Vietnam Airlines: Organizational Behavior, Culture, and Motivation

This report provides an in-depth analysis of Vietnam Airlines' organizational behavior, encompassing its culture, power dynamics, and motivational practices. The study begins by examining the airline's organizational culture using Schein's model and Handy's culture typology, revealing its role culture and emphasis on traditional values. The report then investigates the power and politics within Vietnam Airlines, focusing on the power bases and tactics employed by managers. It also explores motivational theories, particularly Herzberg's Two-Factor Theory, and evaluates the strengths and weaknesses of the airline's motivational strategies, including pay, company policies, and opportunities for growth. The analysis highlights the importance of communication and coordination across departments, as well as the use of various power tactics to influence employee behavior and performance, offering a comprehensive understanding of the internal workings of Vietnam Airlines.

Organisational behaviour
Student’s name: Bui Tran Thanh Tung
ID: 10180473
Lecturer: Phan Thi Thuc Anh
Tutor: Nguyen Hoang Hieu
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Table of Contents
Introduction:............................................................................3
MAIN BODY................................................................................. 4
I. CULTURE:.............................................................................. 4
1. VIETNAM AIRLINES CULTURE:......................................................4
II. Power and politics:..............................................................7
1. Power and politics in Vietnam airlines:..................................7
III. Motivation......................................................................11
1. Motivation content theory:.................................................11
2. Motivation process theory:.................................................14
IV. Evaluation of motivation practices:..................................15
Conclusion:............................................................................. 17
References:............................................................................18
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Introduction:
Vietnam airlines was established in 1956 and recognized as the national airline of
Vietnam in 1993. Vietnam airlines is the airline with the largest flight network in
Vietnam, stretching from Asia, Europe and Australia, North America with 31
branches and 20 representative offices in different countries. As for the domestic
flight network, the airline has 21 routes in all provinces and cities nationwide. The
company operates in two main areas: passenger air transport and air freight. Vietnam
airlines are known as an airline with high service quality, good customer care policy,
and the airline brings the image and traditional culture of Vietnam. (airlines, 2019).
This assignment is for the purpose of analyzing organizational culture of Vietnam
airlines thanks to the application of organizational culture theories. In addition, the
study explored what the management of Vietnam airlines use their authority and
power tactics to operate their businesses and influence performance of their
employees. Finally, Vietnam airlines have adopted motivational theories to motivate
their employees. Analyze the strengths and weaknesses of the motivation practices of
Vietnam airlines and the flaws of these theories.
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MAIN BODY
I. CULTURE:
1. VIETNAM AIRLINES CULTURE:
a)Three levels of culture in Vietnam airlines
Apply schein’s model
 Level artifact:
The level of artifact includes what people can see or feel when they entering an
organization, it may include process, structure or physical part, visible part etc.
(Schein, 1977)
The Vietnam airlines brand is associated with the familiar golden lotus symbol, the
flower bearing the distinctive image of Vietnamese culture.
Vietnam airlines have built their image as a modern, professional and high-quality
airline imbued with Vietnamese culture. They create synchronization in product and
service designs (aircraft interior and exterior, uniform, physical space, office design,
etc.) with the famous golden lotus symbol and the main color is blue.
The services of Vietnam airline are highly appreciated in their professional working
style.
With the slogan “be proud-reach further”, Vietnam Airlines is becoming one of the
leading airlinesin Vietnam and is reaching out to the world.
 The national airline brings the image and culture of Vietnam to international
friends. It is easy to see the identity of the business as a high-end airline that
emphasizes traditional values, aims to be luxurious, courteous and thoughtful in
its service.
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 Level values:
This is a level less visible than artifact level. This level provides the basic meaning of
forming the artifact level. These are the values and rules of behavior that represent the
organization (Schein, 1977).
Philosophy
o Safety comes first.
o Customer centricity, Organizational development based on customer trust
o Appreciate the value of the employee. Building a working environment with a
fair remuneration policy, maintaining solidarity and linkages among all
members.
o Always improving, innovating and creating
Goals:
o Becoming the third largest airline in terms of size in Southeast Asia
o Being the top 10 airlines favorite of Asian customers
o Converted to digital airlines
o Continue to improve towards 5-star airline standards
Strategies:
o Developing and opening more domestic and foreign flight networks to serve
customers.
o Invest in improving aircraft maintenance and technology.
o Currently, the trend of Low Cost Carriers (LCC) is developing strongly with
the emergence of low-cost airlines entering the Vietnamese market. Vietnam
airlines have implemented a multi brand strategy with two subsidiaries, Jetstar
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Pacific Airlines and VASCO (Vietnam Air Service Company) to develop LLC
as a tool to compete with low-cost airlines.
This strategy aims to:
- Maintain market share and competitiveness.
-Expand the network of flights and flight hours to meet the needs of customers.
 Basic assumptions:
These are often intangible things that only those active in the business can understand
and implement. The Basic underlying assumptions are difficult to describe, and should
only be understood by those who are familiar with the way the organization works.
These are things that are not covered by the organization's laws, but everyone
implicitly understands and obeys them (Schein, 1977).
According to an interview with Mr.Bui Thanh Son - Head of baggage control
department at Vietnam airlines international airport. Due to the characteristics of the
airline industry, each job requires the participation of many different departments. For
example, when a customer books an airline ticket, the ticket office will take over
information about the passenger and the passenger's baggage. The information about
the baggage is passed to the baggage control team to help them sort; Passenger
information is taken to the boarding passenger guide team. Such jobs require rapid
communication and coordination between departments with different specialized
functions (Son, 2021).
Management level encourages people across departments to build good relationships
for effective coordination. The departments often take turns sending people from their
team to other teams to communicate.
This brings high efficiency at work, and solves risks arising in the working process.
For example, when computer communication systems malfunction, employees can
contact each other by personal phone to temporarily record important information and
send it to other teams, avoiding work status delayed.
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b) Culture type of Vietnam airlines:
Apply Handy’s culture typology (Cacciattolo, 2014):
o Centralization is assessed at a high level, authority is concentrated on the heads
of departments.
o Formalization is assessed at a high level, employees are divided between work
with clear procedures and processesCulture type of Vietnam airlines:
According to the Handy’s model, organizational culture of Vietnam airlines is the role
culture. Due to the specificity of the aviation industry, there are many departments
with different functions. Power reside in the head of each department, they take all
informations. In each department, each person will be responsible for performing a
specific task and role corresponding to his or her expertise.
o Advantages:
-The organisational hierarchy is well defined and well-implemented.
-All employees understand their duties and duties.
-All procedures and procedures are clear.
o disadvantages:
-Employees who are divided according to their expertise may become less adaptable,
unable to assume other roles.
II. Power and politics:
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1. Power and politics in Vietnam airlines:
a) Power base – power tactics:
 Power bases:
Vietnam airlines' managers use position power to divide and assign tasks for their
subordinates to perform. However, their power is limited within the boundary of their
position, they can only assign tasks within the boundary of that job. Position power
allows managers to have some additional powers such as legitimate power, reward
power and some coersive categories of power (John A. Wagner III, 2004).
In fact, depending on the environment and the circumstances, legitimate power often
comes with equity, "since I've done this for us you have to do what I assign to make
up for it." Managers at Vietnam airlines want their followers to believe that they have
done work under the responsibility of a manager to serve the benefit of the whole
team, so they want their employees to seriously perform their tasks that they entrust.
In addition, they use the reward power within their scope to influence people to work
and improve performance. For example, employees who do well on a task will have
the opportunity to be rewarded for their performance. In addition, managers record the
performance of employees to evaluate and promote them to higher positions.
 Power tactics:
There are a number of power tactics that managers at vietnam airlines often apply to
force people to perform their duties:
o Rationality: Make requests with carefully prepared information and facts
along with a clear plan (Fairholm, 2009)
Managers will explain in detail the plan and discuss with staff before implementation.
They make sure everyone understands the importance of a project and the overall
goals of the team.
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They use the work break down structure model, divide the work into small tasks and
assign it to capable individuals.
For example, when there are diplomatic missions from other countries, the teams in
charge of those flights need to meet and plan the specific tasks of each person. Each
person will be assigned a specific task such as making a map of the areas that the
delegation will pass through to erect barriers, pick up visitors, instruct them to move
to private cars, etc.
Advantages:
-Help motivate employees to work because they understand the importance of their
duties.
-All tasks are explained carefully from the beginning to minimize mistakes that can
occur in the working process
o Personal appeals: Use friendship and loyalty to make an impact when making
a request (Fairholm, 2009).
The management level always tries to create a harmonious and solid working
environment among everyone. They encourage everyone to eat lunch together or
organize separate parties for each department.
Advantages:
Good relationships make communication and working together easier.
Disadvantages:
Affinity can lead to tolerance for a colleague's misbehavior
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o Consultation: Encourage everyone to participate in planning, making
decisions processes (Fairholm, 2009).
. Advantages:
Help employees feel respected and give their own opinion
o Exchange: Ask people to do the job and do what they want in return (Fairholm,
2009).
Advantages:
Motivate employees by responding to their wishes before asking them to work
Disadvantages:
Fulfilling a person's wishes may cause them to want more when asked to do the job
the next time they come.
b) Political behaviors:
Politics: trong sách Educational_Administration_Theory_Wayne.pdf
 Coalition building is the process of individuals banding and working together
to achieve common goals ( WAYNE K. HOY; CECIL G. MISKEL, 2008)
In each department, people aim to cohesion at work, this spirit is encouraged by
managers to their employees. Building a good relationship helps information transfer
quickly between people, work more smoothly. When having difficulty at work, both
managers and employees can discuss and seek help.
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 Thanks to the participation and mutual help of everyone, this will help each
individual complete his or her tasks.
 Reciprocity: Do something for the group or for a certain individual that makes
that individual feel obligated to make a request in return ( WAYNE K. HOY;
CECIL G. MISKEL, 2008).
The management of Vietnam airlines aims to ensure fairness at work, not only
between employees but also between management and employees. "If you do it for
me, I will do what you want." For example, when employees complete assigned tasks,
they want feedback about their work, the manager will have the responsibility to give
them feedback and provide them with detailed feedback for improvement. In an
interview with Ms.Giang-an airline reservation agent (Giang, 2021), she said that
management records employees' work history, their monthly KPIs to evaluate rewards
and promotions. They guarantee that if the employee completes the assigned job well,
they will receive a worthy reward.
III. Motivation
1.Motivation content theory:
Herzberg’s Two factor theory (Herzberg, et al., 1993)
 Extrinsic Factors (Hygiene factors):
According to (Herzberg, et al., 1993) ,extrinsic factors do not increase employees's
work motivation, but only minimize and prevent their dissatisfaction from happening
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in the working process. These factors serve to create a work environment that meets
the basic elements for employees to feel comfortable, not causing dissatisfactions.
o Pay:
The salaries of the vietnam airlines employees are different because each department
has its own specialized jobs, so the salary levels will be different. The average salary
an employee receives is 5 million dong, higher than the average labor market wage.
o Company policies:
Employees usually work 5 shifts/week and 8 hours/shift, the day off will change
flexibly, staff in each department can deal with each other to choose the appropriate
day off (Due to the nature of work at the airport, there is always a need for manpower
at all times, so it is impossible to choose a day that all staff members take leave). This
policy gives people more flexibility in their daily work.
Flexible working hours according to flights, there are shifts designed to be more
flexible for employees. For example, they can also choose to work 2 shifts / week but
each shift lasts 24 hours.
For night shift work, staff are allowed to go home at 6:00 am the next morning and
return to work in the afternoon (from 1:00 pm).
There will be 12 to 18 days off per year (according to Vietnamese labor law).
Employees are provided with lunch break and dinner break (for the night shift must
stay in the company), some specific jobs are provided with a surcharge for meals.
o Physical Working conditions:
Employees' working environment is provided with all necessary equipment such as air
conditioning, drinking water, computers (for some departments), fire protection
systems, security cameras, etc.
o Fringe benefits:
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