BTEC Level 5 HND Unit 12: Organizational Behavior Report - Vinamilk

This report examines the organizational behavior of Vinamilk, a major Vietnamese dairy company. It begins with an introduction to organizational culture and a case study of Vinamilk, outlining its history, ownership structure, and key features. The report then delves into Vinamilk's organizational culture, analyzing it through Edgar Schein's model, discussing artifacts, values, and underlying assumptions. It explores the impact of culture, power, and politics on employee behavior and performance, with specific examples from Vinamilk. The report also covers motivation methods, including Maslow's hierarchy of needs and Adam's equity theory, and how these theories apply to the company. Finally, it concludes with a summary of the key findings and the relationships between culture, politics, power, and motivation within the context of Vinamilk's operations.

ASSIGNMENT 1 FRONT SHEET
Qualification BTEC Level 5 HND Diploma in Business
Unit number and title Unit 12: Organizational Behavior
Submission date Date Received 1st submission
Re-submission Date Date Received 2nd submission
Student Name Nguyen The Hoang Student ID GBH2004
Class GBH0910 Assessor name HangNTM
Student declaration
I certify that the assignment submission is entirely my own work and I fully understand the consequences of pla
making a false declaration is a form of malpractice.
Student’s signature Hoang
Grading grid
P1 P2 M1 M2

 Summative Feedback:  Resubmission Feedback:
Grade: Assessor Signature: Date:
Internal Verifier’s Comments:
Signature & Date:

Table of Contents
1. Introduction .............................................................................................................................................................. 3
2. A case study .............................................................................................................................................................. 3
3. The culture of Vinamilk ............................................................................................................................................. 5
4. Motivation Method................................................................................................................................................... 8
5. The relationship between culture, politics, power and motivation ....................................................................... 10
6. Conclusion ............................................................................................................................................................... 11
References ...................................................................................................................................................................... 11
1. Introduction
Culture is an important and indispensable tool in executive management, regardless of whether it is the
executive management of a country, a society, a business or an agency… One cannot do executive management.
well without using culture tools. In terms of management science, the management of a business or a country
have similarities. This report concludes an overview of VNM organization’s culture, politics and power, with
relevant examples of how these aspects of organizational behavior have influenced behavior in the workplace.
2. A case study
2.1. About VNM
Established in 1976, over 44 years of establishment and development, Vinamilk has become the largest
enterprise by market capitalization in Vietnam from 2014-2017 across both real estate and financial businesses
and by 2020 Vinamilk. in the TOP 4 enterprises with the 4th market capitalization as well as the No. 1 in the
consumer manufacturing industry and the TOP 50 Dairy Enterprise of the world. In order to achieve that result,
in addition to the strategy, one of the points contributing to that development is Vinamilk's corporate culture.
(VNM, 2020)

Company name Viet Nam Dairy Products Joint Stock Company
Abbreviated name VNM
Address 10 Tan Trao, Tan Phu, District 7, Ho Chi Minh City,
Vietnam
Establish day 1976
Tel no (028) 54 155 555
Fax no (028) 54 161 226
Website www.vinamilk.com.vn
(VNM, 2021)
2.2. The structure of the ownerships and shareholders
(VNM, 2020)
Overall, the major shareholders (which conclude shareholder held greater than or equal to 5%) was held 67.01%
(exactly 1,400,518,390 shares). In addition, the number of shares of foreign shareholders was 1,206,925,336
shares (is equivalent to 57,75%) compared to 88,030,109 (42,25%) of local shareholders.

(HPG, 2020)
According to the chart, it can be clearly seen that there are four distinct large shareholders of VNM, namely:
SCIC of Vietnam, F&N Dairy Investments Pte Ltd, F&NBev Manufacturing Pte Ltd and Platinum Victory Pte Ltd. In
addition, the Vietnamese State Capital Investment Corporation have the most of number of shares (752,476,602
shares is equivalent to 36%).
3. The culture of Vinamilk
3.1. The model of Organizational Culture by Edgar Schein
(Tutor, 2014)
Artifact
It concludes products of human, things that can be clearly seen and felt when in contact with Vinamilk, which
are easy to see but difficult to explain. In Vinamilk's logo and cultural space, it can be seen that the main color
often used is blue and white. Cultural icons: when entering Vinamilk's lobby, there will be a model of Vinamilk
Culture boat surfing out to the sea with a width of 5m2 (selected by the Board of Directors as a cultural symbol
in the new phase of the implementation process. project with TOPPION), each sail is per value. Traditional song:
corresponding to the symbol of the cultural boat, Vinamilk has the song of Vinamilk – "Ai cung la hoa tieu".
Behavioral culture that we can feel when interacting with and working with Vinamilk's human system, from
security guards, receptionists to management team (such as professionalism, systematicity, regulation, etc.)
tubers, scale…). (VNM, 2020)

(VNM, 2021)
Values
This part expresses the philosophies, core values and beliefs that have been agreed upon by the Board of
Directors, through the aspiration towards. These values, philosophies and beliefs have been implemented by
the Board of Directors, communicated and expected to be followed by the team. The espoused value of
Vinamilk culture is the agreed beliefs and values which are understood as the consensus of the Board of
Directors, the consensus of the team.
Vision: “To become a world grade brand in food and beverage industry, where people put all their trust in
nutrient and health products.” (VNM, 2020)
Mission:” To deliver the valuable nutrition to community with our respect, love and responsibility.” (VNM, 2020)
Core value: “Integrity, Respect, Fairness, Ethics, Compliance” (VNM, 2020)
Philosophy: “Vinamilk desires to become one of the most favourite brands in every region and territory.
Therefore, we keep in our mind and our heart that the quality and innovation are always our most important
companions. We act with customer-centered approach and commit to respond to all their needs.” (VNM, 2021)
Quality Policy: “Always satisfy and be responsible for consumers’ needs by diversifying products and services,
assuring quality, food safety with competitive price, respecting the business ethics and complying with laws.”
(VNM, 2021)
Basic Underlying Assumptions
This is the deepest layer of culture, it determines and governs the entire corporate culture of Vinamilk. These
implicit assumptions will determine whether the values and beliefs discussed above become culture or just a
middle layer. Many businesses offer agreed values and beliefs (vision, mission, core values, business philosophy,
...) and propagate, cultural expectations are formed is impossible. That is why culture cannot form. These six
implicit assumptions are called the 06 ultimate cultural principles by Vinamilk, and from the gatekeeper to the
General Director of Vinamilk, all must respect and use it in problem solving, behavior and decision-making. The
six assumptions include the following: When things happen the first cause is me; Working collaboratively

without supervision; My words are me; Let's talk with quantification; Don't say no, always looking for 2
solutions; I am an international standards expert in my field. (VNM, 2021)
The impact of culture on behavior and performance
The culture of your organization influences how well your workers perform, how engaged they are at work, and
how profitable your firm is. Leaders are typically preoccupied with quarterly profitability or making next week's
payroll. They believe that if everyone is compensated, everyone will be content, and culture will take care of
itself. This is not true; business culture begins at the top and spreads throughout the firm, not the other way
around. Corporate culture propels innovation, employee development, and retention, eventually propelling the
business toward its objectives. People have positive ties with their job if they believe they are a part of it. There
is a need for people to identify with an organization's values, to be empowered to do their best job, and to
know that they are being heard and cared for. This fosters trust, which serves as the foundation for all healthy
partnerships. (Eccles, 2012)
The impact of power on behaviors and performance
The impact of power disparities on the way team members work is of great interest. Having a mix of strong and
less powerful people on a team or having a team comprised entirely of powerful people can have a negative
impact on performance (Angus, 2016). It seems that the more powerful people are, the less effective they are at
tasks that require coordination with others. High-powered people tend to be overconfident, poor listeners,
undervalue the ideas of others, and interrupt and belittle the suggestions and successes of others. Compared to
low-power groups, when working together, a group of high-power individuals is less focused, less creative, has
more conflict, and shares less information.
The impact of politics on behavior and performance
Employees who do not believe in working hard rely on nefarious politics to keep their job safe. Employees play
politics just to get unwarranted attention and admiration from their superiors. Politics refers to people' illogical
conduct at work in order to get benefits over which they have no control. Politics has never benefited anyone;
instead, it creates a bad atmosphere at work. One of the most significant consequences of politics on
organizations and employees is a reduction in overall productivity. Politics lowers the output of an individual
and eventually affects the productivity of the organization. Common observation says that individuals who play
politics at the workplace pay less attention to their work. They are more interested in leg pulling and back
biting. They spend most of their times criticizing their fellow workers. As a result of politics at the workplace,
employees fail to achieve targets within the stipulated time frame. Work gets delayed in such an organization.
(Ferris, 2018)
In terms of VNM, regarding the influence of culture, VNM always has a culture that employees must be
responsible for their work, creative, proactive, upright, concerned by superiors, and treat all employees with
respect and fairness. Vinamilk creates the best opportunity for all employees to develop equality, build and
maintain a friendly, safe and open working environment. Regarding the influence of power, VNM creates a fair
and friendly working environment for all employees, working on the basis of a spirit of cooperation, without
supervision between superiors and subordinates, creating a comfortable atmosphere at work. About politics,
one of VNM's morphological principles is that employees must always be upright, take responsibility for what
they have said, but there will still be a few elements playing politics to personal profit.

4. Motivation Method
4.1. Theory
Maslow’s hierarchy of needs
(Class, 2020)
Physiological requirements are the first of Maslow's hierarchy's id-driven bottom demands. Food and water,
enough rest, clothes and shelter, general health, and reproduction are among the most fundamental human
survival needs. According to Maslow, these basic physiological requirements must be met before people may
progress to the next degree of satisfaction. Safety comes next on the list of lower-level requirements.
Protection against violence and theft, mental stability and well-being, health security, and financial security are
all examples of safety requirements. The social requirements on the third level of Maslow's hierarchy are the
last of the so-called lower wants and are related to human contact. Friendships and family connections are
among these requirements, both with biological family (parents, siblings, children) and chosen family (spouses
and partners). In order to achieve a sense of enhanced kinship, physical and emotional closeness ranging from
sexual connections to intimate emotional attachments must be present. Membership in social groups also helps
to satisfy this desire, whether it's belonging to a colleague team or establishing an identity in a union, club, or
group of hobbyists. The higher needs, beginning with esteem, are ego-driven needs. Self-respect and self-
esteem are the fundamental components of esteem. Maslow distinguishes two forms of self-esteem: esteem
based on respect and acknowledgement from others, and esteem based on your own self-assessment. This
second form of self-esteem gives rise to self-assurance and independence. Self-actualization refers to reaching
your full potential as a person. Self-actualization needs, also known as self-fulfillment wants, are at the top of
Maslow's hierarchy of needs. Education, skill development (the refinement of skills in fields such as music,
athletics, design, cuisine, and gardening), caring for others, and larger objectives such as learning a new
language, traveling to new locations, and winning prizes are all examples of self-actualization requirements.
(Class, 2020)
Adam’s equity
John Stacey Adams, an American psychologist, created the Adams Equity Theory in 1963. It is about striking a
balance between the effort that employee puts into their work (input) and the outcome they receive in return
(output). Hard effort, talents, and passion are all examples of input. Salary, recognition, and responsibility are
examples of output. A healthy balance of input and output ensures that an employee is pleased and motivated,

which increases production. When an individual's input/outputs are compared to those of other people, three
types of trade connections emerge, namely: Overpaid Inequity, Underpaid Inequity and Equity. Thus, an
individual's level of motivation is determined by the degree to which he believes he is being treated properly in
terms of incentives in contrast to others. Adam's equity hypothesis demonstrates the degree of motivation
among employees in the workplace. A person is considered to be highly motivated if he believes he is being
treated fairly. When an employee believes that he or she is being treated unfairly in the workplace, the feelings
of de-motivation will arise. Thus, an individual's level of motivation is determined by the degree to which he
believes he is being treated properly in terms of rewards in comparison to others. (Adams, 2010)
Goal setting by Edwin and Garry
In the 1960s, Edwin Locke introduced the theory of motivational goal setting. When a person has a clear goal,
they focus their efforts on that particular task. Setting an ambitious but achievable goal can motivate employees
and improve work results if the goal is accepted by them and supported by the organization and created
favorable conditions necessary conditions for implementation. To set reasonable goals, it is necessary to closely
coordinate between managers and employees in three basic steps: Step 1: determine appropriate goals; Step 2:
make employees accept the goal; Step 3: facilitate the environment and provide feedback. The theory shows
that, in order to motivate employees, managers must identify specific and challenging goals for work-oriented
employees. Employees also participate in the goal setting process, making them see that the organization's
goals are the same as the goals they want to achieve so that they voluntarily accept those goals. (ARCHER, 2012)
4.2. Motivation method of VNM
VNM used Maslow’s hierarchy of needs to motivate employees. VNM has policies to support, improve income,
welfare and protect workers' health during the epidemic. Determining that "the health and safety of employees
is a top priority", Vinamilk proactively maintains epidemic prevention measures in an active and proactive
manner. Enterprises make timely adjustments to support income for employees, ensure welfare regimes from
health care, life to allowances or rewards according to work results. These solutions show the effectiveness in
helping employees feel more secure to work and dedicate. Vinamilk also focuses on attracting and developing
the management team, creating motivation for development. In 2020, the company launched the Management
Trainee (MT) program, attracting more than 1,500 candidates. These are excellent young talents, eager to learn,
with creative, managerial thinking. ready to take on management positions in the future. In previous MT
programs, 41% of MTs became company management. Vinamilk employees are encouraged to participate in
internal cultural activities, exercise, and create team cohesion. Many meaningful community programs with the
cooperation of the company's staff such as the fundraising walk campaign "Million steps, repel Covid"; the
program "Green living - Reducing plastic", contributing trees with the "Fund of 1 million trees for Vietnam";
contribute daily wages to support the fight against epidemics or people in the Central region suffering from
natural disasters, storms, floods... Many meaningful community programs with the cooperation of the
company's staff such as the fundraising walk campaign "Million steps, repel Covi"; the program "Green living -
Reducing plastic", contributing trees with the "Fund of 1 million trees for Vietnam"; contribute daily wages to
support the fight against epidemics or people in the Central region suffering from natural disasters, storms,
floods... Many meaningful community programs with the cooperation of the company's staff such as the
fundraising walk campaign "Million steps, repel Covi"; the program "Green living - Reducing plastic",
contributing trees with the "Fund of 1 million trees for Vietnam"; contribute daily wages to support the fight
against epidemics or people in the Central region suffering from natural disasters, storms, floods... (Hoang Anh,
2021)

5. The relationship between culture, politics, power and motivation
Organizational culture is closely related to employee motivation. Organizational culture is an effective tool to
influence the motivation of employees, thereby leading to improving labor productivity, production and
business efficiency and creating competitive advantages for enterprises. Organizational culture is one of the
factors, a tool affecting labor motivation. The stronger the organizational culture, the more members accept the
fundamental values of the organization, which are widely shared, intentional, and the greater the members'
commitment to these values. . Therefore, a strong culture will obviously have a greater influence on the
behavior of employees in the organization than a weak culture. On the other hand, a strong culture is directly
related to a reduction in the level of worker substitution. Culture can also impede change, diversity of resources.
Each employee has his or her own set of values and beliefs. When working in an organization with a strong
culture, they need to adhere to the common norms and value system of the organization. Thus, the strengths or
advantages of the employees will be somewhat limited or not able to promote, which can reduce the labor
motivation. (Jost, 2016)
Politics influencing motivation can be beneficial, but also harmful. Our own norms are impacted by the body
politic we are a part of. We may see people suffering and be motivated to act. Politics may influence this,
enhance our activities, and motivate us to contribute to justice by utilizing money, law, and conventions. Politics
is a vital component of power and influence. People who are driven in that direction become skilled at politics.
Politics within an organization have negative effects, as individuals engage in bog and noncooperation with
others, thus tarnishing the organization's productivity and good name. The influence of power affects
individuals and the overall performance of an organization. Power when used positively motivates employees,
and when used negatively, it damages the brand and the workplace atmosphere. (Jost, 2016)
The power to motivate others and lead an organization is in the hands of the top managers of a company.
Motivation can be defined as getting others to do something because they want to do it. One of the most
important management tasks is to motivate others. In a nutshell it comprises the power to understand people's
need, to encourage them, to effectively communicate, to get involved, accepting challenges, to set an example,
and to appreciate and reward them. Managers often hold the power to reward their employees for a job well
done through bonuses, incentives etc. This power motivates employees to perform their job in the hopes they
will receive a reward. Power is clearly a meaningful and instinctively experienced motivation, which plays a large
role in everyday experience and behavior. An immediate problem in relating power to motivation is the doubt
of the concept. Power is the ability to use the threat of deprivations to get someone to do what they would
otherwise not do. (Jost, 2016)
In Vietnam in general and companies in particular, Culture and motivation contribute to the effectiveness of
teamwork of individuals and organizations. When employees understand the values that the company culture
brings, they will work hard to contribute to the company. The company will then develop when there are groups
and individuals dedicated to the work. The power-motivation relationship will help individuals know about their
performance in terms of position and use the available power in the process of achieving goals. Employees who
know how to navigate organizational politics are found to be more productivity than their counterparts.
Competition: A healthy organizational politics instigates a competitive spirit throughout the organization which
may result in competitive advantage. Stress management: A politically skilled organization can successfully
employ certain actions that support the feelings of trust, confidence and sincerity that reduce the stress levels in
employees. Then they can work more productive.

6. Conclusion
In conclusion, culture is an important and indispensable tool in executive management, regardless of whether it
is the executive management of a country, a society, a business or an agency… One cannot do executive
management. well without using culture tools. In terms of management science, the management of a business
or a country have similarities.
References
Adams, J. S., 2010. Equity theory. s.l.:s.n.
Angus, S. K. M. D. R. a. R. D. M. e., 2016. Elsevier. s.l.:s.n.
ARCHER, D. a. C. A., 2012. ARCHER, D. and CAMERON, A. (2013) Collaborative Leadership; Building Relationships,
Handling Conflict and Sharing Control. 2nd Ed. London: Routledge.. s.l.:s.n.
Class, M., 2020. masterclass. [Online]
Available at: https://www.masterclass.com/articles/a-guide-to-the-5-levels-of-maslows-hierarchy-of-needs#what-are-
the-5-levels-of-maslows-hierarchy-of-needs
[Accessed 10 10 2021].
Eccles, R. G. I. I. a. G. S., 2012. MA: National Bureau of Economic Research. s.l.:s.n.
Ferris, G. R. e. a., 2018. Politics in organizations. s.l.:s.n.
Hoang Anh, 2021. vnexpress. [Online]
Available at: https://vnexpress.net/ly-do-vinamilk-luon-hap-dan-lao-dong-trong-nganh-hang-tieu-dung-nhanh-
4276322.html
[Accessed 10 10 2021].
HPG, 2020. Annual report, s.l.: s.n.
HPG, 2020. HPG. [Online]
Available at: https://www.hoaphat.com.vn/
[Accessed 26 9 2021].
HPG, 2021. HPG. [Online]
Available at: hoaphat.com
[Accessed 30 9 2021].
Jost, J. T. e. a., 2016. Handbook of value: Perspectives from economics, neuroscience, philosophy, psychology, and
sociology. s.l.:s.n.
Schein, E. H., 1984. Coming to a New Awareness of Organizational Culture. s.l.:s.n.
Tutor, 2014. tutor2u. [Online]
Available at: https://www.tutor2u.net/business/reference/models-of-organisational-culture-schein
[Accessed 10 10 2021].

VNM, 2020. Annual Report , s.l.: s.n.
VNM, 2020. vinamilk. [Online]
Available at: https://www.vinamilk.com.vn/vi/cau-chuyen-vinamilk
[Accessed 10 10 2021].
VNM, 2021. vinamilk. [Online]
Available at: https://www.vinamilk.com.vn/vi/vinamilk-huong-toi-su-ben-vung
[Accessed 10 10 2021].
VNM, 2021. Vinamilk. [Online]
Available at: vinamilk.com
[Accessed 10 10 2021].