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INTRODUCTION

Vietcombank (Vietnamese Bank for Foreign Trade) was founded in Hanoi on April
1, 1963, and was previously known as the Foreign Exchange Department. Vietcombank
became a joint-stock commercial bank on June 2, 2008, after being chosen by the
government as the first state-owned commercial bank to pilot equitization. With a market
capitalization of 362 trillion dongs, Vietcombank is now the largest bank and also the
firm with the greatest market valuation on Vietnam's stock market. In addition,
Vietcombank has a large number of local and international branches and head office.

Vietcombank logo (Source: https://pluspng.com/vietcombank-logo-png-1506.html)

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Task 1:

I. Different theories of leadership in relation to the management activities

Northouse, P. (2018) characterizes administration as "the demonstration of
persuading others to work openly toward objectives, as well as could be expected, and at
times in manners they could never have picked in any case." Leadership is characterized
as a social cycle in which one individual impacts the activities of others without turning
to or compromising brutality. A pioneer is an individual who uses authority over others
(Silva, A., 2016).
1. Old approach
Trait theory is a way to study human personality. Through these approaches, it is
possible to see the behavior, thinking, and emotional habits of leaders across different
situations, and it must be seen to be stable over time, and their behavioral influence to
other people (Irina Novikova, 2013).
Before the equitization, Mr. Vu Viet Ngoan - General Director of VCB was the first
person in Vietnam to win the title of "Typical Asian Bank Leader" in 2005. During his
time leading the company, VCB has has made great progress and has an impressive
corporate culture.
Leadership at VCB is based on discussion, company leaders always make choices
after receiving opinions from their employees. Therefore, VCB's employees always
support and agree with the strategic goals of the company. Not only that, VCB's leaders
also always encourage employees to be creative in their work to make their work more
effective.
2. New approach.
Behavioral leadership theory is understood to consider the ways in which other
leaders behave and these characteristics can be imitated by other leaders. We can define
leadership behavior through the completion of the task and the sustained efforts of the
performer (Burke, C. S., Stagl, K. C., Klein, C., Goodwin, G. F., Salas, E., & Halpin, S.

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M., 2006). The effectiveness of leaders is determined by meeting three essential areas in
working together (Northouse, P., 2018).
Along with the big change in the process of equitization and restructuring, VCB has
had changes in leadership.
 Common task requirements:
In a group, there will be common requirements to achieve the goals set by the group,
including defining tasks, planning the work to be done, allocating resources appropriately
to roles and responsibilities, managing Manage the quality of work to achieve efficiency,
on schedule. Therefore, according to Mr. Dung, the close connection between managers
and activities in the business is very necessary. Because, at present, VCB is a bank
specializing in foreign economic services, becoming a multi-functional bank, operating in
many fields such as international trade, capital trading, capital mobilization, credit. use
and finance large and small projects. In addition, VCB also develops modern services
such as card services and e-banking.
At the beginning of 2020, thanks to the application of technology development, VCB
successfully transformed the core banking system – a bank that develops high-tech e-
banking services in the field of digital transactions. From there, users can use multi-utility
digital banking services such as VCB Digibank, VCB Pay, VCB CashUp.
In addition, VCB also conducts a number of surveys and studies on employee
satisfaction and engagement (EES). This light has provided bank leaders with the
necessary information to make appropriate human resource management policies.
 Team requirements
In a team there will be a number of requirements such as maintaining teamwork,
keeping people together, having disciplines and standards to follow, having appropriate
ways of communication, having training sessions. . An organization needs to have
different groups and duties, so the leader needs to have the knowledge and ability to work
in groups. Each individual in the organization has his own capabilities, but when
individuals are combined into a team, everyone complements and motivates each other to
create innovation and thus saves time and money.

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 For the Training Center of Joint Stock Commercial Bank for Foreign Trade of
Vietnam, there were training sessions such as “Teamwork skills and risk management”
held in 2012. These training sessions are to help the staffs achieve efficiency. high in
work, this has greatly contributed to the sustainable development of VCB (Vietcombank
news, 2015).
 Employee needs
To resolve conflicts between individuals in a group, it is essential to meet the needs
of the members of a group. Leaders can take measures such as rewards, reasonable
compensation or clear punishments to reduce conflicts and keep employees under control.
To meet the needs of employees, VCB has organized many activities to promote
creativity and innovation in working style of employees such as Vietcombank Culture
Contest, Youth Thinking and Acting Competition. before the innovation, development
and integration of Vietcombank.
Not only that, to supplement leadership skills and professional staff, VCB also opens
training programs such as leadership skills training for managers and planning staff,
professional topics on auditing, credit risk, soft skills training for customer care staff.
With efforts and ingenious leadership, always caring for employees, VCB has been voted
as one of the best places to work in Vietnam by Anphabe in 2018 (Mr. Minh, 2019).

II. Different theories of management in relation to the management and

leadership activities.
Management theories revolve around the concept of management strategy,
implementation framework in organizations. However, managers will not necessarily
focus on management concepts and theories, but depending on the nature of the
workplace, personnel, leaders will combine many different ideas (Corporate Finance
Institute, n.d.).
1. Old approach

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 The classical theory is the old management method that VCB applied some time ago.
This old management focused on the development of standards to improve production.
The main driving force in classical employee management theory is compensation.
Managers who apply this old theory will motivate to increase work performance by
increasing wages or adding bonuses.

Vietcombank used this classical management theory to make production output

relatively remarkable. In 2010, VCB successfully increased its charter capital twice a
year. That has met the expectations of investors and shareholders, ensured capital
adequacy, so that they could invest in physical and technological infrastructure, in
subsidiaries, joint ventures. business. Besides, VCB is always one of the enterprises with
high average salary and employees always work well and efficiently (Annual Report,
2010).

However, this classic management style forbids listening to the opinions of

employees and consumers, and managers only focus on output, labor productivity, and
work efficiency. As a result, the company encountered some obstacles in responding to
the changing requirements of the market, not listening to what customers wanted.

2. New appoarch
Human relation theory is a new management method applied by VCB recently. At
the heart of this theory is changing the work environment to increase productivity.
Managers can change the environment by changing the working direction, choosing
better lighting, mode of rest, working time. This change focuses on the individual to
motivate employees to work for the long term. During the raging Covid-19 pandemic,
VCB continuously focused on the needs of its employees, which proves that VCB has
successfully applied the theory of human relations when inspiring employees to improve
their performance. job performance. VCB always cares about the health of employees
when organizing vaccinations for employees, using technology so that employees can
work remotely. Moreover, to create convenience and safety for customers, VCB also
conducts online transactions such as VCB Digital, VCB CashUp. Therefore, VCB was

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able to protect the safety of employees and improve business performance during the
epidemic prevention period.
III. The effectiveness of leadership and management approach
It can be seen that both management and leadership concepts talk about controlling
and influencing people, but are applied in different ways. According to VCB News
(2018), human resources are always considered an important part in creating long-term
and sustainable values. VCB encourages employees to innovate and create to contribute
values that bring great benefits to the company. Through contests and topics, VCB can
improve thinking capacity, create aspirational dedication of employees, thereby
contributing to improving VCB's operational efficiency. In general, the change in
leadership and management has helped VCB increase the cohesion between officers and
employees in the company. The needs of employees are met in a reasonable and regular
manner through salary and bonus.

Task 2:

IV. Different leadership and management styles

1. Leadership styles
1.1 Old appoarch
The autocratic style was applied by former leaders of Vietcombank in the past. All
decisions are concentrated in the hands of leaders. However, in this day and age, this
style is no longer relevant because it does not create conditions to promote innovation
and development of young workers. Therefore, the change of leadership model was
discussed thoroughly by VCB. In 2008, VCB changed its autocratic style to a new
leadership style.
1.2 New appoarch

After a change in leadership style in 2008, VCB's current leadership style is

democratic style. It means that the leader will divide his power with the subordinates,
listen to the opinions of the subordinates and together with them make decisions for the
company. That makes all plans and strategies agreed and approved by all employees.

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Moreover, when faced with challenges, departments work together to solve problems.
The application of a new leadership style has promoted the company's values in an
objective, fair and transparent manner. Moreover, the working environment also becomes
pleasant and increases the trust of all employees.

2. Organisation culture
As Vietcombank is a state-owned company, the role culture is clearly seen in VCB's
commercial activities, because in state agencies and organizations, this culture is quite
common. Role culture is used through formal rules, procedures, and job descriptions.
With a role culture, the division of work and tasks must be definitive and clear. This is
clearly reflected in the management approach and organizational structure of VCB.
Today, the task culture is applied at Vietcombank. In this culture, VCB promotes the
development of employees and their work associated with the mission. At the heart of
this culture is just the role of work leading to something more than personal financial
gain. For examples, such a product could be an improvement in business performance or
an achievement in service quality as a result of an important project completed by your
team, that means, no matter who they are, how old they are, they can contribute
significant values to the company with their experience and ability. Thus, VCB has
changed the organizational culture from being disciplined, always having to comply with
strict regulations of senior leaders.
The authority's character and individual qualities are reflected in the organization's
way of life. The organization's vision, goal, and basic qualities all effect the
organization's images, language, direct, and correspondence, which thus shape the
images, language, conduct, and correspondence. On the off chance that correspondence
among pioneers and their workers improves, they will actually want to more readily pass
on their thoughts and characters. The ongoing head of VCB looks to further develop
correspondence and contact with his group to stay with the's tasks working without a
hitch. Besides, in light of the fact that VCB has been laid out for such a long time, the

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festivals have taken on a more prominent importance than before. The festivals have
acquired in significance as VCB has developed.
Contingent upon the monetary setting and the elements of the firm, unique
administration and the executive procedures have shifting results. As recently said,
imperious strategies are valuable in the midst of emergency, especially when a chief or
pioneer needs to settle on quick decisions and anticipates total collaboration from work
force. Vietcombank utilized this system during the Covid 19 plague and had a great deal
of progress.
At the point when the pandemic broke out, the interest for online administrations
expanded, prompting major areas of strength for a for computerized change and
Vietcombank was one of the associations fit for expecting and satisfying this need. Be
that as it may, when the pandemic gives indications of balancing out, Vietcombank needs
to change its authority approach in like manner. That is when different strategies like
Participative Leadership, Transactional Leadership and Transformational Leadership
become more pertinent. Contingent upon the objectives of each stage, the utilization of
individual or joined administration strategies will bring the best outcomes. To start with,
these strategies assist with expanding representative fulfillment. From that point,
representatives will want to add to the association more. During the adjustment stage, the
pioneer will have a lot of opportunity to share, motivate, and guide representatives.
Around then, workers are both spurred and have the ability and information base to serve
the organization's shared objectives.
The free enterprise, or delegative technique, then again, is just reasonable for specific
kinds of organizations and certain representatives. Albeit this technique advances
development and innovativeness from workers and makes the most of experienced
representatives, it likewise makes many adverse consequences. The most conspicuous is
the association's decentralization will be indistinct, assuming everybody is the leader,
who will follow. Without severe control, the association applying free enterprise might
fall because of its own advancement and imagination. Be that as it may, it is appropriate
for specific organizations like retailing, where the things and responsibility is

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excessively. Representatives are expected to have the option to pursue choices for
themselves inside specific cutoff points to guarantee work effectiveness. The financial
business isn't appropriate for this methodology because of multiple factors. To begin
with, Vietcombank's functioning cycles have been normalized, representatives just have
to follow. Besides, all emerging issues are connected with finance, which is a perilous
field, so they all need the endorsement of their bosses. On the off chance that this strategy
is applied at Vietcombank, it might build the terrible obligation proportion and decrease
functional effectiveness.
V. The factors that influence the development of the culture

The variety of descriptions available show that organizational culture may mean a lot
of different things to different individuals. Organizational culture, on the other hand, is
widely agreed to be made up of shared ideas and underlying assumptions, and that it
shows itself through organizational 'practices.' Organizational practices include symbols,
rituals, norms, conduct standards, heroes, tales, language, routines, and power structures
(Mullins, 2005). According to the authors, it emerges as a result of the organization's
efforts to address internal integration and external adaption issues (Schein, 1985).

Vietcombank has formed into a bank that isn't areas of strength for just numerous
perspectives, lofty and present day, close and sharing; yet additionally a culture, a method
of Vietcombank with its own qualities, a character, a Vietcombank culture with entirely
important qualities: Trust, Standards, Ready to innovation, Sustainability, and Humanity.
Vietcombank's particular upper hand is its ability to stay sure about the substance of
difficulty and remain solidly on the way to progress.

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 1. Organization structure

Vietcombank organizational structure

Currently, there are more than 14,000 employees working at VCB, more than 400
branches and representative offices at home and abroad. Moreover, VCB's Autobank
system with 2100 ATMs and 49 500 points can make card payments across the country.
And yet, there are more than 1800 agents in more than 150 countries and regions
operating.
2. Logo

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 Green is the color of VCB's logo, which represents natural strength, development,
and the desire to reach out and flourish. The letter V is thought to represent not just
Vietcombank, but also the spirit of perseverance in achieving achievement (Victory).
The stylised usage of the heart design by VCB to symbolize the belief that comes
from the heart for Vietcombank's growth is amazing. It also symbolizes Vietcombank's
six essential brand attributes: creativity, continuous development, thoughtfulness,
devotion, wide connectivity, diversity, safety, and security.
3. History

The Foreign Exchange Bureau established JSC Bank for Foreign Trade of Vietnam,
previously known as Bank for Foreign Trade of Vietnam, on April 1, 1963. (Vietnamese
State Bank) Following the successful completion of the equitization plan through a first
equity sale, the Joint Stock Commercial Bank for Foreign Trade of Vietnam, the
country's major state commercial bank, formally began the privatization process on June
2, 2008. (This is an initial public offering.) Vietcombank (ticker symbol: VCB) was
formally listed on the Ho Chi Minh City Stock Exchange on June 30, 2009.
(Vietcombank.com.vn). Vietcombank started as an unfamiliar exchange expert bank and
has since developed into a multi-area bank, offering clients a wide scope of driving
monetary administrations in global business, including conventional administrations, for
example, capital exchanging, capital preparation, credit, project supporting, etc, as well
as present day financial fragments, for example, forex exchanging and subordinates, card
administrations, e-banking, etc.

4. Uniform
Representative uniform is a fundamental part in producing organization picture and
culture, as well as building major qualities in business, brand, and confidence according
to clients. Since regalia are essential for the "surface layer" culture, which is a "brand
name" viewpoint that permits organizations to effectively showcase, foster their own
character, and produce customs and brand pictures. Clearly, putting resources into
representative outfits is a helpful venture since staff regalia are the most impressive and

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persuading brand showcasing instruments. That, yet garbs bring the aggregate staff nearer
together; by wearing a similar shirt, a similar outfit, the staff will presently not be
isolated; everybody will be more well disposed and bound together, which will increment
work productivity. Vietcombank officials' customary outfits are adapted, with male
laborers wearing a shirt and relaxed slacks and female representatives wearing a dark
vest, shirt, skirt, or jeans. As per a HR delegate, bank staff can commonly change their
clothing to fit the circumstance, however they should keep up with mystery and mutual
respect (Vietcombank site).
5. Performance
The image of Vietcombank is shaped not only by the bank's reputation and the
quality of its products and services, but also by the bank's professional working style. To
do this, Vietcombank representatives should adhere to a set of principles and behavior
norms in all of their actions. It is the standard in terms of appearance and appearance, as
well as in terms of job care and behaviour. Banking is a trendy help business, therefore
each individual's image and appearance are always important factors in the quality of
services provided to clients and partners. Since a result, Vietcombank employees must
ensure that their words and demeanor are consistent with the value of Vietcombank's
image and brand, as they are a reflection of the company. Banking is regarded as a risky
business, hence Vietcombank employees must adhere to all essential legal rules as well as
internal bank policies. To function effectively, each representative must be aware of their
responsibilities and location within the Vietcombank system. Furthermore, consideration
for the purpose of correspondence, as well as a sensitive and courteous demeanor, are
standards that Vietcombank faculty should develop and implement in order to achieve
outstanding working outcomes.
Leadership, it tends to be contended, plays a critical impact and is one of the
perspectives affecting corporate culture. Since when an organization's initiative changes,
the organization's corporate culture changes too. One of the "negative" effects on
hierarchical culture is when CEOs discuss severely with their staff. Subsequently, firms
should ensure that all degrees of the board, from the least to the most noteworthy, keep in

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touch with workers to convey the organization's vision, heading, and objectives. For the
last part, corporate culture is a "immaterial resource" that fundamentally affects the
organization's drawn out progress.

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