Vietnamese Corporate Culture and the Factors That Affect It

Today, in a market economy, for a business to develop its production, business, and brand, there is no other way than to focus on corporate culture. What is Vietnamese corporate culture and what role does it play in building and developing a sustainable company? Let’s explore with 1Office in the article below!

1. What is corporate culture?

Simply put, corporate culture is the collection of values, beliefs, behaviors, perceptions, and ways of thinking that employees within a company recognize, share, and practice as a habit.

Corporate culture aims for the comprehensive development of people as its ultimate goal. The core of corporate culture is the corporate spirit and the company’s values.

1.1 Why is it necessary to build a corporate culture?

Corporate culture determines the longevity of a business, helping it endure and creating a professional, strong working environment, and is considered a “golden asset” of the company. It can be said that corporate culture plays an indispensable and important role, helping businesses to:

• Reduce conflict: Corporate culture is the bond that connects members of a business. It helps members agree on how to understand issues, evaluate, choose, and direct actions. When faced with conflicting tendencies, culture is the factor that helps people integrate and unite.
• Coordinate and control: Vietnamese corporate culture helps coordinate and control individual behavior through stories, legends, standards, procedures, processes, rules, etc. When a complex decision must be made, corporate culture helps narrow the range of options to consider.
• Create work motivation: It helps employees clearly see their goals, direction, and value within an organization. This helps create good relationships among employees and a comfortable, healthy work environment.
• Competitive advantage: From the factors above, it can be seen that corporate culture helps increase operational efficiency, create differentiation in the market, and helps the business compete in the market in the best way possible.

As you can see, Vietnamese corporate culture is an important factor that creates internal harmony, builds a positive culture to promote the strengths of a collective culture, helps strengthen internal resources, and creates the strength of the business. So, what are the factors that influence corporate culture? Let’s find out in the content below.

2. Factors affecting Vietnamese corporate culture

2.1 The leader – The most important factor affecting Vietnamese corporate culture

Leaders are the ones who understand corporate culture best because they are the ones who build and develop it. Corporate culture also reflects the personality and personal philosophy of the leader. Through the process of building and managing the business, the leader’s ideology and personality will be reflected in the corporate culture.

2.2 Members of the organization

Besides the leader, members of the organization also have a direct impact on Vietnamese corporate culture. How employees behave and interact with each other will change the working atmosphere of an entire office. Therefore, companies need to organize extracurricular activities and external social events for employees to bring the collective into a cycle of developing team spirit. Japanese corporate culture always emphasizes the spirit and responsibility of each individual, which you should apply.

2.3 Recruitment strategy

When a company has a positive culture, it will attract many candidates because a company can operate strongly precisely because it has a solid human resources foundation. A positive corporate culture will attract candidates. Therefore, recruiters need to consider what happens during the interview to see if the candidate is a good fit for the company. Thanks to a strict and thorough recruitment process, the business can find suitable candidates.

Employee loyalty is also one of the cultural factors affecting the business. When employees feel that the workplace meets their needs, abilities, and ensures their livelihood, helping them feel comfortable, happy, and able to develop and be creative, it will make them stay with the company for the long term. You can learn more about how to preserve corporate culture in today’s 4.0 era.

2.4 Work environment

Your surrounding environment affects your performance at work. Imagine working in a noisy environment where you can’t concentrate; your productivity will surely decrease significantly. While open-plan office designs are becoming more popular, in reality, they often reveal shortcomings. Therefore, consider designing separate workrooms and encouraging new employees to use them whenever necessary.

2.5 National Culture

Vietnamese corporate culture is a subculture within the national culture. Every individual within the corporate culture is influenced by national cultural values. Therefore, it is inevitable that national culture is reflected in corporate culture.

Each individual, belonging to different genders, cultures, ethnicities, etc., with their unique cultural identities, develops different foundations for thinking, learning, and reacting. When brought together in an organization, these personality traits are synthesized to form a part of the corporate culture.

Therefore, the culture in each country and region will have different characteristics depending on its development, level, and history. These cultural values affecting businesses are often considered based on 4 factors that influence corporate culture:

• The contrast between individualism and collectivism
• Power distance
• The contrast between masculinity and femininity
• Uncertainty avoidance

2.6 Learned Cultural Values

Vietnamese corporate culture is also shaped and influenced by learned cultural values. Learned cultural values are the cultural values, concepts, standards, principles, and traditions that a business adopts during its formation and operation.

Every business has its own culture. It is the organizational culture that creates the distinctiveness of each company, helping to differentiate one business from another. However, some values can be learned and shared. One should not learn mechanically but must selectively choose suitable values and apply them to the business flexibly and creatively.

See more: 7 mistakes CEOs make in business management and how to avoid them

The content above has introduced users to Vietnamese corporate culture and the factors that influence it, which play a crucial role in the survival and development of a business or organization. Therefore, leaders and founders must truly understand the negative and positive impacts of these factors to build and make appropriate changes to promote business activities, enhance internal capabilities, and leverage collective resources, thereby leading the company to sustainable development.

1Office hopes that through this article, you have gained more information to build your corporate culture most effectively! To manage your business efficiently, you can refer to our online business management software to solve your business management challenges in the best way.