Distributive injustice in DongA join stock commercial bank (DongA Bank)

Abstract

The commercial banks in Vietnam play a vital role as the main suppliers of funding for the economic with the compound average annual growth rate reaches 14.2% in 2011 to 2016 period (1). In parallel with the fast-growing rate, banking industry has to face with multiple challenges tied to the legacy system of Vietnam such as the customer satisfaction, technologies, human resource management and risk (2). Especially, the banking sector is actual a service industry and human resource is the core value and the biggest challenge of each organization in order to get the competitive advantage in a fast-growing industry like Vietnam banking sector. With the main aim is to explore the insight problem of human resource management of DongA Bank that make the shortage of human resource becoming a burden and can lead to a human resource crisis, the qualitative research was conducted for both employers and employees in order to has the general images about the real existing weakness and the unexpected indicators of two side of human resource – the user and the maker. Additionally, the quantitative research has also accomplished for a month in order to revise the commonly level of many collected information throughout the employees and employers perspective. Last but not least, aside from these researches, the context problem of DongA Bank with the evidences from the separate financial statement, the yearly human resource management report and in some conferences of chairman with most of management level is also the important information to make the result of study and the potential solution be suitable with the real initial phenomena of DongA Bank. Combining whole of the collected information, it defined that the main problem of the high turnover rate and the significant shortages human resource at DongA Bank comes from the imbalance between productivity with salary and benefit packages. Beyond the main problem exploration, the interviews are continued to manipulate with high-top managers level to recheck the emerging main problem and investigate the causes validation. Indeed, the high-top management level illustrated that the distributive injustice in DongA Bank cause form many side such as the fogy salary regulation, the lack of suitable rewards and benefit policy and the lack of an effective performance appraisal. Thus, with the organization instability status of DongA Bank, the alternative solutions are proposed to take initiative control the turnover rate, maintain the experience labor and limit the increase labor cost.