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Department of Business Administration

I-Shou University

Master thesis

Solutions to improve human resource management at

the Power Transmission Company No. 4

Advisor: GUEY, CHING CHUNG, Ph.D

Co-advisor: BUI THI MONG TRANG, Ph.D

Graduate Student: NGUYEN MINH TRUNG

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Acknowledgement

As preparing my Thesis, I was assisted by the caring Teachers, friends, and the Power Transmission Company No. 4 employees.

I am grateful to Ph.D Guey Ching Chung and Ph.D Bùi Thị Mộng Trang, who provided scientific guidelines for my Thesis and wholeheartedly and fully supported me to complete my Thesis.

I am grateful to the guide and support by the Instructors in the Business Faculty and the Post-graduate Department.

I am grateful to the Members of the Board of Examiners, who perfected my thesis with your suggestions for the flaws of my Thesis.

I am grateful to the leaders and the Power Transmission Company No. 4, who co-operated and provided the material for my thesis. Particuarly, I am grateful to the employees who fill in the Employee’s Opinion Survey Form and provide me the information for my analysis and evaluation.

Finally, I am deeply grateful to the precious knowledge given by the Instructors in ISHOU, Hong Bang International University, Electricity University.

AUTHOR

NGUYEN MINH TRUNG

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Abstract

Power is a very important product of each nation. Vietnam needs Vietnam Electricity to develop strong enough to serve electricity consumption needs of the whole country. Activities of Vietnam Electricity consist of many stages, in which distributing electricity is the last stage of power production and business processes in Vietnam. Therefore, the more effective power distribution activity will significantly contribute to the overall success of the power sector. The Power Transmission Company No. 4 is the largest power distributor of Vietnam Electricity, so improving quality of human resources in Vietnam Electricity is very meaningful, which bring about not only benefit for the Power Transmission Company No. 4, but also for the power sector.

The thesis has solved some theoretical and practical problems to improve human resources of the Power Transmission Company No. 4 as follows:

Firstly, to review basic theory of human resources comprehensively, improve human resources in order to draw the concept of human resources, improve human resources and basic contents of improving human resources for enterprises.

Secondly, to research and analysis the status of improving human resources of the Power Transmission Company No. 4 to determine strengths, weaknesses, advantages and disadvantages for the improvement of human the Power Transmission Company No. 4 in the coming years.

Thirdly, to build perspectives and goals to improve human resources in the Power Transmission Company No. 4 based on strategic development objectives of Vietnam power sector and strategies to improve quality of human resources.

Fourthly, to propose major and necessary solutions to enhance human the Power Transmission Company No. 4.

In addition, the thesis also proposes a number of recommendations to the State and Vietnam Electricity to create favorable conditions for development of human resources the Power Transmission Company No. 4 in particular Vietnam power sector in general.

Keywords: human resources management, development strategy, power transmission company

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TABLE OF CONTENTS

Acknowledgement ... i

Abstract ... ii

TABLE OF CONTENTS ... iii

LIST OF TABLES ... v

CHAPTER 1 INTRODUCTION ... 1

1.1 RATIONALE FOR CHOOSING THE TOPIC ... 1

1.2 RESEARCH OBJECTIVES ... 2

1.3 SUBJECT AND SCOPE OF RESEARCH ... 2

1.4 RESEARCH METHOD ... 2

1.5 SCIENTIFIC AND PRACTICAL SIGNIFICANCES OF THE RESEARCH TOPIC... 2

1.6 HIGHLIGHTS OF THE THESIS ... 3

1.7 STRUCTURE OF THE THESIS ... 3

CHAPTER 2 LITERATURE REVIEW ... 4

2.1 THE CONCEPT OF HUMAN RESOURCE MANAGEMENT ... 4

2.2 THE DEVELOPMENT PROCESS OF HUMAN RESOURCE MANAGEMENT IN VIETNAM ... 6

2.3 THE MAIN CONTENTS AND FUNCTIONS OF HUMAN RESOURCE MANAGEMENT ... 8

2.4 EXPERIENCE OF HUMAN RESOURCE MANAGEMENT OF SOME COUNTRIES IN THE WORLD ... 10

CHAPTER 3 RESEARCH METHODS ... 12

3.1 INTERVIEW METHOD FOR COLLECTION OF PRIMARY DATA ... 12

3.2 SECONDARY DATA COLLECTION METHOD ... 12

3.3 OBSERVATIONAL METHOD ... 12

3.4 COMPARATIVE METHOD ... 12

3.5 FORECASTING METHOD ... 13

CHAPTER 4: RESULTS & DISCUSSIONS ... 14

4.1 INTRODUCTION ABOUT POWER TRANSMISSION COMPANY ... 14

4.2 ANALYSIS OF THE REAL SITUATION OF HUMAN RESOURCE MANAGEMENT IN POWER TRANSMISSION COMPANY ... 16

4.3 VIEWPOINTS AND OBJECTIVES ... 39

4.3.1 The viewpoints, objectives and development trend in power sector ... 39

4.4 SOLUTIONS FOR IMPROVEMENT OF HUMAN RESOURCE MANAGEMENT AT POWER TRANSMISSION COMPANY NO.4 ... 41

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CHAPTER 5 CONCLUSION & RECOMMENDATION ... 66

5.1 GENERAL CONCLUSION ... 66

5.2 RECOMMENDATIONS ... 66

5.3 SOME NEW POINTS OF THE THESIS ... 68

REFERENCES ... 69

Appendix 1 THE QUESTIONAIRE FOR THE OPINION OF EMPLOYEES IN THE COMPANY ... 71

Appendix 2 The way to determine h1j, h2j, h3j ... 75

Appendix 3: Determine rewarding point of safety operation of power Đi ... 77

Appendix 4: Evaluation of job performance result for Head of Supply Department ... 81

Appendix 5: Evaluation of achievement in month of departments, units ... 83

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LIST OF TABLES

Table 4.1: PTC4’slabor structure by operations in 2014 ... 17

Table 4.2: Labor structure of 2014 by professional training level ... 17

Table 4.4: Remark about the promotion of 200 employees in PTC4 ... 24

Table 4.5: Forms of training in the PTC4 ... 25

Table 4.6: Costs of training in the PTC4 ... 27

Table 4.7: Assessment of 200 employees on training activities in the PTC4 ... 27

Table 4.8: Assessment on the job performance ... 28

Table 4.9: Feedback of 200 employees in evaluation of job performance in the PTC4 ... 30

Table 4:10: Feedback of 200 employees about the salary in the PTC4 ... 34

Table 4.11: Bonuses for some typical titles ... 37

Table 4:12: The income of workers over the years in PTC4 ... 38

Table 4.13: List of groups of abilities ... 48

Table 4.14: Determining the gap of the ability for “officers and leaders” positions: ... 50

Table 4.15: Determining the gap of ability for “indirect employee” position ... 52

Table 4.16: Determining the gap of ability for “technical staff” position ... 53

Table 4.17: Determining the gap of ability for “technical staff” position ... 54

Table 4.18: Abilities that need more additional training ... 55

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CHAPTER 1 INTRODUCTION

1.1 RATIONALE FOR CHOOSING THE TOPIC

For Vietnam, electricity industry is one of the key industries. It plays a very crucial role in promoting the socio-economic development, considerably contributes to the process of poverty reduction and strengthensthe industrialization and modernization, ensuring the security and national defense of the country. The products of the electricity industry are considered as the lifeline of the modern economy.

On June 22, 2006, Vietnam’s electricity industry officially entered into a new development period with the approval of the Pilot project on the establishment of the Vietnam Electricity. The project aims at becoming a corporation with modern technology and management level, diversified business lines, in which construction, production and trading of electricity, public telecommunications, finance, banking, electrical engineering are key business branches, not only being operative domestically but also abroad, gradually forming the electricity market. In regards to production and trading of electricity, the National Power Transmission Corporation was organized into three main stages includingelectricity generation, electricity transmission and electricity distribution. The Power Transmission Company No. 4 is an accounting member, which is dependent on the Vietnam Electricity, with the main function and duty of transmitting power together with other four Power transmission companies (including: Power Transmission Company No. 1, Power Transmission Company No. 2, and Power Transmission Company No. 3). Allof them are responsible for the power transmission of the whole country. In the near future, the National Power Transmission Corporation on the ground of reorganization of the four existing Power transmission companies and project management units of the electricity industry shall be established for power transmission.

Therefore, the electricity industry in general is facing major changes and the Power Transmission Company No. 4, which is a unit in the industry, is demanded to change. These changes aim to satisfy the following issues. Firstly, it is needful to ensure the adequate supply for electricity consumption demand (forecasted to be raised) of the country, carry out the engagement in the multi-sector production and trading, and increase the company’s value. A question that has been raised here is how the resource must be prepared for such changes. Among the resources that need preparing, human resource is considered extremely crucial. For the case of the Power Transmission Company No. 4, the improvement of human resource management is currently more significant than ever because of the following reasons:

- The current human resource management in the Power Transmission Company No. 4 has been actually involved in personnel management with heavy administrative nature.

- In order to meet the requirements of economic integration in the new situation, it is necessary to have fundamental changes and approachmodern human resource management

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methods.

- The establishment of the National Power Transmission Corporation includes the merger of the Power transmission companies, including the Power Transmission Company No. 4. Therefore, the human resource management should be improved and reorganized.

Stemming from the above issues, I chose the topic “A number of solutions to improve human resource management at the Power Transmission Company No. 4”as my Graduation thesis.

1.2 RESEARCH OBJECTIVES

The research objective is to explain the scientific and practical foundation to outline a number of solutions to improve human resource management at the Power Transmission Company No. 4:

- Presenting the general theoretical issues of human resource management; Outlining the experience of advanced countries on human resource management

- Analyzing and assessing the status of human resource management in the Power Transmission Company No. 4; clarifying the unsolved issues and the necessity to change them

- Orienting the development of the Power Transmission Company No. 4 and proposing solutions to improve human resource management

1.3 SUBJECT AND SCOPE OF RESEARCH

The subject of this Thesis is the Power Transmission Company No. 4, an affiliation of the Vietnam Electricity. The research scope of the Thesis is the issues related to the theoretical foundation and the status of human resource management in the Power Transmission Company No. 4, thereby outlining a number of solutions to improve human resource management. The research was conducted from February, 2015 to December, 2015.

1.4 RESEARCH METHOD

The dialectical materialist method and historical materialist method constitute the general research methodology.Based on these, the Thesis employs various specific methods such as Analytical method, statistical method, forecasting method,practical surveying method, and comparative method, etc.

1.5 SCIENTIFIC AND PRACTICAL SIGNIFICANCES OF THE

RESEARCH TOPIC

Vietnam is in a process of far-reaching integration with the world, requiring domestic enterprises to operate more efficiently.The electricity industry is gradually changing toward a

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competitive electricity market. Electricity transmission operation is the main function and duty of the Power transmission companies as regulated by the State. In addition, these companies are also participating in many other types of business production and trading to increase corporate value. With the current method of human resource management in the Power Transmission Company No.4, it not only provesthe inadequate in the present time but also even nonconformities in the development orientations for production and trading in the future. The content of the Thesis is to offer a number of solutions to improve human resource management for the Power Transmission Company No.4 to meet the orientations of multi-sector business, in which electricity transmission operation is the main function and task. In addition, the leaders of the Power Transmission Company No.4 paid attention to this hot topic of current events.

1.6 HIGHLIGHTS OF THE THESIS

This Thesis has been researched in a particular enterprise, which features the specific characteristics of the electricity industry. In the period when the electricity industry is undergoing very extensive transformation and electricity transmission operation is performing significant reforms, the research results of the Thesis shall solve the most topical issues, which are indeed being set for the managers of the Power Transmission Company No.4. Therefore, the Thesis may be considered as one of the most practical research for the Power Transmission Company No. 4 in particular and for the Vietnam Electricity in general.

1.7 STRUCTURE OF THE THESIS

The Thesis consists of five chapters: Chapter 1: Purpose of the research Chapter 2: Theoretical foundation Chapter 3: Research methods Chapter 4: Analytical results

Chapter 5: Conclusions & Recommendations

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CHAPTER 2 LITERATURE REVIEW

2.1 THE CONCEPT OF HUMAN RESOURCE MANAGEMENT

Before analyzing and proposing solutions to improve the human resource management, it is necessary that we agree on the concept of human resource management.

According to Flippo, “Personnel management is to plan, organize, direct and control and examine the procurement, development, compensation, integration, maintenance of human resource in order to achieve the organization’s goals.”

Moreover, the University of Personnel Management suggests, “Human resource management is the responsibility of all managers and the responsibilities described in the job description for those who are hired as professionals. It is a part of the management related to humans at work and their relationships within the enterprise.”

With the viewpoint of Torrington and Hall, “human resource management is a series of activities which firstly enable working people and their employing organizations to agree about the objectives and the nature of their working relationship.Secondly, it ensures that the agreement is fulfilled.”

Thus, human resource management focuses on recruiting, developing, rewarding and directing staffs to achieve the organization’s goals. By that stage, human is only considered as the input element of the production and trading process, without an important role in the enterprise and their benefits are not properly paid attention for. Human resource officers usually perform the functions of the human resource management and it has not established the close relationship between the enterprise’s business strategy and the human resource policies and procedures in the enterprise.

When mentioning Human Resource Management, French and Dessler focused on the elements of scope and contents being performed. According to French, “Human resource management is the philosophy, policies, procedures, and practices related to the management of people within the organization.”

In general, there are three different viewpoints on the relationship between personnel management and human resource management on the world:

- According to the first viewpoint, human resource management is simply used to replace the former concept of personnel management. This viewpoint emphasizes on the scope and object of human management in enterprises. No matter what it is called, that is personnel management or human resource management, the human management in an organization, enterprise in the modern world is no longer solely the staff administrative management style as before. Personnel management has been called by a new name for it has improved itself to fit the new business environment. Representatives of this school include W. French, Dessler G, etc. This viewpoint is not consistent with the actual

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demands because it has not been able to clarify the two goals of human resource management1 and the pivotal role of human factors in organizations. It is not necessary to change the name of personnel management if it is only emphasized on the scope and subject of research.

- According to the second viewpoint, human resource management is completely different from personnel management. Human resource management features new viewpoints, new philosophies and sets out a new method and new approach for management. This viewpoint emphasizes the importance of human resources in organizations and emphasizes the new management methods through the coordination of administrative functions for human and those for the strategic management of the enterprise.In addition, it emphasizes the necessity of fully using the human resources of the organization in the best way. The University of Michigan, Harvard School of Business Administration, University of Stuttgart, researchers as Staehle, Pierper. Guest, Walton, Carrel, Elbert, Hafield, Blyton, Turbull, M. Foot, C. Hook, Mabey and Graeme, etc. are the typical representatives of this school. In the developed countries, both leaders and employees have high qualifications and employees have high living standards and demands, have industrial style, good discipline, high self-consciousness, etc. there will be conditions to implement human resource management in this way. In addition, in the world from the 1990s onwards, when the top competitive advantageof enterprises has been associated with the quality of management and quality of human resources, enterprises have had to adopt new viewpoints, new methods in human management to improve competitiveness.

- The third viewpoint suggests that human resource management is not a revolution, but the next stage of development, the expansion or improvement of personnel management. This school includes Legge, Cherrington, Torrington and Hall, Wayne, Noe, etc. This viewpoint is considered as neutral in terms of nature compared to the two viewpoints above. It emphasizes the role of human factors in an enterprise and stresses the need to improve the human management without strict requirements or operating conditions in a highly professional level, which is suitable for the requirements and conditions of the developing countries.

Particularly, in countries of which economies have been transformed from centrally planned economies to ones of market mechanism, the difference between personnel management and human resource management is very large and it has specific nature. During the period of centrally planned economies, not all personnel policies at the state-run units depended on production natures, technical level of technology, labor, etc. The works related to recruitment, training, appointment, salary payment, rewarding, discipline, retirement, etc. are enacted by the State and are implemented as social policies at the macro level. Therefore, the human resource management approach in these countries requires enterprises to have rights to human resource management, new viewpoints and

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philosophies, and entirely new methods. The basic differences between personnel management and human resource management in developing countries or those who have transformed economies are shown in Table 1.1. Human resource management is both an indispensable requirement of economic reform and the next stage of development of human resource management. Thus, the concept of human resource management in the developing countries that have reformed economies must satisfy the basic requirements and content as follows:

1 Demonstrating progressive viewpoints on the rights of the laborers; emphasizing the combination of satisfaction of both the enterprise’s and employees’ objectives

2 Specifying the research scope and subject as human management in organizations 3 The enterprise’s strategies, policies for human management must serve the enterprise’s business strategies and policies.

4 Being able to demonstrate the key elements of human resource management, including the philosophies, policies and practical activities

5 Not requiring special conditions when applying 6 Being brief, simple, understandable

Thus, in a transformed economy like the one in Vietnam, where the level of technology and engineering is still at a low level, the economy has not been stable yet and the State’s policy is that development must be carried out by humans and for humans, Human resource management is a system of philosophies, policies and functional activities for procuring, training, developing and maintaining the humans in an organization to achieve optimal results for both the organization and employees.

2.2 THE DEVELOPMENT PROCESS OF HUMAN RESOURCE

MANAGEMENT IN VIETNAM

In Vietnam, during the centrally planned period, research and training in the field of human management in enterprises were carried out through the following subjects: Scientific labor organization, labor norms and salary. Despite the great differences in development history and economy, the reality of human resource management of Vietnam during the centrally planned period was similar to that of the Eastern European countries, the Soviet Union and China. The basic components of human resource management such as recruitment mode, training and development, wage, promotion, labor relations, etc. are the general policies of the State. Almost they are not related to the operating practices in each specific enterprise. Lifelong employment regime and other social welfare policies (Houses of the State, public health, free education,etc.) has brought great social security for all citizens, especially the State’s civil servants. The implementation of these State policies is in line with the socialist principles. This means that every laborer has the right to work, has the right to have house. Training and development have been carried out as a natural

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benefit of the employees, especially for the State’s civil servants to develop human resources for the society. They are not considered as personal investments. The waging system features the average nature and it replies on seniority.

The socialist form in personnel management indicates the superiority of the socialist regime compared to democratic capitalism, feudalism. In the first phase, it evoked the revolutionary enthusiasm and voluntariness for work for a bright socialist future within the laborers. Thus, labor productivity and industrial products increased. However, this form of personnel management has inflexibly existed for a long time while the economic and social environments have seen fundamental changes. Therefore, it loses the initial superiority and it has gradually become incapable of stimulating the laborers at work. This is one of the important reasons for poor labor productivity and business efficiency, State owned enterprises are increasingly becoming a burden for the State budget. In addition, the consequence arises when a low sense of discipline of many State’s civil servants in the final stage of the centrally planned period.

In the process of economic reform, the new elements of the market economy have been gradually replacing the former management principles and procedures. The State intervention in the activities of enterprises have been decreased, a new management method and a new environment for human management have been gradually formed in enterprises. Many major changes derived from economic demands have been implemented in human resource management. The transformation into the market economy in the reality of human resource management in Vietnam is the transition from the lifelong employment regime into labor contract regime. It changes from the form in which training and development are seen as employees’ natural benefit for the human resource development into the individual investment. In addition, it also changes from the system of average salary and seniority planned and paid by the State into the remuneration system being responsible by the enterprises. Moreover, it shifts from the State’s in-deep involvement in and strict inspection for business activities of enterprises into the enhancement of powers and responsibilities of directors and of enterprises’ autonomy. The differences in human resource management practices between State-owned enterprises and non-state ones have been reduced. State-owned enterprises and State’s civil servants have transformed themselves from a passivelyState-dependent state into a dynamic, active, self-reliable state. The progress of human resource management is regarded as one of the important reasons that boost business activities toward more effectiveness.

However, the challenges for human resource management in enterprises in Vietnam are considerable, that involves in the effective way to manage human resource. Enterprises need to have human resource management system with new policies on recruitment, training, wage, rewarding and assessment that are suitable with the new requirements and the human resource management approach in the market economy.

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2.3 THE MAIN CONTENTS AND FUNCTIONS OF HUMAN

RESOURCE MANAGEMENT

Human resource management is related to all the issues of employees’ rights, obligations and responsibilities that aim at achieving high performance for both the organization and employees. In reality, these activities are diverse, plentiful and very different depending on the characteristics on organizational structure, technology, human resources, finance, development levels of the organizations. The basic content of human resource management includes the following activities: human resource planning, recruitment planning, staffappointment, training, rewarding, discipline, remuneration, etc.

Some authors have defined the functions of human resource management according to the specific activities such as Planning, job analysis, recruitment, training, employee evaluation, rewarding, discipline, remuneration, labor relations, etc. With this approach, there will be approximately 8-12 basic functions in the human resource management model. Representatives for this school include Carrell, Elbert, Hatfield, G. Dessler, French, A. Buckley, etc.

On the contrary, some other authors have classified human resource management activities into a number of basic functional groups. For example, according to J. J. Bratton and J. Gold, human resource management model features five following basic functions: Staff appointment, rewarding, employee development, employee retention and public relations. Moreover, according to David De Cenzo and Stephen Robbins, human resource management model has four basic functions: Starting, developing, motivating and maintaining.

However, to help managers to have a logical overview and make it easy for them to identify the typical characteristics of the implementation style and method of the human resource management models, the main activities of human resource management can be categorized into three main functional groups:

- Group of functions for human resource procurement. This group of functions focuses on ensuring an adequate number of employees of appropriate qualities for the workof the enterprise. To be able to recruit the right personnel for the right position, firstly the enterprise must take into account the business plan and the actual use of its employees to identify which workare in needs of recruitment of more personnel. The performance of work analysis will show how many additional personnel the enterprise needs to recruit and how the requirements on qualification set for the candidates will be. The application of the recruitment skills (testing, interviews, etc.) will help the enterprise to select the best candidate for the job. Therefore, the functional group of recruitment often features activities such as forecasting and planninghuman resource, analyzing job, interviewing, testing, collecting, storing and processing the information on the enterprise’s human

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resource.

- Group of functions for training - development. This group of functions emphasizes the improvement of the employees’ capacity. It ensures that the employees in the enterprise have the necessary professional skills, qualifications to well complete assigned tasks and facilitates employees’ maximum development on individual capacities. Enterprises apply vocational and training programs for the new employees in order to determine the actual capacity of the employees and help them become familiar with the work of the enterprise. At the same time, enterprises also often set up training and retraining plans for employees whenever there is a change in demand in production and trading, or in technical procedures. The group of function for training and development often performs the activities: Career orientation; training; practical skills training for workers; fostering and raising skill qualification level and updating knowledge on management, technology for the managers and professional staffs.

- Group of functions for human resource maintenance. This group of functions focuses on maintaining and effectively using human resource in the enterprise. It consists of two smaller functions. They are the employee stimulation and motivation, and the maintenance and development of good labor relations in the enterprise. Among them, the functions of employee stimulation and motivationare related to policies and activities that encourage, motivate employees in the enterprise to work passionately, enthusiastically, responsibly and finish work with high quality. Apart from assigning employees highly challenging tasks, providing employees with the evaluation results by the leaders about their level of completionor the meaning of their task completion to the operation of the enterprises, high and fairly pay, being prompt in rewarding individual for their initiatives, technical innovation, production rationalization, contribution to increase business efficiency and reputation of the enterprise, etc. are effective measures to procure and retain the skilled workforce for the enterprise. Therefore, building and managing the salary scale system, establishing and applying policies for wages, promotion, discipline, bonuses, welfares, allowances, assessment on employees’ work performance are the most important activities of the functions of stimulation and motivation. In addition, to maintain the human resource, enterprises also establish good labor relations related to the activities to improve the work environment and relationships at work, for example,signing labor contracts, settlement of complaints, labor disputes, employee relations, improvement of the working environment, medical care, insurance and labor safety. A good settlement of labor relationships will not only help a enterprise create an atmosphere of collective psychology and the good traditional values, but also make employees satisfied with the job and attached themselves to the enterprise.

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2.4 EXPERIENCE OF HUMAN RESOURCE MANAGEMENT OF

SOME COUNTRIES IN THE WORLD

2.4.1 EXPERIENCE OF JAPAN

Japan is now the second most developed country, after the United States. Japan has a traditional and humane culture. Japanese society has distinct tradition and class, with the targeted emphasis on connection and development. Human resource management in the land of cherry blossoms traditionally has the following characteristics:

- The company is a big family, with work related to groups, friends, and many overlapping relationships.

- The employees and the company share the same fate due to the seniority regime and lifelong work.

- The country has long-term recruitment regime, may be lifelong. The employees are loyal and concerned about long-term benefits. They have dignity with high collective spirit. They are hardworking, positive, enthusiastic in their work, task-completion oriented, not working-hour oriented.

- Training is implemented in a large scale and involved in multi-skills. It emphasizes on quality and the relationship between training and use.

- Salary, bonus and stimulation are of average nature.Seniority still plays an important factor as a basis for promotion and advancement.

- Job descriptions, which have large scale with rich content, are vague.

- There is a big distinction between male and female employees in recruiting, training, advancement opportunities and salary.

- Decisions are made in groups; the employees like to participate in the work of management.

However, from the late 1970s to the present, especially in the 90s, the factors of culture, economy, society and technology of Japan saw fundamental changes. The opposition in life philosophy between the middle-aged and senior employees with the young one gradually formed in many companies. The Japanese youth today has received a part of Western lifestyle. They do not value loyalty to the company as before and do not appreciate the superiority of the lifelong employment regime. On the contrary, they want to uphold individual liberty factors, want to enjoy more, and emphasize on material values. Consequently, human resource management in Japan has made adjustments. Seniority-based wage regime has been supplemented with the elements related to work quality system, promotion. These take into account the elements related to capability and actual work results, etc.

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2.4.2 EXPERIENCE OF SINGAPORE

Singapore is a young nation in Asia (became an autonomous Government in 1959) that is Europeanized and fluent in English. According to statistics in 2007, the population of this country was about 4.6 million people (76.8% of which are Chinese, 13.9% Malaysian, 7.9% of Indian, Pakistan and SriLankan; 1.4% of other ethnic groups). Singapore’s human resource is diversified in race, culture and religion. The Government pays special attention to education and training, invests heavily in human resource development. Singapore has confirmed the national values that allow its citizens to retain the characteristics and cultural heritage.For example, the national interests are prioritized over the interests of the community. The society benefits are put above the individual benefits. Families are the fundamental nucleus of the society.Community support and respect for individuals.It has the unanimity, consensus, avoidance of conflict as well as racial and religious harmony. Leaders regularly remind people about the need to respect andsupport generously. The government is involved in all economic sectors of the country, directing, shaping the development of the economy, society and enterprise management. Singapore launches incentive policies to attract the foreign brainpower, stimulates investment, prepares the trained and highly disciplined workforce and selects stable foreign companies with advanced technologies that are prepared to invest for a long term.

The human resource management activities of Singapore are professional and feature many similaritiesof human resource management in the West, specifically:

- Highly appreciating the role of human resource - Implementing human resource planning

- Applying new technologies in recruitment to recruit qualified employees

- Paying special attention to training, development; considering training as an important basis for promotion, assignment

- Applying material and mental incentives to employees - Paying attention to measures to enhance employees’ power - Encouraging employees to work long-term for the enterprises

The Asian style in Singapore’s human resource management is reflected through the special attention to the welfare, social justice and employees’ families. Singapore has achieved political unity without racial uniformity. It has been able to develop the performance capacity required in the competition while being able to remain the responsibility of the State for social security. Singapore’s experience also shows that, if there is a good management mechanism, State-owned enterprises still operate successfully.

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CHAPTER 3 RESEARCH METHODS

3.1 INTERVIEW METHOD FOR COLLECTION OF PRIMARY

DATA

Interview is a discussion with intent between two or more people (the interviewer and the interviewee). In this topic, I have chosen the type of interview from experts in the energy sector, the opinions of the people who have the relevant competence and functions as well as the opinions of electricity users, etc. to identify and answer the research questions. It includes the following steps:

- Preparing interview questions - Sample selection: energy sector

- Collection method: direct collection through interviews with multiple choice questions and comment cards

- This method is used in Chapter 4 of the thesis

3.2 SECONDARY DATA COLLECTION METHOD

Secondary literaturesare collected by different people for different purposes. Doing research on secondary literature is involved in analyzing the literature collected by the others.They are, in this research, the statistics of many fields that have been collected and published such as the information, documentation, summarized data over the period of business operation, reports, newspapers and books, etc. This method is used in Chapter 4 of the thesis.

3.3 OBSERVATIONAL METHOD

The observational method is performed through the process of observation and recording of the phenomena, facts related to the issues to be researched. Preparing observation records to gather, store, preserve, disseminate, provide data, information and knowledge helps the employees have the updated, accurate and reliable documentation for daily usein undertaking tasks and making decisions, from programming, promotion, production, expenses, sales, to personnel management, procurement of supplies, tax declaration, investment, etc.

This method is used in Chapter 4 of the thesis.

3.4 COMPARATIVE METHOD

The method replies on the ground of available basis, data, features of the concerned unitsin the previous years, etc. to compare, analyze the competitors and evaluate the operational status over the years, phases, etc. of the HCMC General Electric Company.

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This method is used in Chapter 4 of the thesis.

3.5 FORECASTING METHOD

Forecasting methods:

- Qualitative forecasting method:

Quantitative forecasting methods are the forecasting methods featuring qualitative analysis based on speculation, feelings. These methods are heavily dependent on the managers’ intuition, experience and sensitivity in the forecasting process. They are only speculative, not quantified. However, their advantage is that they are simple, easy to follow with short research and forecasting time.They have low forecasting cost and forecast results in many cases are very good.

- Quantitative forecasting method:

The quantitative forecasting methods are implemented on the ground of statistics and through mathematical formulas designed to forecast the future demands. When forecasting future demands, without considering other factors of influence, it is possible to use forecasting methods following the time sequence. If the influence of other factors on the demands is necessary, it is possible to use the correlation regression model, etc.

- In order to forecast the product demand under the quantitative method, the eight following steps must be performed:

- Identifying the forecasting target - Selecting the products for forecasting - Identifying the length of forecasting period - Selecting forecasting model

- Gathering the necessary data - Approving the forecasting model - Conducting forecasting

- Applying the forecasting results This method is used in Chapter 4 of the thesis.

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CHAPTER 4: RESULTS & DISCUSSIONS

4.1 INTRODUCTION ABOUT POWER TRANSMISSION

COMPANY

4.1.1 Establishment and development

Before the reunification of the country, the unit that was in charge of the transmission in the South was the Transportation and Distribution Department. It was fully taken over on April 30, 1975. On September 15,1976,the Power Transmission Department was formed by detaching from the old Transportation and Distribution Department to perform specialized task of “managing and operating the high voltage grid from 66 kV or more at Southern provinces and cities in accordance with Decision No. 1878/QD/TCCB.3 of the Power and Coal Ministry. On March 04, 1995, Energy Ministry issued the Decision No. 105/NL/TCCB-LD on the establishment of Power Transmission Company No.4, directly under the Vietnam Electricity Corporation (the National Power Transmission Corporation – EVNNPT now) on the ground of reorganization of the Power Transmission Department at that time.

Over the past 40 years, since the establishment of Power Transmission Department, Power Transmission Company No.4 (PTC4) has constantly grown. It has been performing the responsibility for power transmission entrusted by EVN, ensuring the safe operation and continuity of the power grid, meeting the required power to serve people’s life and the economic development of the country, especially in the South. Although the power sector in general and power transmission in particular still have many problems to be resolved and they have not met the needs of nation’s electricity consumers, the specific contribution of the workers in power sector, including power transmission workers cannot be denied.

4.1.2 Management organization structure

For business activities, PTC4’s operating model consists of three main blocks as follows: departments, supporting units and direct production:

Block of departments:

Organization and Administration Division: is the unit with three functions: Labor organization, administrative management and health care. With these functions, the Division will advise the Board of Directors to direct and manage works including emulation, propaganda, storage and transfer of incoming documents, operational apparatus organization, organization of personnel, labor, wages, social insurance, labor protection, training, skill upgrading, labor norms, health care, life care for all employees.

Accounting and Finance Division: is to give advices to the Board of Directors on financial management in accordance with the Government provisions and regulations of

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EVN. It is responsible for accounting and financial statement according to the law.

Inspection and Security Division: is to give advices to the Board on the works of inspection, checking, safeguard of properties and the movement of national security protection within the capacity of PTC4.

Facility supplies Division: is to give advices to the Board on providing and storing supplies, raw materials, machinery and equipment from domestic and foreign sources to serve construction of works for regular scheduled and unscheduled tasks. At the same time, it performs the evaluation and management of recovered materials and equipment.

Engineering Division: is to give advices to the Board to direct and operate technical management, operations and repair and training for personnel to manage the power grid.

Safety Engineering Division: is to give advices to the Board to direct and manage the implementation of the technical safety, labor protection and fire prevention.

Construction Management Division: is to give advices to the Board to direct and manage the investment in basic construction.

Planning Division: is to help the Board of Directors in developing strategies, plans and business activities. In addition, it monitors and manages the economic contracts signed by PTC4.

Supporting block:

It consists of three units (Information and Computer Moderation team, Power Maintenance and Testing Lab and Motorbike Team). The main task of this block is to support the units in PTC4 to complete their duties.

Block of direct production: it consists of four units with headquarters in different provinces and cities:

Western PowerTransmission: located at 41 3/2Street, Xuan Khanh Ward, NinhKieu District, Can Tho City

Eastern PowerTransmission No.1: located at Number 18, 2A Street, Bien Hoa Industrial Zone No.2, Dong Nai Province

Eastern Power Transmission No.2: located atE4/39/10 1A National Highway, Binh Tri Dong Ward, Binh Tan District, Ho Chi Minh City

Highland Power Transmission: located at 797 Tran Phu Street, B’Lao Ward, Bao Loc Town, Lam Dong Province

These units have the power transmission substations and lines. They directly operate the power transmission securely, continuously, stably to reduce losses.

4.1.3 Functions and missions of Company

PTC4 operates on the ground of the following legal basis:

The license for power operations No. 3472/GP-BCN issued on December 26,2003 and issued by the Ministry of Industry (now the Ministry of Industry and Trade)regarding the field, scope and scale of operations:

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Managing and operating the electric power system up to 500kV in the Southern provinces and cities

Consulting and supervising the construction of substations and lines up to 500kV with the operation nationwide

Business registration certificate No. 4116001066 issued by the Business Registration Office- Planning and Investment Department on September 20,2007 regarding the business lines:

Managing and transmittingelectric energy; Constructing lines and high voltage stations; Repairing electrical equipment;

Importing and exporting supplies and equipment for the electricity sector; Supervising the construction of lines and power stations

4.2 ANALYSIS OF THE REAL SITUATION OF HUMAN

RESOURCE MANAGEMENT IN POWER TRANSMISSION

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 Content Indirect workers Half-direct workers Substation operation Lines

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

After

University University College, Vocational Workers from level 5/7 Other Total Number (person) 59 826 373 1104 908 3.270 Proportion (%) 1.8 25.26 11.42 33.75 27.77 100.00

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

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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 (%) Number (persons) Percentage (%) Number (persons) Percentage (%)

Recruitment advertising (newspaper,

website…) - - - -

Candidates come by themselves 16 10.53 12 8.11 19 12.58

Job agencies 4 2.63 9 6.08 5 3.31

Recommendations from PTC4’s

employees 41 26.97 32 21.62 35 23.18

Appointment from units in power sector 3 1.97 1 0.68 - -

Ho Chi Minh City Electric Power College 69 45.39 72 48.65 66 43.71

From other training schools 19 12.50 22 14.86 26 17.22

Total 152 100 148 100 151 100

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

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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 strive of talented people, creating barriers, or discouraging them, or even making them leave the enterprise. The reasons for this may be:

PTC4 has not done detailed analysis of job location and officer’s capacity in each position from which they can be planned scientifically.

Getting promoted, appointed is still affected, dominated from many sides.

4.2.2.2 Analysis of the situation of human resource training and development in the company

a. Analysis of the training process

Employee training in a company can be completed through three steps: starting to work, working time and preparation for new jobs. Contents may relate to aspects of the job operations or human relationship or improvement in the skills of awareness and problem solving skills:

Training when employees start to work: PTC4 has been implementing this activity. The new employees are guided or introduced (history and development of the company, functions and responsibilities, operational goals, labor regulations, policies and regulations…); thus, they become familiar with the new working environment and feel

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comfortable in the first day at their new job.

Training while employees are working: This training can be done in two ways by learning and working together or stopping working to learn. PTC4 has commonly chosen the first way to develop the practice at place. Stopping working is rarely used. Mainly staffs attend to the courses in the evening or at weekend.

Training for future job: This option shows us how to train staffs in the planning area that helps them not only provide the necessary knowledge and skills to do current job well, but also give an opportunity to do job in the future when being promoted. It is officially performed by PTC4 since 2003 when the company issued Decision No. 07155/EVN-TTD4-TCHCYT dated November 20, 2002 on personnel issues.

Process of PTC4 meets the requirements of business activities. The remaining problem is the effectiveness of training and the way to perfect the function of human resource training for PTC4. All will be demonstrated in the next section.

b. The forms of training

Table 4.5: Forms of training in the PTC4

Forms of training

2012 2013 2014

Quantity Percentage Quantity Percentage Quantity Percentage

(%) (%) (%)

1. Being proactively planned by PTC4 1.1. Self-training to promote the position

of staffs 325 15.88 412 19.15 398 17.53

1.2 Self-training to improve the

qualifications 32 1.56 26 1.21 45 1.98

1.3 Short-term training in the different institutions on the profession. law. foreign languages. computer science. and political theory.

157 7.67 200 9.30 273 12.03

1.4 Short-term training on the profession

in the foreign countries. 21 1.03 15 0.70 17 0.75

1.5 Long-term training in the different

institution on the profession. 12 0.59 11 0.51 11 0.48

2. Staffs register to attend long-term training classes and the fees are supported by PTC4

2.1. After university in Vietnam 2 0.10 4 0.19 6 0.26

2.2. After university in the foreign

countries - - - - 1 0.04

2.3. Universities in Vietnam 27 1.32 33 1.53 18 0.79

2.4. Colleges in Vietnam 2 0.10 5 0.23 15 0.66

2.5. Others (in Vietnam) 3 0.15 - - 2 0.09

Source: Department of Training - Organization and Administration Department (PTC4) Training and development of human resources are carefully managed by PTC4 and

數據

Table 4.2: Labor structure of 2014 by professional training level  Content
Table 4.3: PTC4’s recruitment situation over the years
Table 4.4: Remark about the promotion of 200 employees in PTC4
Table 4.5: Forms of training in the PTC4
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