ENHANCING THE COMPETENCY OF MSB''S RETAIL SALESMEN IN HANOI AREA

NATIONAL ECONOMICS UNIVERSITY
NEU BUSINESS SCHOOL

TRAN THI PHUONG THUY

ENHANCING THE COMPETENCY OF MSB'S
RETAIL SALESMEN IN HANOI AREA

MASTER OF BUSINESS ADMINISTRATION THESIS

Supervisor: DR. VU VAN NGOC

- Hanoi – 2021 –


ACKNOWLEDGEMENT
This Thesis has fully completed the requirements from the Master of
Business Administration (MBA) program in National Economics University –
Business School.
First, I would like to thank the leadership and teachers at the National
Economics University - Institute of Business Administration for organizing the
program so that I had the opportunity to attend. Through the program, I had the
opportunity to learn more and to improve my capacity to better serve my job.
Especially, I would like to thank my supervisor - DR. Vu Van Ngoc, despite
being very busy at work at the National Economics, he always gives his time and
dedicated guidance, he provided me with valuable knowledge, guidance and
supported me along the process.
Moreover, I would also like to thank the Executive Board of MSB, Head of
Retail Banking Division and my colleagues for facilitating and supporting me during
the research, as well as providing time, advice and instructions to conduct the
research. Their support was extremely important and was a determining factor in the

success of my essay.
And finally, I would like to thank my family, who supported and facilitated
me during my time in the MBA program and completing my thesis.
Thank you so much!


TABLE OF CONTENT
ACKNOWLEDGEMENT
CHAPTER 1: INTRODUCTION..................................................................1
1.1. Rationale:..............................................................................................1
1.2. Research objectives:.............................................................................2
1.3. Research questions................................................................................2
1.4. Research methodology..........................................................................3
1.5. Data Analysis........................................................................................5
1.6. Research scope:....................................................................................6
1.7. Structure of research.............................................................................6
CHAPTER 2: THEORETICAL BACKGROUND ON COMPETENCY
OF SALESMAN...............................................................................................7
2.1. Nature of competency.............................................................................7
2.2. Competency model.................................................................................9
2.2.1. Competency Iceberg Model............................................................9
2.2.2. Onion Competency Model..............................................................9
2.2.3. KSA (Knowledge, Skill and Attribute) Model..............................10
2.2.4. Model to be used on Retail Salesman in Commercial Banking
.................................................................................................................11
2.3. The component of the competency:......................................................11
2.4. Level of competency...........................................................................12
2.4.1. Benjamin Bloom's Taxonomy.......................................................12
2.4.2. Levels of competency applied to the retail Salesmen in the
Commercial Bank....................................................................................13

2.5. Competency assessment method........................................................14
2.6. The Competency Based Interview......................................................16


2.7. Factors affecting the competency of Retail Salesmen in the
Commercial Bank........................................................................................17
2.7.1. The factor in the Organization:......................................................17
2.7.2.External factors in an organization.................................................18
2.8. Job description of Retail Salesmen in a Commercial Bank.................19
2.9. Requirement for competency of Retail Salesman in a Commercial
Bank............................................................................................................20
CHAPTER 3: MSB’s OVERVIEW AND REQUIREMENT OF
COMPETENCY FOR RETAIL SALESMEN (RBOS) IN HANOI
AREA..............................................................................................................24
3.1. MSB’s overview and Human Resource..............................................24
3.1.1. MSB’s Overview...........................................................................24
3.1.2. Vision, Mission, and Values..........................................................25
3.1.3. MSB Business Result in 2020.......................................................26
3.1.4. MSB Human Resource..................................................................31
3.2. Salesman and Selling process..............................................................33
3.3. The requirement of competency in MSB.............................................38
3.3.1. Job Description of Salesman at MSB............................................38
3.3.2. Required competencies of RBO at MSB.......................................41
CHAPTER 4: CURRENT COMPETENCIES OF SALESMEN OF
MSB'S RETAIL SALESMEN (RBOS) IN HANOI AREA.......................51
4.1. Respondent’s information....................................................................51
4.2. Current competency status of RBOs at MSB Hanoi area....................52
4.2.1. Current Knowledge competency of RBOs....................................52
4.2.2. Current Skill competencies of RBOs............................................54
4.3. The Gap between Required and current competency of RBOs at

MSB Hanoi area..........................................................................................55


4.3.1. Competency Gap analysis.............................................................55
4.3.2. Gap of Knowledge of RBOs.........................................................56
4.3.3. Gap of Skill competency of RBOs................................................57
4.3.4. Gap of Attitude of RBOs...............................................................58
4.4. Reason of the Gaps...............................................................................59
CHAPTER 5: SOLUTIONS AND RECOMMENDATIONS ON
ENHANCING

THE

COMPETENCY

OF

MSB’S

RETAIL

SALESMEN (RBOs) IN HANOI AREA.....................................................61
5.1. Proposed Training solution on enhancing competency of retail
Salesmen of MSB........................................................................................61
5.1.1. Developing training methodologies..............................................61
5.1.2. Improving Training Evaluation.....................................................63
5.1.3. Build training program for RBO base on Competency
framework...............................................................................................66
5.1.4. Build training program for RBO..................................................72
5.2. Other solutions on enhancing competency of RBOs in MSB Hanoi

area. ............................................................................................................73
5.2.1. Building Role model: Successful RBO.........................................73
5.2.2. Improvements on compensation and incentive policies...............74
5.2.3. Setting up a clear career path for Sales personnel.........................74
5.2.4. Building motivational programs....................................................74
5.3.5. Developing the talent development and retention policies...........75
CONCLUSION..............................................................................................76
REFERENCES..............................................................................................78


LIST OF TALBE
Table 1.1: Survey-Response details...........................................................................5
Table 2.1: Requirement for Knowledge of Retail Salesman....................................21
Table 2.2: Requirement for Skill of Retail Salesman...............................................22
Table 2.3: Requirement for Attitude of Retail Salesman..........................................23
Table 3.1: MSB Business Result in 2020.................................................................26
Table 3.2:Questionaire table....................................................................................43
Table 3.3: Requirement for knowledge of RBO’s competency................................47
Table 3.4: Requirement for skill of RBO’s competency..........................................49
Table 3.5: Requirement for attitude of RBO’s competency.....................................50
Table 4.1: Current Knowledge competencies of RBOs...........................................52
Table 4.2: Current Skill competencies of RBOs......................................................54
Table 4.3: Current Attitude competencies of RBOs.................................................55


LIST OF FIGURE
Fig 2.1. Competency Iceberg Model..........................................................................9
Fig 2.2. Onion Competency Model.........................................................................10
Fig 2.3. KSA (Knowledge, Skill and Attribute) Model............................................11
Figure 4.1: Respondent profile for survey...............................................................51

Figure 4.2: Gap of Knowledge of RBO’s MSB Hanoi area.....................................56
Figure 4.3: Gap of skill of RBO’s MSB Hanoi area................................................57
Figure 4.4: Gap of attitude of RBO’s MSB Hanoi area...........................................58


1

CHAPTER 1: INTRODUCTION
1.1.

Rationale:
Employees are the indispensable asset and the key element of gaining

competitive advantage of an organization and together with the training as an
essential tool for its actualization. The highest level of competency, skills, and the
ability of the workforce as an organization to which influences the ability to
preserve its obtained position gain organizational performance.
Employees who possessed the knowledge and competency is also the most
important asset of an organization. For successful business management,
effectiveness and strategic management of human resources is essential. Acquiring a
qualified employee in the right place at the right time is beneficial in order to face
the needs of a business with quick response pertaining to the dynamics of business
environment. Therefore, to all companies in general, management should pay full
attention in improving the competence of the employees to ensure that the
organization’s goals and objectives will be achieved.
Vietnam Maritime Commercial Joint Stock Bank (short name is MSB) is
the first commercial bank established in 1991 during the period of economic
opening and development in Vietnam. MSB is constantly expanding its network of
operation to rise to the top of non-state banks in Vietnam, with 274 branches/
Transaction offices and 500 ATMs covering 51 out of 64 provinces in the country.

MSB’s strategic goals for human resource development in the 5-year period
of 2021 up to 2025 are as follows:
-

The creation of a sales force possessing good skills and high labor

productivity reaching the regional level.
-

Understanding the needs of the customers as well as having a better

internal coordination to build a professional service culture.
-

Human resources are of same quality to the standards of international

banks and corresponding remuneration.


2

-

To geta clear career path for each position and values for the sales force.

-

Establishing a better sales force to create a competitive advantage of

MSB with 60% over 3 years.

Understanding the strategic goals, a study was made according on
“Enhancing the competency of MSB's retail salesmen in Hanoi Area” in order to
attain the goals and improve such traits in terms of competition in Retail Banking.
1.2.

Research objectives:
Following objectives are listed below:
-

Clarification of requirements for the MSB’s Retail Salesmen in terms of

competency.
-

Analyzation on the current status and identifying the gaps between

required and current competency of MSB’s retail salesmen.
-

Proposal

of

solutions

and

recommendations

as

well

as

the

implementation for the improvement of MSB’s Retail Salesmen.
1.3.

Research questions.
To achieve such goals, the following questions must be addressed:
-

What are the necessary competency requirements or traits of a Retail

Salesmen in commercial banking?
-

What is the competency requirement of a Retail Salesmen in MSB

standards?
-

What is the current status of MSB’s Retail Salesmen in terms of

competency?
-

What are the reasons why there are gaps of competence in MSB?

-

What are the solutions and recommendations on how to improve the

competency of Retail Salesmen in MSB?


3

1.4.

Research methodology.
Data collection: both secondary data and primary data are used to find out

the requirement and current selling competency of MSB’s staff.
Secondary data: The secondary data were collected from: Selling process,
Job description, reports, Sales and Incentive policy; Vision and Mission, and other
supporting documents from the HR Department.
Primary data:
Method analysis: In the process of researching and collecting information at
MSB, two (2) methods were used to gather the primary data; In-depth Interview and
Survey.
In-depth Interview: Proven that leaders are the ones who understand the
most about the job as well as the requirements of the job for the staffs. Therefore,
open-ended questions were given to identify the staff's current capacity; Ten (10)
people were selected to participate on the In-depth Interview. This includes (1)
Head of the Retail Banking Division (HRBD), one (1) of the Heads of Regional
Level 1, (3) Super Branch Managers and five (5) Sales personnel. Appointments
were made in accordance with the implementing Rules and Regulations.

Guidelines of the interview: There are 10 questions given to the subjects
which took 30 minutes per individual to complete.
Location of interview: Head office located at Building 54A Nguyen Chi
Thanh, Hanoi, and three (3) Super branches in Hanoi City.
Head of Retail Banking Division (HRBD): The purpose of this interview
was to find out the top management’s point of view in Retail Banking regarding on
the sales resources. With this, the researcher could determine the views and ideas on
the requirements, also the importance of the said trait per individuals and the way of
evaluating the strength and weaknesses of the employees.
Head of the Regional Level 1 (HOR 1), Manager of the northern branches.
The purpose of interview is to get the person’s point of view and ideas on being the
Regional Banking Officer who’s in charge of the Northern market who possesses


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the best knowledge and understanding on market share.
Three (3) Super Branch Managers: The aim of this interview was to get
opinion on the competence of the salesmen –Retail Banking Officer (RBO) from
the point of view of the person who directly manages and supports as well as
assisting the Sales team with technical and operational issues all throughout from
the moment the customer arrives up to the end of the transaction.
Five (5) Salesmen – Retail Banking Officers (RBOs): the aim of the
interview is to get the individual understanding about the task, the position directly
in charge of sales duties. Participants shared on how to self-assess and offer some
necessary supporting tools of the company from a direct sales perspective.
The summary of the In-depth interview has been collected and recorded in
Appendix 1 for Manager and Appendix 2 for Sales personnel.
Survey: The main tool for gathering data is the questionnaire given to the
subjects.

Respondents: Leaders and Managers, Retail Banking Officers (RBO) and
Peers.
Sample size: 105 people from 10 branches in Hanoi area and 5 Leaders of
RB division, including 70 RBOs, and 20 Peers, 10 Branch managers, 02 Top leaders
and 03 Super Branch Managers.
Survey design:
The survey consists of 3 parts.
Part 1: Introduction of the purpose of the survey to the respondents.
Part 2: Filling up the provided form for basic information such as: Name,
age, gender, number of years working at MSB.
Part 3: The survey is designed for Respondents to assess the current
qualifications corresponding to the required capacity of the RBO at MSB Hanoi.
The researcher set up the questionnaire which includes sixteen (16) closedended questions including a comment section. The questionnaire is divided into
three (3) parts which includes 4-7 questions and a space for taking down comments.


5

Staff Survey: Questionnaires were sent to the staffs for quick assessment,
evaluating, and comparing the current situation with the requirements.
Questionnaires were sent via Survey Monkey and was forwarded to the staff via email for fast and most economical form of finding results.
Leader survey: Like the staff, the questionnaires were sent via e-mail to the
executives to identify the current status of the staff in terms of competency.
- Sampling method: Choosing a convenient sampling method for evaluation
can be cost-wise, rapidly, and allowing more information to be collected.
- Result: After conducting survey, researcher received answers from 95 out
of the 105 people.
- Data collected: Determine the difference between the required and the
current status of the competency. See table below:
Table 1.1: Survey-Response details

Group
Top Leaders
Branch managers
Salesmen
Peer
Total
1.5.

Expected
response
5
10
70
20
105

Actual response

Rate (%)

5
10
65
15
95

100%
100%
93%
75%

90%

Data Analysis
Secondary data (documents, reports, sales processes, policies, regulations,

job descriptions) was used as the basic framework. This MSB data provides the idea
on how to properly process and understand the full range of MSB competencies.
Combining both primary and secondary data, and due to the small quantity of
participants, Microsoft Excel is used for quick analyzation of the collected data.
Other tools were also used for data analysis, such as Summary, tables, and charts for
illustrating the analysis and recommendations.
After the assessment, we define the requirements of each competency. The
rate of each competency is measured by averaging its components. Gaps were


6

found by comparing the required competencies and assessment results.
1.6.

Research scope:
Research objects: The research focuses on the competency of retail sales

force of MSB. Although having 12 divisions, only the specialized division which
consists of employees around 1,000 individuals in Hanoi is focused.
Geographical scope: MSB’s employees on the 10 branches in Hanoi City.
Timing:
 The secondary data were collected within two years (2019-2020)
 The primary data was collected from April to June 2021
 A recommendation is proposed for the period of 2021 to 2026.

1.7.

Structure of research
The structure of the research is listed below, in addition, other parts are also

included such as summary, conclusion as well as the appendices.
 Chapter 1: Introduction
 Chapter 2: Theoretical background on competency.
 Chapter 3: Overview of MSB and the requirement of competency
MSB's retail salesmen (RBOs) in Hanoi area
 Chapter 4: Current competencies of salesmen of MSB's retail salesmen
(RBOs) in Hanoi area
 Chapter 5: Solutions and recommendations on enhancing the
competency of MSB's retail salesmen (RBOs) in Hanoi area.


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CHAPTER 2:
THEORETICAL BACKGROUND ON COMPETENCY OF
SALESMAN
2.1. Nature of competency.
Researchers have conducted a lot of studies about competency although it is
not the newest concept due to its intangible nature. In this chapter, several
definitions were made by famous authors to define the term “competency” in full
detail. With these definitions, comprehensive understanding of the term
“competency” is obtained.
Some scholars see "competence" as a combination of practical and
theoretical knowledge, cognitive skills, behavior, and values used to improve
performance; or as the state or quality of being adequately or well qualified, having

the ability to perform a specific role. For instance, management competency might
include systems thinking and emotional intelligence, and skills in influence and
negotiation.
There are many scholars have provided definitions of competence, the
definition

is

referred

in

McClelland (1973)
uses "competence" as the first term in the study "Test of competence rather than
intelligence". McClelland and colleagues conceptualized a broad array of
capabilities. The definition of a job competency requires that the person's intent is
understood, not merely that the person's behavior is observed. They used operant
methods like audio tape recordings of Critical Incident Interview, which they called
Behavioral Event Interviews and videotape recording of simulations with inductive
research designs comparing effective with ineffective or even fewer effective
performers. This approach was focused on the “person,” rather than the tasks or job.
Following that, the studies on competence in the field of human resource
management such as: Boyatzis (1982): “Competence lies in the individual's capacity


8

which superposes the person's behavior with needed parameters as the results of this
adaptation make the organization to hire him”. Albanese (1989): Competences are
individual's characteristics which are used to effect on the organization's

management. Woodruff (1991): “Competence is a combination of two topics of
personal competence and merit at work. Personal merit is a concept which refers to
the dimensions of artificial behavior in order to show the competence performance
and merit at work depends on the competences of the person in his field”. Standard
(2001) ICB (IPMA Competence Baseline): “Competence is a group of knowledge,
personal attitudes, skills and related experiences which are needed for the person's
success”
Competency is a collection of knowledge, skills, behavior, and power of
judging which can cause competence in people without having enough practice and
specialized knowledge. (College of Registered Nurses of British Columbia, 2009)
Hay Group (2012): “Measurable characteristics of a person which are related
to efficient actions at work, organization, and special culture”.
Seema Sanghi (2007) in the Handbook of Competency Mapping, in which
stated that “Competencies can define as skills, areas of knowledge, attitude and
abilities that distinguish high performance. These are characteristics that may not
be easily observable but rather exit under the surface-behavioral questions can
help draw out examples of these competencies”
In the researcher’s opinion, the most suitable definition of competency
applied with MSB is the one mentioned of Seema Sanghi (2007) in the Handbook
of Competency Mapping. Because it is the most general definition, reflecting the
true nature of competency.
In summary, competency is the ability of each individual in the organization
to do the job in the most effective and correct way. Competency is a set of behaviors
of each individual in an organization that is reflected in the knowledge, skills and
attitudes of individuals in the organization.


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2.2. Competency model

2.2.1. Competency Iceberg Model
McClelland put forward Competency Iceberg Model in 1973, which
illustrates the compositions and connotations of competence vividly, and was
generally accepted by the academes and verified by practice again and again. In
Figure 1, The model considers that there are five types of competence: knowledge
(skills), social roles, self-image, personality, motivation. Among the above,
knowledge (skills) is said to be the easiest to change, social roles, self-image,
personality and motivation located below the surface were considered difficult to
change, attain or develop.

Fig 2.1. Competency Iceberg Model
2.2.2. Onion Competency Model
Aside from the Competency Iceberg Model, the Onion Competency Model
is another famous theory model (Figure 2). Proposed by Richard Boyatzis, an
American scholar in his book “The Effective Managers: High Performance
Competency Model”. In fact, the model can be regarded as another point of view to


10

explain the Competency Iceberg Model. Among all the characteristics, based on the
structure, the surface are the basic skills and knowledge, and the inner core is the
potential characteristics.

Fig 2.2. Onion Competency Model
2.2.3. KSA (Knowledge, Skill and Attribute) Model
KSA (Knowledge, Skill and Attribute) Model developed by Parry (1996) was
quite used to analyze organization’s HR competency. Therefore, the researcher
would like to take this model as a theorical framework. According to this model,
competencies have foundation layers of abilities, personality traits and other

personal attributes. The pillars of acquired learning are traditional KSA
(Knowledge, Skill and Attitude) where depth and breadth or of learning are
assessed. Integrating KSA with foundational layers becomes a secondary
competency (sub-competency). All of them work together when performing a
specific and demonstrate.


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Knowledge
Skill

Competency

Attitude

Fig 2.3. KSA (Knowledge, Skill and Attribute) Model
2.2.4. Model to be used on Retail Salesman in Commercial Banking
KSA Model developed by Parry (1996) will be applied in Commercial
Banking because it is suitable to cover and consider the factors, KSA model is
highly useful in assessing the competency of an individual. KSA model focuses on
achievement on the output or result expected from persons rather than the
traditional approach of focusing on employees’ successful completion of work,
which might not result in obtaining the outputs or results that are valued by investor
or other constituents.
2.3. The component of the competency:
There are various components of competency. In the words, it is the
combination of observable and measurable knowledge, skills, abilities, and personal
attributes, which contribute to enhanced employee’s performance and organization’s
success ultimately. Following the KSA model developed by Parry (1996)

components of competency can be listed as follows:
Knowledge: all the information, understanding, and skills gaining through
formal education or experience. Also, it is the state of knowing about facts or
situation. By the virtue of philosophers, knowledge is divided into three types:
Personal knowledge, Procedural knowledge, and Propositional knowledge.
Applying and sharing one’s knowledge is critical to an individual and organizational


12

success.
Skill: defined as the ability to do something well or developed proficiency or
talent in mental operations or physical process or the abilities to use one’s
knowledge effectively and readily in execution or performance. Normally, skill is
divided into four main levels such as: Imitation (observing available patterns),
Application (acting by instructions), Practice (using suitably with specific situation)
and Creation (becoming instinctive reflect)
Attitude: expressed on how an individual perceives and responds to reality
showing attitudes and motivations for work.
2.4.

Level of competency.

2.4.1. Benjamin Bloom's Taxonomy
Bloom identified six levels within the cognitive domain, from the simple
recall or recognition of facts, as the lowest level, through the increasingly more
complex and abstract mental levels, to the highest order which is classified as
evaluation. A description of the six levels that represent intellectual activity are
listed below.
Knowledge: This initial level involved recalling basic facts, processes, and

methods, or patterns and structures.
Comprehension: Comprehension involves demonstrating an understanding
of facts and ideas by organizing, summarizing, translating, generalizing, giving
descriptions, and stating the main ideas.
Application: Application involves using acquired knowledge—solving
problems in a situation by applying acquired knowledges, facts, techniques and
rules. Learners should be able to use prior knowledge to solve problems, identify
connections and relationships on how they will adopt in new situations.
Analysis: Analysis involves examining and breaking information into
component parts, determining how the parts related to one another, identifying
motives or causes, making inferences, finding evidence to support generalizations.
Its characteristics include Analysis of elements; Analysis of relationships; Analysis


13

of organization.
Synthesis: Synthesis involves building a structure or pattern from diverse
elements; it also refers to the act of putting parts together to form a whole. Its
characteristics include Production of a unique communication; Production of a plan
or proposed set of operations; Derivation of a set of abstract relations.
Evaluation: Evaluation involves presenting and defending opinions by
making judgments about the information, the validity of ideas, or quality of work
based on a set of criteria. Its characteristics includes: Judgment in terms of internal
evidence; Judgment in terms of external criteria;
In the 2001 revised edition of Bloom's taxonomy, the levels were replaced,
and the order is rearranged: Remember, Understand, Apply, Analyze, Evaluate, and
Create (rather than synthesize).
Remembering: Exhibits memory of previously learned material by recalling
facts, terms, basic concepts, and answers.

Understanding: Demonstrates the understanding of facts and ideas by
organizing, comparing, translating, interpreting, giving descriptions, and stating
main ideas.
Applying: Solving problems of a situation by applying acquired knowledge,
facts, techniques, and rules in a different way.
Analyzing: Examining and breaking information into parts by identifying
motives or causes. Make inferences and find evidence to support generalizations.
Evaluating: Presenting and defending opinions by making judgments about
information, validity of ideas, or quality of work based on a set of criteria.
Creating: Compilation of information together in a different way by
combining elements in a new pattern or proposing alternative solutions
2.4.2. Levels of competency applied to the retail Salesmen in the Commercial
Bank
Level 1 (Awareness): At this level, people have awareness of the
behavior/knowledge requirements but may not appreciate or understand the concept


14

fully.
Level 2 (Understanding):

People understands the behavior/knowledge

requirements but supports to apply equally.
Level 3 (Application): People have detailed knowledge understanding and
application of the requirement. Capable on assisting others in applying the
requirement by some extent.
Level

4

(Coaching):

People

have

highly

developed

knowledge,

understanding and application of the competency required to be successful in the
job. Furthermore, people enlighten the others in order for them to develop.
Level 5 (Master): People can champion/cascade/promote required behaviors
needed across the team/department and think at the organizational/strategic level.
2.5.

Competency assessment method.
There are many methods on how to assess staff’s competency. The

commonly used method is the 360-Degree Feedback Method.
360-Degree Feedback is a method used by the staff to assess themselves, to
assess their manager, their staff, their peer that directly supports as well as the
customer. This method assists each individual in understanding their strength and
weaknesses and provides insight into the aspects of their work that require
professional development. An advantage of 360-degree feedback is its difference
from the traditional assessment method where there is only one person to assess or

evaluate the whole organization. A wider view of the employees’ competency can
be covered by this method. But it also has some disadvantages, such as: Time
consuming and more administrative complexity. Extensive giving and receiving
feedback can be intimidating. Training and significant effort to work effectively are
required.
Self-assessment by staff: Self-assessment is how the employees evaluate.
Assessment by leaders and managers or supervisors: Leaders and
managers have the authority over the staffs. Assessment is made according to the
following: Knowledge, Skill and Attitude of their staff. This method often happens


15

monthly, quarterly, or yearly. This method has many advantages and one of them is
that the assessment can be made without taking too much time. However, this
method also possesses some disadvantages, such as: emotional influence is a factor
which somehow cannot be avoided, and every department head has different point
of view individually or as a group.
Assessment by Peers: the evaluation will be sent to the other people from
another department to assess. Advantage: The evaluation is objective, assessing the
employee's attitude towards the colleagues within the organization. Disadvantage:
Most colleagues from other department often feel uncomfortable having to
comment on another person. Another disadvantage is that the avoidance of negative
comments and the reliance on the emotion which leads to the inaccuracy in the
results.
Assessment by Customers: Every day, salesmen communicate with the
costumers in order to sell product, solving problems, or negotiate …So, the
customers can evaluate the performance, and competency. The advantage of this
method is it will show the requirements of customer about the services, behavior,
and experience of salesmen. But it also has disadvantage such as emotion of

customers.
Competency assessment applied for Retail Banking in Commercial
Bank.
The method to assess competency in Retail Banking: Assessment by Peers
who are customers, Leaders/Managers and Self – assessment that mentioned above.
This method provides more comprehensive view of staff’s performance, increase
credibility of performance appraisal.
To assess competency of salesmen that involves Selling Process in the bank.
Four (4) steps were applied as shown below:
Step 1: Developing competency profile: In this step, the creation of a job
profile and describing the Retail Banking Officer’s competency in terms of
knowledge, skills, and attitude which are job-based and suitable in the context of


16

selling process. Target of this step is to determine the necessary requirement for a
representative to complete the work when selling process is involved. It aims is to
answer the question: What is the require competency in the selling process? The
competency survey is built with the following information, each competency has 5
levels to assess.
Step 2: This step creates a person’s profile, rate the current level of
competency in terms of knowledge, skills and attitude which were identified in Step
1. The study applies interviews and surveys based on Selling Process.
Step 3: This step is to find out any gaps between the required and current
competency in terms of KSA model’s component. This step answers the question:
What are the gaps between required and current competencies of Commercial
Bank’s Retail Salesmen?
Step 4 is Developing a learning plan and identifying development activities
to reduce a gap between requirement and current level of competency.

Solution will be suggested to improve the gaps of retail salesmen’s
competency.
2.6.

The Competency Based Interview
The Interview to the identification and assessment of competence was

described in detail by Boyatzis (1982). Boyatzis used a Behavioral Event
Interview (BEI) as a method for determining the level of competence (Boyatzis, r.
e., 1982, p. 41) and this laid the foundation for the method of CBI (Competency
Based Interview). The CBI is the more specific version of the BEI and then, an
interesting question came. If CBI is also more effective in the terms of its validity
and reliability?
The method of the Behavioral Event Interview (BEI) deals with the
analysis of past events that emphasizes on the facts and examples from real
situations. The method of BEI is based on Flanagan’s critical incidents technology
(Flanagan, 1954), which was developed later by the Harvard Professor McClelland
(1998). The basic idea is that a past behavior can predict a future behavior. The aim


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is to obtain a detailed description of the behavior in the performance of work.
The Competency Based Interview (CBI) is also a form of a behavioral
interview; however, it differs from the method of the BEI. Kessler describes that
“The Competency based interviews are structured and use behavioral questions to
help the interviewer assess candidates based on critical competencies identified for
the position,” (2006, 26 p.). The CBI has two more characteristics that contributes
to its efficiency. In particular, an analysis which precedes, it allows to aim the
questions at characteristics which are crucial for the success of the position. The

analysis of the working position is often used to identify the corresponding behavior
that will lead to a good work or performance and is supplemented by the analysis of
a real behavior in the position and the characteristics of its wearer.
2.7.

Factors affecting the competency of Retail Salesmen in the Commercial

Bank.
2.7.1. The factor in the Organization:
- Strategy: If the human resource factor is one of the developmental
strategies of the enterprise, the capacity of the sales team is interested and
developed. Strategies to increase the revenue and profit of the business means
improving the skills, knowledge, and professionalism of the sales force. Training for
the sales force is also given more attention.
- Motivation: Motivation is the way that encourages salesman and make
the effort people to work harder. Motivation is an internal factor that makes
employees always work hard despite of difficulties and obstacles. If the motivation
to work is right and large enough, the working efficiency will also increase
accordingly. A solution to increase work motivation can be applied: Praising all
efforts exerted and encouraging employees to be more successful. Application of
fair and worthy treatment, listening to the employees’ concerns, ensuring
employees’ work-life balanced, training activities, and improvement in their skills.
To help employees see a career path, creating a dynamic and effective working
environment.


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- Performance management: Performance management is a corporate
management tool that helps managers to monitor and evaluate employees' work.

Performance management's goal is to create an environment where people can
perform to the best of their abilities to produce the highest quality of work
efficiently and effectively most. Performance management in the organization
should link with sales activities with the organizational goal. Showing the criteria
for the best salesmen such as behavior, results, characteristic that is necessary for
carrying out the job.
- Organization culture: Organizational culture is defined as the underlying
beliefs, assumptions, values, and ways of interacting that contributes to the unique
social and psychological environment of an organization. Organizational culture can
manifest itself in a variety of ways, including leadership behaviors, communication
styles, internal distributed messages, and corporate celebrations. Given that culture
comprises so many elements, inevitably that terms for describing specific cultures
varies widely. Some commonly used terms for describing cultures include
aggressive, customer-focused, innovative, fun, ethical, research-driven, technologydriven, process-oriented, hierarchical, family-friendly, and risk-taking. If a business
with a customer-centric culture, the selling competency of salesmen is focused and
developed.
2.7.2. External factors in an organization.
- Economic environment: The term economic environment refers to all the
external economic factors that influences buying habits of consumers and
businesses therefore affects which the performance of an organization. These factors
are often beyond an organization's control and may be either large-scale (macro) or
small-scale (micro). The economic environment refers to all the economic factors
that affects commercial and consumer behavior. The economic environment consists
of all the external factors in the immediate marketplace and the broader economy.
These factors can influence a business, i.e., how it operates and how successful it
might become? In the context of economic profit, the organization will invest more