Contents

INTRODUCTION...............................................................................................................2
MAJOR FINDINGS............................................................................................................2
Overview about Vietcombank.........................................................................................2
Organization’s culture, power and politics......................................................................3
Culture.........................................................................................................................3
Power...........................................................................................................................8
Politics.......................................................................................................................10
Organisation’s motivation and evalutation....................................................................12
Realtionships between culture, politics, power and motivation....................................16
Recommendation...........................................................................................................17
CONCLUSION..................................................................................................................18
REFERENCES..................................................................................................................18
INTRODUCTION
Understanding organizational behavior is undeniably important for economic
success. As a result, this paper will examine the impact of organizational culture, power,
and politics on team performance. It also demonstrates the organization's motivating
approach.

MAJOR FINDINGS
Overview about Vietcombank

Figure1. Logo of Vietcombank (Vietcombank, nd)

With the precursor organization, the Foreign Exchange Department - under the
State Bank of Vietnam, the Joint Stock Commercial Bank for Foreign Trade of Vietnam
(commonly known as Vietcombank) was created and formally came into operation on
April 1, 1963. By market capitalization, Vietcombank is now the largest firm on the
Vietnamese stock exchange. Vietcombank will have one head office and 116 branches
around the country by 2020, employing over 20,000 people. With its own distinct culture,
Vietcombank's corporate culture has also resonated throughout the sector.

Organization’s culture, power and politics

Culture
SCHEIN MODEL
According to Edgar Schein, he developed a paradigm for measuring corporate
culture that consists of three different and interrelated levels (Hogan and Coote, 2014).

Figure 2. Schein model (Hogan and Coote, 2014).

1. Artifacts

The green logo of Vietcombank is a stylized heart shape that serves as the main
focus of the logo, conveying its own important message. The letter V represents the
Vietnamese national spirit and Victory as well as the first letter of the bank's name.
Furthermore, Vietcombank's logo has numerous significant meanings, conveying
business solidarity and unity, as well as the desire for enterprises to advance toward a
successful future based on heartfelt values.
 The Vietcombank uniform is carefully and professionally designed, with male
employees wearing a shirt and casual pants with a green tie and female employees
wearing a shirt, skirt or casual pants with a green bow in keeping with the company's
major color standard (Vietcombank Annual Report, 2020). In addition, managers and
heads of department in Vietcombank frequently wear a yellow tie or bow. Employee
uniforms are important to Vietcombank in terms of its image and company culture.
Furthermore, neat and tidy employees are thought to demonstrate respect to consumers,
aid in company promotion and enhance brand identification.

In terms of Vietcombank's layout, the main colors of green and white are paired
with suitable interior designs and distinctive characteristics at the bank's headquarters and
transaction offices around the country, consumers will immediately recognize that it is a
Vietcombank branch. The tree system is scientifically organized, resulting in an airy
working atmosphere that improves both the workplace and the area's attractiveness. To
avoid epidemics and maintain the safety and security of all client information and
transactions, transaction counters are numbered and feature partitions.

2. Values

The logo is also the crystallization of 6 core values that contribute to

Vietcombank's brand building, including Innovative - Continuous - Caring - Connected -
Individual – Secure (Vietcombank Annual Report, 2020). Vietcombank is dedicated to
providing tangible value to customers via the ingenuity of its employees as well as the
leadership team. Vietcombank is continually evolving with the purpose of expanding
client groups, with customer care as a key criterion, producing a characteristic company
culture. Furthermore, corporations are united in their goal of establishing a national bank
capable of competing globally. In order to optimize the interests of customers and
shareholders, Vietcombank attempts to identify personnel based on quality and security.
All of these basic characteristics are regarded as Vietcombank's most valuable assets.
 Vietcombank's mission is to be the top bank for Vietnam's growth. The vision of
Vietcombank is to become Vietnam's No. 1 bank, one of Asia's top 100 banks, one of the
world's top 300 banking and financial groups, and one of the top 1000 publicly listed
enterprises (Vietcombank Annual Report, 2020).

3. Basic assumptions

There are implicit assumptions at Vietcombank that are not explicitly mentioned,
but that employees naturally follow.

- Employees in the sales department will not be required to go to work at 8 a.m. for
timekeeping purposes if they have to meet with customers.

- Employees at Vietcombank have a tendency of burning incense on budget distribution

days in the hopes of not losing money, in addition to burning incense at the beginning
and middle of the month.

- After taking maternity leave, female employees are permitted to arrive one hour late and
depart one hour early.

HANDY MODEL
Handy's method enables users to determine why they prefer working at one
company over another based on cultural factors (Anthony et al., 2011).
Figure 3. Vietcombank’s organisational structure

Vietcombank has a divisional structure, according to their annual report from

2020. Vietcombank's highest authority is the General Meeting of Shareholders, which
performs the powers and obligations outlined in the company's charter. The Supervisory
Board is in charge of overseeing the management and administration of the firm by the
Board of Directors and the General Director. The Board of Directors is Vietcombank's
top management body, making decisions on the bank's behalf that do not fall within the
jurisdiction of the general meeting of shareholders. The CEO is also the company's legal
representation. Under this division, there are other divisions managed by the General
Director and the Board of Directors such as: wholesale banking, business and capital
management, retail banking, risk management, and finance and accounting, human
resources, operations and support departments. These are carefully regulated, consistent,
and logically coordinated to avoid overlap in an operation like Vietcombank, which has
both a high degree of centralization and a high degree of formalization. Each
position's role and responsibilities are specified publicly and in writing, and the CEO's
choices are disseminated to each level and department for employees to execute and
apply. All are influenced by the information flow from top to bottom, and the CEO is in
charge of controlling it.

Figure 4. Handy’s model

 In general, Vietcombank is a corporation that follows Handy's Role Culture
approach. Businesses that adopt this culture guarantee that duties are dispersed to a large
number of employees, ensuring that the allocated tasks are accomplished without
duplication and waste of resources. Despite the fact that a role culture company is said to
find it difficult to adapt to major industry changes, Vietcombank's management has
developed smart banking and is constantly upgrading and improving to meet the needs of
online customers, as evidenced by the recent peak of the covid-19 epidemic
(Vietcombank Annual Report, 2020).

The culture of Vietcombank has a favorable impact on three primary

components: individuals, groups, and Vietcombank's leaders. Whether in a
probationary or official role, culture aids each employee at Vietcombank in accurately
seeing their personal importance to the job. Vietcombank also encourages and promotes
all of its employees' ideas and innovations, and the bank places a high value on employee
respect. Employees are more devoted to their job when they are satisfied with the
working environment and corporate culture. The teams will generate outcomes that
surpass anticipated objectives after organizational culture has fulfilled its purpose of
assisting employees in having a positive attitude toward work and achieving productivity.
The leader of Vietcombank is the spirit of conserving and sustaining good aspects in
corporate culture. As a result, Vietcombank's leadership distributes a culture handbook to
each employee so that they may comprehend and obey Vietcombank's cultural character,
ethics, responsibilities, and standards.

Power
Based of powers
Personal power: The legitimate power was used by Mr. Pham Quang Dung, who
is currently the General Director of Vietcombank. With a major role in the company, he
actively planning and developing strategies (investment plans, business plans) to promote
profitable growth (Vietcombank Annual Report, 2020). Mr Dung will develop the
objectives for each transaction office and department, once he has set the yearly
objectives and plans, from which empployees will be allocated monthly or quarterly
targets. Mr Dung normally evaluates business objectives and plans at the end of the year
before deploying company responsibilities for the next year.

Formal power: Mr. Dung graduated from the National Economics University with
a bachelor's degree in economics and graduated from the University of Birmingham with
a master's degree in banking and finance. With over 27 years of experience he has a
wealth of knowledge in banking and finance. Mr. Dung has contributed to Vietcombank's
successes in 2020 by continuing to occupy the position of most effective bank with a
profit of 1 billion USD, based on his knowledge and practical experience in the sector
(Vietcombank Annual Report, 2020). Therefore, the expert power was used by Mr.
Dung.

Mr. Pham Quang Dung also applied the connection power. In the case of
Vietcombank, it is critical to comprehend employee relationships and learn how to
participate in them, all while managing the external relationship for the greatest results.
Mr Dung focuses on the bonding activities between leaders and employees in addition to
the spectacular business operations. Some events worth mentioning include
Vietcombank's yearly cycling competition and internal concept development
competitions.

Power tactics
The CEO of Vietcombank often used inspirational appeals to motivate his
employees. Employees at Vietcombank must closely follow the company's rules and
standards and complete their assigned responsibilities on time. Employees in various
departments are expected to follow regulations based on the nature of their work. When it
comes to engaging with consumers, salespeople must be adaptable and skilled, while HR
professionals must manage a scientific human resource system. Regardless of the nature
of the position, Vietcombank's CEO values inspiration and seeks out ways to motivate
people to work for the company's shared objective. Mr. Dung aspires to increase job
satisfaction by cultivating a dynamic and creative work atmosphere in which employees
are heard and rewarded with bonuses and incentives.

A CEO, as someone who oversees all aspects of an organization, must be harsh

and decisive while yet adhering to the business's processes and standards. Besides
inspiring, pressure and ingratiation are also used by Mr. Dung to influence his
subordinates and departments. He utilizes the approach of putting pressure on employees
to produce results. This method may ensure that all duties are completed, and that the
group's tight standards for common objectives are satisfied. Ingratiation, on the other
hand, is mostly used to handle external connections like contractors, investors, and
partners. Executives can manage internal and external interactions to support the
company's activities by employing the strategies outlined above.

The power of the leader in the company has had a positive effect on both
employees and the business. employees and the firm. An experienced leadership team
has assisted the firm in developing evenly at each level; individuals are disciplined at
work, complete given tasks on time, and assist the organization in gradually achieving the
shared goals of the business. Furthermore, personnel are properly directed and given the
chance to refine their expertise and improve themselves while working. Vietcombank
obtained excellent economic achievements as a consequence of the aforementioned
favorable impacts, such as continuing to establish a new record of pre-tax profit of 23,122
billion VND (equal to 1 billion USD) and becoming one of the two listed firms paying
the biggest public budget (Vietcombank Annual Report, 2020).

Politics
Mintzberg defines Political Behavior as "any individual's or group's combination
of official or informal acts." Furthermore, three major political behaviors exist: networks,
reciprocity, and coalitions (Ferris & Hochwarter, nd)

The capacity to connect and develop relationships of any sort amongst individuals
in an organization is referred to as this behavior. This is what brings professional and
beneficial ties with powerful groups. Anyone can use net-working to obtain personal
benefits in the instance of Vietcombank. An employee can utilize his or her networking
skills to establish a connection with the department manager in order to obtain clients or
transaction information for the branch or department. It may be used by low-level
managers to sign contracts and create connections with managers from other branches or
higher managers. The CEO or senior management must maintain ties with subordinates
while also keeping relationships with senior management of partner companies and
maintaining the company's excellent reputation.

Within an organization, in whatever shape it is operating politically, by swapping

interests with one another. Both sides may come up with different forms of transactions
depending on the conditions and situation, but the core notion stays the same. It is a
mutually beneficial trade. At Vietcombank, there exist signs of internal reciprocity.
Employees in the same department who have the same job function, for example, can
swap positions to match their schedules. If they perceive their potential for another set of
duties, some departmental supervisors engage in staff exchanges. Senior executives might
share relationships in order to improve the company's external strength. This reciprocity
has aided in the development of Vietcombank's reputation, efficiency, and productivity to
some extent.

This is simply defined as unity, or the establishment of a coalition that will aid in
the achievement of mutual aims, whether persuasion or profit. At Vietcombank, the
coalition is most visible in the form of working in groups, where staff meet to assist
one another with assigned tasks. Each group has its own goal, and the aggregator in
each department summarizes and assesses the work of the employees.

In terms of attitudes and performance, political behavior has both positive

and negative effects on individuals and teams. Individuals with a strong network will
acquire confidence in speaking with coworkers and superiors, as well as becoming
familiar with talented employees. When working in groups, it is possible to obtain
passionate aid from everyone when facing challenges, progressively enhancing individual
and team performance. However, some people may take advantage of net-working or
reciprocity to win favor for themselves or their working group, which can lead to internal
conflicts and unjust treatment of employees, particularly when it comes to promotions.
To maintain fairness among employees, Vietcombank frequently considers promoting
individuals based on an examination of job performance, completed objectives,
individual capability, and leadership capacity from teamwork.

Organisation’s motivation and evalutation

Content theory: Alderfer's ERG Theory
Alderfer's ERG Theory is an extension of Maslow's Hierarchy of Needs, in which
Maslow's five needs are classified into three categories: Existence Needs, Relevance
Needs, and Growth Needs (Nain,2013)

Figure 5. Alderfer's ERG Theory

With the goal of improving staff morale, Vietcombank employs Alderfer's ERG
theory. For existence, the most fundamental needs of Vietcombank personnel are
remuneration, pay, bonus, and welfare regimes. Vietcombank has long been known for its
generous compensation programs. Essentially, Vietcombank's remuneration structure is
based on the principles of compensation that are proportionate to the value that workers
bring to the bank, fairness, and labor market competitiveness. The average pay of a
Vietcombank employee has risen over time, and employees' salaries are regarded as
substantial when compared to the market's average income of 15-18 million dong per
capita. Employees at Vietcombank are paid in two ways: a fixed salary and a target
salary. The fixed salary is established by the position and the specialized work
performed, whereas the target salary is decided by the outcomes of the job completion
evaluation as evaluated by KPIs. Employees at Vietcombank have been impacted by this
compensation regime, they are motivated and aware that their efforts and competence are
rewarded with a decent salary, resulting in increased employee performance. Employee
visits, illness, and maternity benefits are also organized by Vietcombank, which has
helped firms enhance employee loyalty, job satisfaction, and maintain high retention.

Regarding relatedness, Vietcombank consistently creates ideal opportunities for

colleagues to meet, work with, and learn from one another in order to foster a sense of
belonging. Vietcombank, in particular, holds contests on a monthly basis to encourage
workers to demonstrate their creativity in order to advance professionally, offer value,
and convey realistic ideas that help the bank grow. On the occasion of Vietcombank's
55th anniversary, the competition on innovation and creativity for development and
integration has created a realistic and effective environment for workers throughout the
system to optimize their efforts and ideas. Since then, there have been a number of
promising concepts that have contributed to system quality and company efficiency. In
addition, Vietcombank's management has requested that an E-Learning online training
system be implemented, with the goal of improving workers' capacity to evaluate,
experience, and nurture more practical expertise in the banking and finance business.
Every year, Vietcombank will rotate individuals between departments, departments, and
transaction branches so that workers may learn from one another and improve their
flexibility in all conditions. Vietcombank is able to identify future leaders and often
conduct internal exchange programs for staff as a result of this.

In terms of growth, Vietcombank has always adhered to the idea of respecting the
personal opinions of all Vietcombank personnel while stay committed to the
Vietcombank culture. For a bank, culture may be defined as the creation of an
environment in which workers are free to offer ideas and suggestions to business
operations and the overall development of the company. With an expenditure of almost
52 billion VND, Vietcombank upgraded the training center into a training school in 2019,
with the goal of managing, teaching, and developing human resources throughout the
system in accordance with Vietcombank's development objectives and standards
(Vietcombank Annual Report, 2020). It can be observed that Vietcombank always
generates chances for workers and always satisfies their requirements, in keeping with
the bank's cultural identity of treating people as a critical component and long-term
benefit in the company's long-term development.

Vietcombank has used the Alderfer's ERG theory to enterprises that have
addressed each individual's spiritual, communicative, and growth requirements.
Employees are paid a competitive pay, plus incentives and target salaries, which has
increased their drive to work and want to contribute to the bank's annual goals.
Employees who can satisfy their communication requirements also feel heard and have
the freedom to offer their opinions on the bank's innovation. Finally, this theory had a
favorable impact on Vietcombank, helping the company to realize its objectives more
successfully. When each employee is given the chance to grow, work productivity
improves, assisting the bank in reaching its aim of being a top bank in Vietnam's banking
and finance business.

Process theory: Edwin Locke's Goal Setting Theory

According to Locke and Latham's Theory of Goals, organizations understand how
to build strategy, inspire people via communication and a shared goal, productivity
transforms into action, and goals. criterion for feasibility (Edwin, 2004).
Figure 6. Edwin Locke's Goal Setting Theory

Edwin Locke's Goal Setting Theory is about setting goals for motivation. When a
person has a certain objective in mind, they will concentrate their efforts on that activity
(Edwin, 2004). Vietcombank has adopted this concept, and in order to reach realistic
goals, Vietcombank's managers and staff collaborated closely in three processes.

The first step is to choose the appropriate aim. The management of

Vietcombank develop targets based on individual variations, the environment, capacity to
work, and the job challenge from the head office to the branches. The goals will be
formed based on the SMART model (Specific, Measurable, Achievable, Relevant, Time
bound) and for Vietcombank a good goal is a SMART goal. Vietcombank aspires to
remain the market leader in the retail sector in Vietnam and employees in the retail sector
will promote the services of saving accounts, transactions, personal loans, debit or credit
cards. As a consequence, Vietcombank was able to keep its position beyond 2021 and
will continue to do so until 2025.

The second step is to persuade staff that the aim was realistic and convinced
them to adopt it. This is demonstrated by clearly describing the goals to employees and
encouraging employee engagement in the goal-setting process with a corresponding
remuneration mechanism. Employees are added monthly or quarterly KPIs point in
general, as well as the target pay or quarterly bonus, while executing the goals.
Employees will then realize that this is their aim at Vietcombank, not someone else's, and
will be forced to embrace it.

The final step has been made easier by Vietcombank, which has provided
accurate and timely feedback. Employees are informed of accomplished and unfinished
goals in order to boost their efforts and achieve the goal. Managers at Vietcombank
supplied updated industry knowledge and essential skills through internal training
programs, in addition to assisting staff in achieving their objectives.

This theory has aided Vietcombank in establishing clear goals and assisting
executives and staff in swiftly implementing activities. Employee engagement and
satisfaction are also improved, and they are more willing to take initiative and achieve
goals. Vietcombank, in particular, won a pride award for setting clear goals and
implementing them, resulting in the bank's position improving to the top 50 best listed
firms in Vietnam. Vietcombank wants to successfully prevent the Covid-19 outbreak in
the first six months of 2021, communicate issues with customers, and continuously
monitor the situation in order to make decisions that will ensure effective and sustainable
growth (Vietcombank Annual Report, 2020). As a consequence, Vietcombank's
commercial efforts have shown favorable results, with money mobilized from the market
exceeding VND 1 million billion, a 1.8 percent increase over 2020. However, this idea
may restrict Vietcombank if employees' skills and capability are insufficient to fulfill the
aim, affecting job performance. As a result, Vietcombank must properly conduct the
recruiting process and increase staff training.

Realtionships between culture, politics, power and motivation

At Vietcombank, corporate culture has a huge impact on employee motivation.
Employees are inspired by their job and strive to achieve their goals. Furthermore, the
immediate consequence of the job corresponds to the employee's individuality, who
performs because they value the work's influence. Employees have placed their trust in a
strong, growing company with opportunities for future growth, allowing them to succeed
in their work. Values, basic assumptions, and artifacts have helped employees place their
trust in a strong, growing company with opportunities for future growth, allowing
employees to excel in their work.

Power and Motivation: Power and motivation are linked in Vietcombank. A leader
with admirable traits has a significant influence on the business performance of both
personnel and the organization. The CEO of Vietcombank has utilized his legal authority
to encourage his people to be inspired and motivated, resulting in good outcomes for the
firm. Mr. Pham Quang Dung's power approach, in particular, has shown to be effective in
motivating employees, bridging the gap between them and their leaders, and instilling
strong trust in employees throughout the working process.

Vietcombank's internal motivation is influenced by political behavior.

Specifically, the business's management or personnel will frequently engage in political
activities. This is a positive feature that helps employees connect by providing a pleasant
working atmosphere, fair competition, and unity. Employee morale and productivity will
improve as a result of this, since they will be more focused on their given responsibilities
and so enhance labor productivity.

Overall, Vietcombank's corporate culture, power, and politics are all

advantageous. Because companies consistently prioritize the human resource system,
suitable power tactics and political behaviors all fulfill the basic needs and aspirations of
employees in a company. As a result, employees will work in the most relaxed and
productive manner possible, resulting in the company's success in comparison to
competitors in the same sector.

Recommendation
Vietcombank has effectively-implemented pay regimes and developed a
professional working environment for workers, as well as fairly assessing employees'
accomplishments and creating favorable conditions for people to progress within the
organization. However, between the end of 2016 and the beginning of 2019,
Vietcombank had security issues. Many customers have stated that their personal
information was taken and that money in their accounts was lost, making them fearful of
the bank's general trustworthiness and the susceptibility of Smart OTP card security. This
issue arises as a result of the human system and technology.

In order for Vietcombank to fulfill its goal of becoming the industry's top bank
from 2022 to 2025, I believe the bank will need to hire IT specialists to solve security
flaws. To increase employee quality, Vietcombank must continue to examine and
standardize programs such as E-learning and capacity building. It is vital to design a
career development plan, especially for IT roles, training and performance evaluation,
adopt a reasonable pay strategy, and vary recruitment approaches based on the
organization's rules.

CONCLUSION
Because it has a fantastic culture and a great political behavior, Vietcombank
plainly succeeds in organizational behavior. Despite the limitations of applying these
ideas to organizational behavior, organizations must have strategies for improving and
resolving problems that benefit both the company and its personnel.

REFERENCES
1. Nain, B. 2013. Nain’s Porous Hierarchy of Needs: An Alternative to Maslow’s
Hierarchy/Theory of Needs.
2. Locke, E. A. (Ed.). 2004. Guest editor’s introduction: Goal-setting theory and its
applications to the world of business. Academy of Management Perspectives,
18(4), 124–125.
3. Hogan, S. J., & Coote, L. V. 2014. Organizational culture, innovation, and
performance: A test of Schein’s model. Journal of Business Research, 67(8),
1609–1621.
4. Ferris, G. R. & Hochwarter, W. A., n.d. Organizational politics.
5. Vietcombank Annual Report, 2020. Annual Report 2019, Ha Noi: Vietcombank.
6. Vietcombank, 2018. Annual Report 2018, Ha Noi: Vietcombank.
7. Vietcombank, 2019. VIETCOMBANK TIẾP TỤC LÀ NGÂN HÀNG MẠNH
NHẤT VIỆT NAM. [Online] Available
at:https://portal.vietcombank.com.vn/News/newsevent/Pages/Vietcombank.aspx?
ItemID=8314 [Accessed 30 March 2022].