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CAPSTONE PROJECT REPORT DEVELOPMENT HUMAN RESOURCES STRATEGY OF NLDC IN THE PERIOD 2020 - 2025 GRIGGS UNIVERSITY GLOBAL ADVANCED MASTER OF BUSINESS ADMINISTRATION PROGRAM CAPSTONE PROJECT REPORT DEVELOPMENT HUMAN RESOURCES STRATEGY OF NLDC IN THE PERIOD 2010 - 2015 Group No Student’s name: Quan Duc Hai Nguyen Tat Thang Nguyen Xuan Son Bui Thi Hong Nhung HA NOI, 2010 MASTER OF BUSINESS ADMINISTRATION 1.1 1.2 1.3 1.4 1.4.1 1.4.2 1.4.3 1.4.3.1 1.4.3.2 1.4.3.3 1.4.3.4 1.4.3.5 1.4.4 2.1 2.2 2.3 2.3.1 2.3.2 2.3.3 2.3.3.1 2.3.3.2 2.3.3.3 3.1 3.2 3.3 CONTENT FOREWORD Page Necessity of the theme Purpose of the research Research methodology Contributions of the Capstone Project Report Structure of the Capstone Project Report CHAPTER FUNDAMENTAL THEORIES ON BUSINESS STRATEGY AND STRATEGIC HUMAN RESOURCES MANAGEMENT Business Strategy Concept of Business Strategy Benefits of business strategy for organization Basic contents in strategic planning of organization Some strategic planning tools SWOT analysis Value chain analysis Five forces model Power of Suppliers is shown in the following features The threat of substitute products: The threat of the entry of new competitors Power of customers The intensity of competitive rivalry PEST analysis Strategic Human Resources Concept of Human Resources Concept of human resources strategy Some strategic human resources models General model Organizational model Specific relationship model Creativity strategy and major HRM activities Quality enhancement strategies and major HRM activities: Cost reduction strategy and major HRM activities Strategic Human Resources Development Process Strategic Human Resources Planning Implementation of strategic human resources Evaluation of strategic human resources CHAPTER STRATEGIC HUMAN RESOURCES DEVELOPMENT AT NATIONAL LOAD DISPATCH CENTER 3 4 5 6 8 8 9 10 10 11 12 12 13 13 14 14 14 15 19 22 22 MASTER OF BUSINESS ADMINISTRATION 2.1 2.2 2.2.1 2.2.2 2.2.3 2.3 2.3.1 2.3.2 2.3.3 3.1 3.2 3.3 3.3.1 3.3.2 3.3.3 3.4 4.1 4.2 4.3 4.3.1 4.3.2 4.3.3 4.4 4.4.1 4.4.1.1 4.4.1.2 4.4.1.3 4.4.1.4 4.4.2 Establishment and Development Process of National Load Dispatch Center Power business strategy of Vietnam Electricity in 2007 – 2015 period, towards 2025 General introduction about Vietnam power system Overview of power business strategy of Vietnam Electricity in 2007- 2015 period, towards 2025 Regarding investment in power source development Regarding power transmission Orientation of power distribution area Characteristics of human resources of power sector (EVN) Regarding training areas: Age-based labor force structure Productivity index of entire EVN Current business situation of NLDC Power system operation Other operations of Center as an enterprise Business operation features of the Center Power System Operator (SO) function Market Operator (MO) function Other business activities Status of human resources deployment in the past years Strategic human resources development at National Load Dispatch Center Existing operation of National power system (as of September 2009) Current status of human resources of National Load Dispatch Center Overview of Development Direction of NLDC Basis for development direction of NLDC Basic features in the restructuring pathway of EVN Development Direction of National Load Dispatch Center Strategic Human Resources Development at National Load Dispatch Center SWOT Analysis Strengths Weakness Opportunity Threats Analysis and selection of development strategy CHAPTER SOME RECOMMENDATIONS FOR IMPROVEMENT OF STRATEGIC HUMAN RESOURCES IN 2010 – 2015 PERIOD AT NATIONAL LOAD DISPATCH CENTER 23 24 24 25 25 27 27 28 29 31 31 32 32 35 37 37 38 39 40 42 42 42 48 48 49 50 50 50 50 57 61 62 66 MASTER OF BUSINESS ADMINISTRATION 1.1 1.2 2.1 2.2 2.3 2.4 2.5 2.6 2.6.1 2.6.2 2.6.2.1 2.6.2.2 2.6.2.2.1 2.6.2.2.2 2.6.2.2.3 2.6.2.2.4 2.6.2.2.5 2.6.3 2.6.4 2.6.4.1 2.6.4.2 Development Strategies of National Load Dispatch Center in 2010 – 2015 period Mission Objectives Implementation Plan of Development strategy of NLDC in 2010 -2015 period Main objectives Main tasks Service provision as main business on the following Main products with special and unique feature Clients Some measures for implementation of development strategy of NLDC Regarding the investment Regarding the personnel organization Restructuring of the Center according to following model (Figure 3.2) Human resources development solutions Measures for improvement of human resources quality via recruitment Measures for improvement of human resources quality via training Measures for human resources improvement via evaluation system Measures for human resources improvement via compensation Improvement of working environment and conditions Regarding the infrastructure Other recommendations For macro environment For business environment CONCLUSION LIST OF FIGURES, GRAPHS 76 76 76 77 77 77 77 77 78 78 78 78 81 81 84 85 86 87 87 88 88 88 MASTER OF BUSINESS ADMINISTRATION Figure Content Page Figure 1.1 Strategic Planning Process 16 Figure 1.2 External Elements 17 Figure 1.3 Decisive factors to competition within an industry 18 Figure 2.1 Education background and age of management as of April 30th 2008 30 Figure 2.2 Age-based labor structure 31 Figure 2.3 Hierarchy of national power system 33 Figure 2.4 Existing organization chart 36 Figure 2.5 Position-based structure 46 Figure 2.6 Education-based structure 46 Figure 2.7 Specialization-based labor structure 48 Figure 2.8 Age-based labor structure 48 Figure 3.1 Configuration of SCADA system 72 Figure 3.2 Communication system for data exchange 73 Figure 3.3 New organization model at NLDC 80 MASTER OF BUSINESS ADMINISTRATION LIST OF TABLES Table Content Page Table 1.1 SWOT Matrix 20 Table 1.2 Evaluation of strategy implementation sequence following GREAT matrix 21 Table 2.1 Educational structure and number of EVN’s employees in 2001 – 2009 period 29 Table 2.2 Comparison of productivity index between EVN and power utilities of some countries 32 Table 2.3 Status of human resources deployment 40 Table 2.4 Current status of Human Resources 43 Table 2.5 Structure of employees 43 Table 2.6 Number of training courses and employees articipating in training and development 53 Table 2.7 Salary coefficients for different positions 54 Average salary level of some positions in the NLDC 56 Table 2.8 Table 2.9 Statistics of graduates from formal education of Engineering Universities 63 Table 2.10 Statistics on qualification of graduates from formal education specialized in power system of engineering universities 63 Table 2.11 Statistics on average salary of engineers and bachelor degree holders of different specializations in 2009 64 Table 2.12 Summary of SWOT analysis at NLDC 66 MASTER OF BUSINESS ADMINISTRATION FOREWORD Necessity of the theme: Improvement of human resources quality is one of the most important tasks of a company in particular and a country in general Human resources quality improvement has become increasingly significant in the whole world in the past decades Most companies have to face up with the severe competition in the market, to struggle in the economic recession and to meet increasing demands for human resources in terms of both quantity and quality Traditional perspective which stated that the major competitive advantage of a company or country lied in the financial, technical and technological capabilities became out of date The decisive factor to the existence and development of each company and each country is now people with high education background, well-trained skills, ethics, culture and understanding of effective performance Therefore, the human resources quality improvement has been studied, developed and applied in advanced industrial countries The human resources quality improvement has not been properly concerned in Vietnam despite of its importance As a developing country, Vietnam always has to face up with post-war consequences and its economy is now in the process of transition from subsidy and concentrated economy to market economy Improvement of human resources quality in Vietnam enterprises has not been properly cared despite of its significance Innovation process has some basic changes requiring the development of human resources in terms of both quantity and quality The poor quality of Vietnamese human resources is reflected in Vietnam’s economic results which are far below the potential of natural resources and other resources Therefore, the actual situation of Vietnam economy requires researchers to be proactive in finding out solutions which help enterprises perform well the human resources quality improvement and thus reduce the risks, save time and enhance the competition capability during their shift to market economy Power industry is an important economic – technical industry in the economic development of the country It is the source of energy input for most industries and plays a key role in the economic development of Vietnam Therefore, in addition to capital and technology, improved quality of EVN’s human resources is vital to promote the price and quality service as competitive advantages in power MASTER OF BUSINESS ADMINISTRATION transmission and especially power generation and distribution in the market economy and to integrate into the regional and world economy As a global trend, power sector of Vietnam is now step-by-step being restructured to remove the monopoly state and to put power market into operation In that context, the National Load Dispatching Center, as the power system operator directing and managing the operation of all power plants, power transmission and power distribution companies, is required to develop a “well-trained” workforce to perform operating modes of national power system ensuring safety, stability and cost-effectiveness It has to meet the standards on frequency of national power system and voltage of national power transmission system; to comply with regulations on load dispatching of national power system in the power market and power transmission grid and the guidelines of electricity regulatory authority and power market management unit and not to discriminate in mobilization of power output from power generation companies in the national power system This workforce should comprise of employees which have proper qualifications and competencies and are able to meet the work requirements All of these things inspire our group to select the topic on "Status evaluation and solutions to human resources quality improvement in the National Load Dispatching Center" with the desire to find out some solutions to promote the human resource quality improvement in the National Load Dispatching Center in the competition and development process Purpose of the research: Based on the analysis of human resources quality and social information, the current quality of human resources of National Load Dispatching Center (NLDC) will be assessed so as to propose solutions to improvement of human resources quality and to provide information for management of NLDC in the next phase Specific purposes are as follows: a) To clarify the strategy on improvement of human resources quality in the company b) To assess the current quality of human resources of NLDC so as to find out remaining issues and causes of weakness in human resources functions MASTER OF BUSINESS ADMINISTRATION c) To give out some specific solutions to perfect and improve the quality of human resources in NLDC Research methodology: The research methodology used in the thesis is the statistical analysis, gathering and processing of available documents, description and comparison with logical inference on the basis of a survey conducted among employees of NLDC Methods used by the group in the research of this theme include: Research will be done through the review of documents and books of theories on strategy development in general and strategic human resources development in particular In addition, the group will conduct actual research at company and use comparative method to provide reasonable and effective basis for strategic human resources development Contributions of the Capstone Project Report: a) To systematize some argumentative issues relating to human resources quality b) To make a comprehensive analysis of actual status of human resources of NLDC; and to develop some viewpoints as basis for improvement of human resources functions in NLDC c) To propose some solutions to improve the quality of human resources in NLDC meeting the human resources demand for development of NLDC so as to meet the requirements for operation of National power system and competitive and transparent power market Structure of the Capstone Project Report: In addition to the foreword, conclusion, references and appendices, the Capstone Project Report consists of main parts: Chapter 1: Fundamental theories on business strategy and human resources strategy Chapter 2: Strategic human resources development at NLDC Chapter 3: Some proposals and recommendations for improvement of human resources strategy of NLDC CHƯƠNG TRÌNH ĐÀO TẠO THẠC SĨ QUẢN TRỊ KINH DOANH QUỐC TẾ Figure 3.3 NEW ORGANIZATION MODEL AT NLDC MANAGEMENT BOARD AT HEADQUARTER OF NLDC PLANNING & TECHNICAL DEPARTMENT ORGANIZATION, LABOR & SALARY DEPARTMENT MANAGEMENT BOARD OF NLDC (A0) GENERAL DEPART FINANCE & ACCOUNT DEPART FINANCIAL & ACCOUNTING DEPARTMENT MANAGEMENT BOARD OF NORTH LDC (A1) GENERAL DEPART POWER MARKET OPERATION DEPARTMENT MANAGEMENT BOARD OF CENTRAL LDC (A2) PHỊNG TÀI CHÍNH KẾ TỐN GENERAL DEPART FINANCE & ACCOUNT DEPART TRAINING & RESEARCH MANAGEMENT DEPARTMENT MANAGEMENT BOARD OF SOUTH LDC (A3) GENERAL DEPART FINANCE & ACCOUNT DEPART PLANNING & MATERIAL DEPART POWER SYSTEM OPERATION DEPART PLANNING & MATERIAL DEPART POWER SYSTEM OPERATION DEPART PLANNING & MATERIAL DEPART POWER SYSTEM OPERATION DEPART PLANNING & MATERIAL DEPART POWER SYSTEM OPERATION DEPART POWER SYSTEM CALCULAT DEPART TECHNO DEPART POWER SYSTEM CALCULAT DEPART TECHNO DEPART POWER SYSTEM CALCULAT DEPART TECHNO DEPART POWER SYSTEM CALCULAT DEPART TECHNO DEPART 80 CHƯƠNG TRÌNH ĐÀO TẠO THẠC SĨ QUẢN TRỊ KINH DOANH QUỐC TẾ 2.6.2.2 Human resources development solutions The Strategic Human Resources Development of NLDC aims to: - Develop highly qualified and professional staffs of equivalent level to other Power system operation centers in the region These staffs will always be unified, honest, and creative and try their best for progress and improvement; - Ensure the continuity of senior managements and leaders of the Center and the readiness of successors who are qualified and trained in the best programs and always make public the succession plans; - NLDC commits to bring the satisfaction to users of its products, which are clearly recognized and attempted by all of its employees; - The motto for NLDC’s operation is “Clear-sighted management – Safe Operation – Economic system” It makes effort to become an active member of Vietnamese community and contribute to the general development of Vietnam power industry; - The NLDC always concerns about its responsibility for and contribution to the public and society A good human resources policy will help attracting talented professional workforce A working environment which ensures individual ability to promotion and maximization of their competencies will help Center retain and develop talented people to maximize the benefit of the Center Development of harmonic culture and taking care of individual and family life of employees will help sustainable and long-term human resources development Followings are some specific measures proposed by our group 2.6.2.2.1 Measures for improvement of human resources quality via recruitment - Development of competency framework for each position of the Center is the first measure to ensure transparency and equality in all human resources policies - The Center should base on regulations and policies on recruitment, regulations on qualifications of State employees of the State and industry to develop regulations, policies and criteria for recruitment in accordance with actual conditions of the Center - All information about recruitment and preferential policies, etc should be announced on public media Recruitment process should be strictly monitored to ensure equality 81 CHƯƠNG TRÌNH ĐÀO TẠO THẠC SĨ QUẢN TRỊ KINH DOANH QUỐC TẾ Professional recruitment solution is the next priority in the human resources strategies of NLDC What should be done in this strategy? - The immediate improvement in the recruitment process of NLDC is in paper screening step where candidates’ applications are read and summarized to preliminarily appreciate their fit for the qualification requirement and objectives of the NLDC; - Recruitment method should be innovated by considering the application of erecruitment This method helps to significantly shorten the duration of paper screening, preliminary summary and listing of candidates, etc In addition, it represents an advanced recruitment method and reflects the professionalism in the working style In order to achieve the above objective, NLDC should implement the application of information technology: - In order to minimize unnecessary activities in paper screening and information summarization, a recruitment mailbox should be immediately set up This mailbox will send automatic reply to the applications The reply will contain the confirmation with following contents: Thanks for your concern! Your application will be read and employment test plan will be notified to you at the earliest time, etc In this way, it results in not only convenient communication between NLDC and candidates but also reduced cost for NLDC in telephone communication This is both time-saving for receiver of applications and very convenient for data copying and processing Recruitment staff may quickly prepare a list of applicants just by copying necessary data in stead of manually entering each word and row of data on the paper In addition, this auto-reply mailbox will illustrate the professionalism in the recruitment of NLDC with use of advanced technology - Technology not only helps to save time and cost for the recruitment process of the Center It is also highly effective in attracting excellent candidates’ attention and application It is clear, from the above cost analysis, that job advertisement on newspaper which is not very appropriate for the NLDC should not be maintained Internet and internal communication channels should be promoted thanks to their cost-effectiveness and usefulness 82 CHƯƠNG TRÌNH ĐÀO TẠO THẠC SĨ QUẢN TRỊ KINH DOANH QUỐC TẾ - In the employment test, NLDC has not been able to design the test which is professional and indicative of recruiter’s expertise It is required to accomplish the bank of testing questions so that the employment test can be properly and actively implemented - In particularly, due to pressure work requirements, the form of EQ test will be more appropriate - Due to the regional typical features, the recruitment and selection in NLDC (A0) and Northern Load Dispatch Center (A1) is relatively convenient, particularly the recruitment of operational engineers and mode engineers who are excellent graduates from famous universities such as Polytechnique University However, the recruitment is quite challenging in the Central Load Dispatch Center (A3) and especially in the Southern Load Dispatch Center (A2) The recruitment has significant impact on the quality of human resources The Center’s plan and quality can only be ensured by recruiting and selecting employees who are qualified and serious and then trained and assigned to be power system engineer, calculation engineer and SCADA engineer In order to handle the difficulties in the recruitment due to the regional feature, we would like to propose the following solutions: In A2 and A3, HR Departments should meet with rd year students in Polytechnique University to learn about their concern and expectation and even sign contract with these student (that means employment contract is signed even when student candidates are in the university) This form of recruitment will facilitate students to orient their future job They will thus focus more on the subjects relating to their later work In the coming time when NLDC applies the remote working mode, the human resources management division should also consider the recruitment of foreigners for the Center HR will thus have to identify which field and departments will require the remote working of some employees After the research and discussion with functional departments of NLDC, we judge that the remote working mode can be applicable in the following division: relay calibration and calculation division under Daily Mode Department, Daily mode preparation division under Dispatch Department, Applications program division under Technological Department, and statistic, failure and system analysis teams, etc By assessing these works, the 83 CHƯƠNG TRÌNH ĐÀO TẠO THẠC SĨ QUẢN TRỊ KINH DOANH QUỐC TẾ recruitment will closely follow the current needs of each division With such perspective, the NLDC will pursue the direction of human resources exploration on the global scale 2.6.2.2.2 Measures for improvement of human resources quality via training - Development of detailed competency evaluation system and effective job analysis system will greatly contribute to the training needs identification of the Center - A modern training evaluation system will help identifying the effectiveness of training programs and also recognizing human resources training as a key investment for the development of the Center - The current training procedures of the Center have not been updated and effective Therefore, it is necessary to develop and improve the on-the-job training on equipment and system for engineers In order to improve the training effectiveness and reduce the training costs with a view to successfully implement the strategic human resources development, NLDC needs to: - Carefully select trainers and materials for training courses An expensive training program is not necessarily an effective one and a good trainer does not always ensure the attainment of training objectives In the next time, NLDC should review and apply the e-training for positions without the need for direct class training so as to reduce the training costs for Central and Southern Load Dispatch Centers As the operational engineers have to directly work in the shifts, it is difficult for them to attend the classroom training; therefore, e-training form and e-lecture for advanced training should be fully used - Before any training, a small survey should be conducted among expected participants to see what they want to be trained on, when the training should be implemented and how the training will be, etc This will be a supporting tool for human resources management division in the design of the most effective training programs (which match the participants’ requirements in terms of time, contents as well as form of organization) - In addition, a training plan should be prepared for each level so that the training can be strictly controlled in the NLDC Determination of which basic training courses should be organized and for which audience will help training staffs to 84 CHƯƠNG TRÌNH ĐÀO TẠO THẠC SĨ QUẢN TRỊ KINH DOANH QUỐC TẾ figure out and properly manager the training This is applicable not only to basic and compulsory training courses but also to other advanced training, which will help to avoid mistakes during the training planning - The above solutions are given to develop an effective training system for the Center It is also noted that the monitoring and evaluation of training results, effectiveness and impacts will be essential for the training to bring its true significance - With the typical training for system calculation and operation engineers, the Center should be equipped with an operation training simulator and develop a database for simulation of expected scenarios This essential training has been implemented by advanced dispatch centers in the world The SCADA system was previously equipped with some modules for this purpose; however, the application is still limited - In the training for operation engineers, communication and management skills should also be targeted in addition to fundamentals and parameters of equipment and system Apart from monthly safety and operation review meetings, special training courses should be provided to disseminate new technologies and technical solutions applied by grid management units Examples of these technologies include fault positioning technique, wide-sale supervision and protection system, relaying system during grid blackout, alarming system during emergency cases in Southern power plants, Southern load rejection system, and calculation and operation of integrated system in practice - In the long-term strategy of NLDC (2015 – 2020), a power system and power market operation training center will be established so as to take use of its advantages in terms of equipment, experience in power system operation and experts in power system and power market operation 2.6.2.2.3 Measures for human resources improvement via evaluation system - Evaluation helps the organization to perfect itself, to recover deficiencies, and to serve the training, compensation and human resources development Development of performance appraisal system is necessary and urgent for NLDC Currently, EVN is piloting the management by objective (MBO) performance appraisal model Being involved in this pilot implementation, we find that this is a modern, relatively 85 CHƯƠNG TRÌNH ĐÀO TẠO THẠC SĨ QUẢN TRỊ KINH DOANH QUỐC TẾ simple and effective appraisal method Therefore, we propose to apply this method in the Center right from 2010 Followings are some measures to improve the effectiveness of performance appraisal in NLDC so as to respond to the strategic human resources development: - Job descriptions should regularly be reviewed and adjusted and competency profiles should be developed for all positions in NLDC This is the basis for management to properly evaluate whether employees’ performance is good or not, meets the set standards or not, and is satisfied or below the expectation In different time period, work requirements may change and thus should be adjusted to the actual situation and current needs Therefore, the importance of job description should always be appreciated if an equitable and correct appraisal is desired 2.6.2.2.4 Measures for human resources improvement via compensation - Compensation is one of the most important tools for attraction, development and retention of talented people of the organization The compensation system of the Center is out of date and relatively of egalitarianism nature Therefore, it is urgent to develop a compensation system based on employees’ performance and contribution - Each unit in the Center should select an appropriate form of salary payment which motivates employees and ensures achievement of business objectives Currently, the most appropriate form for salary payment is on the basis of position and performance appraisal rating - If employees have worked with the Center for a long period, seniority-based salary coefficient should be applied during the calculation of employee’s salary Examples of seniority-based salary coefficient are: 5-10 years (1.2); 10-15 years (1.4); 15-20 years (1,6); 20-25 years (1.8); and over 25 years (2.0) - Bonus should be offered to employees with many contributions to the Center (such as bonus for power system operation engineer for safe, reliable and costeffective operation and quick recovery of failure to reduce blackout time; and bonus for punctual calculation and preparation of operating mode, correct forecast of difficult situations in operation and recommendations on solutions to reduce the power outage and ensure that no blackout happens due to incorrect operating mode) Bonus level is identified as percentage of monthly salary 86 CHƯƠNG TRÌNH ĐÀO TẠO THẠC SĨ QUẢN TRỊ KINH DOANH QUỐC TẾ - In addition, the Center should maintain other forms of bonus, such as year-end bonus, safe operation bonus, bonus for preparation of operating mode corresponding to EVN’s objectives, and bonus for initiatives and ideas, etc - Other treatment forms which have influence on motivation and productivity are reward titles and Top management’s concern and encouragement of employees and their families on the occasions of bereavement and funeral, birthday and public holidays, etc 2.6.2.2.5 Improvement of working environment and conditions - Qualifications and competencies of Operational Engineer, Calculation Engineer and Technological Engineer, etc should be reviewed regularly to see who is appropriate for which job and then to arrange them in the positions ensuring “right person for right job” - Working area should be well organized and perfected as per the work requirements to create a favorable psychological and physical environment for labors - A democratic and supportive atmosphere should be created among managers, between management and employees, and among employees so that employees can feel the respect of each other and promote their potential - It is important to develop corporate culture and typical corporate impression such as democracy, collective sense, attention and sense of responsibility for each other in the work This helps to improve performance quality and sense of responsibility of employees - Medical checkup should be organized regularly and health care for employees should be planned This will help ensuring good health for employees so that they can be enthusiastic with their work and feel that the Center cares for them - Emulation movements should be promoted to create internal competition among employees for their self-affirmation and development, especially the emulation for initiatives on technical improvement and scientific research These emulation movements should be practical, supported by most employees, targeted to productive and life, and have diversified forms and specific objectives and criteria 2.6.3 Regarding the infrastructure 87 CHƯƠNG TRÌNH ĐÀO TẠO THẠC SĨ QUẢN TRỊ KINH DOANH QUỐC TẾ - Equipment of software system for production, administrative and human resources management will help management levels well control the work efficiency in the whole Center 2.6.4 Other recommendations 2.6.4.1 For macro environment - To perfect the organization system of the Center - To make salary policy typical for the Center 2.6.4.2 For business environment -To provide sufficient finance for the Center to finish the projects to respond to development strategy of the Center; - To invest in new office for the Center commensurate the technological system and position of NLDC - To invest in research, training and application of advanced technology system in human resources training and development for operation of the entire National power system 88 CHƯƠNG TRÌNH ĐÀO TẠO THẠC SĨ QUẢN TRỊ KINH DOANH QUỐC TẾ CONCLUSION Strategic human resources development is closely linked to business strategy of the company Human resources management relates to structure, operation and development - Structure is to develop leadership style for human resources, and to give human resource systems (matching external and internal elements of Company) for process control - Operation is to direct human resources in the sense of controlling employee’s behaviour through the employee management process and controlling human resources management - Development is the way by which management encourages the learning ability and continuously perfects the organization structure and organization management Strategic planning includes establishment of objectives and targets for organization and development of work graphs showing how these objectives and targets are accomplished Once the plan is formed, organization will become important This function covers the combination of resources such as people, capital and equipment in the most effective manner for accomplishment of objectives In order to successfully implement development strategy of NLDC and to accomplish the mission of the Center, which is “SAFE, CONTINUOUS, STABLE, QUALITY AND COST-EFFECTIVE” operation of National power system, apart from two major elements which are people with experience, skills, training, enthusiasm and effort, and modern equipment and technological system, management of the Center is key to combine all resources for maximum effectiveness of power business In the development strategy of NLDC in 2014 – 2020 period, in the roadmap for power market development and the first phase of competitive generation market, NLDC will be an independent enterprise who is paid for fees for system dispatch, management of power market transactions and ancillary services This is a great challenge to the strategic human resources development for NLDC Regarding the model, in addition to the performance of main functions as power system operation and power market operation, the establishment of the Training Center and the company offering consulting services in power system operation, power market 89 CHƯƠNG TRÌNH ĐÀO TẠO THẠC SĨ QUẢN TRỊ KINH DOANH QUỐC TẾ operation and SCADA/EMS under NLDC will take full use of production capability of NLDC The human resources of NLDC will then be rationalized in terms of quantity, quality, qualification and productivity Accordingly, NLDC’s production effectiveness will be greatly improved and NLDC will become a real enterprise If strengths and opportunities are properly promoted, NLDC will grow, attract and develop its pool of talents Otherwise, it will not be able to acquire excellent employees This is because when it is separated from EVN, the preferential policies and advantages inherited from the dependent period (due to NLDC’s mission) will be limited Selection of top management in the organization will decide the success of National Load Dispatch Center Because of limited time and capacity of group members, the Capstone Project Report might not be able to ultimately solve the human resources problems and the strategic measures might not be complete and really appropriate We look forward to receiving feedback from teachers and friends Thank you very much 90 CHƯƠNG TRÌNH ĐÀO TẠO THẠC SĨ QUẢN TRỊ KINH DOANH QUỐC TẾ WORD ABBREVIATION A0: National Load Dispatch center DSM: Demand Side Management EVN: Vietnam Electricity EMS: Energy Management System HRM: Human Resources Management MO: Market Operator NLDC: National Load Dispatch center RTU: Remote Terminal Units SHRM: Strategic Human Resources Management SCADA: Supervisory Control And Data Acquisition SO: System Operator 91 CHƯƠNG TRÌNH ĐÀO TẠO THẠC SĨ QUẢN TRỊ KINH DOANH QUỐC TẾ REFERENCES I Books and Textbooks: - Strategic Management – Ass.Prof.Dr Le The Gioi – Dr Nguyen Thanh Liem – Tran Huu Hai, MA – Statistics Publishing House, 2009; - Human Resources Management - Nguyen Huu Than, Social Labor Publishing House, 2008; - Slides in the Course on Strategic Management, Human Resources Management and some textbooks under the Master of Business Administration Program II Organizational Documents: Rules on organization and operation of the National Load Dispatch Center (NLDC) – issued in accordance with Decision No.144 EVN/HDQT dated May 12th 1999 of the Management Board of Vietnam Electricity (EVN); Collective bargaining agreement signed between Director and Trade Union of NLDC on July 20th 2007; Working rules of NLDC – issued in accordance with Decision No.280/QDDDQG-TH dated August 30th 2007 of NLDC; Regulation on tasks and functions of functional departments at the head quarter of NLDC and at Regional Load Dispatch Centers – issued in accordance with Decision No.730 EVN/DHD-TH dated November 22nd 2004 of NLDC; III Regulations on Recruitment, Training and Development: Regulation on recruitment and selection of NLDC – issued in accordance with Decision No.191/QD-DDQG-TH dated May 3rd 2006 of NLDC; Regulation on training for and management of National Power System Operation Engineer and power distribution network dispatcher – issued in accordance with Decision No.344 NL/TCCB-LD dated June 4th 1994 of Ministry of Energy; Regulation on training for and management of Regional Power System Operation Engineer and power distribution network dispatcher – issued in accordance with Decision No.3434/QD-EVN-TCCB&DT dated December 9th 2005 of EVN; Regulation on training for calculation engineer and SCADA operation and management engineer - issued in accordance with Decision No.428 DVN/TCCBLD dated June 24th 1995 of EVN; 92 CHƯƠNG TRÌNH ĐÀO TẠO THẠC SĨ QUẢN TRỊ KINH DOANH QUỐC TẾ Regulation on training for calculation engineer and SCADA operation and management engineer of Regional Load Dispatch Centers - issued in accordance with Decision No.179 EVN/DDQG-ATBH dated April 12th 2000 of NLDC; Outline of the training program for engineers at NLDC – issued in accordance with Decision No.13 EVN/DHD-TH dated January 6th 2005 of NLDC; IV Regulation and Policy on Work-Life: Regulation on democratic performance in NLDC – issued in accordance with Decision No.281/QD-DDQG-TH dated July 30th 2007 of NLDC; Regulation on operational coordination between NLDC and the Trade Union of NLDC - issued in accordance with Decision No.118/LT-DDQG-CD DDQG dated February 28th 2006 of NLDC; Regulation on salary distribution and payment in NLDC - issued in accordance with Decision No.333/QD-DDQG-TH dated August 27th 2007 of NLDC; Regulation on management, distribution and use of funds in NLDC - issued in accordance with Decision No.282/QD-DDQG-TH+TCKT dated July 30th 2007 of NLDC; Regulation on retention and distribution of cost items from other business activities of NLDC - issued in accordance with Decision No.741/QD-DDQG dated August 12th 2005 of NLDC; Regulation on reward for safe operation for employees of NLDC - issued in accordance with Decision No.205 EVN/DDQG-AT dated May 7th 2001 of NLDC; V ISO 9001 – 2000 Quality Management System: Quality Manual Documentation Control Procedure: QT – 01 Document Control Procedure: QT – 02 Procedure on preparation of short-term mode for management of power system operation: QT – 05 Procedure on preparation of long-term mode: QT – 07 Procedure on recovery and prevention performance: QT – 08 Procedure on management & operation of SCADA/EMS: QT - 12 Procedure on correspondence processing: QT – 13 Material Management Procedure: QT - 14 93 CHƯƠNG TRÌNH ĐÀO TẠO THẠC SĨ QUẢN TRỊ KINH DOANH QUỐC TẾ 10 Procedure on preparation of plan and monitoring of plan performance: QT – 15 11 Training Procedure: QT - 17 VI Primary references: Report on power system operation in 2008 – NLDC Report on power system operation in months (of 2009) – NLDC Summary Reports of 2006, 2007 and 2008 – Northern, Central and Southern Load Dispatch Centers Summary report on employee movement and Trade Union performance in 2008 – Trade Union of NLDC Introduction on SCADA/EMS at NLDC VII Websites referred: - Best Udergrad College Degrees By Salary, ” Civil Engineering”, August 2009 - US SALARY SURVEY REPORT 2008 – 2009, The Association to Advance Collegiat Schools of Business, 777 South Harbour Island Boulevard, Suite 750, Tampa, FL 33602-5730 - Websites: vnexpress.net, dantri.com.vn, vietbao.vn 2009 VIII Others: - Decree No 205/2004/ND-CP dated December 14th 2004 of the Government - Circular No.01/2005/TT-BLDTBXH dated January th 2005 of Ministry of Labor, Invalids and Social Affairs - University Training Department – Faculty of Electrical Engineering – Power System Division –Universities of Technology (Hanoi University of Technology: 0438692009, Da Nang University of Technology: 05113841470 and HoChiMinh City University of Technology 0838654087) - 2009 Year Book of Ministry of Education and Training 94 ... POWER SYSTEM CALCULATION DEPARTMENT TECHNOLO GICAL DEPART 36 CHƯƠNG TRÌNH ĐÀO TẠO THẠC SĨ QUẢN TRỊ KINH DOANH QUỐC TẾ Structure of Center includes: (1) Director of Center (2) Vice Directors of Center... make announcement to power generation, transmission and 37 CHƯƠNG TRÌNH ĐÀO TẠO THẠC SĨ QUẢN TRỊ KINH DOANH QUỐC TẾ distribution units, power market management authority and organizations and... the form of immediate delivery and auxiliary services; 38 CHƯƠNG TRÌNH ĐÀO TẠO THẠC SĨ QUẢN TRỊ KINH DOANH QUỐC TẾ e Receive and review recommendations on transaction activities in the power