Professional Documents
Culture Documents
ASM 1 - 5035 - Do Thi Thu Huong - BH01229
ASM 1 - 5035 - Do Thi Thu Huong - BH01229
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III. ANALYZE THE INDUSTRY CHARACTERISTICS OF VP BANK AND THE MASS HRM STRATEGY OF VP
BANK ................................................................................................................................................... 5
References ........................................................................................................................................ 19
I. INTRODUCTION
Today there are many businesses operating in many different industries globally, but
HRM is one of the essential departments in businesses, and people play an important
role in the sustainable development of a business enterprise. That is the reason human
resource management was born to manage and train issues related to people to create
core values of the business. In this research paper, as a human resources consultant for
VP Bank, I will help the company attract talent and make the best choices. As well as
Vietnam Prosperity Joint Stock Commercial Bank (VPBank) is one of the largest and
prestigious banks in Vietnam, established in 1993 with the first name of Joint Stock
operation and development, VPBank has become one of the leading financial units in
Vietnam. VP Bank provides diverse financial products and services, including: savings
deposits, personal and corporate credit, credit card services, stock investment, asset
In addition, Vietnam Prosperity Joint Stock Commercial Bank is also known for its VPBank
Platinum credit card program, which is considered one of the best credit card programs
in Vietnam. With many efforts in the process of building and developing VPBank is
considered one of the banks with impressive growth rate and top service quality in
2.3 Vision
To become a bank with a solid position in the Top 3 largest banks in Vietnam and in the
Top 100 largest banks in Asia, contributing to promoting the sustainable development
bank with a solid position in the Top 3 largest banks in Vietnam and reach the scale of
the Top 100 largest banks in Asia . Building a multi-functional bank, leading in
solutions with the synergy of the ecosystem and application of advanced technology.
Besides, VPBank announced 5 new Core Values. This new core value system is developed
based on the inheritance of values and qualities that have formed VPBank's identity over
the years, while adding new spirits and values for us to continue to maintain sustainable
growth for VPBank. The 5 new core values include: Aspiration, Integrity, Efficiency,
III. ANALYZE THE INDUSTRY CHARACTERISTICS OF VP BANK AND THE MASS HRM
STRATEGY OF VP BANK
successful strategy for an organization can be evaluated and developed using a variety of
methods. In this section, Porter's 5 forces model is used to identify the necessary
strategies of VPBank to regain and maintain its position in the Vietnamese banking
industry.
a) Barriers to entry
There are a number of obstacles that new businesses must overcome in the banking
capital to establish and operate a business. The new business needs to be able to raise
capital from investors, banks or other financial institutions to meet the capital
Regulation and compliance: The banking industry has many complex and stringent legal
regulations to ensure the safety and reliability of the financial system. New businesses
must master regulations related to capital, risk management, information security, anti-
money laundering and comply with reporting and internal management requirements.
Build trust and customers: New businesses must build trust and reputation with
customers through providing quality, reliable financial services and properly protecting
transformation are changing the way the banking industry operates. New businesses
need to invest in advanced technology to provide online, secure and convenient financial
services. They also need to be able to adapt to change and skillfully use technology to
This includes having a management team with experience and in-depth knowledge of the
banking industry, the ability to assess and manage risks, and a strong grasp of internal
financial needs. Finding and raising capital from investors or financial partners can be a
significant challenge.
Regulations and legalities: The banking sector has many complex legal regulations.
agreements to cancel taxes and fees, ownership rights and other binding procedures.
banks. The important factor here is the number and strength of competitors, as well as
the ability to compete in terms of products, services, and scale. VPBank needs to
evaluate how many other banks operate in the same market and their competitiveness.
About competitors VPbank competes with 2 large banks such as MB, Techcombank.... MB
is one of the leading joint stock commercial banks in Vietnam. In the group of joint stock
commercial banks, MB continues to lead in terms of total assets with 806,238 billion
VND, an increase of 10.7% compared to the end of last year. Techcombank is one of the
largest banks in Vietnam, total bank assets have increased to 732,470 billion VND. TCB is
currently managing more than 300 trillion in customer assets, accounting for 50% of the
market share of high-income customers. Banks' competition with VPBank can affect both
foreign and domestic banks. Foreign banks can compete on new and innovative products
and services to attract customers. Furthermore, foreign banks often have financial
potential and the ability to invest in advanced technology. This could create a
such as e-wallets, mobile payments, and personal financial management through mobile
applications. These fintech companies often provide faster, more convenient and
cheaper services than traditional banks, and can therefore compete directly with VPBank
products. For corporate customers, the risk of being replaced by the bank is not very
high because these customers need clarity as well as evidence and invoices in the bank's
product and service packages. If problems occur while using products or services, this
type of customer often switches to another bank for those reasons and will seek out non-
bank services. For consumer customers, it is different. The habit of using cash is created
for Vietnamese consumers to often keep cash at home or, if they have an account,
withdraw it all to use when they have money. Government agencies and businesses pay
shareholders who provide capital, businesses, companies and customers for the bank to
operate, or companies responsible for the system or maintenance of ATMs, or they can
also provide software, hardware, services and infrastructure are also important.
Currently in Vietnam, banks often invest in their own equipment and choose their own
suppliers as they cannot supply a large market but have to compete with other suppliers.
Accordingly, the bank signed a contract with the second largest bank in Japan (Sumitomo
evaluate suppliers' negotiating capacity to ensure stable supply and reasonable costs.
ensuring everyone can use the best bank services. For each segment, buyer power is
different. Customers will have the ability to negotiate and offer many options for banking
constantly improve and innovate to meet and exceed customer expectations. The bank
provide exceptional products and services to maintain a competitive edge in the market.
open environment, with "high quality", friendly, and supportive colleagues and
advancement with the Bank while also enjoying competitive and attractive welfare
policies. Closing the year 2022, the year of restarting the modern economy .During the
pandemic, VPBank recorded outstanding business results, with an increase Significant
growth in total assets, deposit mobilization, profits... Achieving this positive result is due
to many factors, but people are one of the important links best. Even the human
foundation is considered resilience for VPBank to have today's successes into one of the
largest private banks in VietnamNam, ranked 11th in the Top 50 most valuable brands
Vietnam 2022.
VPBank employees are not only guaranteed salaries and short-term bonuses, but also
long-term bonuses. In 2022, salaries for employees will be reviewed and adjusted to be
about 30% higher than the market average. Not only that, preferential loan interest rate
programs; Welfare programs, such as holiday and hospitality gifts, senior benefit
packages for managers, or programs to improve physical and mental health to increase
the value of happiness in the workplace job; The bank's policy of recognizing employee
encourage employees to do their best work more productively and effectively. The
process by which VPBank ensures to find the right person, for the right job, at the right
time includes:
Recruitment and selection: is organized according to the goals and requirements of the
bank's business development strategy and annual plan. VPBank's recruitment principle is
public announcement to ensure fairness, equal opportunities for all candidates and
Regarding recruitment method, candidates will be recruited and interviewed directly with
the Human Resources Department or interviewed online via Microsoft Team. VPBank has
Recruitment information is displayed through the bank's website and on mass media
such as "Top CV", "Vieclam24h"... The website will provide full information about
positions recruitment and social welfare help potential external candidates gain more
Training and development: Training is a program that helps employees learn specific
knowledge or skills needed to improve their current job performance. For VPBank, talent
is the most valuable asset, a core value that helps create difference and sustainable
activities are always consolidated and refined with the orientation of making VPBank an
VPBank is one of the emerging joint stock commercial banks in investing in building and
improving the E-learning training system, building a capacity framework and training
program for each position, and developing internal capacity. in teaching, innovating
teaching and learning methods, enhancing student experience, and building an active
implemented many training programs. The programs have rich content and diverse
learning formats (face-to-face, online and combined - Learning Hybrid). With large
investment from the bank, the ILEAD 2022 program has become one of VPBank's
prestigious training brands, leaving many good impressions and great influence
throughout the bank. Each year, VPBank organizes the Mandatory Training Program in
two official periods and one additional period to ensure completeness. During the past
time, especially in 2022, VPBank has continued to develop and deploy programs to
attract and retain talents, such as the CR (Critical Roles) program for key positions of the
bank, succession planning program (SP), VPBank Potential Manager program -VPBank
Gennext (VPG)... Competitive and fair rewards and remuneration policies are
implemented. Not only that, at VPBank, employees are always trusted and created with
conditions so that each individual can develop their abilities and capabilities, thereby
contributing and contributing their best to the bank. Talking about training programs at
VPBank, the training program for mid-level leaders called iLEAD was launched at the end
of 2019. In coordination with reputable partners in the market and the implementation
team Extremely dedicated, the iLEAD training program is carefully designed, in-depth and
highly practical. Students are selected from many different units and accompany each
other on a 6-month learning journey. The program has attracted hundreds of employees
Reward policy: The reward regime in an enterprise is the process of taking care of the
achieving the goals of the enterprise. VPBank focuses on building a management culture
based on capacity. The new salary structure based on job position and performance is
linked loan program, VPBank Care insurance for employees and relatives, flexible
Evaluate job performance: Currently, banks are interested in evaluating the work
performance of officers, employees, and workers using many different tools, criteria and
Prosperity Joint Stock Commercial Bank (VPBank), has assigned targets to each branch
according to capacity. The Board of Directors and management meet to agree and assign
targets to each employee. Based on assigned targets and combined with the job
evaluation process consisting of 05 steps: (i) Employees fill in their own job information
according to the bank's job evaluation form; (ii) Direct managers conduct evaluation,
grading and scoring; (iii) The Board of Directors re-evaluates based on the results that
direct managers evaluate; (iv) Depending on level, employees will have a superior
manager confirm the evaluation results and give the final results; (v) Notify evaluation
boards every three months as a basis for calculating salaries and bonuses for employee
achievements. Through the results of job performance evaluation, the bank has a better
risk management activities is one of the top goals in VPBank's 5-year strategic period
2018-2022. From the early days of implementing Basel, VPBank has focused on
calculating risk metrics, controlling risk appetite and report case. A centralized data
model has been built with data extracted - transmitted - processed from the bank's raw
IFRS 9 or related standards. For many years, VPBank has successfully built a large set of
models applied to key customer segments and also at the product level along the entire
customer credit life cycle, from the beginning of applying for a loan. time to stop using
the service. Models have helped banks make more effective credit decisions in selecting
customers, especially during the epidemic period with prudent credit policies. VPBank
currently owns one of the most modern debt collection centers and is equipped with the
costs as well as improve customer experience. Recognized with prestigious awards and
the bank's financial services and products to digital channels, even customer care
services. Currently, 100% of VPBank's products and services can be provided through
digital channels for better customer experience. For individual customers or small and
VPBank NEO and VPBank NEOBiz has become much simpler and faster thanks to the
As one of the pioneering banks, leading in digital transformation, VPBank has achieved
significant achievements such as: Excellent digital bank for small and medium
enterprises in Vietnam in 2022 from Global Banking & Finance Review . Previously,
VPBank for the 4th consecutive year (2018 - 2021) was named in the list of "Outstanding
digital transformation banks" awarded by the International Data Group (IDG) under the
efficiently, increases labor productivity, not only that, digital transformation allows
flexible space and time. Bank employees are also customers to whom the human
resources department provides services. Digital transformation also gives them better
information, salary, benefits, and records anytime, anywhere. Instead of the traditional
the digitalization process takes place almost instantly and employees also benefit from
advanced HR services. Digital transformation provides VPbank with online tools and
platforms to promote vacancies and attract applied talent. Banks can use recruitment
recruitment and selection process to help increase the ability to find and attract qualified
and skilled employees. matches job requirements. Effective job evaluation: Allows
VPbank to apply online performance management tools and software to evaluate and
learning and development initiatives. VPBank has leveraged e-learning platforms, virtual
no matter where they are. This allows employees to continuously learn, upskill and reskill
employees may be ready to fill the vacancies your business needs. Banks can rely on
personal profiles, where each employee has the most basic and detailed information
such as: educational level, professional experience, and certain strengths. From there,
the bank can select suitable candidates. VPBank can also recruit through websites,
candidates or can participate in job search festivals and can also make connections.
Collaborate with the job introduction center to contribute to enriching your resources.
other words, if you want potential employees to think highly of your organization, it must
in fact be a great place to work. Listening to your company's employees is the best
method to determine how strong your company's culture is. Find out specifically what
they like most about working for VPbank and what they believe sets VPbank apart from
missionaries are always in demand with top candidates. Establishing a strong team of
employees that represents the corporate brand is very important. Candidates may be
impressed with the company brand, but ultimately, they need to be attracted to the
talented people they will be working with. Not all VPbank employees are perfect
recruiters, but they will become true Brand Ambassadors. Therefore, the employee
advocacy marketing campaign was born to build the Employer Brand. This includes
nurturing and encouraging employees to become trusted advocates of the image and
performance or handing out items valuable for brand image. For example, give an
employee a water bottle with the company logo for their birthday and post it to their
story. This is definitely one of the best ways to spread information about VPbank
5.3 Onbording
VPBank, with a modern technology foundation and strong financial potential, has been
determination to build VPBank into a leading commercial bank head. However, if you
want to have "expensive" and competitive human resources, you must consider human
resources as the core element and valuable asset of the bank. Therefore, human
resources policies need to be developed with the goal of turning human resources into
VPBank's leading competitive advantage. This human resource policy needs to put the
relationship between the bank and employees at the center of the policy, with the
highest goal being that VPBank's development always goes hand in hand with job
First, VPBank can enhance the building and promotion of its employer brand. This may
include creating a positive image of the bank, work culture, development opportunities
and benefits of employment at VPBank. Spreading the word about your commitment to
and maintain close relationships with prestigious universities and training organizations.
Provide opportunities for advancement - attractive management: VPBank can ensure the
recruitment process is designed to create a positive experience for candidates. All levels
work. All levels of management have access to special learning opportunities that can
help employeesadvance their careers and better themselves. May include providing
their abilities and potential through exercises or interviews, and maintaining good
firms, making full payment for work-relatedamenities like lunches, parking, travel
expenses, and other perks is a crucial consideration. This makes them more loyal
employeesand shows that the company is always in their best interests. In the context of
a complicated epidemic, VPBank has promptly had policy solutions to take care of the
lives and well-being of officers and employees through COVID-19 vaccination programs;
VI. CONCLUSION
In summary, this research proves that human resource management plays an extremely
important role in the organization of VPBank. Human resources are very important for
VPBank's operations, especially when the bank has a strong workforce. Huge global
dynamic of managers and employees. For businesses to operate effectively, the right
human resources strategy and digital transformation applications will be the golden keys
to help VPBank open successfully. Through the process from building recruitment
branding to rewards, VPBank deserves to be among the top most valuable banks in the
world.
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