developing and training human resource in pvfc

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 1 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 2 TABLE OF CONTENTS ACKNOWLEDGEMENTS 2 TABLE OF CONTENTS 3 LIST OF ABBREVIATIONS: 5 LIST OF FIGURES 6 LIST OF TABLES 6 LIST OF APPENDICES 7 CHAPTER I: INTRODUCTION 8 1.1 Necessity of research 8 1.2 Research objectives 9 1.3 Research question 10 1.4 Research methodology 10 1.5 Scope of research 12 1.6 Limitation 12 1.7 Structure of thesis 12 CHARTER II: THEORETICAL BACKGROUND 14 2.1 Overviews of human resource and human resource development 14 2.2 Nesecity of development and training human resource in business 17 2.3 Content of training and development human resource in business 18 2.4 Method of training and development human resource in business 19 2.5 Process of HR training and development in business 21 CHAPTER III: HUMAN RESOURCES DEVELOPMENT AND TRAINING ACTIVITY IN PVFC 25 3.1 An Overview of PVFC 25 3.2 Current situation of human resource development and training in PVFC 32 3.2.1 Findings on current situation of HR at PVFC 32 3 3.2.2 Findings on current situations of HR training and development at PVFC 44 3.2.3 The problems and reason of the problems 56 CHAPTER IV: RECOMMENDATIONS FOR IMPROVING HR DEVELOPMENT AND TRAINING ACTIVITY AT PVFC 58 4.1 PVFC’S BUSINESS STRATEGY 58 4.2. Requirement for developing HR and Training needs in PVFC: 64 4.3. Recommendations for improving development and training activity at PVFC: 65 4.3.2 Improving financial capacity for training and development activity 66 4.3.3 Increasing quality of training 67 4.4 CONCLUSION 70 Experience at PVFC: 76 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 5 LIST OF FIGURES Page Figure 1-1: Number and percent of people evaluate the suistability between current job with own ability 36 Figure 1-2: Number and percent of people evaluate the suistability vailable knowledge between with current job 37 Figure 1-3: Number and percent of people evaluate the satisfaction of their experience and skills with their current job 38 Figure 1-4: Number and percent of people evaluation about the suistability between PVFC’ HR ability with their current job 39 Figure 1-5: Number and percent of people rating about PVFC’ HR ualification 40 Figure 1-6: Number and percent of people rating about skills and nowledge of PVFC’s HR 41 Figure 1-7: Number and percent of people - the training contents which attended suitable with PVFC’s business objective sand necessary for job 51 Figure 1-8: Number and percent of people - the training programs which have attended good to improve work performance 52 Figure 1-9: Number and percent of people - put in order the following items which make to improve development and training activity of PVFC 53 LIST OF TABLES Table 1.1: PVFC’s business results from 2002 to 2006 31 Table 1.2: Scale and structure of PVFC HR in terms of education/ unit (person) 33 Table 1.3: Scale and structure of PVFC HR in term of age 33 Table 1.4: Responding percentages of PVFC’ staff 35 Table 1.5: Responding percentages of PVFC’ staff 38 Table 1.6: Responding percentages on policies and their impact to quality of work performance.43 Table 1.7: Number of staff participated in training courses over the years 48 Table 1.8: Staff point of views on content of training courses 49 6 Table 1.9: The people participate in the training courses in VN and foreign country 50 Table 1.10: The cost of training activity in VN and foreign country 50 Table 1.11: The detail of training activity in foreign country in 2007 in PVFC 54 Table 1.12: The investment of training HR in PVFC 55 LIST OF APPENDICES Appendix 1: Survey Questionnaire (for staff) Appendix 2: In depth interview questions (for managers) Appendix 3: The organizational chart of PVFC. 7 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 8 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. 9  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 10 [...]... 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 training and development consists of the following steps: • Training needs assessment • Training design • Training implementation • Training evaluation Training needs assessment: Training needs assessment analyze the organization’... staff training in skills which are not directly linked to there positions Training design: Training design is a process that requires a blend of instructional learning principles and media selection After assessing training needs, it is necessary to design courses for training such as setting up training objectives, methods, materials and contents All training facilities are essential for any training. .. development and training HR in business 2.3 Content of training and development human resource in business Training and development HR have 3 main parts: performance appraisal, training and development Performance appraisal is a process by which a superior valuates and judges the work performance of a subordinate Performance appraisal systems include the processes and procedures involved in implementing,... manage the human assets for the company to have a competitive advantages 2.2 Nesecity of development and training human resource in business Developing and training HR are processes that attempt to provide an employee with information, skills, and an understanding of the organization and its goals Developing and training are designed to help a person continue to make positive contributions in the form... take into account such as HR planning, recruitment, motivation and HR appraisal 2.4 Method of training and development human resource in business After needs and objectives have been determined and trainees and trainers have been selected, the program is run This phase includes selection of methods to be used and the actual training and development method There are two main methods of training and development... energy in line with the growth of the country in the 21 st century Since the beginning, PVFC has made great successes in integrating into the Oil and Gas community and joining the networks of domestic and international financial institutions The tight and faithful co-operation with these institutions, domestic and foreign investors in order to maintain reliable financial sources for Vietnam Oil and Gas... determining training and development needs; Career planning and development: may be viewed from either an individual or an organization viewpoint Managers may use such information to counsel subordinates and assist them in developing and implementing their career plans Training is a form of education to which the following learning principles can be applied: 18 + Trainee must be motivated to learn + Trainee... business, to satisfy the HR requirement of business  Developing and training HR builds 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... development human resource: The first is on the job training On the job training is common method of training It is used by many company It is an economic way in training Staffs learn through observing their manager performing the job and try to imitate their behavior On the job training can be useful for training newly employee upgraping experienced employees skill when new technology is introduced,... after coming back from training course This survey is designed in order to fund out about the policy, the practical management of human resource, training and development human resource in enterprise and the evaluate current human resource training and development Based on the survey result, the human resource department will propose strategies an specific actions to improve polices and administrative . development and training HR in business. 2.3 Content of training and development human resource in business Training and development HR have 3 main parts:. development human resource in business 18 2.4 Method of training and development human resource in business 19 2.5 Process of HR training and development in business