Luận Văn Work Overload At Vietinbank X Branch.doc

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UNIVERSITY OF ECONOMICS HO CHI MINH CITY
International School of Business
------------------------------------
Vu Thi Thuy
WORK OVERLOAD
AT VIETINBANK – X BRANCH
MASTER OF BUSINESS ADMINISTRATION
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UNIVERSITY OF ECONOMICS HO CHI MINH CITY
International School of Business
------------------------------------
Vu Thi Thuy
WORK OVERLOAD
AT VIETINBANK – X BRANCH
MASTER OF BUSINESS ADMINISTRATION
SUPERVISOR: DR. PHAN THI MINH THU
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Table of Contents
Executive summary ......................................................................................................... 5
CHAPTER 1: COMPANY INTRODUCTION .............................................................. 7
1.1. General Information about Retail Banking ........................................................... 7
1.2 Company background ............................................................................................ 8
1.3. The Symptoms ...................................................................................................... 9
1.3.1 The first symptom: High turnover rate of employees ..................................... 9
1.3.2 The second symptom: Low job satisfaction .................................................. 11
1.3.3The third symptom: Low key performance indicators .................................. 12
1.3.4 The fourth symptom: Low job performance ................................................. 14
CHAPTER 2: PROBLEM IDENTIFICATION ............................................................ 16
2.1 Problem mess ....................................................................................................... 16
2.1.1 Over working hours....................................................................................... 17
2.1.2 Job stress ....................................................................................................... 18
2.1.3 Unrealistic targets.......................................................................................... 19
2.1.4 Not enough Coaching & feedback ................................................................ 20
2.1.5 Inconsistent of management style ................................................................. 21
2.1.6 Unfair between compensation and contribution of employees ..................... 21
2.1.7 Lack of vacation and family benefit ............................................................. 22
2.2 Tentative problems .............................................................................................. 24
2.2.1 The first tentative problems: Work overload ................................................ 24
2.2.2The second tentative problems: Ineffective leadership ................................. 25
2.2.3The third tentative problems: Incompatible compensation policy ................ 25
2.2.4 New findings from literatures ....................................................................... 26
2.3 ............................................................................................................................... 29
The central problem ................................................................................................... 29
2.4 Problem definition ............................................................................................... 29
2.5Problem existence ................................................................................................ 30
2.6 Problem importance ............................................................................................. 31
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CHAPTER 3: ALTERNATIVES ANALYSIS AND POSSIBLE SOLUTIONS ....... 34
3.1 Potential causes of the problem .......................................................................... 34
3.2. Verify causes of the real problem...................................................................... 38
3.3. Root cause.......................................................................................................... 42
3.4. Tentative solutions............................................................................................. 42
3.4.1 Set solution................................................................................................... 46
3.4.2 Plan design: .................................................................................................. 49
Conclusion.................................................................................................................... 57
References .................................................................................................................... 58
APPENDIX .................................................................................................................. 62
Appendix 1: Interview guide .................................................................................... 62
Appendix 2: The result of interview......................................................................... 70
Appendix 3: Transcript ............................................................................................. 78
Appendix 4: The example of a set KPI at Vietinbank – X Branch........................... 91
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Executive summary
Today, the banking profession is considered a dream job with many people because
the high salary and reward up to several tens of millions per month. However, in order
to achieve that high pay, the bankers must suffer a lot of pressure and hardships. At the
retail division of VietinBank - X Branch, the average income of non-title staff ranges
from 10 to 20 million VND, maybe even higher if the employees achieved good sales.
However, the rate of employee quit the job at X Branch is always high at
approximately 50%, the number of new recruiting staff is not enough to offset the
number of employees resign. The retail division is always has the highest staff
turnover rate compared to other departments in VietinBank - X Branch. The unstable
personnel situation caused significant negative impacts on the business results of X
Branch, the revenue and profit decrease continuously in recent years.
One of the main unsettled problems at VietinBank - X Branch is the staff being work
overload, pressure and heavy stress. The main reasons leading to this problem is the
quantity and quality of personnel not meeting the demand of work, the staff is not
trained leading to low productivity, lack of confidence and disappointed. In addition,
the inappropriate workflow with many unnecessary steps is also one of the causes to
increase workload for employees.
To improve the work overload situation, this paper proposes two solutions related to
the focus on training human resources and reducing the number of customers at the
counter by encouraging more and more customers to use the Internet banking channel.
The total cost of this solution included the training cost and the alternative system is
about 698,882,500 VND. However, the benefits from the above solutions can
completely cover the above costs. In detail, with the target of successfully register a
minimum of 10,675 Internet banking per year, X Branch will obtain a huge fee from
this product estimated about 1,127,280,000 VND per year. These solutions not only
have a positive impact in the short term but also in the long term. The emphasis on
human resource training contributes to help the staff increase their knowledge and
skills to confidently handle work, improve employee productivity, enhance employee
satisfaction and engagement. In addition, the move to Internet banking channel is a
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suitable solution with the development trend of the banking industry, bringing many
benefits for both customers and banks (saving costs, fast and convenient, etc).
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CHAPTER 1: COMPANY INTRODUCTION
1.1. General Information about Retail Banking
Retail Banking is defined as the type of bank that deals directly with individual customers
by providing them with a multiplicity of services like opening a savings account,
taking a loan, applying for a credit card and customers may also inquire about potential
banking products that they may need at a future date. A retail bank which acts as a
comprehensive financial service provider for retail clients, allowing them to purchase
multiple financial instruments, under one roof (1, 2).
Related to the trend of Retail Banking in Vietnam, Mr. Rahn Wood (Head of Retail
Banking at VIB Bank) said that start in 2014, development of retail banking will be a
natural development trend. With a developing country characterized by low average
incomes, the primitive banking system and the demand for finance and payment
services increases exponentially, surely the retail banking market in Vietnam will be
grow strongly in the next decade (3).
Nowadays, most banks have started to focus on promoting retail banking in the
Vietnamese market. According to Vietnam Banking Industry report 2015, corporate
lending is the main activity of the banks in Vietnam and it accounts for almost half of
total loans while only 28% are loans to individuals. According to the State Bank of
Vietnam, only 20% of the population in Vietnam holds a bank account. This illustrates
that the banks in Vietnam has a huge opportunity to develop retail banking services
(4).
Currently, local banks are competing fiercely to increase market share in various ways,
such as expanding Branch network across the country, developing online banking and
telephone services, Giving priority financial services to VIP customers and etc.
However, one of the difficulties for banks in Vietnam when joining the retail market is
that the human resources are not professional and lack of concentration and
synchronization. Therefore, the banks in Vietnam have to pay attention to the
recruitment and training of staff, build a team of professionals not only have the
qualifications, knowledge of retail banking but also have skills to communicate with
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customers. They also create a good working environment for employees to promote
the capacity and enhance the cohesion of employees with the bank (5).
1.2 Company background
VietinBank - X Branch in Ho Chi Minh city was established in April 30, 1985. It has a
wide network with the headquarters in X District and eight transaction offices in 8, 10
and 11 District.
VietinBank - X Branch always provides variety of banking products and services to
customers like opening a savings account, taking a loan, providing banking guarantee
products and etc. After over 30 years of operation, total outstanding loans for retail
customers of X Branch reached 1.110 billion VND, accounting for 12,98% of
outstanding loans in the area; total mobilized capital reached 3.855 billion, accounting
for 18,61% of total deposits in the area. With these results, VietinBank is the bank
with the third largest market share of credit and the largest market share of deposits in
the area.
To specialize in customer management and design policies tailored to each customer
segment, VietinBank classifies customers into two segments in the whole system:
Retail customers segment and Wholesale customers segment. Retail division
specialized in providing banking products for Retail customers including individuals
and micro enterprises with turnover of less than 20 billion Dong. Wholesale division is
responsible for developing wholesale customers that are organizations and enterprises
with turnover of over VND 20 billion.
The organizational model of VietinBank – X Branch is described as follows:
Figure 1: Organizational model of VietinBank - X Branch
Director
Vice Vice Vice
president of president of president of
Wholesale Retail other
division division divisions
Enterprises Retail Eight
Accounting
Personnel
Synthetic
customer customer transaction administration
department department
department department offices department
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As you can be seen in the organizational model above, X Branch is managed by the
Directors of Branch and three Deputy Directors. The branch is divided into 6
departments with different functions. At June 30, 2018, the total number of personnel
of X branch is 78 staff. In which, the Retail division accounts 57 employees including
Credit officers and Tellers accounted for the largest share of personnel at X Branch
with about 73% of total.
In recent years, the business results and the personnel situation of the retail division at
X Branch has many significant negative changes. In detail, the level of employee
satisfaction is very low and the number of employees resigning has increased rapidly
in consecutive years, X Branch is always in shortage of personnel; the business results
have been declining continuously for many years. In this analysis, I will analyze to
find out the potential problems and provide solutions to improve this situation of
VietinBank – X Branch.
1.3. The Symptoms
1.3.1 The first symptom: High turnover rate of employees
The below chart will show the number of employees of VietinBank - X Branch from
2015 up to now:
Figure 2: Compare the actual number of employees and the minimum number
80
71 72
68 69
70
60
62 61 57
60
50
40
30
20
10
0
Y 2015 Y 2016 Y 2017 Y 2018
The actual number
of employees
Minimum number
of employees
Source: Human Report 2015, 2016, 2017, 2018 in VietinBank - X Branch
Each year, based on the size and business network of each Branch, VietinBank will
assign the minimum number of employees for each Branch, it is also called boundary
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of human resources. The boundary is the minimum number of employees required to
run the business normally. Every year, based on the size, the number of transaction
points of each branch and the personnel policy of Vietinbank from time to time, the
Head office will assign the minimum number of employees to each Branch in the first
quarter of year.
It can be seen that, X Branch always in the shortage of personnel from 6-11
employees. In recent years, the recruitment at X branch is very difficult, the number of
applications is very low and the quality of personnel does not meet, leading to X
branch did not recruit the required needed. In addition, the existing staff at this Branch
continuously quit the job lead to the new recruitment does not cover the full number of
employees leave.
Figure 3: The number of labors classify based on the work time
60%
53%
51%
50% 46%
40%
28%
32%
30%
23% 23% 23%
21%
20%
10%
0%
Y 2016 Y 2017 Y 2018
<= 1 year 1-2 years >2 years
Source: Human Report 2016,2017, 2018 in VietinBank - X Branch
These chart show the number of labors classify base on the work time. In 2018, the
rate of human working in VietinBank - X Branch less than one year is 46%, from one
to two year is 23%. It mean that, most of retaile human resources are new recruiting
personnel, the time of cohesion with banks is low, mostly from one to two years.
Figure 4: The rate of personnel quitting the job
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50,9%
60,0%
46,7%
43,6%
50,0%
23,1% 25,0%
39,5%
40,0%
30,0% 21,4%
14,3%
20,0%
Y 2018
10,0%
Y 2017
0,0%
Retail Wholesale Other Branch X
department department department
Y 2017 Y 2018
Source: Human Report 2015, 2016, 2017 in VietinBank - X Branch
The rate of employees quit the job in Retail department very high and always higher
substantially than the other department and average rate of VietinBank - X Branch.
1.3.2 The second symptom: Low job satisfaction
Table 1: Results of the satisfaction survey of personnel in 2016, 2017
Year X Branch Average of region
2016 56.5 68.3
2017 58.3 71.8
Source: Human Report 2016, 2017 at VietinBank – X Branch
In 2016, for the first time, VietinBank carried out the employee satisfaction survey to
provide a comprehensive and multi-dimensional picture in the field of employee
engagement. VietinBank hired a third partner (Aon Hewitt Singapore) to ensure
independence and objectivity, encourage officials and employees (employees) to share
honestly and openly. Aon Hewitt Singapore has studied and developed a questionnaire
consisting of 12 short questions related to key aspects of personnel such as
remuneration, leadership, working environment and asking them about their proposals
related to personnel policies. This survey will be sent online via email to all staff of
VietinBank.
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The result of employee satisfaction survey has helped VietinBank to have clear and
specific information to measure the health of the organization, understand the
aspirations and the attachment level of employees according to each age, each
department and branch. This survey also receives many feedbacks and contributions
from the "voice" of the employees.
You can see in this table, in the last two year, the score of employee’s satisfaction at X
Branch has improved slightly but is still lower substantially than the average of region.
Although this is the result of whole X Branch, but with the number of employees
accounting for 73% of the total staff of X Branch, this result also reflects the
satisfaction of employees in the retail division is also very low
1.3.3 The third symptom: Low key performance indicators
The set KPI at VietinBank - X Branch is detailed in the attached appendix. It includes
over 13 indicators of all kinds, it is divided into four main categories: Financial Factor
(F), Customer Factor (C), Process / Operations (O) and the human element (P). In
which, the financial factor accounted for 62% of the total KPI, which was the most
significant factor in the overall KPI of the X Branch.
Details of some key financial indicators of the Branch are as follows:
Figure 5: The Sales
4500 4.173,36 4.206,77
4000 3.854,60 3.793,32
3500
3000
2500
Credit
2000 Capital
1331,65 1.375,32
1500 1.109,99 1.073,88
1000
500
0
Y 2015 Y 2016 Y 2017 Y 2018
Source: Business Report 2015, 2016, 2017, 2018 at VietinBank - X Branch
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From 2015 to 2016, the growth of outstanding loans and capital mobilization of
branches is negative: The balance of loan reduce 19% and the balance of capital
reduce 9.1%.
Figure 6: Completion rate of business targets in VietinBank - X Branch
100,0% 93,4%
87,7%
90,0% 84,7%
80,0%
75,4%
70,0%
60,0%
Credit
50,0% 95,9% 93,5%
81,6% Capital
40,0% 80,7%
30,0%
20,0%
10,0%
0,0%
Y 2015 Y 2016 Y 2017 Y 2018
Source: Business Report 2015, 2016, 2017, 2018 in VietinBank - X Branch
Due to the decline in sales, in recent years VietinBank - X Branch has not
completed its business target, the level of completion from 75% to 93%.
Figure 7: The Profits of retail division at VietinBank - X Branch
70
60 56,32 57,32
50 46,33
39,56
40
30
20
10
0
Y 2015 Y 2016 Y 2017 Y 2018 e
Source: Business Report 2015, 2016, 2017 in VietinBank - X Branch
Profits of X Branch have dropped rapidly over the past three years.
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1.3.4 The fourth symptom: Low job performance
At the retail division, staff performance is assessed monthly through the average gross
incomes earned by every staff, including income from loans interest, deposits interest
and cross-selling fees such as bank guarantee fees, money transfer fees, insurance fees
and etc. The reason why the income is chosen as a measure of job performance is
VietinBank argued that the last important factor is business profitability. To assess in a
most objective way and reduce the impact of regional factors and differences between
job positions, staff performance is measured separately between different job positions
and locations.
The average income of personnel at Vietinbank – X Branch from 2016 to 2018 As
follows:
Table 2: The average income of personnel
Y 2016 Y 2017 Y 2018
Income
Compared
Income
Compared
Income
Compared
Income with the with the with the
(billion (billion (billion
regional regional regional
dong) dong) dong)
average average average
VietinBank - X Branch
1 Teller/year 0,74 85% 0,61 77% 0,52 61%
1 Credit officer/year 1,01 86% 0,91 75% 0,83 67%
VietinBank - Hồ Chí Minh region
1 Teller/year 0,88 0,79 0,85
1 Credit officer/year 1,17 1,21 1,23
Source: Business Report 2015, 2016, 2017, 2018 in VietinBank - X Branch
Based on the above table, it can be seen that the average income of a Teller bring to
VietinBank – X Branch per year dropped from 0,74 billion dong to 0,52 billion dong,
down nearly 30 percent. The regional average also declined but was not significant.
The yield per Teller at X Branch also dropped from 85% to 61% in comparison with
the regional average. The income of a Credit officer bring to X Branch has the similar
trend as the Teller, the average income declined from 1,01 billion dong to 0,83 billion
dong, lower than the regional average. Teller and Credit officer are the main forces
contributing to the retail profit of the Branch, so the decrease in the productivity of
each staff directly affected to the profitability of X Branch as analyzed above.
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Based on the above analysis, it can be seen that the business situation of VietinBank X
Branch has many dramatically negative variations in recent years: The revenue and
profit decrease significantly, low job satisfaction and low job performance. The main
reason may be due to personnel change, business development has encountered many
disruptions. In addition, new personnel lack experience leading to low sales
effectiveness.
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CHAPTER 2: PROBLEM
IDENTIFICATION 2.1 Problem mess
Based on the analysis of the above symptoms in chapter 1, the researcher conducted an
in-depth interview to collect data from the organization. The purpose is to investigate
what main problems exist leading to these symptoms at VietinBank - X Branch.
Similar to the previous section, in this part also verify by theories informed in every
problem and cause.
This study chose in-depth interview method because the advantage of this qualitative
research approach is that the interviewees would feel comfortable and openly share
their opinions related to the topic with some sensitive questions. Beside, this method
also helps gather information in the most comprehensive and intensive way.
To have a multi-dimensional assessment of the personnel situation at VietinBank X
Branch, this study interviewed five employees from different positions in retail
department as details at attached appendix 01 (Part 1). The interviewees were selected
carefully with a requirement of at least one year of experience working in the retail
division, to ensure that interviewees have sufficient experience and understanding of
the personnel situation at X Branch.
Details of the 5 selected interviewees are as follows:
The first two selected interviewees were a Customer relationship Officer and a Teller
who are currently working at VietinBank - X Branch. In which, the Customer
relationship Officer has a working time of nearly 2 years and the Teller has more than
3 years working at the current position. The opinions of these two interviewees
represent the views of existing employees working at X Branch.
This study also conducted interviews with two employees of the above positions but
now they have resigned at VietinBank - X Branch and moved to work at another bank.
These employees also have a relatively long working time at the retail department of X
Branch, they have been associated with X Branch for more than 2 years. Because these
interviewees are no longer working at VietinBank - X Branch, their opinions are
relatively objective about their assessments of the working environment at X Branch,
the reasons for employees leave and their comparisons of differences in working
environment between VietinBank - X Branch and other banks.
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Finally, this study also selected interviews with a manager who has the the largest
number of employees leave X Branch in the past time. The purpose of this interview is
to collect opinions from the perspective of the manager related to the reasons why
many employees leave work and capture the impact of the uncertainty in the personnel
to the business situation at the transaction office.
The interview consists of from 9 to 10 questions which are open-ended questions
depending on the job position of the interviewee in detail in the interview guide
attached at Appendix 1. The main difference between the interviews is that except for
questions related to personal information and job description, the resigned employees
will be asked more about their assessment of the pros and cons of X Branch’s
workplace, their comparison of working environment between VietinBank - X Branch
and their current workplace, and about the reason why they left X Branch; the manager
will be asked more about the impact of personnel fluctuations on the business of his
division and his thinking about reasons why many of employees in his department quit
their job.
Based on the opinions of the interviewees, the study draws some key limitations about
the personnel situation at VietinBank - X Branch as follows:
2.1.1 Over working hours
All five interviewees reported that their average working time from 9-10 hours per
day instead of 8 hours per day as usual. This means that every employee is required to
work overtime on average from 1-2 hours per day.
Mrs. Tran Thi Phuong Loan - a current Teller shared that in addition to the working
time of the week as regulation, X Branch usually generates additional meetings on
weekends leading to the staff not having enough rest and family time. She also added
that next year her daughter will start go to school in grade 1, it is possible that she will
have to find another workplace to conveniently take care of her daughter. Similar to
Mrs. Phuong's situation, the children are the concern that Mrs. Nguyen Thi Thanh
Nhan - a Teller who left her job at X Branch has to give up her job at VietinBank to
have enough time to take care of her children.
According to Mr. Tran Cao Nguyen - a current Customer Relationship Officer, his
work at VietinBank - X Branch occupies the majority of his time, he does not have
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enough time for his hobbies such as traveling or gathering friends. Mr. Truong Van
Cuong – a manager also said that one of the main reasons for the resignation of his
staff is work - life imbalance. Indeed, with the average working time of 9-10 hours per
day and even weekends as shared above, it can be seen that, the personnel at X Branch
are suffering the condition of over working hours.
There are many views on standard working time, according to Allan, Brosnan &
Walsh, the “standard” working week consisted of work between 9am and 5pm,
Monday to Friday. Rutenfranz et al. argue that standard work hours were considered
those that did not intrude on the workers’ premium social time on evenings and
weekends (6).
Kodz et al. found that for some people Work-Life Balance concerned flexibility of
schedules, whereas for others it was a reduction in working hours. Dow-Clarke defined
Work-Life Balance with reference to, amongst other things, family life, income and
the life cycle. She is also interesting when found that all focus groups talked about
Work-Life Balance in relation to work hours. The above sharing of interviewee at
VietinBank – X Branch show that long working hour makes employees unbalanced
work and life. An study of Joanne White MSc and Johanna Beswick also suggests that
working long hours is perceived to impact negatively on various aspects of home life
(7).
2.1.2 Job stress
Mr. Tran Cao Nguyen said that he is very pressure because he is managing a large
number of customers and a huge credit balance of over 80 billion Dong. He is feeling
stressed because of the over workload and high business targets. Sometimes, depressed
psychology makes him unable to focus on his work, which also partly affect to his
quality of work. Mr. Le Truong Man – a Customer Relationship Officer who has
resigned from VietinBank - X Branch also had the same situation with Mr. Tran Cao
Nguyen. Even when he got home, he was also under pressure to think of business
goals and work in progress. This is also the main reason for his resignation at
VietinBank - X Branch. For the Teller position, Mrs. Nguyen Thi Thanh Nhan said
that “When I was working at X Branch, I am often stressed because every day I have to
serve an average of 60-70 customers requiring fast and accurate”. Considering the
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manager's perspective, Mr. Truong Van Cuong also admitted that most of his staff quit
the job due to work pressure.
Based on the above comments, it can be seen that the "Pressure" and "Stress" of the
work is the common opinion of all respondents when evaluating about the working
environment at X Branch, these are also major manifestations of the “Job stress”.
According to the National Institute for Occupational Safety and Health (NIOSH), job
stress can be defined as the harmful physical and emotional responses that occur when
the requirements of the job do not match the capabilities, resources, or needs of the
workers (8).
Talk about the relationship between job stress and job satisfaction, there are many
researches discuss about it. The study of Landsbergis and Terry et al. showed that high
levels of work stress are associated with low levels of job satisfaction. Moreover,
Cummins have emphasized that job stressors are predictive of job dissatisfaction and
greater propensity to leave the organization (9).
Regarding the effects of job stress on job performance, a study of Benish Shabbir et al.
showed that work-related psychosocial stress is a multi-faceted phenomenon which
may affect employee attitudes and behaviors and later stresses put negative impact on
the performance. When job stress increases or cross its limits it directly affects
performance which causes performance reduction (10).
2.1.3 Unrealistic targets
According to the interviewees, the employees at X Branch are subjected to many types
of business targets and each indicator is very high. Specifically, Mr. Truong Van
Cuong shared: “The KPI set of each employee includes over 13 indicators of all kinds
such as outstanding loans, funds, cards, e-banking and etc. Each indicator is
important and occupies a certain weight in the scorecard, however, each staff has only
limited time so it is difficult to focus on all indicators. Many types of indicators, if not
completed, will be deducted for penalties resulting in the KPI score of employees are
relatively low”. Similar to Cuong's share, Mr. Le Truong Man also shared that the
business targets increased exponentially, although he tried a lot but he can only
achieve less than 80 points. The failure of business targets completion has a
particularly significant impact on employee incomes at VietinBank because the
19

income of each staff depends on their KPI score, so if they have a low KPI score, their
income will be low respectively.
Studies also show that the mentality of these employees is consistent with the
motivation theories. In detail, Atkinson’s achievement motivation theory proposes that
individuals are motivated mainly by performance targets that are set at levels of
intermediate difficulty, neither too high nor too low. The individual motivation and
performance decreases as the perceived difficulty approaches the impossible. It means
that they are certain that they will fail to achieve their target (11).
Because the target is too high, the employees try a lot but did not achieve, they will
feel their contributions are not recognized. Mr. Le Truong Man said that although he
has tried a lot, but his KPI score could not cross the 80 points and he was always
underestimated he is always appreciated not complete the task well. In the same view
with Mr. Le Truong Man, Mrs. Tran Thi Loan Phuong shared, "Because of the
relatively long working experience compared to other staff in my division, I often have
to handle more complicated tasks. That is so but not recognized by many people, so I
do not want to try again. Although I am hard but also not recognized, so I do not want
to try anymore”.
2.1.4 Not enough Coaching & feedback
In view of Mr. Le Truong Man, this is the point that X Branch has not got and need
attention and improvement. He concludes that at his current job at Vietcombank, his
leaders regularly orient the staff, follow the process, give feedback and suggestions for
staff to draw experience and do better in the next time. Mr. Tran Cao Nguyen also
wishes to receive more orientation from the leadership to improve his professional
skills, this is also a factor in supporting the employees to accomplish business goals
more easily. Mr. Truong Van Cuong admitted that due to limited time, he did not pay
much attention to coaching and feedback his staff as the role of a leader.
There are many researches related to the relationship between coaching, feedback and
job performance. According to Fournies, coaching has been defined as a process for
improving work performance. It is as a one-to-one process of helping others to
improve, to grow and to get to a higher level of performance, by providing focused
feedback, encouragement and raising awareness. Beside, concerning the consequences
20

of coaching to coaching on job satisfaction and job performance, many people have
praised the positive consequences of coaching on these factors. The reasons why is in a
coaching context, people will feel more valued and respected by their employers, thus
they will tend to be more loyal and work harder. Two qualitative studies conducted by
Deeter-Schmelz et al. found that both salespeople and sales managers agreed that
coaching skills impact salesperson’s development, which ultimately increases
salesperson’s job performance and customer relationships development (12).
2.1.5 Inconsistent of management style
Regarding the management style of the leader, Mr. Le Truong Man responded about
inconsistent leadership among the leaders. It means that in the same problem, each
Manager directs in a completely different way. Or even, in the same problem but the
leader also different direction at short times, sometimes yes, sometimes not yes. This
makes the staff feel very contradictory when making decisions and confused how to
choose the right way.
According to situational leadership theories, it is important to adjust the leadership
processes to fit the needs of followers in a given scenario. However, if the leaders who
become overly oriented to this approach, they may become so focused on constant
adjustments in the short term that they lose sight of the long-term implications of a
leadership approach. A situational leader may be deemed inconsistent and hard to
predict by followers, which can produce a lack of trust in his direction (13).
2.1.6 Unfair between compensation and contribution of employees
All five interviewees have had time to work in another bank. When they are asked to
compare their earnings when working at VietinBank - X Branch with another bank,
only two out of five interviewers said that total income at VietinBank was higher than
when they worked at other banks. Although they said that the total income at X Branch
is higher, but these interviewees are not satisfied with the income because they think
it's not worth with their effort. Specifically, Mrs. Nguyen Thi Thanh Nhan said that
with the working time more than the old bank she had worked about 2-3 hours a day,
the actual income in VietinBank X Branch is not higher than at the bank she used to
do.
21

A research employee compensation by Cowherd and Levine suggest that individuals
often compare their pay to that of people higher in the organization structure. If lower-
level employees feel inequitably treated, they may seek to reduce their effort to
achieve equity. So that, the job performance will be reduced.(14)
2.1.7 Lack of vacation and family benefit
Most of employees believe that X branch is lacking welfare policies besides wages for
staff and their families such as holidays, parties. In proposing solutions to increase
staff engagement at VietinBank - X Branch, three out of five interviewees
recommended that X Branch should to organized some holidays and team building
link between staff in X Branch. The Branch can also combine to invite the family and
relatives of employees to participate as a part of increased welfare for the staff and
help they balanced work and life, this will motivate staff to be more attached with X
Branch.
According to the International Accounting Standard, holiday and family benefits (For
husband (wife), children or other dependents) are two of nineteen types of Employees’
Benefits. A study was conducted by Alexandru Salceanu showed that employees’
benefits were conceived as forms of motivation and reward in order to help increasing
work performance.(15)
Nowadays, the benefit plays a significant factor in the attraction and retention of
employees. Benefits encompass all other inducements and services provided by an
employer to employees. Work-family benefits are a form of accommodation and
enhancement benefit, they are a benefit designed to “promote effective coping skills
and educational opportunities for employees and, sometimes, family members”. They
are designed to address the conflicting demands between work and family. (16)
22

Above is the analysis of the data collected from the interview, the theories has proved that the relationships between variables are reliable and
valid. The initial cause -effect map of VietinBank – X Branch was built upon data collected from the interviews described as follows:
Figure 8: The initial cause -effect map of VietinBank – X Branch
23

2.2 Tentative problems
To find out the central problem that X Branch is facing, this study will analyse in detail
about the tentative problems as follows:
2.2.1 The first tentative problems: Work overload
Based on the analysis of the variables above, it can be stated that the first problem that
maybe the company is experiencing is work overload. The reason why is that over working
hours, job stress, too high target and not enough time to coaching and feedback are the
main signal of work overload problem.
The arguments that verify work overload maybe is the problem leads to these variables are
as follows:
Over working hours: Many studies have shown that work overload causes employees to
work overtime. In detail, Uehata studied over 200 karoshi victims and found that two-
thirds of the victims had been working 60 or more hours per week and more than 50 hours
overtime per month prior to the attacks. His reported that third experienced other stress
factors such as increased workload. Sparks et al found that individuals are working
longer hours because of increasing workloads and job demands (7).
Job stress: Tolman and Rose defined work stress as “a hypothetical state that is influenced
by an environmental force and is demonstrated by reactions at various physiological,
psychological, and social levels” Thompson, in his study called depression, anxiety,
helplessness, frustration, fear, and despair as psychological consequences. Particularly, in
the literature stress has received great attention and described that work overload is the
resources that create stress and one of the most widely studied indicators. In this study, the
researcher also found that due to work overloads employees suffer from anxiety, poor
work performance and most important from stress, it results in decreasing job
satisfaction, and declining profits (17). Beside, Dow-Clarke in a study about Work-life
balance found that with regard to stressors, all groups mentioned workload.(7)
Unrealistic targets: In this situation at X Branch, it means that the targets are too high and
over the ability of the staff. Ksenia argues that over workload is work as the working
environment exceeding personal capabilities and further resulting in threats and the
reactions of nervousness, anxiety, frustration, pressing, or annoyance (18).
24

Not enough coaching and feedback: In the interview (Part 1), Mr Truong Van Cuong – A
manager shared that due to limited time, he did not pay much attention to coaching and
feedback his staff. As analysed above, many study showed that coaching and feedback has a
positive impact on increase job performance, so it can be help employees reduce the workload
more quickly, thus reducing the pressure on the job.
2.2.2 The second tentative problems: Ineffective leadership
The arguments that verify ineffective leadership maybe is the problem leads to these
variables are as follows:
Not enough coaching and feedback: Many empirical studies agree on this point and
consider coaching to be effective because it offers employees an intense way of learning
that is suited to their individual needs and thus leads to greater career satisfaction. Moen
and Allgood note that this practice makes participating managers more efficient and
effective in their leadership roles, as employee performance will improve if the coaching
process is prepared and implemented properly (19).
Inconsistent of management style: This is analyzed in section 2.1.5, the inconsistent of
manager can produce a lack of trust in his direction.
2.2.3 The third tentative problems: Incompatible compensation policy
Regarding the compensation policy, sections 2.1.6 and 2.1.7 have specifically analyzed
employees' compensation policy at VietinBank - X Branch. It can be seen that the majority
of employees claim that the compensation policy is not attractive and commensurate with
their efforts. Thus, incompatible compensation policy maybe is a problem that exists at X
Branch.
Lawler argued that, the compensation system sends a message to employees as to what is
valued in an organization. Beside, many studies also show about the disadvantages of an
ineffective compensation policy. A confusion in this policy can potential for breaches of
procedural justice and this might lead to lower productivity levels among employees as
well as higher. In addition, procedural justice and equity are crucial factors for employee
performance and commitment. Therefore, Managers should be aware as to how their
compensation systems can best support the culture of the organization because an
incompatible compensation system could create perceptions of injustice.
25

2.2.4 New findings from literatures
New variables
- Poor physical and emotional health: Base on the literatures, this study update a variable
related to the work overload. A heavy workload causes stress, which leads a series of other
health problems. The stress of dealing with a nonstop flow of work can lead to heart
problems, high blood pressure, loss of sleep and loss of appetite. The company may see its
health insurance costs go up while watching employee production go down. The health
issues caused by a heavy workload can often outweigh any benefits that may come from
maintaining a high level of output (20). A paper by Zulfiqar presented that on employees
working hours should not be behind their capacity, health and safety are primary for them.
Finally, it affect negatively to the job performance (17).
New relationships
The first new relationship related to the effects of over working hours to job performance.
Proctor et al studied the effect of overtime work on the cognitive function of automotive
workers and showed that increased overtime was significantly associated with impaired
performance on several tests of attention and executive function. In addition, many
researches also suggest a general belief that long working hour is detrimental to
managerial performance. For example, a survey by the Institute of Management found that
68% of managers felt that their long working hours were having an adverse effect on their
productivity. A US poll cited in Jeuness showed that 62% of managers agreed that shorter
working hours gives workers more incentive to be productive (7).
The second new relationships related to the unfair between compensation and contribution
of employees with the rate of employees quit the job and the job performance. This
research found that this variable not only affect to employees’ motivation but also affect to
the turnover rate and the job performance. According to Equity theory, Adams showed that
employees always compare that what they contribute to the organization, what they get in
return, and how their return-contribution ratio compares to others inside and outside the
organization. The perceptions of inequity are expected to cause employees to take actions
to restore equity such as quitting or lack of cooperation, it may not be helpful to the
organization. This research also found that the level of compensation affect to job
performance (14).
26

To confirm that these new findings is validated at Vietinbank – X Branch, the second
round of depth interview (Part 2) was conducted to ask all of five respondents at the first
interview (Part 1). Specific results are as follows:
Work overload leading to poor physical and emotional health: Indeed, work overload
affects significantly on the health of employees at X Branch. Mrs. Nguyen Thi Loan
Phuong share that, due to the heavy intensity of work and have to sit all day so after the
work time, she is always painful. Mr. Le Truong Man said that many periods of pressure of
business targets caused him to have sleeplessness, headaches and heavy stress.
Over working hours leading to decrease job performance: Share about this relationship,
Mr. Tran Cao Nguyen and Mrs. Nguyen Thi Thanh Nhan agree with this view. They argue
that when they get used to working late, they are mentally distracted during work hours
because they always think after work time will do. This directly affects to the productivity
of the staff.
Unfair between compensation and contribution of employees with the rate of employees
quit the job and the job performance: According to Mr. Truong Van Cuong, the level of
compensation is the motivation for staff to work better. At VietinBank Branch X, many of
the employees have been laid off because of their strenuous work but their the level of
income is not as expected. In the same view, the other respondents also said that high
income is a factor contributing to increase labor productivity.
Based on the literature review and the data collected in the subsequent round of interview,
the study updated cause-effect map as follows:
27

Figure 9: The updated cause - effect map of VietinBank – X Branch
28

2.3 The central problem
This research selects “Work overload” is the central problem of VietinBank - X Branch
for the following reasons:
The firstly, all respondents said that the workload at VietinBank - X Branch was over and
this is also the reason for both interviewees (Mr. Le Truong Man and Mrs. Nguyen Thi
Thanh Nhan) resign from X Branch. Mr. Truong Van Cuong - a Manager at X Branch also
admitted that most of his staff quit the job due to work pressure. Besides, Mrs. Nguyen Thi
Loan Phuong and Mr. Tran Cao Nguyen also said that if the workload is not reduced in the
coming time, they will leave X Branch. And according to Leigh Branham in the 7 hidden
reasons employees leave, this problem is one of the seven main reasons why employees
leave from organization(21).
The secondly, leadership style is a personal element factor of each manager, so it is
difficult to change. In addition, the employees also said that leadership style issues did not
affect them significantly to them.
The thirdly, benefit policy are systematic, so it is not easily to influence on. Beside, in the
interview (Part 1), the employees also commented that they can accept a lower salary if
they were able to reduce their workload. A study is conducted by John T. Brinkmann about
pay and job satisfaction shows that, that the employees can be satisfied with their pay but
unhappy with their jobs. The evidence is that the staff leave one company to work for
another without a significant increase in income (22).
Finally, if the problem of workload is overcome, X Branch will retain the personnel, so
that this Branch will save significantly the cost of recruitment and training. In addition, if
the personnel situation remains stable, X Branch will focus on business and increase labor
productivity, thereby increasing profit from business activities.
2.4 Problem definition
Defination
There are many definition about work overload. Jex definite work overload as employees’
perceptions that they have more work than they can complete within a given time (23).
Ippolito et al. proposed that over-workload resulted from work requirements exceeding
human boundary, which is an individual had to practice a lot amount of work and complete
29

it in certain period, or lengthy working time causing the body or spirit not being able to
bear the load (24).
Types of work overload
There are two types of work overload quantitative overload and qualitative overload. In
which, quantitative overload is situation that staff feelings related to the amount of work,
working too fast or too hard, having too much to do, or sensing too much pressure;
qualitative overload is situation that an employee’s feeling that they do not have the time
to produce quality work or do not have the skills to perform assignments (23).
2.5 Problem existence
The firstly, to see that over workload is a problem that X Branch is facing, you can look at
the sample KPI set of a Customer Relations Officer and a Teller according to Appendix 4
attached. The KPI set of each employee includes 13 indicators of all kinds. Each criteria is
important and occupies a certain weight in the scorecard, however, each staff has only
limited time so it is difficult to focus on all indicators.
The secondly, you can see obviously about the over work load situation of personnel at
VietinBank X - Branch through the following figures:
For Customer Relations Officer position
Table 3: The work load of a Customer Relations Officer
Criteria Average credit balance / The average number of
employee (billions dong) customers / employee
(Customer)
Year 2017
X Branch 41,11 57
Region 47,52 43
Year 2018
X Branch 42,96 59
Region 45,73 41
Source: Business Report 2017, 2018 in VietinBank - X Branch
It can be seen that, from 2017 to 2018, each Customer Relations Officer at VietinBank X
Branch managed an average of 41-43 billion dong of credit balance, equivalent to the
30

regional average. However, the number of customers that an employee at X Branch must
manage is higher over 1,3 times than the regional average. It means that the
workload/credit employee at X Branch is higher over 1.3 times than the area.
For Teller position
Table 4: The work load of a Teller
Criteria
The average number of transactions at
the counter/ employee/ a Day
(transaction)
Year 2017
X Branch
Region
Year 2018
X Branch
Region
121
107
113
96
Source: Business Report 2017, 2018 in VietinBank - X Branch
The table above describes about the number of transactions at the counter/day that a Teller
must handle throughout a day. It can be seen that the number of transactions that a Teller
at X Branch has a positive change from 2017 to 2018, decrease 8 transactions per day.
However, the volume of work that a Teller at X Branch must perform is always higher
than the regional average.
Finally, as part of the analysis in section 1.4, you can see that many staff complained about
the overload of work at VietinBank X Branch such as over working hours, job stress, work
life imbalance and etc. The existing personnel said that if the workload is not reduced in
the coming time, they will leave X Branch
2.6 Problem importance
Based on the analysis in previous sections, it can be seen that a part of the serious of work
overload problem at VietinBank - X Branch. In the part 1 of depth interview, all
respondents said that the workload at VietinBank - X Branch was over. To make clear
about the importance of this problem, both theories and one more depth interview has been
conducted on these respondents. The third round of depth interview includes five
31

questions. The first question, as normal, is about interviewee’s information; the second
question asks about their thinking about the work overload problem at VietinBank - X
Branch. Then question 3 is about some consequences of the problem. And question 4
mentions about the causes of the problem and the impact of these causes at X Branch.
Question 5 is given to consult them about solution to solve this problem.
The literature and results of interview show that’s, if this problem is not resolved quickly,
it will bring some main serious consequences as follows:
Low job satisfaction of employees and low level of employee engagement: Work overload
lead toward the employee job dissatisfaction. There are many research show that, work
over load is on of reason make employees stress: Paktinat and Rafeei found that
occupational stress occurred due to some factors like work overload, lack of job security,
work relations with others has negatively correlated to job satisfaction. Vimala shows that
tress is the big issue of the organization which occur due to tension work overload etc.
(25). Work overload make employees suffer from anxiety and most important from stress,
it results in decreasing job satisfaction (17). It can be seen that, most studies on job stress
are both referring to work overload as a common reason, resulting in reduced employee
satisfaction.
The consequence of this issue is that increased employee turnover. This problem increases
day by day that produce stress and work life conflict and decreases the morale of the
employees which ultimately decreases the performance and reduces the employee
involvement in their job (25).
At VietinBank – X Branch, all of the interviews shared that heavy workload makes them
stressful. Mr. Truong Van Cuong said that the over workload in the long run makes many
of the staff depressed and quit the job. Mr. Lr Truong Man and Mrs. Nguyen Thi Thanh
Nhan also said that they leave Vietinbank because of work overload. Besides, the results of
job satisfaction score of employees at X Branch in section 1.3.2 are remarkably evident for
this consequence, from 2016 to 2017, the job satisfaction score of X Branch is declining
and is much lower than the regional average. A low level of employee engagement not
only causes shortage of personnel, reduce profitability of business, increase the cost of
recruitment but also affect to the performance of employees and reduce the level of
customer satisfaction. These contents will be analysed specifically in the next section.
32

Low job performance of employees:
Apply the theories to the relationship between over workload and job performance, these
research found that, if the staff experience more load and choose to work faster in the
short-term, it may negatively impact performance in the long-term (26). The other research
showed that increased workloads may exert detrimental influences both upon system
performance and upon individuals involved (23).
There are many definitions of job performance. Motowidlo defined it is total expectation
of organization from separate behaviour samples of each person during specific period of
time. Rashidpoor defined job performance as a set of behaviour which person show in
relation to his job or, in other word, amount of efficiency gained due to training, producing
or servicing. Babu et al. argued that job performance is the same person efficiency in his
job according to his legal tasks and show amount of effort and successfulness of that
person (2). It can be seen, performance work depends on a variety of factors training,
producing or servicing and the job satisfaction of employees. In the previous section, this
research has given the theories shown that the relationship of these elements, in detail, lack
of experience and low job satisfaction can give the negative influence on job performance,
so that the consequences of work overload to an organization are multidimensional.
At VietinBank – X Branch, Mr. Tran Cao Nguyen share that heavy workload stretching
leads to he is exhausted, so his productivity also decreases. Mr Truong Van Cuong said
that, over load not only caused his staff pressure and loss health but also reduced their
work efficiency.
Low customer satisfaction
Efforts to enhance customer satisfaction have been considered critical by many
organizations, particularly those in the service sector, so there numerous studies of this
topic. The studies showed that the relationship between employee satisfaction and
customer satisfaction is very coherent. Spiro and Weitz argued that behaviour of satisfied
employees plays an important role in shaping customers’ perceptions of business
interactions. Hatfield et al. explains how satisfied employees influence others around them
to feel good. In the other hand, the research conducted by Schlesinger and Zornitsky et al.
33

showed that employees who have higher levels of job satisfaction also believe they are
able to deliver excellent service (27).
All interviewees shared that work overload causes them to be delayed with customers so it
make them unhappy. Mr. Tran Cao Nguyen commented that many time he has too much
work, although he tried his best but also could not fully satisfy the needs of his customers,
so it make them angry. Ms. Nguyen Thi Loan Phuong and Ms. Nguyen Thi Thanh Nhan
also shared that many times the customer are overcrowded but the Tellers were not able to
make timely requirements of the customers, so they must wait in the long time and they are
very dissatisfied. Mr. Truong Van Cuong also shared that, the customers always compare
VietinBank with other banks such as Vietcombank, ACB Bank, Sacombank and etc
because they said that these banks has the transaction processing time is very short and the
procedures are very simple.
It can be said that, work overload is a very important problem at VietinBank – X Branch
because the consequences of this problem are very serious, especially when the banks are
competing directly by the quality of the service to improve customer satisfaction level.
These consequences have a mutual impact relationship, so if this problem continues to
prolong, its consequences will multiply, so it will impact negatively on the image and the
profits of VietinBank - X Branch.
CHAPTER 3: ALTERNATIVES ANALYSIS AND POSSIBLE
SOLUTIONS 3.1 Potential causes of the problem
Based on the literature, this study develops a list of potential causes of the problem as
follows:
As the part of above definition about work overload, it can be seen that long working hours
is a major manifestation of overwork. Therefore, the causes which employees work for a
long time is also the potential causes leading to work overload. According to Professor
Drew Dawson et al., there are three main reasons employees have to work for a long time:
Increase monetary gain, respond to the organizational and/or occupational expectation and
increase personal satisfaction (6).
Monetary gain: Related to the monetary gain, Belgum argued that the most obvious reason
for working long hours is monetary gain. Hecker agree with this view when thinking that
34

the more hours people work, the more they earn. So that, to increase the incomes, the staff
try to work more leading to work overload.
Organizational and/or occupational expectation: According to Morehead , working long
hours may be to maintain a professional image. Many organizations continue to measure
employee value by inputs. Some employees work long hours as a voluntary expression of
dedication, others feel it is expected of them and an implicit criterion for promotion or
job retention.
Personal satisfaction: Various studies indicate work has a large influence over self-
esteem. Individuals may only work to prove their personal worth. This is true even when
longer hours have no impact on salaries or professional promotion.
According to Katherina Kuschel, work over load due to advances in technology,
Family/Non-Work Commitments (23).
Advances in technology: Technology has been another major factor in the drastic increase
in work overload and subsequent burnout. With the influx of the Internet, e-mail, laptops,
cell phones, smartphones, and tablets, employees are in constant contact with their work,
particularly for tasks that can be performed in any place at any time. Reich suggested that
advances in technology frequently mean employees are forced to work more (rather than
less) and often find it difficult to escape fully from their jobs.
Conflict with Family/Non-Work Commitments:
Many individuals become overloaded due to time based or strain-based role conflict-
namely, having two or more roles that are incompatible. Nowadays, there is an increasing
proportion of working mothers, dual-career families, and employees with responsibilities
for elders or disabled participating in the labor market. All types of workers feel time
pressures; however, working parents with both work and home demands tend to be
particularly affected by these stressors. In fact, researchers have found that working
women in particular (suffer from time famine and exhaustion because they still tend to do
the bulk of household work and childcare although traditional roles are slowly changing as
men are taking more of these tasks).
Lack of organizational Support:
Organizational support can be measured as colleague support, supervisor support, and/or
material resources/staff availability that support employees’ tasks. According to Karasek’s
35

demand-control model, all kinds of support-particularly leaders’ support can serve as a
buffer for work overload. On the other hand, lack of support may intensify the effect of
antecedents of work overload on WFC.
Staff shortages: According to Jenny Kodz et al, the staff shortages (including demands
upon specialist staff) also is one of the reasons given for long hours working. A major
reason for long hours working, particularly when it is unpaid, is the volume of work.
Factors perceived to be associated with increasing volumes of work relate to new
organizational initiatives; including flattening organizational structures due to de-layering,
increases in project based working, a greater emphasis on customer focus, meetings
culture, staff shortages. This reseach also saids that the personnel shortages lead to delay
or change the working schedules and working efficiency of existing staff will decrease
because of huge working pressure (28).
Unreasonable job assignment: Work demands are one of the most common sources of
work-related stress. While workers may need challenging tasks to maintain their interest
and motivation, and to develop new skills, it is important that demands do not exceed their
ability to cope. Workers can usually cope with demanding work if it is not excessive, if
they are supported by supervisors and colleagues, and if they are given the right amount of
autonomy.
36

The initital cause-effect map as follows:
Potential Causes
Staff shortages
Unreasonable job
assignment
Conflict with
Family/Non-Work
Commitments
Advances in technology
Lack of organizational
Support
Monetary gain
Organisational and/or
occupational expectation

High turnover rate

Low job satisfaction

Low key performance indicators

Low job performanceindicators
Validated Problem
Validated Consequences
Work overload

Unbalanced work and life

Job stress

Poor physical and emotional
health

Low job performance

satisfaction
Personal satisfaction
37

3.2. Verify causes of the real problem
Base on the list of potential causes, the researcher conducted a deep interview as attached
appendix 02 (Part 3). This interview also asked five respondents in part 1 about the reasons
why work overload at VietinBank - X Branch. The result of this interviews help check
potential causes mentioned above are applicable in X Branch or not and fine out some new
causes obtained from this Branch.
The interview results indicate that staff shortages, unreasonable job assignment and
conflict with Family/Non-Work commitments are the real reasons leading to work
overload at VietinBank X Branch, but advances in technology, lack of organizational
support, monetary gain, organizational and/or occupational expectation and personal
satisfaction are not. In addition, through interviews, the respondents also provided three
other important reasons for work overload at VietinBank X – Banch which are the large
number of unskilled new employees, the inefficient workflow system and lack of training.
Firstly, regarding the reason that the large number of unskilled new employees leads to
work overload, four out of five respondents said that lack of skill makes new employees
having low job performance, stressful in communicating with customers and facing with
too high business goals. Mrs. Nguyen Thi Loan Phuong and Nguyen Thi Thanh Nhan said
that the shortage of staff led to the new staff had to take the job immediately after the
recruitment without focusing one month training as usual. According to Nguyen Thi Loan
Phuong, the experienced employees as her have to shoulder the task of new staff led to
increased pressure for these employees themselves. From the perspective of the manager,
Mr. Truong Van Cuong also admitted that most of the new recruited staff did not have
high skills, it takes more from one to two years of training to help them be confident in
their work.
Many studies have also shown that lack of experience has a significant negative impact on
job performance. Specifically, a research of Globofore in 2016 related to the Employee
experience index, to measure the employee experience constructs, a survey of more than
23,000 employees in 45 countries and territories across many different industries and job
functions was conducted. The result showed that positive employee experience linked to
better work performance, it means that workers with higher employee experience index
38

scores are more likely to report high levels of work performance than those whose lower
scores.(29)
Figure 11: Employee experience is positively associated with work performance
Bottom 25% lowest Employee
Experience Index scores
Top 25% highest Employee
Experience Index scores
73%
96%
0% 50% 100% 150%
Work performance
Source: WorkTrends™ 2016 Global sample for the IBM/Globoforce
Employee Experience Index Study
Secondly, talk about the cause of inefficient workflow system that lead to work overload at
VietinBank - X Branch, the interviews evaluated that the current process at VietinBank is
too cumbersome, many of the steps are illogical and time-consuming. Mrs. Nguyen Thi
Loan Phuong – A Teller who are currently working at VietinBank - X Branch said that the
current workflow has many steps to perform manually, which takes a lot of time and the
accuracy is not high. Competitors such as Sacombank and Vietcombank have very simple
and automatic transaction process, resulting in shortening of transaction time for customers
and reduction of workload for employees. Mr. Truong Van Cuong also argues that the
credit workflow process is not optimal, the time and effort required to process a small or
large loans have no difference, leading to the wasted effort of the staff but the job
performance is not high.
Apply the theory to the workflow system, Bul was defined “workflow” as systems that
help organizations to specify, execute, monitor, and coordinate the flow of work cases
within a distributed office environment. A workflow process is simply understood as a
predefined set of work steps (30). Workflow systems impact on organizations by three
main types: operational, cultural/organizational, and economic. Many actual case studies
concluded that in a majority of cases, efficient workflow systems affect positively on the
operational performance was achieved, mainly through a decrease in throughput time,
waiting time, and cycle time, but also through a higher work volume (31).
39

Finally, the interviewers also comment that lack of training is one of the reason leading to
work overload. Mr. Truong Van Cuong shared that, for some time, X Branch shortage
personnel so many new staffs had to get the job immediately after recruitment without
attending new training courses more than a month as usual. The majority of staff at
VietinBank X Branch are inexperienced, but they are not fully trained, leading to time
consuming when handling work because they must take time to search for instructions. In
addition, lack of training also makes staff have psychological fear of wrong and pressure
when handling work.
40

The final cause-effect map as follows:
Potential Causes
Lack of training
Unskilled new employees
Inefficient workflow system
Staff shortages
Unreasonable job
assignment
Conflict with Family/Non-
Work Commitments
Advances in technology
Lack of organizational Support
Monetary gain
Organisational and/or
occupational expectation
Personal satisfaction

High turnover rate

Low job satisfaction

Low key performance
indicators ow

Low job performance
 rformance indicators
Validated Problem
Validated Consequences
Work overload

Unbalanced work and life

Job stress

Poor physical and
emotional health

Low job performance

41

3.3. Root cause
As discussing in the previous part, there are six potential causes that lead to the work
overload of retail division at VietinBank - X Branch. They are lack of training, unskilled
new employees, inefficient workflow system, staff shortages, unreasonable job assignment
and conflict with Family/Non-Work commitments. These causes really happen in company
but just three of them are the important factors for the main problem: Lack of training,
unskilled new employees, inefficient workflow system. The reason will be analysed as
below.
The first reason is that these causes were considered based on the result of the interview
about the real situation at Vietinbank – X Branch. It can be seen that in the result of
interview in part 2, these are the most common reasons which the respondents mention as
the main reason leading to work overload at VietinBank – X Branch. In detail, all of
respondents said inefficient workflow system is the main reason; four out of five people
said that lack of training and unskilled new employees is the main reason of work overload
at VietinBank - X Branch.
The second reason is that staff shortages, unreasonable job assignment and conflict with
Family/Non-Work commitments are the consequences of three main problems. If three
main reasons were solved, these factors will improve. Indeed, many research showed that
training help the organization enhance the employee’s commitment, improve job
performance and finally increase the revenue and profits for the company (32).
Finally, the reason related to staff shortages, unreasonable job assignment and conflict
with Family/Non-Work commitments are personal problems, hard to interfere to improve.
3.4. Tentative solutions
In the previous analysis, three validated and most important causes of main problem are
determined that lack of training, unskilled new employees and the inefficient workflow
system. Based on the literature and experience from successful of some Branches in the Hồ
Chí Minh city area, this research focuses on improving two outstanding issues related to
training and encourage customers to an alternative system which is internet banking. This
research focuses on these solutions because it brings many necessary benefits to the
current human resources situation at X Branch at below.
42

Related to the training, there are many definitions such as: Training is the act, process, or
method of one who trains. Blancher and Thacker who defined training as a systematic
process attempting to develop knowledge, skill and for current or future job. Training aims
to bring changes in the employee’s skills, in addition to other changes in attitudes and
knowledge. Skills might range from reading and writing to gaining skills in the computer’s
applications (33).
The advantages of training programs are that these have the important and positive effect
on the job satisfaction, job performance. A study conducted by Siebern-Thomas, analysing
13 countries in the European Community Household Panel, found that job satisfaction
tended to be higher where there was access to workplace training. Besides, training also
influence directly to workplace performance by raising output per worker, or be measured
indirectly through its impact on the wage on the assumption that this is equal to the
marginal productivity of labour (34). As mentioned above, VietinBank - X Branch has
79% of staff with less than 2 years of experience, so training is especially important for for
the personnel situation with limited experience and skills.
Related to the training the solution to improve the workflows, according to Neil Austin,
banks that fail to invest in technology will suffer compared to leading innovative banking
brands that invest substantially in client and customer facing technology, applications and
services. In order to provide these digital services at the front end, banks will need to
digitise internal processes and workflows, and therefore will automate significant
proportions of back and middle office jobs (35).
Inefficient workflow is one of the main reasons leading to increased workload and pressure
for staff at VietinBank Branch X. According to respondents from the interviewee in part 2,
current process at VietinBank is too cumbersome, manual and many of the steps are
illogical and time-consuming. So the workflow optimization solutions not only reduce
workloads for employees but also play an important role in increasing the bank's
competitiveness in enhancing customer satisfaction.
In Vietnam, some of Branches is focus on boosting internet banking service for customers
and bring about significant effects on reducing counter transactions. Many researches also
show that the other benefits from internet Banking bring to the banks such as: Saving cost
due to reduction of personnel dealing directly with customers, reducing the same steps to
43

repeat in a transaction; reduce the burden on administrative procedures, automation and
improve labor productivity; Globalization and expansion of operation network. In addition,
internet banking also brings significant benefits to customers such as saving time and costs
when not need go to the bank directly for the transaction, fast and convenient (36). So
apply to current situation, this research chooses internet banking as an alternative system
to support to current system at Vietinbank – X Branch.
Besides, the other reason which I choose internet banking is that X Branch has many
potential to develop this service. In detail, the transaction at the counter at VietinBank - X
Branch in the first 6 months 2018 is as follows:
Figure 13: The number of counter transactions
Other transactions 17%
Cash transactions 11%
Pay the bill (electric bill, water bill, etc) 3%
Collection of state budget funds 11%
Money transfer in the same system 10%
Interbank money transfer 48%
0% 10% 20% 30% 40% 50% 60%
Source: Business Report 2018 in VietinBank - X Branch
It can be seen in above chart, more than 72% of the number of transactions at the counter
included interbank money transfer, money transfer in the same system, collection of state
budget funds and Pay the bill (electric bill, water bill and etc.) an conducted by internet
banking.
Base on the actual situation of VietinBank – X branch as above analysis, this research
chose internet banking is the solution to limit the impact from the process.
Depending on the characteristics of each organization and the trainees to select the
appropriate training type, there are two types of training which are On-The-Job and Off-
The-Job Training (37). There for, this research designed the set solutions to reduce work
overload at VietinBank - X Branch as follows:
44

Set solution 1: On-The-Job training and using the alternative system by internet banking.
Set solution 2: Off-the-job training and using the alternative system by internet banking.
Set solution 3: Combined On-The-Job Training and and Off-the-job training and using the alternative system by internet
banking Please see figure 14 for more information.
Figure 14: The chart of solution
Set solution 1: On-The-
Job training and using
the alternative system
Training
programs
Set solution 2: Off-the-
job training and using
the alternative system
Alternative
system
Set solution 3: Combined
on and off- the-job
training and using the
alternative system
Validated causes
Lack of training
Unskilled new
employees
Inefficient
workflow system
Staff shortages
Unreasonable job
assignment
Conflict with
Family/Non -Work
Commitments
Validated Problem
Work
overload
45

3.4.1 Set solution
In this part, based on the theories, related to choose the type of training, the researcher
conducted a quick interview on 20 personnel of retail division at VietinBank – X Branch to
design the suitable solution with their needs. The interview also has 3 questions, the first
question ask the interviewee about what type of training they like best, the second question
ask about the method of training they like, and the final question is related to the
alternative system about which method they refer to develop internet banking. The purpose
of this interview is collect diverse opinions from participants to solutions become more
efficient.
3.4.1.1 Set solution 1: On-The-Job training and using the alternative system by
internet banking
Training program
On-The-Job training is planned, structured, and mostly carried out at the trainee’s
workplace. It is sometimes carried out in a special on-site training area. In on-the-job
training, managers, supervisors, trainers and colleagues spend a large amount of time with
trainees to teach previously determined skill sets (37).
On-The-Job refer to practical and learning by performing, it is suitable for the
manufacturing firms. The main training method of On-The-Job training is as follows: (38)
Figure 15: The on-the-job training methods
This method is very suitable for in Retail division at Vietinbank X – Branch because
almost of employees are lack of experience. We can apply it by the way the supervisor or
the experienced employees guide the trainees how to perform a particular task such as: The
way which a new employee can make money transfers efficiently and quickly, the way to a
Credit Office can assess customers and identify risks and etc. The trainees will follow the
instructions of the supervisor and perform the task.
46

The result of interview on 20 personnel showed that, there are 4 participant select the on-
the-job training type, it account 20% of total.
The alternative system by internet banking
Internet banking is an innovative service in the banking industry. It is a service of
electronic banking (E-banking) enabled bank customers to access accounts and general
information on bank products and services through the internet. However, the development
of this service is also limited. In detail, since 2004, the scale of internet banking in
Vietnam is relatively small. Till 2014, total users of this service have only reached 6
million, equivalent 17% of total Internet users which is even lower than the average of
Asia-Pacific (39).
As the mention in the previous, internet banking has a positive impact for the bank and
customers. Therefore, nowadays, all of banks have realized the importance of this service
and are competing harshly to grow the market share of this service. To apply effective
internet banking development solutions, this research applied two effective way of other
VietinBank Branches which are developing the registration channel at the counter and
from the staff channel of the Enterprise customer at Branches. In detail, with developing
the registration channel, the force of the Teller will play the main role, so these branches
use an motivation program donated 15.000 VND/ successful registration. With the staff
channel of the Enterprise customer at Branches, these branches also apply an motivation
program donated a gift worth about 20.000 VND/ successful registration.
At VietinBank – X Branch, the result of interview show that the employees like apply all
of two above way. In detail, there are 11 participants select to apply all of two above way,
it account 55% of total; there are only 4 to 5 participants who select only one way.
3.4.1.2 Set solution 2: Off-The-Job training and using the alternative system by
internet banking
Training program
Off-the-job training can involve group discussions, one-to-one tutorials, lectures, reading,
training courses and workshops. This type of training enables trainees to learn and apply
new skills and knowledge in a safe working context. (37).
On-The-Job refer to theoretical and learning by acquiring knowledge. The main training
method of On-The-Job training is as follows: (38)
47

Figure 16: The off-the-job training methods
In Retail division, VietinBank – X Branch can apply it by the way organized an conference
related to some hot topic that the staff interested in or hold a lecture by a famous speakers
and etc. The trainees can concentrate only on learning without stress environment. But this
method is one of the expensive training methods. It involves selection of the place of
training, the arrangement of facilities for the workers, hiring an expert to impart training,
etc.
The result of interview on 20 personnel showed that, there are 5 participants select the of -
the-job training type, it account 25% of total.
The alternative system by internet banking solution is in detail at section 3.4.1.1.
3.4.1.3 Set solution 3: Combined On-The-Job Training and Off-the-job training and using
the alternative system by internet banking
The set solution 3 is the combination of set 1 and 2, so it will cover the sum of the benefits
of two set solutions 1 and 2. This is the set solution that employees like the best. The
evidence is that 11 participants select this set solution, it account 55% of total.
In the interview, this research gives to the employees some popular of training method to
choose. The result of interview on 20 personnel (in detail at appendix 2) showed that team
training and lecture are the employees like the best is Lecture with 44 points and Team-
training with 56 points.
The characteristics of some main training delivery methods are described as below (40):
Table 5: The popular training method
Training method Definition
Job rotation Involves training for a job by working in the job for a limited
duration, while still maintaining the original job.
Lecture Involves the dissemination of training material by a trainer to a
48

group of trainees, by means of verbal instruction.
Mentoring Involves a one-on-one partnership between a novice employee
with a senior employee. Mentorship aims to provide support
and guidance to less experienced employees whereas
apprenticeship is for the development of job skills
Team-training Intended exclusively for groups of individuals that behave
interactively, to either improve mutual knowledge within a
team or to train the team on a team specific skill.
Simulation Involves the use of a simulator where specific skills are
developed through repeated practice with a multisensory
experience of imitated conditions. A special form of
simulation training is Virtual Reality Training which entails
total sensory immersion
The alternative system by internet banking solution is in detail at section 3.4.1.1.
3.4.1.4 Choosing the most suitable set solution for company
Base on the result of interview and reviews based on the literature, this research apply
the set solution 3 for VietinBank X Branch, which is the set solution that employees like
the best. The action plan will be deigned in detail as bellowed.
3.4.2 Plan design:
3.4.2.1 Objectives
Table 6: The objectives of set solution
Training program solution Internet banking Solution
The training of personnel in retail division The alternative system by internet banking
has four major objectives: has four major objectives:
- Improve the skills of planning and - Reduce the number of transactions at the
organizing work scientifically for counter, reduce pressure of staff and save
employees, thus improve productivity; the costs (personnel costs, papers expense
- Increase knowledge of new employees and etc);
49

about the products, process and regulation - Saving time and costs to customers when
to help them feel confident and reduce not need go to the bank directly for the
pressure when handling work; transaction, fast and convenient;
- Sharing experience to each other how to - Extend the sales channel to sale maximum
deal with difficult cases arising, thus saving products and service, from that increase
time for the similar following cases; profits.
- Increase knowledge to identify potential
risks and provide guidance on how to deal
with the risks arising;
- Train to improve soft Skills and create the
motivation for staff can confident in work,
- Make employee engage with company.
3.4.2.2 Actions
As can be seen in the table 7, action for each task will be applied in 2019 as follow:
Training program
Table 7: The actions of training program
Type of
Action
Detailed
Frequency Participants
training description
Share about the At least 1 time Trainer: The
knowledge or the per month. manager is
experience (The the clue.
On-the-job
Team – training
new and difficult Trainee: All
training case in work, new of credit
finding, etc.)each officer and
other within the Teller
team
Invite the experts At least 1 time Trainer:
to share about the per six months Expert at
Off-the-job
important topics Each course is VietinBank
Organize seminars (Risk management, performed 2 Head office
training
by experts Get to know times for Trainee: All
Counterfeit money employees to of credit
and etc) turn officer and
Teller
50

Summary the rule At least 1 time Trainer:
and policy of per three months Expert at
Organized training
product, solve Each course is VietinBank
difficult problems performed 2 Head office
about products,
times for Trainee: All
policies by experts
employees to of credit
turn officer and
Teller
Train to develop At least 1 time Trainer:
Develop soft skills
soft skills and per six months Famous
motivation of Each course is speakers;
and motivation by
employees performed 2 Trainee: All
the famous
times for of credit
speakers
employees to officer and
turn Teller
Note: This action applies to every division (Credit officer and Teller are separate).
Table 8: The actions of alternative system by internet banking
Sale
Action
Detailed
Frequency Participants
channel description
-The tellers sale to
The
all customer trade
at counter
registration
Daily sale - Donated to Teller Daily Teller
channel at
15.000 VND by
the counter
cash/ successful
registration
-Organize the small
workshop in
The staff
customer'
company, prepare
channel of
Sale for the staff at standee and leaflets At least 1
the Credit
the customer's to introduce to company per
Enterprise officer
company every customer; month
customer
at
Branches - Give a gift worth
20.000 VND per a
successful
registration
51

3.4.2.3 Timeline
As can be seen in the table 9, timeline for each task will be applied in 2019 as follow:
Training program
Table 9: The timeline of Training program
Type of
Action
2019
training Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
On-the-job
Team – training
1 1 1 1 1 1 1 1 1 1 1 1
training time
tim
e time
tim
e time
tim
e time time time time
tim
e time
Organize seminars related
At At
leas
t least
to the important topics by
1 1
experts (Lecture)
tim
e time
Organized training about
At At At At
Off-the-job
leas
t
leas
t
leas
t least
products, policies by
training 1 1 1 1
experts (Lecture)
time
tim
e time time
Develop soft skills and
At At
leas
t least
motivation by the famous
1 1
speakers (Lecture)
tim
e time

Note: This timeline applies to every division (Credit officer and Teller are separate).
52

Table 10: The timeline of alternative system by internet banking
2019
Sale channel Action
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
The
registration
Daily sale Daily Daily Daily Daily Daily Daily Daily Daily Daily Daily Daily Daily
channel at the
counter
The staff Sale for At least At least At least
channel of the the staff at At least 1 At least 1 At least 1 At least 1 At least 1 At least 1
1 1 1 At least 1 At least 1 At least 1
company company company company company company
Enterprise the company company
compan
y company company company
per per per per per per
customer at customer's per per per per month per month per month
month month month month month month
month month month
Branches company
3.4.2.4 Cost
Training program
Table 11: The cost of Training program
Type of
Action
The number
Unit cost Total cost/course Total cost
training of courses
On-the-job Team – training 24 The cost of tea break 1,425,000 VND 34,200,000 VND
training (25,000 VND/1 staff *57
staff)
Off-the-job Organize seminars related 8 - The cost of materials 4,080,000 VND 32,640,000 VND
training to the important topics by (15,000 VND/1
53

experts (Lecture) employees*57)
- The cost of tea break
(25,000 VND/1 person*57)
- The cost of teachers
inviting
(300,000 VND/hours/1
teacher *2 teachers*3 hours)
Organized training about 16 - The cost of materials 4,080,000 VND 65,280,000 VND
products, policies by (15,000 VND/1
experts (Lecture) employees*57)
- The cost of tea break
(25,000 VND/1 person*57)
inviting
(300,000 VND/hours/1
teacher *2 teachers*3 hours)
Develop soft skills and 4 - The cost of materials 19,280,000 VND 77,120,000 VND
motivation by the famous (1 courses lasts (15,000 VND/1
speakers (Lecture) 2 days for employees*57)
employees - The cost of tea break
turn) (25,000 VND/1 person*57)
inviting
(17,000,000 VND/a course
of 2 days)
Total cost 209,240,000 VND
Note: The unit of cost references from VietinBank Training School resources
54

Table 12: The cost of alternative system by internet banking
Sale channel Action The number Unit cost Total cost
Average 3 successful Motivation cost 248,400,000 VND
The registration internet banking (Reward 15,000
channel at the Daily sale registration/ A teller *23 VND/ 1 successful
counter tellers * 20 work day*12 internet banking
months registration)
-69 Corporate customers - The cost of gifts 241,242,500 VND
with 9,295 staff about 20,000 VND/1
The staff channel of
(270 staff/month) staff
-The cost of marketing - 300,000
the Enterprise Sale for the staff at the
(Standee, leaflets) VND/Standee
customer at customer's company
+ 138 standee (Each - 1,500 VND/leaflets
Branches
workshop use 2 standees)
+ 9,295 leaflets (Each
customer use 1 leaflet)
Total cost
489,642,500 VND
Note: The unit of cost references from the Successful branches resources
Finally, the total cost of this solution included the training cost and the alternative system is about 698,882,500 VND. However, the
benefits from the above solutions can completely cover the above costs. In detail, with the target of successfully register a minimum
55

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