Improving teller’s motivation at joint stock commercial bank for investment and development of viet nam (BIDV) SGD1 branch

KHOA QUẢN TRỊ VÀ KINH DOANH --- NGUYỄN THU TRANG IMPROVING TELLER’S MOTIVATION AT JOINT STOCK COMMERCIAL BANK FOR INVESTMENT AND DEVELOPMENT OF VIETNAM BIDV – SGD1 BRANCH NÂNG CAO ĐỘ

KHOA QUẢN TRỊ VÀ KINH DOANH

-

NGUYỄN THU TRANG

IMPROVING TELLER’S MOTIVATION AT JOINT STOCK

COMMERCIAL BANK FOR INVESTMENT AND

DEVELOPMENT OF VIETNAM (BIDV) – SGD1 BRANCH

NÂNG CAO ĐỘNG LỰC LÀM VIỆC CHO GIAO DỊCH VIÊN TẠI NGÂN HÀNG TMCP ĐẦU TƯ VÀ PHÁT TRIỂN

VIỆT NAM – CHI NHÁNH SGD1

LUẬN VĂN THẠC SĨ QUẢN TRỊ KINH DOANH

HÀ NỘI - 2020

KHOA QUẢN TRỊ VÀ KINH DOANH

-

NGUYỄN THU TRANG

IMPROVING TELLER’S MOTIVATION AT JOINT STOCK

COMMERCIAL BANK FOR INVESTMENT AND

DEVELOPMENT OF VIETNAM (BIDV) – SGD1 BRANCH

NÂNG CAO ĐỘNG LỰC LÀM VIỆC CHO GIAO DỊCH VIÊN TẠI NGÂN HÀNG TMCP ĐẦU TƯ VÀ PHÁT TRIỂN

VIỆT NAM – CHI NHÁNH SGD1

Chuyên ngành: Quản trị kinh doanh

Mã số: 60 34 01 02

LUẬN VĂN THẠC SĨ QUẢN TRỊ KINH DOANH

NGƯỜI HƯỚNG DẪN KHOA HỌC: TS TRẦN KIM HÀO

HÀ NỘI - 2020

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, formula, and other document) used in the thesis are cited properly and the 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………

ACKNOWLEDGEMENT

I would like to send my sincere thanks for the help and support of parents, lecturers, family, friends, and colleagues, all of whom helped me complete this study Particularly, I would love to send my gratitude toward the following significant advisors and contributors:

I would like to extend my warmest thank to Tran Kim Hao for his support and encouragement He spent much time on reading my research and offering invaluable detailed advices on grammar, organization, and the theme of the study

Second, I would like to thank all lecturers from HSB-MBA for advising much valuable intellectual knowledge during the course I would like to thank my classmates for their provision of valuable advices

I also would like to thank my colleagues, tellers and managers at BIDV – Transaction Center 1, managers for their help and support to complete this thesis

CONTENT

INTRODUCTION 1

1 Rationale 1

2 Literature review 2

3 Aims of research 3

4 Objects of research 3

5 Scope of research 4

6 Research methodology 4

CHAPTER 1: THEORETICAL BACKGROUND ON EMPLOYEE MOTIVATION 6

1.1 Overview of employee motivation 6

1.1.1 Definition of employee motivation 6

1.1.2 Nature of employee motivation 8

1.1.3 Factors impacting employee motivation 9

1.2 Theories on employee motivation 14

1.2.1 Herzbergs’s theory 14

1.2.2 Maslow's theory 16

1.3 Employee motivation in banking sector 18

1.4 Employee motivation experience in some banks 22

1.4.1 Employee motivation experience of Technology and Commercial Joint Stock Bank 22

1.4.2 LienViet Post Joint Stock Commercial Bank (LienVietPostBank) 23

1.4.3 Lessons drawn in terms of employee motivation in BIDV – Transaction Center 1 24

CHAPTER 2: ASSESSING THE SITUATION OF TELLER’S MOTIVATION AT BIDV – TRANSACTION CENTER 1 26

2.1 Introduction of BIDV - Transaction Center 1 26

2.1.1 History and development of BIDV - Transaction Center 1 26

2.1.2 Human resources of BIDV - Transaction Centehr 1 28

2.2 Job description and human policies applied for tellers at BIDV - Transaction Center 1 31

2.3 Analyzing current employee motivation at BIDV - Transaction Center 1 33

2.3.1 Demographic data of respondents 33

2.3.2 Analyzing current employee motivation at BIDV - Transaction Center 37

2.4 Summary of finding of tellers’ motivation at BIDV - Transaction Center 1 62

2.4.1 Overall assessment of tellers’ motivation at BIDV - Transaction Center 1 62

2.4.2 Achievements 63

2.4.3 Limitations and possible causes 65

CHAPTER 3: PROPOSAL ON SOLUTION FOR IMPROVING TELLER’S MOTIVATION AT BIDV – TRANSACTION CENTER 1 68

3.1 Development orientation of BIDV - Transaction Center 1 68

3.1.1 General business development 68

3.1.2 Development orientation of human resources 69

3.2 Recommendations to improve tellers’ motivation at BIDV - Transaction Center 1 72 3.2.1 Increasing income for staffs 72

3.2.2 Supplementing more promotion opportunities and better policies for tellers 73

3.2.3 Improving working conditions by dividing work into many shifts to reduce working time for tellers 75

3.2.4 Other recommendations 79

CONCLUSION 80

REFERENCES 81

APPENDIX 83

ABBREVIATION

BSNEU National Economics University Business School

Techcombank Vietnam Technological and Commercial Joint stock bank

LIST OF FIGURES

Figure 1.1: Herzbergs Two-Factor Theory of Motivation 14

Figure 1.2: Maslow's Hierarchy of Needs 16

Figure 1.3: Proposed model of employee motivation for tellers at BIDV - Transaction Center 1 19

Figure 2.1: Organizational structure of Transaction Center 1 28

Figure 2.2: Gender of tellers at BIDV - Transaction Center 1 34

Figure 2.3: Maritualstatus of tellers at BIDV - Transaction Center 1 34

Figure 2.4: Age of tellers at BIDV - Transaction Center 1 35

Figure 2.5: Education of tellers at BIDV - Transaction Center 1 35

Figure 2.6: Major of tellers at BIDV - Transaction Center 1 36

Figure 2.7: Seniority of tellers at BIDV - Transaction Center 1 36

Figure 2.8: Work itself of tellers at BIDV - Transaction Center 1 38

Figure 2.9: Salary of tellers at BIDV - Transaction Center 1 43

Figure 2.10: Salary for staff at banks in Vietnam 45

Figure 2.11: Working conditions of tellers at BIDV - Transaction Center 1 47

Figure 2.12: Promotion of tellers at BIDV - Transaction Center 1 51

Figure 2.13: Training and development of tellers at BIDV - Transaction Center 1 54

Figure 2.14: Direct supervisionof tellers at BIDV - Transaction Center 1 57

Figure 2.15: Overall work motivation of tellers at - BIDV - Transaction Center 1 61

LIST OF TABLES

Table 2.1: Staff’s qualification at BIDV - Transaction Center 1 29

Table 2.2: Staff’s gender at BIDV - Transaction Center 1 29

Table 2.3: Staff’s age at BIDV - Transaction Center 1 29

Table 2.4: Staff’s seniority at BIDV - Transaction Center 1 29

Table 2.5: Work itsefl of tellers at BIDV - Transaction Center 1 37

Table 2.6: Salary of tellers at BIDV - Transaction Center 1 42

Table 2.7: Working conditions of tellers at BIDV - Transaction Center 1 46

Table 2.8: Promotion of tellers at BIDV - Transaction Center 1 50

Table 2.9: Training and development of tellers at BIDV - Transaction Center 1 53

Table 2.10: Direct supervision of tellers at BIDV - Transaction Center 1 56

Table 2.11: Overall work motivation of tellers at BIDV - Transaction Center 1 60

Table 2.12: Overall assessment of tellers’ motivation at BIDV - Transaction Center 1 63

INTRODUCTION

1 Rationale

In the market economy, businesses if wishing to survive and develop, in addition to the infrastructure is fully equipped with modern and advanced ones, need to maximize human resources because people are the most important factor for business success Having a team of loyal and dedicated people for business is thing any leaders want to achieve

However, in fact, there is now common phenomenon is that employees often move another job, they do no longer work with the business After a period of inadequate sense, they will find new job This considerably influences the organizational structure as well as the company’s direction of business development There are many reasons leading to this situation, one of the important reasons is that the company has not satisfactorily fulfilled the compensation, working conditions which cannot stimulate and create motivation to work for them

Finance - Banking is a key area in the economy Therefore, employees in such industry are passionate, creative, dynamic and always have to adapt to change Over the years, Joint Stock Commercial Bank for Investment and Development of Vietnam (BIDV) always strives to maintain its leading position, of which the bank is considerably

contributed by the staffs Banking sector is one of the particular sectors since the quality of

products and services depends mainly on suppliers and staffs directly serving for customers

More than 60 years of establishment and development, up to now, BIDV is one of the three biggest joint stock banks in Vietnam BIDV is not only famous for its great development in technology, successfully rapid growth, a large number of customers, it also possesses more than 24,000 officials and staffs in more than 180 branches and over 800 transaction offices Transaction center is one of the Top biggest branches of BIDV Of which, position of tellers in BIDV in particular and in banks in Vietnam in general is very necessary and important Every day, they have to contact with customers to receive requests, handle transactions and record all transactions related to cash transactions, checks, savings, transfer, foreign currency exchange, account opening arising at the counter Every teller has the role of a salesman and introduces a cross-service, while also creating an image, brand and excellent service quality of a bank; thereby helping banks raise capital and interests However, nowadays rate employee turnover in teller position in BIDV in general and in this branch in particular is quite high, approximately 22% Most of

tellers must work hard within more than 8 hours per day (usually before 8 a.m until about 7 p.m); meanwhile their income is much lower than other positions in the bank and they seem not to be given the appropriate promotion and development opportunities These are the main reasons of demotivating at work of employees

For many above reasons, the author decided to choose the topic “Improving Teller’s motivation in BIDV – Transaction Center 1” with an aim of analyzing the current

situation of BIDV’s tellers at the Transaction Center 1 and then recommending solutions for improving their motivation at work and reducing intention turnover in teller position

2 Literature review

Studying about employee motivation in the banks in Vietnam and in the world, there have been many researches conducted with the aim of helping the bank improve their employee motivation We can mention some following researches:

The article “The 1977 quality of employment” supposed, when people spend much

time for work, their understanding about factors influencing on their working motive and motivation in their work is very important for improvement

According to Andrew Oswald, in his 2001 book, "Are you happy at work," the

working motivation of people is the degree to which employees enjoy their work and the attitude based on the perception of the employees (positive or negative) about their job or working environment Simply, the better the working environment meets demands, desires, values and characters of employees, the higher employees get working motive and motivation

In 2007, Boeve studied about “Factor creating motivation for teachers in faculty of assistant doctors in medical schools in the US” on basis of Herzberg theory and job

description indicator of Smith, Keendall & Hulin He divided motivation factors into two group such as internal factors: nature of work and opportunities training and promotion and external factors: salary, support of senior managers and relationship

In June, 2010, Quang Truong, Beatrice JIM and Chris Rowley showed their viewpoint and research results on human government in Vietnam in the research

“Globalization, competition and human government in transition economy: The Case of Vietnam” According to the article, companies in Vietnam generally only have a General

Administration Office in charge of administration and personnel management Typically, this department focuses solely on paperwork or human resource management but not on major human resources decisions such as planning, recruiting, training and developing and

Bui Thi Minh Hong (2015) studied about “Improving employee motivation in Vietnam Technological and Commercial Joint Stock bank – Thang Long Branch” The

research focused on clarifying general theoretical framework on employee motivation, analyzing current employee motivation in Thang Long Branch through studying personnel documents of the Branch and questionnaires; thereby proposing solutions to improve the employee motivation for the employees in the whole Branch

Nguyen Si Hung (2016) studied about “Creating employee motivation in Joint Stock Commercial Bank for Foreign Trade of Vietnam – Vietcombank Kon Tum” In this

research, the author clarified basic theoretical framework about working motivation and theoretical models; analyzing and assessing current working motivation of employees and recommending possible solutions for enhancing working motivation of employees

Research by Nguyen Khac Toan (2010) of "Factors influencing the employee motivation in Asian Commercial Bank, Hue Branch”, there are 5 factors impacting on

employees' motivation such as: Working environment, wages and welfare, nature of work; excitement in work; and development prospects Most of the sales staffs are satisfied with these factors of the Bank The research results also show some shortcomings in human resource management that the bank needs to address

In general, the above researches only mentioned to the motivation for employees or laborers in the bank and there has been no studies about motivation of teller in bank, especially in BIDV – Transaction Center 1 Therefore, the author decides to choose this topic as my research topic as necessity and distinction

5 Scope of research

- Time: Secondary data: was collected from 2016 to 2018

Primary data: 2019

- Location: BIDV – Transaction Center 1, Vincom Tower, No 191 Ba Trieu Street,

Le Dai Hanh Ward, Hai Ba Trung District, Hanoi City

6 Research methodology

The thesis uses collection methods of secondary data and primary data

+ For collection methods of secondary data, it will be collected from both internal and external sources Of which, external sources consisted of the Internet resources, newspaper, articles and agency related to employee motivation; meanwhile, internal sources include annual reports of BIDV (2016, 2017 and 2018) to collect the relevant information about employee motivation; employee effective survey 2019

+ For collection methods of primary data, the author uses two methods namely qualitative and quantitative method For qualitative method, the author will conduct the following in-depth interviews with 02 people including Director of Human Resource of BIDV – Transaction Center 1 and Chief accountant of BIDV – Transaction Center 1 The contents of the interviews with Director shall focus on getting his viewpoints about the staff motivation at BIDV – Transaction Center 1 in particular, how the staffs think about the branch’s motivation and motivation plans for improving working satisfaction for staffs

at BIDV – Transaction Center 1 The contents of the interview with chief account will concentrate on her opinions about salary policy of the bank for the staffs, especially tellers

at BIDV – Transaction Center 1

In term of quantitative method, primary shall be collected through structured questionnaire survey: the survey shall be conducted via structured questionnaires The designed questionnaires aim at collecting employee assessment on conditions, work environment, personal goals and organizational goals when working at teller position at BIDV – Transaction Center 1

- Respondents: Tellers who are working at BIDV – Transaction Center 1

- Sample size: At the Transaction Center 1 has over 240 tellers, and with the purpose of reaching the objectivity of the survey data, I would like to use random sampling method and sample size chosen is all 240 people

- Questionnaire design: the questionnaire covers motivation factors on Herzberg’s two-factor theory The author applies the measurement scale of Linkert, 5-point ranking

from 1: Strongly disagree, 2: Disagree, 3: Neither agree or disagree, 4: Agree, and 5: Strongly agree

Research results are as follows:

Qualitative data will be analyzed by using qualitative data analysis techniques such

as critical incident technique, content analysis, Quantitative surveyed data will be analyzed using descriptive statistics such as percentage (%), frequency (f) and mean

+ Data processing method: The data was pre-processed by using the Microsoft Excel for Microsoft Professional Windows XP and SPSS package for frequencies, reliability analysis and correlation analysis Such SPSS package helped the author illustrate her study by many useful and effective charts, diagrams and pies

7 Thesis structure

Besides introduction, conclusion, references and appendix, the research includes three main parts as follows:

Chapter 1: Theoretical background on employee motivation

Chapter 2: Assessing the situation of teller’s motivation at BIDV – Transaction Center 1

Chapter 3: Proposal on solution for improving teller’s motivation at BIDV – Transaction Center 1

CHAPTER 1: THEORETICAL BACKGROUND ON EMPLOYEE MOTIVATION 1.1 Overview of employee motivation

1.1.1 Definition of employee motivation

There are many definitions of motivation defined by many authors and writers in the world In English, the word “motivation” is derived from the word “motive” which refers to demands, expectations, desires, wants or drives of an individual The motivation

is factors inside that influence action of people Think of “motive” as the thing that moves your actions and changes your behaviors

According to Drummond (1990) “Motivation is in the individual and helps to explain behavior Motivation is an intricate inside process with three components: what drives the individual to behave in certain ways, what steers the behavior, and what maintains the behavior To satisfy the employees’ need is very difficult because each employee has different characteristics that affect behavior The factors that organizations have to be concerned with are self-concept, attitudes, values, interests, feelings, personality, and life experiences They have to encourage employees through a positive organizational climate that is motivating”

Bagraim, Cunningham, Potgieter and Viedge (2007) defined motivation as the internal force of person that arouses, directs and sustains our behavior It means motivating employees is not only a process but also the methods and art Organizations or managers make employees understand the goals, personal responsibility and associated personal’s goals with the organization's goals and then creating intrinsic motivation of employees towards completion of organizational objectives

Ebrahimi and Wachtel (1995) supposed motivation is a basic psychological process Luthan (1998) reckoned motivation as "a process that starts with a physiological deficiency or need that activates a behavior or a drive that is aimed at a goal incentive" He asserted motivation is the process that arouses, energizes, directs, and sustains behaviors and performance That is, it is the process of stimulating people to action and to achieve a desired task Then one way of stimulating people is to employ effective motivation, which makes workers more satisfied with and committed to their jobs Money is not the only motivator There are other incentives which can also serve as motivators

There are some definitions of motivation, in my opinion, brief, the definition of motivation refers to the internal force of person that arouses, directs and sustains our behaviors It helps to explain behaviors, and actioners

The definitions of the authors give us different perspectives on motivation and how motivation affects human behavior According to my personal opinion, when considered in terms of motivation include internal factors, external factors and the factors affecting the dynamics will help us to have the perspective to evaluate and promote work motivation Therefore, within the framework of this article the author used the definition of Drummond (1990) “Motivation is in the individual and helps to explain behavior Motivation is an intricate inside process with three components: what drives the individual

to behave in certain ways, what steers the behavior, and what maintains the behavior To satisfy the employees’ need is very difficult because each employee has different characteristics that affect behavior The factors that organizations have to be concerned with are self-concept, attitudes, values, interests, feelings, personality, and life experiences They have to encourage employees through a positive organizational climate that is motivating”

When individuals are intrinsically motivated, the drive comes from internal desires

or needs Individuals usually have feelings of personal satisfaction or gratification after completing a task successfully Extrinsically driven motivation is determined by monetary

or tangible rewards that one receives for completing a task When an individual is extrinsically motivated, they tend to look at what they will receive for completing a certain task such as money or anything that is of value to the individual And improving work motivation is to lead employees to achieve the goals set for the largest effort

Nguyen Van Diem and Nguyen Ngoc Quan in “Human Resource Administration” (2003) defined employee motivation is the aspiration and voluntary of employees towards achieving organizational goals

According to the textbook of organizational behavioral of Bui Anh Tuan in

“Textbook of Organizational behavior” (2003), employee motivation is the intrinsic factors

to motivate people to work in conditions that enable productivity and high efficiency Expression of motivation is the willingness, efforts and passion to work with an aim of achieving the organizational goals as well as the employees themselves

Ho Ba Tham in “Motivation and Creating motivation for society development” (2004) supposed employee motivation is the desires and willingness of the employees to increase their efforts towards achieving the organizational goals Personal motivation is the result of many resources working simultaneously in human beings, in human living and working environments

Any emloyees going to work are expected to assert themselves, be successful, and want to earn high income for their personal lives When people are in different positions with different psychological characteristics, they will be different desires Managers need

to have different effects on each employee Strong motivation will stimulatepeople to act positively and effectively and vice versa

Motivation is a system of measures, policies and organizational behaviors affecting workers to make themmore satisfied with their works and to strive to achieve the personal and organizational goals Thus, employee motivation is understood as encouraging and motivating activities that affect the employees’ needs to create a change in their behaviors towards the organization’s hopes and goals Creating motivation helps to motivate in every business Managers in the organizations who want to grow their businesses must use appropriate policies, measures, and management tools that affect employees in order to help them work with enthusiasm, create creativeness in the work process to contribute to the organization The important issue of employee motivation is to understand the employees’ needs and then recommend solutions to stimulate, create motivation for employees to work enthusiastically in the workplace

1.1.2 Nature of employee motivation

Employee motivation is always associated with a job, an organization, a specific working environment and a specific individual This means that there is no general motivation, as with each individual being different, with each job they perform differently, with different working conditions and different attitudes that workers themselves will be different work efforts

Employee motivation is not inherent in every human being and it is constantly changing At this point, employee motivation is high, but at times labor force is low or it does not necessarily exist in the workers themselves In different conditions and circumstances, employee motivation will be promoted differently Thanks to this feature managers can intervene and impact on employees so that they can promote employees' work efforts

Employee motivation is voluntary Each employee will personally feel the effort to work depending on the time they feel comfortable and interested Human nature is to like

to be proactive in everything, not passive Of course, in an organization the initiative of the individual must be within the framework And the manager must know this feature in order

to promote the best labor motivation and it must have the art to enhance the voluntariness

Employee motivation is an important factor leading to an increase in individual labor productivity and effective production in the context of other factors unchanged Employee motivation is like an invisible force from within that motivates them to work harder, strive harder, work tirelessly However it is important to understand that motivation

is a factor, not a source, that leads to an increase in individual labor productivity and business productivity because this depends a lot on the qualifications, skills of workers, and facilities, equipment and machinery

Even though employees are not motivated, they can still complete their assigned jobs, and they can still meet the requirements of the managers, because they are still responsible for the work, qualified and skilled They work according to inertia and ability

At that time, the results of that work did not reflect their best When working motivated, not only do the jobs get done, they also do a lot better It is possible to get the job done sooner, be able to make better products, do more, their ability is revealed, and this capability will be an important factor for organizational development, giving organizations competitive advantage in the current economy

In short, the nature of workers is what motivates people to take action to achieve certain goals Human goals are one that is consciously reflected by workers' motivations and their actions

1.1.3 Factors impacting employee motivation

Motivation of employees does not naturally appear but is a combination of resources on the part of the employee, the living and working environment of the employee Thus, the motivated behavior of employees in an organization is influenced by many factors and can be divided into the following three groups:

a Factors belong to the employee itself

Personal needs system: Human behavior is a purposeful act to satisfy certain needs

of yourself Every individual participating in an organization wants to satisfy his or her own needs These needs constitute a system of personal needs, including physical and spiritual needs such as high income, opportunities for advancement, and work in accordance with competence and forte If working at the organization, their needs are satisfied, they will create a motivating force to motivate them to work hard, wholeheartedly with the work, long-term commitment to the organization, but vice versa

If demand is not satisfied they will not be motivated to strive to work, labor efficiency is not high and tend to leave the organization to find another workplace where their needs are

met Therefore, firstly, the manager must know the wishes of the employee in order to take measures to satisfy their needs in order to create labor motivation

Personal goals: Personal goals are the goals of each individual It dictates what each individual has to do and how to achieve it, and it also creates motivation to motivate individuals to try hard to pursue their goals In addition to personal goals, workers must also be responsible to work to achieve the organization's overall goals In fact, sometimes the personal goals and the goals of the organization are in conflict, so without compromise, the goals of both parties cannot be achieved Therefore, the problem for managers is to know the goals of the individual according to the expectations of the organization, make employees understand and see when that the organization's goals are fulfilled is also to achieve the goals of an individual in order to motivate an individual for the organization

Ability and work experience: Many studies have shown that the higher the ability and experience of employees at work, the more confident employees feel at work and they will desire to demonstrate the competencies of employees through the results of work In these people, the need to be respected and highly appreciated by their superiors Autonomy

in the work occupies a quite important position in creating labor motivation Therefore, the manager needs to arrange the jobs in accordance with the forte ability and experience of workers to create conditions for employees to promote their advantages

Individual characteristics of employees: some features such as gender, age, psychology, personality, religion all affect the working behavior of workers Each employee is an individual with different personal characteristics so effective use of the organization's human resources requires managers to care, capture and understand these factors from which to build appropriate management policies to promote the strengths of each individual and create labor motivation

Living standard of employees: Any employee joining to work for an organization firstly desires to have a high salary However, depending on the economic status of each individual, the "high salary" factor is evaluated in different importance levels For the workers with low income, difficult economic situation, they always consider salary as the top goal while for those who have good economic status, wealth, salary is not the top work goal, but instead there are other needs such as interesting jobs, career development opportunities At present, Vietnam's per capita income is still low So going to work to get a high salary to meet daily physiological needs is still considered a top priority for most workers

Position and role of industries in society: The employees working in the fields that society cares about and appreciates will feel proud, love their work, strive in task In contrast, for jobs in areas that society is less interested in and do not appreciate, workers may be dissatisfied with the job, easy to develop an inferiority mentality towards the job undertaken, reduce work motivation Therefore, in order to motivate employees, managers need to take measures to create an interest in the work for employees, affecting the psychology of employees so they really respect and are proud of their work and at the same time propose measures to enhance our position and image, to change society's perception

of the profession

Technological characteristics: The technology level has a significant impact on the working motivation of workers Modern and advanced technology and techniques impose that employees' qualifications must be improved to meet the requirements of the jobs This motivates employees to strive to study, research and improve their skills so that they can survive and develop or they will be eliminated Therefore, on the business side, it is also necessary to pay attention to the training to improve the qualifications of employees, orient the employees with the knowledge and skills that need to be trained in accordance with public technical specifications of the enterprise

Working conditions: Working conditions including factors such as machinery, equipment, organization and workplace layout, environmental sanitation factors (dust, noise, etc.), labor cooperation have a great impact on the ability to work, health, work attitudes and work efficiency If workers are able to work in good working conditions such as: fully equipped with machinery and equipment, properly arranged workplaces, modern production methods that bring high labor productivity, reduce lightening the hard work, ensure occupational safety and protect the health of workers, make the atmosphere comfortable, trusting All will make workers feel peace of mind to work, have conditions

to promote creativity in work to bring high productivity and vice versa Therefore, managers must constantly pay attention to creating favorable conditions for employees to motivate them to work hard

Management style of leaders: In an organization, the leader is the person who directly manages and directs the employees so the leadership's working style has a great influence on psychology and results of subordinates Currently, leadership styles can be divided into three categories An authoritarian autocratic style of leadership is the manager himeself makes decision and forces employees to comply without questions This style often creates stressful psychological work for the employee They work as a the machine,

without the motivation to work However, it is effective in situations that require quick and assertive decisions A democratic leadership style is a leader who is interested in attracting employees into the decision-making process, consulting with employees to make the final decision, establishing a spirit of cooperation but sometimes will have difficulty as well as delay in making decisions if the leader is not assertive Liberal leadership style means that the leader increases autonomy for subordinates by allowing subordinates to make decisions, reducing intermediary management costs, but if the subordinates are not capable and committed with the organization, it will bring damage to the organization

Each leadership style has its own advantages and disadvantages, so the leader needs

to identify himself a suitable leadership style to motivate employees at work to achieve the organization's goals

Corporate culture: Corporate culture is created from the overall goals, management policies, human relationships, working atmosphere, working style, material and mental symbols such as post singing, costumes, etiquette and etc., which creates a corporate identity, values, beliefs, lifestyles and modes of action as well as behavior attitude of workers Enterprises with strong business culture will help members of the company to stick together, understand each other better, create a spirit of self-discipline, friendly colleagues to work together to achieve the general goals of the organization

Human resource management policies: including aspects from recruiting, staffing, evaluating work performance, training and developing human resources, labor remuneration, hygiene and labor safety Such factors have great influences on lemployee motivation Proper personnel management policies not only help managers effectively run the business to achieve the organization's goals, but also ensure the rights and expectations

of the laborer, thereby affecting the working motivation of workers If the employee is working in a safe, high-paying environment with the performance of the job, many opportunities to advance and study, treated fairly, facilitated to promote his/her ability forte they will stick with the company, trying their best to contribute to the company On the contrary, if the personnel management policies are unreasonable or not well implemented without amendments, in the long term, the employees may feel dissatisfied, reduce their motivation and even leave the business to find better places to work Therefore, in order to motivate employees, it is necessary to set up scientific, clear, fair and flexible personnel management policies

Organizational Structure: The organizational structure is a system of tasks,

Organizational structure has a decisive role to the entire operation of the organization Reasonable, compact organizational structure, few clues, clear, flexibe, non-overlapping and consistent powers and responsibilities of each department as well as each member help

to implement tasks quickly and effectively, and at the same time making employees aware

of their position in the organization and from there, they will be proactive and committed

to their work On the contrary, if the organizational structure is unreasonable, many clues and manyoverlapping departmentss, it will lead to stagnation and inefficiency

Factor belongs to the work that workers undertake

The work that employees perform: Employees are interested, motivated to work when they are arranged to do jobs suitable for their forte, have the opportunity to use knowledge and skills into work, are autonomous in the job and receive feedback on work results, enjoy the right benefits when successfully completing the assigned work However, along with long working hours, the repetitive task will appear boredom leading to reducing and eliminating employee motivation Therefore, in order for the job to keep employees interested, managers need to pay attention to the analysis and design of the work so that the tasks must be specifically designed, challenging, responsibilities must be clearly defined, jobs are assigned in accordance with the capacity and forte of employees so that they can maximize their capabilities

External environmental factors

Government law: especially labor law is the legal basis to ensure the rights and obligations of parties in labor relations The more strict the law and the more effective it is, the more peace of mind that employees will work because their rights are protected by the law, they are not afraid of being exploited and unreasonably forced by their employers; thereby motivates them to work To do this, the government and interdisciplinary agencies must constantly study and improve the legal system more and more effectively

Social welfare system: The social welfare system has a role to ensure and support a part of life for workers after retirement or due to labor accidents, occupational diseases, maternity As the social welfare system is growing, workers' lives are increasingly guaranteed When employees are fully covered by social insurance, they will feel more secure in their post-retirement life, so they will pay more attention to their work, work in the motivated and effective manner

Cultural values and national traditions: In European countries like the United Kingdom and the United States, individualism is promoted, individuals first care about their own interests and then their relatives They value their own efforts, want to assert

themselves by their own capacity, so the cohesion and collectivism in labor are not high Meanwhile, in the East, people tend to uphold the collective spirit, desire for cooperation, solidarity, support, and mutual protection This difference affects the morale and working attitude of workers Therefore, when developing human resource management policies, it

is necessary to pay attention to cultural values and national traditions

1.2 Theories on employee motivation

Figure 1.1: Herzbergs Two-Factor Theory of Motivation

Source: Motivation to Work, Herzberg 1959

- Group 2: consists of elements of the organizational environment such as company policy/ administration, direct supervision, income, interpersonal relations and working conditions According to Herzberg, if these factors are positive, they will help

prevent job dissatisfaction However, if only their presence, they are insufficient to create motivation and job satisfaction

According to Herzberg, the factors that lead to job satisfaction are separate and unrelated to the factors that create dissatisfaction in the job Therefore, managers seeking

to eliminate the elements that create dissatisfaction can bring stability but are unlikely to give motivation to work Hence, characteristics such as company policy and mechanism, supervision, interpesonal relations, working conditions and salary are attributed to the characteristics of the conditions When guaranteed, people will not be dissatisfied and they will not be satisfied In his opinion, if we want to motivate them, we should emphasize on achievement, work itself, responsibility and promotion

He also said that the hygiene factors need to be first and then the motivators will

be contributive The uniqueness of his theory lies in the fact that he distinguishes factors that lead to satisfaction and the factors that lose satisfaction Managers need to encourage people through motivators Hygiene factors need to be reached to some extent first to ensure that motivation is not diminished, but then to focus on motivators According to him, many managers have tried to use motivators to encourage, which is wrong and ineffective

Herzberg’s theory has both advantages and disadvantages as follows:

- Advantages: the theory is demonstrated through considerable empirical data Moreover, the theory is also included in other research which is assistant for the original hypothesis The theory provides practical solutions for corporations as well as organizations In addition, this theory is applied at every level of an organization and section

- Disadvantages: Research methodology is criticized Moreover, the theory does not consider individual personalities relating to motivator factors or hygiene factors The theory does not provide a motivational value for each motivator The research which was conducted by Herzberg only focused much on satisfaction and ignored productivity The reliability of theory is uncertain

Many authors have applied Herzberg’s theory to analyze the current situation about satisfaction and motivation According to Business case studies, it showed the subject about “Motivational theory in practice at Tesco: A Tesco case study” The study applied Herzberg’s theory to analyze the employee motivation Through applying the theory, Tesco indicated that Tesco staff can even be affected by restaurant menus

Employees thus become motivated in making choices that will increase their use of the

restaurants

1.2.2 Maslow's theory

Abraham Maslow's Hierarchy of Needs is one of the most widely used models when studying about personal motivation He argues that in every individual, there always exists a complex system of five need groups, from low to high Of which:

- Physiological needs: are at the lowest position in the system These are the needs that people are always trying to satisfy first, like air to breathe, sleep, and drinking These needs are basic and people are always thinking first

- Safety needs: After satisfying the mentioned above physiological needs, this need will appear At this level of demand, people will respond to signs of danger that threaten themselves, and workers do not like to work in dangerous conditions that prefer to work in the safer conditions

Figure 1.2: Maslow's Hierarchy of Needs

Source: Abraham Maslow, 1943

- Love/ belonging needs or social needs: When meeting these two needs, social or emotional needs will become important It is the needs to be loved, to have a friendship and to be part of a community

- Esteemed needs: include the needs or desires to obtain the high value of automation or stimulation and respect of others Maslow has divided into two categories: the categories of desires for power, achievement and faith for all, for independence and freedom

- Self-actualization needs: He supposed “although all the above needs are met, we still feel new dissatisfaction and anxiety will arise, since individual needs are being fulfilled that suits to them Obviously, these needs will appear when there is satisfaction of lower needs than those Not at the same time, everyone has the same needs, but at different times, different people have different needs However, in principle, the lower needs are satisfied before being encouraged to meet higher-level needs

Maslow's theory shows both strengths and weaknesses as follows:

- The theory’s advantage is that it stimulates individuals to change fundamental needs for higher needs, providing the clear information for personal growth

- In contrast, the theory fails to clarify why people prefer to ignore lesser needs in searching process of higher ones

There are many authors applying Maslow’s theory to their study Cathy H.C Hsu and Songshan Huang studied about “Travel motivation: a critical review of the concept's development” In this study, these authors applied Maslow’s theory to travel motivation theory and indicated the development of travel motivation concept in many years Moreover, the study also argued other concepts which influence in travel motivation As Hsu and Huang said (2008), this theory can be used to study the theoretical of many tourism researches

Moreover, Dr Nyameh Jerome (2013) applied Maslow’s theory to find out the impacts and implications on organizational culture, employee’s performance and human resource management Through analyzing the theory, it plays important role in organizations which seek success and excellence Moreover, it negatively affects the organizational culture, human resource management and employee’s performance

It can be said that two theories of Maslow and Herzberg have some common factors However, when considering the nature of this thesis as well as banking

environment, particularly BIDV - Transaction Center 1, the author concludes some most suitable factors which can be selected and applied to measure current employee motivation

at BIDV - Transaction Center 1 These are work it self, income, working conditions,

promotion, training and development, direct supervision and overall work motivation

1.3 Employee motivation in banking sector

In this research, considering the work nature of tellers in banking sector and according to opinion from in-depth interview with the Director of Human Resource at BIDV - Transaction Center 1 (he shared that currently, the bank has applied some motivation policies such as sending good staffs to training for developing their working competency, giving promotion for the better ones, recruitment always depends on clear job description for each position and so on Moreover, according to specific nature of tellers, the bank only focuses on some factors which directly influence on their interests and benefits such as income, promotion, training and development, working conditions, nature

of work and supervision and so on He also shared that for tellers, the factors with most influential levels are work itself, income, working conditions, promotion, training and development and direct supervision Moreover in 2017-2018, BIDV - Transaction Center 1 has planned to carry out the goals of “human resource development” so in 2018, most of staffs’ income shall be increased considerably), the author did think that theories of Maslow and Herzberg are the most suitale to measure employee motivation for tellers at BIDV - Transaction Center 1 Therefore, in this research, the author conducted to analyze

06 key factors including work itself, income, working conditions, promotion, training and development and direct supervision and 01 factor of overall satisfaction

Figure 1.3: Proposed model of employee motivation for tellers at BIDV -

Transaction Center 1

Source: The author’s summary

- Work itself/ Nature of work: This factor reflects the appropriateness levels of the

“work itself” with employees’ capacity and desirability Proper placement explores the potential of employees, thereby helping the enterprises increase productivity and make workers more satisfied with the job they are assigned if the job is appropriate to their ability The work suitability with the workers is reflected in many aspects of “work itself” such as whether the work is consistent with the capacity and expertise of the employee or not, whether the work is proper to their working competency and professional, whether they clearly understand about their on-going job, whether the current job brings them motivation, dedication or creativeness for employees, whether the job brings them challenges or prove employees’ individual capacity and whether the current job brings them stability and safety

In banking sector, motivation of work itself could be follows:

 The society shall be proud and respect their job

 Banking staff must apply more professional knowledge

 Their current job influences much on other individual in the bank

 The current job is challenging and interesting

 Banking staff must be creative for meeting job’s requirements

Employee motivation for Tellers Work itself

Income

Working conditions Promotion

Training and development

Direct supervision

- Income: Income is the employee's remuneration derived from his or her job Refering to Maslow's need theory, the demand for income is the basic needs and physiological needs In general, at the same job, the employees shall certainly feel more satisfied with the higher income In addition, the fair income is also appreciated by the workers The "income" factor is considered at some aspects such as suitability between income and employees’ contributions, workers can live on the current salary, other allowances are equally distributed

In banking industry, income could involve the following:

 Income is paid properly for their contribution

 They can have a good life for current income

 Salary is paid fully and timely

 They are given the appropriate allowance

 The bank always has the regime for bonus giving at Tet, holidays, etc

 Income is competitive comparing with other banks

- Working conditions: This factor reflects the working condition of the worker, including factors such as working time, workplace safety, protective equipment for workers' work, etc The workers who are created the good working condition will make a good assessment of their work On the contrary, they will feel dissatisfied with working conditions, work in anxiety, fear psychology and performance will certainly not be high

In banking industry, working conditions could be:

 Staff work in the modern and safe working environment

 The bank’s corporate culture is clear and friendly

 The Bank has suitable regime for the staffs’ working and relaxing time

 The Bank equips me with full and suitable facilities at work

- Promotion: Promotion reflects the organization always gives the fair and full development and career growth opportunities for all workers In Herzberg's theory, promotion refers to a motivational or stimulating factor for employees Promotion is associated with fairness and policies of HR development, creating opportunities to improve the professionals and skills of workers

Promotion in banking sector could be involved:

 Banking staff are given many promotion and development opportunities

 The bank always depends on employees’ capacity, seniority and contributions to work to give promotion

 The bank always give the right promotion opportunities for right position and right duty

 The bank’s promotion policy is clear enough

- Training: According to Wetland (2003), "training is seen as aninvestmentform of individuals or organizations for human resource." For any positions in any organizations, training for new employees as soon as recruiting is necessary for enhancing knowledge, skills and attitude For old ones, training shall help them supplement the lack knowledge This factor can be considered under some aspects namely professional training, opportunities to develop individuals, opportunities for proficient people Development refers the bank provides suitable development opportunities for all staff

Traning and developmet could be:

 Training courses are helpful for employees’ daily work

 When attending training courses, I am funded

 Training knowledge can be applied effectively for my daily job

 For meeting current job requirements, staff are supported with favorable conditions to enhance their qualifications

- Direct supervision: Supervision of leadership can bring satisfaction to the workers

by fair treatment, respect for their subordinate and willingness for supporting them They must be the skilled and talented persons to be able to direct their subordinate The supervision can directly influence on employees’ motivation because the employees’ satisfaction is increased when their leadersare knowledgeable and friendly and they shall

be dissatisfied and demotivated in case their supervisors don’t support and direct them when they face with difficulites They cannot accomplish their job, which considerably impacts on performance

Direct supervision refers:

 Superiors always encourage and motivate their subordinate

 Managers always listen and respect employees’ opinions

 When facing with difficulties, the subordinate are always directed and instructed by their direct superiors

 Staff feel satisfied with their superiors’ leadership and management style

 Direct superiors are skilled

1.4 Employee motivation experience in some banks

1.4.1 Employee motivation experience of Technology and Commercial Joint Stock Bank

Technology and Commercial Joint Stock Bank (Techcombank) is a multi-purpose urban commercial bank providing comprehensive, diverse and highly competitive financial products and services to residents and businesses for the purpose of satisfying customers and creating added value for shareholders, benefits and development for employees, contributing to the development of the community Techcombank is one of the largest and growing banks in Vietnam, established on September 27, 1993

- Creating motivation through salary

Technology and Commercial Joint Stock Bank is a large-scale enterprise, so the bank has developed its own payroll policy based on the regulations of the state In fact, the branch makes timekeeping every day of the month for each employee At the end of the month, the timekeeper summarizes the days of work, the number of day-off for each employee, and then sends it to the accounting department to Payroll

Wages are paid in accordance with to the agreement between the Bank and employees, ensuring the interests of the Bank and employees in accordance with the provisions of law

Salary and allowances for employees are determined based on the scope of responsibilities, roles, capabilities and achievements of the employees themselves as well

as the business results, policies and strategies of the Bank

Wages and allowances of employees are ensured to be fair in internal terms and competitive with the labor market in order to attract, motivate and retain truly qualified and long-term employees with the Bank

- Creating motivation through bonuses

Bonuses aside from meeting material needs also have a great spiritual meaning When employees are rewarded, their achievements are commended They will be excited when working, which is a good form of motivation

At Techcombank, the bonus payment for employees is based on the year-end bonus fund, which means that the Bank will deduct 2.5% of added value to create a year-end reward fund On the basis of the year-end reward fund, the Board of Directors rewards the members of the Board of Management The General Director proposes the Board of Directors to approve the award of bonuses to other managers and employees of the Bank with good performance on the basis of the Bank's performance evaluation system

The bank divides allowances into various types such as seniority allowances, hazardous allowances, expensive allowances, capacity allowances, mobile allowances For each type of allowance, there is some support for employees, acknowledging their contributions to the organization such as recognition of employee loyalty and commitment,

or assisting employees in taking care of employees Working in hazardous environment such as cashier, cashier, vault keeper This is a good task in motivating the Bank

- Creating motivation through benefits and services

In recent years, the Bank has paid attention to welfare and services as this is one of the motivations for employees that directly affect the business performance of the business

Officers and employees are allowed to attend tourism and entertainment activities organized by the bank when conditions permit (usually held on weekends or on holidays, anniversaries of the Bank or establishment of the branch,…)

1.4.2 LienViet Post Joint Stock Commercial Bank (LienVietPostBank)

LienVietPostBank with modern technology base, strong financial potential and professional, experienced and enthusiastic staff is on the way to become a Leading Commercial Bank and aiming to develop into a strong financial and banking group in Vietnam

LienVietPostBank always considers human resources as the core element and valuable asset of the Bank Therefore, the HR policy here is built with the purpose of turning human resources into a leading competitive advantage of LienVietPostBank LienVietPostBank's personnel policy is to put the relationship between the Bank and its employees at the center of the policy, with the highest goal of the development of LienVietPostBank which always accompanies the satisfaction of employees’ work and interests

LienVietPostBank's employment policy creates fair and reasonable opportunities for all employees of the Bank, depending on the capabilities of each person in every aspect: recruitment, training, appointment, salary review, and reward consideration

- Salary – bonus policy

Salary at LienVietPostBank is paid on the principle of fairness, reasonableness, suitable to the qualifications, capabilities, performance, work quality, spirit, attitude and responsibility assigned tasks of each employee

In addition to salary, when working at LienVietPostBank, employees also enjoy many different allowances depending on the characteristics of each job position such as: Attractive allowance, Expensive allowance, Toxic allowance and the money to support

the cost of gasoline, phone, lunch In the allowance regime, LienVietPostBank applies the Senior Allowance regime to recognize loyalty and long-term commitment to dedication

of staff for the Bank

In addition to the salary and allowances policy, LienVietPostBank also applies a bonus policy to motivate and encourage employees throughout the system to make every effort and dedication in all positions to build LienVietPostBank more and more developing and growing These collectives and individuals with outstanding achievements will be evaluated and rewarded worthily and promptly in accordance with uniform, fair and public regulations, combining spiritual rewards and material rewards

- Training and development policy

LienVietPostBank's training courses include both domestic and foreign training, especially LienVietPostBank focusing on training children of the Bank’s shareholders and employees

Through training, employees will be improved knowledge, professional qualifications and other skills, thereby creating the greatest value for themselves and the Bank At the same time, through the training process, the staff also identifies their own development goals in line with the Bank's development goals

LienVietPostBank's training courses are effectively designed based on the Bank's practical business requirements to ensure that employees can fully apply the skills and knowledge trained in the work; thereby increasing employee trust and motivation, motivating employees to constantly develop and diversify professional careers to create opportunities for themselves

- LienVietPostBank commits to fully implement the State's regulations on regimes and policies for employees such as: Social Insurance, Health Insurance, leave, and convalescence and health rehabilitation and so on In addition, LienVietPostBank also applies a number of separate regimes and policies to attract, motivate and create long-term attachment of employees to the bank such as: The regime of regularly difficult and unexpected allowances, travel, visiting, vacation, periodic health check regime and etc

1.4.3 Lessons drawn in terms of employee motivation in BIDV – Transaction Center 1

From the experience of motivating employees of some commercial banks in Vietnam mentioned above, some lessons can be drawn from the motivation to work for employees applied to with BIDV – Transaction Center 1 as follows:

- Training and developing human resources

Planning and diversifying types of training and encouraging self-study under the allowable conditions to create maximum opportunities for updating knowledge and skills for cadres to improve professional skills and skills, thereby increasing productivity, quality and efficiency

Sending excellent officials to overseas training to stimulate emulation employees to study and work while creating a source of high-quality cadres to achieve the goal of motivating employees

- Remuneration policy

Developing regulations on payment of wages based on results and efficiency of work, which have the effect of encouraging units and officials to work hard to increase productivity, quality and efficiency

Having a separate salary policy for good employees, special positions with higher remuneration than ordinary employees to encourage talents, retain good employees and attract talent from the outside

Establishing regulations on rewarding according to work results (when exceeding the plan) to each employee in order to stimulate and encourage the spirit of emulation to work beyond the assigned plan

Paying attention to deploying regular rotation of cadres with a time-limit according

to the list of titles, creating opportunities for officials to perform many different jobs to increase the capacity of officials and increase the quality of work

- Working conditions

The branch needs to build a professional, dynamic but also friendly and warm working environment so that when working, officials and employees will feel they are always interested in, sharing and contributing to and promoting the self-worth to build a BIDV more and more growing

CHAPTER 2: ASSESSING THE SITUATION OF TELLER’S MOTIVATION AT

BIDV – TRANSACTION CENTER 1 2.1 Introduction of BIDV - Transaction Center 1

2.1.1 History and development of BIDV - Transaction Center 1

Transaction Center 1, formerly known as Transaction Center 1 (abbreviated as SGD1), was established on March 28, 1991 in accordance with the Decision No 76 QD/TCCB of the General Director of Joint Stock Commercial Bank for Investment and Development of Vietnam (BIDV), with the duty of being a direct business unit of the Head Office, effectively implementing the strategic tasks of the Joint Stock Commercial Bank for Investment and Development of Vietnam In addition to the tradition of allocating capital and serving capital needs in the field of capital construction investment, the Transaction Center 1 step by step becomes a key unit in the system of Joint Stock Commercial Bank for Investment and Development of Vietnam in terms of scale and turnover Transaction Center 1 is a place to experiment with new products, perform special customer care tasks, and an environment to train managers and professional staff for the Joint Stock Commercial Bank for Investment and Development of Vietnam At the same time, Transaction Center 1 is also a pioneer in successfully deploying a new technology system, a plan to modernize the bank and a payment system, a new management model in the direction of a modern bank

Since its inception, Transaction Center 1 has undergone many stages, including some of the following development milestones:

- On the 10th anniversary of its founding - in March 2001, the Transaction Center reached the scale of total assets of VND 9,900 billion, outstanding loans reached VND 4,846 billion, collected service fees of tens of billion and the service structure accounted for 16.27% of profit before tax It can be said that the results in the inception phase have created a solid foundation for the next development step

- From 2008 - May 1, 2012: this is a period of drastic change in both BIDV system and the Transaction Center 1 BIDV has changed its operating model to TA2, accordingly credit activities were organized in a number of steps, clearly defining the functions and tasks of each department on the principle of limiting risks to the Bank On November 1,

2009, implementing the State Bank's decision that each commercial bank was allowed to operate only one transaction office, Transaction Center 1 was renamed Branch of Transaction Center 1 with a model organization does not change At the same time, during

unit of level I branch under BIDV, namely Hoan Kiem Branch and established 03 additional transaction offices such as Transaction Center 8, Transaction Center 9, Transaction Center 10

- From May 1, 2012 - now: This is an important milestone for the whole BIDV system in general and the branch of Transaction Center 1 in particular when BIDV officially transformed the organizational model from 100 % of State capital into joint-stock enterprises, entering the stage of comprehensive renovation of organization and operation after conversion into Joint Stock Commercial Bank for Investment and Development of Vietnam Accordingly, on May 1, 2012, the Board of Directors issued Decision No 30/QD-HĐQT establishing the branch of Transaction Center 1 - under BIDV

With great efforts and successes of the Transaction Office 1 h, the branch has been awarded the First-class Labor Medal awarded by the President in the 2006-2010 period, the Second-class Labor Medal in 2001- 2005, Third-class Labor Medal for the period 1997-

2001, Title of Labor Hero for the period 1997-2006 and many other noble awards These are encouraging results, the pride and honor of all employees of the Transaction Office 1

* Organizational structure of Transaction Center 1

The Board of Directors currently consists of 01 Director and 07 Deputy Directors The organizational model is rearranged according to TA2 model Accordingly, the model

of the Transaction Center 1 is arranged into 5 blocks: Customer Relationship (including corporate and individual management departments), Risk Management (including credit risk management and internal control department), Operations division, Internal management division and Subsidiary units (Transaction offices, savings funds)

Figure 2.1: Organizational structure of Transaction Center 1

2.1.2 Human resources of BIDV - Transaction Centehr 1

Up to now, BIDV - Transaction Center 1 has 08 transaction offices under with 240 staffs, including 20 management staffs, 45 Relationship Business offices (RBO), 29 Relationship managements corporations, 118 tellers, 7 international payment specialists, 21 Cash Vaults

BOARD OF

DIRECTOR

Customer Relations Division

Risk Management Division

Credit Management

Intern Payment Depart

Customer Service Offices

Treasury Depart Admin

Internal control division

Market Planning Depart

Financial Accounting

Computer Department

HR Depart Office

Transaction

6, 8, 9, 10

Savings Funds

Table 2.1: Staff’s qualification at BIDV - Transaction Center 1

Source: The statistic result, 2019

As you can see on the table, the bank tends to require of staffs having the Bachelor, and Associate Bachelor However, the percent of Bachelor at the bank are higher than the one of the Associate Bachelor BIDV - Transaction Center 1 has had recruitment method for staffs equipped perfect skills which are related to their work and are suitable with their work demands

Table 2.2: Staff’s gender at BIDV - Transaction Center 1

Source: The statistic result, 2019

BIDV - Transaction Center 1 has the rate of female staff (73%), higher than the rate of male staff (27%) Although the bank has the disparity between male and female, they don’t have sex discrimination, and tend to spare no efforts to supply good training quality for all staff

Table 2.3: Staff’s age at BIDV - Transaction Center 1

Source: The statistic result, 2019

As mentioned at the table, the rate of staff’s age at 26-35 accounts 57% They are young and have many experiences to meet the need of the bank as well as the customers

22 – 25 is the age accounting for 30% Although most of them just graduated, the bank has recruited them and trained them to be suitable with the work requirement

Table 2.4: Staff’s seniority at BIDV - Transaction Center 1

Currently, most of customers tend to desire that staffs have full of experience within 3 – 5 years Staffs with more than 3-year-seniority will have good behavior, warm welcome… As a result, BIDV - Transaction Center 1 are always equipped staffs with knowledge, meeting the high demands of customers Moreover, 16% of staffs having seniority are >5 years, 1 – 3 years account for 12%, <1year account 3%

For telling position, the number of staffs in charge of this position is quite high, which shall have considerable influences on the branch’s business results Moreover, tellers always communicate with customers so this is department which has significant influence on image and service quality of the bank

During nearby 25 years of establishment and development, currently BIDV has been striving to affirm its position, image, brand as well as reputation in a competitively financial and monetary markets as today Within the international and integral era, like other business organizations all over the world, all employees working for BIDV - Transaction Center 1 are always considered one of the most important and valuable assets and one essential factor towards the sustainable development of the bank, which can be believed to be the main reason why the bank made a decision to establish Department of Human Resources right from the beginning of the bank with the main aim of training and motivating its well-qualified employees to work hard, wholeheartedly and effectively thanks to Human Resources policies In fact, these HR policies play an important role in carrying out the bank’s core objectives and important business strategies, which makes a great contribution to the stable development of BIDV

It is easily seen that when figuring out the importance of employees, BIDV - Transaction Center 1 has been paying more attention to develop them through creating and providing them with a wide range of training chances in order that it is employees who become “brand ambassadors” for the bank towards its customers In 2018, the bank implemented an activity called “Human Resource Development” via implementing well-structured and practical programs and plans in order to train, improve and unlock the potential of its existing employees Within recent years, BIDV - Transaction Center 1 has been making efforts to build up an ideal and professional working environment for all employees with the purpose of motivating them to dedicate their ability and talents towards ensuring the stable growth of the bank More importantly, the bank also provides its employees with many human resources policies to help its employees have chances to express their new ideas, opinions as well as ensure their rights

In addition, the bank always cares about the qualification and ability of its employees In order to possess a large number of well-qualified employees, BIDV - Transaction Center 1 needs to try its best to recruit candidates who meet a variety of requirements, have qualifications, abilities, experience as well as attitude in relation to each position After recruiting activities, leaders of BIDV - Transaction Center 1 will pay more attention to coming up with many training activities to improve those candidates to become professional staff

Investment in human resource development makes a great contribution to put BIDV - Transaction Center 1 at the cutting edge of the finance and banking industry Therefore, the bank is proud to be the first Vietnamese bank to create and develop as

system of training programs and career roadmaps for its staff

2.2 Job description and human policies applied for tellers at BIDV - Transaction Center 1

* Job description of Tellers at BIDV - Transaction Center 1

To become an official staff as a bank teller at BIDV - Transaction Center 1, candidates who take part in recruiting activities need to figure out the typical tasks, responsibilities and requirements for a bank teller job In general, bank tellers are employees who are in charge of providing several customer services in relation to efficient and accurate transaction processing

* Key duties and responsibilities

 Receive retail and commercial deposits, loan payments, process checking and saving account withdrawals

 Identify customers, validate and cash checks

 Maintain an adequate cash drawer at all times, including buying and selling currency

 Balance cash drawer in accordance with the bank procedures and regulations

 Process credit card cash advances

 Assist in ordering, receiving, verifying and distributing cash

 Answer customer inquiries in relation to checking and savings accounts and provide customers with the proper service area for issues that cannot be dealt with at the teller line