PROBLEM IDENTIFICATION
Company Overview
Vietcombank, officially known as the Joint Stock Commercial Bank for Foreign Trade of Vietnam, was founded on April 1, 1963, originating from the Foreign Exchange Bureau of the State Bank of Vietnam The bank successfully transitioned to a joint-stock company through an initial public offering (IPO) on June 2, 2008.
For over 50 years, Vietcombank has played a crucial role in enhancing the stability and growth of the national economy, establishing itself as a leading foreign trade bank Its contributions have not only supported efficient domestic economic development but have also significantly impacted the regional and global financial landscape.
Vietcombank, originally established as a specialized bank for foreign trade, has evolved into a versatile financial institution offering a comprehensive array of leading services in international trade These services encompass traditional offerings like capital trading, mobilization, credit, and project financing, as well as modern banking solutions such as forex trading, derivatives, card services, and e-banking.
Vietcombank Ho Chi Minh City Branch (VCB HCM), established in 1976, has grown to become the largest branch in the VCB system, contributing over 30% of Vietcombank's total profit before tax in recent years As of December 31, 2016, VCB HCM reported total assets of 102.808 billion VND, total deposits of 99.851 billion VND, and total loans of 76.258 billion VND.
Figure 1: Organization’s structure of Vietcombank Ho Chi Minh City Branch
(Source: Human Resources Department of Vietcombank HCMC Branch)
Background of the problem
Human resources tot nghiep down load thyj uyi pl aluan van full moi nhat z z vbhtj mk gmail.com Luan van retey thac si cdeg jg hg
This part discusses the problem of low evaluation of individual customer service quality at Vietcombank’s service department
The service department, also known as the front office, at Vietcombank encompasses customer service departments and trade offices that provide direct assistance to clients at the counter This department offers essential banking services, including deposits, withdrawals, and money transfers.
Vietcombank's HCMC branch operates eleven trade offices and two customer service departments, catering to both individual and organizational customers Tellers at these locations represent the bank and must possess strong customer service skills While service quality is crucial for both customer types, individual customer service is prioritized as Vietcombank aims to lead the retail banking sector in Vietnam The bank has a significantly larger individual customer base, making a recent report of rising individual customer complaints a concerning issue for its growth Consequently, this thesis will focus exclusively on analyzing service quality for individual customers, addressing two key symptoms: the increase in customer complaints and lower customer evaluations compared to competitors.
1.2.1 Individual customers’ complaints about VCB customer service at the counters
In recent years, Vietcombank has aimed to enhance its market share in the retail banking sector, aspiring to be recognized as the top bank in Vietnam for retail services Despite this ambition, the bank frequently faces customer complaints regarding the quality of service at its transaction counters Notably, the HCMC branch, being the largest, receives the highest volume of these complaints from individual customers.
According to the monthly Customer Service Report from Vietcombank’s Retail Banking Product Management Department, the number of complaints regarding customer service quality at the Vietcombank hotline has decreased.
In recent months of 2017, Page 4 has consistently represented over 60% of complaints, with the HCMC branch contributing the highest share at approximately 20% due to its larger scale compared to other branches The following table outlines the sectors of complaints and common issues that customers have expressed dissatisfaction with after utilizing services at the Vietcombank HCMC branch counters.
Table 1: Popular problems customers complain about
Sector of complaints Popular problems
Customer service at VCB transaction counters (61%)
- Tellers take long time to get the transaction done
- Tellers make errors during making the transactions
- Tellers show bad attitude towards customers
- Card has not been activated
- Customers' information has not been updated
- Debit/Credit card is stuck in the ATM
(Source: Vietcombank’s Retail Banking Product Management Department)
It can be seen from the table that 61% of the complaints for service at Vietcombank HCMC branch is about customer service, including bad service and attitude of employees
Vietcombank has faced numerous complaints regarding its customer service, both through its hotline and on social media platforms A 2016 survey by BuzzMetrics highlighted that Vietcombank ranks among the local commercial banks with the highest number of customer service complaints on sites like Facebook and various forums The service quality of Vietcombank, along with other state-owned banks, is often perceived as inferior compared to private banks such as Techcombank, Sacombank, and ACB A significant concern is the negative attitude of staff towards customers, which constitutes 21% of the complaints recorded on social media.
1.2.2 Evaluation of Vietcombank’s customer service quality compared to its competitors in the banking industry
Vietcombank aims to increase its market share among individual customers by prioritizing customer service as a key factor in attracting and retaining loyal clients Recognizing existing dissatisfaction among individual customers, the HCMC branch conducted a comparative analysis of customer service quality against five other major banks: Vietinbank, BIDV, Sacombank, Techcombank, and ACB This investigation took place in July 2017 across all 11 trade offices and the Individual Customer Service Department of Vietcombank HCMC, as well as select transaction counters of the other banks A market research firm was engaged to deploy secret shoppers who evaluated the customer service experience at these locations, scoring various predefined criteria The overall evaluation scores for the six banks were subsequently compiled.
Figure 2: Evaluation of customer service at transaction counters of six commercial banks
(Source: Vietcombank’s Retail Banking Product Management Department)
Evaluating the quality of customer service is essential for banks such as Vietcombank, Vietinbank, BIDV, Sacombank, Techcombank, and ACB This assessment helps ensure that customers receive the best possible support and services For those interested in further research, resources and full thesis downloads are available, including the latest updates and relevant materials.
Vietcombank's evaluation program, as shown in Figure 2, reveals that it and Vietinbank received the lowest customer service quality scores of 92.9 out of 100 In contrast, private banks excelled, with Techcombank achieving the highest score of 97.4, highlighting a significant disparity in service quality among the banks evaluated.
The evaluation focused on two key factors: the quality of transaction offices and the performance of tellers/officers Vietcombank's transaction offices received a medium score, placing them in the middle range compared to other banks However, the evaluation of Vietcombank's tellers was notably low, with scores ranking almost the lowest among six banks, as illustrated in Figure 3 below.
Figure 3: Customers’ evaluation scores for service provider and service environment of six commercial banks
(Source: Vietcombank’s Retail Banking Product Management Department)
The program evaluated customer service quality of the tellers based on five main criterias, and the scores for each factor are as following:
Table 2: Result of evaluating quality of service provided by Vietcombank’s tellers
Criterias to evaluate tellers Average Score
Receiving and dealing with customers’ complaint timely and responsibly
(Source: Vietcombank’s Retail Banking Product Management Department)
Vietcombank, Vietinbank, BIDV, Sacombank, Techcombank, and ACB are prominent banks in Vietnam They offer various services and products, including the latest downloadable thesis and master's degree resources For more information, you can contact via email at vbhtj mk gmail.com.
Vietcombank received low scores of 73 and 82 for customer attitude and professional knowledge, respectively, which significantly impacted its overall ranking in customer service This highlights ongoing issues with customer service quality at Vietcombank, despite its efforts to position itself as a leader in retail banking The bank's service quality for individual customers falls short compared to private competitors like Techcombank and Sacombank, posing challenges in retaining loyal customers and expanding its market share in the banking industry.
Problem analysis
Previous studies indicate that banking service product quality is crucial for understanding customer perceptions of overall banking service quality According to Parasuraman et al., there are ten key dimensions of banking service quality: access, communication, competence, courtesy, credibility, reliability, responsiveness, security, understanding, and tangibility Access encompasses the availability of help, ATM, phone, email, and account access while abroad Communication involves providing clear answers and keeping customers informed about important information and transaction statuses Competence refers to the ability to resolve issues and possess the knowledge to answer inquiries Courtesy is about handling complaints in a friendly and consistently polite manner Credibility reflects the confidence customers have in the bank's services and its good reputation Reliability pertains to delivering accurate services, fulfilling promises, and maintaining precise records as advertised.
Responsiveness refers to prompt service quickly, quick problem solving and convenient service Security includes the maintenance of confidentiality
Understanding the customers means personalized attention And tangibility is the appearance of physical facilities, equipment, personnel, printed and visual materials
Gronroos 4 , on another manner, argued that perceived good service quality consists of six criteria: professionalism and skills, attitudes and behavior, accessibility and flexibility, reliability and trustworthiness, recovery, reputation and credibility Among tot nghiep down load thyj uyi pl aluan van full moi nhat z z vbhtj mk gmail.com Luan van retey thac si cdeg jg hg
Vietcombank's customer service dissatisfaction appears to stem from two key criteria: professionalism and skills, as well as attitudes and behavior These factors are closely linked to the symptoms of customer discontent reported by the bank's Retail division.
Banking Product Management Department as following:
Tellers take long time to get the transaction done
Tellers make errors during making the transactions
Tellers at Vietcombank exhibit unprofessionalism and a negative attitude towards customers, which, along with their low skill levels, significantly contributes to a decline in the quality of individual customer service.
To identify the specific issues, we will conduct in-depth interviews to validate potential problems, concentrating solely on the low individual customer service at the Vietcombank HCMC branch This targeted approach is necessary due to the challenges of researching the entire Vietcombank system, which comprises around 100 branches By narrowing our focus, we can develop more effective solutions tailored to the unique needs of this branch.
To identify the issue, an initial interview was conducted with a group of four individual customers who visited various VCB HCMC branch offices for transactions These customers shared their feelings and feedback regarding the quality of customer service they experienced at Vietcombank following their visits.
Table 3: Demographic of customers chosen for interview
No Name of customer Age Gender Name of transaction point
1 Nguyen Hoa 25 Female Individual Customer Service Dept
2 Ha Thi Thuy 37 Female Individual Customer Service Dept
3 Le Van Ba 28 Male Le Thi Rieng Trade office
4 Truong Dinh Khoi 40 Male Ton Duc Thang Trade office
Interviews reveal several key factors contributing to the low evaluation of Vietcombank's customer service quality at transaction counters.
Page | 9 including low quality of service space and facility, low interaction quality and lack of reliability
1.3.1 Low quality of service space and facility
The service space and facilities at trade offices encompass both the interior and exterior areas where services are provided Interviews with four individual customers highlighted their dissatisfaction with the bank's space and facilities They expressed that improvements in these areas would enhance their comfort and perception of the bank's professionalism The most frequently mentioned issues include inadequate space and facility conditions.
Unappealing transaction space (including both exterior and interior): trash on the floor; sloughing wall; disorderly equipment arrangement;
Untidy appearance of transaction counter: unorganized documents/trash on the counter; tellers put their food, drink and things unrelated to work on the counter;
For more details, there is two out of four customers interviewed shared that she was not happy with the bank because of the unattractive appearance of the transaction space:
During my visit to the Le Thi Rieng trade office to deposit cash, I noticed a lack of cleanliness both outside and inside the bank Trash littered the entrance, and a broom and mop were left in the way Inside, the office appeared unprofessional, with a folding chair placed behind the transaction counter, presumably for staff lunch breaks.
Mr Ba shared in the interview
Mr Khoi, who had made transaction at Ton Duc Thang trade office, also shared that:
“I have a little bit uncomfortable feeling about this trade office because it is quite old
The paint on the wall is peeling, and the bank's sign and logo are faded, which detracts from its appearance While not all Vietcombank branches are in such condition, I often visit this particular office due to its proximity to my workplace A more modern and luxurious environment would enhance my perception of their professionalism and service quality.
In a recent discussion with four interviewees about their satisfaction with various service environment factors, Ms Hoa expressed her occasional dissatisfaction, highlighting specific concerns related to the service quality and accessibility of resources.
The staff's counter features a cluttered table, often used for drinks like coffee and milk tea, which poses a risk of soiling transaction documents It is essential for bank employees to maintain a professional appearance, as this reflects their respect for customers.
Customer interviews reveal that dissatisfaction stems from varying issues related to the bank's low-quality service environment and facilities, referred to as the "low condition of service environment" in Rust et al.'s research This study highlights the significant impact of the service environment on customer satisfaction levels When the service environment is well-maintained, customers experience greater comfort and perceive the bank as more professional.
Customer interviews reveal that Vietcombank's front-line staff receive low ratings for their interaction quality Many customers have expressed dissatisfaction with the tellers' negative attitudes and lack of accountability One customer, Ms Hoa, highlighted these concerns during her interview.
My experience with local banks, particularly Vietcombank, has been disappointing due to the staff's lack of a customer-oriented attitude While they fulfill their job responsibilities, the quality of service leaves much to be desired On several occasions, I encountered impolite officers who failed to greet me or display any welcoming demeanor For instance, during my wait at the counter, the staff member did not smile or acknowledge my presence, neglecting to say "Hello," "Goodbye," or "Thank you" throughout my visit.
Moreover, Mr Khoi who had a bad experience with the tellers at VCB Ton Duc Thang trade office also shared with us his story:
“When I informed the teller that I could not activate my internet banking account when
Problem justification
This section aims to address three potential issues identified in the initial cause-effect map (Figure 4): inadequate service environment, subpar customer service behavior, and ineffective internal processes.
Low quality of service space and facility
Irresponsible feedback for customer's complaints
Unwillingness to solve customer's problems
Staff makes errors when providing service
Lack of confidentiality in customer's information
Decrease of the bank’s reputation
Loss of current and future customers
Figure 4: Initial cause-effect map
Poor CSB (customer service behavior)
Low condition of service environment
Inefficient internal process tot nghiep down load thyj uyi pl aluan van full moi nhat z z vbhtj mk gmail.com Luan van retey thac si cdeg jg hg
The potential issues identified are supported by a second round of interviews conducted with a teller and three managers from the Individual Customer Service Department at VCB HCMC branch's Le Thi Rieng and Ton Duc Thang trade offices These in-depth discussions followed customer interviews, allowing for a comprehensive understanding of the complaints and facilitating a two-way approach to addressing the problems.
Table 4: Demographic of staffs chosen for interview
No Name of staff Position Name of VCB
1 Ms Vu Thi Huyen Teller HCM City Branch Individual
2 Ms Vu Thi Van Ha Manager HCM City Branch
3 Mr Phan Van Binh Manager HCM City Branch Le Thi Rieng
4 Ms Le Vi Manager HCM City Branch Ton Duc Thang
The four interviewees were asked for their opinions about the three possible problems
The analysis of the collected information reveals that the primary issue affecting Vietcombank's individual customer service is inadequate customer service behavior.
Low condition of service environment
The service environment significantly influences device delivery quality and customer satisfaction, as demonstrated by numerous studies Rust et al highlight that a bank's service environment includes both its exterior and interior appearance, as well as the appearance of service providers, specifically the tellers Lin et al categorize the service environment into physical and social environments, where the physical environment encompasses ambient and design factors, while the social environment pertains to employee presentation and customer interactions.
The service environment significantly impacts the quality of service outcomes, as highlighted by Lin et al This influence underscores the importance of creating an optimal service atmosphere to enhance customer satisfaction and overall service effectiveness.
“Service environment plays an important role in service delivery because environment can foster pleasant emotion reactions, while strenthening customer perceptions and retention”
Ryu et al (2010) highlighted the significant role of the physical environment in shaping customer satisfaction They noted that appealing surroundings, including lighting, decor, layout, and employee appearance, greatly influence customer perceptions Since services are primarily intangible and often necessitate customer presence, the physical environment plays a crucial role in determining the overall quality of the service experience, ultimately impacting customer satisfaction.
Following an analysis of customer-reported issues in the service environment, Vietcombank staff and managers were interviewed to confirm these problems Managers Mr Binh and Ms Le Vi acknowledged the poor condition of the transaction spaces at Le Thi Rieng and Ton Duc Thang trade offices, attributing it to the age of the facilities They assured that improvements, including repainting and replacing outdated equipment, are planned in the coming weeks While preparations for these repairs may lead to temporary disarray, the managers recognize the need for timely updates, which have been delayed due to lengthy approval processes They are committed to learning from customer feedback to avoid similar issues in the future.
Secondly, about the problem of untidy transaction counters, Ms Le Vi - Manager of Ton Duc Thang trade office shared that:
Excessive paperwork can accumulate on tables and counters, especially during busy days with high customer traffic, leading to disorganization As a manager, I empathize with my employees and do not hold them accountable for this issue However, I recognize that customers have valid concerns regarding the clutter Therefore, I will remind my staff to maintain a tidy workspace consistently.
Vietcombank has faced some customer complaints regarding service environment quality; however, in-depth interviews with customers, bank staff, and managers reveal that these issues are mostly temporary and do not significantly impact overall customer evaluations of the bank's service quality.
Customer service behavior (CSB) significantly influences the assessment of service quality within organizations, as demonstrated by numerous studies According to Weiner, the definition of CSB is derived from the research conducted by Ryan and Ployhart.
“CSB is broadly defined as any activities of employees specifically directed toward affecting service quality (e.g., greeting or assisting customers, rectifying service failures).”
Poor customer service behavior (CSB) is a significant factor that negatively impacts customer satisfaction, as noted by Weiner Employee behavior, defined by Mckinney, encompasses how employees react to various workplace situations According to Turkay et al., when employees exhibit appropriate behaviors during service interactions, it enhances customers' perceptions of the organization's service quality.
CSB is crucial for customers assessing their satisfaction with bank services because it highlights the distinction between service-providing and goods-providing organizations, as noted by Weiner The intangibility of services leads customers to depend more on the behavior of service providers as a key indicator of service quality, as emphasized by Bowen Consequently, CSB significantly enhances the evaluation of customer service quality.
From the interviews with customers, they are not satisfied with some customer service bihaviors of Vietcombank’s employees, which include:
Irresponsible feedback for customer’s complaints
Unwillingness to solve customer’s problem tot nghiep down load thyj uyi pl aluan van full moi nhat z z vbhtj mk gmail.com Luan van retey thac si cdeg jg hg
Ms Huyen, a teller interviewed, acknowledged that she and her colleagues occasionally make mistakes, such as failing to provide a warm and welcoming reception or neglecting to express friendliness in their interactions.
In her daily interactions, she often greets customers with a casual "Hello" and bids them "Goodbye," believing that minor mistakes in her demeanor are insignificant However, the reality of serving a high volume of customers can lead to fatigue, resulting in an unintentional display of unfriendliness.
Ms Ha, the Manager of the Individual Customer Service Department at the HCMC branch, acknowledged that Vietcombank's tellers often lack the friendliness and politeness found at other banks Furthermore, she noted instances of unprofessional behavior, including inadequate responses to customer complaints and a reluctance to address customer issues effectively.
Mr Binh - Manager at Le Thi Rieng trade office - also has opinion about this issue:
Cause validation
In Weiner’s research 11 about CSB, there are three factors contributing to promotion of positive CSB:
Training employees about service providing: Formal and informal training are critical for service organizations Lack of or inappropriate training can lead to lower of positive CSB
Motivating employees: Lack of or inappropriate application of motivational tools such as clarifying expectations, goal-setting, providing feedback, recognizing and rewarding positive behaviors are factors that negatively affect CSB
Design of customer service job: Some studies indicate that job design can facilitate CSB in the way of empowerment or knowledge enlargement
Based on these potential causes, two in-depth interviews were conducted again with
Ms Vu Thi Van Ha, the Manager, and Ms Vu Thi Huyen, a teller from the Individual Customer Service department at Vietcombank's HCMC branch, are investigating the primary cause of the issue.
During the interview, Ms Huyen addressed customer complaints regarding the unprofessional behavior of Vietcombank staff, who were perceived as unfriendly and unwelcoming However, she did not recognize any shortcomings in her own attitude or responsibility towards customers.
Balancing customer satisfaction with a heavy workload can be challenging Despite the stress, I strive to meet customer needs and maintain a positive demeanor.
Ms Huyen tot nghiep down load thyj uyi pl aluan van full moi nhat z z vbhtj mk gmail.com Luan van retey thac si cdeg jg hg
Being asked about negative and irresponsible behaviors of some tellers in accessing and solving customers’ problem and feedback to their complaints, Ms Huyen also shared:
The unprofessional behavior of banking staff is evident when they fail to consider the customer's perspective in addressing issues, often shifting blame onto the customers themselves This issue is sometimes observed among colleagues in my department, which I believe stems from a lack of proper training on how to effectively handle customer complaints.
The teller's insights revealed that many of their customer service behaviors are unconscious, stemming from a lack of skills and knowledge in customer service Often, their reactions to customer issues are influenced by their personal work experiences and the culture of their workplace.
For further understanding about this issue, we ask manager of this department - Ms
Ha - for her opinions When being asked about what the bank managers have done to improve the attitudes and behaviors of these officers, Ms Ha shared that:
“Vietcombank nowadays has invested more in customer service, but training for employees about good attitude for customers is still not concerned enough by the managers.”
There is currently no official training program for standardized customer service behavior for new tellers in her department; instead, new employees rely on the experiences of their more seasoned colleagues to learn their roles.
Vietcombank staff currently lack formal training in essential customer service skills, such as meeting customer expectations, enhancing assertiveness, managing stress, and ensuring quality service delivery Weiner (2011) emphasizes that formal training programs are crucial for the success of service organizations, presenting unique challenges due to their interpersonal focus rather than technical skills Additionally, Salim (2022) found that insufficient training in customer service behavior and attitudes leads to lower customer evaluations of the bank's service quality.
Motivation is crucial for fostering excellent customer service among employees; when workers are unmotivated and dissatisfied, it becomes challenging for them to consistently maintain a positive attitude towards customers.
Ms Huyen expressed satisfaction with Vietcombank's employee motivation policies, highlighting the supportive management and favorable benefits that discourage job changes Despite occasional heavy workloads during peak hours, employees view their responsibilities as a duty and strive to meet customer needs Additionally, Ms Ha, the manager of the Individual Customer Service department, noted that the bank has implemented an evaluation system at transaction counters, enabling customers to rate service quality This feedback is crucial for employee appraisals and determining rewards or penalties, reinforcing the bank's commitment to high-quality customer service.
However, this system is just being used from the beginning of 2018, so its effectiveness in enhancing CSB of Vietcombank needs more time to be verified
1.5.3 Design of customer service job
Research indicates that specific characteristics of customer service jobs significantly influence employees' positive customer service behavior Campion et al found that while task enlargement may negatively impact customer service according to employee self-reports, knowledge enlargement—enhancing understanding of procedures and rules—improves customer service as reported by both employees and managers Additionally, Rogelberg et al identified that job characteristics, such as autonomy, contribute notably to variations in customer service behavior.
At Vietcombank's HCMC branch, customer service staff are empowered to resolve customer issues independently; however, they must seek guidance and permission from their managers for problems beyond their control This approach aligns with findings from Campion et al., which suggest that such empowerment leads to improved customer satisfaction.
Page | 22 service behavior of employees because they can solve the problem more actively and customer does not have to wait for long time to be responded
In conclusion, the analysis of potential causes and relevant literature indicates that the primary reason for the poor customer service behavior of Vietcombank's tellers is the absence of a formal training program for employees Additionally, employee motivation and the design of customer service roles are not significant factors, as interviews revealed no serious issues related to these areas.
The chart below shows the final cause-effect map of the problem:
Figure 5: Final cause-effect map
Lack of formal training program (main cause)
Irresponsible feedback for customer's complaints
Unwillingness to solve customer's problems
Decrease of the bank’s reputation
Loss of current and future customers
Poor CSB (customer service behavior)
Lack of motivation in work
Inappropriate design of customer service job
Inappropriate training program tot nghiep down load thyj uyi pl aluan van full moi nhat z z vbhtj mk gmail.com Luan van retey thac si cdeg jg hg
SOLUTION
Alternative solutions
The primary cause of inadequate customer service by Vietcombank staff is the absence of formal training in customer service skills This section will explore potential solutions for developing an effective customer service training program tailored for the HCMC branch of Vietcombank, drawing on insights from alternative literature reviews.
According to Hamza 17 , to design a training program for employees, there are some elements the organization needs to decide:
Effective delivery methods are crucial for a formal employee training program, as they directly influence the knowledge and skills acquired Additionally, selecting the right training sources—whether internal or external—is vital for aligning the training content with organizational needs This ensures that employees receive the most relevant and qualified knowledge and skills, as highlighted by Hrzone.
“There are two distinct types of training One is product/services, policies and operations training, most of which is handled by HR or another internal department
And then there is knowledge and skill-based training that is not company-specific and focuses on productivity, managerial, performance or some other specialized technical skill.”
Before observing some potential customer service training programs for Vietcombank HCMC’s employees, we need to understand what is training
Training is defined by Reid et al 19 as:
A structured approach to enhance attitudes, knowledge, and skills through learning experiences is essential for achieving effective performance in various activities In the workplace, this process aims to cultivate individual abilities while addressing the current and future needs of organizations.
Pinnington et al (2020) defined training as a crucial process for skill development and knowledge enhancement, emphasizing its importance in professional growth and organizational success.
“a planned and systematic effort to modify or develop knowledge/skill/attitude through
‘learning’ experience, to achieve effective performance in an activity or range of activities”
Training in customer service at Vietcombank HCM focuses on systematically enhancing the knowledge, skills, and attitudes of employees working as tellers in the Individual Customer Service Department.
Schneider et al 21 stated three categories of service content, including: technical skills, interpersonal and customer relation skills, and knowledge concerning cultural values and norms:
Technical skills are essential for staff to effectively operate job-related equipment For customer service staff at Vietcombank, commonly known as tellers, this includes proficiency in using computers, software programs, printers, scanners, and other necessary tools.
Interpersonal and customer relation skills are essential for staff to effectively engage with challenging customers and understand their expectations, as highlighted by Schneider et al Numerous studies have explored the components of these skills Yang et al identified five key aspects: service attitude, professional quality, service initiative, service responsiveness, and service consistency.
Understanding cultural values and norms is essential for service employees to deliver high-quality customer service and enhance customer satisfaction This article will explore the necessary training content in detail, particularly focusing on identifying any gaps that need to be addressed for the Vietcombank HCMC branch.
In the study of Pinnington et al 20 , he mentioned that there are two major training methods: on-the -job training and off-the-job training
On-the-job training techniques are implemented in the workplace, where managers and employees engage in daily practices to enhance skills and knowledge This hands-on approach fosters a collaborative learning environment, ensuring that employees receive practical experience while contributing to their professional development.
On-the-job training encompasses various methods, including apprenticeships, internships, and job rotations As noted by Torrington et al., this training approach allows trainees to gain hands-on experience directly within the production or operational environment, making it a widely adopted strategy for skill development.
Off-the-job training techniques take place outside the workplace, aiming to replicate real working conditions This approach allows employees to focus entirely on learning without the pressures of their regular work activities As a result, they can explore new ideas and engage in self-analysis, which is essential for achieving lasting behavioral change.
For customer service training, on-the-job and off-the job training techniques can be applied in the following ways:
Class-based training, an off-the-job training method, involves gathering all customer service department employees for a training course conducted outside the workplace Experienced professors are hired to teach the theory of professional customer service and provide simulated scenarios for employees to solve This training approach benefits the bank by enabling the training of a large number of employees efficiently, saving time and resources Additionally, it serves as an effective orientation for new employees entering the organization.
Field training enables employees to bypass traditional classroom instruction and engage directly in practical work New hires collaborate with experienced teammates, gaining immediate hands-on experience with customers This approach offers the advantage of real-life learning, where employees discover that situations may not always unfold as expected, fostering their ability to improvise and adapt.
The classroom-field-training hybrid combines foundational customer service theory with practical experience This approach typically begins with a brief course to establish essential concepts, followed by hands-on learning through direct interaction with customers, supported by coaching from experienced employees or managers.
2.1.3 Training sources: tot nghiep down load thyj uyi pl aluan van full moi nhat z z vbhtj mk gmail.com Luan van retey thac si cdeg jg hg
According to Atkinson 24, training sources can be categorized into two types: outsourcing and in-house training The Vietcombank HCM branch has the option to outsource training, which involves hiring external trainers or contracting a third-party company to deliver the entire training program Alternatively, the bank can opt for in-house training by organizing the training sessions internally and utilizing its own experts as trainers.
Selected solution for Vietcombank HCMC branch
Ms Ha highlights that new customer service employees at Vietcombank do not receive specific training in customer service skills and knowledge Instead, they undergo a general training course focused on organizational culture and basic banking knowledge Once they begin their roles in the customer service department, they are mentored by experienced staff, but there is a notable absence of a formal training program dedicated to standard customer service practices This article will explore the selection of an appropriate formal training program for VCB HCM's staff, following a review of alternative solutions in section 2.1.
Firstly, in order to have an overview on what content of customer service training is already existed and what content is missing, a short interview was conducted with Mr
Nhan - Manager of Human Resource Management department He shared that:
Customer service staff at the Vietcombank HCMC branch receive training in technical skills upon starting their roles, making it easy for tellers to use technical equipment with the help of guidance documents and support from senior colleagues Employees are also introduced to the organization's cultural values during an orientation day on their first day of work Furthermore, the staff at Vietcombank are known for being friendly and helpful towards one another.
Mr Nhan emphasized the necessity for Vietcombank's service staff to develop interpersonal and relational skills, which are crucial for enhancing customer satisfaction in service organizations This thesis aims to propose a training program for both existing and newly recruited employees at the Vietcombank HCMC branch, focusing on theoretical and practical aspects of these essential skills in customer service.
Mr Nhan, the Manager of the Human Resource Management department, recommended that the Vietcombank HCM branch implement a hybrid training method that combines classroom instruction with field training He emphasized this approach as beneficial since the current customer service staff are actively engaged in their roles.
To enhance customer service skills, newly hired employees should undergo a structured class-based training program immediately after recruitment This training will equip them with essential knowledge and understanding of customer service expectations Following this, on-the-job training should be implemented to reinforce their learning and apply the theories acquired during the initial training.
Mr Nhan emphasized that the hybrid classroom-field training method is ideal for the Vietcombank HCMC branch He proposed that classroom training be implemented for both current and newly hired employees in customer service roles New employees will undergo classroom training followed by two months of on-the-job training, where they will interact with customers under the guidance of experienced colleagues After this period, they must pass evaluations from their line manager and department head before officially taking on their roles independently.
To effectively conduct the training process, a decision must be made between two training sources Based on the advantages and disadvantages outlined in section 2.1.3, it is recommended to outsource training for the class-based courses aimed at new employees.
Mr Nhan highlighted in the interview that front-office staff at VCB lack essential interpersonal and relationship skills To address this gap, training should be provided by highly qualified experts to ensure staff are adequately prepared for standard service quality Additionally, the second phase of training, on-the-job training, will be conducted internally, allowing new employees to gain experience and knowledge directly through their roles without the need for external resources.
Benefits of this training process:
The training process is designed to address the bank's current challenge of inadequate customer service behavior by helping employees understand the expected standards of high-quality customer service This initiative sets a benchmark for staff to follow while interacting with customers Previously, Vietcombank HCM did not implement such training, which significantly contributed to the issues in customer service behavior.
Class-based training for new employees in the initial days of their onboarding establishes a solid foundation for understanding professional customer service This training emphasizes the essential characteristics and positive behaviors required to ensure customer satisfaction in the banking sector.
Secondly, the class-based training course in the beginning is not costly for the bank, since they can train all the employees in one time with high-skilled teacher
After having trained with theory, practicing in real life situations with senior teammate/coach will definitely help them get good experience to start their jobs
The cost of implementing this training program is estimated at VND 60.000.000 based on quotation of Vietcombank HCM Human Resource Department in detail as following:
Table 5: Estimated cost for training program
1 Hiring experts and experienced bankers to give employees lectures about customer service 20.000.000
2 Accommodations and facilities for employees during the course 30.000.000
3 Cost to build up the training program and conduct evaluation test after finish the course 10.000.000
Action plan
Table 6 as below illustrates an action plan timeline which takes six months from May
2018 to November 2018 and will be reviewed at the end of the year 2018
May June Jul Aug Sep
1 Defining purpose and setting goals for the training process HR department x
Planning: Acquiring training resources, hiring trainer, planning schedule
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3 Estimating costs for the whole process
4 Set up meeting to announce the employees about the training HR department x
Implement the class-based course for new employees and current employees in customer service department
Implement the on-the-job training for new employees before they officially start their work
Manager of Customer Service department x
7 Getting feedback and evaluation HR department x
Improve the training program by reduce weaknesses and develop strengths
To effectively prepare a training program for employees, it is essential to establish a clear purpose: to equip front-line customer service staff with standardized customer service behaviors and to provide them with opportunities to practice and learn from real-life situations.
The bank must establish clear and specific goals for its training process, including the target percentage of employees expected to pass the training course and the skill and behavior levels they should attain to enhance customer satisfaction.
Step 2: Plan the training program
Acquiring training resources such as computer software, books or other training materials
Create a detailed schedule for the training program, including the class-based training and on-the-job training
Identify the number of employees that will join the training program
Finding the right trainer for the graduation class is essential for effective learning It is important to download the latest resources and materials to ensure comprehensive understanding Utilizing platforms like Gmail can facilitate communication and access to necessary documents.
Providing the employees brief information on what the program will entail and what employees can expect
Step 3: Implement the training program
After thorough planning and preparation, the next crucial step is to execute the outlined actions It is essential to monitor the process to ensure it aligns with the plan The HR department and managers can segment the program, allowing them to track employee progress and identify remaining tasks.
Step 4: Evaluate and develop the program
After the training program, it is essential to evaluate its effectiveness by gathering feedback from participating employees and their managers Managers should complete a survey detailing the skills their staff have improved upon and assessing their qualifications in the customer service field.
Based on the feedback and survey responses, the Human Resource Department will enhance and refine the training program to achieve improved outcomes in the future.
Conclusion
In the banking industry of Vietnam, Vietcombank has many competitive advantages to compete with other banks such as large-scale organization and prestigious brand name
The individual customer service quality of this bank is perceived to be less competitive compared to smaller banks, leading to low customer satisfaction This significant issue is explored in this thesis, which clarifies several key points.
The analysis of data and in-depth interviews with customers and staff at the Vietcombank HCMC branch reveal a significant issue with the quality of individual customer service.
Several factors contribute to the poor quality of individual customer service, including an unattractive service environment, inadequate interaction quality between tellers and customers, and a lack of customer trust in the bank.
Poor customer service behavior is a significant issue, primarily stemming from the lack of formal training for employees in the customer service sector.
Thirdly, solution to providing training course have been suggested for Vietcombank HCMC branch to improve the quality of individual customer service after considering benefits and costs
This study faced time constraints that limited the ability to explore all relevant references and conduct additional interviews with customers and Vietcombank staff Despite these limitations, it successfully identified key issues in Vietcombank's customer service and proposed solutions to enhance customer loyalty.