Thesis outline core value of PVFC corporate culture final for present

National Economic UniversityNEU Business School CORE VALUE OF CORPORATE CULTURE AT PETROVIETNAM FINNANCE CORPORATION PVFC Instructor: ASSOC.. ANALYSIS CORE VALUEOF PVFC CORPORATE CULTURE

National Economic University

NEU Business School

CORE VALUE OF CORPORATE CULTURE

AT PETROVIETNAM FINNANCE CORPORATION (PVFC)

Instructor: ASSOC PROF TRAN THI VAN HOA, PHD Student: HO NGHIA THU

Class: EMBA9b

TABLE OF CONTENT

1.1 Concept of culture and corporate culture

1.1.1 Definitions of culture

1.1.2 Definitions of corporate culture.

1.1.3 The role of corporate culture in enterprise development.

1.2 Edgar Schein Model on corporate culture and core value

1.2.1 Introduction to Edgar Schein Model

1.2.2 Core value of corporate culture based on Edgar Schein Model 1.2.2.1 Goals

TABLE OF CONTENT

2.1 Introduction of PVFC 2.1.1 Overview of PVFC 2.1.2 Organization structure 2.1.3 Customer network of PVFC 2.1.4 Product & service

2.2 Analysis core value of PVFC corporate culture 2.2.1 Goals

2.2.2 Mission 2.2.3 Vision 2.2.4 Core values 2.2.5 Business Philosophies 2.2.6 Communication and behavior 2.2.7 Social responsibilities

2.2.8 Ritual 2.3 Assess core value of PVFC corporate culture 2.3.1 Achievement

2.3.2 Short comings

CHAPTER 2: CORE VALUE OF PVFC CORPORATE CULTURE

TABLE OF CONTENT

3.1 The goal of building and developing corporate culture of PVFC

3.1.1 Orientations of PVFC’s development to 2025

3.1.2 The goal of developing core values of PVFC corporate culture

3.2 Recommendations to improve core value of PVFC corporate culture 3.2.1 Officialize the core values of PVFC corporate culture

3.2.2 Strengthen communication PVFC corporate culture

3.2.3 Reform the recruitment, training and using human resources

3.2.4 Improve the work environment more open and more attractive

3.2.5 Encourage to enhance the awareness and consciousness of staffs 3.2.6 Increase monitoring to raise awareness and responsibilities of staffs 3.3 Some conditions for PVFC to promote core value of corporate culture 3.3.1 For PVFC leaders

3.3.2 For PVFC managers

3.3.3 For PVFC employees

3.3.4 For PVFC unions

CHAPTER 3: RECOMMENDATIONS

PETROVIETNAM FINANCE CORPORATION - PVFC

 PetroVietnam Joint Stock Finance Corporation (PVFC), a non-banking

financial institution – A member of PetroVietnam (PVN).

 Foundation: previously known as PetroVietnam Finance Company was established in June 19th, 2000, 100% state owned company.

 Mission: the spine (main) financial institutions of the PetroVietnam, aims

at financing PetroVietnam’s development and designing financial instruments to assist PetroVietnam’s Group staff policy.

 Original Charter Capital: quite small beginning equity of 100 billion VND (about 7 million US$ at that time).

 Original Staff: 8 people

PETROVIETNAM FINANCE CORPORATION - PVFC

 After more than 13 years of construction and development, PVFC has become a powerful financial institution of PetroVietnam as the biggest financial institution in the Vietnamese Market and PVFC has been appreciated

as one of the fastest growing non-banking financial institutions in Vietnam.

 Location: 22 Ngo Quyen Street, Hoan Kiem Dist, Ha Noi City.

 Present Charter Capital: 6.000 billion VND (about 300 million US$), include 78% of the share hold of PetroVietnam and 10% of Morgan Stanley.

 Total asset: about more than 90.000 billion VN.

 Braches/Subsidiary Companies: 15

 Staff: about 1,700 people

 Products: co-financing, lending trust, investment trust, investment advisory and brokage, restructuring advisory services, etc.

ANALYSIS CORE VALUE

OF PVFC CORPORATE CULTURE

 Goals:

 Build the PVFC become powerful trade-mark, provides the multiform financial service and high priority for customer especially Vietnam National Oil and Gas Group and for a part of customer in the key economic sectors: energy, mining and infrastructure.

 Vision:

 As financial backbone institutions of the PetroVietnam, creating reputable brands

on the domestic market and the world market, become top 5 of Vietnam commercial banks and top 10 strong banking - financial group of energy sector in the Asian region.

 Mission:

 For the growth of the Petro Vietnam and the economics development of the country.

 Meet demand in financial services, with motto of that is partner of client, for the development and prestige of business;

 Increasing business value and benefit of shareholders constantly

 Create dynamic, professional working environment, equal opportunity for all members of the development;

 Commitment to build business culture for the community development.

ANALYSIS CORE VALUE

Delication - Aspirations

 Have goals, aspirations, strong motivation Dedicated, take high responsiblity for work; did not mind the difficulty, dedicate wholeheartly, strive to complete assigned tasks.

ANALYSIS CORE VALUE

OF PVFC CORPORATE CULTURE

 Active – Creative

 Active, creative, flexible, decisive, honest, objective, create a strong belief are all for PVFC honor.

 Action drasticly – Compliance

 Dare to think, dare to do, dare to take responsibility Thoughtful, responsible, drastic, submissive, compliant, have cooperative spirit for general success Comply laws and regulations of PVFC; Consider professional ethics is as a basis to perform tasks

 Sharing – Taking responsibility for community

 Have loving heart, is responsible with community Participate in social security programs actively of the Government and programs that Group launched Participate in studying extension actively Be always grateful to who dedicated and sacrificed for the country, for the younger generation today Voluntary initiative to help people who faces to difficulties and trouble

by practical actions.

ANALYSIS CORE VALUE

Efficiency

To ensure safety but also to ensure the effeciency of investment activities, credit and other financial activities, on the principle of balancing of the interests between harmony PVFC, customers and employees.

ANALYSIS CORE VALUE

OF PVFC CORPORATE CULTURE

 Transparency

 Publish strategies, action plans and other information in the internal and external agencies as regulations; follow the accounting standards, auditing regulations and ethical business standards Report operating results for objects who have right to inspect, Publish information under law and propagate timely.

 Towards the customer

 Consider customer is centre Meet all needs of customers, priorities to meet the requirements of all customers in the oil and gas industry Focused on expanding relationship with business of all economic sectors and individuals after the transition period With the motto: "Listen - Cooperation - Development", share benefits, responsibilities, advantages and disadvantages with customers.

ANALYSIS CORE VALUE

OF PVFC CORPORATE CULTURE

 Communication and behavior:

 As early as 2001, PVFC Cultural Convention was developed and issued to

5 conventional rules of communication, the core behavior in PVFC The convention was amended, supplemented, and officially completed in 2011

In 2008, the PVFC ethical standards was born and improve conventions of PVFC behavior.

 Cultural behavior conventions with the Corporation

 Action Principle: Consider PVFC is our general house Every thought and action is all to construct, to protect and to enhance prestige, brand, rights

of corporation.

 Ethical Standards: dedicate wholeheartedly and will to strive to build PVFC soon became Financial - Banking Group with sustainable development and strong international brand

ANALYSIS CORE VALUE

OF PVFC CORPORATE CULTURE

 Cultural behavior conventions with one’s self

 Action Principle: every staff and officer needs to be proud of being a member of the big family PVFC Building The beautiful big common PVFC house is build ourselves, should dedicate heart, mind, energy and enthusiasm with constantly aspiration to do that.

 Ethical Standards: occupational passion, learning effort and creative work,

by all way to overcome difficulties and obstacles with the desire to succeed.

 Cultural behavior conventions with colleagues

 Action Principle: colleagues are brothers and sisters in general house - PVFC, That is the our second dear house of our Let think and action as members of a family.

 Ethical Standards: Sincerity, tolerance, commitment, respect, sharing, cooperation, help each other move forward.

ANALYSIS CORE VALUE

OF PVFC CORPORATE CULTURE

 Cultural behavior conventions with work

 Action Principle: make hay while the sun shines, to assure the quality of work that measured by superiors’ and clients’ satisfaction

ANALYSIS CORE VALUE

OF PVFC CORPORATE CULTURE

 Cultural behavior conventions with customers/ partners

 Action Principle: When dealing with clients / partners, every staff is a Marketing officer, is a representative of the Corporation in his / her work, so he/she should be aware of his/her behavior that may bring advantages or disadvantages so he/she has to follow the rules of cultural behavior seriously.

 Ethical Standards: enthusiastic, open, honest, listen with cooperative attitude, help on the basis of equality and mutual development.

 Cultural behavior conventions with society/ community

 Action Principle: Every employees contribute their little heart, mind and force voluntary to build strong PVFC, contribute to build Vietnam become a civilized democratic equitable and prosperous country.

 Ethical Standards: Have loving heart, be always grateful to who dedicated and sacrificed for the country, for the younger generation today Voluntary initiative to help people who faces to difficulties and trouble by practical actions.

ANALYSIS CORE VALUE

OF PVFC CORPORATE CULTURE

 Social responsibilities:

 It can be said that the corporate culture of PVFC is mixing identity traditions of Vietnamese ethnic and businesses in PetroVietnam, with modern style of financial institutions, as well as its own developing way That makes unique culture and unique feature of PVFC PVFC appreciates values of business ethics and human values, always aims to better the social responsibility of business.

 Ritual:

 Corporate culture has received adequate attention from managers Especially, at PVFC, human element is always placed on top, is cared that expresses in all kinds of holidays in Corporate culture (as Transfer, Consolidate, Reminder, Link/ Confederate) are held successfully and effectively by PVFC.

SUMMARY CORE VALUE

OF PVFC CORPORATE CULTURE

 Achievement:

 Good brand and reputation

 Good facilities and infrastructure

 Good relationship with Petro Vietnam and its members

 Fair internal document system

 Many cohesive creative and meaning rituals

 Good working environment

 Implement social responsibility well

SUMMARY CORE VALUE

OF PVFC CORPORATE CULTURE

 Short comings:

 Lack of a clear direction development

 Change leadership and business scale grows fast

 The concern for the maintenance and development of cultural is declined

 Communication and surveillance cultures do not perform well.

 Weak compliance to regulations

 Consciousness, thought of leaders & staff are changing

 Easy recruiting process

 Unfair payment policy

in particular must constantly increase their resources.

Focus on implementing PVFC developing strategy to 2025, convert on run

as Petroleum joint-stock commercial banks model, develop comprehensively and sustainable achieve and maintain Its position in top 10 strong locations joint-stock commercial banks of region in energy sector.

PVFC aims to continue fostering, completing and implementing PVFC corporate culture, it is indeed priceless intangible assets of business

3.2.1 Officialize the core values of PVFC corporate culture

 Over 13 years of building and developing, senior leadership team has changed several times, the context of economic changes, the working environment, vision, objectives, and strategies are adjusted

 It is time to evaluate, re-systemize our core value as foundation of completing working corporate culture in new stage of development.

 Need to set up a specialized department led by a senior leader to coordinate work with consulting firms for ensuring the desired implementation results.

3.2.2 Strengthen communication PVFC corporate culture

 To enhance the exchange of information between senior leaders, middle leaders and employees through official directives, internal information system, meetings, conferences, seminars, encounters.

 Conveying information, it also provides communication, understanding and consensus among leaders, managers and staff at the highest level.

 Propagate official culture system, core value , strategy, objective, mission, vision; take action plans and encourage, motivate PVFC’s member for the high unified implementation.

IMPROVE CORE VALUE OF PVFC CORPORATE

CULTURE

RECOMMENDATIONS

3.2.3 Rectify the recruitment, training and use of talents

 Be necessary to overcome the weaknesses of personnel work Firstly, finalize recruitment policy to attract and select people with ability, passion for work, minimize the recruitment through relationship.

 Next, take stronger innovation of the training, enhance training through internal trainers, professional activities and take training the right people, expertise and have critical, accurate assessment of training result

 Finally, inherit and innovate the evaluation, reward and incentive policies in PVFC.

3.2.4 Improve the work environment more open and more attractive

 The work environment has particularly important role in maintaining and developing corporate culture, especially in present, when we spend more 8 hours per day at the office and contact, communicate with leaders and colleagues in working process.

 Besides policies, office equipment, resources and activities, it is necessary to complete and implement correct workplace behavior which is premise for thoughts and behavior among members in PVFC.

IMPROVE CORE VALUE OF PVFC CORPORATE

CULTURE

3.2.5 Encourage to enhance the awareness and conscientiousness of staffs

 The role of propaganda, education and training are important, should be considered

as key factors in the process of building and development PVFC’s culture.

 The process of communication, education and training must be done regularly; method of implement must be innovated and enriched to make workplace culture become easy to understand and approach.

 There should be many discussions between leader and staff to discuss the orientation, planning, desire of the parties for unifying people’s thought and action.

3.2.6 Strengthen monitoring the maintenance and development culture

 Focus on the way close the gap between our existing values and desired values that means we need to avoid maintaining and developing working culture.

 Culture department, training department and relevant units supervise, monitor, evaluate, take timely reminders, and suggest corrective rewarded in the implementation process, take periodical reports on recommendations to maintain & develop working culture to leaders of the Corporation.

IMPROVE CORE VALUE OF PVFC CORPORATE

CULTURE