QUY ĐỊNH về TRÌNH bày LUẬN văn

GROUP CURRENT SITUATION OF CORPORATE CULTURE DEVELOPMENT AT VIDEC GROUP .... VIDEC GROUP Current situation of corporate culture development at VIDEC GROUP .... Current situation of the e

ĐẠI HỌC QUỐC GIA HÀ NỘI TRƯỜNG QUẢN TRỊ VÀ KINH DOANH

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NGUYỄN THỊ LỘC PHÚ

DEVELOPING CORPORATE CULTURE

OF VIDEC GROUP JOINT STOCK COMPANY

PHÁT TRIỂN VĂN HÓA DOANH NGHIỆP CỦA CÔNG TY CỔ PHẦN TẬP ĐOÀN VIDEC

LUẬN VĂN THẠC SĨ QUẢN TRỊ KINH DOANH

HÀ NỘI - 2022

ĐẠI HỌC QUỐC GIA HÀ NỘI TRƯỜNG QUẢN TRỊ VÀ KINH DOANH

-

NGUYỄN THỊ LỘC PHÚ

DEVELOPING CORPORATE CULTURE

OF VIDEC GROUP JOINT STOCK COMPANY

PHÁT TRIỂN VĂN HÓA DOANH NGHIỆP

CỦA CÔNG TY CỔ PHẦN TẬP ĐOÀN VIDEC

Chuyên ngành: Quản trị kinh doanh

Mã số: 8340101.01

LUẬN VĂN THẠC SĨ QUẢN TRỊ KINH DOANH

NGƯỜI HƯỚNG DẪN KHOA HỌC: PGS.TS NGUYỄN NGỌC THẮNG

HÀ NỘI - 2022

DECLARATION

The author confirms that this thesis is the author’s independent research work, it is not copied; the cited materials, data and the content of the thesis is truthful The author also confirm that the research result of this thesis has not been published in any other’s research

ACKNOWLEDGEMENT

I would like to express my sincere gratitude to Associate Professor Nguyen Ngoc Thanh who has been enthusiastic in instructing me to conduct and complete this thesis

Next, I am wholeheartedly grateful to the Management Board, the managers and the staff who are working at VIDEC GROUP for sharing and creating the most favourable condition for me to complete this thesis

Despite the effort, due to the limitation of time, experience, it is unavoidable for the thesis to contains errors; therefore, I wish to receive the comments and contributions from your esteemed Teachers and colleagues to apply the research result into practice of my work

Sincerely Thank you!

TABLE OF CONTENTS

LIST OF ABBREVIATIONS i

LIST OF TABLES ii

LIST OF DRAWINGS AND CHARTS iii

INTRODUCTION 1

1 Urgency of the research topic 1

2 Literature review 2

2.1 International researches 4

3 Research questions 5

4 Research objectives and tasks 6

5 Research subjects and research scope: 6

6 Research methodology 6

6.1 Data collection method 6

6.2 Data analysis method 8

7 Thesis structure 9

CHAPTER 1: LITERATURE REVIEW ON CORPORATE CULTURE AND CORPORATEE CULTURE DEVELOPMENT 11

1.1 Several basic concepts 11

1.1.1 Culture 11

1.1.2 Corporate culture 12

1.1.3 Components of corporate culture 15

1.1.4 Roles of corporate culture 19

1.2 Develop corporate culture 20

1.2.1 Concept of developing corporate culture 20

1.2.2 Corporate culture development process 25

1.2.3 Elements affecting the development of corporate culture 26

1.2.4 Instruments to evaluate corporate culture 28

1.2.5 Lessons from a number of units regarding corporate culture development 33

CHAPTER 2 GROUP CURRENT SITUATION OF CORPORATE CULTURE

DEVELOPMENT AT VIDEC GROUP 37

2.1 Introduction about VIDEC GROUP 37

2.1.1 Information about VIDEC GROUP 37

2.1.2 Organizational structure 40

2.2 VIDEC GROUP Current situation of corporate culture development at VIDEC GROUP 40

2.2.1 Current situation of the elements affecting the corporate culture development of VIDEC GROUP 40

2.2.2 Analysis of the current situation of the content of developing corporate culture of VIDEC GROUP 47

2.3 Evaluation of corporate culture development activity at VIDEC GROUP 55

2.3.1 Achievements 55

2.3.2 Remaining limitations 56

2.3.3 Reasons for the limitations 57

CHAPTER 3 SOLUTIONS TO COMPLETE THE WORK OF DEVELOPING CORPORATE CULTURE OF VIDEC GROUP 59

3.1 Basis to complete the work of developing corporate culture of VIDEC GROUP 59 3.1.1 Orientation, objectives of VIDEC in the upcoming time 59

3.1.2 Objective of corporate culture development of VIDEC GROUP 59

3.2 Proposal of solutions to complete the developing work of corporate culture of VIDEC GROUP 60

3.2.1 Solution direction 60

3.2.2 Solutions to improve the elements affecting the corporate culture development of VIDEC GROUP 61

3.2.3 Solutions to reduce the traits of hierarchy culture 67

3.2.4 Solution to develop the trait of adhocracy culture 68

3.2.5 Solutions to develop the traits of clan culture 70

3.3 Petitions 75

3.3.1 Raise the corporate culture communication at the group 75

3.3.2 Promote corporate culture into the activities of the Group 77 3.3.3 Consolidate the employees’ beliefs with the head – leaders of VIDEC 80 CONCLUSION 81 LIST OF REFERENCES 83 APPENDICE

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LIST OF ABBREVIATIONS

DN Doanh nghiệp (Enterprise)

CBCNV Cán bộ công nhân viên (Staff)

VIDEC GROUP Công ty Cổ phần Tập đoàn VIDEC (VIDEC Group

Joint Stock Company)

VHDN Văn hóa doanh nghiệp (Corporate Culture)

P.NS Phòng nhân sự (Human Resourcee Division – HR

Division)

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LIST OF TABLES

Table 2.1 Survey of the leader element with the corporate culture development 41 Table 2.2 Labour qualifications in VIDEC GROUP 2020 43 Table 2.3 Survey on the tangible elements affecting the corporate culture development of VIDEC GROUP 49 Table 2.4: Compiled result of the survey of identifying corporate culture model at VIDEC GROUP 53 Table 2.5 Difference table of present and expectation of the culture models of VIDEC GROUP 61

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LIST OF DRAWINGS AND CHARTS

Drawing 1.1 OCAI Corporate Culture Model measured by OCAI instrument 29 Drawing 1.2 CHMA Corporate culture model measured by CHMA instrument 31 Drawing 1.3 Denison Corporate culture model measured by Denison instrument 32 Drawing 2.1 Organizational Structure of VIDEC GROUP 40 Drawing 2.2 Survey of corporate culture based on the CHMA model 53

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INTRODUCTION

1 Urgency of the research topic

Within the enterprises, especially the large ones, there is the agegration

of people with different levels of professions, culture, cognition, social relations, geographical regions, cultural ideology etc Such difference creates a diverse and complex working environment Additionally, along with the severe competition of the market economy and the tendency of globalization, in order

to survive, the enterprises are forced to continuously explore new things, create and change in order to adapt to the practice Therefore, there has been the question of how to make the enterprise to be the place to gather and promote human ability, increase multi times the value of the individual human resource, contributing to the substantial development of the enterprise This requires the enterprise to construct and maintain a typical culture which can promote the ability and accelerate the contribution of everyone in achieving the general purpose of the organization – that is the Corporate Culture On the other hand, the construction of corporate culture is one of the necessary requirements of the brand development policy of the enterprise because the corporate culture image will contribute to the brand promotion of the enterprise Corporate culture is the asset of each enterprise

VIDEC Group Joint Stock Company (VIDEC GROUP) with 18 years of building and growing, has been experienced many difficult periods since the establishment During the process of the scale development, the operation forms of the enterprise has developed both depth and breadth, from an enterprise with the main fields to be construction, consultation, designing to the investors of projects Human resource scale of the subsidies is stable from 350

to 600 people

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Within the recent years, when the construction and real estate industry is severely impacted by the economic crisis and the changes of the macro-economic policies of the Law on Land etc., which makes many enterprises decline Even on the edge of bankruptcy, VIDEC GROUP still has the stable growth, the reputation is increasing, customers’ trust is maintained, the human resource system is stable In order to obtain such success, it is thanked to the accurate business strategy, the correct enterprise management, the devotion, creation and contribution of the staff of VIDEC GROUP

It is clearly acknowledged that the society with the continuous improvement and changes, the business environment is getting more and more fierce competitions and the success in the past could not ensure the development in the future Therefore, similar to other enterprises, the management of VIDEC always identify that reformation, improvement is one

of the necessary things to be done to develop the corporate culture in order to create the stable driving force from the within Consequently, as the position as the member of the Management Board of VIDEC GROUP, the student select

to conduct the study and defense the topic of “Develop the corporate culture

of VIDEC Group Joint Stock Company” with the wish not only to complete

successfully the study program as well as to contribute to the corporate culture development at VIDEC, from that assist VIDEC culture to be the strong driving force to support the enterprise to overcome the upcoming difficult period, obtain success and become one of the leading corporations in the real estate investment

2 Literature review

Associate Professor Nguyen Manh Quan in the special subject on corporate culture (2012), in the education and training materials for the small and medium enterprises concluded on the nature, and the corporate culture is the separate management method (operation method) which the organization,

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enterprise selects and use to perform the daily business and professional activities In which the participation of all members in the construction and preformation process (created by the organizations and enterprises), will have the private imprints and characters in terms of style and is demonstrated by the behaviours, the signs which can be recognized and identified with other organizations and enterprises (with the same expression) These expressions become the identification sign – brand – of the organizations, and enteprises and are used in daily activities as a means to help the concerned parties to recognize, evaluate, compare and select during the usage process (requirements of the operation environment) In the global business environment as current, these characters can be used as an advantage in business (the requirement of competition)

Associate Professor Pham Thanh Tam in the textbook of Corporate Culture in the International Integration Process (2017) pointed out that in order for the enterprise to be able stand firmly and develop, they need to find the suitable direction and the positive solution Through that, the enterprise may form the style, make clear the identity and the suitable business philosophy to meet the requirements of the market and the trend of the era Many current researchers assumed that culture is an important breakthrough, the strong competitive weapon of the enterprises Culture today is not just a smart adjustment system but also the important driving force for the development of the social economy

The content of the book by Phung Xuan Nha (editor) (2011), Entrepreneurial personality and the business culture in Vietnam in the period of reformation and international integration includes the major issues as follows:

- Construct the hierarchical structure models with the relatively specific, detailed value scale regarding the entrepreneurial personality and the business culture of Vietnam in the period of reformation and international integration

- Evaluate the current situation of the entrepreneurial personality an the business culture of Vietnam to recognize its current position in established value scales

- Survey the comments from the businessmen, management and citizens

on a nationwide scope to evaluate the entrepreneurial personality and business culture and anticipate the change trend in the upcoming time

- Establish the system of 5 opinions and 8 basic solutions to promote the roles of the businessmen and the corporate culture in the market economy and international integration

Thesis of Vo Thi Trach on establishing corporate culture for Quang Nam Pharmacy Joint Stock Company stated that “Regarding the Company, it is necessary to focus on building the culture in the second and third level to create the trust for the employees and the customers It is known that culture and cultural value are ambiguous factors which are difficult to identity and evaluate Cultural evaluation at the value enlightenment is a relatively difficult issue; therefore, the topic still possesses many shortcomings and it is impossible to ensure the complete accuracy The characteristic of the research matter is the corporate culture hence the issue of research scope does not have considerable impact on the business result of the Company”

2.1 International researches

3 In order for the people to enhance the connection, it is advisable to interact more with them

These three principles above are the origin for the development of your enterprise in the upcoming years It will help you to re-assess the definitions of leadership, work purpose and allow you to request people to develop far beyond what they have achieved nowadays

The book “Corporate culture in the digital age” by Shane Green mentioned one of the issue which requires the most attention from the leaders

of the new generations: Whether the culture of a company is sufficient for the employees to become fond of and devoted, from which will create the excellent results or not? Deep understanding of the building of corporate culture means that you understand the desire and demand of the staff, from that, there will be

a silent but thoughtful strategy to improve the living quality of the staff who are the foundation for the success of an enterprise

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- What solutions should VIDEC GROUP use to raise the efficiency of the corporate culture development?

4 Research objectives and tasks

Research objective: propose a number of solutions in order to develop the corporate culture of VIDEC GROUP

In order fulfil the objective above, the thesis has the following research tasks:

- Literature review on culture, corporate culture

- Establish the theoretical basis for the development activities of corporate culture for real estate investment

- Analyze the mention clearly the current situation of corporate culture development of VIDEC GROUP

- Identify the foundation, propose and select several solutions to develop corporate culture for VIDEC GROUP

5 Research subjects and research scope:

Research subjects:

Corporate culture; foundations and solutions to develop corporate culture at VIDEC GROUP

Research scope:

Content scope: Study the solution to develop culture at the enterprise

level with the purpose of being able to develop the corporate culture Based on that, enables the enterprise to be stronger and more sustainable

Space scope: at VIDEC GROUP

Time scope: The research studied the current situation of the corporate

culture development of VIDEC GROUP in the period of 2018-2020, the survey data was in 2020, the solution is up to 2025 with the vision to 2030

6 Research methodology

6.1 Data collection method

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- Secondary data collection:

The secondary data were mainly collected by desk data Such data resources include:

(1) Basic theories concerning the research topic such as culture, corporate culture, corporate culture development

(2) The domestic and international researches on this topic

(3) Journals, articles of the local and international conferences

The study of secondary data will help the student to formulate the research model and develop the research assumption on culture of construction enterprise, to be the foundation for the testing of the current program and proposal of the solutions

- Primary data collection

By questionnaire

To inspect the assumptions withdrawn from the research model, the author will design and distribute a quantitative questionnaire to the surveyed participants The questionnaire will include the general information on the research, the questions revolving around the corporate culture through the activities based on the proposed research basis and the contents collected from the respondents

Scale: Likert scale from 1 to 5 will be used for majority of the questions

in the quantitative questionnaire with 5 is the “highest” level and 1 is

equivalent to the “lowest”

Surveyed participants: The anticipated number questionnaire paper

which will be distributed is about 150 papers and amongst them from 70-100 papers will be collected with the rate of 60-90 valid papers

Survey questionnaire design: The survey questionnaire was designed

with a clear, brief content which is easy to understand and suitable to the purpose and requirement as well as the theoretical frame of the thesis

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- Based on the objective the literature review to identify the required information: factors, variables and scales

- Identify the types of questions;

- Identify the content of each question;

- Identify the language used for each question;

- Identify the logic for the questions;

- Draft the questionnaire;

- Get comments from several teachers on the questionnaire

- Submit the questionnaire to the instructor;

- Instructor agrees to perform the survey

Basic content of the questionnaire:

- Instruction of the thesis name: author’s name, main content to be surveyed

- Explanation of the terms necessary for the survey: culture, corporate culture, corporate culture development

 The method used the available measurement tools

6.2 Data analysis method

- Quantitative method:

This is the type of research using different method (mostly statistics) to quantify, measure, reflect and interpret the relations between the factors (variables)

+ The data collection methods may be scaling, measuring, questionnaire with structure, interview and observation by different tools

+ The deep interview types, instructional questions is the combination with the quantitative method

+ The researcher should select the method so that…

- Qualitative method

Qualitative method is the approach to survey, describe and explain based

+ For example, when we need to know the attitude of the consumers on

a certain brand, we can have the questions as follows:

◦ Why do you like to use this brand?

◦ What is the most outstanding feature of this brand?

◦ Why is it the most outstanding feature?

Besides, the author also used the quantitative measurement tools, to quantify the evaluations index in numbers, from which the level whether to continue to develop or to limit will be identified

7 Thesis structure

Besides the introduction, references, appendix; the content of the thesis

is divided into three chapters:

- Chapter 1: Literature review on culture, corporate culture and corporate culture development

- Chapter 2: Current situation of the corporate culture development at VIDEC GROUP

- Chapter 3: Solutions to complete the corporate culture development work at VIDEC GROUP

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CHAPTER 1: LITERATURE REVIEW ON CORPORATE CULTURE AND

CORPORATEE CULTURE DEVELOPMENT

1.1 Several basic concepts

1.1.1 Culture

+ According to UNESCO:” Culture is the lively aggerate of the activities and creation in the past and at the present Throughout the centuries, such creation activity forms a system of values, traditions and tastes – the factors determining the particular characteristic of each nation”

+ In compliance with Ho Chi Minh: “Due to the purpose of surviving as well as the life purpose, human created and invent language, writing, ethic, law, science, religion, culture, arts, and daily tools for wearing, eating, living and the using method All of those creation and invention is culture”

+ In accordance with the Great Vietnamese dictionary of the Center for Vietnamese Language and Culture – Ministry of Education and Training, edited by Nguyen Nhu Y, Culture – Information Publisher, published in 1998,

“Culture is the material and spiritual value created by human in history”

+ In the book Culture Sociology of Doan Van Chuc, Institute of Culture and Culture – Information Publisher, published in 1997, the author stated that: Culture – there is no place without culture! This demonstrates that all the creation of human on the basis of natural world is culture; where there are people , there is culture

+ In the book “Return to the colour of Vietnamese culture, Professor Phd Tran Ngoc Them thought that: Culture is a organic system of the material and spiritual values created by human and accumulated through the practice action process, in the interaction between human with their natural environment and society

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+ According to United Nations Educational, Scientific and Cultural Organization UNESCO: Culture consists of all the things which make this nation different from another

There are many definitions of culture; however, the popular one which is accepted by majority of people is the following one: Culture is a concept with broad connotations with many different ways of understanding, including all the material and spiritual values which human created during the practical process of working and living throughout history By culture, people can evaluate the development level of the society in certain historic periods

In general, in order to understand in a simple way as Ho Chi Minh defined culture generally as: human need to survive as well as due to the purpose of life, they invented and created writing, language, law, ethic, religion, science as well as literature arts, created daily living tool for living, wearing and the using method All of the things which human invented and made are culture

1.1.2 Organizational culture

Organizational culture is the habits, traditional ways of thinking and working in an organization that are shared by all members of the organization (Elliott Jaques, 1952)

Organizational culture is a system of shared meanings widely accepted

by employees in a given time (Adrew Pettgrew, 1979)

Organizational culture is a system of shared meanings held by members

of an organization that can distinguish one organization from another (Robbin, 2003)

Thus, organizational culture is a system of values, beliefs, and norms shared by members of the organization and guides the behavior of employees

in the organization

1.1.3 Corporate culture

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Corporate culture recently has become a very familiar concept with everyone In each culture, with different knowledge background, there will be different angle on this concept Not only each nation, but also each enterprise also has different approach and acceptance about corporate culture

Currently there are over 300 different definitions on corporate culture Such definitions have come common point is that they consider corporate culture is the entire values established during the formation and development process of the enterprise These values affect and shape the way of thinking, behaving of each individual and create the difference for each enterprise

Complying with Business Dictionary: corporate culture contains all the expectations, experience, philosophy and the values connecting these factors They are illustrated through the images, internal activities, external interactions and the future expectations Corporate culture is based on the values, beliefs, customs which are consented, the principles which are presented in writings or non-writings are developed over time and are accepted by majority to be

accurate Corporate culture is also demonstrated through:

• Business method of the enterprise, the method of interaction with employees, customers and with the community to be further

• The pressure when making decision, developing the new ideas or ways

to show one self’s ego

• How to arrange the organizational structure

• And how the employees committed toward to objective of the organization

In 2000, Deal and Kennedy defined: in a simple understanding, corporate culture is ”the way things get done around here”

In 2004, Needle thought that: Corporate culture includes all the visions, core values, norms, systems, symbol, language, assumptions, beliefs and habits

of all the members in the organization

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Whilst the above definitions of culture demonstrate the formation of culture at the working place, some other definition emphasize the behaviour of the employees and to what extend corporate culture affects directly the behaviour of the employees in the organization

“Corporate culture is a set of shared assumptions that guide the issues that happens in the organizations by defining appropriate behaviour for various situations” - Ravasi & Schultz, 2006

“Corporate culture may affects the way people and group interact with each other, with clients and with concerning parties - Schrodt, 2002

According to Edgar H.Schein – Emritus Professor of management science at MIT, who has great contribution in the corporate management, corporate culture is defined as follows: “Corporate culture is a pattern of basic assumptions that has worked well enough to be considered valid when solving the problems of the enterprise”

Theo PGS.TS Hoàng Đình Phi – (www.nguoilanhdao.vn) In accordance with Associate Professor Hoang Dinh Phi – (www.nguoilanhdao.vn), cultural values of the enterprise consist of the visual symbols and non-visual symbols as follows:

Visual icons: in the group of the foundation elements of the corporate culture level, it is easy to recognize the tangible elements of culture such as: headquarter architect, sign, name, slogan, customs, language used etc These are the external expression of culture

Non-visual icons: is illustrated by the specific characteristics of the communicative behaviours, responses in transaction (polite, thoughtful, whole-hearted, considerate etc.) belief (trust, consistency in actions etc.), cohesion, community attachment (collectivity, community, love, support to each other etc.), prestige of the enterprise (credibility, honesty, transparency, etc.)

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Corporate culture is always the organic unification and support, harmony

of the visual and non-visual icon, in which the visual icons is the representation

of the nature; the core inside is the non-visual icons The identity of corporate culture of the enterprise is represented in both the visual icons and non-visual icons and beside the general culture features, they create the particular characteristics, imprints which is easy to recognize for the enterprise

The system of the visual and non-visual icons become the driving force and the key to motivate every to work; it is the nuclear to connect everyone in the enterprise together, connect the enterprise and the society Corporate culture creates the specific identity to distinguish this enterprise to another one Thanks to this identity, the enterprise is accepted by the society, has the sustainable value and become nostalgic to many generations of employees working in the enterprise

The author agrees the most with the idea of corporate culture is the values, beliefs Form in which everyone in the enterprise acknowledges and think, say, and act as a habit, similar to the spiritual life and personality of each human being, and is the part determining the success or failure in the long term

of the enterprise

1.1.4 Components of corporate culture

1) Orientation, vision, business strategy

This is considered to be the most important element amongst the components of corporate culture It includes the preciseness in management philosophy and key business This is regarded as the basic foundation to build and develop the future operation direction of the enterprise and it controls the decisions Business philosophy is considered to be the beliefs, the value which

is unchangeable by the time or the situation

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Therefore, in order for the corporate culture to be successful, the highest leaders need to have the commitment to guide the enterprise to follow their business philosophy

2) Core value system

Core value system is the key factor of that corporate culture If the vision will affect the objective, the value will have impact on the behaviour, thinking

to implement such vision Particularly, it will lead to the kinds of corporate culture such as:

- Result orientation: emphasize the obtained achievements and results

- Human orientation: focus on the equality, sympathy and respect to the individual in the collective

- Group orientation: encourage the group work, cooperation spirit

- Pay attention to details: such as evaluate the accuracy, approach the situation and matter in the analysis direction

- Safety: ensure the welfare and the stability in the work for the employees

- Creation: encourage testing and accept risks

- Competition: accelerate the competitiveness and striving

Value is the core factor of the enterprise As a result, the uniqueness of the value is not so important as the implementation and maintenance of it

3) Practical factor

All the values are meaningless if we do not implement them There is a philosophy which says that if one enterprise propagates that: ”Human is the our greatest asset”, such enterprise should be ready to invest in people in many ways

Similarly, if one enterprise performs the evaluation on the “flat” hierarchy system, such enterprise should encourage, mobilize many lower members despite disagreements in discussion without fear or negative reaction

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No matter how high or low the enterprise value is, it is necessary to raise the evaluation criteria and promotion policy Simultaneously, the leaders should set the operation rules in the daily work performance of their enterprise

- People will be attached to the place that they love The matter of establishing the corporate culture to be suitable will consolidate the tightness and connection that the organization currently owns

5) The power factor of “historical story”

Enterprises which have built a specific corporate culture are usually attached with unique “historical story”, which is the necessary factor of the enterprise, when the story becomes one part of the heritage in the enterprise which need to be respected and maintained Hence, the ability to explore and report the story is one of the creations of corporate culture

The power factor of such story can be demonstrated by the following example: the way Coca-cola used a large amount of resources to celebrate the heritage, there is even a museum of Coke in Atlanta Or ma be not as formal, but the story about the passion for calligraphy since the early age of Steve Jobs shaped the cultural beauty at Apple

Corporate culture will be stronger when they are found, formed and reported in an interesting and fascinating way

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6) Working environment

Establishing an efficient working environment means that that enterprise has successfully built the corporate culture It is necessary for the enterprises to create a dynamic, professional working environment Besides, it is crucial to create the condition for the employees to find the ways to solve the work promptly and effectively Therefore, the individual should form the habit, working style as well as the behaviour to be civilized and polite

Constituent elements of corporate culture include the internal management procedure and rules of the enterprise, the policies to help the enterprise to develop

in a stable, effective way with standard rules Moreover, this is considered to be the element which helps the enterprise to meet the higher and higher demand on product and service quality from the consumers, makes the customers satisfied when using and becomes the loyal client groups of the enterprise

7) Information exchange system

4.0 technology develops at a very high speed so the enterprise cannot be outdated with traditional line Information exchange system is regarded as the fourth layer in the building and development of corporate culture in order to meet the requirement of making the information exchange to be diverse, fast,

on time and accurate

This system ensures all the information they enterprise collects when necessary is accurate and is kept as archives successfully At the same time, it can be shared to all members of the company to help the company to plan, guide the market strategy establishment …

8) Enterprise movement and activity

This is the last layer of the constituent elements of corporate culture It is presented in the outside and recognized by many people, for example, lives of the employees, enterprise connection programs, company activities Although

be better, indirectly help the enterprise to build the brand

Enterprise movements can motivate the employees to always strive to complete themselves, have sufficient ethics and talents, try to study, do their best and always take the corporate culture to be the lodestar to adjust their behaviour, in order to have the contribution to the enterprise Establishing an efficient, relaxing, dynamic working environment will allow the employees to make the best use of their abilities

Additionally, the determination and enthusiasm in the corporate movements leads to the strong developments through the art activities, community activities, programs to connect employees and leaders, Flashmob dance, volleyball, team building tours, saving implementation movement, employee training campaign etc

1.1.5 Roles of corporate culture

The building and developing corporate culture play a specific role in the following aspects:

- Raise the competitive ability for the enterprise The researchers all think that strong corporate culture will create competitive advantage for that enterprise

- Contribute to create the specific identity for the enterprise The building and developing corporate culture will help the enterprise to confirm its name and to recognize the difference between their enterprise and other enterprises

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- Help the enterprise to create high adaptability There is a fact we have

to admit that only with strong corporate culture, the enterprise will have to ability to adapt well to the continuous changes from the external environment

- Contribute to create the spiritual value for the enterprise Living in a healthy cultural environment with satisfactory consideration from the leaders will make the employees feel optimistic and contribute the most the objective

of the enterprise

- To be the factor creating the attraction for the enterprise, especially the attraction in selection and keeping the talents, helping the employees to feel royal with the enterprise despite difficult scenarios Corporate culture is the image about an enterprise and creates the features to identify with other enterprises

In conclusion, corporate culture determines the longevity of enterprise Many people say that corporate culture is an asset of the enterprise More specifically, corporate culture helps the enterprise: reduce conflicts, co-ordinate and control; create working motivation; create competitive advantages

1.2 Develop corporate culture

1.2.1 Concept of developing corporate culture

“According to the metaphysical point of view: “Development is just a pure increase in quantity, there is no qualitative change of things, simultaneously, development is a process of continuous progress, without experiencing complicated winding steps”

Dialectic materialism method thought that: “Development is an upward movement, from low to high, simple to complicated, incomplete to complete of things”

Culture development is a concept with multi- meanings, including the cultural change in the progressive trend, in the first place, in the basic fields of the

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national cultural life such as human development, culture environment development as well as the basic fields of culture: education – training, science – technology, culture – arts, mass media, industrialization and modernization development, cultural tourism, cultural heritage protection and promotion; ensuring the diverse culture amongst the ethnic groups… Cultural development is not an unilinear development but the polylinear and diverse one

Corporate culture development should be in depth and breadth, which means to make the constituent elements of corporate culture to prosper, grow

in an upward progressive direction based on the espoused values concerning the culture of the enterprise This is one of essential objective of each enterprise in the market economy because it is the “universal key” helping the enterprise to promote their image, reputation and to gain efficiency in their business activities

Propose the concept:

Based on the point of view that corporate culture is the systems of values, standards, notions and behaviours of the enterprise, which guide every activity of every member in the enterprise and create the specific indent of the enterprise The standards of behaviour and the values which are shared within

an organization have strong impacts on the action way of the members in that organization

Corporate culture development is the progressive process from less complete to more complete in terms of all cultural values which have been built during the process of existence and development of one enterprise, from that, the rules, customs are formed deeply into the activities of the enterprise

At the same time, it will control all the emotion, thinking and behaviour of every member of the enterprise in pursuing and performing the objectives

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Arising from the urgency of the matter of developing corporate culture

in Vietnam and the demand to clarify the concept of corporate culture development to serve the formation of the management practice indication, the proposal for an independent concept is very necessary By nature, corporate culture development is an interference set of the concept of development and the corporate culture concept On the foundation of the literature review on the concepts of development and corporate culture, the author proposed the concept: “Corporate culture development is a process of completing the icon system and conforming the characteristic of corporate culture”

Complete the icon system of corporate culture

Complete the icon system of corporate culture is referred to as the process of establishing an intuitive icon system (material value system) of corporate culture on the foundation of selecting sequentially each specific icon The author would like to propose the icon system of corporate culture in Vietnam will contain 6 groups, 21 icons:

Publications: The products which are already designed in the form of documents, images, and other audio visual media to the public (UCC, 1952) which will help the concerned people to recognize clearer the structure of corporate culture (Nguyen Manh Quan, 2015) In the digital era, the traditional publications which is attached with paper gradually expose many limitations (Orphan, 2006) It is necessary to transform to electronic editions (Johnson et

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al, 2015) The icons in the publication group includes: promotional literature, Corporation Identify Program (CIP); code of conduct; social network; sound branding; company regulations; website; in-company publications; Video/ Clip Amongst these icons, publications, corporate identify program, code of conduct, social network and website are the new icons of corporate culture which the author proposed to be supplemented

Symbol: the intuitive image with many hidden meanings by the accumulated culture (Womack, 2005), represents an idea – a deeper instruction about the subject (DK, 2008) Corporate culture is shown in the form of public symbol and the use of these symbols create the sense of solidarity amongst the individuals, demonstrating the ideology of the enterprise in the simple manner which is easy to recognize The logo of the symbol group include: uniform, symbol and other logos

Espoused values: which is determined by the highest management group and is normally publicized (Bansal, 2003), for the purpose of achieving organizational efficiency, social integration and organizational commitment (Howell et al., 2012), it provides guidance to the thinking and behaviour in the enterprise (Schein, 2012) Espoused values play important roles in maintaining the ideas of corporate culture and encourage the behaviours from the members The logos in the group of espoused values are: core values, mission; vision

Slogan: is a concise, impressive phrase which is easy to remember, in order to evoke definite idea or goal (Stevenson, 2010) Along with the enterprise name, symbol, slogan constitute the brand (Dass et al., 2014) Slogan is the most concise expression of the business operation of the enterprise (Nguyen Manh Quan, 2015) The icons in the group of slogans consist of: saying, idiom and slogan

Architecture: as the admit and satisfaction of the demand and values it interacts (Stephen & Kenney, 1994) Architecture is the description of corporate culture which is integrated with every aspect of life, is the result of

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culture (Parvizi, 2009), is the expression of the values, construction method is the reflection of concept of life The logos in the group of architecture include: shop sign; architecture design; furniture design

Ceremony: express the elements of symbol, expression, through that, the beliefs and identity of the enterprise may be formed and changed Besides the influence on individuals, ceremony also plays an important role in maintaining the structure of the enterprise and connecting the individuals Ceremony is the activities which are anticipated in advance and prepared carefully in the form

of activities, official, grave, warmhearted social- cultural events which are performed periodically to tighten the relation and normally organized for the benefits of the participants (Nguyen Manh Quan, 2015) The icons of the ceremony group contain: transfer ceremony, consolidate ceremony, associate ceremony, remind ceremony

Conforming attributes of corporate culture

Conforming the attributes of corporate culture is the process of using resources and manipulate management method in order to affect the attributes (spiritual value system) of the enterprise, changing the current values to the values which are expected by the organization or the management The research identified that attributes of corporate culture has been received the attention from many researchers for a long time, in the world, currently there are more than 20 models measuring the characteristics of corporate finance, typically are Hofstede (1980) with Hofstede's cultural dimension; the model of Deal & Kennedy (1982); The model of Three Levels of Culture by Schein (1985); Denison Organizational Culture Survey by Dension (1990); OCAI model (Organization Culture Assessment instrument) by Cameron & Quinn (1996); Model of Organizational Culture Inventory by Cooke & Lafferty (1987), Thomas et al., (1990), Seago (1997), Ingersoll et al., (2000); Core Employee Opinion Questionnaire (Buckingham & Coffman, 2000)… CHMA

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is the specification of OCAI tool to measure corporate culture of Vietnam bult

by Doctor Trinh Quoc Tri and associates (2013) after 16 years of study

1.2.2 Corporate culture development process

Corporate culture development of each enterprise all experience three stages, the stage of formation and development is the formation one, intermediate stage and finally the stage of maturity and recession

1 Formation stage

The foundation of the formation of corporate culture depends on the founders of the enterprise and their common notions If the enterprise obtain success, this foundation will continue to development and survive, becoming one outstanding, special advantage of the enterprise and is the stable foundation to connect the members In the first period, the enterprise should focus on creating the corporate culture values which are different from the competitions, consolidate such values and transmit to the new people (or select the suitable personnel for these values) The culture in the new, successful enterprise is normally succeed quickly because: “(1) The founders of the enterprise still exist; (2) Such culture helps the enterprise to affirm themselves and develop in an environment with a lot of competition; (3) There are many values of that culture is the achievements obtained in the formation and development process of the enterprise” In this stage, the change of corporate culture rarely happens, or it only happens if there are external impact factors such as economic crisis which make the revenue and profit decline, the key products of the enterprise facing 23 failure risks on the market ….At that time, there will be the changing process and may be the new leaders will create the new face for the corporate culture for the enterprise

2 Intermediate stage

It is the stage when the leading role of the enterprise founders declines or they have already transferred their power to the next generation In the

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enterprise, many changes and many conflicts between parties appear: the conservative party and the innovation party (the people who initiate corporate culture changes to consolidate the prestige and power of themselves) The potential risks when changing the corporate culture in this period are the previous culture characteristics have imprinted in the culture through time, the effort to change these characteristics will put the enterprise into challenges The changes are necessary when the factors which help the enterprise to be successful no longer have power due to the changes from the external environment and the dependent element from the internal environment

3 Stage of maturity and recession

In this stage, the growth of the enterprise decline because the market is saturated or the products become less competitive The maturity and saturation reflect the reciprocal relation between the product of the enterprise and the opportunities and challenges of the business environment Long standing level will play an important role in changing corporate culture If the enterprise experiences a long period of successful business and has formed cultural values, particularly, their specific general opinion, it will be difficult to change because these values have brought the pride and self-respect of the entire enterprise

1.2.3 Elements affecting the development of corporate culture

Internal elements

1 Leadership

This is the element which is considered to be the greatest and has the most influence on corporate culture The leaders need to have the regime to ensure the operation of the regulations they set, the way they act around the issues of work and with their subordinates It will be difficult for the leaders of the company to build the culture for the enterprise if they cannot defense the benefits it brings

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Leaders are the one who understand most clearly their corporate culture because they are the one who establish and develop such culture Through the process of establishment and management the enterprise, the ideology and character of the leaders more or less will be reflected into the corporate culture Therefore, the enterprise must ensure that every leader position from the low to high level always maintain the communication with the employees to communicate the vision, objective, direction of the enterprise

1 Members in the enterprise

The behaviour and interaction among the employees will change the working atmosphere of the entire enterprise Besides the working hours at the enterprise, the tour, extracurricular activities or business trip will help the culture of the enterprise to develop strongly

When the groups are acquainted with each other, they start to understand the strengths, opinions, thinking of each other to improve together That is the great difference between the place with effective group work and the place where the employees work independently

2 Working environment

Working environment definitely has effect on the efficiency of each member in the work A noisy, strict environment which lacks of the connection, sharing, respect, creation… will make the employees impossible to concentrate, lack of connection and striving, which will reduce the work productivity

3 Recruitment strategy

Strong culture brand of the enterprise both contributes to retain human resource and maintain the stable labour source as well as attract many personnel with high quality to apply to work The personnel with high quality and the loyal personnel will contribute to the culture development process in the enterprise

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External elements affecting the corporate culture

1 Culture of the nation, country

Corporate culture is like a sub-culture which lies in the culture of thee nation Each individual in the enterprise is affected by the cultural values of the nations and the country especially in the background of globalization and integration when the labour force in the enterprise may come from many different countries Therefore, the matter culture of the nation reflects the corporate culture is indispensable

Each individual with different cultural identity will form for themselves the different thinking and learning foundation and reaction When gathered together in the organization, this cultural identity will Create a part of the corporate culture

2 Cultural values which the enterprise receives

Corporate culture is formed and affected by the cultural values received and learned Those are the notions, standards, principles and traditions that the enterprise receives in its formation and operation process

Each enterprise has its own culture Such culture of each organization makes the distinctive feature for each enterprise, helping to distinguish this enterprise with others However, they still can learn and exchange the culture with each other, but they need to decide if that culture is suitable to their enterprise, organization or not, they should select in a suitable manner with integration but not assimilation

1.2.4 Instruments to evaluate corporate culture

1) Instrument to evaluate corporate culture OCAI

Organizational Culture Assessment Instrument (OCAI) developed by the Professor Kim Cameron and Quinn is a method used to identify the kinds

of organization culture “OCAI is based on the competitive values framework

to measure the current culture as well as the expected culture of the enterprise”

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This instrument is surveyed by the questionnaire The questions of OCAI are aimed to assess six main characteristics of culture: (1) “Dominant characteristics (2) Organizational leadership (3) Management of employees (4)Organization glue (5) Strategic emphases (6) Criteria of success” This instrument identifies the mixture of the four types of culture which are dominant in one organization These points are then compiled into the scores of four types A, B, C, D and are drawn in one diagram to illustrate the difference between “present” and “wish”

Drawing 1.1 OCAI Corporate Culture Model measured by OCAI instrument

Credit: Kim S Cameron and Robert, 2011

2) CHMA corporate culture assessment instrument

Corporate culture CHMA scale is a method used to identify the types of organizational culture, basing on the competitive value frame used to measure the current culture as well as the desired culture of the enterprise “The core of CHMA is to take the culture research model OCAI of Kim Cameron and Robert Quinn to be the main basis to build the research targets” Therefore, the questions of this scale also aim to assess the six main characteristics of culture:

(1) “Dominant characteristics

Actually, the CHMA scale set is the specification of OCAI instrument

to measure the Vietnamese corporate culture It was built by Doctor Trinh Quoc Tri and the associates (2013) after 16 years of study and it is built in order to help the enterprise to know which types of corporate culture they belong to and the desired type of culture in the future This instrument is used publicly on the website of the non-profit community serving scientific research Vita Share Thee CHMA scale includes 24 questions with the scoring over 4 sub-categories suitable to each representative of four types of culture so that the sum of C+ H + M + A = 100%, in which: “the C style shows a Clan culture, people are like family members who love and connected with each other, it is a place where the enterprise is internal and flexible” –“H style shows a Hierarchy culture, there is order and regulations, there are upper and lower levels who work in a tight, discipline procedure, it is a place there the enterprise is internal and controlled” –“M style shows a Market culture, it has fierce leaders and staff who rush to the market, focus on the victory and achieving the revenue and profit targets, it is a place where the enterprise is external and controlled” –“A style show a Adhocracy culture, the managers are creative, innovative, there is continuous change and it is a place where the enterprise is external and flexible.”