the VNA’s profits. With this deficit, employees could be punished (salary cut
down, for example) or even sacked. Therefore, with the fear of punishment inflicted on them,
VNA’s employees must comply with the rules to provide best service to customers.
Based on the VNA’s structure and the charter of VNA JSC (published in 2019), the Board of
Management (BOM) has rights to dismiss or appoint subordinates to suitable position, even the
dismissal or appointment of Chairman must be passed by BOM. Chairman of VNA-Mr Dang
Ngoc Ha is in charge of signing decisions on behalf of the BOM. For example, during the
COVID-19 pandemic, pilots and flight attendants’ salaries were cut off; or staffs are cut to
ensure VNA’s survival (Anh Tu, 2020). Those decisions must be finalized through the BOM
meetings. Mr. Dang Ngoc Ha, as a chairman, has some specific powers over others, such as
assigning and supervising tasks of each BOM member, including CEO. CEO-as a top manager
has same powers over Vice CEO and Head Office. Every action of subordinates must be in line
with the superiors’ direction, which is Legitimate Power. The existence of Legitimate Power can
lead to Reward Power. Reward system can only be operated by those have higher positions in
hierarchy than others. Each business has their own compensation policy for employees who
have high productivity, so does Vietnam Airlines. Vietnam Airlines has changed its
compensation policy, as instead of receiving 100% salary, those completing full tasks will be
rewarded salary 1.5 times higher than before, assuring employees and partly motivating them to
devote the best to the company.
Legitimating could be considered as the most popular influencing tactic in Vietnam Airlines.
The VNA’s mission and vision emphasizes that the working environment needs to be
professionalized, meaning that the everyone’s action must be based on their bounds of
authority. For example, a Vice CEO that holds commerce filed can ask a team of Sales and
Marketing Department to resubmit marketing plan if it is not financially effective or not attractive
enough to customers, which is in bound of his/her authority, while other Vice CEOs holding
other fields are disallowed to have similar request. Another remarkable note of this tactic is that
request must be in compliance with regulations, which means that superiors’ decisions must be
for mutual benefits of the company.
Besides, Consultation takes place in Vietnam Airlines. Mr Dang Ngoc Ha-Chairman of VNA
said that employees should be empowered to make decision, in which he believes that, along
with the managers’ encouragement and consultation, can reveal employees’ potential and
develop it to ensure higher effectiveness. (spirit.vietnamairlines.com, 2023).
Pressure tactic is partly applied in Vietnam Airlines, as there are specific rules that employees
here must comply to, and can be punished if not obligated to. According to core values
displayed on the company’s website, safety rules must be carefully obligated to make sure that
no one is put in danger. In Vietnam Airlines, employees are working under pressure, in which
their actions must not lead to any accidents.
In conclusion, Clan Culture directs employees to a collaborating culture and delves into
Internal Focus (Employees) with the belief that can boost their creativity and flexibility.
On the other hand, Hierarchy Culture focuses on the stability of an organization with
specific rules to keep employees disciplined. Harmonious combination of these 2
cultures is expected to keep the Vietnam Airlines members highly disciplined, but also
show flexibility.