So sánh văn hóa doanh nghiệp và sự thay đổi văn hóa doanh nghiệp tại công ty abb việt nam và công ty abb singapore

VIETNAM NATIONAL UNIVERSITY, HANOI
HANOI SCHOOL OF BUSINESS

HOANG PHUONG NGA

SERVICE RECOVERY FOR VIETINBANK TRADE
FINANCE OPERATION:
SITUATION AND SOLUTION FOR IMPROVEMENT

Major: Business Administration
Code: 60 34 05

MASTER OF BUSINESS ADMINISTRATION THESIS

SUPERVISOR: DR. NGUYEN THI PHI NGA

HANOI - 2012


TABLE OF CONTENT

ACKNOWLEDEMENTS
ABSTRACT
TÓM TẮT
TABLE OF CONTENT
LIST OF TABLES
LIST OF FIGURES
INTRODUCTION
CHAPTER 1: LITERATURE REVIEW
1.1.

Definitions

1.1.1.

Culture

1.1.2.

Organizational Culture

1.2.

Cultural layers & cultural diversity

1.2.1.

The out layer (Explicit Products/Artifacts)

1.2.2.

The middle layer (Norms and Beliefs/Espoused Beliefs and Values)

1.2.3.

The core (Basic Assumptions/Underlying Assumptions)

1.3.

Sub-culture

1.4.

The importance of organizational culture

1.4.1.

Coordination

1.4.2.

Integration

1.4.3.

Motivation

1.4.4.

How well can organizational culture do its functions?

1.5.

Culture analysis – OCAI method

1.5.1.

General about culture analysis methods

1.5.2.

Advantages of OCAI method

1.5.3.

Dimensions in OCAI

1.5.4.

Questionnaire applied in OCAI

1.5.5.

Scoring the OCAI

1.5.6.

What can be found from OCAI result

1.6.

Methodology applied in the thesis

1.6.1.

OCAI method

1.6.2.

Interview method

1.6.3.

Other analysis methods

1.6.4.

Focused points

CHAPTER 2: CULTURE ANALYSIS IN ABB PP DIVISIONS


2.1.

Introduction about ABB Singapore and ABB Vietnam

2.1.1.

Introduction about ABB Group

2.1.2.

Introduction about ABB Vietnam (VNABB) and ABB Singapore (SGABB)

2.2.

Organizational culture comparison between SGABB‟s and VNABB‟s PP Division

2.2.1.

Different dominant cultures but same major culture types

2.2.2.

The current dominant culture gains cultural congruence in both countries

2.2.3.

Differences in expected dominant culture types

2.2.4.
Less cultural congruence for the expected dominant cultures & the inevitable emergence of
Clan and Adhocracy
2.2.5.
2.3.

Diversity in expectation of employee groups

Factors influencing organizational cultures in the two Divisions

2.3.1.

The vital role of standardization in ABB‟s operation

2.3.2.

Market situation and market orientation in ABB Group

2.3.3.

Asian culture – a strong factor supporting for Clan Culture

2.3.4.

Adhocracy Culture – an answer to the dilemmas

2.3.5.

Business nature & the major sub-groups

CHAPTER 3: RECOMMENDATIONS
3.1.

The importance of defining culture profile

3.2.

Culture incongruence requires leadership involvement

3.2.1.

Leaders are to listen and respect the needs of employees.

3.2.2.

Vision the future culture to pursuit

3.2.3.

Define the culture transformation process

3.3.

Visioning the transformation

3.3.1.

ABB Vietnam – PP Division

3.3.2.

ABB Singapore – PP Division

3.4.

Operational change for the cultural change

3.4.1.

In ABB Vietnam – PP Division

3.4.2.

In ABB Singapore – PP Division

3.5.

International cooperation and global resource utilization

CONCLUSION
REFERENCE

APPENDIX 1: VARIOUS CATEGORIES USED TO DESCRIBE CULTURE
APPENDIX 2: ENVIRONMENTAL VARIABLES AFFECTING MANAGEMENT FUCTIONS
APPENDIX 3: DENISON ORGANIZATIONAL CULTURE SURVEY
APPENDIX 4: QUESTIONAIRE SAMPLE
APPENDIX 5: CULTURE PROFILE COMPARISION

VIETNAM VS. SINGAPORE


CULTURE COMPARISON AND CULTURE CHANGE –
CASE STUDY OF ABB VIETNAM AND ABB SINGAPORE
Nguyen Thi Hong Lien
MBA Candidate, 2008 – 2010
School of business
Vietnam National University, Hanoi
Supervisors: Dr. Dao Thi Thanh Lam
Hà Nguyên, MBA

INTRODUCTION
Purpose
The thesis focuses on the following points:
-

Base on Organizational Culture Assessment Instrument to find out the cultural similarities and
differences in the two Divisions in ABB Vietnam and ABB Singapore in terms of dominant cultures,
culture congruence, expected dominant culture and factors that drives the needs for culture change.

-

Define predominant factors that should be taken into consideration for culture change so as to increase

business performance

-

Give recommendation for cultural change including action plan for each Division.

The research scope
There are two defined research scope dimensions in this thesis to distribute a solid analysis and
practical recommendation
-

The factors to compare between the two Divisions are concentrated on six categories: (1) Dominant
Characteristic, (2) Leadership Style, (3) Management of Employees, (4) Organizational Glue, (5)
Strategy Emphases and (6) Criteria of Success

-

The cultural comparison units are ABB Singapore‟s and ABB Vietnam‟s Power Product Division.

Methodology
-

The thesis use both quantitative and qualitative analysis, mainly based on OCAI method.

-

The information is collected from diverse sources: survey, interview, observation, secondary data…

-

Details are mentioned in 2.2 Applied method in the thesis

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Structure of the thesis
Literature
Review

Culture analysis
in ABB PP
Divisions

Definitions of Culture
and Organizational
Culture

Recommendation

Introduction about
ABB Singapore &
ABB Vietnam

The importance of
defining culture profile

Cultural layer and
cultural diversity

Applied methods in

the thesis

As culture
incongruence occurs,
leadership involves

Sub-culture

Organizational
Culture comparison

Visioning the
transformation

The importance of
Organizational
Culture

Factors influencing
the organizational
cultures

Operational change for
the culture change

International
cooperation and global
resource utilization

Culture analysis

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CHAPTER 1: LITERATURE REVIEW
1.1.

Definitions
1.1.1. Culture

According to Geert Hosftede definition, “Culture is the collective programming of the human mind that
distinguishes the members of one human group from those of another. Culture in this sense is a system of
collectively held values.”

1.1.2. Organizational Culture
This thesis used the definition of Edgar H.Schein for Organizational Culture: The culture of a group can
now be defined as a pattern of shared basic assumptions that was learned by a group as it solved its problems
of external adaptation and internal integration, that has worked well enough to be considered valid and,
therefore, to be taught to new members as the correct way to perceive, think, and feel in relation to those
problems.

1.2.

Cultural layers & cultural diversity

Cultures differ from each other in many levels, from absolutely visible points to deeply profound factors.
Researchers categories cultures into many levels. For examples, Fons Trompenaars divides culture into 3
levels which are the out layer - Explicit Products, the middle layer - Norms and Values, the core - Basis
Assumptions while Schein categorizes culture into 3 level: Artifacts, Espoused Beliefs and Values,
Underlying Assumptions. While the two researchers used different terms to categorize layers of culture, there

are critical common points in their view.
First, about the influences and how easy to realize one layer, the out layer of culture is easy to realize
but difficult to decipher as it is the outcome of deeper layers. The deeper of the layer, the stronger influence it
has but it is more difficult to be realized. When it comes to the core layer, there are few profound assumptions
which are taken for granted and decode all the factors in remaining layers.
Second, in term of cultural diversity and how can people accept culture differences, the level of
diversity and acceptance varies through cultural layers. The diversity in every single layer, then the
combination of all the differences in all layers leads to cultural diversity and cultural conflicts also. In the out
layer, with its apparentness, the layer shows numerous obvious and incoherent differences between cultures
and can make a new comer easily feel overwhelmed. Luckily, to a certain level, people still can accept these
differences when they are aware of that. However, to deeper level, even when the differences are figured out
or verbalized, they are still difficult to be accepted as they already became “philosophy”, “rules”, “correct or
wrong” in mindset of people. This difference in the level is indeed the factor lead to cultural conflicts.

1.3.

Sub-culture

Many organizations or communities comprise diverse subcultures whose constituents conform only in
varying degrees to the community‟s character. Therefore, it should be taken into consideration that
generalizations in culture profiles will produce only an approximation, or stereotype of community or
organization character. To have a deeper understanding about an organizational culture, it is necessary to have
an insight about its subcultures as well as their attribution to the organization‟s culture.

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1.4.

The importance of organizational culture

1.4.1. Coordination

A major complementary instrument of coordination is found in organizational culture. Two concepts of
non-structural coordination mechanism: markets and clans. Thereby, markets function through negotiations
between demand- and supply-side parties without the need for extensive structural coordination, and clans
solve coordination problems by creating an orientation for organizational members through shared values and
norms. Research into the transformation towards new forms of organizing indicates that cultural programs
have the potential to replace the previously existing vertical command and control systems.

1.4.2. Integration
Organizational culture can act as a “social glue” to keep the corporation together. Organizational culture
reminds employees of corporate higher goals, of the big picture. In view of the tendency to delegate,
decentralize, internationalize, empower, and to rely on trust, this glue that organizational culture represents
will assume an even more crucial role in the future.

1.4.3. Motivation
A strong system of clear values can endow employees with an appreciation of the value of their work that
may often otherwise be lacking due to the extensive separation and specialization of tasks in addition to
automation. For example, some organizational cultures allow and foster self-actualization through
entrepreneurship in profit center structures or implementation of an employee‟s own ideas by providing either
additional time or financial resources for their own research efforts beyond the set research plan.

1.4.4. How well can organizational culture do its functions?
Culture can be either a vital contributor or a deadly constraint for the organization on the way to
aim at its goals. Culture is beneath awareness in the sense that no one bothers to verbalize it, yet it forms the
roots of action. This made one anthropologist liken it to an iceberg, with its largest implicit part beneath the
water”
Similarly, in an organization, it is easy to see plans, strategies, structure, goals… but they are just the
floating part which is quickly changeable. However, the sunk part including norms, values, underlying
assumptions…which has a total impact on the organization is visible as well as difficult to change. Therefore,

a complete change requires both culture and strategy, goals to have correlation with each other

Culture analysis – OCAI method

1.5.

1.5.1. General about culture analysis methods
There are various methods to categorize culture because it comprises a complex, interrelated,
comprehensive and ambiguous set of factors. For examples, Deal & Kennedy proposed a dimension based on
Speed of Feedback (high speed to low speed) and a Degree of Risk dimension (high risk to low risk), Ernst
argued for People Orientation (participative versus non-participative) and Response to the Environment
(reactive versus proactive) while Hofstede focused on Power Distance, Uncertainty Avoidance, Individualism,
and Masculinity, then broaden to Long-term orientation.

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1.5.2. Advantages of OCAI method
TABLE 0-1: COMPARISION BETWEEN OCAI METHOD AND OTHER METHODS
OCAI Method

Hofstede’s method

 Focus on organizational culture

 Focus on national culture

Denison’s method
 Focus on organizational
culture

 The first intervention to initiate
change

 Not mentioned

 To explain how
organisations deal with

 Base on competing values
framework that argues each

seemingly contradictory or
paradoxical goals and
demands

company can pick up a proportion
among 4 categories as their
strength to deal with internal
integration and external adaptation
 Not only point out the current

 Focus on defining only the

culture profile but also focus on
culture change by defining

 Point out the current culture

current culture but not

preferred culture

profile

preferred culture in an
organization.
 People become aware of the
current and of the preferred
culture. “Where are we now and
where do we want to or have to
go?” This can generate momentum
for change.
 Based on 6 specific categories, it is
easier to predict which measures of

 Categories are not pointed
out specifically to define

change will turn out to be
effective. Management will get



where the effects come

more grips on change.
 Resistance to change can be
anticipated, it will not happen
completely unexpected.
 It offers starting points to

 Culture changes are also

encourage employees and thus use

mentioned but in a form of

their energy and creativity that
leads to more support for change.

ideas, not step-by-step

 Not mentioned

 It is the basis for a step-by-step,
systematic change plan.
 Easy & user friendly form to



 More complicated survey to

survey for a large sample

be implemented

1.5.3. Dimensions in OCAI
Following is the two major dimensions forming the Competing Value Framework:
1. Internal Focus and Integration versus External Focus and Differentiation.

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2. Stability and Control versus Flexibility and Discretion.
The two dimensions create four quadrants each of them represents a distinct set of organizational
effectiveness indicators. These indicators of effectiveness represent what people value about an organization‟s
performance. They define what is seen as good and right and appropriate. The four clusters of criteria, in other
words, define the core values on which judgments about organizations are made. What is notable about these
four core values is that they represent opposite or competing assumptions. Each continuum highlights a core
value that is opposite from the value on the other end of the continuum – flexibility versus stability, internal
versus external.

1.5.4. Questionnaire applied in OCAI
In OCAI method, Cameron and Quinn based on a questionnaire with six categories to capture an
organization‟s culture profile. The purpose of OCAI is to assess six key categories of organizational culture
which are:

(1) Dominant Characteristic, (2) Leadership Style, (3) Management of Employees, (4)

Organizational Glue, (5) Strategy Emphases, (6) Criteria of Success
The response will produce two independence ratings of the organization‟s culture – one as it currently
exists and one as it is wished to be in the future.

1.5.5. Scoring the OCAI
Scoring the OCAI based on simple arithmetic calculations. As each alternative name A, B, C, D represents
each culture type through 6 categories, it is to take the average of each alternative (A, B, C, D) in NOW and
PRESENT to capture the organization‟s culture.

1.5.6. What can be found from OCAI result
1.5.6.1.

Four culture types based on the OCAI method

(1) THE HIERARCHY CULTURE
The significant point in the Hierarchy Culture is a very formalized and structured place to work.
Procedures govern what people do. The leaders pride themselves on being good coordinators and organizers
who are efficiency-minded. Maintaining a smooth-running organization is most critical. Formal rules and
policies hold the organization together. The long-term concern is stability and performance with efficient,
smooth operations. Success is defined in terms of dependable delivery, smooth scheduling and low cost. The
management of employees is concerned with secure employment and predictability.
(2) THE MARKET CULTURE
It is easy to see that Market Culture has a result-oriented organization whose major concern is getting the
job done. People are competitive and goal-oriented. The leaders are hard drivers, producers, and competitors.
They are tough and demanding. The glue that holds the organization together is an emphasis on winning.
Reputation and success are common concerns. The long-term focus is on competitive actions and achievement
of measurable goals and targets. Success is defined in terms of market share and penetration. Competitive
pricing and market leadership are important. The organizational style is hard-driving competitiveness.

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(3) THE CLAN CULTURE
Clan Culture can be describe as a very pleasant place to work, where people share a lot of personal
information, much like an extended family. The leaders or heads of the organization are seen as mentors and
perhaps even parent figures. The organization is held together by loyalty or tradition. Commitment is high.
The organization emphasizes the long-term benefit of human resources development and attaches great
importance to cohesion and morale. Success is defined in terms of sensitivity to customers and concern for
people. The organization places a premium on teamwork, participation, and consensus.
(4) THE ADHOCRACY CULTURE
In Adhocracy Culture, a dynamic, entrepreneurial, and creative place to work is what expected. People

stick out their necks and take risks. The leaders are considered innovators and risk takers. The glue that holds
the organization together is commitment to experimentation and innovation. The emphasis is on being on the
leading edge. The organization‟s long term emphasis is on growth and acquiring new resources. Success
means gaining unique and new products or services. Being a product or service leader is important. The
organization encourages individual initiative and freedom.

1.5.6.2.

Dominant culture type in an organization

From Quinn and Cameron‟s extensive research it was found that most organizations have developed a
dominant culture-style but an organization rarely has only one culture type. Research has shown that strong
cultures correspond with homogeneity of efforts, a clear sense of direction, an unambiguous environment and
services. Conflicts within the Competing Values Framework may be caused by the fact that the values and the
corresponding organizational cultures compete with each other. This is because organizations can spend their
money, attention and time only once.
1.5.6.3.

Which culture type is the most effective?

The „best‟ organizations can handle competition within this framework well. Every culture type works best
in the activities domain corresponding to that particular culture type. So sometimes there is no ultimate „best‟
organizational culture, although a specific type may be better than others in particular situations.
1.5.6.4.

Cultural congruence

Congruence means the 6 aspects are based on the same values, and fall into the same cultural quadrant.
Research shows that successful organizations often have a congruent culture. They experience fewer inner
conflicts and contradictions. Cultural incongruence will often stimulate an awareness of the necessity of

change. It will take a lot of time and debate; it leads to differences in values, views, targets and strategies.
Sometimes the incongruence specifically occurs between different departments or people. It may be
interesting to assess these separately.
1.5.6.5. Discrepancies between present and prefer culture and the need for culture change
Differences of over 10 points are especially relevant and should induce the company to take action. This
discrepancy yields important information about any desired changes; which direction should the organization
move in.

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1.6.

Methodology applied in the thesis
1.6.1. OCAI method

In Vietnam PP Division, the survey was done by 89 employees (22% of the total employees in the
Division). In the group, there are 25 people in a managerial position (equal to 30%) and the remaining of 60
people is in staff position (equal to 70%).
In Singapore PP Division, the survey went through opinions of 30 employees (40% of the total employees
in this Division). In the group, there are 7 people in managerial position (equal to 23 %) and the remaining of
23 employees is in staff position (equal to 77 %).

1.6.2. Interview method
The interview is conducted for each group of employees to understand their basic assumptions behind
their survey result. Here are the key questions to mention:


Your reason/criteria to have your assessment and expectation?



Which factor you want to change, why?

In addition to that, there are 3 interviews conducted separately with ABB Vietnam PPTR BU Manager,
ABB Singapore PPMV BU Manager and ABB Singapore PP Division Controller to gain an overview picture
where it can explain for culture profile in each company.


Your reason/criteria to have your assessment and expectation?



Your opinion about the interrelationship between the four culture types?



Your opinion about the role of each culture type in the cultural transformation in your unit?

1.6.3. Other analysis methods
Other methods like using secondary information and observation were also applied so as to get the overall
ideas and multi-aspects for one issue.

1.6.4. Focused points
This thesis is to compare the culture of the two divisions in respect with the following points:
1. What is the dominant culture and major cultures in each division currently?
2. Do the dominant cultures gain cultural congruence to help the division move forward?
3. What is expected dominant culture?
4. What are emerging cultures?
5. How cultural congruence for the expected culture profile?

6. What is the reason for the changes according to employee‟s perception?
7. What is the factor influence the similarities and dissimilarities in culture between two divisions?

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CHAPTER 2: CULTURE ANALYSIS IN ABB PP DIVISIONS

2.1. Introduction about ABB Singapore and ABB Vietnam
2.1.1. Introduction about ABB Group
ABB is a global leader in power and automation technologies that enables utility and industry customers
to improve performance while lowering environmental impact. With about 124,000 employees and being
close to customers in around 100 countries, ABB is one of the largest conglomerates in the world.
ABB Group includes 5 Divisions which are the largest levels. Divisions are divided based on their nature
of the products and services they serve. The Division has the longest history in the Group is Power Product.
Each Division has high authority and autonomy in their operation and business performance. The next level is
Business Unit which based on sub-group of products. Under Business Unit is Product Group which is
categorized based on either customer or product. Each Product Group contains many Profit Centers which is
the basis business unit in ABB, in charge for profit.

2.1.2. Introduction about ABB Vietnam (VNABB) and ABB Singapore (SGABB)
2.1.2.1.

Establishment

Established in Vietnam in 1993, VNABB recently has more than 680 employees working in three regions
across the country to ensure the nationwide presence of the ABB brand.
Established since 1971, SGABB has 30 years of presence in Singapore employing 950 employees.
SGABB‟s key activities include the supply of power transmission and distribution equipment, instrumentation
and control systems as well as industrial products for various industries.

2.1.2.2.

Structure

In VNABB, the most major division is Power Product with the longest establishment while the others are
very new (with around 3 years of establishment). Besides, with 75% of ABB Vietnam‟s total headcount, this
division contributes the highest proportion in Revenues (more than 80%) and Earnings Before Interest and
Taxes - EBIT (more than 70%).
In SGABB, Power Product also plays a major role which mainly serves domestic customers both in
production and service like installation and commissioning…
2.1.2.3.

Activities in PP Divisions

In VNABB PP Division, the main activity is production of transformers, medium voltages and high
voltages products. The Division focuses on export sales activity which leans on other ABB in other countries.
That means when an ABB company in one country wants to export into another country, it does not export
directly but through ABB Company in that country, on its turn, ABB in that country plays the role of
marketing and sales to seek for customers and orders. Accordingly, ABB in a country usually needs sales
activities mainly for domestic sales.
In SGABB PP Division, it also has production of transformers and medium voltages products. However,
the major concern here is not only export sales but domestic sales activity; therefore, the activity is not only

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production but also services (like commissioning and installation for after sales). With that purpose, sales and
service activity play a major role in operation and business performance.
2.1.2.4.

Employee groups and group characteristics

In accordance with business activity and nature, there are main differences between VNABB and SGABB
PP Divisions. While in Vietnam PP Division, the high concentration is in the Production (workshop) group
with 63% of the total Division‟s employees, in Singapore PP Division, the significant weight is in Sales group
with 43%.
VNABB PP Division has 4.2 times more employees than SGABB PP Division as it contains 3 Business
Units while Singapore includes of 2 Business Units. Besides, for production purpose, it requires more
employees than for sales and service purpose.

Organizational culture comparison between SGABB’s and VNABB’s PP Division

2.2.

2.2.1. Different dominant cultures but same major culture types
While ABB Vietnam is under the domination of Hierarchy Culture, ABB Singapore has Market Culture as
the dominant one. However, Hierarchy and Market play the most major roles in both divisions in present.
The dominant culture shows that Vietnam PP Division focuses on internal focus and integration with
stability and control. The Division is a very formalized and structure place to work and procedures, regulations
govern what people do. The prerequisite conditions for the management are to be good coordinators and
organizers who are efficiency-minded as the managerial aim here is to maintain a efficient and smoothrunning organization. Success is defined in terms of dependable delivery, smooth scheduling and low cost.
The management of employees is concerned with secure employment and predictability.
The second runner is Market Culture (24.8 points). The combination between Hierarchy and Market make
their proportion becomes to 60.4 points over 100. That also means 60.4% Vietnam PP Division pays for
stability and control, the remaining 39.6% is focused on flexibility and discretion.
In comparison with Vietnam PP Division, Singapore PP Division also focuses on stability and control but
it pays attention to external focus and differentiation rather than internal focus and integration.
Singapore PP Division is indeed a result-oriented organization whose major target is increasing the
market share through satisfying customers. The leaders are hard drivers, producers, and competitors. Besides,
people are held together by the emphasis on winning and get things done is what must be kept in mind.

In comparison, Vietnam PP Division focuses more on internal and integration while Singapore PP
Division pays attention to external and differentiation. However, the major concern in both of the Divisions is
stability and control.

2.2.2. The current dominant culture gains cultural congruence in both countries
The dominant culture gains congruence in both countries, it means the dominant culture surpasses the
remaining culture types in every single of the following 6 categories. Accordingly the dominant culture has
become the momentum for the organization moving forward. Similarly, it is also remarkable to see the cultural
congruence for the runner-up in each division.

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In comparison, the gap between the dominant culture and the remaining ones points out that the dominant
culture in PP Division Vietnam shows more strongly its presence rather than the one in PP Division
Singapore.
Besides, the result of dominant culture achieves consensus in assessment of all employee groups in each
division. That mean whatever group of employee, they have the same and clear feeling and assessment about
the domination of their major culture. The interesting point is the Management is the group has the strongest
sense about the dominant culture in both divisions.

2.2.3. Differences in expected dominant culture types
While in ABB Vietnam PP Division, Hierarchy is still expected to be the dominant, ABB Singapore wants
to shift the dominant culture from Market Culture to Clan Culture. As productivity and smooth operation are
still the prerequisite conditions for effectiveness in Vietnam PP Division, Hierarchy with stability and control
combined with internal focus and integration is still preferred the most. However, Vietnam PP Division also
wants to trade-off 3.6 points from Hierarchy Culture to increase other culture types, meaning that they begin
to pay more attention to other types like Adhocracy and Clan.
About Singapore PP Division‟s cultural profile, it shows a significant transformation from dominant
Market Culture (32.4 points in present) to the most desired Clan Culture (27.3 points for future). The two

types of culture in opposite quadrants show their contrary in values. Market Culture focuses on stability and
control with external focus and differentiation while Clan Culture highly appreciates flexibility and discretion
with internal focus and integration. This overthrow is deeply impressive as Clan is from the number three to
the number one (increase by 6.9 points) while Market drops down from the dominant position to the third
position (decrease by 7.6 points). With this amount of change, it really requires the management to take
action.

2.2.4. Less cultural congruence for the expected dominant cultures & the inevitable
emergence of Clan and Adhocracy
In both divisions, the expected dominant cultures gain less cultural congruence than the current dominant
ones do. Meanwhile, we can see the emergence of Clan and Adhocracy in both divisions, especially the
obvious increase of Clan Culture.
In ABB Vietnam, Hierarchy still remains as the dominant culture, but it reduces the gap with the
remaining culture types, especially with Clan Culture (from average 13.6 points of gap to 4.5 points). It shows
that, while keep focusing on internal and integration, Vietnam PP Division prefers more flexibility instead of
remaining very high degree of stability and control as the current.
In ABB Singapore, Market Culture was overthrew from the dominant position down to around third place.
Meanwhile, a significant increase is noticed from Clan Culture and Adhocracy. Hierarchy Culture tries to keep
its portion, however, there is a fluctuation throughout the six categories. Similarly, even Adhocracy gains an
increase but it is not at equal levels. The important point is it is not clear to point out which culture type can
become the new dominant culture.

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2.2.5. Diversity in expectation of employee groups
There are differences between employee groups‟ expectations in both divisions. First in ABB Vietnam:
-

Hierarchy Culture: while Management and Production side still want to keep it as the dominant

culture, Administration and Sales team expect to reduce its role as a secondary culture type.

-

Market Culture: While Management and Production (in office) employees expect to slightly reduce its
portion, Production (in workshop) employees expects a significant decrease in Market Culture. In
contrary, Sales team expect to see more Market Culture within their unit, even as the dominant
culture.

-

Clan Culture: this type is the only one case that has a remarkable number of advocates to become the
dominant culture (except for Management who votes for Hierarchy and Sales who expects Market
Culture).
Adhocracy Culture: While Production (workshop) groups remain Adhocracy‟s portion, an increase is

-

expected by all remaining groups, even though with a minor gap. However, a strong urge can be
noticed from Management, Administration and Sales team.
In ABB Singapore:
-

Market Culture: it appears as the least welcomed culture type in future when all groups expect to
reduce its portion. With a closer look, Management and Sales team still keep it as the dominant
culture but Production side (in office) wants to drop this type to the forth place and remaining group
expect it as a secondary culture type.

-

Hierarchy Culture: it still keep the portion in the preferred culture profile. Besides, it gain a strong
vote from Production (in workshop).

-

Clan Culture: it gain a remarkable support in all groups, except for Management and Production (in
workshop) all remaining group look forward to seeing Clan as the new champion.

-

Adhocracy: this culture type also has an increase but not a significant amount in general, it is still
considered as the forth place.

2.3.

Factors influencing organizational cultures in the two Divisions

This part digs down into the main reasons or factors that create similarities and diversities in the culture of
the two units. In other word, the it is necessary for the management to take these factor into consideration
while visioning the future culture they want to apply for their units.

2.3.1. The vital role of standardization in ABB’s operation
ABB is operating in power and automation technology, having its presence in around 100 countries. This
industry itself and the scale of operation make it not an exaggeration to say standardization is a critical
compass for ABB to put it name worldwide, due to that Hierarchy Culture always contributes a major part. It
is clear to see the presence of Hierarchy Culture and its roles in the following point: high standardization. The
standardization is indeed gets critical points due to the following reason.
First, as ABB is operating in heavy industries where dealing with complex and huge systems is the
requirement, there is no tolerance for errors; therefore strict standardization is for quality management.

12


Second, in the industry, safety is seriously taken into account where a slight mistake can insult in loosing
many lives; therefore, it is obviously not enough just by providing workers with the best safety working
clothing and equipments, it is a must to build a whole working process whereby every single action are to
ensure in a safe manner.
Third, the operation itself is a complex process where employee internal transfer and internal transactions
are constantly happening in ABB. It should be standardized to help an employee transferring from a country to
another country not to take time to get acquainted with the system as well as the transactions can be operated
without any systemically misunderstanding.
However, a less endearing side of high standardization is that the Group Directive, added up with regional
regulations, then with every country customization and then every single division or business unit makes the
rules and regulation become a huge overwhelming amount of information to absorb.

2.3.2. Market situation and market orientation in ABB Group
Through 5 years, PP Division is expected to remain annual growth rate at 5-7% meaning after 5 years it
can dominate more of 27%-40% in comparison with what it is achieving now. In addition, with expected
annual growth rate of 14-20% EBITDA (profitability) it requires not only strong force in market domination
but also efficiency in cost saving. In a ballgame where competitors are equally hungry, this growth rate targets
obviously put a high pressure to PP Division, globally.
ABB Asia shows a major role in terms of orders received and revenues recognition in PP Division. With
the group targets, a high expectation relies on ABB Asia including Southeast Asia. However, to have a closer
look, this situation happened in the same way with competitors. That means, in the next coming years, all the
giants will flock into Asia with stronger force to stand on the ground that would make the competition tougher
than ever.
To illustrate for a tough competition, PP Division still delivered a positive growth rate, however, pricing
and tougher competitions are what it is facing. ABB is always proud of its pioneer in technology, lead time,
quality and price has never been considered as an ABB‟s competitive advantage. Therefore, talking about
pricing is a sign of tougher competition ABB is facing.

With that situation, market orientation needs to develop in ABB Group as Mr.Joe Hogan, ABB
Group‟s Chief Executive Officer declared:“ABB’s approach must center on being close to our customers and
developing a deep understanding of local needs. Then we have to make sure we have the right local resources
in place to meet those needs in terms of engineering, R&D, sales & marketing, service, suppliers, and
manufacturing”.

2.3.3. Asian culture – a strong factor supporting for Clan Culture
One remarkable point in the expectation of both Divisions is the emerging of Clan Culture. This Clan
Culture‟s increase can be supported from Asian culture‟s characteristic. (mentioned in 1.2.3.\Example 3 –
Individualism vesus Colletivism)
Collectivism gain strong support from Clan Culture which strengthen the following points:


Friendly working environment



Loyalty

13




Employee participation

2.3.4. Adhocracy Culture – an answer to the dilemmas
To achieve a high adaptation to the market which is becoming a fierce competition ground, it is not
sufficient enough for the divisions, especially Singapore PP Division to follow the same old methods.
Thinking of a new way to approach customers, re-arranging group, building a team where people are always

inspired of and ready for changes is very critical to gain the multiple targets: cost effectiveness and stable
growth rate.

2.3.5. Business nature & the major sub-groups
The main factors attribute to the difference between two Division‟s dominant culture is business nature and
then the culture of major sub-groups.
TABLE 0-1: COMPARISION BETWEEN SGABB PP DIVISION & VNABB PP DIVISION
CATEGORY

SGABB PP DIVISION

VNABB PP DIVISION

Type of business

Mainly in sales and service

Mainly in production

Years of operation

45 years

Around 15 years

Number of employees

95

398

Main employee group

Sales - high flexibility and
moderate discretion; high external
focus and moderate differentiation

Production (workshop) - high
stability and control; high internal
focus and integration
Production (office) - moderate
stability and control; moderate
internal focus and integration

Period of development

Have sophisticated and effective
system
Have a high expectation from the
Group to become the hub in SAS
region (Asian, New Zealand and
Australia)

In the early stage to standardize
working process

14


CHAPTER 3: RECOMMENDATIONS

3.1.

The importance of defining culture profile

Defining culture profile is the abovementioned step where the current situation and preferred picture are
defined individually. From the analysis, we can see significant differences between employee groups‟
expectation. Therefore, having culture assessed by employee groups can bring main benefits to management.

3.2.

Culture incongruence requires leadership involvement

Culture incongruence can be understood as the conflict between employee groups‟ expectation when each
employee group has different working culture. What is the role of leadership in that case? Leaders in the
divisions are considered as the linkage between Group and employees to monitor internal operation integration
and external adaptation.

3.2.1. Leaders are to listen and respect the needs of employees.
Why? Culture is considered as a coordinator and motivation for employee. Therefore, if the culture
change can go along with employees‟ needs, it would become the leverage for the development, otherwise, a
culture going against employees‟ needs can become a deadly constraint for development and encounters
resistance for changes.
How? Mangers can collect the assessments from employee groups and analysis which culture type they
want to pursuit, how they can trade-off for the culture change (measured by the gap between points allocated
to preferred culture and present culture). Moreover, managers need to gain an insight which factor in each
culture type the employees want to change or to pursuit.

3.2.2. Vision the future culture to pursuit
Leaders or managers is group who take responsibility for the whole organization and they have most
sufficient information, hence their role is to vision a culture that meets the requirements from the four major

factors: (1) Support the cultural needs of employees, (2) In line with the requirements or directions of the
Group, (3) Effectively adapt and stir with market situation or business environment, (4) Enhance the internal
operation

3.2.3. Define the culture transformation process
For the culture change, the leaders need to define phases for the transformation. From the current profile
to the preferred one there should be many changes in culture types.
-

As the organizations have scared resource, the leaders should know which culture type has higher
priority to change, which type can be the leverage for the change.

-

The culture change should implemented in the way that have the least interfere to the operational
process in transformation period or in an ideal cases, it can leverage the operation process and
productivity can improve in a short time.

3.3.

Visioning the transformation
3.3.1. ABB Vietnam – PP Division

15


TABLE 0-1: VIETNAM PP DIVISION - EXPECTATION FOR MAJOR CHANGE
CULTURE TYPE
Keep Hierarchy culture as the
momentum of the company

Dominant Characteristic: -7.4
Leadership Style: -2.4
Management of Employee: -5.4
Organizational Glue: -5.1
Strategy Emphases: -2.9
Criteria of Success: +1.3

-

-

-

Market Culture can be tradedoff for a longer term vision.
Dominant Characteristic: -1.5
Leadership Style: -3.7
Management of Employee: -0.5
Organizational Glue: -4.5
Strategy Emphases: -4.2
Criteria of Success: -3.5
Strengthen Clan culture
Dominant Characteristic: +5.6
Leadership Style: +3.2
Management of Employee: +4.2
Organizational Glue: +10.0
Strategy Emphases: +4.3
Criteria of Success: +5.3

-

-

-

-

-

Adhocracy can be encouraged
but not yet as an urgent demand
Dominant Characteristic: +3.3
Leadership Style: +2.7
Management of Employee: +1.7
Organizational Glue: -0.4
Strategy Emphases: +2.3
Criteria of Success: -2.8

-

-

-

MAJOR CHANGE IN EXPECTATION
As a production-based division, the clarity and stability is critical
to ensure the production quality as well as occupational health and
safety. It is the reason for criteria of success increased by 1.3
points.
However, to balance with other culture, the company should be
less described as “a very controlled and structured place where

formal procedures generally govern what people do”.
Besides, about management of employee and organizational
glue, the role of “formal rules and policies and maintaining a
smooth-running organization ” should be reduced.
All the above points show that Hierarchy as the Dominant needs a
strong support from other culture as a leverage for culture change.
As “competitive actions and achievement, hitting stretch targets
and winning in the marketplace” is not considered the dominant
way for strategy emphases, the employees, especially Production
(in workshop) group feel that the glue holding people together is
not only “achievement and goal accomplishment”.
In addition to that, managing by “hard-driving competitiveness,
high demands, and achievement” also should be reduced.
Clan culture is mostly welcomed to increase its contribution.
Accordingly, the company should be more as “a very personal
place, an extended family where people seem to share a lot of
themselves”.
The significant expectation comes from organizational glue
whereby people hope “loyalty, mutual trust and commitment to
this organization runs high” is the motivation help them work
together. That is indeed the balance point with organization glue in
Hierarchy culture.
Besides, people emphases on “development of human resources,
teamwork, employee commitment, and concern for people” as the
key criteria of success.
As the business nature of ABB Vietnam as a factory, the
employees judge criteria of success not necessarily as “the most
unique or newest products” or to be “a product leader and
innovator”, therefore, Adhocracy is also expected to increased, but
not yet as an urgent demand. On the other hand, innovation and

flexibility can be applied, first for office employees (sales or backoffice employees) to encourage people contributing innovation,
gaining outstanding outcome and getting promotion in career path.
Accordingly, they expect their unit should be like a “very
dynamic and entrepreneurial place where people are willing to
stick their necks out and take risks.”.
Moreover, they employees expect the change mostly to come from
leadership style where the leaders are described as
“entrepreneurship, innovation, or risk taking”

16


3.3.2. ABB Singapore – PP Division
TABLE 0-2: SINGAPORE PP DIVISION - EXPECTATION FOR MAJOR CHANGE
CULTURE TYPE
Still consider Market Culture as

MAJOR CHANGE IN EXPECTATION
-

With the condition that Singapore PP Division is going to get more

the dominant but strongly reduce
its portion.
Dominant Characteristic: -5.8
Leadership Style: -12.0

pressure for the next coming years combined with intense rivalry
for sales team which is the most critical activity; It is essential to

Management of Employee: -9.2
Organizational Glue: -6.6

However, its portion will be reduced for the increase of other
culture types, especially Clan Culture.

Strategy Emphases: -6.4

keep the Market Culture as the dominant characteristic to help
employees gain strong market senses and customer orientation.

-

Accordingly, the characteristic of the organization should be less
as “very result-oriented place where a major concern is with
getting the job done and people are very competitive and

Criteria of Success: -5.6

-

achievement-oriented”
A remarkable reduction in expectation is derived from the
significant decrement in the concept of leadership style, the
leaders should not only be described as “a no-nonsense,
aggressive, result-oriented focus” and the management style as
“hard-driving competitiveness, high demands, and achievement”
should not the only way to manage.

-

In that case, the employees also reduces the role of “competitive
actions and achievement, hitting stretch targets and winning in the
marketplace are dominant” in criteria of success.

Strongly develop Clan Culture
Dominant Characteristic: +10.2

-

In contrary with Market, Clan Culture is mostly welcomed to
increase its contribution.

Leadership Style: +1.8
Management of Employee: +8.4

-

Accordingly, the company should be more as “a very personal
place, an extended family where people seem to share a lot of

Organizational Glue: +7.5
Strategy Emphases: +4.7

-

themselves”.
The significant change comes from the concept of criteria of
success that emphases on “development of human resources,

Criteria of Success: +9.4
-

teamwork, employee commitment, and concern for people”.
Therefore, employees want to see the improvement

in

management as “teamwork, consensus, and participation” and
organizational glue whereby people hope “loyalty, mutual trust
and commitment to this organization runs high” is the motivation
help them work together.
-

From above, we can see the main role of Clan is to enhance
employee participation which is the strategic point to increase
ability for timely respond in a high rivalry market. To that point,
Clan Culture is the supportive factor for Market Culture in term of
customer orientation. Therefore Clan Culture does not conflict but
indeed goes hand in glove with Market Culture.

Slightly reduce Hierarchy
Culture
Dominant Characteristic: -7.0
Leadership Style: +4.5

-

-

Hierarchy can still remain the current level whereby employees
already absorb and get used to the working process. Following the
rules and process becomes the habit and culture here.
Among the six categories, the Division should be less described

17


as “a very controlled and structured place where formal procedures

Management of Employee: +3.3
Organizational Glue: -3.5
Strategy Emphases: -1.8

-

Criteria of Success: -2.5

generally govern what people do”.
Besides, in organizational glue, the role of “formal rules and
policies as well as maintaining a smooth-running organization”
should be reduced.

-

However, as a character of the industry, the role of “coordinating,
organizing, or smooth-running efficiency” in management needs
to be enhance

Improve Adhocracy Culture

Dominant Characteristic: +5.8

-

General employees not yet feel the urge to get more adhocracy
level, however, it becomes the demand from the management

Leadership Style: +5.7

when they foresee the coming situation where effectiveness and

Management of Employee: -2.5
Organizational Glue: +2.5

competency not only base on obeying rules but also requires
initiatives and innovation.

Strategy Emphases: +3.7
Criteria of Success: -1.3

-

-

Accordingly, the unit should be like a “very dynamic and
entrepreneurial place where people are willing to stick their necks
out and take risks.”
Besides, the leadership style is expected to be extended the level
of “entrepreneurship, innovation, or risk taking”

3.4.

Operational change for the cultural change
3.4.1. In ABB Vietnam – PP Division
3.4.1.1.

Hierarchy Culture gets complement from Clan Culture

a) Current status


Policies and procedures are provided to employees through many discrete sources, causing employees
feel overwhelmed with information that obstructs employees in updating and implementing. Due to
the discreteness of the data, policies and procedures are difficult to be managed and updated.



With a strict routine, employees do not feel they can contribute value-added into their work. That also
raise concerns about their promotion where they do not feel improvement in career path.



To improve technical skills, training courses are available (ABB Group build up a global system
called “ABB University” which provide online trainings on many fields like finance, technical, sales,
working tools…), however, it has not been utilized.
b) Recommendation



Set up a team to coordinate and migrate all policies and procedure into ONE database that can be

accessed by all employees in the company. Each policy or procedure can be updated periodically (for
every 6 months) or when there is a proposal from employee to update. Provide trainings to relevant
employees, especially with major policies, provide method to follow up and check to ensure policies
are implemented properly.



Advise career path for employees, encourage rotating with employees who already gain sufficient
skills and experience in their current job. However, in order to have a smooth rotation, it requires a
strong and effective process that enables the employee and the replacement (for his/her current

18


position) to quickly catch up with their new jobs. That underlines the importance of training as well as
a clear and effective working process.


Utilize internal training programs (through online training and exchanging with other countries).
Consider improvement in knowledge and skills of employees and as a key indicator in performance
appraisal.
3.4.1.2.

Market Culture goes along with Adhocracy Culture

a) Current status


Management by target or overstretching to meet customer requirement leads to overload in Production
(workshop).



Meanwhile, the Sales team has not yet feel an adequate level of market culture in their unit.
b) Recommendation



Improve in production planning so that the production workload will not have fluctuation depending
on orders received (which is not monthly stable). Reduced “management by target” which easily leads
to deficiency, health and safety issues.



Provide mentoring for potential employees whereby the employees can absorb not only technical
skills but also business ethic, strategic thinking and approach, hence productivity is enhanced.



Along with training and mentoring, “management by target”, “customer orientation” should be
applied in Sales team, concurrently increase flexibility to motivate Sales persons.
3.4.1.3.

Action Plan Summary
TABLE 0-3: ACTION PLAN FOR VIETNAM PP DIVISION

Step

Timing

Assignment

Responsibilities

Success Criteria

Migrate
Policies and
Procedures

2 months for
migrating
database
Update
periodically
(for every 6
months)

- Policy Editing Team to
coordinate all policies and
procedures
- Departments/ Units
(Purchasing, Design,
Finance…) to set up/
update relevant
policies/procedures

- All policies &
procedures are updated
and in one database

- Every employee
know how/where to
get the updated
policies/procedures

Advise career
path

Upon each
department‟s
requirement,
should plan
ahead one year
for headcount
and rotating

- Set up a team to
coordinate and migrate all
policies and procedure into
ONE database that can be
accessed by all employees
in the company.
- Update periodically
-Training /inform
employees about new
coming/updating policies
and procedure
- Advise career path for
employees, encourage
rotating already gain

sufficient skills and
experience in their current
job

- Department Head to plan
for headcount prior to the
next year
- Human Resources
Department to facilitate in
conducting training, giving
appraisals and advise a
smooth rotating process

- Upon personal wish,
an employee can be
advised about his/her
career path and it will
be stated/reviewed in
annual PDA as an
action plan for the next
year
- At first this program
can be applied in units
applicable for rotating
like Design,
Purchasing,

19

Utilize internal
training
programs

Upon each
department‟s
requirement or
can arrange
periodically
(for every
quarter)

- Utilize internal training
programs (through online
training and exchanging
with other countries)

- Department Head to plan
for training based on
management requirements
or employees‟ proposals
- Human Resources
Department to facilitate in
conducting training,
searching and introducing
training/exchanges
opportunities, at first
within ABB Group

Controlling

- Put improvement in
knowledge and skills
of employees and as a
key indicator in
performance appraisal
(annual PDA)
- Every employee has
at least 1 training per
quarter (a moderate
number of training in
ABB)
- A process to evaluate
improvement after
training of each
employees

Improve in production
planning so that the
production workload will
not have fluctuation
depending on orders
received (which is not
monthly stable). Reduced
“management by target”
which easily leads to
deficiency, health and
safety issues.
Provide mentoring for
potential employees
whereby the employees can

absorb not only technical
skills but also business
ethic, strategic thinking and
approach, hence
productivity is enhanced.
Along with training and
mentoring, “management
by target”, “customer
orientation” should be
applied in Sales team,
concurrently increase
flexibility to motivate Sales
persons.

3.4.2. In ABB Singapore – PP Division
3.4.2.1.

Market Culture supported by Clan Culture

a) Current status


Production (in office) team feels over-load to back-up the whole working process.



As market portion of ABB is expanding along with the increase in market rivalry, Sales teams are
aware of the need to have “customer orientation” working culture, however, they encounter
difficulties to deal with customers‟ requirements which is getting more and more sophisticated.
b) Recommendation

20




Increase headcount for Production (in office) group to reduce the workload per headcount. Besides,
controlling is necessary for errors to be reduces, effective practices to be implemented and
productivity to be improved.



Empower first-line supervisors by eliminating the layer of supervision directly above them. Chart all
responsibilities that need to be performed, provide the necessary training, and totally empower the
first-line supervisors to make key decision and react quickly to the needs at hand.



Divide sales team into smaller groups to help employee improve their management skills. Apply
mentoring (rather than enrolling normal types of training courses) where supervisors can train
subordinates on-the-job for technical skills as well as strategies or methods to deal with each customer
type.



Delegate to capable employees to help them learn on-the-job and to make the workload be shared
among team members. It is also a method to have more “leadership excellence” in the unit when
employees are empowered and take more responsibly.
3.4.2.2.

Hierarchy Culture goes along with Adhocracy Culture

While Market Culture get a direct complement from Clan Culture, Hierarchy in a harmony balance
with Adhocracy Culture with create an environment that nurtures stability, innovation that can create a
competitive advantage to expand the market.
a) Current status


In ABB, as the characteristic of the industry, long-term recruitment is underlined that sometimes
overvalues “seniority” and hold back innovation.



Procedures and process are smoothly implemented.



In ABB, there are many databases implemented where employees update their information and from
that managers can have consolidated report which can reflect closely to the fact. However, some
database like order following up has not been utilized as it is time consuming for employees to update.
b) Recommendation



In order to promote innovation and initiative, seniority should be valued reasonably in term of
knowledge and experience. “No seniority” spirit should be applied for leadership development
because although technical experience is important but “taking responsibility” attitude, leadership, and
“leading change” are counts among the most critical conditions. This spirit has been implemented
successfully in PPMV and it should be applied for the whole division.



Transfer all supporting or administrative processes to back-end team so that front-end team (sales,
production whose workload directly depends on customers‟ requirement or orders received.



Develop systems to encourage, measure and reward innovative behavior at all level of the system.
Develop visible rewards that recognize the creativity and innovation of employees, teams and units.
Recognize good ideas as well as orchestrate and sponsor activities that help new ideas get developed
and adopted.

21




Forecast customer demand at all points of contact and find ways to exceed those demands. Ask a task
force of first-line people to conceptualize new strategies for expanding markets and developing new
businesses.



Utilize the systems which support to understand and analyze customer groups based on huge amount
of information on database. It even helps forecast from that timely actions are taken. Reexamine or
reinvent the processes associated with customer contacts and the flow of information from the
customer through the organization.



Customer analysis can be shared among groups to enhance customer in-sight. Constantly analyze the
evolution of the market by holding exploratory focus group sessions with the people most closely
associate with the market.



Make a conscious effort to move from an orientation of giving customer “what they need” to giving
customers “what they would like”, to surprising and delighting customers with products and services
that solve problems that they do not expect to be solved.
3.4.2.3.

Action Plan summary for Singapore PP Division
TABLE 0-4: ACTION PLAN FOR SINGAPORE PP DIVISION

Step

Timing

Assignment

Responsibilities

Success Criteria

Increase
headcount for
Production (in
office) group

3-6 months

Increase headcount
for Production (in
office) group to
reduce the workload
per headcount

Proper headcount is
added within 3-6 months

Tighten
controlling

Monthly

Empower

- 1-3 months for
simple/routine
tasks
- 3-6 months for
transition in
more
complicated
tasks
- 1 months to
divide sales team
- Mentoring will
be applied on
case by case

basis

Tighten controlling
for errors to be
reduces, effective
practices to be
implemented and
productivity to be
improved
- Empower first-line
supervisors by
eliminating the layer
of supervision
directly above them.

Business Unit Manager to
propose headcount
increase to Group for
approval based on business
plan
Human Resources
Department to assist in
recruitment
Controlling Team to
coordinate the process
Operational Team to
follow the process

- Divide sales
team

- Apply
mentoring

- Divide sales team
into smaller groups to
help employee
improve their
management skills.
- Apply mentoring
where supervisors
can train
subordinates on-thejob

22

- Business Unit Manager
to monitor the process
- Department Head to
mentoring/ direct
subordinates

Sales Manager

Periodically control over
key procedures to ensure
management is provided
timely (from weekly to
monthly) information
and people follow
process correctly

Employees to be
empowered can be
handle new tasks to
enable their supervisors
move to higher priorities