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MINISTRY OF EDUCATION AND TRAINING
NATIONAL ECONOMICS UNIVERSITY
NEU BUSINESS CHOOL
NGUYEN HONG NHUNG
DEVELOPING AND TRAINING
HUMAN RESOURCE IN PVFC
MASTER OF BUSINESS ADMINSTRATION THESIS
SUPERVISOR: TRAN THI HONG VIET. Ph.D
ACKNOWLEDGEMENTS
Firstly, I want to express my deep gratitude to Ms Tran Thi Hong Viet, Ph.D
for her supports and advices to help me complete this thesis. She has been an
outstanding advisor, always very flexible and willing to let her students work
at their own pace, while making sure that things are going all right. I always
found her highly accessible and I thank her for the weekly meeting that kept
me motivated and suggested idea to complete my thesis.
Secondly, without the kind support of board of directors, managers and
employees of Petro Vietnam finance company (PVFC) for their participation
in my survey, my thesis never becomes such a real case so I would like to
express my great acknowledge to them.
Moreover, I thank Ms Duong for reminding me to submit thesis on time and
others supports in the process of writing thesis.
Last but not least, I also want to express my thanks to my family who gave
me enthusiastic support and shared house work with me during the last two
years while I was doing my master study.
Thank you very much.
Hanoi, May 2008
Nguyen Hong Nhung
TABLE OF CONTENTS
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LIST OF ABBREVIATIONS:
HR : HUMAN RESOURCE
HRM : HUMAN RESOURCE MANAGEMENT
PVFC : PETRO VIETNAM FINANCE COMAPANY
WTO : WORLD TRADE ORGANIZATION
MOF : MINISTRY OF FINANCE
MPI : MINISTRY OF PLANNING AND INVESTMENT
LIST OF FIGURES
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LIST OF TABLES
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LIST OF APPENDICES
Appendix 1: Survey Questionnaire (for staff)
Appendix 2: In depth interview questions (for managers)
Appendix 3: The organizational chart of PVFC.
CHAPTER I: INTRODUCTION
1.1 Necessity of research
Human resource is one of the most important resources in every organization
because of its human aspect. Having a good human resource creates big
advantages for company to get success on the market. Management of
Human resource is both art and science. A company which managers people
well will be possible to get a high quality human resource. Of all contents of
human resource management, development and training of HR is one of the
most necessary and important ones for an organization to improve quality of
its HR.
Petro Vietnam Finance Company is a state owned company, a non-banking
credit institution and a wholly owned subsidiary of Petro Vietnam, was
established according to the Decision No 04/2000/QD-VPCP dated 30th
March, 2000 by Director of Government’s Office. PVFC is now operating
with a head office in Hanoi and 8 branches in Vung tau, Da nang, Hai phong,
Can tho, Nam dinh, Sai gon, Thang long, Hanoi, with a total of 1200
employees as a date. Its objective is to become a top-ranking financial
institution in Vietnam. By 2015, PVFC will have to become the most
important Finance Holdings and the backbone of Petro Vietnam and to meet
the maximize demand of Petro Vietnam’s projects. PVFC’s strategy
throughout the development process relies on its fame, financial capability,
and financial demand of Petro Vietnam, making PVFC become a leading
financial group, in both capital scale and banking technology. Which fulfill
the requirement to cooperate and integrate with other financial institutions in
Vietnam and in the world. Being able to meet the investment demand, capital
investment management and operating in financial market, capital market of
Petro Vietnam.
After joining the World Trade Organization of VN in the 1
st
2007, there are
many new banks and financial institutions established in Viet Nam. In the
situation new, PVFC has to face with the following difficulties:
Firstly, intense competition from domestic credit and financial
organizations who are increasingly improving their organizational scale
and structure as well as from oversea financial corporations.
Secondly, threats of hard competition after Vietnam became a member
of WTO. Those are the competition from foreign competitors who have
strong financed capacity, advanced technology and especially business
experiences.
Thirdly, there is a shortage of PVFC’ resources to cope with the
development. Especially, human resource _ key success factor are
representing the problems that reduce the development. The company
has no long term human resource development plan. Staff of PVFC are
educated but lack of experience. Training plan are very poor. Training
content is not updated.
For the above reasons, development an training of HR is always the urgent
and the first priority of PVFC.
1.2 Research objectives
This thesis aims to get the following objectives:
To systematize theory relating on development and training of HR.
/
To identify the requirements of human resource to keep up with the
future situation and business objectives of PVFC.
To evaluate quality of work performance to determine actual situation
about skills, knowledge and attitudes of the staff of PVFC.
To define the specific gaps between current situation and future
requirement as well as find out problems of human resource
development and training of PVFC.
To propose some appropriate recommendation for improving training
activities and developing human resource in PVFC.
1.3 Research question
What are the requirements for developing HR in PVFC to meet its
future development?
What is current situation of quality and performance of HR in PVFC ?
What problems are PVFC facing in development and training of its HR
that affect to quality and performance of HR ?
What should be done to improve quality and performance of HR in
terms of HR development and training ?
1.4 Research methodology
This research has used both primary and secondary data.
The secondary data has been collected through PVFC business report, reports
and studies done by the ministry of finance, ministry of planning and
investment, articles in vietnamese and foreign newspapers and magazines,
textbook and internet. The primary data were collected by surveys and in
3
[...]... documents that will help to define more correctly actual conditions and to give more comments in this study 1.7 Structure of thesis Apart from acknowledgement, table of contents, executive summary, list of abbreviations, list of figures, list of tables, list of appendices, the main body of the thesis is divided into 4 chapters as follows: Chapter 1: Introduction Chapter 2: Theoretical Background 12 Chapter... 3.1 An Overview of PVFC The history of PVFC Petro Vietnam Finance Company - New confidence of development PVFC officially launched its operation on 1 st December, 2000 according to a Business Certificate No 12/GP-NHNN dated 25th October, 2000 by State Bank of Vietnam (SBV) along with Decision No 456/2000/QD-NHNN dated 25th October, 2000 by the Governor of The State Bank of Vietnam and Business Registration... decide to the success of businesses and develop human potentiality It’s important role as follow: Developing and training HR help improve skills, knowledge and behaviors of employees make them be ready to do new tasks and respond quickly with changing of environment It provide companies with new labor force to fullfil the empty spaces of business, to satisfy the HR requirement of business Developing... method off the job training: + attach every staff enjoy, express different point of views, do the decision + help staff to analyse, do problems practical Disadvantages of the first method off the job training + Costly very high Most organizations use coaching and counseling as either a formal or in formal management development 2.5 Process of HR training and development in business The process of HR... stable and dynamic business environment even in case the company lacks of key persons to do business Developing and training HR help reduce/ monitoring and controlling cost, increase quality of work performance and reduce accident because employees are trained well The quality of HR in almost Vietnamese business today is limited, that is not enough to do their job as requirement of new development... credit risk management, project appraisal and other extents They are: Department of Planning and Market Department of Human Resource Department of Accounting Department of Internal Control Department of Credit and Investment Risk Management Administration Department Department of Independent Appraisal Department of Executives Assistance Information and Technology Center Training Center... General to the extend of investment, cash flow management, financial services, trust management, credit and others related, they are: Department of Fund Arrangement and Corporate Lending Department of Cash Flow Management Department of Finance Service Investment Department 29 Department of Trust Fund Management Lang Ha Transaction Center 30 Business result Table 1.1: PVFC’s business results... of total revenue with average growth rate of 66% per year Proportion of deposits at credit institutions and loans will be reduced Average proportion of revenue from interest of loans in this period will account for 25.5% of total revenue compared with 43.9% in the period Revenue from deposits in the period 2006 account for 38.11% of total revenue The number of new branches opened during the year reaches... increasing of the PVFC’s workforce over the year Table 1.3: Scale and structure of PVFC HR in term of age Age 45 The number of people 2003 2005 2007 107 181 879 101 152 162 1 2 3 209 335 1044 Unit (person %) 2003 2005 2007 51.19% 48.66% 84.19% 4.78% 45.37% 15.51% 44.03% 5.97% 0.3% 100 100 100 (Source of PVFC) The following table 1.3 shows the comparison of HR over three years among 3 groups of age:... Based on the information collecting from interviews and survey, the thesis used quantitative and qualitative methods to analyse and process the information The excel program has been used 11 1.5 Scope of research Content of the thesis focuses mainly on development and training of HR However, to have a deep understanding the development of HR, it is necessary to identify and analyse other factors that . Structure of thesis
Apart from acknowledgement, table of contents, executive summary, list of
abbreviations, list of figures, list of tables, list of appendices,. of HR.
/
To identify the requirements of human resource to keep up with the
future situation and business objectives of PVFC.
To evaluate quality of
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