Poor training quality in vietinbank – x branch’s enterprise customer department

UNIVERSITY OF ECONOMICS HO CHI MINH CITYInternational School of Business ---VƯƠNG THỊ HƯỜNG POOR TRAINING QUALITY IN VIETINBANK – X BRANCH’S ENTERPRISE CUSTOMER DEPARTMENT MASTER OF B

UNIVERSITY OF ECONOMICS HO CHI MINH CITY

International School of Business

-VƯƠNG THỊ HƯỜNG

POOR TRAINING QUALITY IN VIETINBANK – X BRANCH’S

ENTERPRISE CUSTOMER

DEPARTMENT

MASTER OF BUSINESS ADMINISTRATION

UNIVERSITY OF ECONOMICS HO CHI MINH CITY

International School of Business

-VƯƠNG THỊ HƯỜNG

POOR TRAINING QUALITY IN VIETINBANK – X BRANCH’S

ENTERPRISE CUSTOMER

DEPARTMENT

MASTER OF BUSINESS ADMINISTRATION

SUPERVISOR: ĐOÀN ANH TUẤN

Ho Chi Minh City – Year 2019

Table of Contents

Executive summary 7

CHAPTER 1: COMPANY INTRODUCTION 8

1.1 General information about Vietinbank – X branch 8

1.2 Enterprise customer department 9

CHAPTER 2: SYMPTOMS 11

2.1 High turnover rate 11

2.2 Low sale 12

2.2.1 Deposit mobilizing activity 12

2.2.2 Credit activity 14

2.3 High non-performing loans ratio 16

2.4 High provisioning expense 19

2.5 Low profit 23

CHAPTER 3: PROBLEM IDENTIFICATION 27

3.1 Potential problems 27

3.1.1 High workload 27

3.1.2 Incompatible compensation policy 30

3.1.3 Poor training courses 32

3.2 Validating problems: 35

3.2.1 Managers’ perspectives 35

3.2.2 Employees’ perspectives 37

3.3 The importance of main problem 37

CHAPTER 4: CAUSE VALIDATION 39

4.1 Potential causes 39

4.1.1 Unclear Training objectives 41

4.1.2 Unprofessional trainers 41

4.1.3 Poor methods 42

4.1.4 Unpractical training contents 43

4.1.5 Inefficient training time management 44

4.1.6 Inappropriate frequency of training 44

4.1.7 Insufficient training amenities 44

4.1.8 Lack of training evaluation 45

4.2 Validating causes 45

4.2.1 Unclear Training objectives 45

4.2.2 Unprofessional trainers 46

4.2.3 Lack of training evaluation 46

CHAPTER 5: ALTERNATIVE SOLUTION 48

5.1 Solutions for setting clear training objectives 50

5.2 Solutions for developing professional trainers 55

5.3 Solutions for improving the quality of training evaluation 59

CHAPTER 6: ACTION PLAN 64

Conclusion 69

Supporting Information 70

References 82

Appendix 1 86

Appendix 2 88

Appendix 3 90

List of Tables Table 1: Concepts about Kinds of Credit Group 18

Table 2: Non – Performing Loans of X Branch and Enterprise Customer Department

in 2018 18

Table 3: Ratio of Specific Provision 20

Table 4: The Profit of X Branch’s Enterprise Customer Department, X Branch and

HCM Region’s Enterprise Customer Department 24

Table 5: A Summary of Some Researchers' Comments on the Role of Key Factors in

a Training Course 49

Table 6: Estimated Costs for Solutions to Improve the Quality of Trainers 59

Table 7: Estimated Costs for Solutions to Improving the Quality of Training

Evaluation 61

Table 8: Estimated Costs of Kaufman's Training Evaluation Method 62

Table 8: Action Plan 68

List of Figures Figure 1: Human Resource Structure According to Work Experience of Enterprise

Customer Department in 2018 11

Figure 2: Turnover Rate from 2016-2018 in X Branch’s Enterprise Department 12

Figure 3: Total Deposits of X Branch and Enterprise Customer Department in 2018 13

Figure 4: The Rate of Implementing Deposit Mobilization Plan in 2018 of X Branch and Enterprise Customer Department 14

Figure 5: The Average Productivity of Deposit Mobilizing Implementation of the Enterprise Customer department in X Branch and HCM City Region 15

Figure 6: Credit Balance of the Enterprise Customer Department in 2018 15

Figure 7: Productivity of Credit Activity in 2018 16

Figure 8: The NPL ratio of X Branch’s Enterprise Customer Department, X Branch and HCM Region’s Enterprise Customer Department 19

Figure 9: Loan Debt Ratio without Collateral of X Branch, the Enterprise Customer Department and HCM Region 21

Figure 10: Provision Expense of X Branch in 2018 22

Figure 11: Proportion of Provision Expense of X Branch and HCM Region in 2018 22

Figure 12: Total Profit after Deducting Provisions of X Branch and HCMC Region in 2018 23

Figure 13: The Rate of Implementing Profit Plan in 2018 25

Figure 14: ROA of X Branch and HCM Region in 2018 26

Figure 15: The Average Income of Some Commercial Banks in 2018 31

List of Diagrams

Diagram 1: Organization of Operation of X Branch 9

Diagram 2: A Model of Job Stress 29

Diagram 3: The Initial Cause – Effect Map 35

Diagram 4: Updated Cause – Effect map of Enterprise Customer Department 41

Diagram 5: Final Cause – Effect Map of the customer Department 47

Diagram 6: The Analysis Process of Employees’ Performance 52

Executive Summary

Under strong competitive pressure among commercial banks today, theworking environment at banks has become more stressful than ever and more than allother industries Banks are constantly modernizing by applying many moderntechnologies to the development of new products, increasing utility for consumers.However, the quality of the workforce remains a key to the success of commercialbanks They are the bridge connecting banks and customers With that great role, theworkforce in Vietinbank – X branch’s enterprise customer department has constantlymade efforts to improve the professional level to meet the highest requirements forwork That the volume of daily processing work is higher, the pressure of work ishigher, but the proportion of inadequate income makes the rate of quitting work at thisdepartment increasing The new employees are lack of real experiences, skills and notmet the work requirements The above factors have partly caused negative impacts onthe current business results of X branch

Realistically, the biggest problem of Vietinbank - X branch is facing is the poorquality of training This makes the new workforce in the enterprise customerdepartment fail to meet the work requirements promptly The quality of customerappraisal in this department decreases and makes bad debt increase (1) In addition,the lack of skills in sales has also resulted in a significant reduction in credit andcapital sales Poor working capacity has partly increased the work pressure foremployees in this department, increasing turnover rate at the branch

With certain limitations, this study desires to offer effective solutions topromote the quality of training at X branch in particular and at Vietinbank system ingeneral From there, X branch’s business activity will become more and moredeveloped Its business cost will decrease and its profit will increase The welfarepolicies for its employees will also be improved

CHAPTER 1: COMPANY INTRODUCTION 1.1 General information about Vietinbank – X branch

Vietnam Joint Stock Commercial Bank for Industry and Trade (Vietinbank) - Xbranch was established in the early days of Vietinbank in operation (26th March,1988) The head office of the branch is located at district 8, Ho Chi Minh City and hastransaction offices scattered in districts 8,10,11 The total number of currentemployees of the branch consists of 116 employees and has 15 departments

Moreover, the branch provides all the products that Vietinbank has with thediversity and outstanding competitiveness compared to other banks in the same area:Savings deposits, deposits flexible accumulation, lending to large enterprises, smalland medium enterprises, small households, super-large enterprises, card products, etc.The branch does not contribute greatly to the development of Vietinbank, but alsohelp to building a local economy to develop and actively support individuals andorganizations in the area with conditions to build families and develop businessactivities

Since its establishment, the branch always strives to complete all tasks assigned

by Vietinbank excellently Particularly in 2018, due to the increase in bad debt,business efficiency brought quite limited and only completed the tasks

Over 30 years of operation, the total deposits at the end of the period at 31stDecember, 2018 is VND 5,907 billion, accounting for 2% of the total deposit in the

Ho Chi Minh city area and the total outstanding loans are VND 3,598 billion,accounting for 1% of the region's total outstanding loans with the total profit achievedafter setting up the risk provision to the end of February, 2019 is VND 16,839 million

Vice presidents

-Rach Ong -Lakai

-Binh Dang -Minh Phung

Diagram 1: Organization of Operation of X branch.

1.2 Enterprise Customer Department

The enterprise customer department is one of the key departments of X branch

in generating revenue and profit The department currently has 17 employeesincluding 2 management leaders, 13 officers in charge of small and mediumenterprises, 1 officer in charge of large enterprises and 1 trade finance officer The

main activity of the department is lending and raising deposit from corporatecustomers, cross-selling other products Total outstanding loans of this department at

31st December, 2018 were VND 2,509 billion and the total deposit was VND 1,059billion

CHAPTER 2: SYMPTOMS 2.1 High turnover rate

Based on the working time to classify, the workforce in the department isdivided into 3 different types Firstly, people with working experience from 3 years

or more, including 6 people, accounting for 35.3% of the total number ofemployees in this department Secondly, people with experience from 1 to 3 years,including 4 people, accounting for 23.5% of the total workforce The rest areemployees with less than one - year experience This is the segment that accountsfor the highest proportion of this department with 7 people, accounting for 41.2%

of the employees in this department.

Figure 1: Human Resource Structure According to Work

Experience of Enterprise Customer Department in 2018

The chart is below the description of the quitting work rate in the corporatecustomer department from year 2016 to 2018 Accordingly, it shows that the rate

of this department was increasing: it was 16,7% in year 2016, year 2017 was21.4% And in 2018, the ratio of this department (35,3%) was higher than otherdepartments in X branch

Figure 2: Turnover Rate from 2016-2018 in X Branch’s Enterprise Department 2.2 Low sale

Sales of loans and deposits are the two main criteria that the enterprisecustomer department need to implement However, the performance in 2018 ofthis department is quite low compared to the yearly plan and Ho Chi Minh Cityarea

2.2.1 Deposit mobilization activity

Total depositsof the enterprise customer department at 31/21/2018 was VND1,059 billion, accounting for 17% of X branch’s total deposits and only reached56.1% of year 2018’s plan The implementation ratio was quite low compared tothe implementation rate of the retail department (VND 4,204 billion, reaching 97%

of year plan) and X branch's implementation rate (88.7%)

Unit: VND billion.

Figure 3: Total Deposits of X Branch and

Enterprise Customer Department in 2018

Figure 4: The Rate of Implementing Deposit Mobilization Plan in 2018 of X Branch

and Enterprise Customer DepartmentCompared to the average productivity of deposit implementation, the enterprisecustomer department at X branch only reached VND 61 billion/employee Meanwhile,this index of the corporate customer department at HCM region was 149 billion VND/employee

Unit: VND billion/employee

Figure 5: The Average Productivity of Deposit Mobilizing Implementation

of The Enterprise Customer department in X Branch and HCM City Region

2.2.2 Credit activity

At the end of 2018, the department achieved VND 2.509 billion, accounting for64.7% of the outstanding loan of X branch and achieving 98.8% of business plan.Compared to the retail department (104.5%) and X branches (100.8%), the rate ofenterprise customer department was still lower In addition, the implementation ofthe credit balance of this department had also tended to decrease: VND 2,586billion in March, 2018 and VND 2,509 billion in December, 2018

1

Figure 6: Credit Balance of the Enterprise Customer Department in 2018

Compared to the performance of the average credit balance, the enterprisecustomer department only reached 140 billion VND/person, quite low compared tothe average performance of the business customers in Ho Chi Minh region (287billion VND/person)

Figure 7: Productivity of Credit Activity in 2018 2.3 High non-performing loans ratio.

As Ali (2) said, credit risk is the most basic and important risk which banksmust be faced, because income from credit activities is one of the main sources ofcommercial banks In order to assess and analyze the quality of loans, the statebank issued circular No 02/2013/TT-NHNN on 21st February, 2013 withaccompanying amendments On the basis of the circulars issued by the state bank,Vietinbank has classified debts according to the following groups

Group 1 - Group 2 - Group 3 - Group 4 - Group 5

Current debts and are assessed

1 as fully recoverable both X

principal and interest on time.

2 Overdue debts

Under 10 days and assessed

as being able to fully recover

a overdue principal and interest X

and fully recover the

remaining principal and

interest on time.

3 Debts restructured repayment

term

the first time

time

Debts which are restructured

repayment term for the first

than 90 days according to the

first restructured repayment

term

Debts restructured the

time

Debts which are restructured

repayment term for the first

period of 90 days or more

according to the first

restructured repayment term

Debts which are restructured

repayment term for the second

the second restructured

repayment term

Debts are restructured

or more (even if they are not

overdue or overdue)

Debts are exempted or

reduced because customers

interest according to credit

contracts

Debts in one of the following

cases have not been recovered

5 during the "Y" day from the Y<30 30 =<Y=<60 Y>60 date of issuance of the

Debt at the request of the

State Bank (based on the

Past the withdrawal time,

conclusions, 60 days have not

been recovered

Past the recovery time limit

conclusions over 60 days, it

has not been recovered yet

Debts of customers are credit

institutions announced by the

special control status, foreign

bank branches are blocked

with capital and assets.

Table 1: Concepts about Kinds of Credit Group

From January to June of 2018, X branch’s NPL ratio reached about 0.1% to0.2%, that was much lower than the average ratio of Ho Chi Minh city region

(from 1.5 % - 1.7%) However, at the end of July, 2018, the NPL ratio of X branch

suddenly increased from 0.2% in June, 2018 to 4.4%, far exceeding the average

index of the region (1,7%) This ratio remained stable or only slightly changes

from 3.8% to 4.4% and is quite high compared to the general situation in the

region The peak of the sudden increase in this index was December, 2018 with

11.9%, far exceeding the region's average NPL ratio (2.5%) At that time, the total

NPL of X branch was VND 429,003 million, an increase of VND 278,361 million

(an increase of 184.8%) compared to November, 2018 This makes the provision

expenses of X branch increase and reduce the year-end profit

Unit: VND million

Non-performing 3.855 3.855 4.271 3.855 4.442 7.769 170.581 170.581 149.594 150.642 150.642 429.003 Loans

All non – performing loans of X Branch are the enterprise customer department’s loans In January 2018, this ratio of the enterprise customer department

was 0.2% and remained slight fluctuations until June 2018 In July 2018, this indexincreased suddenly to 6.9% and then fluctuated slightly until November 2018.However, this ratio increased sharply to 18.1% at 31th December, 2018

Figure 8: The NPL ratio of X Branch and HCM region’s Enterprise Customer

Department, X Branch’s and HCM Region’s Enterprise Customer Department

2.4 High provisioning expense

The specific provision amount for each customer is calculated according to thefollowing formula:

In which:

 R: The total specific provision amount must be deducted from each customer

 : The total specific reserve amount of each customer from the 1st

loan to n

 : The specific provision amount to be deducted from each customer for theprincipal balance of loan i Ri is determined by the formula:

Ri = (Ai – Ci) x r

In which:

 Ai: Balance of principal loan i

 Ci: Deductible value of security assets, financial leasing assets

(hereinafter referred to as security assets) of loan i

 r: Specific rate of provisioning

The specific provision rate for each credit group is as follows:

Table 3: Ratio of Specific Provision

Although, the ratio of X branch’s non-secured loans decreased gradually

in the last months of the year, the cost of provisioning and provision expenses/total debt ratio increased gradually for these months

Figure 9: Loan Debt Ratio without Collateral of X Branch, the Enterprise

Customer Department and HCM Region

Specifically, the provision expense of X branch increased from January toDecember with many sudden changes At the end of January, 2018, the cost ofprovisioning of the branch was VND 700 million (accounting for about 0.02% oftotal outstanding loans) But in February, 2018, provision expenses increased toVND 3,734 million compared to the end of January, up VND 3,034 million,equivalent to 433.3% In the Feb, March and April, the fluctuations are notsignificant In May, it increased sharply compared to April, reaching VND 7,375million, up VND 2,800 million compared to April, corresponding to an increase of61.2% Cost of provisioning fluctuates slightly in June and July ThroughSeptember, there was a big fluctuation when it reached VND 18,218 million Therisk provisioning expense, increased VND 10,504 million compared to theprevious month, equivalent to an increase of 136.2% In October, it increased by34.4% compared to September The cost of provision in November doubled thiscost in October, reaching VND 52,888 million And at the end of December, thiscost increased by VND 20,897 compared to November and reached VND 73,785million

Figure 10: Provision Expense of X Branch in 2018

About the ratio of provision expenses of X branch to the total outstandingloans, this ratio has increased over the months and by November and December, thisratio was higher than that of HCMC region

Figure 11: Proportion of Provision Expense of X Branch and

HCM Region in 2018

2.5 Low profit

Unit: VND billion

Figure 12: Total Profit after Deducting Provisions of X Branch and HCMC Region in

2018Post-provision profit of X branch in the last months of the year 2018 tended todecrease and lower than the regional average From January to October, the profits ofthe branch increased However, in November, the profit began to decrease with adecrease of VND 16,859 million, corresponding to a decrease of 14.1% compared tothe end of October In December, the profit continued to decrease by VND 13,633million, equivalent to a decrease of 13, 3% compared to November and reached VND89,075 million

Unit: VND billion.

Total profit after

Table 4: The Profit of X Branch’s Enterprise Customer Department, X Branch and

HCM Region’s Enterprise Customer Department

Compared with Ho Chi Minh city region’s performance result, X branchperformed higher from January to August about the profit target after provisioning Inparticular, the performance result in January was 5 times more effective than theaverage implementation of HCM region But since September, its profit rate waslower than the average of the region In December, the profit ratio of the branchcompared to the average in Ho Chi Minh City area was only 56.9% This affects theefficiency of X branch’s deposit and loan scale.

Figure 13: The Rate of Implementing Profit Plan in 2018

The results of implementing the profit plan of the enterprise customerdepartment and branch X all turned down sharply from October 2018

ROA = Total profit/ Total amount of outstanding loans and capital

Figure 14: ROA of X Branch and HCM Region in 2018

The ROA of the branch increased gradually from January (0.4%) to October(1.2%) 2018 But ROA of November and December started to decline, only 1.0% and0.9% respectively Compared to the region's average, X branch’s ROA is higher thanHCM region from January to the end of November, but only 0.9% lower than HCMregion's performance at the end of November

CHAPTER 3: PROBLLEM IDENTIFICATION 3.1 Potential problems

The main research method is analyzing the financial statements, personnelreports, etc of X branch in combination with in-depth interviews and using theoreticalbasis of hypothesis We will conduct analysis and make conclusions about the mainproblems leading to the current situation of X branch’s enterprise customerdepartment at The below problems are the potential problems that the enterprisecustomer department can be facing:

3.1.1 High workload:

With the detailed information analyzed above, it shows that the turnover rate inthe enterprise customer department tends to increase over the years The number ofstaff in this department in 2018 was 17 persons and can meet the department’snecessary work requirements Even, this number exceeds 5 people compared to themaximum number of employees allowed by Vietinbank However, the existingpersonnel structure created many difficulties and pressure This is specifically shown

as follows:

According to Ms Tu - the deputy director who directly manages the enterprisecustomer department, the current number of employees is 17 people However, thedepartment has up to 8 persons, including new employees and employees with lessthan one - year experience This group accounts about 50% of the total number ofemployees With the characteristics of enterprise credit, employees must be deeplyknowledgeable about corporate finance, industry and market characteristics, as well

as good at communication skills, negotiation skills because they often have to do workwith the chief accountant, the board of directors of economic organizations Besides,the nature of rewarding business records is quite complicated The time for an officerwho can manage the customer profile well, should take at least 1 - 2 years During thattime, employees are only assigned a few customers to work and study Therefore, theworkload is cornered into experienced employees They have to manage manycustomers and have the task of guiding new employees Work pressure becomes even

bigger In addition, Ms Hoai, the head of the corporate customer division, also sharedthat employees, besides having to deal with the problems required by existingbusinesses, must make efforts to develop new customers, outstanding loans, additionalcapital and cross-selling of new products The amount of work to be handled and theassigned norms have caused old employees to be overloaded with work.

Job stress is seen as a fairly familiar concept for everyone and also a greatconcern of many businesses Because, it directly affects the performance results thatbusinesses There are many different ways to understand and define this term Jobstress, according to Wilmar and Maria, is seen as a health problem for people at work,

it speaks to the employee's physiological state of the responsibilities and tasks related

to work, become worse heavy, beyond the ability of the body to endure and make thehealth and spirit of the employee worse The authors as Muhammad, Iftikhar, Gohar,

Abbas, Umar, Khan and Zaman have also listed 10 causes of work stress: "Overload,

Ambiguity role, Role conflict, Responsibility for people, Participation, Financial insecurity, Lack of feedback, Keeping up with changing technology, Being in an innovative role, career growth" (3) Moreover, authors as Donald E and Thomas Li -

Ping (4) also considered job stress as "a first-time outcome of the organization andjob" These two authors also gave the following stress-specific job modeling model:

Stressor First – level outcomeSecond – level outcome

Work it self

Organizational

characteristics

Organizational Commitment

Job Satisfaction Role in Organization

JOB STRESS

Avoidance Behavior Relationships

Job Performance Career Development

External

Commitments and

Responsibilities

Diagram 2: A Model of Job Stress (4)

Therefore, the relationship between job stress and working environment as well

as business performance of enterprises is closely linked Moderate job stress is acondition for employees to be able to improve their skills for reaching a higherposition at work However, if the pressure is too heavy, it will bring many negativeimpacts in businesses and the workers themselves Work pressure will gradually causeworkers to lose the balance between personal and work life They will easily lose theirharmony with their families, as well as not have time to take care of their families.This will lead to family stress Family stress will continue to create repercussions andincrease job stress (5) In the study of Donald E and Thomas Li – Ping also showedthat job stress will create dissatisfaction with the job Moreover, in Taylor & FrancisGroup's research also shows that job stress is one of the causes leading to the trend ofjob breakdown (6) The problem of high employee retrenchment is a great concern ofenterprises and a problem that businesses need to solve Because, it greatly affects the

business and development plan as well as the profit plan of the economicorganizations.

Another problem that reflects the high work pressure in the corporate customerdepartment is the overtime The branch's schedule is from 8 am to 5 pm, a 5-day workweek, from Monday to Friday The total duration for a work week is 48 hours But inreality, the department’s employees have to work even 60 to 64 hours a week Evenwhen there are internal inspection teams or audit teams, the inspection team of theState Bank must work both full time of Saturday and Sunday The overtime and highwork pressure make employees reconsider their long-term commitment to X branch.Because, in addition to work, they have many other concerns, they need a break torecreate their health, time to take care their families and improve their skillsAccording to a number of the enterprise customer department’s employees, such as

Ms Tu and Ms Hoai, most of the day they have to associate with work Even whenthey come back home, they also have to listen to the phone and deal with some of thecustomers' problems Sometimes, they find it difficult to lack the sympathy of theirfamily members because of the frequent overtime work The time for taking care theirfamily is quite limited In short, the working environment and conditions in this

department are quite stressful and affect the balance of employees’ lives “I even

haven’t time for personal interests like watching movies, traveling or learning some foreign language.”, Mr Quyet said.

3.1.2 Incompatible compensation policy:

Clearly, compensation policy is the most effective persuasion how enterpriseevaluate the value of employees Many researchers have shown that manydisadvantages will occur with a non-competitive compensation policy An inequity inpolicy can be also easy to create conflicts between people with different productivitylevels This can quickly reduce the employees’ performance quickly Therefore,building a policy must ensure fairness and competitiveness It will contribute andcreate corporate culture in production and business activities

Despite the huge pressure on daily workload, Vietinbank's compensation andwelfare regime is not really competitive with some other banks in the HCM region

According to the ranking of average income among banks in 2018, Vietinbank withthe average income of 20-21 million VND/person/month is only ranked the sixthposition This income level is lower than some banks that has smaller scale thanVietinbank such as: MB Bank, Techcombank, VIB,

Figure 15: The Average Income of Some Commercial Banks in 2018

Source: https://www.24h.com.vn, https://www.msn.comThe psychology and habits of employees are always trying to compare thesalary of other banks and companies When they know that their salaries are lowerwages than their colleagues’salaries at other banks, some of them will become lessactive with the job and reduce the efficiency of work The comparison of salarylevels with other banks causes employees to tend to jump (7)

Besides the low salary, the annual welfare regime for X branch’s employees isalso not good Mr Duong said that employees can only travel once with the cost ofless than 5 million VND/person/year This fee is for employees of the branch onlyand if any employee cannot arrange to travel, they will lose their benefits If theemployees’ family members want to participate, they must pay the full cost.Perhaps, X branch's board of directors has not yet realized the great benefits thatthe welfare regime can bring X branch’s events or parties are good opportunities

for improving the relationship between employees From there, they will be easy toempathize and create favorable conditions for their family members to focus ontheir works This is also an opportunity for the branch's leaders to betterunderstand their employees’ lives outside of work Since then, the board ofdirectors has the opportunity to share more and strengthen the relationship betweenemployees and branch’s leaders (8) Even through common activities with thesepotential customers, leaders as well as other employees have the opportunity tobuild products with superior features and highly competitive, rich in practicality.

3.1.3 Poor training courses

The bank is a highly marketable environment and a place where moderninformation technologies are applied with the desire to achieve the fastest and mostsatisfying customer service speed Products and services of banks that want toconvince customers to use must bring outstanding superiority: competitive cost,fast, utility, (9) Therefore, commercial banks’ employees need to have highprofessional skills, sales skills, market knowledge, In particular, the enterprisecustomer department requires higher quality employees Persons who workregularly with customer staff are leaders of economic organizations They areexperienced and knowledgeable persons as well as have high requirements forservice quality Therefore, enterprise customer staffs are not only good atspecialized knowledge but also have to be sensitive in assessing the situation ofbusiness operations, understanding the practicality and high working capacity.Employees of the enterprise customer department must handle all the businessproblems required in the fastest, most effective time Consulting skills andnegotiating lending and deposit interest rates must be highly convincing However,according to Ms Thu – the director of X branch and Ms Hoai - the deputy head ofenterprise customer department, the quality of Vietinbank training courses is stilllimited Staff after participating in training courses can’t manage customers, thelevel of appraisal is still inadequate, sales skills are not effective Most of the newstaff after participating in the training courses still have to receive additionaltraining at the branch This, both making older employees increase work pressureand training efficiency depends very much on the efforts of each new employee, as

3

well as their ability to persuade "internal teachers" to divide their experience andprofessional guidance.

After analyzing information from interviewees, the initial cause – effect map isdrawn as blow:

workload

Job stress

Over

working

hours

Unfair between contributions and

Unbalance

between life and job

Lack of product knowledge

of sale

Lack of sale skills

Lack of experience in evaluating customer

Lack of experience in managing customer

Low

motivation

Lack of sale efforts

Increasing the time to handle bad debts

High turnover rate

Low sales

Low Profit

High

provisioning

expense

High Performing Loans in Enterprise Department

Non-Diagram 3: The Initial Cause – Effect Map 3.2 Validating problems:

With negative effects due to high pressure in work, such as reducing health,working spirit, it also is the cause of the unbalance in the employees’ lives (10) Theycannot both carry out a large amount of banking work and take good care of theirchildren and their families Job stress, low salary and bad welfare policy createdpsychological dissatisfaction with their jobs and reduced the motivation to carry outthe assigned task Thereby, these things made the efficiency of work downsignificantly (11) The end result of these problems existed for a long time thatunresolved by organizations are the tendency to quit work is high The rate ofretrenchment at high pressure working institutions is increasing and it is also aproblem that commercial banks are spending a lot of money and effort to solve (12)

Moreover, the poor quality of training also has great consequences forcompanies such as poor working performance, increased stress in the workingenvironment, reducing cooperation among employees, (13) Employees with poorworking skills are easy to be stressed from their jobs, customers, and colleagues (14).They will even increase the pressure on themselves when they do not fully understandtheir jobs

With these above issues, which the main problem that businesses need to knowand find a solution to solve thoroughly? Through the content of interviews with staffand leaders at X branch, some results are drawn as follows:

3.2.1 Managers’ perspectives

According to Ms Thu - X branch’s director, Vietinbank training system ismainly a combination of two training methods: on - the - job training and off – the –job Off – the – job training is often carried out by the head office with the centralpurpose of equipping general and basic knowledge about work environment, services,products but practical knowledge is quite limited In contrast, on-the-job training isbeing implemented mainly at branches This method plays a huge role in helpingemployees accumulate practical knowledge from colleagues and customers and have

the opportunity to develop the skills and knowledge they have learned However, atpresent, this training at X branch has not been implemented satisfactorily, lack ofspecific training plan, effectiveness and inadequate investment The training of newemployees is often assigned to former officials, managers who do not directlyparticipate in guiding and evaluating training results In addition, because the dailyworkload of the former employees is quite large, it is difficult for them to take thetime to guide new employees This makes the training efficiency X branch quite lowand greatly affects the quality of personnel She also shared some experiences:

“During 23 years working in the banking field, I witnessed many different stories There are young people who started their jobs with many tears because of pressure from customers However, there are also the same age employees whose smiles you can always see and they quickly achieve efficiency in their jobs They can convince customers to send several tens of billions every month easily So, what makes the difference between the two cases? The answer is that professional skills and knowledge are the key to success in the field of corporate lending and many other businesses.”

Ms Hoai - Head of the enterprise customer department also said that the mostimportant task is to improve the quality of human resource training Because,employees are lack or have little experience accounted for 41.2% of the total staff.Most employees have good knowledge base about finance and high education level.However, due to lack of experience, they become lack of confidence and skills insolving work The nature of the work in the room requires deep understanding andpractical experience Due to the lack of these things, employees often cannotunderstand and assess the situation of customers in a comprehensive way as well aspredicting the business ability of customers correctly, reducing risks This will lead to

an increase NPL

In addition, Mr Duong - Deputy head of the corporate customer departmentshared that new officers are often lack communication skills with customers,ineffective counseling skills, so the selling efficiency decreases Besides, the loanmanagement skills of the employees in the department are still limited Therefore,

they do not detect in time signs that customers are facing financial difficulties,management, etc Increasing bad loans means employees have to spend a lot of time

on debt handling, limited time for sales Work pressure is also increasing

3.2.2 Employees’ perspectives

Mr Tung - a big enterprise customer relations officer and Mr Quyet - a smalland medium enterprise customer relations officer, said that training new employeesmade them more difficult because the work pressure was too high Sometimes, they donot have time to share their experience This will make their relationship with newcolleagues become worse, if these persons do not understand their work pressure Thequality of training is not good, it will make new employees feel more embarrassedwhen the content is not suitable for practical experiences They become less confidentand deal with less effective work Ms Uyen - a small and medium customer relationsofficer, the new employee also said that she was afraid to ask other employees whilethey were working Some new employees even worked only for a few months andthen leave their jobs They move to another field because they can’t stand the workpressure for risks in giving loans

Mr Nam also shared his interesting story: “In the first six months, I went to my

office every day and thought that if I should continue working in the banking field Because I do not have much experience and skills, there are always many different fears: Be afraid of my customers, m managers, risks, etc However, when I had many experiences and understood the nature of credit, I felt more confident Now,

I can easily negotiate with customers and build a pretty good relationship with them and my colleagues Training and self-training have partly improved my working capacity.”

In conclusion, with the results obtained from interviews and other contents, thepoor quality of human resource training is a central issue that X branch and thebusiness customer department needs to solve

3.3 The importance of main problem

Labor quality is an key factor in determining the success of businesses (15).

Ms Tu - Deputy director in charge of enterprise customer department said that inorder to increase sales efficiency, employees must have deep knowledge of productsand operations to give good advice to customers Moreover, the assessment ofcorporate customers is quite complicated because it involves a lot of knowledge indifferent fields and different industries Employees must be equipped with in-depthknowledge of financial appraisal, evaluation plans and projects of customers Besides,skills such as communication skills, customer management skills, writing skills, etc.This not only helps improve sales efficiency but also reduces bad debt

Mr Duong – the deputy head of the enterprise customer department saidthat, improving the quality of staff training will help to reduce the work pressurefor managers and employees, enhancing cooperation among employees

In general, the significance of improving the quality of training inexperiencedstaff at the enterprise customer department is huge It has reduced work stress, workpressure, increased sales efficiency, reduced bad loans and tightened relationshipsamong employees