Solutions to improve staff behavior – Case in Agribank Song Than

Contents List of Figures ................................................................................................................................. 1 List of Tables................................................................................................................................... 1 Abbreviations .................................................................................................................................. 2 Executive Summary ........................................................................................................................ 3 1. Company Introduction ............................................................................................................. 4 1.1 Viet Nam Bank for Agriculture and Rural Development................................................. 4 1.1.1 Overview ................................................................................................................... 4 1.1.2 Vision and mission of Agribank Viet Nam ............................................................... 7 1.2 Agribank Song Than Industrial Zone branch ................................................................... 7 1.2.1 Overview ................................................................................................................... 7 1.2.2 Organization chart of Agribank Song Than .............................................................. 7 1.2.3 Vision and mission of Agribank Song Than ............................................................. 9 2. Problem context ....................................................................................................................... 9 3. Problem identification.............................................................................................................. 9 3.1 Symptom analysis............................................................................................................. 9 3.2 Problem analysis............................................................................................................. 12 3.2.1 Problem identification ............................................................................................. 12 3.2.2 Potential problems................................................................................................... 13 3.2.2.1 Customer’s dissatisfaction....................................................................................... 13 3.2.2.1.1 High price ............................................................................................................ 14 3.2.2.1.2 Slow processing time (perceived transaction speed PTS) ................................... 15 3.2.2.1.3 Poor staff behavior............................................................................................... 15 3.2.2.2 Poor perceived electronic service quality................................................................ 16 3.2.2.2.1 Inconvenience website design ............................................................................. 17 3.2.2.2.2 Slow speed of download the site content............................................................. 18 3.2.2.3 Poor customer relationship...................................................................................... 18 3.2.2.4 Poor corporate image .............................................................................................. 19 3.2.3 Problem validation .................................................................................................. 21 3.2.4 Main problem consequences ................................................................................... 22 4. Cause analysis ........................................................................................................................ 22 4.1 Potential causes............................................................................................................... 22 4.1.1 Lacking working capability..................................................................................... 22 4.1.1.1 Lacking of communication skill.............................................................................. 23 4.1.1.2 Lacking of problem-solving skill ............................................................................ 24 4.1.2 Demotivation of working ........................................................................................ 24 4.1.2.1 Lacking of promotion opportunity .......................................................................... 25 4.1.2.2 Unfair compensation and benefits........................................................................... 25 4.1.3 Job stress ................................................................................................................. 26 4.1.3.1 Time pressure .......................................................................................................... 26 4.1.3.2 Over workload......................................................................................................... 27 4.2 Cause validation ............................................................................................................. 28 5. Alternative Solutions ............................................................................................................. 31 5.1 The first alternative solution:.......................................................................................... 31 5.2 The second alternative solution: Training for managing heavy workload effectively ... 33 5.3 The third alternative solution: Restructuring the front-line service staff ....................... 34 5.4 Solution validation.......................................................................................................... 36 5.5 Action plan implementation ........................................................................................... 37 6. Conclusion ............................................................................................................................. 41 7. Supporting Information.......................................................................................................... 41 SOLUTIONS TO IMPROVE STAFF BEHAVIOR – CASE IN AGRIBANK SONG THAN 1 List of Figures Figure 1. Establishment and development of Agribank Viet Nam (Source: Financial Institutes Department of Agribank Viet Nam) Figure 2. Organization chart of Agribank Song Than (Source: Internal data from Human Resource Department) Figure 3. Initial diagram of symptoms and potential problems (Source: by the researcher) Figure 4. Final diagram of the symptom and central problem (Source: by the researcher) Figure 5. Initial cause and effect map (Source: by the researcher) Figure 6. Final cause and effect map (Source: by the researcher) Figure 7. Action plan implementation for staffing structuring in Agribank Song Than (Source: by the researcher) List of Tables Table 1. Structure of Functional Department (Source: Internal data from Human Resource Department) Table 2. Net profit from 20 VIP customers of Agribank Song Than branch (Source: Internal data from Planning and Capital Department) Table 3. Characteristics and statistic number of 5-VIPS transactions (Source: Internal data from Planning and Capital Department) Table 4. Statistic numbers about factors affecting on staff performance in Agribank Song Than case in 2019 (Source: from the researcher) Table 5. The demand and shortage of workforce in Agribank Song Than (Source: by the Human Resource Department of Agribank Song Than) Table 6. The workforce demands of departments in Agribank Song Than (Source: by the Human Resource Department of Agribank Song Than) Table 7. Estimated time for the recruitment solution (Source: Human Resource Department of Agribank Song Than Branch) Table 8. Estimated costs for the recruitment solution (Source: Human resource department of Agribank Song Than Branch) Table 9. Estimated costs for the training course (Source: Human resource department of Agribank Song Than Branch) Table 10. Estimated time and costs for the restructuring solution (Source: Human resource department of Agribank Song Than Branch) SOLUTIONS TO IMPROVE STAFF BEHAVIOR – CASE IN AGRIBANK SONG THAN 2 Abbreviations 1. 5-VIPS: Five-very important customers 2. ABA: Asian Bankers Association 3. Agribank Song Than: Viet Nam Bank for Agricultural and Rural Development – Song Than Industrial Zone Branch 4. Agribank Viet Nam: Viet Nam Bank for Agricultural and Rural Development 5. APRACA: Asia Pacific Rural and Agricultural Credit Association 6. ATMs: Automated Teller Machines 7. CICA: Confederation Internationale de Credit Agricole 8. E-banking: Electronic banking 9. EDC: Electronic Data Capture 10. E-service: Electronic Service 11. FDI: Foreign Direct Investment 12. IT: Intellectual Technology 13. KPIs: Key Performance Indicators 14. POS: Point of Sale 15. PTS: Perceived Transaction Speed 16. SOEs: State-Owned Enterprises 17. SWIFT: Society for Worldwide Interbank Financial Telecommunication 18. VIP: Very Important Person 19. WSBI: World Savings and Retail Banks Institute SOLUTIONS TO IMPROVE STAFF BEHAVIOR – CASE IN AGRIBANK SONG THAN 3 Executive Summary The purpose of this paper is figuring out the solution to improve the performance of the employees in Agribank Song Than. From the symptom – decreased profit of five VIP customers in Agribank Song Than in 2019, through theories and the in-depth interviews with people of the bank and involved customers, the writer explores that the central problem is poor behavior of the staff and the main cause leading to this problem is over workload. Moreover, the employee behavior plays an important role in customer’s satisfaction specialized in a service company as Agribank Song Than. Therefore, it is necessary to find the resolution to solve the heavy workload for the employees. Every organization will have their own strategies to increase the staff behavior. The companies often focus on training or the compensation and benefits, and fail to mention the restructuring organization. Restructuring is not a simple work because it can be received negative responses from the employees if it is not satisfying the staff’s demands. From figuring out the real cause “over workload” leading to the decreased profits of five VIP customers, the thesis finds the best solution for this case in Agribank Song Than is reorganization which should be executed annually with a detailed action plan to enhance the employee behavior and working motivation. SOLUTIONS TO IMPROVE STAFF BEHAVIOR – CASE IN AGRIBANK SONG THAN 4 1. Company Introduction 1.1 Viet Nam Bank for Agriculture and Rural Development 1.1.1 Overview The Council of Ministers of Vietnam established Vietnam Bank for Agriculture and Rural Development (also known as Agribank) on 26th March 1988. It serves the purpose of stimulating the development in the rural and agricultural sectors. On 14th November 1990, the prime minister decided to change its name to Vietnam Bank for Agriculture. After that, on 15th November 1996, Vietnam Bank for Agriculture and Rural Development was again the official name of this organization. Agribank is the largest bank in Vietnam by most measures: capital, total assets, staff, operating network, and clients. Its total assets as of 30th June 2019 was VND 1,359,012 billion. There are 2232 branches in operation domestically with nearly 40.000 staff (1). Figure 1. Establishment and development of Agribank Viet Nam (Source: Financial Institutes Department of Agribank Viet Nam) General Director: Mr. Tiet Van Thanh Head office’s location: Number 2, Lang Ha Street, Ba Dinh District, Ha Noi City, Viet Nam. Operation network Agribank has largest operational network in Vietnam with 2,232 branches and transaction offices; one branch in Cambodia, three representative offices, five subsidiaries, 68 banks on wheels (1). Auto-banking system of 2,885 ATMs including 46 auto banks, 21,850 POSs; the number of cards issued of 25,701,339 (1). Labor force of nearly 40,000 professional and loyal employees with good command of the local market.(1) Agribank has correspondent relationships with 738 foreign banks in 86 countries.(1) SOLUTIONS TO IMPROVE STAFF BEHAVIOR – CASE IN AGRIBANK SONG THAN 5 Business performance as of June 30th, 2019 (1) Total Assets: VND 1,359,012 billion (6% higher than that at beginning of the year) Mobilization from market 1: VND 1,254,231 billion (5.7% higher than that at beginning of the year). Mobilization from public: VND 1,010,097 billion (approximately 80.5% of total mobilization) Outstanding loans: VND 1,054,047 billion (4.9% higher than that at beginning of the year) Profit before tax: VND 7,082 billion (meeting 70.8% target of the year) Service fee income: VND 3,162 billion (meeting 51.1% target of the year) Owner’s Equity: VND 62,717 billion Total Capital: VND 69,930.5 billion Role in agriculture and rural development (1) Proportion of agriculture loans to total outstanding loans of 67.8%, accounting for 50% of the total investment of banking sector in this industry. Providing many loan packets and credit programs for agriculture and rural areas. Cooperating with the largest agricultural machinery manufacturers in the world to provide credit support for sale of agricultural machines and equipment to develop high-tech agriculture, large sample fields. International cooperation (1) Being active Member of: - Asia Pacific Rural and Agricultural Credit Association (APRACA); - World Savings and Retail Banks Institute (WSBI); - Confederation Internationale de Credit Agricole (CICA); - Asian Bankers Association (ABA)… Receiving and implementing foreign credit projects through the Government; being in partnership with international donors in carrying out the projects of socio-economic development in Vietnam. Social responsibility Agribank always focuses on the responsibility towards the social community through social and charity operations that aim at poverty elimination, rural transportation development, education and healthcare improvement, calamity and disease relief, climate change prevention, home building for wartime heroes, sea and islands safeguard support. Products and services (1) Agribank has more than 200 products and services classified into groups: Savings, Loan, Domestic and International Payment, Foreign Exchange, Investment, Domestic and International Card, SOLUTIONS TO IMPROVE STAFF BEHAVIOR – CASE IN AGRIBANK SONG THAN 6 Electronic Banking, Associated products and services which meet the needs of individual and corporate customers. Modern and diversified distribution network includes branches, transaction offices and banks on wheels nationwide, correspondent banks in many countries in the world, ATM, EDC/POS network; via Mobile, Internet Banking and other customer connection channels Products and services for individual customers (1) Saving deposits (in local and foreign currencies); Payment accounts (used for all payment channels and payment services of Agribank, issuance of ATM cards, payment of electricity bills, water bills, school fees, payments to the State budget, etc...); Issuance of valuable papers; Loan provision (lending, guarantee, valuable paper discount); Domestic payments (remittance, payment of bills, cash service, cheques, receives from the State budget); International payments (inward/outward international payments, overseas remittance, border payments); Card services; E-banking services: Mobile banking, Agribank E-Mobile banking, E-Wallet, Internet banking; Cash management; Linkage service (insurance, collection of air tickets). Products and services for corporate customers (1) Mobilization (Payment deposit; term deposit; online deposit); Loan provision (lending, guarantee, valuable paper discount, factoring); Domestic payments (remittance, bill payment, cash service, cheques, State budget collection); International payments (inward/outward international remittance, L/C-related services, collection, border payments); Foreign exchange; Card services (debit cards, credit cards, link cards, non-physical cards); E-banking services: Mobile banking, Agribank E-Mobile banking, Internet banking; Cash management; Linkage service (insurance, collection of air tickets). Products and services for financial institutions (1) Money market and foreign exchange; SOLUTIONS TO IMPROVE STAFF BEHAVIOR – CASE IN AGRIBANK SONG THAN 7 Account service, bilateral payment connection; Cooperation in cash management (collect and pay out at customer’s location); Cooperation in overseas remittance; Cooperation in international payments; Cooperation in border payments; Syndicated loans. 1.1.2 Vision and mission of Agribank Viet Nam Vision “To be the modern and the leading bank in Vietnam with “Safe, Effective and Sustainable” development of high competitiveness and full international economic integration.” (1) Mission “To be the leading State-owned commercial bank in Vietnam which plays a dominant and key role in the national economy, particularly in the investment in agriculture sector, rural areas and farmers, contributing to socio-economic development of the country.” (1) 1.2 Agribank Song Than Industrial Zone branch 1.2.1 Overview Agribank Song Than Industrial Zone branch was founded on 05th April 2000, upgraded into a grade 1-branch and managed directly by Agribank Viet Nam at the end of year 2007. Its head office is based in Number 27, Thong Nhat Boulevard, Song Than 2 Industrial Zone, Di An District, Binh Duong Province, Viet Nam. Besides the headquarter, it has two grade 2-branches and five transaction rooms located in Di An and Thuan An district with 185 employees. The products and services of Agribank Song Than include all the products and services of Agribank Viet Nam for individual customers and corporate customers (2). Director: Mr. Pham Dang Bo Business performance of Agribank Song Than as of December 30th, 2019 (2) Total Assets: VND 12,378 billion Mobilization: VND 10,585 billion Outstanding loans to the economy: VND 7,596 billion Profit before tax: VND 125.71 billion Service fee income: VND 21.73 billion 1.2.2 Organization chart of Agribank Song Than Agribank Song Than runs the business with 185 talents divided into functional departments as below: SOLUTIONS TO IMPROVE STAFF BEHAVIOR – CASE IN AGRIBANK SONG THAN 8 Figure 2: Organization chart of Agribank Song Than (Source: Internal data from Human Resource Department) The number of staff for each department with different positions as below: Table 1: Structure of Functional Departments (Source: Internal data from Human Resource Department) SOLUTIONS TO IMPROVE STAFF BEHAVIOR – CASE IN AGRIBANK SONG THAN 9 1.2.3 Vision and mission of Agribank Song Than Vision To be in Top 5 of biggest commercial banks in Binh Duong province area with “Safe, Effective and Sustainable” development (2). Mission With the mission of Agribank Vietnam, Agribank Song Than also plays an ascendant and important role in the Binh Duong economy especially in the agricultural and rural investment, contributing to economic and social development in Binh Duong province and Viet Nam in general (2). 2. Problem context Agribank Song Than has 19-year operation in Song Than industrial zone. From 2000, Agribank Song Than is one of a few banks established in this area. Besides customers from Viet Nam, its customers are Foreign Direct Investment (FDI) companies from many countries such as Taiwan, China, South Korea, Malaysia, etc. Its annual growth rate is more than ten percent. Since over ten years ago, FDI customers have just worked only with Agribank Song Than. After that period of time, many commercial banks were founded in Song Than industrial zone. So customers especially FDI customers have opened accounts at many other banks and have many choices in using products and services of those commercial banks. The competition among commercial banks and their branches in the same area becomes more intense. From the acknowledgement about the fierce competition among the commercial banks, Agribank Song Than has always focused on their top 20 VIP customers because those customers contribute hugely on the total profit of the bank (VIP customer creates more than two billion VND profit per year for the bank). During the period from 2016 to 2018, the total profit from this group has always increased ten percent. However, in 2019, the profit earned from this customer group is decreased five percent. The board of directors want the researcher to find out the real problem of the bank about why the profit of VIP customers goes down and give solutions to that problem. 3. Problem identification 3.1 Symptom analysis Decreased profit from VIP customers The profit earned from VIP customers going down means that their transactions at Agribank Song Than are decreasing when all policies for VIP customers about interests and charges remain unchanged. The researcher needs to evaluate the symptom of the decrease in customers’ transactions. SOLUTIONS TO IMPROVE STAFF BEHAVIOR – CASE IN AGRIBANK SONG THAN 10 The researcher asks the manager of planning and capital department for data about the profit gained from 20 VIP customers. Table 2: Net profit from 20 VIP customers of Agribank Song Than branch (Source: Internal data from Planning and Capital Department) Year Net profit from top 20 VIP customers (Billion VND) Percentage increase/decrease (%) 2016 85.14 10.23 2017 93.80 10.17 2018 105.06 12 2019 99.81 (5) Besides, internal data indicates that the profit decreases primarily from five VIP customers (now called 5-VIPS). They are foreign direct investment (FDI) companies with nationalities from China and Taiwan. They have transactions with Agribank Song Than branch since more than five years ago. In 2019, their transaction quantity at Agribank Song Than decreased 19 percent in comparison with 2018, so the profit earned from these five companies decreased fifteen percent (3). Table 3: Characteristics and statistic number of 5-VIPS transactions (Source: Internal data from Planning and Capital Department) Company Nationality From year Transaction In 2018 (Million USD) Transaction In 2019 (Million USD) Transaction Changed (%) Profit earned * In 2018 Profit earned In 2019 Profit changed (%) 1 China 2001 31.56 26.12 -17% 3.18 2.52 -21% 2 China 2005 27.18 22.34 -18% 2.69 2.35 -13% 3 Taiwan 2002 23.45 17.82 -24% 2.57 2.15 -16% 4 China 2011 18.75 15.58 -17% 2.44 2.10 -14% 5 Taiwan 2006 15.68 13.17 -16% 2.25 2.00 -11% Total 116.62 95.03 -19% 13.13 11.12 -15% *Profit earned (billion VND): profit that Agribank Song Than earned from the customer Moreover, the writer conducts an in-depth interview with Ms. Hien (Manager of Services and Marketing department) who has direct communication with 5-VIPS: SOLUTIONS TO IMPROVE STAFF BEHAVIOR – CASE IN AGRIBANK SONG THAN 11 “The sales from 5-VIPS in 2019 decreases 19 percent in comparison with 2018. I had some meetings with the general directors of those companies in December 2019. They opened accounts and used loan products, domestics and international payments, card services, e-banking services at Shinhan bank, Esun bank, Vietcombank, Vietinbank. Therefore, they could compare service fees and quality of Agribank Song Than with the other commercial banks. It means that our bank has to share customers with those banks. I feel that we lack factors to satisfy their demands.” Chadha & Bhandari (2014) stated that the companies are assumed to identify the problems leading to the customers’ switching behavior to the competitors and realizing the highly significant of these factors since customer loss implicates revenue loss (4). Therefore, the downtrend in transactions is an early signal for customer switching. Along with customer switching, declining business performance of the customers should also be considered. Ms. Gam (Manager of Foreign Exchange department) states that the decreased profit of VIP customers may come from the decline in their business operations: “This symptom may come from decreasing in business operations of VIP customers in 2019 than that in 2018.” However, from in-depth interviews with 5-VIPS representatives, this reason is eliminated because the sales of their companies have all increased in 2019. General Director of company 1 mentions that the sales of their company has increased in comparison with the same period in 2018. “Our sales in 2019 has increased nine percent in comparison with the same period in 2018.” General Director of company 2 states that the company have signed more sales contracts than in 2018. “In 2019, we have signed more sales contract with both domestic and foreign parties than in 2018.” General Director of company 3 declares that the sales of the company have grown in comparison with in 2018. “Although there are some difficulties in finding new customers, our sales still have grown in comparison with in 2018.” General Director of company 4 states that their business in 2019 is still good: “Oh, our business is still good, we have signed many sales contracts with customers in 2019” General Director of company 5 shares that his company still get big sales orders and the profits have increased in 2019: “Although the sales of the wood industry in 2019 is not brighter than in 2018; however, our company still gets big sales orders with partners from Japan and South Korea. The profits of our company have increased in this year.” SOLUTIONS TO IMPROVE STAFF BEHAVIOR – CASE IN AGRIBANK SONG THAN 12 Through literature and in-depth interviews in this real case of Agribank Song Than, potential symptoms can be customer switching or decreasing business performance but at last, after in- depth interviews, the writer realizes that the real symptom is customers switching. Therefore, this paper will focus on solving this real symptom. First of all, before clarifying the switching behavior of the customers, this study will indicate active, passive customers and customer’s ability leading to switching behavior. Identifying active and passive customers Cioffi and Garner (1996) (5) distinguished active and passive customers to have a clear concept for their switching behavior. Active customers will search for information for making a conscious and deliberate decision. This searching process can take time but its result is a valuable ability to recognize conscious reasons for making deliberate decisions. In contrast with active customers, passive customers do not pay attention to the figures or information so they will have less conscious reasons for making decisions. Therefore, an active customer has the validating and switching possibility to a competitor smaller than a passive customer, stated by Cioffi and Garner (1996) (5). Because a passive-customer does not think of the staying reason with the contemporary company when a competing company tries to lure the customers; differently, an active customer will stay in the current relationship because that customer has many reasons for remaining (5). Besides, a passive customer is often switching or leaving through actual behavior, he or she does not have information to evaluate and easily to be tempted by the (5). In consequence, active customers are more loyal than passive customers (5). Justification and switching behavior Justification in this situation refers to switching reasons of the customers which can be expressed in words (5). Fishbein and Ajzen mentioned the single behavior model firstly in 1975 (5). Many authors stated that the available time for processing is a significant factor for leading a personal perception of action (5). In other words, at this time a person has the effort to make final evaluations leading to behavior (5). Therefore, the research of switching behavior to explain switching reasons must consider the customer’s potential (5). Through the general evaluation of the board directors and department managers of Agribank Song Than, 5-VIPS are all active and independent customers so they can make their own decisions for switching to other commercial banks and not be affected by any third parties. 3.2 Problem analysis 3.2.1 Problem identification Customer switching behavior happens when customers leave their current relationship with the original provider to using services of new competitors causing losing profits in the future and SOLUTIONS TO IMPROVE STAFF BEHAVIOR – CASE IN AGRIBANK SONG THAN 13 increasing the cost of finding new customers for the original service provider (6). Keaveney and Parthasarathy (2001) stated that the providers in service industries are always involved with customer retention, recurring customers will generate benefits including low sales costs, positive word-of-mouth sales and high marginal contributions (6). Through desk research, the literature indicates variable reasons lead to customers’ behavior of switching including service quality, reputation, price and interest rates, product availability, customer commitment, branch location, and physical appearance (7). Literature also states that there are many variables affecting customers’ switching behavior and repurchasing intentions are commitment, switching attitudes, value, switching costs, subjective norms, service quality, customer satisfaction, variety seeking and alternative attractiveness (4). 5-VIPS are all active customers so they have researched for full information before ready to leave to a new bank. 5-VIPS’ switching behavior can come from any above factors recommended in the literature. The researcher must conduct in-depth interviews to find out the real problem leading to customers’ switching, the main cause and the best solution for solving the real problem. The next contents are descriptions in detail about the business problem of Agribank Song Than. 3.2.2 Potential problems 3.2.2.1 Customer’s dissatisfaction Customer’s satisfaction is defined as the customers’ emotion or perception after using services or products (8). Customer’s satisfaction is a very important factor in customer retention and company profitability especially for companies in service fields (9). Service encounters have a strong influence on overall customer’s relationship and satisfaction (9). Low loyalty and switching of customers may come from dissatisfaction particularly in retail banks (10). Piha & Avlonitis (2015) advised that the banks should focus on minimizing dissatisfaction of customers and lack of commitment which leads to customer defection (10). From literature, the board of directors and managers need to clarify which features have effect on customer dissatisfaction in the real case at Agribank Song Than. In the meeting, Ms. Hien (Manager of Services and Marketing department) states that customers dissatisfy with the staff behavior, the processing time, and the high price. She said: “In Agribank Song Than’s situation, the dissatisfaction of 5-VIPS are major from service encounters with slow processing time and staff behavior besides the reasons of high price in charges, interests and exchange rates.”, The other department managers also agree with this statement. Ms. Truc and Ms. Gam - the managers of frontline departments – all have mentioned that the factors affecting customer SOLUTIONS TO IMPROVE STAFF BEHAVIOR – CASE IN AGRIBANK SONG THAN 14 satisfaction in Agribank Song Than are charges and interests, exchange rate, processing time and the staff’s behavior. “Customer satisfaction in our bank comes almost from the frontline staff behavior. Many times I have to remind the employees about their behaviors toward customers. They can’t distinguish which is the most important thing to do first and whom we have to serve priority leading to the complaints with slow processing time. I have totally agreed with Ms. Hien for the complaints of customers about our high charges and interests.”, Ms. Truc (Manager of Accounting department) stated. “Not only 5-VIPS but also other VIP customers often complain about the exchange rates. They said that our exchange rates do not compete with the other commercial banks such as Mega International Commercial Bank, Shinhan Bank, Taipei Fubon Bank, etc. Several times Ms. Hien has to corporate with me to explain and deal the exchange rate with the customers”, Ms. Gam (Manager of Foreign Exchange department) said. After discussion, the board of directors conclude that the customer dissatisfaction in this case have arisen because of high price, low processing time and employee behavior (2). 3.2.2.1.1 High price Gerrard and Cunningham (2004) stated that the price has effect on customer’s switching behavior in the banks more than customer in other service industries (11). In the banking industry, price effects on costs, interests and charges on loans and savings (11). Colgate and Hedge (2001) conclude that price is an important determinant for the bank customers’ switching behavior (11). Cronin and Taylor (1992); Varki and Colgate (2001) founded that price plays an important role in affecting customer satisfaction(11). Moreover, many pieces of research from Keaveney (1995); Colgate et al. (1996); Stewart (1998); Campbell (1999); Colgate and Hedge (2001); Dawes (2004); Anjum et al. (2011) showed that prices impact strongly on customer’s switching intentions and decisions (11). To explain more for the complaints from 5-VIPS correlating with the high price in Agribank Song Than, the writer interviews the representatives of those customers about the charges, interests and exchange rate and gets responses as below: The General Director of company 1 replies that the USD selling price in Agribank Song Than is often higher than other commercial banks. “Each time my company wants to buy USD for payment import goods to the foreign parties, I often ask the exchange rate from Agribank Song Than, Shanghai Commercial Bank, First Commercial Bank, and Vietcombank, etc. In comparison, I see that the selling price of your bank is higher than that of those banks.” The General Director of company 2 shares that the loan interest in Agribank Song Than is higher than that in Esun bank. “My company needs to borrow money from banks to buy materials to meet the requirements from big orders of foreign buyers. However, your loan interest is higher than that in the E.SUN bank. So I have to choose E.SUN bank although I ask your bank first.” SOLUTIONS TO IMPROVE STAFF BEHAVIOR – CASE IN AGRIBANK SONG THAN 15 The General Director of company 3 complains that the charges for domestic transfer in Agribank Song Than is higher than Vietcombank’s charges: “Your charges for domestic transfer is higher than Vietcombank’s charges when I transfer the same money to the same beneficiary.” From literature and in-depth interviews, a high price on exchange rates, charges, and interests affects strongly on customer dissatisfaction. 3.2.2.1.2 Slow processing time (perceived transaction speed PTS) Chen (2008) stated that the speed for processing is a vital factor in the banking industry (12). To clarify the statement that customers dissatisfy with the processing time of the employees, the researcher have talked with Mr. Hung (Manager of Corporate finance department) and Ms. Truc (Manager of Accounting department) and they shared that customers also displease for their waiting time: “Many customers especially VIP don’t want to wait because the time to them is very important, waiting time is wasting time and money. I hope that our bank will have the best solution for this problem.”, Ms. Truc said. “I have received the complaints about time for receiving and answering a new loan from 5-VIPS that sometimes they have to wait too long to get responses from our department’s employees.”, Mr. Hung said. Furthermore, from face to face interviews with the 5-VIPS’ agents, the picture about customer dissatisfaction because of slow processing time is clearer. The General Director of company 4 claims about the serving time because of crowded customers and processing speed of the bank’s technical system. “I have to wait for a long time to be served because your customers are so crowded. I see that your employees have to explain too many things for personal customers. Besides, I think that may have some problems with your processing speed on salary paying days.” The General Director of company 5 has disappointed with responding time from loan officer: “My documents for borrowing money have given to your bank’s loan officer on mid of October 2019, but until the end of October 2019, I have received the refusing from that officer because our company does not have enough conditions for a new loan. I am very disappointed because I have to wait a half month to know the answer. It wastes my time and effects my business.” From the above analysis, in Agribank Song Than, slow processing time is really influencing on customer dissatisfaction. 3.2.2.1.3 Poor staff behavior Ashill et al. (2005) stated that customer service orientation is a company’s culture founded from its strategies, operation and methods which support the employees to provide superiority services(13). Piaralal et al. (2016) recommended that the capability of employees to communicate customers, pay vital attention to customers’ problems to get their fulfillment and repurchasing by solving clients’ problems are important for making efforts to achieve service recovery(13). SOLUTIONS TO IMPROVE STAFF BEHAVIOR – CASE IN AGRIBANK SONG THAN 16 Staff behavior in this case is the action of the front-line service staff behaving towards the customers which impacts on the customer’s perception about the services (14). Staff behavior can be considered as the main factor for customer satisfaction (15). Gremler, Gwinner, & Brown (2001) said that lacking staff has effect on the working productivity and leads to the bad behavior of the staff (15). Moreover, customers are also dissatisfied when lacking of suitable guidance from banking employees (15). In Agribank Song Than, the customers have also dissatisfied with poor staff behavior as the above statements from the literature. By in-depth interviews, the author considers that 5-VIPS do not satisfy with employees’ attitude very much. Some comments from their representatives are quoted as below: The General Director of company 1 responses that he is really dissatisfied with the staff behavior in communication by using Chinese: “I talk with your bank’s employee in Chinese but she may not understand my demands. Moreover, she ignores me and talks with the other customer when I have to wait and find another one who can speak Chinese to do transaction for me.” The General Director of company 3 complains about incorporative attitude of the accounting employee: “I also have a problem with my credit card. Your employees instruct me to move to several counters at your bank but at last no one helps me to solve my problem. I feel that your employees are not ready for supporting customers to solve problems because there will waste their time.” The General Director of company 5 makes a complaint for unclear instruction for Internet banking service of the employee: “I register Internet banking service at your bank, but your employee does not explain clearly for me about this service while I have no experience for it.” In summary, the staff behavior is really a significant factor that Agribank Song Than should consider to satisfy customers. 3.2.2.2 Poor perceived electronic service quality Service quality is a concept which is hard to define in theory (16). Parasuraman et al. (1988) initially stated that service quality as the overall evaluation of customers for the services which mentions the level of discrepancy and its direction between perceptions and expectations of the customers about service performance (16). Parasuraman et al. (1985, 1988) also presented five features of service quality: reliability, tangible, assurance, responsiveness, and empathy (8). It means that the service quality must be physical facilities (tangible); provided accurately (reliability); willingness to respond the customers (responsiveness); confident and trustworthy (assurance); caring and customized services (empathy) (8). SOLUTIONS TO IMPROVE STAFF BEHAVIOR – CASE IN AGRIBANK SONG THAN 17 Lewis and Clacher (2001) stated that service quality is an important factor to retain and persuade current customers or to attract new customers (17). One of the variables proven to affect the switching behaviors of customers and their intentions for repurchasing products and services is service quality (17). Highly perceived service quality will help to create customers’ loyalty and their actions for repurchasing goods or services (18). In contrast, poor service quality will create negative responsiveness from the customers which leads to customers’ switching and lost in sales and profits (18). Traditional service quality is about the quality of non-internet-based services (18). In this context, we are focusing on electronic service (e-service) quality particularly in commercial banks such as e-banking. Parasuraman et al. (2005) stated that e-service quality has involved with all stages of customers’ operations with an organization, further customers will evaluate the effectiveness of the e-system on service delivery (18). Reliability in e-service quality of websites refers to its technical utility (available and functions properly), which means that the e-banking system performs accurately in conducting e- transactions (18). This will lead to active customers’ perception of the system quality (18). System availability is the ability to run the system smoothly and available e-banking solutions (18). Security is an important factor influencing the perceptions of customers about e-banking service (18). If the customers acknowledge the safety and assurance of successful settlement or receive appropriate responses for their difficulties in using e-services, they will be more satisfied and have positive attitudes towards the e-banking system (18). Responsiveness is described as the willingness of the bank staff or the speedy responses in transactions and customers’ requests (18). Competence is defined as the knowledge and required skills of employees to instruct, listen and inform customers appropriately for every situation (18). The problems of Agribank Song Than in this context are relating to website design and slow speed. It also affects customers’ perceptions about the e-banking service quality of Agribank which leads to their dissatisfaction and switching behavior for using e-banking services of the other banks. 3.2.2.2.1 Inconvenience website design Reichheld and Schefter (2000) stated that the cost of attracting and maintaining a new customer in an electronic situation is usually higher than in the brick and mortar channel (19). On a website, three features: perceived ease of use (PEOU), perceived usefulness and trust have a strong effect on building the continued intention of customers (19). The website designs of all companies need to be improved to meet customers’ demands which have changed and increased day by day. Through in-depth interviews with the customers, the writer realizes that the website design of e- banking services in Agribank Song Than is really annoying the customers. They feel