Luận văn development of corporate culture at thaco group phát triển văn hóa doanh nghiệp tại thaco group

Ohjectives The thesis's research objectives include systematizing some basic theoretical issues on comporals cullure and development of corporate culture, evalualing the results of deve

PHAT TRIEN VAN HOA DOANH NGHIEP

TAI THACO GROUP

LUAN VAN THAC Si QUAN TRI KINH DOANH

HA NOI - 2020

PHAT TRIEN VAN HOA DOANH NGHIEP

TAI THACO GROUP

Chuyên ngành: Quản trị lính doanh

Mã số: 6 34 01 02

LUẬN VĂN THẠC SĨ QUẦN TRỊ KINH DOANH

NGƯỜI HƯỚNG DẪN KIIOA HỌC: PGS TS NGUYÊN NGỌC THÁNG

TIÀ NỘI - 2020

DECLARATION

The author confirms that the research outcome in the thesis is the result of

author’s independent work during study and research period and it is not yet

published in other’s research and article

The other’s research result and documentation (extraction, table, figure,

permission (if required) is given

The author is responsible in front of the Thesis Assessment Committee,

Hanoi School of Business and Management, and the laws for above-mentioned declaration,

Date

TABLE OF CONTENTS

LIST OF TABLHS HH hước

TIẾT OF CIIARETS AKD FIGURES Mì

1.1 Overview about the sludy on corporate culture development 5

1.2 General cơrIoepl 0n corporale gullUfe :-sssccccecc Hai 9 1.2.1 General sonoept on culture and business cuÌfure ¬ 9

1.2.3 Identity of corporate culture HH2 022 ¬ 1

ˆ13 " ẻ.ẻ 12

1.3 Neoessity to design and develop corporate oulture 13 1.3.1 For enterprise:

1.4.1 Visual characteristics of corporale culture - 15

1.4.2 Non - visual characteristics of corporate culture 1

1.5.1 Managoment and business philosophy ¬ 19

1.5.3 Procedures and rugulalions - - - 19

1.5.4 Information exchange system co 20 cev con ¬ 20

1.5.5 Movement, rituals, etiquettes TH HH nen grec TH re 20

ION a 5a 20

1.6.2, For nơn-eHterprisS:

1.7 Steps of corporate culture development

CHAPTER 2 RHSHARCH MHTHODOLOGY

2.3, Data eollectioh sourC@ c HH mat re 35

2.4, Data collection method and tools

2.4.2 Data colleclion Louls

2.5 Data analysis and processing, method seo

2.5.2 Statistios and comparison methodology _— 28 2.5.3 Descriptive statistios methodology sec _— 38

DEVELOPMENT IN THACO GROUP

3.1 Overview about Truong Hai Automobile Joint Stock Company (THACO) .30

“3.2.2, Corporate culture development through 8 T principles in THACO 4] 3.2.3 Corporate culture development through THACO song "¬

i

3.2.4 Cultural development through Code of Conduct In THACO 42

3.2.5 Corporate culture development through TITACO TIR evaluation culture 43

3.2.6 Corporate culture development through THACO typical publication

IH1882ZN€ cà oi 3.2.7 Corporate culture development in other charity activities A7

3.3 Rxisling sIahis of corpkwale culture m THAOO Hưough nor-visual characferisics 48

3.3.1 Corporate culture development through converting THACO culture into

3.3.2 Corporale culture development through emphasis level in THACO 3 3.3.3 Corporate culture development through working environment in THACO

4.1, ThACO’s development and operation orientation to 2020 ¬" - 60

42 Corporate culture development solution in THACO 64 4.2.1 Improve working capacity of the Culture - Communications Board .64

4.2.2, Improve and raise the awareness on corporate culture for the employees 66

4.2.3 Perfect the annual AR evaluation procedure 67

4.3.4 Design the behavior culture manual, governance regulation and rule system,

4.2.6 Set up corporate cultre đevelopment procedure In THÁCO 70 4.3, Some recommendations erstneevsonssantsstnstnenstansonsense ¬ 70

APPENDIX

LIST OF TABLES

Table 2.1: Summary of questionnaire structure for official study - 27

Table 3.1: Statistics of THACO employee gender and age updated on October 2018 36

Table 3.2: Statistics of THACO employee qualification, updated on October 2018 37

Table 3.3: Some business performance in the period of 2018 ~ 2018 39 Table 3.4: HR evaluation table in THACO 2 0220102012101 re 43 Table 3.5: Applicable standard criteria table of THACO c0 44 Table 3.6: General evaluation on corporate culture of THACO memibers 50 Table 3.7: Survey table on members’ awareness on corporate culture 53 Table 3.8: Influence of leadership style on THACO meibets , 55

LIST OF CHARTS AND FIGURES

Figure 3.1 THACO market share revenue in 2018

Figure 3.2: Standard logo of THACO

Figure 3.3: Evaluation of labor age percent in THACO updated on October 2018 Figure 3.4: Available qualification of THACO staff, updated on October 2018

Figure 3.6; Sequence of approving the annual HR evaluation results

Figure 4.1: THACO's operation and development orientation to 2020

Figure 4.2: THACO development mission to 2020 - 2222222222 cc2ces

BACKGROUND

1 Necessity of the study

With response to the intemational and regional economic integration

development trends, Vietnamese enterprises and organizations are put under

increasingly high pressure not only from the foreign counter-partners but also cut- throat competition even in each agency and organization The Vietnamese and

international practice proved that a positive cultural environment is a reliable

background to successfully compete and create the sustainable development for the

organization and enterprise However, in such globalization trend, the cultural

assimilation is tended to increase In order to prevent from becoming a cultural

consistency, each organization is required to maintain and uphold its own culture

Culture decides the survival of an organization and helps it further develops out

of the starting point of founders Culture is also recorded as an intangible asset of

such organization Culture helps the organization to reduce the conflict, coordinate

and control, motivate the employees and enhance the competitive advantages By

reducing the conflict, culture cements the organization's members who may be

unified in terms of understanding, evaluation, and selection and action orientation When the organization is faced with conflict tends, members are unified by the

culture When a complicated decision is required, culture helps the organization to

narrow down the options to be considered, motivate the employees so that they may

master their job objectives and orientation, creating the good relationship between

the employees and a convenient and healthy working environment

Organization culture plays an important role not only for improvement of comprehensive work performance but also an important solution to successfully

improve the competitiveness Culture creates the differences and distinguishes

among organizations

Corporate culture may be regarded as one of valuable intangible asset of each

enterprise Corporate culture may create trust for each person working in such

environment, a link among the members of the enterprise, creating the voice

between the members and improving the enterprise’s competitiveness Therefore,

corporate culture may be regarded as an important mechanism in managing human resources Meanwhile corporate culture is really merged into the abjectives of each

member, then, they may consider the enterprise's objectives as their personal

objectives ‘that is why culture-based management may drive the enterprise’s long- term development

To become the umversal industnal Group and Vietnamese Prandname 1o be

recognized as the regional leading position in ASEAN, THACO is required to make

ceaseless efforts to develop its internal force, renovate the thinking and action, and

improve the quality and seale of the staff Tn order to do these, one of important tools to manage and govern the Company is THACO culture

By always submerging the idea that the staff is the important resources to create

the success and suslaimable development, THACO culiure is oriented toward

developing a qualified staff with strong will, positive working attitude, high oreativeness and high sense of qualification improvement to be able to work in a discipline and contribute to the Company's development As a result, they become the person useful for the society and the Country,

With awareness of significance of corporate culture an enterprise's success and

the sustainable future of the Group, creating a reliable premise to extend to the region and the world, “Development of corporate culture in Thaco Group” (THACO) topic is selected as the author's graduation thesis

2 Ohjectives

The thesis's research objectives include systematizing some basic theoretical

issues on comporals cullure and development of corporate culture, evalualing the

results of developing Thaco Group to be cemented with the Group's development

and growth, proposing some possible solutions to successfilly develop Thaco

Group's corporale cullure

By analyzing and comparing the theories with the practice by constituents of organization culture; Analyzing the concemed concepts, phenomenon of objective and nor-objective corporale culture; viewpoints and development of corporate

culture; evaluating the existing conditions of maintaining and developing the

te

corporate culture at Thaco Group, awareness of achievernenfs and obtained values, Analyzing the shortcomings and its root causes; Analyzing the available

characteristics of the unit, accordingly, suggesting the development orientations for

the corporate culture, giving out the proper development method and progress,

convincing and feasible solutions and recommendations on corporate culture

development for Lhe local unit

3 Subjects of research

Subjects of the research are the corporate culture, including: Factors affecting

the corporale culture, characteristics and forms of corporate culture, levels of

corporate culture ‘The respondents include officials and employees of THACO

4 Scope of research:

4.1 Scope of space:

‘Yhaco Group’s branches extend nationwide, including 3 Branches, namely: ‘the

North, the Central and the South, general office in Ilo Chi Minh City and Hanoi office Questionnaire is launched in Showrooms, branches and subsidiaries of

‘Thaco Group

4.2 Scope of time:

‘The scope of space is launched at 'haco Group

Regarding the scope of time, secondary data collected from key period of 2013

- 2018 is used herein The secondary data is used to forecast Thaco Group's

development up lo 2022 Primary data was collecled in 2018 via questionnaires The solutions on perfecting the corporate culture to 2022 are proposed hy the study

5 Research methodology

A scries of methodologies are applied by the thesis:

Statistics methodology: Thaco Group's data summary is related to corporate

culture development

Analytic method: ‘Yhe reports on ‘thaco Group's culture development and implemented solutions are analyzed

Method of listing, comparing and evaluating the saciology survey methad:

Questionnaire uses 3 question types, including closed questions (Yes or No, not go

in-depth into the feelings of the respondent as predetermined below that the respondent only marks the questions that he/she agrees), opening questions (the

question enables the respondent to specify his specific viewpoints into the

questionnaire) and combined questions

‘Number of questionnaires: 300

Respondents: Leaders, official and employees of Thaco Group Respondents

shall be collected, selected and named in the list (300 respondents} before official launch is initiated Secondary data is collected from the previous studies Data

collection is initialed within Thaco Group by accessing and collevting the S-recent-

‘year data and information from haco Group's Board of Culture Communications

and Board of Planning and Finance

Data processing und analysis method: slalistics methodology, analytic method, comparison methodology are applied to clarify the theories ‘he theoretical review

is combined with the general practice to clarify the basic coments hereof Moreover,

the thesis is also mberited and developed from the related studies’ findings to clarify

the main topics of the thesis

CHAPTER 1; THEORETICAL FRAMEWORK ON CORPORATE

CULTURE DEVELOPMENT

1.1 Overview about the study on corporate culture development

Corporate culture or company culture has been widely studied and announced in

the world and in Vietnam by many researchers Approaches to the corporate culture are varied by each researcher

1.1.1 Situation of foreign study

Corporate culture in the world is generally characterized by 2 different research

orientations The first orientation is to approach under the perspective of ongoing

business administrators (micro-approach), focusing on searching and looking for the

management nature of the cultural factors in business administration The second

one is to approach from the perspective of the cultural factors’ impact on business

administration (macro approach), focusing on the cultural factors’ impact on

businesses, especially for businesses with a multicultural or organizational

environment

a Three-tier corporate culture model of Schein

Three-criteria-based evaluation method of corporate culture is applied by

Schein's research model, concretely: Tangible structure, announced value and

general concepts, implications The evaluation method of corporate culture is

considered to be more practical than the theoretical value of that of the competitive

value framework That is the three-tier corporate culture model (Schien 1999) Schein’s model is focused on three levels of culture that are the three evaluation

criteria of culture, from practice, implications to invisibility:

Level 1 (Practice): Provide specific evidence such as folk stories, protocols, stories and symbols,

Level 2 (Standard value): Explain the strategy, purpose and philosophy to guide the

thinking and behavior in the enterprise.

Level 3 (General implication assumption): Including the basic assumptions,

awareness, value, trust and especially from the founder or the leaders of the

Company

Advantages: Evaluation method under H Schein model is relatively simple and easy to perform, suitable with the enterprise with restricted time and budget for

understanding its own cullure Ry using this model, the leader is facilitated Lo

effectively identify, in particular, the cultural elements of the business, and analyze

the relationships between tangible and cultural values which are deeply originated

from the business initiated by the company Similarly, the leaders find the cultural elements to be changed to be well matched with the Company’s ever-changing

environment in accordance with new competitive conditions and new regulations

5 Studies launched by Recurdo and Jolly

Recardo and Jolly (Recardo & Jolly, 1997) unveiled that, when the corporate

culture is mentioned, it often covers the system of values and beliefs that are

understood and shared by members of an organization A culture helps to shape and define members’ behaviors and organizational policies Corporate culture is

measured by & aspects, concretely:

- Communication: Quantity and forms of communication, what information is communicated and by which way, open communicative system must be provided

- Training and development: The administrators’ commitment to offer the

great development and organizational opportunilics that new skills are cnabled lo be applied for the practice Moreover, training programs are provided to successfully

satisfy the employee's current or future development needs

- Bonus and recognition: The rewarded behaviors and the applicable bonuses,

employees to be rewarded individually or collectively promotion criteria, and the

degree to which the organivation provides (cedback on the job satisiaction level

- Decision making: Decision making is related to the questions such as how

the decision is made and how the conflicts are handled Decisions are quick or slow

Tho organization 1s high ranking Decision making is characlerized by concentrating

or decentralizing.

- Risk acceptance: Creativeness and renovation are highly appreciated and rewarded Risk acceptance is encouraged and welcome with the new ideas

Fmployees are punished or motivated to test the new ideas

- Plan orientation: Planning is sbort term or long term, and future planning is applied which visions, strategies and objectives are shared with the employees To

which extent, he employees make commitment 10 fulfill the enterprise's sỉ

alegy and other organization objectives

- Group work: This aspect relates to the issues, including significance, form

and effectivencss of group work im the organization Tl includes the significance of cooperation among, various departments, trust between the functions or units, and mutual support for work performance

- Governance policies: This aspocl measures [airness and consisicucy with (he implemented policies, the impact of member governance styles and the governance

level that provides a safe work environment

ce The Denison model (1990)

‘The Denison model is based on 200 years of research on how corporate

culture affects the performance of businesses Denisorfs research has found a link

between the organizational culture evaluation score and the key performance results

of the business such as profitability (ROE, ROA, ROD, growth (sales growth rate) ,

market share), quality, innovation, employee and customer satisfaction

This model aims to analyze and evaluate the constituent factors and influence

on corporate culture including 4 main feature frames, each characteristic frame is

a sed through 3 scales, each scale consisis of 5 similar variables corresponding

40 60 questions in the Denison questionnaire

Based on the model, we can see the correlation between the cultural factors

of the model and important data aboul the organization's activities For example, a high soore in a Stable region tends to show the strongest relationship with profitability, while a Flexible area has a strong relationship with performance such

as innovation and customer satisfaction Hay cullural factors thal exhibit Outward-Focusing tend to have strong relationships with the overall development of

the organization while factors related to Introverted are related to performance

measures such as performance, quality and employee satisfaction

1.1.2, Situation of domestic study

a According to the study released by Asso.Prof.Dr Do Minh Cuong

Presented in the course books “Business culture and philosophy” of the

National Political Publishing House, published in 2001, the definition on corporate

culture is released by focusing on in-depth research of business philosophy issues

(Do Minh Cuong, 2011)

b According to the study of Nguyen Anh Tuan, M.A and Nguyen Phuong Mai, M.A

Research objectives and contents: Analyze the mutual interaction between the

enterprise's cultural environment and the selection and implementation of strategies initiated by Vietnamese enterprises in the ever-changing economic period Offer the

possible recommendations for Vietnamese enterprises to successfully develop a

corporate culture in accordance with the strategic orientation and good match with

the changing environments Main findings: Specify the impact of economic and

social characteristics in the transition period to the issue of awareness and how to develop the corporate culture and business strategy Determine the existing

conditions of corporate culture that is compatible with the strategy of Vietnamese

corporate culture Put forward some recommendations and set up the corporate

culture that is compatible with the business strategy Training results of the study:

References for Strategy Management and Corporate Culture (Nguyen Anh Tuan

and Nguyen Phuong Mai, 2011),

e According to the study of Nguyen Viet Loc, M.A

Entrepreneurship is recognized as the core values categorized as the qualities,

capabilities and moral qualities that must be obtained and pursued by the entrepreneurs By inheriting the studies on entrepreneurship and entrepreneurship culture, a cultural value system of Vietnamese entrepreneurs has been designed and

developed in accordance with the core factors of entrepreneurship, including: Great

business aspiration; Capacity to search, create, master business opportunities;

Independence, determination, confidence, Dare to do, dare to take responsibility,

Flexibility, activeness; Always application of new ideas, methods and solutions to

solve new problems; Business ethics and corporate social responsibility It is also

given out hereof to measure and simulate such factors to facilitate the evaluation and orientation of Vietnamese enterprises’ cultural values in the context of international

economic integration nowadays (Nguyen Viet Loc, 2011)

1.2 General concept on corporate culture

1.2.1 General concept on culture and business culture

The history of development has proved that culture is the most important factor

to distinguish the nations, regions or groups of persons, including individuals, ete

"Culture affirms the development, demonstrates the power of society and the people

it represents.” Rabin Dranath Tagore, the Indian famous writer (1861-1941) affirms that: “responsibilities of each nation are to clearly show the world its unique

identity He thought that if a people does not bring anything to the world, it shall be

so bad, it shall be worse than perdition and not be forgiven by the history”

Terms “culture” is originated from Latin language, ie., “Cultus” refers to

cultivation, care of trees Then, “cultus” is extended to the social fields, implicated for spiritual care, education and human training towards a better orientation

To the widest scope of research: “Culture is the master of spiritual and physical

values created by the persons during survival and development”, “Physical values

may refer to: beauty spots, pagodas, temples, historical relics as well as the

traditional cultural products For example, Vietnam is recorded with: Bat Trang

ceramic village, Dong Ho picture or historical relics such as: Hoang Thanh Thang

Long, Temple of Literature The spiritual values are demonstrated in the living

habits, folk songs, “hat xam”, adoration, and especially Vietnamese Xoan singing

recognized by UNESCO as an intangible cultural heritage representing the humanity.”

To the narrower scope of research: “Culture refers to the activities and spiritual

value of the human beings” To this extent, Scientific culture such as mathematics,

physics, chemistry, culture and concerned industries, ete., and art culture such as

movies, literature, music, etc., to be considered as two main subsystems of the cultural

system

When Culture is referred, it surely covers the very famous brief and cohesive

definitions of the famous French politician Edouard Herriot (1872 — 1957), that is

“Culture is the remaining when everything is forgotten, the insufficiency when we

have learn everything” Therefore, culture is the identity of every individual, every

nation, every nation which cannot be easily forgotten However, this definition only

shows the importance and extent of the culture, rather than the specific

characteristics.”

Another famous cultural researcher, Federic Mayor, UNESCO's Chief

Executive Officer (1987 -1999), gave out a specific definition, concretely: "Culture

reflects and demonstrates generally and vividly all aspects of life (of each

individual and community) that took place in the past as well as happen in the

present, over the centuries It constitutes a system of traditional values, aesthetics

and lifestyle which each ethnic group asserts its own identity.” Through the

aforesaid investigations, a concept on culture may be drawn out as follows:

“Culture refers to all spiritual and physical values created by the human beings

during survival and development”

“1990s witnessed the appearance of term of business culture and corporate

culture Business culture appeared before the corporate culture Such two concepts

are simultaneously used and mutually supported to each other.”

Therefore, corporate culture is the expression of business culture at corporate level hence, it is concluded that corporate culture is a phenomenon and part of the

business culture

1.2.2 Concept on corporate culture

Each organization is supported by certain standards of moral values, typical

images, anecdotes, idiosyncrasies and typical styles that are recognized,

implemented, complied and communicated by all members by time It is acted as

the reliable basis for the organization members to follow and create the important

influence on routine behaviors of every member

10

Corporate culture is construed as: “a system of meanings, values, key trusts,

awareness and thinking method to be agreed by the organization members, widely

affecting the member’s action manners”

The question is that: What is corporate culture? Corporate culture is

characterized by various definitions and understandings The scholar Georges de

Saite Marie — a French expert on SMEs defined that: “Corporate culture refers to

collection of values, symbols, legend, protocols, prohibitions, physiology and moral viewpoints to create the reliable background of the enterprise” It is possible to see

that the concept only summaries the constituents of corporate culture, rather than

mutual relation inside the enterprise

A relatively popular definition on “Corporate Culture” of the scholar Edgar H

Schein, an US expert, recorded with many years in studying the culture is shown as follows: “Corporate culture is the collection of rules and procedures acquired by

the enterprise members during problem solving, adapted from outside and

internally consisted in the enterprise.” “Such rules and procedures are the triggers

for the members to select the action method, analyze and make proper decisions

without hesitating about the meanings of such rules and procedures It is considered

to be correct from the beginning.”

In short, even it is defined differently from time to time, it is possible to reach

an agreement on corporate culture definition, concretely: “Corporate culture refers

to a system of value, concepts and behavior rules to be internally shared by the

enterprise, governing the feeling, thinking and how to act of members during

pursuing and fulfilling the general objectives, creating an unique identity of each

enterprise.”

2 Identity of corporate culture

Identity is characterized by corporate culture philosophy, unique phenomenon

of style, action, behavior of organization, reflecting the selected values and philosophy Organization's cultural identify is clearly demonstrated by organization members’ behavior It is also the sign to show the consistency in terms of awareness, key philosophy values of the company.”

"1

“Corporate culture identity is not long-lasting, it may be varied by following

characteristics:

% “Cultural identity may be created: Persons who may create the cultural

values and identities are founders Since its inception, the organization’s missions

and individual's cultural identity values are specified

% “Cultural identity may be formed by strengthening: In such cases, leaders

find the way to protect and preserve the prevailing moral and cultural values They

may be very successful outstanding characters in some fields, or they may

undertake the position and responsibilities for preserving and enhancing the created

cultural identity, Therefore, operating philosophy culture 1s deeply submerged in the

consistent culture

*% “Culnral identi may be formed by integration: Leaders often apply the leading and integrating style, attentively listen and find the best way to successfully

integrate, act as a bridge to connect, regulate, motivate and share with other persons

“Cultural identity may be changed: Changes in culture may be required

when the fundamental changes are recorded in the organization such as

industrialization or technology, foreign culture integration (cross-culture), changes

in senior managers Pressure of such changes requires to take the great and

fundamental changes in terms of leadership style, philosophy and action guidelines

When the culture is changed, leadership philosophy and style are deeply

characterized by adapt culture.”

1.24 Brandname

Brandname is a very popular concept widely concered since long time This

concept is also interpreted by various manners such as: “Brandname is the dignity

of the organization and enterprise and known as a well-respected principles, values

and action philosophy of such organization and enterprise which are easily

recognized or looked back through the corporate culture’s phenomenon”.

Brandname “is a collection of customer’s feelings on a company, a product or

service in all material aspects: Description of identification, values, properties and

identities Brandname binds the consumers through brandname -consumer relation

In terms of identification, Brandname is a name or signal to identify a product

A successful brandname is the milestone for a product with sustainable competitive

advantages BMW, Coca Cola, etc., are the typical examples on corporate

brandname, while Louis Vuiton, GUCCI, Dove, etc., are typical examples of product brandname Hence, it is possible to understand that: “Brandname is a non-

physical component but essential to an enterprise Once the products are qualified

with the levels that are almost indistinguishable by nature, characteristics and benefits, brandname is the only factor that makes the difference between the

products and the brands, demonstrating the great trust and safety ”

1.3 Necessity to design and develop corporate culture

1.3.1 For enterprise:

Corporate culture is characterized by the business identities to distinguish them

from other businesses

Since its inception, the enterprise may not have a stable and specific identifiable

culture “Through a long history of development, from ups and downs, through the

competition and construction, cultural factors shall be formed, selected and

developed as a system, creating a specific business guideline of such enterprise,

distinguishing it against other enterprises and social organizations.”

Such style for the enterprise is as important as “water and air” for the people It is

easy to realize a style of a successful enterprise Such style is often foot printed with an

extremely strong impression to the outsiders and great pride of the enterprise members

Corporate culture creates the behavior pattems, widely accepted and complied

by the members, demonstrating the good harmony within the business in general, as

well as making decisions in specific cases Such patterns are general standards and

values to commend the good behaviors and criticize the bad behaviors, thence, the

persons may know what should to do and what should not to do

Corporate culture enhances the work motivation, facilitating the loyalty,

engagement, creativeness and devotion of the staff

1.3.2 For the society

Entrepreneurs in particular and interested persons conceming the economic

growth in general acknowledge the special role of corporate culture in economy development Culture itself is always implicitly submerged with humanism values;

therefore, corporate culture always requires businesses to closely cement to business

efficiency with humanity in business: Efficiency cannot be obtained at any cost that

humanism values are ignored Simultaneously, production and business activities of

each enterprise are oriented towards improvement of the community, ethnicity

spirit, and businesses are encouraged to join the social activities such as poverty

reduction, relief for natural disaster victims, charitable activities, etc If cultural

elements are unavailable, the society will have to bear the extremely serious

consequences, especially exhaustion of natural resources, discharge problems, and

environmental pollution caused by production

1.4, Characteristics of corporate culture

Corporate culture is demonstrated through typical signs, phenomenon and

characteristics Characteristics refer to anything which may be used to demonstrate

the contents of corporate culture, key philosophy, value and trusts, how to aware

and critical thinking to help the members during their awareness to correctly reflect

the awareness of the members and entire organizations

Characteristics are used to represent the contents of corporate culture, so-called

as visual symbols Such symbols facilitate the easy seeing and hearing Non-visual

characteristics are specific signs to be demonstrated in the members’ awareness

level on corporate culture

Table 1.1 Characteristics of corporate culture

- Typical publication - Vision, mission and core values

- Anecdotes - Trust value and attitude

- Rituals, meetings - Business philosophy

- Costumes - Personal and organization motives

- Behaviors and communication,

Source: Collection by the author in the 2018 study

LA Visual characteristics of corporate culture

a Architecture characteristics

Particular architecture includes office’s exterior and interior architecture used as

the company’s logo and images to create the familiar and good will impression of the Company

Architecture design is widely interested by the organizations because:

- Exterior architecture may significantly affect the human behaviors in terms of

how to communicate, react and perform the works For example: church

architecture gives a strong, powerful impression; The pagoda creates an impression

of transparency and continuity, The library impresses highly and intellectually

- Architectural works may be considered as a “mascot” denoting a certain meaning or value of an organization or society For example, France's Eiffel Tower,

China's Great Wall, Temple of Literature, One Pillar Pagoda, etc., has become an

image and symbol of a national and local spiritual value

- Structural design may be regarded as a symbol of the organization's strategic motto

- Architectural works become an organic part of the company's products

- Each architecture is submerged with historical values associated with the

availability and growth of the organization

b Rituals, etiquettes

One of characteristics of corporate culture is rituals and etiquettes These are carefully planned and prepared activities in the form of activities, official socio- cultural events, serious and emotional activities that are carried out periodically or

15

imegularly to tighten the organizational relations and often held for the benefit of

attendees

The characteristics of the ritual’s form and content not only show the values and

philosophy of the corporate culture that the organization wants to emphasize, but also specific views and approaches of the managers

c Symbol, logo

Another tool of corporate culture characteristics is the symbol The architectural

works, rituals, anecdotes and logo contain the logo's characteristics through

physical and tangible values Such characteristics aims lo convey a polenlial valuc

and meaning to the receiver in various manners The most important thing of

‘branding is to select the name, Ingo, package design and various attributes to

identify a product and distinguish it with others

Another symbol is the logo or creative masterpiece to be designed to demonstrate the image of an organization or a business in the popular artistic language Although logo is a very simple demonstration, it is assigned with a arcat significance Lence, it is remarkably focused by organizations and businesses

Nowadays, logos of the world’s leading brands such as Coca-Cola, Microsoft,

‘Toyota, etc., have been received with the worldwide special attention and influence

A brand's logo must be developed with specific cultural meaning and

submerged with the culture identity Brand logo must be well matched with the

various cullure or languages

d Short stories, anecdotes, typical samples

Short stories are slories which are ofien developed from typical events in terms

of values and philosophy of corporate culture reminded and dissominated to new

members by the organization In the stories, the typical samples are often

aentioned They are ideal patter in Lonmms of behavior suilable with the standards

and corporate culture values Typical samples may be personified into myths with the qualities and characteristics of many good examples or expectations of values and belies in the organization Stories aim to maintain the vilalty of the

organization's original values and help to unify the awareness of all members

16

Model characters embody the values and lasting power of the business These

are the enterprise’s core figures, facilitating to create a distinctive image of the

business, making the outstanding results simpler, promoting many classes of

employees to follow, strengthen and promote the cultural environment in the enterprise

e Language, slogan

Special sayings, slogan, metaphors or a nuance of words are used to convey a

specific meaning to the employees

Slogans are easy to memorize and cited not only by employees but also by

customers and many others Slogans are often very brief, or characterized by

simple, easy-to-remember words, so it sometimes seems to be cliché in terms of

form The slogan is recorded as the most succinct expression of an organization's or

a company’s business and operational philosophy Therefore, it must be closely

linked with the mission statement of the organization or company to thoroughly

understand their implicit meaning For example the slogan of Vietjet Airway:

“Enjoy Flying”, Heineken: “It could only be Heineken”, Trung Nguyen Coffee

“Explore creative inspiration”

f Typical publication

Typical publications are the official data which may help the stakeholders to thoroughly understand the cultural structure of an organization It may be the

mission statement, annual report, advertisement booklet, brochure about the

organization, company, traditional yellow book, periodic or special publications,

advertisement documents on products and company, user’s manual, warranty

instructions, etc

Strength of corporate culture is characterized by consent of organization members regarding the significance of specific values In case of consent, corporate culture cements the members and generates the powerful strength to develop a strong culture for the organization

1.4.2 Non - visual characteristics of corporate culture

a, Ideal/mission

Ideal means applying the theories into practice Corporate culture is interpreted towards this orientation to emphasize the motive, meanings, lofty, basic and

profound values to help people ta sympathize, feel and be touched by things and

phenomena Ideal is formed from people trust, values and feelings

h Value, trust and attitude

Tn nature, value is the concepl refaled 10 moral standard and unveiled what

should be done Honesty, consistency and opening are highly appreciated by the

individuals and organizations, assuming that they should act persistently and

frarikly

‘Trust refers to a concept covering the matter how it should be correctly

conducted In practice, it is difficult to separate this concept because trust always

conlains valucs Valucs are considered as the reliable trust im hew lo perform or

certain status Leader trust is gradually transformed into calleotive trust through the values [lowever, it is passible to appear the difficulties due to information barriers

Attitude is the bonder of trust and value through feclings Attitude is defined as

a empirical thinking habit to react in a consistent or unwanted way to things and

phenomena

In short, trust and attitudes are the enterprise's spiritual values, a system of values and principles shared and spread among employees Such values are formed

from characters and expectation of the leaders, facilitating the staffs contribution

during business, ofien avcurmnlated, amended and adjusted by time with history of development of enterprise

e Ilistory of development and cultural tradition

The history of development and tradition of an organization are symbols of the

values and philosophies that are selected during the operation respected and

preserved by many generations of the organization; (hey are uscd by the organization to demonstrate the key values and the action motto to be persisted

The practice unveiled that organizations with a long history of development and

a traditional tradition are often more dillicult to change in organization than new,

young organizations, not clearly defining the style or oultwal characteristics ‘Ihe

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traditions, customs and cultural factors that have shaped and appeared in the history

are both a support and valuable lessons for the next generation of staff to follow

However, it may also become "psychology barrier” which is not easy to overcome

in building and developing new cultural characteristics Because these values are

rigid, the fear of change restricts the creation and expansion of the business’s

production perspectives

In short, these are very close phenomenon which is perceived and ceaselessly

developed with valuable and meaningful traditions of each business

1.5 Constituents of corporate culture

1.5.1 Management and business philosophy

This is the utmost and most important layer of corporate culture, including the

most fundamental management and business philosophies The prerequisite for the

successful corporate culture development is the commitment of the enterprise's

highest leaders Because the most important part, the heart and the mind of the

business is in the innermost layer of culture, it is the business philosophy, the enterprise's management motto and only the highest leaders of the enterprise may be

able to influence such core cultural class Therefore, business leaders play a key role in building and developing corporate culture Leadership is the one who creates

the foundation of the enterprise, forming and nurturing the environment and

standardizing, selecting people who are suitable for the cultural value system and an

example and motivation for employees

1.5.2 Personal and organization motives

The second important factor layer of corporate culture is the motives to

accelerate the actions of individuals and general motivation environment of the

organization Such motivation factors shall be demonstrated by daily behaviors of

the enterprise’s members

1.5.3 Procedures and regulations

Procedures, regulations and policies help the enterprise to operate stable in

accordance with the standard This component facilitates the enterprises to

successfully satisfy the increasingly high requirements on quality, products and

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services of enterprises, contributing to creating stability and improving the

efficiency of businesses with efforts to the highest satisfaction of customers and the

society

1.5.4, Information exchange system

This is the fourth constituting layer of the corporate culture to satisfy the

diversified, multi-dimensional, accurate and timely management information

demand This system must ensure that any required information necessary for the

enterprises is collected, conveyed, stored and processed Any members of the

enterprises may easily access and use the required information for the daily

activities as well as the planning and orienting the strategies

Movement, rituals, etiquettes

This is the floating culture constituent, reflecting the life and livings of the enterprise Although it does not directly affect the business performance, its influence on every activity of the enterprise is relatively high It effectively

disseminates the company’s policies and guidelines, creating the company’s

difference against its rivals, a good image prior to the community, facilitating the branding Therefore, in order to successfully create the enterprise’s identity and good competitiveness, the entrepreneurs, senior managers, leaders and other administrators must involve into the organization's culture development

1.6 Benefits of corporate culture development

1.6.1 For enterprise

Corporate culture is an intangible asset of enterprise, recorded with high importance in the enterprise’s development, the reliable background, objectives,

motives and regulating system of the development Corporate culture helps the

organization to reduce the conflict, coordinate and control, motivate the employees

and enhance the competitive advantages

a Reduce conflicts among members, between individuals and collectives

Corporate culture is the good bonder to cement the enterprise’s members It

helps the members to unify the understanding, evaluation, selection and orientation

for action When the organization is faced with conflict tends, members are unified

by the culture

b Coordinate and control

Corporate culture coordinates and controls the personal behaviors through

stories, legends, standards, procedures, sequences, rules, etc Corporate culture

facilitates the good orientation for the enterprise in all material aspects such as

leadership style, business culture, quality culture and organizational culture When a

complicated decision must be made, the corporate culture shall narrow down the

scale of options to be considered

c Motivate the employees

Corporate culture is not rigid regulations, hindering the creativity of members

On the contrary, the general concepts on corporate value and good relationships

among employees that corporate culture offers shall create a comfortable and

healthy working environment, promoting the employee’s innovation and creativity

Thanks to corporate culture, the employees clearly understand the objectives,

orientations and nature of work, making them feel to undertake a meaningful tasks

and proud to be a member of enterprise This is much meaningful when “brain

drain” is popular Income salary is just a part of work motivation When income

reaches a certain level, people are willing to trade off a lower income to work ina harmonious, comfortable environment, well respected by colleagues

1.6.2 For non-enterprise:

Corporate culture is the enterprise's identity, attractiveness with customers,

partners, creating a brand for businesses to help distinguish them from other

enterprises Corporate culture also enhances the external relations and acts as the

factors to attract the customers and partners for the enterprise Coneretely:

- The customers shall feel peace in mind and proud when the enterprise's products and services are used

- The partners shall give more trust when transactions are made with the

enterprise and preference prices may be offered They shall support the enterprise to

overcome the difficulties and maintain the commitments

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- The regulators and the Government shall trust more when enterprises with good corporate culture are contacted Accordingly, the great support may be

received from the regulators and the Government during business

1.63 For branding of products and services

Corporate culture development is also recorded as to setup the brandname for

the enterprise and its offerings

Product brandname creates the product quality position Enterprise's brandname

helps the consumers to evaluate the enterprise’s prestige and moral

Therefore, the above roles of corporate culture shall help the enterprise to grow

and obtain sustainable development to ultimately offer profit to the enterprise - the

decisive factor of survival of an enterprise It is possible to say that when everything

is lost, the corporate culture is remained, then the enterprise still has the

opportunities to survive and develop Vice versa, if the culture is lost, the enterprise

shall not survive The enterprise’s success or failure is closely cemented with the

corporate culture’s unique identities

1.7 Steps of corporate culture development

The ways of developing company may vary by culture of each country Generally, the purpose of developing corporate culture is to ensure that the employees feel happy, speed up and improve the productivity and engagement with

the company In order to develop the corporate culture, four steps may be

conducted:

Step 1: Determine values concerned by stakeholders

Such stakeholders inchide shareholders or owners, senior managers, employees,

customers and other related parties Thence, identify the options and changes to

form the most suitable cultural model to satisfy the great concern of the subjects Step 2: Re-evaluate the available corporate culture model or setup new corporate culture contents, including core values, business philosophy; Code of

Conducts, legal document system; characteristics such as brand identifier,

architectural structure, interior, product system, technology, etc

ˆ 8

Step 3: Identify the barriers or change requirements Barriers may be ignorance, local features, fear of changes, etc Demands must be changed such as internal

dispute or changes in technology [t is required to specify to prepare the proper

action plans

Step 4: Prepare implementation and application plan

There is 4 famous saying: “Sow a thought, and you reap ari act Sow an acl, ancl

‘you reap a habit Sow a habit, and you reap a character Sow a character, and you reap a

destiny.” It is similar to corporate culture development Development of values is only

the [ist slep to create the enlerprise’s ideology Action programs must, be regularly repeated to become a voluntary habit, an action similar to the conditional reaction It is

required to supervise and follow up to improve such characteristics in accordance with

the enterprise's core values to create the unique identily of the enterprise

Development of corporate culture is a long time process, requiring a great effort

of every one The achievement is the enterprise’s success

Conclusions: According to the contents and structure on corporate culture, the

Research Methodology is moved to analyze and evaluate the corporate culture

23

CHAPTER 2: RESEARCH METHODOLOGY

2.1 Methodology

Dialectic materialism methodology is applied during the study

This method requires to study the corporate culture development in Thaco to

closely adhere to the practice to setup, maintain and develop the corporate culture in

Thaco; consider Thaco’s corporate culture structure in the relation with the general

cultural values and specific cultural values, creating the outstanding cultural

identities of Thaco; consider the corporate culture identities of Thaco in the close

relation with the national culture, origin of the enterprise and its business

environment

Application of the dialectic materialism method requires to propose the solutions to develop the corporate culture in Thaco in the integration period

originated from the existing condition of the Group’s corporate culture, especially

the requirements on recovering shortcomings discovered during maintaining and

upholding the specific culture straits of Thaco in the new period

2.2, Research procedure

Research procedure is characterized by following steps’

Step 1: Read and analyze the related studies to inherit and specify the gap for

further study

Step 2: Identify the research issues

Step 3: Collect and systematize the theoretical issues to setup the research

model

Step 4: Setup the research methodology

Step 5: Apply the research methodologies to collect the primary and secondary

data, use the proper tools to handle and analyze the data, and evaluate the existing conditions of the enterprise

Step 6: Refer to the corporate analysis and evaluation released by the enterprise

to propose the solutions to successfully develop the enterprise’s culture.

2.3 Data collection sources

Data may be classified by various methods, depending on the researcher’s

method and purpose In order to collect the data for Thaco Group’s corporate

culture development research, two main data sources are applied, including primary

and secondary data sources

23.1 Primary data source

Primary data is collected by consulting the officials and employees related to

Thaco Group's corporate culture

2.3.2 Secondary data source

Secondary data source to be collected and researched is the available

information, including the references related to the corporate culture topics;

organizational behaviors of the researchers and scholars in the world

2.4, Data collection method and tools

2.41 Data collection method

Data is collected by surveying and investigating in accordance with the questionnaire designed to directly deliver to Thaco Group’s officials and employees

in 3 regions: The North, the Central and the South Total 300 questionnaires were

delivered and collected

2.4.2 Data collection tools

Data collection tools are questionnaire used to consult the subjects, in which:

- Question form is the (close) question with question and answer types to be

available for the respondent to select

- Detailed contents of questionnaire (appendix 1) include 2 main sections

Section 1: Design to collect general information about the respondents

Section 2: Design to include the questions to review the knowledge and

awareness on corporate culture of officials and employees, working in Thaco Group

Contents of the questionnaire focus on the employees’ awareness on corporate

culture and existing corporate culture in Thaco Group, thence, unveil Thaco

Group’s corporate culture practice and give out the solutions to perfect the

25

corporate culture

26

Table 2.1: Summary of questionnaire structure for official study

Source; Collection by the author in the 2018 study

Questionnaire design phases:

Questionnaire is designed and tested through some phases to ensure the

required information to serve for the data analysis Questions on corporate culture

aspects are based on previous studies related to the corporate culture

- Phase 1: Design the crude questionnaire in accordance with the information

to be collected in the theoretical model and related previous theories

- Phase 2: Evaluate the questionnaires by examining the understanding about

the questions, Evaluation is conducted by directly delivering it to the officials and

employees to verify their understanding and response to the questions

Phase 3: Adjust the contents of questions and complete the questionnaire, then

directly deliver to Misa employees to collect information

2.5 Data analysis and processing method

2.5.1 Primary data processing method

According to the documents on corporate culture in Thaco acquired during a

long-time working years thereof, the author shall understand and draw out the

lessons on factors governing the establishment, development and specific features

of Thaco’s corporate culture; analyze the success, restrictions and shortcomings of

27

maintaining and developing the local corporate culture for the Group’s production

and business, especially the foreign markets; then, propose the solutions to maintain

and develop the corporate culture in Thaco in the coming time

2.5.2 Statistics and comparison methodology

Statistics and comparison methodology is initiated after all data has been

collected via questionnaires and collected documents This method is applied to

release the statistics tables on Thaco Group's business figures, statistics on

respondent viewpoints about evaluating and feeling Thaco Group’s corporate

culture; compare with other telecom companies to illustrate the relation between the

business efficiency with maintaining and developing Thaco- specific corporate

culture; also, analyze the existing conditions of advantages, disadvantages in

maintaining and developing such specific cultural straits, acting as the premise to

propose the methods for Thaco corporate culture development in the coming time

2.5.3 Descriptive statistics methodology

This method is applied to describe the panorama of related research in Chapter

1; describe the research subjects with specific phenomenon of corporate culture in

Thaco, describe the survey results via the questionnaire, describe the business performance of the enterprise; then, analyze the existing condition on maintaining

and developing Thaco-specific corporate culture

25.4 Analysis and synthesis method

This method is applied to present the study contents In order to analyze the

information and data, following methods are applied herein:

+ Descriptive statistics methodology: To be launched in Chapter 1 when overview of the study is related to the thesis This method is also applied in Chapter

3 to analyze the existing condition of Thaco’s corporate culture development with

general expression and specific straits Furthermore, it also aims to find out the shortcomings of maintaining and developing these specific cultural straits in the

context that the international integration is increasingly developed

+ Descriptive statistics methodology: This method is applied to compare the

Group’s business performance by years in the relation with the maintenance and

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development of hace Group’s specific corporate culture; compare the revaluation

of the questionnaire (survey) respondents regarding feeling about corporate culture

in Thaco Group to unveil the strengths and restrictions of maintaining and

developing such specific features Accordingly, it is systematized and proposals on future corporate culture development in Thaco Group are put forward

Conclusions: The analysis basis in Chapters 3 & 4 is based on the Literature

Review and Research Methodology as follows: Analyze and evaluate Thaco Group

characteristics in accordance with the contents and structure of corporate culture,

existing corporals culture in Thaco Group Then, work out thơ sieps lo perleeL

‘Thaco Group's corporate culture

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CHAPTER 3: EXISTING STATUS OF CORPORATE CULTURE

DEVELOPMENT IN THACO GROUP

3.1 Overview about Truong Hai Automobile Joint Stock Company (THACO)

Truong Hai Automobile Joint Stock Company was incorporated on 29 April

1007, based its registered office at No 19, Street 2A, Bien Hoa 2 Industrial Park,

Dong Nai Province The founder is Mr Tran Ba Duong, currently Chairman of

Board of Directors of THACO

Thaco’s main business activities cover manufacturing, assembly, distribution,

supply of automobile spare part repair and maintenance services: Including

manufacturing and trading in commercial vehicles (trucks and bus); manufacturing

and trading in tourism vehicles from Kia (Korea), Mazda (Japan), Peugeot

(Europe)

Currently, Thaco is the unique company in Vietnam involving in complete

manufacturing and assembly of 3 models: Tourism vehicles, trucks and bus with

localization percent of 16% - 50%, offering the diversified and qualified automobile

products with reasonable price

Thaco aims to maintain its local leading position in automobile manufacturing, assembly and distribution in Vietnam, conduct market expansion to ASEAN,

enhance the international cooperation to select the proper technology, increasing the

localization percent, joining the global value chain, creating the reliable background

to develop to establish the universal industrial group, improving the competitiveness

to obtain the regional leading position Currently, the Company’ transaction offices

are described as follows:

° General Office in Ho Chi Minh City

> 80 Nguyen Van Troi, Ward 8, Phu Nhuan District, HCMC

Long Bien, Hanoi

°ọ Chu Lai - Truong Hai Complex

> Hamlet4, Tam Hiep commune, Nui Thanh district, Quang Nam province

3.1 History of development of Truong Hai Automobile Joint Stock Company

Truong Hai Automobile Joint Stock Company is recorded with specific development milestones as follows:

29 April 1997: Establish Truong Hai Automobile Co., Ltd The Company

mainly involves in import of used vehicles and sales to the market and provide the

materials and spare parts for automobile repair

5 October 1999, the Company established its first Branch located at No 2A

Ngo Gia Tu, Gia Lam (now Long Bien) - Hanoi with 10 employees This is the

strategic breakthrough for Thaco to gradually occupy and lead the automobile fields

in Vietnam

In 2003, the Company invested into Chu Lai Open Economie Zone, Nui Thanh

District, Quang Nam Province with total initial investment capital up to VND 600

billion to construct the modem automobile assembly plan, covering an area of 36.8

ha, named Chu Lai - Truong Hai Automobile Manufacturing and Assembly Co.,

Ltd

In December 2008, the Company inaugurated TRUONG HAI STAR 2 vessel

with 288 TEU, put THACO-KIA into official operation

On 4 October 2010, Chu Lai Truong Hai Vocational Training College opened

the first course in the school year 2010 - 2011 with 408 students, including

elementary, intermediate and college classes.”

“In 2005, thanks to the impressive growth step, THACO sold 70,421 vehicles,

fulfilling 38.6% VAMA market share Total revenue in 2015 was VND 45,846 billion

(USS 2 billion), increasing 89% against 2014, paying VND 13,856 billion to the State budget.”

“Since 2015, the company has archived a series of success in manufacturing, trading, assembly, distribution, sales and after-sales service in parallel with culture development, improvement in the difficult phases The 2018 report submitted by

31

VAMA unveiled that revenue of entire VAMA was 276,187 vehicles THACO continued leading Vietnamese automobile market with revenue of 96,127 vehicles,

Mitsubishi 37%

PC: Car under 9 seats

Source: VAMA (Vietnam Automobile Manufacturers! Association) Ee TOS ORE RR ae

Figure 3.1 THACO market share revenue in 2018

Some achievements obtained in the past:

Since its inception, THACO was honor to receive a series of Certificate of Merits and prizes at all levels to delight its great contribution and achievements in

manufacturing, business, social community activities, national development and protection:

2015

> Emulation flag includes: The flag awarded in 2005 by the Government; the first prize awarded by the People’s Committee of Dong Nai (the excellent

Emulation Unit for 5 consecutive years),

> The prize includes: “2015 Vietnam Golden Star Award” (5 consecutive

time to be named in TOP 10; “Vietnam Famous brandname Winner”), “2015 Vietnamese Powerful brandname”, etc,