COMPANY INTRODUCTION
General information about Vietinbank – X branch
Vietnam Joint Stock Commercial Bank for Industry and Trade (Vietinbank) - X branch was established in the early days of Vietinbank in operation (26 th March,
The branch's head office is situated in District 8, Ho Chi Minh City, with transaction offices distributed across Districts 8, 10, and 11 Currently, the branch employs a total of 116 staff members across 15 departments.
The branch offers a comprehensive range of Vietinbank products, showcasing exceptional competitiveness in the local market These include savings deposits, flexible accumulation deposits, and lending options for large enterprises, small and medium-sized businesses, and households, as well as various card products Beyond contributing to Vietinbank's growth, the branch plays a vital role in fostering local economic development by actively supporting individuals and organizations in the community, enabling them to build families and grow their businesses.
Since its inception, the branch has consistently aimed to excel in all tasks assigned by Vietinbank In 2018, however, the rise in bad debt significantly impacted business efficiency, resulting in only the completion of essential tasks.
Over 30 years of operation, the total deposits at the end of the period at 31 st December, 2018 is VND 5,907 billion, accounting for 2% of the total deposit in the
As of February 2019, Ho Chi Minh City holds outstanding loans totaling VND 3,598 billion, representing 1% of the region's overall loan portfolio After accounting for risk provisions, the total profit achieved is VND 16,839 million.
Diagram 1: Organization of Operation of X branch.
Enterprise customer department
The enterprise customer department at X branch plays a crucial role in driving revenue and profit, comprising 17 employees This team includes 2 management leaders, 13 officers focused on small and medium enterprises, 1 officer dedicated to large enterprises, and 1 trade finance officer.
Accounting department Monetary treasury departme nt
Transaction office -Binh Dien main activity of the department is lending and raising deposit from corporate customers, cross-selling other products Total outstanding loans of this department at
31 st December, 2018 were VND 2,509 billion and the total deposit was VND 1,059 billion.
SYMPTOMS
High turnover rate
The workforce in the department is categorized into three experience levels: 35.3% of employees have over three years of experience, totaling six individuals; 23.5% have between one to three years of experience, comprising four employees; and the largest segment, accounting for 41.2%, consists of seven employees with less than one year of experience.
Figure 1: Human Resource Structure According to Work Experience of Enterprise
The chart below illustrates the rising quit rate in the corporate customer department from 2016 to 2018, with figures increasing from 16.7% in 2016 to 21.4% in 2017 By 2018, the quit rate in this department reached 35.3%, surpassing the rates of other departments within the X branch.
Low sale
In 2018, the enterprise customer department faced challenges, as its sales of loans and deposits fell short of the annual plan and underperformed compared to the Ho Chi Minh City region.
As of December 31, 2018, the enterprise customer department's total deposits amounted to VND 1,059 billion, representing 17% of X branch's overall deposits and achieving only 56.1% of the 2018 target This performance was significantly lower than that of the retail department, which reached VND 4,204 billion and fulfilled 97% of its annual plan, as well as X branch's overall implementation rate of 88.7%.
Figure 3: Total Deposits of X Branch and
Figure 4: The Rate of Implementing Deposit Mobilization Plan in 2018 of X Branch and Enterprise Customer Department
The enterprise customer department at X branch achieved a productivity of VND 61 billion per employee, significantly lower than the corporate customer department in the HCM region, which reported an impressive VND 149 billion per employee.
Figure 5: The Average Productivity of Deposit Mobilizing Implementation of The Enterprise Customer department in X Branch and HCM City Region
By the end of 2018, the department reported a total of VND 2.509 billion, representing 64.7% of X branch's outstanding loans and achieving 98.8% of its business plan However, this performance was lower compared to the retail department's 104.5% and X branch's 100.8% Additionally, the credit balance for this department showed a downward trend, decreasing from VND 2.586 billion in March 2018 to VND 2.509 billion by December 2018.
Figure 6: Credit Balance of the Enterprise Customer Department in 2018
The enterprise customer department achieved a performance of only 140 billion VND per person, significantly lower than the average performance of business customers in the Ho Chi Minh region, which stands at 287 billion VND per person.
High non-performing loans ratio
Credit risk is a fundamental concern for banks, as income from credit activities is a primary revenue source for commercial banks To evaluate and analyze loan quality, the State Bank implemented Circular No 02/2013/TT-NHNN on February 21, 2013, along with subsequent amendments Based on these regulations, Vietinbank has categorized debts into specific groups for better assessment.
Current debts and are assessed as fully recoverable both principal and interest on time
Under 10 days and assessed as being able to fully recover overdue principal and interest and fully recover the remaining principal and interest on time
X b From 10 days to 90 days X c From 91 days to 180 days X d From 181 days to 360 days X e Over 360 days X
3 Debts restructured repayment term a Adjust the repayment term for the first time X b Debt extension for the first time X c
Debts which are restructured repayment term for the first time but still overdue for less than 90 days according to the first restructured repayment term
Debts restructured the repayment term for the second time
Debts which are restructured repayment term for the first time but still overdue for a period of 90 days or more according to the first restructured repayment term
Debts which are restructured repayment term for the second time are overdue according to the second restructured repayment term
Debts are restructured repayment term of three times or more (even if they are not overdue or overdue)
Debts are exempted or reduced because customers cannot afford to pay the full interest according to credit contracts
Debts in one of the following cases have not been recovered during the "Y" day from the date of issuance of the revocation decision:
Debts violated the provisions of Clauses 1,3,4,5,6, Article
126 of the Law on Credit
Clauses 1,2,3,4, Article 127 of the Law on Credit Institutions in 2010
Debts violated the provisions of Clauses 1,2,5, Article 128 of the Law on Credit
Debt at the request of the
According to the State Bank's inspection and supervision results, debts must be classified into specific groups: Group 3, Group 4, and Group 5, indicating varying levels of risk and management required for each classification.
Debts to be recovered according to inspection conclusions and: a During the recall period X b
Past the withdrawal time, according to inspection conclusions, 60 days have not been recovered
Table 1: Concepts about Kinds of Credit Group
From January to June of 2018, X branch’s NPL ratio reached about 0.1% to 0.2%, that was much lower than the average ratio of Ho Chi Minh city region
In July 2018, the NPL ratio of X branch surged dramatically from 0.2% in June to 4.4%, significantly surpassing the regional average of 1.7% This elevated ratio remained relatively stable, fluctuating only slightly between 3.8% and 4.4%, indicating a persistent issue compared to the overall regional trends The highest point of this sudden increase occurred in December 2018.
11.9%, far exceeding the region's average NPL ratio (2.5%) At that time, the total
NPL of X branch was VND 429,003 million, an increase of VND 278,361 million
(an increase of 184.8%) compared to November, 2018 This makes the provision expenses of X branch increase and reduce the year-end profit
Kind of Loan Jan Feb Mar Apr May June July Aug Sep Oct Nov Dec
Table 2: Non – Performing Loans of X Branch and Enterprise Customer
Past the recovery time limit according to inspection conclusions over 60 days, it has not been recovered yet
Debts of customers are credit institutions announced by the
State Bank of Vietnam into special control status, foreign bank branches are blocked with capital and assets
As of January 2018, the non-performing loan ratio for the enterprise customer department at X Branch was 0.2%, with minor fluctuations observed until June 2018 However, in July 2018, this ratio surged to 6.9%, followed by slight variations until November 2018 By December 31, 2018, the non-performing loan ratio dramatically increased to 18.1%.
Figure 8: The NPL ratio of X Branch and HCM region’s Enterprise Customer
Department, X Branch’s and HCM Region’s Enterprise Customer Department
High provisioning expense
The specific provision amount for each customer is calculated according to the following formula:
R: The total specific provision amount must be deducted from each customer
: The total specific reserve amount of each customer from the 1st loan to n
: The specific provision amount to be deducted from each customer for the principal balance of loan i Ri is determined by the formula:
Ai: Balance of principal loan i
Ci: Deductible value of security assets, financial leasing assets (hereinafter referred to as security assets) of loan i
The specific provision rate for each credit group is as follows:
Table 3: Ratio of Specific Provision
In the final months of the year, the X branch experienced a gradual decline in the ratio of non-secured loans, while simultaneously, the cost of provisioning and the provision expenses to total debt ratio saw a steady increase.
Figure 9: Loan Debt Ratio without Collateral of X Branch, the Enterprise
Customer Department and HCM Region
Specifically, the provision expense of X branch increased from January to
In December, significant changes occurred, leading to a notable increase in provisioning costs for the branch By the end of January 2018, the provisioning amounted to VND 700 million, representing approximately 0.02% of the total outstanding loans However, in February 2018, these provision expenses saw a marked increase.
As of the end of January, the total amount reached VND 3,734 million, reflecting an increase of VND 3,034 million or 433.3% Throughout February, March, and April, the fluctuations remained minimal However, in May, there was a notable rise, with the total reaching VND 7,375 million, an increase of VND 2,800 million compared to April.
61.2% Cost of provisioning fluctuates slightly in June and July Through
In September, a significant fluctuation was observed, with figures reaching VND 18,218 million The risk provisioning expense surged to VND 10,504 million, marking a substantial increase of 136.2% compared to the previous month This upward trend continued into October.
In November, the cost of provision surged to VND 52,888 million, doubling the amount from October, while by the end of December, this cost further escalated by VND 20,897, totaling VND 73,785 million.
Figure 10: Provision Expense of X Branch in 2018
The ratio of provision expenses for X branch relative to total outstanding loans has shown a steady increase over the months, surpassing the ratio observed in the HCMC region by November and December.
Figure 11: Proportion of Provision Expense of X Branch and HCM Region in
Low profit
Figure 12: Total Profit after Deducting Provisions of X Branch and HCMC Region in
In the latter months of 2018, the post-provision profit of X branch experienced a decline, falling below the regional average While profits increased from January to October, a significant downturn occurred in November, with a decrease of VND 16,859 million, representing a 14.1% drop from October's figures This downward trend continued into December, with profits declining further by VND 13,633 million, or 13.3% compared to November, ultimately reaching VND 89,075 million.
Jan Feb Mar Apr May June July Aug Sep Oct Nov Dec
Total profit after deducting provisions
Total profit after deducting provisions
Profit rate of branch compared to HCMC area
Table 4: The Profit of X Branch’s Enterprise Customer Department, X Branch and
HCM Region’s Enterprise Customer Department
From January to August, X branch outperformed the Ho Chi Minh City region in profit targets after provisioning, achieving a performance in January that was five times more effective than the regional average However, starting in September, the branch's profit rate fell below the regional average, and by December, it reached only 56.9% of the average profit ratio in the Ho Chi Minh City area This decline has negatively impacted the efficiency of X branch's deposit and loan scale.
Figure 13: The Rate of Implementing Profit Plan in 2018
The results of implementing the profit plan of the enterprise customer department and branch X all turned down sharply from October 2018
ROA = Total profit/ Total amount of outstanding loans and capital
Figure 14: ROA of X Branch and HCM Region in 2018
In 2018, the ROA of the branch demonstrated a steady increase from 0.4% in January to 1.2% in October However, a decline was observed in November and December, with ROA dropping to 1.0% and 0.9%, respectively Throughout most of the year, the branch's ROA outperformed the regional average in the HCM area, but by the end of November, it fell to 0.9% below the HCM region's performance.
PROBLEM IDENTIFICATION
Potential problems
The primary research method involves analyzing financial statements and personnel reports from the X branch, supplemented by in-depth interviews and a theoretical hypothesis framework This approach aims to identify and evaluate the key issues affecting the current state of the enterprise customer department at X branch Potential challenges that the department may encounter include various operational and strategic problems that need to be addressed for improvement.
The analysis indicates that the turnover rate in the enterprise customer department has been rising over the years In 2018, the department had 17 staff members, which met its operational needs and exceeded Vietinbank's maximum employee limit by five However, the current personnel structure has led to significant challenges and increased pressure within the team.
The enterprise customer department, managed by Ms Tu, currently employs 17 staff members, with 8 being new or inexperienced, which constitutes about 50% of the team Given the complexities of enterprise credit, employees must possess in-depth knowledge of corporate finance and industry specifics, alongside strong communication and negotiation skills, as they frequently interact with chief accountants and boards of directors The intricate nature of rewarding business records necessitates a minimum of 1-2 years for an officer to effectively manage customer profiles, during which time they handle only a few clients for learning purposes Consequently, experienced employees bear the brunt of the workload, managing multiple customers while also mentoring new hires, leading to increased work pressure Additionally, Ms Hoai, head of the corporate customer division, noted that staff must not only address existing business challenges but also strive to attract new clients, secure outstanding loans, and cross-sell products, further exacerbating the workload for seasoned employees.
Job stress is a common issue that significantly impacts business performance and employee well-being Defined by Wilmar and Maria, it is a health concern that arises when work responsibilities exceed an employee's capacity to cope, leading to deteriorating health and morale Muhammad and colleagues identify ten key causes of job stress, including workload overload, role ambiguity, role conflict, people management responsibilities, lack of participation, financial insecurity, insufficient feedback, adapting to technological changes, innovative role demands, and limited career growth opportunities Understanding these factors is essential for businesses aiming to improve employee satisfaction and productivity.
Ping (4) also considered job stress as "a first-time outcome of the organization and job" These two authors also gave the following stress-specific job modeling model:
Stressor First – level outcomeSecond – level outcome
Diagram 2: A Model of Job Stress (4)
The relationship between job stress, the working environment, and business performance is closely intertwined While moderate job stress can enhance employee skills and promote career advancement, excessive pressure can lead to detrimental effects on both workers and organizations High levels of work stress disrupt the balance between personal and professional life, resulting in strained family relationships and increased family stress This cycle of stress not only diminishes job satisfaction but also contributes to a higher likelihood of employee turnover, a significant concern for businesses Addressing these issues is crucial for maintaining a healthy work environment and improving overall organizational performance.
Role in Organization business and development plan as well as the profit plan of the economic organizations
High work pressure in the corporate customer department is evident through excessive overtime, with employees often working 60 to 64 hours a week despite a scheduled 48-hour workweek from 8 am to 5 pm, Monday to Friday Even during internal audits, staff are required to work full weekends, which exacerbates the stress This demanding environment prompts employees to reconsider their long-term commitment to the X branch, as they struggle to balance work with personal health, family responsibilities, and skill development.
Ms Tu and Ms Hoai often find themselves consumed by work, even after returning home, as they continue to address customer issues over the phone This relentless commitment leads to a lack of understanding from their family members due to frequent overtime, leaving them with limited time for family care The stressful working environment significantly impacts their work-life balance, as expressed by Mr Quyet, who lamented, “I don’t even have time for personal interests like watching movies, traveling, or learning a foreign language.”
A competitive compensation policy is crucial for enterprises to effectively assess employee value, as research indicates that a lack of competitiveness can lead to significant disadvantages Inequities in compensation can foster conflicts among employees with varying productivity levels, ultimately diminishing overall performance Therefore, it is essential to establish a fair and competitive compensation strategy, which not only enhances employee morale but also strengthens the corporate culture within production and business activities.
Despite the huge pressure on daily workload, Vietinbank's compensation and welfare regime is not really competitive with some other banks in the HCM region
In 2018, Vietinbank ranked sixth in average monthly income among banks, earning between 20-21 million VND per person This income level is lower than that of several smaller banks, including MB Bank, Techcombank, and VIB.
Figure 15: The Average Income of Some Commercial Banks in 2018
Source: https://www.24h.com.vn, https://www.msn.com
Employees often compare their salaries with those of their peers in other banks and companies When they discover that their wages are lower than those of colleagues in similar positions, it can lead to decreased motivation and productivity This salary comparison not only impacts their work ethic but also increases the likelihood of employees seeking opportunities elsewhere.
The annual welfare regime at X branch is inadequate, with employees allowed only one trip costing under 5 million VND per person per year, and family members must cover their own expenses This limited benefit fails to leverage the potential advantages that a robust welfare program could provide Events and parties at X branch can enhance employee relationships, fostering empathy and enabling family members to support their work commitments Such gatherings also present an opportunity for leadership to gain insights into employees' lives outside of work, ultimately strengthening connections and collaboration By engaging in shared activities, both leaders and employees can innovate and develop competitive, practical products that meet customer needs.
The banking sector is a competitive landscape where modern information technologies are utilized to enhance customer service speed and satisfaction To attract customers, banks must offer superior products and services characterized by competitive pricing and efficiency Consequently, employees in commercial banks, particularly in the enterprise customer department, require advanced professional skills, market knowledge, and exceptional sales abilities These employees often interact with leaders of economic organizations, necessitating a high level of service quality and an acute understanding of business operations They must efficiently resolve business issues and demonstrate strong consulting and negotiation skills However, according to Ms Thu and Ms Hoai, the quality of training at Vietinbank is insufficient, leaving staff unprepared to manage customer relationships effectively New employees often need additional training at the branch, which increases the workload for seasoned employees and relies heavily on the initiative of newcomers to seek guidance and learn from their experienced colleagues.
After analyzing information from interviewees, the initial cause – effect map is drawn as blow:
Unfair between contributions and compensations
High Non- Performing Loans in Enterprise Department
Increasing the time to handle bad debts
Lack of vacation and benefit
Lack of product knowledge of sale
Lack of experience in evaluating customer
Lack of experience in managing customer
Unbalance between life and job
Validating problems
High work pressure negatively impacts employee health and morale, leading to an imbalance in their personal lives Many employees struggle to manage demanding banking jobs while caring for their families, resulting in job stress, low salaries, and inadequate welfare policies that foster psychological dissatisfaction This discontent diminishes motivation and significantly reduces work efficiency Consequently, unresolved issues contribute to a rising tendency among employees to quit, with increasing retrenchment rates in high-pressure banking institutions, prompting organizations to invest substantial resources in finding solutions.
Inadequate training significantly impacts companies by leading to diminished work performance, heightened stress levels, and decreased collaboration among employees Workers lacking essential skills often feel overwhelmed by job demands, interactions with customers, and relationships with colleagues This pressure can intensify when employees do not have a clear understanding of their roles.
Businesses must identify and address the key issues highlighted through interviews with staff and leaders at X branch to find effective solutions.
Vietinbank's training system, as explained by Ms Thu, the director of X branch, combines on-the-job and off-the-job training methods While off-the-job training, conducted by the head office, provides general knowledge about the work environment and services, it lacks practical application On-the-job training, primarily occurring at branches, is crucial for employees to gain hands-on experience and develop their skills However, X branch faces challenges with inadequate training plans, effectiveness, and investment New employee training is often left to former officials and managers who are too busy to provide proper guidance, resulting in low training efficiency and negatively impacting personnel quality.
In my 23 years of experience in the banking industry, I've encountered a range of stories, particularly among young employees While some begin their careers overwhelmed by customer pressure, others maintain a positive demeanor and quickly excel in their roles The latter group consistently persuades clients to invest substantial amounts each month The key difference between these two experiences lies in the importance of professional skills and knowledge, which are crucial for success in corporate lending and various other sectors.
Ms Hoai, Head of the Enterprise Customer Department, emphasized the critical need to enhance human resource training quality, as 41.2% of employees lack sufficient experience While most staff possess strong financial knowledge and high educational qualifications, their inexperience results in diminished confidence and problem-solving skills The nature of their work demands a deep understanding and practical experience, which they currently lack Consequently, employees struggle to comprehensively assess customer situations and accurately predict their business capabilities, ultimately increasing the risk of non-performing loans (NPL).
Mr Duong, Deputy Head of the Corporate Customer Department, highlighted that new officers often lack essential communication and counseling skills, leading to decreased sales efficiency Additionally, employees' limited loan management abilities hinder their capacity to identify early signs of customers facing financial difficulties This situation contributes to an increase in bad loans, requiring employees to dedicate more time to debt resolution, thereby reducing their sales opportunities and increasing work pressure.
Mr Tung, a customer relations officer for a large enterprise, and Mr Quyet, who serves small and medium enterprises, expressed that training new employees has become increasingly challenging due to high work pressure They often lack the time to share their experiences, which can negatively impact their relationships with new colleagues who may not understand the demands they face Poor training quality can leave new employees feeling embarrassed and unprepared, leading to decreased confidence and ineffective performance Ms Uyen, another customer relations officer for small and medium enterprises, noted her fear of asking questions during busy periods As a result, some new employees leave their positions after only a few months, opting for different fields due to the stress associated with loan-related risks.
Mr Nam recounted his early experiences in the banking industry, revealing that during his first six months, he questioned whether to stay in the field due to his lack of experience and skills He faced various fears, including concerns about customers, managers, and risks However, as he gained experience and a deeper understanding of credit, his confidence grew significantly.
I can easily negotiate with customers and build a pretty good relationship with them and my colleagues Training and self-training have partly improved my working capacity.”
In conclusion, the findings from interviews and additional content highlight that the inadequate quality of human resource training is a critical challenge that the X branch and the business customer department must address.
The importance of main problem
Labor quality is an key factor in determining the success of businesses (15)
To enhance sales efficiency, Ms Tu, the Deputy Director of the Enterprise Customer Department, emphasizes the necessity for employees to possess extensive knowledge of products and operations, enabling them to provide valuable advice to customers The evaluation of corporate clients is complex, requiring expertise across various fields and industries, including financial appraisal and project evaluation Additionally, strong communication, customer management, and writing skills are essential This comprehensive skill set not only boosts sales performance but also minimizes the risk of bad debt.
Mr Duong, the deputy head of the enterprise customer department, emphasized that enhancing staff training quality can alleviate work pressure for both managers and employees, while also fostering better collaboration among team members.
Enhancing the training quality for inexperienced staff in the enterprise customer department is crucial, as it significantly reduces work stress and pressure This improvement leads to increased sales efficiency, a decrease in bad loans, and fosters stronger relationships among employees.
CAUSE VALIDATION
Potential causes
Training is a comprehensive journey that begins with registration and culminates in the acquisition of knowledge, skills, and attitudes applicable to real-world scenarios For enterprises, it's crucial to implement not only an effective training strategy but also a robust post-training plan that allows learners to practice and enhance their skills in their work This approach is supported by an analysis of relevant theories and data from in-depth interviews, leading to an updated cause-and-effect map for the enterprise customer department.
Lack of product knowledg e of sale
Increasing the time to handle bad debts
Lack of experience in evaluating customer
Lack of experience in managing customer High non- performing loans in enterprise department
Diagram 4: Updated Cause – Effect Map of the Enterprise Customer Department 4.1.1 Unclear training objectives
Assessing training needs, also known as identifying training objectives, is essential for enterprises aiming to enhance business performance Goldstein and Ford emphasize that a well-conducted training needs assessment significantly contributes to the overall effectiveness of training programs and positively impacts employee efficiency Research by Buckley and Caple indicates that establishing clear and effective training objectives can yield numerous benefits, ultimately leading to improved organizational outcomes.
+ Controlling the necessary frequency when organizing training courses + Helping to design the training course with clear orientation, it is easy to assess the effectiveness of training
+ Creating a reference base to assess the teaching effectiveness of trainers and the learning effectiveness of employees
+ With the skills, attitudes and knowledge of the trainees during the training process, it will help to evaluate the performance of later workers
+ Affirming the close relationship between training needs and training
At the conclusion of the training course, employees are equipped to evaluate their learning outcomes Assessing training needs involves determining whether the criteria and objectives align with the trainees' awareness and capabilities This highlights the importance of establishing clear goals, as precise training needs assessments can significantly influence employees' future performance.
Trainers serve as leaders in the training process, with their primary responsibility being the planning and design of training programs to meet specific objectives Effective trainers must excel in both speaking and listening, possessing a broad knowledge base and a deep understanding of the subject matter It is crucial for trainers to deliver the course content in an engaging and dynamic manner, ensuring participants remain interested and motivated throughout The trainer's role is vital in facilitating employees' comprehension and retention of the material, enabling them to apply their learning effectively in real-world situations.
According to Poon, training methods are essential for effectively conveying content between trainers and trainees to meet training objectives These methods are diverse and can be used flexibly, either individually or in combination, to maximize training efficiency Each method comes with its own advantages and limitations, prompting organizations to select the most suitable approach based on their specific work conditions, employee characteristics, training content, and financial resources Training methods can be categorized in various ways, one of which is based on job position, leading to two primary groups: on-the-job and off-the-job methods On-the-job training is particularly popular, as it involves placing learners in specific job roles to acquire the necessary knowledge and skills, making it well-suited for the customer department at branch X enterprise.
Job rotation is a training approach that involves moving employees between different job positions to acquire diverse skills and knowledge This method not only enhances employees' understanding of the challenges faced by their colleagues but also fosters empathy and strengthens internal relationships within the organization.
+ Coaching: In this form, the trainers will be a special supervisor who acts as a tutor in training and giving suggestions to the trainees
Job instructions serve as a structured training method where trainers provide clear, step-by-step guidance on task execution This approach allows trainers to offer immediate feedback and corrections to trainees, ensuring they understand how to perform their duties effectively.
Trainees will collaborate in committees to address real-world challenges faced by enterprises, fostering teamwork and collective problem-solving skills This approach aims to enhance group dynamics and encourage effective communication among participants.
+ Internship training: The instruction combines theory and practical aspects for the practitioner This method mainly applies to trainees in the field of machinery and commerce
While on-the-job training offers numerous benefits, it also has its limitations, prompting the use of off-the-job training methods to ensure comprehensive employee development Off-the-job training encompasses various techniques that occur outside the immediate work environment, including case studies, incident methods, role-playing, in-basket exercises, business games, grid training, lectures, simulations, management education, and conferences These methods play a crucial role in enhancing employee skills and knowledge beyond their everyday tasks.
Diversifying training methods enhances the effectiveness of training courses and engages trainees more effectively Despite this, the training approach at X branch remains limited to out-of-work training, which may hinder overall development and interest in the training process.
Training content is essential in the design of training programs, focusing on both human and technical skills As highlighted by Poon JMLao and Othman K., effective skills training equips employees with the necessary background knowledge to perform their tasks proficiently, enabling them to achieve work goals and assist colleagues as mentors Additionally, this training provides opportunities for employees to embrace new technologies and enhance their professional skills.
The growing competitiveness among commercial banks necessitates that employees selling products possess exceptional customer care skills and professional consulting abilities To meet job demands effectively, training programs must be practical, high-quality, and tailored to the specific needs of the right individuals.
Pike highlighted the crucial role of time management in executing training activities, ensuring that content is communicated effectively throughout the course duration It is essential to monitor this process from start to finish, allowing ample time for trainees to ask questions and provide feedback Additionally, Mitchell (1998) emphasized the importance of incorporating breaks during training sessions to maximize the participants' receptiveness and engagement.
The frequency of training plays a crucial role in achieving desired outcomes and objectives Excessive or insufficient training can hinder an effective personnel training strategy Overloading employees with too many training sessions can lead to increased costs and negatively impact their health and personal lives Additionally, an overwhelming amount of new information can prevent employees from fully absorbing knowledge and stifle creativity during the training process.
Work density varies throughout the year based on different job roles, and individuals can optimize their participation in training courses depending on their workload and personal schedules Additionally, unforeseen circumstances, such as health issues and job demands, play a crucial role in determining the best times for training engagement.
Validating causes
Based on the analysis of the content and in-depth interviews conducted with employees and managers at Vietinbank - X branch, three primary factors have been identified that contribute to the inefficiencies in the quality of training courses.
The primary aim of training and developing human resources is to enhance the efficiency of businesses by maximizing the potential of existing employees This involves helping staff gain a clearer understanding of their roles and career paths, fostering self-awareness in task execution, and motivating them to improve their performance Additionally, training aims to enhance employees' adaptability for future challenges Each training course must have specific and detailed objectives to ensure that learners achieve meaningful results, as emphasized by Mr Duong, the deputy head of the enterprise customer department.
Vietinbank's training courses currently lack clear objectives, resulting in outcomes that do not align with the bank's strategic direction Ms Hoai, Head of the Enterprise Customer Department, highlighted that ineffective evaluation and poorly defined training goals lead to courses that do not meet the needs of potential trainees or the branches This misalignment renders training unnecessary and focused on targets rather than actual requirements, ultimately wasting human resources and diminishing personnel efficiency.
The quality of the training team at X branch remains a significant limitation, primarily due to reliance on university lecturers who lack practical experience in the credit field Although some trainers from other branches were temporarily invited, their limited time hindered comprehensive experience sharing Furthermore, while these trainers may possess practical knowledge, their inadequate pedagogical skills lead to reduced teaching efficiency, as noted by Ms Tu, the deputy director of the enterprises department Mr Duong also echoed these concerns.
Many trainers lack practical knowledge, hindering their ability to assist learners with real-world problems This results in lessons that are less engaging due to a focus on theory over practical examples In some cases, learners find themselves explaining practical issues to the trainers Consequently, trainers at X branch have failed to fulfill their roles as effective instructors, interpreters, and counselors, leading to a significant decline in training objectives and overall effectiveness.
Effective training and post-training evaluation are essential for employee development, as poorly organized training can lead to wasted time, increased stress, and diminished confidence Vietinbank recognizes that inadequate post-training assessments hinder the improvement of training quality and the development of new courses that align with evolving job requirements and market conditions However, Ms Hoai notes that the current post-training evaluation process at Vietinbank is ineffective, resulting in a significant gap between initial training goals and actual outcomes The focus remains on subjective evaluations rather than leveraging insights from previous courses to enhance training content and quality.
In summary, according to what has been analyzed above, we can provide the final cause – effect map as below:
Diagram 5: The Final Cause – Effect Map of the Customer Department
ALTERNATIVE SOLUTION
Solutions for setting clear training objectives
Establishing training objectives involves translating training needs into measurable and observable behaviors Clear and relevant objectives highlight the anticipated changes in both organizational and individual performance, serving as a foundation for designing effective training programs These objectives should specify the desired behaviors and the conditions under which these behaviors are expected to occur, allowing for assessment both during and after the training, while also defining the acceptable performance standards.
By identifying training objectives, we will identify the results of the training activities, including:
1) Specific skills that workers need to be trained and skills acquired after training
2) Number and structure of trainees for each training course
Therefore, the identification of training objectives means the expectations of learners and businesses for the training courses It is also the basis for measuring the effectiveness of the course
The corporate customer department of branch X focuses on identifying essential skills for credit-related roles, including appraisal, negotiation, and customer management skills Employees must manage a high volume of customer work, making job rotation challenging due to the need for in-depth knowledge of customer profiles Consequently, the timing of training significantly influences both employee work plans and training effectiveness Ms Thu, the branch director, highlighted that a lack of experience, appraisal skills, and customer management capabilities within the enterprise customer department poses a substantial issue that requires immediate attention.
The recent challenges at X branch have significantly impacted the quality of loans and the customer development efforts within the enterprise customer department To address these issues, she offered valuable suggestions for establishing effective training objectives moving forward.
Recognizing the crucial role of building the right training objectives to overcome the existing problems in training, below is the proposed solutions:
Solution 1: X branch will build training objectives by themselves:
1) First, training a qualified team in evaluating training objectives They must be people who are knowledgeable about the job in the enterprise customer department and know how to analyze the work in detail This is for creating a group of personnel that can evaluate training objectives professionally for
Diagram 6: The Analysis Process of Employees’ Performance
2) Then, identifying the skills and knowledge that employees in this department need to be trained to meet the business requirements and business development orientation of X branch This work needs to be done in a detailed, scientific way to ensure that trainees after training can meet the requirements of work, business activities of X branch
3) Next, determining the number of trainees and the trainees structure for each course to ensure that trainees can acquire the best effectiveness This step
2 Identifying the problem of "not doing" or "not wanting to do"
4 Eliminating obstacles when doing work
7 Changing job 8 Transferring or leaving
9 Encouraging employees helps to ensuring that people who are religious are comfortable and absorb the most effective training content
4) Finally, determining the training time to match the lesson content, in accordance with the work plan of the employees during the year It will to ensure that it is appropriate to the conditions of the trained person: health, personal plan, work plan, and the training content
The scientific and effective evaluation of the training objectives can bring the benefits as follows:
Conducting a training survey and assessment is essential for identifying training objectives that align with employees' actual needs and management's specific requirements for achieving desired business outcomes This process ensures that the training content is relevant and engaging, ultimately enhancing the effectiveness of the training program.
+ Second, identifying the right training objectives will help the branch avoid wasting inappropriate courses This is significant and has a great impact on the performance of X branch
Identifying the appropriate training objectives presents an opportunity for the X branch to enhance the quality of its training programs, technology, and essential teaching staff, ensuring they align with the demands of a globalized environment.
According to this solution, the related costs are listed as follows:
Training cost to identify training objectives in a scientific and effective way: VND 50,000,000
Cost of analysis and identification of specific skills that employees need to achieve after training: VND 20,000,000
Cost of determining the number and structure of trainees needing to be trained: VND 10,000,000
Cost of surveying training time in accordance with the course content, trainees' work plan: VND 10,000,000
Expenses for processing collected data from the survey training objectives for employees: VND 25,000,000
Total cost for this solution: VND 115,000,000
Solution 2: X branches hire professional training institutions to set up training objectives
The X branch will communicate the common training objectives to training centers, aiming to bridge the performance gap between employees' current skills and the skills required for their roles This gap analysis helps identify what affiliates seek to achieve from the training program Subsequently, training center experts will enhance the list of training objectives to ensure comprehensive coverage.
The professional training center will define performance expectations and the conditions for implementing training tasks They will establish standards that serve as performance goals, such as completing tasks within a specified timeframe The construction process will emphasize the connection between training objectives and real-life applications.
Finally, the training center will concretize the training objectives so that it can be assessed easily Usually it is described according to SMART standards:
+ Specifically: The goals are clearly defined and help employees can easily understand and implement
+ Measurable: Guaranteed goals can be measured through observation and quantitative behavior
+ Attainable: The set objectives do not exceed the attainable ability of the employees It must certainly be achievable
+ Relevant: Ensuring that the duties of employees stated in the training program are necessary with the general business objectives of X branch
+ Time - bound: Time to achieve the objectives must be specific and strictly implement the management schedule over time
In addition to the benefits mentioned in solution 1 above, it also has the following advantages and disadvantages:
This solution will be primarily executed by professional training centers, allowing for quicker implementation and clearly defined training objectives based on measurable evaluations Consequently, the training goals are developed more scientifically, leveraging the strengths of both domestic and global training industries.
While this solution presents benefits, it also comes with significant drawbacks, including high costs Additionally, if experts lack a deep understanding of the banking industry's nuances and the specific responsibilities of credit officers, the training objectives may become unrealistic and exceed the employees' capabilities.
The total cost of this solution is estimated about VND 200,000,000 – 300,000,000
Therefore, in the two proposed solutions, solution 1 is the most optimal option for X branch in building training objectives, based on the current condition of X branch.
Solutions for developing professional trainers
"Practice" encompasses two key meanings, emphasizing the authenticity of trainers Firstly, trainers are often experts in learning and workplace training Secondly, internal trainers possess specialized knowledge about local processes related to various job roles Boreham, Fischer, and Samurcay highlight that trainers play a crucial role in demonstrating, developing, conveying, and transforming valuable job-related knowledge, thereby enhancing the effectiveness of task management and job performance.
Emphasizing practical training and the development of trainers is crucial to mitigate daily work risks and enhance service quality By leveraging the experiences of trainees who act as pioneers, organizations can quickly and effectively improve their processes Recognizing the significance of trainers, several global organizations have established specific criteria for their qualifications Notably, companies in Germany and other European nations employ full-time faculty trainers who possess specialized training certificates and expert qualifications in their respective fields.
Professional training centers are crucial for organizations that seek trainers with strong educational backgrounds and extensive experience Many leading companies globally employ seasoned education professionals to deliver effective business training for their employees as needed.
Recent research highlights that many corporate organizations are increasingly leveraging external training services, which is closely associated with the professional growth of training professionals.
Ms Tu, the deputy director of the corporate customer division at Vietinbank, echoed expert opinions on training research, highlighting that the bank's training team primarily consists of part-time staff rather than professional trainers This lack of expertise compromises the quality of training and hinders trainees' ability to effectively acquire skills, ultimately impacting other governance activities She emphasized the importance of developing a strong team of professionals in both work-related and non-work training as a crucial solution.
With the theoretical bases drawn from the research and information collected during the interview at X branch, some solutions may be proposed for developing professional trainers as follows:
1) The first solution: Hiring training experts from universities, professional human resources training centers to perform the training of the number of courses by subject or buy training packages of professional training organizations This will help quickly resolve the quality of the current training team of X branch However, it also has a drawback that is not high effective to meet the needs and objectives of the practical training
2) The second solution: Developing a contingent of training experts from the current managers of X branch by giving training at well-known training institutions and recruiting more experienced managers from other banks This solution brings great benefits These are groups of internal training experts with a lot of practical experience, which are effective in the process of handling employees’ current jobs However, this sub – solution needs a long time
3) The third solution: Developing a contingent of training experts from the current managers of X branch, other banks and taking advantages of the training services of well-known training organizations This helps X branch’s trainers have time to develop themself and have timely solutions to support the quality of the current trainers
Among the three proposed solutions, the third option stands out as the most effective for the X branch to address its immediate training challenges Additionally, this approach enables the X branch to develop its own team of training experts, fostering stability and enhancing practical experience.
From practice as well as research by many researcher, we can generalize the benefits that a team of professional training experts of the third solution can bring as follows:
Visual aids are the most effective tools for conveying course content to learners, playing a crucial role in enhancing knowledge and experience They provide guidance, explanations, and advice, helping trainees to better understand the relationships between concepts and how to apply the knowledge gained in real-world situations.
Building a skilled training expert team is essential for the X branch to effectively conduct training courses, meet educational objectives, and significantly reduce costs by minimizing the need for additional training programs.
Third, taking advantages of the professionalism and experiences of many training experts in many training centers and institutes in our country and in the world
Along with the benefits achieved, these solutions also require the following costs:
Order Solution Content Estimated cost for one year
Solution 1: Hiring experts and / or training services
- Expenses for hiring training experts / services from professional training organizations
Solution 2: Developing a contingent of training experts from current managers of X branch and other banks
- Cost of training pedagogical skills for managers
- Cost of training managers through short-term professional training courses abroad, seminars to share experiences
Solution 3: Developing a team of training experts from the current managers of X branch and taking advantage of the training services of well-known training organizations
- Costs for hiring training professionals / services from professional training organizations
Order Solution Content Estimated cost for one year
- Cost of developing an expert team with current mangers of X branch
Solutions for improving the quality of training evaluation
Evaluating training results is a challenging yet essential task for businesses, as it enables them to measure the knowledge and skills acquired by trainees This assessment helps determine the trainees' ability to apply what they've learned in their work, ultimately allowing companies to gauge the training's impact on overall business performance, including increased revenue, enhanced labor productivity, and reduced turnover rates.
To achieve a comprehensive review, it is essential to gather comparative data before and after the training The training unit will carry out the evaluation based on this data Recent surveys indicate that enhancing practical training is crucial for effective outcomes.
Mr Duong highlighted that neglecting to thoroughly assess the effectiveness of X branch's training programs results in significant issues, including an inability to accurately gauge the success of the implemented courses This oversight diminishes training quality due to insufficient feedback from both trainees and trainers, ultimately leading to training content that fails to align with the actual needs and objectives of the participants.
After a thorough evaluation of the training conducted at the X branch, insights gained from comprehensive interviews indicate that the Kirdpatrich evaluation model is an effective solution for enhancing the quality of beating work This model comprises four distinct levels.
1) Level 1: Evaluating learners' reactions to see if they are satisfied with the course they attend? Are they satisfied with the teacher, with the training method, equipment or not? At the branch, the assessment of learners' reactions is done regularly and easily through surveys and interviews
2) Level 2: Assessing the learning results of trainees, mainly assess the knowledge and skills that learners achieve after the course This is also the basis for comparing whether the initial training objectives are achieved or not? The assessment of learning results of learners is done regularly and easily through examination written in the form of thematic reports, projects, tests, situations, interviews,
3) Level 3: Assessing the behavior of learners This level assesses the behavior of other learners before and after studying, how they use the knowledge and skills they have learned in practice? through collecting information from their results of the performance, superiors, colleagues, subordinates, customers, This shows changes in the behavior of trainees before and after training, the ability to apply training knowledge into daily work
4) Level 4: Measuring the impact of training on business activities of X branch
The training course is designed to positively impact the X branch by enhancing lending and deposit turnover, reducing production costs, and lowering the turnover rate This evaluation will help assess the effectiveness of the training in relation to the X branch's overall business performance.
With an appropriate and effective solution for the training evaluation after training, it will bring practical benefits as follows:
+ First, it helps business owners assess the effectiveness of investment in training and the effectiveness of investment resources
Evaluating training results enables enterprises to identify ineffective training content, allowing them to modify or eliminate what does not yield the desired outcomes This process also provides valuable insights for improving future training courses.
By conducting surveys with both trainees and trainers, the training department can gather valuable insights to develop training content that aligns with societal trends and job market demands, making it more relevant and practical.
+ Fourth, training evaluation also helps managers make decisions (train or not, whether to improve the training content, ) and future training courses
The costs associated with this solution are listed in detail as follows:
Solution Content Estimated cost for one year
Solutions to improve the quality of evaluation after training
Evaluating learners' reactions to deployed courses VND 10,000,000
Evaluating learning results of trainees VND 20,000,000
Measuring the impact of training on X branch’s business activities VND 30,000,000
Overall evaluation of the effectiveness of the training courses has been implemented and lessons learned have been withdrawn
Table 7: Estimated Costs for Solutions to Improving the Quality of Training
Kirdpatrich's method offers a straightforward and effective solution for the X branch Additionally, incorporating Kaufman's model as a reference can enhance our approach, as it emphasizes student perspectives and builds upon Kirdpatrich's foundational framework.
X branch will establish criteria to evaluate the quality and availability of human, financial, and material resources for training courses, focusing on the input level Following this, the branch will assess learners' acceptance and the effectiveness of training facilities, methods, and processes, measuring trainees' reactions to the training experience.
The X branch will evaluate employees' performance in the classroom by examining their interaction skills with teachers and their sensitivity in handling case studies Following this assessment, trainees will be tested on the knowledge they have acquired during their training.
The branch will assess the training's effectiveness by analyzing the investment costs and the outcomes of the course, focusing on return on investment and overall performance metrics.
Finally, we measure social contribution through evaluation of customers and society
Similarly, besides the general benefits of the Kirdpatrich’s model, Kaufman’s model solution also has the following advantages and disadvantages:
The method serves to create both initial training programs and on-the-job training, relying primarily on the trainees' perspectives for assessment However, this approach has notable limitations and lacks comprehensiveness To enhance the effectiveness of new training programs, it is essential for the X branch to evaluate the impact on society and customers.
Solution Content Estimated cost for one year
Solutions to improve the quality of evaluation after training
Developing criteria to be able to assess the quality and availability of different resources and assessing the learners' acceptability and effectiveness of training
Assessing the ability of trainees through tests and jerks in training environment
Calculating the effectiveness of the training with financial criteria VND 10,000,000
Measuring social contribution through evaluation of customers and society VND 50,000,000
Table 8: Estimated Costs of Kaufman's Training Evaluation Method
The total cost for this solution is calculated in detail according to the above table with VND 100,000,000.