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CHAPTER 4: RESULTS & DISCUSSIONS

4.2 ANALYSIS OF THE REAL SITUATION OF HUMAN

COMPANY

4.2.1 Assessment on the real situation of human resources in Power Transmission Company No.4

The current business conditions of PTC4 and the development orientation in the future require sorting and arranging labor source according to the principle of “the right person, the right job”. At the same time, it is needful to haveplansfor training to improve workers skills so that they have sufficient skills and knowledge to master modern technologies, constantly improving quantity, quality of products and services. Human resource management includes many related issues such as human resource planning, job analysis, recruitment, training, manpower arrangement, reviewing the results of employees, salary payment, and assurance of other remunerations etc. Hence, before proposing solutions to improve, it is necessary to have a comprehensive analysis of human resource at PTC4.

4.2.1.1 Analysis of labor structure by operations

The number of workers in PTC4gradually increases; if in 1995, at the time of establishment, it had 1,298 persons, then at the end of 2014 it has had 3,270 persons. In general, the labor force in PTC4 has been developing in bothquantity and quality over the time.

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Table 4.1: PTC4’slabor structure by operations in 2014

operation Other Total

Quantity(person) 356 467 1.214 1.061 172 3.270

Proportion (%) 10.89 14.27 37.12 32.45 5.27 100.00

Source: Organization & administration department, PTC4

If considering by labor structure and operations, and using data in 2014, the indirect labor force (working in departments) accounts for 10.89%, the half-direct labor force (supporting block) accounts for 14.27%, direct labor force (operating in the substation and the lines)accounts for 69.57%, and the remaining is the other (security).

Since the production - business planning issued by Decision No. 629/QD-EVN-BODS on November04,2005 that was specified by PTC4 according to Decision No. 02380/QD-TTĐ4.TCHC-YT on April 28,2006, the proportion of workers by operations has been gradually adjusted and it fluctuates around those values.

According to this approach, it is shown that the security force take a relatively large proportion of over 5% on labor force. This is the feature of PTC4 in particular and of the power section in general. The substations and lines always need to be strictly protected.

On the one hand, it is to avoid thieves and on the other hand, it is to prevent acts of sabotage (explosive ignition and incidents etc.) of which the consequences hard to evaluate once it happens.

4.2.1.2 Analysis of labor structure by education level

Table 4.2: Labor structure of 2014 by professional training level Content Being considered by education level, as of 2014, the whole PTC4 had 59 persons with education level of after university; 826 university-level workers; 373 college-level, vocational-level workers, workers from level 5/7 and above or equivalent are 1,104; the rest(workers up to level 4/7, unskilled workers etc.) is 908. Workers in PTC4 are mainly trained from Ho Chi Minh City Electric Power College.

Workers with high qualification: still low in proportion (after university level 1.8%, university level 25.26%). This will lead to the lack of these workers in future because of the current EVN regulations. In order to operate a500kV substation, it is required to have theeducation level from the university or above; chief, head-shift of 110, 220kV stations also requires this level; and probably EVN will gradually require higher one.

Low skilled workers: account for 27.77%. This force needs to be focused on training 17

to improve skills. In addition, they must also learn by them to gain more knowledge, skills.

Language level: the whole PTC4 only has 26 Bachelors of English, 05 Bachelors of French, 02 Bachelors of Chinese, 522 persons gain English level A, 279 persons gain level B while only 59 persons gain level C. In Appendix 1, there are two out of a total of 200 persons earn TOEFL Certificate (450 and 500 points). Beside, only one person gets IELTS score of 5.5. The foreign language of requirement at PTC4 is mostly English in order to do tasks such as making foreign trade contracts; studying technical documents;

contacting and working with foreign experts; attending to conferences, seminars etc. Thus, following the development orientation of PTC4, it is needful to have more training to enhance foreign language proficiency for the departments that are in charge of the jobs related to foreign languages regularly. In case of available conditions, providing training for others on foreign language is also necessary, especially in the context of increasing regional and international integration.

4.2.1.3 Analysis of labor structure by gender

Being considered by gender, the labor structure clearly has a huge difference in the total number of 3,270 employees in 2014. There were only 307 female employees, representing less than 10%. The reason of this extreme imbalance comes mostly from characteristics of business activities of PTC4. Female employees almost only involved in indirect part of production, i.e. working in the departments. Half-direct or direct labors are often male ones because the jobs often require stamina, working outside, multi-day business trip or working on shifts. Specifically, the jobs are as follows: driving (many specialized vehicles), electrical watch and troubleshooting, repairing or upgrading the grid, operating the substations, operating the lines, checking the grid at night etc. Especially, the security team consists of only male employees. So far, PTC4 still has not had any female security staff yet. Therefore, the rate of female employees in PTC4 is very little that reflects the trait of transmission business and there is nothing to worry about. A minor limitation to this issue is the movement activities such as art, contests, visits, care of health and life of employees etc. They are sometimes monotonous and tedious which lack vibrant atmosphere because female employees are too few.

4.2.1.4 Analysis of labor structure by age

According to statistics 2014, the analysis by age demonstrates that labors who are less than 25 years old account for 6.56%, those who are from 25 to 40 years old account for 62.64% and those who are over 40 years old account for 30.80%. The average age is 30. In general, younger workforces who are in ages of dedication constitute the majority.

However, employees who are over 40 years old are also account for a relatively high percentage. Those are seniors with great experience; hence, it is needful to take advantage of their contribution and their experiences. At the same time, it is required to have a strategy on the additional human resource once this generation enters the retirement.

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The above analysis partly outlines the current labor team in PTC4. Noticeably, there is still a big direct labor force with low workmanship; their foreign language skills and the use of foreign language in work are also still limited; the experts, specialists etc..

with high level of expertise are very few. Thus, it is needful to invite foreign experts to support when having demand (time consuming, costly, not actively at work etc.). From these analyses, we will have a comprehensive view to see the limitations and the causes of unsettled problems in business activities of PTC4 on the human resource angle to assess and find solutions to improve the human resource management.

4.2.2 Real situation of human resource management in Power Transmission Company No.4

4.2.2.1 Analysis of the personnel attraction and arrangement at the Company a. Analysis of works at PTC4

Job analysis, job description and job requirements are considered the key issue of the human resource management. PTC4 is currently not conducting these officially. The leaders and employees mainly exchange views on conditions for job performance, tasks, responsibilities, and powers when performing the job and the quality of employee skills needed to perform a good job without written specific rules. Therefore, the staffs in charge of different jobs are very hard to learn about the jobs of other employees. Even colleagues in the same departments sometimes do not know clearly other persons’ job. This causes obstacles when the job is done by other employees (co-workers illness, maternity, leave of absence etc.) or when there is a movement of employees from one unit to another.

Employees who are on the movement are also very passive because they do not know the characteristics of the new job. The more important thing is that the job description and job requirements are the basis for recruitment, training, arrangement, using and evaluating the job performance of the staffs. To overcome these problems, the company needs to analyze the job to build the two important documents: job description and job requirements to have the basis for recruitment, training, or job swap when needed.

b. Recruitment activity at PTC4 Recruitment sources:

External recruitment sources:

Being a State-owned enterprise, PTC4 has never posted recruitment advertisements on mass media. Thus, those who are finding jobs are very difficult to access the information about the company’s recruitment. Typically, in recent years, the number of people who were employed have come by themselves or come from recruitment agencies only accounts for about 12%-15%. Meanwhile, the number of people who were employed by the recommendation from PTC4’s employees and from the Ho Chi Minh City Electric Power College accounts for about 70%. Recruitment sources from other schools primarily come from Ho Chi Minh City University of Technology, Ho ChiMinh City

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University of Technology and Education etc. We can say that in PTC4, the recruitment sources come from PTC4’s relatives or through recommendation, guarantees of employees in the unit. The recruitment advertising outside of the company is very limited.

PTC4’s recruitment sources over the years are demonstrated in the following statistic:

Table 4.3: PTC4’s recruitment situation over the years

2012 2013 2014

Recruitment sources Number (persons) Percentage (%)

Source: Data consolidation from Organization & Administration Department Disadvantages and advantages of internal recruitment sources:

Advantages: it is very easy to know the candidate’s CV, easy to communicate.

Disadvantages:

- Some people outside of the company lose their opportunity; PTC4 also skips the chance to recruit talented people.

- No competitiveness, employment interview is just for the look. Sometimes, the company must recruit even unsatisfactory persons; thus, it makes a precedent of relying on others for peoples who know “the higher”.

- Relationships in the enterprise become complicated and can cause difficulty in executive management etc.

Cause: PTC4 is still a State-owned enterprise; there is the influence of the ask-and-give mechanism and thought of administrative management. Besides, the relationships within the company are quite complicated so far.

Standards in recruitment:

Recruitment standards are prescribed in the power production - business planning promulgated by EVN along with the Decision No.629/QD-EVN-BODS on November 04, 2005; however, it is not widely applied, and only keeps a few basic standards while the rest is more subjective or depends on the relationship. It has never had the case that an

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employee was fired because he/she does not satisfy job requirements. Some recruitment standards that are usually applied in PTC4 over the last time:

- Education level and professional level - Gender, health, residence place - Availability for shift work etc.

The other standards that are almost never applied:

Work experience

Ability to work independently or work in team

Being knowledgeable about the power transmission industry and field; being enthusiastic and passionate for work; being honest, studious and ambitious etc.

Thus, the current recruitment standards in PTC4 have still not been complete and specific.

Disadvantages and advantages of current recruitment standards at PTC4:

Advantages: it is easy to select candidates and also convenient for both sides (employers and candidates) when most candidates are recommended, guaranteed by company’s employees or their relatives.

Disadvantages: it is very easy to have situations where candidates cannot satisfy job requirements; therefore, it is needful to arrange them to other jobs or have to take time to be trained before they can actually do their jobs.

Causes:

Request from human resource as well as the strategy for human resource development has not been clearly defined.

People who directly do the recruitment activities have not been equipped with the advanced knowledge about human resource management yet.

Candidates from internal sources are also limited in terms of ability.

The steps of the recruitment process:

The steps of recruitment process are as follows:

Recruitment preparation:

To prepare for the recruitment, PTC4 establishes a Recruitment Council which will then proceed to determine the requirements for each selected job. The Council’s structure includes:

Chair of the Board

Council: Head of Organization &Administration Department

Commissioners: Union Chairman, head of departments or units that need more workers, training officers, medical officers and officers who are in charge of emulation and awards.

Collecting and preselecting candidates’ profiles:

All the profiles are moved to the Organization and Administration Department, mostly to check the adequacy of documents: application, CV with endorsement of the locality,

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medical certificate from authorized institutions and a copy of the qualification certificates, degrees of professional knowledge. All the documents are made according to the general form of the Government. PTC4 has not had specific form for different kinds of candidates into difference positions and for different jobs.

Interview:

The interview is mostly formalism, primarily to ask for more information about candidates because most resumes are “submitted” by employees of the Company or from graduated students from Ho Chi Minh City Electric Power College. These have not focused on the knowledge and skills related to the ability to perform the jobs.

Making decision on recruitment:

Most of the profiles after the interview are decided to be recruited all. There are very few opposite ideas in the Recruitment Council because there is no clear standard. The recruitment decisions have stated clearly: position, place of work, salary, probationary period (usually 01 month). In case of decision on recruitment, candidates will be in probationary period and will be paid 85% of the wage coefficient by rank. During this time, the employees are briefly introduced to the electricity sector, the company, labor regulations; and electrical safety etc. When the probationary period ends, if there is no hindrance, workers will sign a 12-month employment contracts. After 12 months, employees will be considered to renew the employment contract for 36 months. After 36 months, employees will be considered to renew the contract without time limit. After signing the employment contract, employees are entitled to 100% of the wage coefficient, social insurance, and medical insurance according to the regulations.

Disadvantages and advantages of the recruitment process of PTC4:

Advantages: it is simple, easy to conduct, less time consuming and able to recruit new candidates soon

Disadvantages:

It is hard to select the best candidates.

Many stages in the recruitment processes are formalism; they do not reply on specific standards, and have not tested. Hence, it has not assessed the capacity of the candidates correctly.

Causes:

The members who join in the recruitment process have almost never received training for relevant skills: analytical skills, interview skills etc.

The company has not realized the importance of recruitment process for the enterprise.

It has not analyzed the jobs properly; therefore, it does not have job requirements for the basis of recruitment.

c. Assigning, arranging and promoting staffs:

Assigning and arranging staffs:

For those new workers who have just assigned, it is needful to assign jobs that match 22

their ability; for those who are working, sometimes they should be assigned more or less jobs, or transferred within a department or unit. All of these actions are decided by the head of the department or unit. However, the whole PTC4 in general exist many levels of management with cumbersome system. In addition, solving the problems of redundant or inconsistence with the undertaking positions of staffs is still facing many difficulties.

This has influence on the productivity of workers as well as the work motivation, the dedication of other employees who have the appropriate skills and level.

Transferring employees from this department, unit to other ones sometimes happen.

The transfer is done by the decision of the directors of the company with the following causes:

Worker rearrangement between this place and other places for a better fit.

Some employees, through self-learning from outside or being provided training to improve their professional expertise and workmanship, will be transferred to another place to perform new job.

Having fault in work; hence, being transferred to another place.

Being transferred because of staff organization, which means that the officers in plan have been moved over many different positions before being promoted, and appointed.

A few cases are resolved by the aspirations of workers (to work closer to home, to have convenience in driving children to school etc.)

Move workers to a place temporary to support that place to resolve its work in a certain period of time, then they return to the former position.

Therefore, assigning reasonably or unreasonably will directly affect the job performance of staffs, the effectiveness of all departments, units. Ultimately, it affects the whole company’s result.

The issue of promotion and appointment in PTC4:

Promotion and appointmentin PTC4 is done by Party Committee, the Board of Directors and the Organization & Administration Department. PTC4 has issued the regulation of officer tasks along with Decision No.07155/EVN-TTD4-TCHCYT dated November 20, 2002. In principles, through working process, workers with higher professional skills, good workmanship, always strive for the better. They have good leadership, ethics, healthy lifestyle etc. It means that peoples who meet all the conditions of this regulation will be put into the plan. When the time comes, officers who are in the plan will be promoted/appointed. However, in reality, sometimes, things do not happen just like that. Those who are in the plan are not always fit for the regulation.

Officer planning list is a secret and tender matter that is the “very private thing” of the Party, the Board of Directors and the Organization & Administration Department. Some cases are deserved to be promoted, appointed but they do not get promotion or appointment because they are not a Party Committee member, while strive to become party members is another matter. Not to mention a few cases who are promoted,

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appointed but not in the plan.

To have more related information, the author asked for the opinions of 200 employees in the company:

Table 4.4: Remark about the promotion of 200 employees in PTC4

Number of people who evaluate according to

degrees Questions

1 2 3 4 5 You have many opportunities to be promoted in the company. 67 96 15 12 10 You know the conditions to be promoted. 66 79 24 19 12

Company’s promotion policy is fair 55 80 21 27 17

Notation: 1: Very incorrect/Strongly Disagree; 2: Incorrect/Disagree; 3: Slightly incorrect/Slightly disagree; 4: Correct/Agree; 5: Very correct/Strongly Agree.

Source: Quoted from Appendix 1

The result demonstrates that there are 145 persons (accounting for 72.50%) disagreed or strongly disagreed when being told that they know the necessary conditions to be promoted. Only 22 people (11%) agreed or totally agreed that they have many opportunities to be promoted. Only 44 people (22%) agreed or totally agreed with the fact that Company’s promotion policy is fair.

Examining the promoting, appointing process in PTC4 shows that the Company had an advanced step in this process by building the regulation of officer tasks. However, the jobs in reality have not really been openly done so that everyone has a target to strive for. It inclines towards resume, records, seniority etc. which have affected the motive to

Examining the promoting, appointing process in PTC4 shows that the Company had an advanced step in this process by building the regulation of officer tasks. However, the jobs in reality have not really been openly done so that everyone has a target to strive for. It inclines towards resume, records, seniority etc. which have affected the motive to

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