Introduction on the company: The Military Industry PDF

Introduction on the company:
The Military Industry - Telecommunications Group (Viettel) is an economic enterprise under
the control of the Vietnamese Ministry of Defense, an enterprise directly under state
management with a 100% capital of the state. However, not only has it grown on a domestic
scale, but the group has grown to many countries around the world, expanding markets in
Southeast Asia, Central Asia, America, and Africa. It is considered one of the fastest-growing
telecommunications companies in the world and is among the Top 15 global telecommunication
companies in terms of a number of subscribers.
Type: Economic enterprises with 100% state capital
Established: 1/6/1989
Head office: No. 1 Tran Huu Duc, My Dinh 2, Nam Tu Liem, Hanoi, Vietnam
Product: Services, electronic products - telecommunications - information technology. Website:
http://viettel.com.vn/

(Source:https://vntelecom.org/public/vntelecom10/%2303.2%20%20Viettel
%20Technologies_an%20introduction.pdf )
Corporate culture and the impact on individual and organizational behavior
 Cultture
According to Handy's theory about cultural models in enterprises, it can be assessed that, in
Viettel'soperating system applied by role culture based on the diagram of the enterprise, we see
CEOs and directors are separated from each other to bear different functions and these functions
are linked to the General Office and linked together. For a role culture, each member of Viettel
will be responsible for his professional and professional responsibilities of the department to do
the job. Based on this culture can build a spirit of a challenge for each individual in the
organization, in addition to building self-awareness, self-responsibility for the task of the job
based on their role. (Carrell, 1978) However, according to Viettel's preliminary assessment of the
structure, the majority of high-ranking, large-scale departments follow and apply for cultural
roles in organization and working style. For small departments and strategic groups, they will
apply Task culture to the group and the members there. Viettel enterprises always uphold the
development of people and appreciate the development of employees, so the strategic groups are
special to carry out their own tasks and the members of the group are rotated continuously to
create new spaces, new environments, and new relationships, creating cohesion between new and
old employees among employees from different departments. In addition, when applying the task
culture model to organizations and groups responsible for implementing tasks, it requires
teamwork and high solidarity, and the creation of team members, creating conditions for
members to develop and train. With the changing and developing era of the current market in
Vietnam and the whole world, the cultural models are applied flexibly to positively impact the
behavior of the organization, and Viettel is not an exception. Not only applying the theory of
Handy to apply to the organizational structure of enterprises but also the fact that Viettel is
paralleling the use of the onion culture model in the behavior of the organization. According to
the onion culture model, cultural values will be divided into three main values as Beliefs and
assumptions, Norms and behaviors, Signs and symbols. (Blog, 2020)

(Sources: https://unitedbycultureblog.wordpress.com/hofdstedes-onion/)
The core value of Viettel is the formation based on the standards of the Vietnam army, the rules
that were created from that. However, in order to develop into a culture that works in businesses,
there is a lot of improvement. An enterprise creates trust for its employees, based on the
foundations of the business, the principles of underground conduct formed in the organization. In
fact, the managers and operators of Viettel are military personnel trained and originated from the
Vietnamese army, so the discipline and trust issues and the operating apparatus of workers are
almost absolute. At the same time, employees and managers have their own code of conduct
according to each group in the organization to increase unity and mutual understanding, thereby
motivating them to fulfill common tasks and objectives of the group. Why create trust as well as
rules in the organization? In the onion culture model, beliefs and rules are in place to regulate the
behavior and expression of the staff in accordance with the requirements and purposes of the
organization, Viettel these issues built a long time ago, creating a great belief system and
assumption system helps Viettel's organization to promote the contact and development process
of strange and familiar employees and mastering skills at work. Besides, in order to build and
maintain a collective that cannot fail to mention the signs of recognition as well as the typical
characteristics of Viettel people, these are signs and symbols that symbolize the face as well as is
Viettel Group. (MACLACHLAN, 2010) From the investment issues for uniforms of each
department, each branch, each department to field trips, teambuilding even the statements in the
newspaper as Mr. Hung's statement: "Those are the people, the collective very different in
location, nature of work, objectives, and tasks. The value they represent is also in very different

aspects of Viettel culture. Achievements cannot be compared directly with a lot of low and high.
But I realized that all these simple stories exuded a common point. That is faith. Belief is not
limited to yourself and your organization.” (Long, 2018) It can be shown that the symbolic
images for Viettel people make employees feel attached to the business, devote themselves to the
collective organization, besides the rate of leaving jobs will also be greatly reduced.
 Power and Politics
In the organization of Viettel enterprise, the executives will be responsible and manage each
department under their supervision, the departments are the same but divide the power from top
to bottom. For businesses in Vietnam, the differentiation of power in the enterprise is very large
and especially Viettel is an enterprise built on the foundation of the Vietnamese army so the
order and ranks in the enterprise is a prerequisite to grasping power, as well as creating power.
So, power will be most focused on the CEO and executives below, who will be the ones making
business decisions, making strategic plans for functional departments. Since then, it can be seen
that Viettel is an organization that builds power systems following personal power. However,
with the concentration of power in the form of focusing too much on one or a group of such
high-level subjects, it will limit the development and authority of employees, so policies and
politics in Viettel will adjust these behaviors, increase power for employees and subordinates.
According to Viettel's preliminary assessment of power stratification, it is considered a
centralized power vertically. Because the division by position and rank, from the director to the
executive director to the departments, ... (George, 2014) For each individual with the
responsibility to have the right to decide important strategies that are necessary to be really
attached to the business, to devote all of our lives and to be a soldier who gets the trust and love
from colleagues to superiors. It means that those individuals will be respected in the Viettel
organization, so the power limit will also be based on the rank that is assessed, and in addition,
they must ensure that those responsibilities when that individual has the power to decide. But in
order to promote the full power in their hands, they must come up with policies, a political
foundation in the group, in the department to ensure practicality and tools to support
management as well as ensuring the power is maintained, besides it is impossible not to mention
that it is to ensure that the culture is built in the organization. (Herzberg, 1966) From the reward
policies to the issues of training, policies to support workers suffering from accidents, ensuring

labor safety, unemployment insurance, policies for pregnant and retired employees. Each policy
is carried out by managers and leaders to ensure employee morale, besides tactics to ensure their
authority. As for the staff they have the right to participate in the development and have a voice
to protect the rights of workers, there is a department called the union to ensure the
implementation of the voice of employee company management. In addition, they are
encouraged to create and improve skills for potential employees, to participate in the
management and operation of Viettel enterprises.
 Relationship between culture, power, and politics
Culture in enterprises creates the foundation of corporate rules of the organization, thereby
creating a sense of attachment between employees and the company. However, managers have
power in their position as a leader, they develop a culture based on what they want, so to
evaluate, the culture should also be considered power in the enterprise. However, according to
Handy's theory, there is also a culture called power that always exists and is maintained in the
enterprise, although many businesses should not be very clear this culture, in general culture will
also impact more or lesson power in the company, in politics in the enterprise. The culture of the
business will determine the initial foundation for power and thereby influence the politics in the
business. (Miner, 2002) For example, when the culture in the business is personal culture, the
power will no longer focus on the leaders of the leaders but will belong to each individual in the
business, so the culture has a great impact tremendous power in business, culture builds a system
of principles that behaves to the personality of each individual. However, power and politics also
have the opposite effect on culture, can also change the culture in the business, the policies, the
new principles introduced will change views and behaviors of employees in the organization.
 Motivation
With the dedication to the work and the whole organization of each individual, Viettel always
upholds and has many policies to motivate employees to have more dedication. According to
Viettel's preliminary observations and assessments of employee promotion policies, it was found
that the company had adopted Alderfer’s ERG Theory. Because the motivations created by
Viettel will simultaneously hit 3 satisfying floors for employees according to Alderfer's theory
from basic needs and at the same time ensure 2 needs at a higher level. In fact, Viettel's reward

regimes have many different criteria and levels for different achievements. Besides continuing to
train staff, creating trust and feeling of attachment to the team, it is impossible not to mention the
rewarding regime outside financial issues, which is to reward excellent employees, but also With
the support of the military, individuals who come from the army or not will be allowed to join
the party and receive many social benefits as well as respect in society, increasing their ranks and
increasing their rank, positions,...In addition to Alderfer’s ERG Theory, Viettel also applies that
same time to Adam’s Equity theory. (Miner, 2002)
According to Adam's theory, the balance between the output and the input of the employee is to
achieve in the management process as well as based on which to promote the methods as well as
the appropriate punishment policies thereby motivating employees. Viettel always encourages its
employees to actively participate in new innovations and create emulation movements for
individuals, groups, and teams. Accompanying are rewards and benefits for excellent individuals
and groups. Viettel is an enterprise environment built on double forces, so the most concerning
issue is the rank in the organization so each individual will have to try and adjust their inputs to
achieve results. Based on the theories applied in practice, showing the motivations created by
Viettel enterprises is able to promote the expression of employees, change the behavior of
individuals in each group. (Robbins, 1993) However, besides factors such as culture, power and
politics will also have an impact on motivational methods. From a cultural perspective, it is
possible to assess those cultural factors will affect the behavior of the individual most so
changing or applying cultural methods in the organization should also be evaluated and reviewed
as it will effectively reduce or increase the effectiveness of motivational methods. In terms of
power in the enterprise, relying on the power of managers and rulers will change the methods of
motivating other ways, if power is completely dependent on their hands, the towers motivating
becomes less necessary, because just relying on power can control the behavior of employees,
whereas if power depends on employees in the business, there must be many ways to measures
to motivate them to influence their behavior. In terms of politics, corporate policies will be a tool
to support the success of motivational methods. (Robbins, 1993)
 The impact of culture, power, politics, motivational methods on company &
individual behaviors:

According to the theories that businesses have applied in activities that really impact the
behavior of employees and the organization. How does the word of politics, power, and
motivational methods affect the behavior of employees? In fact, based on the statistics show
good expression of the entire Viettel Group. According to VnEconomy, Viettel's revenue in 2018
reached VND 234,000 billion, accounting for 60% of the total telecommunication revenue in
Vietnam ofVND 390,000 billion. Profit after tax amounted to VND 37,600 billion and accounted
for 70% of the whole industry's profit, the growth rate increased by 8% compared to the same
period last year in the core sectors of the enterprise, in which telecom services increased by
4.2%. In addition, the overseas market also collected the US $ 240 million, revenue increased by
20%. Viettel's market in Vietnam market accounts for 51.5% in the telecommunications sector.
Through the facts that Viettelhas achieved, it can be seen that the management and the theories
applied in the management of employee behavior are really effective. Viettel in recent years has
developed and launched policies as well as attractive remuneration regimes. (VnEconomy, 2019)
According to statistics published by the professional community network, Anphabe and Intage's
research market about the company is evaluated based on many criteria. Then Viettel is the 5th
enterprise which is considered the most valuable place to work in Vietnam in 2018. The working
environment in the high-tech platform, requires dedication and worthy remuneration for the
achievements of staff. In addition, it is a well-known business, which makes employees proud,
military-based politics, so rules and behavioral issues will be built up to the habits and
subconscious of workers. The culture of the business builds on the Role culture, Taskculture and
Onion culture that impacts employees, making them develop themselves, giving a flexible
working environment, making managers and managers the implementation team is responsible
for making decisions to implement the business strategy. In addition, the rules and nine books
will create binding frameworks and have a lot of impact on the behavior of workers and
organizations, such as reward and punishment regime, the regime of assessing productivity, the
regime attendance, incentives for employees, from those existing regimes create a system of
rules and behavioral constraints for employees. And yet, Viettel always develops and carries out
civilized behaviors like the philosophy of "Investing in education - investment for the future", the
period from 2008 to 2013, Viettel said it has connected and upgraded broadband Internet for
more than 30 thousand educational institutions across the country, 96% of communes have fiber
optic cable, with a budget of 600 billion VND. In the next phase, from 2013 to 2020, Viettel

aims to provide fiber optic Internet transmission lines for 100% of educational institutions, with
a budget of about 500 billion VND per year. Build a beautiful Viettel image, create an
impression in the hearts of customers, create pride for employees in Viettel's collective, create
trust, and reduce the rate of leave, absence rate, it is motivated to contribute to businesses for
public activities for society. In fact, in the last 3 years, the Soha turnover rate in Viettel is only 5-
7% / 1 year, 10% lower than Vietnam Telecommunications industry and 12% in the world
Telecommunications industry. From that, it shows the impact of Viettel on the behavior of
employees is to effectively promote the process, as well as the productivity of employees, in
addition to creating attachment and satisfaction in the organization and doing reduce turnover
rate and absenteeism rate. (VnEconomy, 2019)
 Elements of formation and impact on the company's culture, solutions to build a
company culture in accordance with the business environment of Vietnam
For a business that is established and developed in the Vietnamese cultural environment, the
rules and culture in the process of working will also be affected quite a lot. If analyzing the
organizational culture model of Viettel according to the cultural theory of Hofstede, there will be
a clear view on how multidimensional culture in the organization is as well as how it affects the
national culture. Being born and raised in the Vietnamese environment, the cultural norms here
will impact the cultural formation in Viettel's organization a lot. (Long, 2018)
(Source: https://www.hofstede-insights.com/)

First, the division of power in enterprises in Vietnam in general and Viettel in particular, there is
a big gap for the upper and lower levels, according to the above scheme, it is up to 70 points, and
more specifically when as an enterprise under the management of the Ministry of Defense of
Vietnam, the decentralization of power in the order must be clearer and power gradually
increases from low to high position. If the evaluation of the next criterion is the individuality of
the organization's actions, then the group's or group's membership in Viettel is higher than
personal work, because of the properties in the apparatus state because the components and tasks
are quite interconnected, so the individuality in the organization is limited at a low level of 20
points, meaning that teamwork and tasks need to be supported Each other is high in Viettel's
organizational behavior. As in the tradition and history of the country of Vietnam, feudal times
and the important rules of men in society still exist now in Vietnamese culture. The same is true
for Viettel and above all in the military environment, individuals who are male will be rated
somewhat higher than the female audience. Hence, with the changes of society in recent years
and the process of international integration and more equality in society, the importance of men
has been reduced and more limited in organizations in Vietnam with only 40 points. The 3rd
criterion for cultural evaluation in Hofstede's model is the avoidance of uncertainty. As shown in
the diagram of the assessment in Vietnam, it only accounts for 30 points, suggesting that
Vietnamese culture will be able to accept risks and risks in the process of operation and business.
With Viettel is no exception when making business strategies, activities in each battle group,
each department has responsibility and risk provision, so the avoidance of uncertainty is not
high. Because the business market in Vietnam is a huge issue for every business, in the process
of integration and development, foreign businesses and companies participating in the domestic
market are many, so the fear and avoidance of risks in business steps is low, besides the support
from the state, so the issue of starting and accepting risks in Vietnam is very popular. (Long,
2018) Along with risk avoidance is the long-term orientation, most in the culture of the
Vietnamese people so far, it is very important to plan and orient activities for the long term. So,
it is understandable for this item to get 57 points, and for Viettel, as well as functional
departments, groups and organizations, it will be oriented as well as long-term plans for
businesses and it evaluate as one of the typical working cultures in Viettel. For example, Viettel's
four-pillar plan took four key sectors: domestic telecommunications; foreign
telecommunications; manufacturing electronic and telecommunications equipment; real estate

investment. For domestic telecom results, the company has gained market share in the
Vietnamese market up to 40%, a relatively large number compared to other telecom operators,
for foreign telecom given the item. Targeted targets will cover and the number of subscribers
will be from 300 to 400 million people, by 2020 there will be 2 to 3 times more revenue in
domestic telecommunications. In 2015, Viettel produced telecom terminals, a part of
infrastructure equipment, and basically met the demand for military radio information. Viettel
plans to spend about 20-25% of after-tax profit to invest in real estate, long-term investment rate
from 60-70%, real estate investment after telecommunications to penetrate foreign markets.
Through the example, the evaluation of Viettel's long-term strategy and strategy is described in
detail. The last category in the Hofstede model is Indulgence. Vietnam has a low score in this
category with only 35 points, is considered a country with social rules and norms that will affect
people's behavior very much. (VnEconomy, 2019) Viettel is an enterprise established and
developed in Vietnam so this specificity cannot fail to appear in the organization. Employees,
members of the business will be extremely focused as well as responsible for what is assigned
higher, besides the moral evaluation of society will bind their behaviors in the organization. As
being on time, working on time, fulfilling your responsibilities and functions, trying to get the
respect of society will promote their work as well as their expression in business. In conclusion,
Viettel is a famous company in Vietnam, and the culture, as well as all systems about the
management of the enterprise, are built upon the culture of this country. Hence, the impact on
behaviors of employees and organization easier, and based on the core cultural spirit of the place
it is easy for employees to access and participate in the culture of the business. Not only that, the
research and investment, as well as the change of management methods of enterprises, have
changed to suit the age and maintain the strength of enterprises.

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