1

INTRODUCTION............................................................................................................................2
MAJOR FINDINGS.........................................................................................................................2
Organizational Structure.............................................................................................................3

I. Hyundai Thanh Cong’s culture, power and politics.............................................................3

1. Hyundai Thanh Cong’s culture:...........................................................................................3

a. Schein’s Model..................................................................................................................4
 Artifacts.............................................................................................................................4

 Espoused Values...............................................................................................................5

 Underlying Assumptions..................................................................................................6

b. Handy’s Model..................................................................................................................6
2. Hyundai Thanh Cong’s power.............................................................................................8

 Power Bases.......................................................................................................................8
 Power Tactics..................................................................................................................10
3. Hyundai Thanh Cong’s politics:.........................................................................................11

II. Relationship between culture, politics and power...............................................................11

III. Recommendations..........................................................................................................12
CONCLUSION...............................................................................................................................12
References...........................................................................................................................................13

INTRODUCTION
The organizational behavior of Hyundai Thanh Cong, including cultural behavior, power and
political conduct, etc., will be examined in this paper, as well as how these behaviors impact the
productivity of their personnel. Additionally, suggestions are made regarding how Hyundai Thanh
Cong should improve employee performance to meet objectives.

MAJOR FINDINGS
Since its establishment in June 2009, Hyundai Thanh Cong Vietnam Automobile Joint Stock
Company (HTC) has served as the nation's exclusive Hyundai car dealer. To give customers the
maximum level of satisfaction, Hyundai Thanh Cong always endeavors to create new products and
specialized services. The company's major goal is to become Vietnam's most popular car brand. By
2023, Hyundai Thanh Cong wants to have the largest market share in the country. Hyundai Thanh
Cong is constantly putting together a group of energetic, creative, and ambitious individuals for the
sake of our joint progress. A further priority for the company has always been finding a balance

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 between its interests and the interests of the broader society. International integration and sustained
local economic growth. In order to position the Vietnamese automotive industry domestically and
internationally, Hyundai Thanh Cong intends to make significant contributions to society with an
emphasis on sustainable development. The goal of Hyundai Thanh Cong is to dominate the auto
industry, in line with Hyundai's global operating philosophy of "New Thinking - New Capabilities."
The long-term growth plan for Vietnam recognizes Hyundai Thanh Cong as a vehicle manufacturer
that also delivers value for customers and the community (About Hyundai Thanh Cong, 2021).

 Organizational Structure

The diagram below shows Hyundai Thanh Cong's organizational structure:

CEO Le Ngoc
Duc

HUMAN
BUSINESS ACCOUNTING SERVICE
RESOURCES
DEPARTMENT DEPARTMENT DEPARTMENT
DEPARTMENT

Customer
Sales manager 1 Sales manager 2 Chief Marketing
HR Manager service
Accountant Manager
Manager

Sales Team Sales Team

Leader 1 General Customer
Leader 2 HR staff Marketer
Accountant service staff

Sales consultant Sales consultant

Tax Accountant

Figure 1. The organizational chart of Hyundai Thanh Cong (About Hyundai Thanh Cong, 2021).

I. Hyundai Thanh Cong’s culture, power and politics

1. Hyundai Thanh Cong’s culture:

Culture may be characterized as "a system of attitudes, beliefs, and knowledge that is broadly shared
throughout a community" or "the communal programming of the mind" (Hofstede, 1983). The
collection of values, rules, and traditions that all team members must uphold is referred to as
organizational culture (Schein, 1980). A company culture is a collection of shared principles that its

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employees support and employ to distinguish the company from others in its industry (Rafaeli,
2013). the framework of shared values, beliefs, and actions that develops inside a group of
individuals and governs their conduct (Denison, 1991). Hyundai Thanh Cong's culture is an example
of the distinctive pre-established policies that provide people direction and guidance. It is a complex
system that governs how individuals act inside the organization and consists of typical presumptions,
attitudes, and beliefs. These underlying assumptions, convictions, and aspirations have an impact on
the unique and specific psychological and social environment. This study explores the culture of
Hyundai Thanh Cong in relation to Schein's and Handy's cultural models.

a. Schein’s Model

Businesses don't generate a culture overnight, according to Edgar Schein (1984), but rather through
time as staff people go through various changes, adapt to their circumstances, and resolve problems.
They take the lessons they've learned from their past experiences and start applying them on a
regular basis, which helps to mold the workplace culture. The new employees put a lot of effort into
assimilating into the new culture and leading stress-free lifestyles. With a focus on learning and
group dynamics, Schein's Model provides a framework for analyzing how corporate culture affects
an organization. Organization culture may be divided into three categories, from the most overt to the
least, according to Schein’s Model (1984). Artefacts will be at the outermost, Espoused Values will
be in the center, and Basic Assumptions will be at the innermost. The culture of Hyundai Thanh
Cong is its greatest strength and can be examined on three different levels:

 Artifacts

- Logo

After officially entering into a joint venture on March 19, 2021, Hyundai Thanh Cong and Hyundai
Motor Group have agreed on a new brand identity for the Hyundai Thanh Cong Joint Venture. To
ensure that the new brand identity is synchronized, unified and professional, the new set of brand
identity regulations has been detailed and officially promulgated in July 2021, based on the new
brand identity regulations. standards according to the latest Brand Identity issued by Hyundai Motor
Corporation (About Hyundai Thanh Cong, 2021).

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The Hyundai logo design looks quite simple with the letter "H" lying at 45 degrees. Even so, the
letter “H” in the Hyundai Logo is not merely the first letter of the word Hyundai. The letter H is the
symbol of two people bowing and shaking hands, and those two people are the customer and the
employer, showing mutual respect and trust from both sides.

The letter "H" is designed to lean to the right to convey the message of always actively moving
forward to succeed. The whole thing is located in an oval shape, showing the globality of the
Hyundai Group's vision to reach out to the world.

The lines in the Hyundai logo are designed to be slim, flexible and luxurious. Moreover, the blue
color of the logo and the red color of Hyundai Thanh Cong’s brand name also help the brand become
more friendly and attractive to customers.

The overall Hyundai logo is the iconic image of the steering wheel. A sign to easily identify what
business the brand belongs to. The Hyundai logo is designed in balance and harmony, each detail
contains a deep meaning, creating an impression on customers of trendy youthfulness and trend of
the times (About Hyundai Thanh Cong, 2021).

- Ceremonies
Hyundai Thanh Cong has always actively responded by taking part in volunteer initiatives that have
a significant impact on the neighborhood and society, like constructing a facility to care for women
and children and investing in cutting-edge machinery to give women and children access to a variety
of career opportunities and a beautiful life. Additionally, HTC constructed kindergartens in the
villages of Oi and Son La. Employees of HTC give funds to assist the school and fund the
construction of the Automotive Technology and Industrial Construction Safety workshop, which will
provide training and employment opportunities for thousands of underprivileged kids. (About
Hyundai Thanh Cong, 2021).

 Espoused Values

Espoused values are values that are expressed on behalf of the organization or attributed to an
organization by its senior managers in public statements such as in the firm's annual reports. Hyundai
Thanh Cong brand with a long history of formation and development is always a reliable choice for
customers worldwide thanks to its prestige, product quality, and after-sales service. Therefore, the
company always appreciates and pays special attention to the Vietnamese market with a series of
investment and cooperation activities for a long time. To achieve those objectives and aspirations,
Hyundai Thanh Cong's vision are to satisfy consumers, provide lucrative economic value for

5
shareholders, contribute to societal advancement, and safeguard and conserve the environment for
future generations (About Hyundai Thanh Cong, 2021).

 Underlying Assumptions

One of the most important aspects of organization culture is underlying assumptions. They could be
deeply embedded in the industry and difficult to spot via actions taken outside the company. It is
reasonable to conclude that traditional Vietnamese culture has had a significant impact on Hyundai
Thanh Cong's corporate culture. One cultural element that the company has incorporated is the
culture of people, specifically beginning with a customer center, resolute to realize challenging and
ambitious goals by a connected team, professional people, and bringing Vietnamese values to global
integration. Hyundai Thanh Cong has consistently worked to provide consumers with the greatest
levels of satisfaction.

Furthermore, Vietnamese organizations, including Hyundai Thanh Cong, place a high priority on
stability and avoiding disputes in business partnerships. All of Hyundai Thanh Cong's employees
consistently have a strong feeling of internal unity, are honest yet sincere, and are close and kind to
one another. The company's work culture has been in place since the beginning and has helped it
grow into the successful business as it is presently. Thanks to that, Hyundai Thanh Cong has
achieved great achievements when setting a sales record, constantly increasing its market share in
passenger cars.

Moreover, the culture of Hyundai Thanh Cong is also promoting progress, and actively participating
in community activities. social community. With the operation of passenger car assembly workshops
and sales agents nationwide, HTC brings jobs to thousands of workers (About Hyundai Thanh Cong,
2021). Due to a robust corporate culture that supports sustainable development and the "Customer-
centric" strategy, Hyundai Thanh Cong not only provides customers with high-quality commercial
vehicles, but they also give the finest services through customer care programs and helpful
promotions.

With the great achievements that Hyundai Thanh Cong strives to build and achieve, Hyundai Motor
Group decided to choose Thanh Cong Group as the only partner in the region to cooperate in joint
venture production and assembly of vehicles. tourism since March 2017 and continues to be the
commercial field under the Hyundai brand since September 2017. Since then, Hyundai Thanh Cong
is the only unit in Vietnam that manufactures, assembles, and distributes all Hyundai-branded
vehicles.

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 b. Handy’s Model

The success of a company in the market is significantly influenced by its organizational culture
(Christiansen, et.al, 2017). Handy's Model, based on two dimensions, looked at the distribution of
power and the particular levels of collaboration. In this model, the x-axis denotes the degree of
cooperation from low to high, or "Formalization," while the y-axis denotes the distribution of power
from low to high, or "Centralization." The four distinct organizational cultures that result from varied
combinations are Power Culture, Role Culture, Task Culture, and Person Culture. (Handy, 1999).
Based on two variables, Centralization and Formalization, this model is used to categorize Hyundai
Thanh Cong’s cultures.

A hierarchy of positions is used to organize the Hyundai Thanh Cong Company, with the general
director holding the position of highest authority. Below that, the business is divided into 4 major
divisions, each of which has a manager and a department head in charge of the job. According to an
employee interview at Hyundai Thanh Cong, the CEO of the business has decision-makers who have
an impact on the company's development and allocate important tasks to the departments. The duties
are then divided up into positions appropriate for each department (Nguyen, 2022). At Hyundai
Thanh Cong, official policies and processes are well developed, and the organizational structure is
clearly defined, ensuring that management and staff are both aware of their obligations and
scrupulously uphold them. Concluding all the information collected by Hyundai Thanh Cong, it is
clear that the company is applying Role Culture, which, in accordance with Handy's model, has a
high level of Formalization and Centralization.
CENTRALIZATION
High Low
Role Culture Task Culture
High
FORMALIZATION

Power Culture Person Culture

Low

Role culture refers to each person's implicit role inside an organization (Altaf, 2011). Employees at
Hyundai Thanh Cong are free to use their talents for better results thanks to this culture. Based on

7
their skills and talents, people are chosen for various tasks. However, it is crucial to remember that
the senior management team that oversees Hyundai Thanh Cong is one of the strong foundations that
constitute the role culture.

The virtue of the Role culture is that it frequently allows expertise to take precedence over authority.
In a similar vein, not every manager posses the qualifications to carry out a certain task. Role culture
therefore gives employees the opportunity to exercise and feel some amount of control at work. It
makes it possible for Hyundai Thanh Cong to do their vital tasks.

The organization suffers as a result of the Role culture while selecting people to handle various
duties. If the management exhibits even a small degree of prejudice throughout the selection process,
there is a possibility of failure. In organizations that use role culture such as HTC, the failure was
probably caused by a poor selection criterion.

2. Hyundai Thanh Cong’s power

 Power Bases

Where the concept of power derives its ultimate significance is in the two powerful bases of power.
The authority that comes from a person's unique traits is known as Personal power. These are the
most effective since personal power is influenced by individual skills, traits, and knowledge. The
authority that stems from a person's station inside an institution is known as Positional power
(Eatough, 2021).

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 Figure 2. Types of Power (Eatough, 2021).

Le Ngoc Duc, the CEO of Hyundai Thanh Cong, occupies the top position within Hyundai Thanh
Cong, which gives him Legitimate Power. He is in charge of setting up the entire financial system,
approving personnel appointment choices, organizing the workforce, and raising regular pay and
allowances. Before being implemented, all new initiatives, services, and products must be reviewed,
evaluated, and approved by Mr. Duc.

Mr. Duc has several benefits for the job of Director in terms of influence over his staff, and someone
in a high-power position is more likely to have a better awareness of the system they are in.
Furthermore, it is generally accepted that direct reporters should approach authoritative persons with
unwavering respect. The order is preserved in this way. It also implies that those in positions of
leadership very seldom need to worry about their orders not being followed. Unfortunately, it can be
difficult to stop using electricity improperly, and it is easy to do so. Anyone looking to work
constructively with legitimate authority should be prepared for moral confrontation. In order to run
the company more successfully and cultivate good connections with personnel, Mr. Duc must
practice restraint and refrain from misusing his position of authority.

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In addition, Reward Power is also applied in Hyundai Thanh Cong. Reward Power is the term used
to describe the rewards and incentives offered for the goals of the organization's compliance and
obedience. It is a leadership tactic used to make the most of employees' talents by rewarding them
with remuneration, bonuses, incentives, a raise in pay, or additional vacation time. The benefits are
provided to encourage employees to work more diligently and effectively. It renews the vitality and
efficacy of the performance. The output of the staff is increased. For instance, Mr. Hung, a member
of the operation team, claimed that the boss may provide him a bonus if he achieved the KPI goal for
the month (Nguyen, 2022). Additionally, once the business exceeds expectations and generates
significant revenue, all personnel frequently go out to parties or take vacations. Giving employees the
ability to choose their own rewards can improve their pleasure and contentment but also decrease
their motivation and encouragement. On the other hand, financial incentives in the form of reward
power could end up being ineffective over time. As incentives become more readily available right
away, motivation may suffer. The effectiveness of the organization's goals and objectives will be
impacted by this.

Hyundai Thanh Cong also makes use of Personal Power, more especially Expert Power, in addition
to various Positional Powers. According to an interview with a Hyundai Thanh Cong employee, the
direct manager is Ms. Nguyen Mai Linh, an HTC executive and HR professional with specialized
knowledge. excellent and consistently make the correct choices. Owners of Expert Power like Ms.
Linh may win the respect and loyalty of their coworkers and other employees at work (Nguyen,
2022). As a result, there may be less conflict inside the firm and more performance, which leads to
positive outcomes. Expert power may be a double-edged sword since it erodes when you impart your
knowledge to others. Similar to this, if other team members develop their talents, your expert
authority may decline as the expertise gap closes. Because of this, it encourages managers to remain
be open to hearing what others have to say, even if they are recognized as authorities in their
industry.

 Power Tactics

People use these tactics to transform their power bases into actionable decisions:

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 Figure 3. 9 Influence tactics (McKinsey & Company, 2013)

At Hyundai Thanh Cong, the most commonly used type of strategy is Rational Persuasion. This
tactic is applied in both managerial and subordinate relationships. Employees must specifically
demonstrate rationale and efficacy while presenting a new concept or approach to the management.
On the other hand, if a management wishes to implement new policies, guidelines, or plans, they
must make sure that their staff members fully understand them.

In order to perform his tasks and prevent having an adverse effect on the company's employees, Mr.
Le Ngoc Duc, CEO of Hyundai Thanh Cong, must constantly uphold the company's ideals and
discipline. Each person's task. should prioritize corporate and group interests before individual ones.
The correct working approach is thus required, and the factory's management must constantly be at
the top of their game. To free up time to unwind with his family, Mr. Duc constantly sets a deadline
for his job and makes an effort to meet it. Most importantly, he pours love into all he does, which
gives him the motivation to handle pressure and stress. There is no difficulty that cannot be solved if
labor is enjoyable. The use of these power strategies fosters a polished and productive workplace in
the business. Utilizing pressure and legitimacy techniques, managers may better regulate staff
behavior and increase overall corporate productivity. Although these strategies encourage employees
to treat their work seriously, they also put them under stress and give them too many instructions,

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which can make them feel bad. Additionally, under extreme pressure, workers may object, which
might result in conflicts within the workplace and poorer work performance (Nguyen, 2022).

3. Hyundai Thanh Cong’s politics:

Any corporate organization's success is based on its policies. A business builds a collection of rules
that govern its activities through policies. Additionally, every market has a set of rules that govern
how all the participants conduct their business. Most organizations use three typical political
behaviors: coalition, reciprocity, and networking. Based on observations and personal interviews,
networking is the most popular political behavior within Hyundai Thanh Cong. A long-term,
mutually beneficial connection is what networking is all about, according to Dartey (2013). It also
involves participating in professional networks, as well as community, religious, volunteer, and
charitable organizations, as well as enhancing one's own internal visibility. As a result, employees at
Hyundai Thanh Cong strive to do an excellent job at what they do as well as cultivate positive
working relationships with their coworkers and bosses. At HTC, employees and department leaders
frequently plan informal gatherings to bring departments together. HTC's whole workforce is
consistently enthusiastic about their jobs, which helps the business run smoothly. Building these
kinds of connections, according to Ms. Linh, benefits the company since it allows employees to
support one another at work and do it in a more efficient manner (Nguyen, 2022). Employees and
coworkers as well as employees and supervisors can develop their relationships via networking. In
addition to the commercial advantages of networking, staff members may learn a ton of information
that can assist them in a variety of other ways.

Reciprocity is also seen in certain individuals within Hyundai Thanh Cong. For instance, the CEO
can ask his coworkers for assistance to fulfil his chores while he is busy, but he is then accountable
for lending a hand when they are in need in the future. Reciprocity enables people to do more
activities that they are unable to complete on their own, resulting in speedy outcomes. Employees
require social skills if they wish to interact with people within the organization. Additionally,
because networking and reciprocity only concentrate on developing connections and assisting
coworkers with their duties, it may disrupt employees' attention (Nguyen, 2022).

II. Relationship between culture, politics and power

Hyundai Thanh Cong must integrate all of the elements to build the ideal workplace if it is to be
successful. As a firm that upholds the Role culture, Hyundai Thanh Cong effectively uses its formal
powers, which helps to promote the formulation of decisions that are sustainable and easily attainable
aims and objectives. This demonstrates unequivocally that organizational culture has a significant

12
impact on power structures and strategies. Employees actively cooperate with bosses when they
utilize their legal authority in their roles. By using the Reward Power, the top management's award
will encourage employees to continue working hard and developing themselves while also enhancing
business operations. Additionally, there is a direct correlation between employee political behavior
and the corporate culture. The culture of the Hyundai Thanh Cong has long valued cooperation, faith,
and mutual aid. The company consistently promotes harmony between coworkers and between
coworkers and supervisors. Employees' political behaviors, like as Networking and Reciprocity, are
influenced by this culture.

III. Recommendations
The two reasons that HTC is now performing the best in are the culture of Hyundai Thanh Cong and
the political behavior of employees. The organization has to find ways to get over its limitations in
addition to continuing to strive to promote its assets. First, the corporation has a problem due to the
size and youth of its workforce, which is both a strength and a weakness. because they are energetic,
youthful, willing to learn, businesslike, and prepared to take on difficulties. They lack substantial job
experience, thus training and mentoring are required to help them advance their professional
credentials. A huge workforce aids the business in ensuring productivity and quality, but
management and coordination would be challenging without an organized workplace and rigid
procedures. Therefore, HTC must continually concentrate on creating a welcoming and professional
working environment with a team of disciplined and unified personnel.

CONCLUSION
In conclusion, this paper has used a variety of ideas to explain the corporate culture, political
behavior, and power of Hyundai Thanh Cong. Overall, the company fared well in all three areas. To
preserve its position and make further advancements in the future, Hyundai Thanh Cong must
address a few remaining flaws.

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