master of business adminstration thesis

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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(.# :&' 1(( 2$"#$1)-&2&'*15)2( "&1(! 6 . 7&95 2$)26$()#2#28#2 #26#28"&2!1(( 2$"#$1)-&2&')$  #26#28"&2!1(( 2$"#$1)-&2"&'$()#2#28)266 . 7&95 2$)$44 * 9(&+7 5")26( )"&2&'$* 9(&+7 5" ;  4<; 4 01#( 5 2$'&(6 . 7&9#28)26()#2#282 6"#24 4 !&55 26)-&2"'&(#59(&.#286 . 7&95 2$)26$()#2#28)! #$%)$ 459(&.#28=2)2!#)7!)9)!#$%'&($()#2#28)266 . 7&95 2$)! #$% 42!( )"#2801)7#$%&'$()#2#28 443 >9 (# 2! )$ 4 LIST OF ABBREVIATIONS:  HR : HUMAN RESOURCE  HRM : HUMAN RESOURCE MANAGEMENT  PVFC : PETRO VIETNAM FINANCE COMAPANY  WTO : WORLD TRADE ORGANIZATION  MOF : MINISTRY OF FINANCE  MPI : MINISTRY OF PLANNING AND INVESTMENT  LIST OF FIGURES Page #81( ?15+ ()269 (! 2$&'9 &97  .)71)$ $* "1#"$)+#7#$%+ $: 2!1(( 2$,&+:#$*&:2 )+#7#$% #81( ?15+ ()269 (! 2$&'9 &97  .)71)$ $* "1#"$)+#7#$%.)#7)+7 @2&:7 68 + $: 2 :#$*!1(( 2$,&+ #81( ?15+ ()269 (! 2$&'9 &97  .)71)$ $* ")-"')!-&2&'$* #( >9 (# 2! )26"@#77" :#$*$* #(!1(( 2$,&+ #81( ?415+ ()269 (! 2$&'9 &97  .)71)-&2)+&1$$* "1#"$)+#7#$%+ $: 2< )+#7#$%:#$*$* #(!1(( 2$,&+/ #81( ?15+ ()269 (! 2$&'9 &97 ()-28)+&1$<1)7#=!)-&243 #81( ?15+ ()269 (! 2$&'9 &97 ()-28)+&1$"@#77")262&:7 68 &'<"4 #81( ?15+ ()269 (! 2$&'9 &97 ?$* $()#2#28!&2$ 2$":*#!*)A 26 6"1#$)+7 :#$* <"+1"#2 ""&+, ! ")262 ! 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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