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Luận Quản trị kinh doanh: Culture comparison and culture change-case study of ABB VietNam and ABB Singapore = So sánh văn hóa doanh nghiệp và sự thay đổi văn hóa doanh nghiệp tại công ty ABB Việt Nam và công ty ABB Singapore
TÓM TẮT............................................................................................................................iv
TABLE OF CONTENT......................................................................................................vi
LIST OF TABLES..............................................................................................................ix
LIST OF FIGURES .............................................................................................................x
INTRODUCTION ...............................................................................................................1
CHAPTER 1: LITERATURE REVIEW ..........................................................................3
1.1. Definitions ..............................................................................................................3
1.1.1. Culture .............................................................................................................3
1.1.2. Organizational Culture.....................................................................................5
1.2. Cultural layers & cultural diversity ....................................................................6
1.2.1. The out layer (Explicit Products/Artifacts)......................................................8
1.2.2. The middle layer (Norms and Beliefs/Espoused Beliefs and Values) .................10
1.2.3. The core (Basic Assumptions/Underlying Assumptions)..............................11
1.3. Sub-culture...........................................................................................................15
1.4. The importance of organizational culture ........................................................15
1.4.1. Coordination ..................................................................................................16
1.4.2. Integration......................................................................................................17
1.4.3. Motivation......................................................................................................18
1.4.4. How well can organizational culture do its functions?..................................18
1.5. Culture analysis – OCAI method.......................................................................19
1.5.1. General about culture analysis methods ........................................................19
1.5.2. Advantages of OCAI method ........................................................................24
1.5.3. Dimensions in OCAI .....................................................................................25
1.5.4. Questionnaire applied in OCAI .....................................................................27
1.5.5. Scoring the OCAI ..........................................................................................28
1.5.6. What can be found from OCAI result............................................................28
1.6. Methodology applied in the thesis .....................................................................37
1.6.1. OCAI method.................................................................................................37
1.6.2. Interview method ...........................................................................................37
1.6.3. Other analysis methods..................................................................................38
1.6.4. Focused points ...............................................................................................38
CHAPTER 2: CULTURE ANALYSIS IN ABB PP DIVISIONS .................................39
2.1. Introduction about ABB Singapore and ABB Vietnam ..................................39
2.1.1. Introduction about ABB Group .....................................................................39
2.1.2. Introduction about ABB Vietnam (VNABB) and ABB Singapore (SGABB)..
.......................................................................................................................42
2.2. Organizational culture comparison between SGABB’s and VNABB’s PP
Division............................................................................................................................45
2.2.1. Different dominant cultures but same major culture types............................45
2.2.2. The current dominant culture gains cultural congruence in both countries...48
2.2.3. Differences in expected dominant culture types............................................53
2.2.4. Less cultural congruence for the expected dominant cultures & the inevitable
emergence of Clan and Adhocracy...............................................................................54
2.2.5. Diversity in expectation of employee groups ................................................58
2.3. Factors influencing organizational cultures in the two Divisions...................60
2.3.1. The vital role of standardization in ABB‟s operation....................................60
2.3.2. Market situation and market orientation in ABB Group ...............................62
2.3.3. Asian culture – a strong factor supporting for Clan Culture..........................66
2.3.4. Adhocracy Culture – an answer to the dilemmas ..........................................66
2.3.5. Business nature & the major sub-groups .......................................................66
CHAPTER 3: RECOMMENDATIONS..........................................................................68
3.1. The importance of defining culture profile.......................................................68
3.2. Culture incongruence requires leadership involvement..................................68
3.2.1. Leaders are to listen and respect the needs of employees..............................69
3.2.2. Vision the future culture to pursuit ................................................................69
3.2.3. Define the culture transformation process .....................................................70
3.3. Visioning the transformation .............................................................................70
3.3.1. ABB Vietnam – PP Division .........................................................................71
3.3.2. ABB Singapore – PP Division.......................................................................75
3.4. Operational change for the cultural change .....................................................79
3.4.1. In ABB Vietnam – PP Division.....................................................................79
3.4.2. In ABB Singapore – PP Division ..................................................................83
3.5. International cooperation and global resource utilization..............................88
CONCLUSION ..................................................................................................................91
REFERENCE.....................................................................................................................93
APPENDIX 1: VARIOUS CATEGORIES USED TO DESCRIBE CULTURE ...............97
APPENDIX 2: ENVIRONMENTAL VARIABLES AFFECTING MANAGEMENT
FUCTIONS..........................................................................................................................99
APPENDIX 3: DENISON ORGANIZATIONAL CULTURE SURVEY........................100
APPENDIX 4: QUESTIONAIRE SAMPLE ....................................................................101
APPENDIX 5: CULTURE PROFILE COMPARISION VIETNAM VS. SINGAPORE
...........................................................................................................................................105
1. Purpose
The thesis focuses on the following points:
- Base on Organizational Culture Assessment Instrument to find out the
cultural similarities and differences in the two Divisions in ABB Vietnam
and ABB Singapore in terms of dominant cultures, culture congruence,
expected dominant culture and factors that drives the needs for culture
change.
- Define predominant factors that should be taken into consideration for
culture change so as to increase business performance
- Give recommendation for cultural change including action plan for each
Division.
2. The research scope
There are two defined research scope dimensions in this thesis to distribute a
solid analysis and practical recommendation
- The factors to compare between the two Divisions are concentrated on six
categories: (1) Dominant Characteristic, (2) Leadership Style, (3)
Management of Employees, (4) Organizational Glue, (5) Strategy Emphases
and (6) Criteria of Success
- The cultural comparison units are ABB Singapore‟s and ABB Vietnam‟s
Power Product Division.
3. Methodology
- The thesis use both quantitative and qualitative analysis, mainly based on
OCAI method.
- The information is collected from diverse sources: survey, interview,
observation, secondary data…
- Details are mentioned in 2.2 Applied method in the thesis
2.1.2. Introduction about ABB Vietnam (VNABB) and ABB
Singapore (SGABB)
2.1.2.1. Establishment
Established in Vietnam in 1993, VNABB recently has more than 680 employees
working in three regions across the country to ensure the nationwide presence of the
ABB brand.
Established since 1971, SGABB has 30 years of presence in Singapore
employing 950 employees. SGABB‟s key activities include the supply of power
transmission and distribution equipment, instrumentation and control systems as
well as industrial products for various industries.
2.1.2.2. Structure
As Group structure, VNABB and SGABB are organized in five divisions Power
Products, Power Systems, Low Voltage Products, Process Automation and Discrete
Automation and Motion in order to serve each group of customers in a most
efficient way.
In VNABB, the most major division is Power Product with the longest
establishment while the others are very new (with around 3 years of establishment).
Besides, with 75% of ABB Vietnam‟s total headcount, this division contributes the
highest proportion in Revenues (more than 80%) and Earnings Before Interest and
Taxes - EBIT (more than 70%).
In SGABB, Power Product also plays a major role which mainly serves
domestic customers both in production and service like installation and
commissioning…
2.1.2.3. Activities in PP Divisions
In VNABB PP Division, the main activity is production of transformers,
medium voltages and high voltages products. The Division focuses on export sales
activity which leans on other ABB in other countries. That means when an ABB
company in one country wants to export into another country, it does not export
directly but through ABB Company in that country, on its turn, ABB in that country
plays the role of marketing and sales to seek for customers and orders.
Accordingly, ABB in a country usually needs sales activities mainly for domestic
sales.
In SGABB PP Division, it also has production of transformers and medium
voltages products. However, the major concern here is not only export sales but
domestic sales activity; therefore, the activity is not only production but also
services (like commissioning and installation for after sales). With that purpose,
sales and service activity play a major role in operation and business performance.
2.1.2.4. Employee groups and group characteristics
In both divisions, based on the natures of work, employees can be divided into
groups of Management, Production in workshop, Production in office,
Administration, Sales. Each group has its own characteristics illustrated like below:
TABLE 2-2: CHARACTERISTIC OF EACH EMPLOYEE GROUP
Group
Who are they?
What they do?
Stability &
Control to
Flexibility
to
Discretion
Internal Focus
& Integration
to External
Focus and
Differentiation
Management Managers are in charge of the whole
operation, differ from other group,
they take responsibility for the whole
business performance. Normally
they are Business Unit/Division
Managers and Controllers.
Moderate
stability
and high
control
Moderate
internal focus
and high
integration
Production
(workshop)
Employees work in the workshop
where procedure, especially safety is
strictly followed.
High
stability
and
control
High internal
focus and
integration
Production
(office)
Employees involve in productions
like design, purchasing, logistic
Moderate
stability
Moderate
internal focus
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Luận Quản trị kinh doanh: Culture comparison and culture change-case study of ABB VietNam and ABB Singapore = So sánh văn hóa doanh nghiệp và sự thay đổi văn hóa doanh nghiệp tại công ty ABB Việt Nam và công ty ABB Singapore
TÓM TẮT............................................................................................................................iv
TABLE OF CONTENT......................................................................................................vi
LIST OF TABLES..............................................................................................................ix
LIST OF FIGURES .............................................................................................................x
INTRODUCTION ...............................................................................................................1
CHAPTER 1: LITERATURE REVIEW ..........................................................................3
1.1. Definitions ..............................................................................................................3
1.1.1. Culture .............................................................................................................3
1.1.2. Organizational Culture.....................................................................................5
1.2. Cultural layers & cultural diversity ....................................................................6
1.2.1. The out layer (Explicit Products/Artifacts)......................................................8
1.2.2. The middle layer (Norms and Beliefs/Espoused Beliefs and Values) .................10
1.2.3. The core (Basic Assumptions/Underlying Assumptions)..............................11
1.3. Sub-culture...........................................................................................................15
1.4. The importance of organizational culture ........................................................15
1.4.1. Coordination ..................................................................................................16
1.4.2. Integration......................................................................................................17
1.4.3. Motivation......................................................................................................18
1.4.4. How well can organizational culture do its functions?..................................18
1.5. Culture analysis – OCAI method.......................................................................19
1.5.1. General about culture analysis methods ........................................................19
1.5.2. Advantages of OCAI method ........................................................................24
1.5.3. Dimensions in OCAI .....................................................................................25
1.5.4. Questionnaire applied in OCAI .....................................................................27
1.5.5. Scoring the OCAI ..........................................................................................28
1.5.6. What can be found from OCAI result............................................................28
1.6. Methodology applied in the thesis .....................................................................37
1.6.1. OCAI method.................................................................................................37
1.6.2. Interview method ...........................................................................................37
1.6.3. Other analysis methods..................................................................................38
1.6.4. Focused points ...............................................................................................38
CHAPTER 2: CULTURE ANALYSIS IN ABB PP DIVISIONS .................................39
2.1. Introduction about ABB Singapore and ABB Vietnam ..................................39
2.1.1. Introduction about ABB Group .....................................................................39
2.1.2. Introduction about ABB Vietnam (VNABB) and ABB Singapore (SGABB)..
.......................................................................................................................42
2.2. Organizational culture comparison between SGABB’s and VNABB’s PP
Division............................................................................................................................45
2.2.1. Different dominant cultures but same major culture types............................45
2.2.2. The current dominant culture gains cultural congruence in both countries...48
2.2.3. Differences in expected dominant culture types............................................53
2.2.4. Less cultural congruence for the expected dominant cultures & the inevitable
emergence of Clan and Adhocracy...............................................................................54
2.2.5. Diversity in expectation of employee groups ................................................58
2.3. Factors influencing organizational cultures in the two Divisions...................60
2.3.1. The vital role of standardization in ABB‟s operation....................................60
2.3.2. Market situation and market orientation in ABB Group ...............................62
2.3.3. Asian culture – a strong factor supporting for Clan Culture..........................66
2.3.4. Adhocracy Culture – an answer to the dilemmas ..........................................66
2.3.5. Business nature & the major sub-groups .......................................................66
CHAPTER 3: RECOMMENDATIONS..........................................................................68
3.1. The importance of defining culture profile.......................................................68
3.2. Culture incongruence requires leadership involvement..................................68
3.2.1. Leaders are to listen and respect the needs of employees..............................69
3.2.2. Vision the future culture to pursuit ................................................................69
3.2.3. Define the culture transformation process .....................................................70
3.3. Visioning the transformation .............................................................................70
3.3.1. ABB Vietnam – PP Division .........................................................................71
3.3.2. ABB Singapore – PP Division.......................................................................75
3.4. Operational change for the cultural change .....................................................79
3.4.1. In ABB Vietnam – PP Division.....................................................................79
3.4.2. In ABB Singapore – PP Division ..................................................................83
3.5. International cooperation and global resource utilization..............................88
CONCLUSION ..................................................................................................................91
REFERENCE.....................................................................................................................93
APPENDIX 1: VARIOUS CATEGORIES USED TO DESCRIBE CULTURE ...............97
APPENDIX 2: ENVIRONMENTAL VARIABLES AFFECTING MANAGEMENT
FUCTIONS..........................................................................................................................99
APPENDIX 3: DENISON ORGANIZATIONAL CULTURE SURVEY........................100
APPENDIX 4: QUESTIONAIRE SAMPLE ....................................................................101
APPENDIX 5: CULTURE PROFILE COMPARISION VIETNAM VS. SINGAPORE
...........................................................................................................................................105
1. Purpose
The thesis focuses on the following points:
- Base on Organizational Culture Assessment Instrument to find out the
cultural similarities and differences in the two Divisions in ABB Vietnam
and ABB Singapore in terms of dominant cultures, culture congruence,
expected dominant culture and factors that drives the needs for culture
change.
- Define predominant factors that should be taken into consideration for
culture change so as to increase business performance
- Give recommendation for cultural change including action plan for each
Division.
2. The research scope
There are two defined research scope dimensions in this thesis to distribute a
solid analysis and practical recommendation
- The factors to compare between the two Divisions are concentrated on six
categories: (1) Dominant Characteristic, (2) Leadership Style, (3)
Management of Employees, (4) Organizational Glue, (5) Strategy Emphases
and (6) Criteria of Success
- The cultural comparison units are ABB Singapore‟s and ABB Vietnam‟s
Power Product Division.
3. Methodology
- The thesis use both quantitative and qualitative analysis, mainly based on
OCAI method.
- The information is collected from diverse sources: survey, interview,
observation, secondary data…
- Details are mentioned in 2.2 Applied method in the thesis
2.1.2. Introduction about ABB Vietnam (VNABB) and ABB
Singapore (SGABB)
2.1.2.1. Establishment
Established in Vietnam in 1993, VNABB recently has more than 680 employees
working in three regions across the country to ensure the nationwide presence of the
ABB brand.
Established since 1971, SGABB has 30 years of presence in Singapore
employing 950 employees. SGABB‟s key activities include the supply of power
transmission and distribution equipment, instrumentation and control systems as
well as industrial products for various industries.
2.1.2.2. Structure
As Group structure, VNABB and SGABB are organized in five divisions Power
Products, Power Systems, Low Voltage Products, Process Automation and Discrete
Automation and Motion in order to serve each group of customers in a most
efficient way.
In VNABB, the most major division is Power Product with the longest
establishment while the others are very new (with around 3 years of establishment).
Besides, with 75% of ABB Vietnam‟s total headcount, this division contributes the
highest proportion in Revenues (more than 80%) and Earnings Before Interest and
Taxes - EBIT (more than 70%).
In SGABB, Power Product also plays a major role which mainly serves
domestic customers both in production and service like installation and
commissioning…
2.1.2.3. Activities in PP Divisions
In VNABB PP Division, the main activity is production of transformers,
medium voltages and high voltages products. The Division focuses on export sales
activity which leans on other ABB in other countries. That means when an ABB
company in one country wants to export into another country, it does not export
directly but through ABB Company in that country, on its turn, ABB in that country
plays the role of marketing and sales to seek for customers and orders.
Accordingly, ABB in a country usually needs sales activities mainly for domestic
sales.
In SGABB PP Division, it also has production of transformers and medium
voltages products. However, the major concern here is not only export sales but
domestic sales activity; therefore, the activity is not only production but also
services (like commissioning and installation for after sales). With that purpose,
sales and service activity play a major role in operation and business performance.
2.1.2.4. Employee groups and group characteristics
In both divisions, based on the natures of work, employees can be divided into
groups of Management, Production in workshop, Production in office,
Administration, Sales. Each group has its own characteristics illustrated like below:
TABLE 2-2: CHARACTERISTIC OF EACH EMPLOYEE GROUP
Group
Who are they?
What they do?
Stability &
Control to
Flexibility
to
Discretion
Internal Focus
& Integration
to External
Focus and
Differentiation
Management Managers are in charge of the whole
operation, differ from other group,
they take responsibility for the whole
business performance. Normally
they are Business Unit/Division
Managers and Controllers.
Moderate
stability
and high
control
Moderate
internal focus
and high
integration
Production
(workshop)
Employees work in the workshop
where procedure, especially safety is
strictly followed.
High
stability
and
control
High internal
focus and
integration
Production
(office)
Employees involve in productions
like design, purchasing, logistic
Moderate
stability
Moderate
internal focus
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