NATIONAL ECONOMIC UNIVERSITY EXCELLENT EDUCATIONAL PROGRAM ================================== BACHELOR THESIS SUBJECT ASSESSING EMPLOYEE AT TUYEN QUANG FOREST AND MINERAL JOINT STOCK COMPANY Instructo[.]
NATIONAL ECONOMIC UNIVERSITY EXCELLENT EDUCATIONAL PROGRAM ================================== BACHELOR THESIS SUBJECT: ASSESSING EMPLOYEE AT TUYEN QUANG FOREST AND MINERAL JOINT STOCK COMPANY Instructor : Ph.D Ha Son Tung Student : Tran Trong Dat Student code : 11150768 Class : Business administration AEP57 Ha Noi, 2019 Table content Introduction……………………………………………………………………………… Background and Scope of Study………………………………………………………… Aim and Objective of the Study……………………………… ………….………………6 Research Method and Methodology……………………………………………… …….6 Research contribution and Significance of Study…………………… ………………… Structure of the Thesis……………………………………………….……………………7 Chapter 1: Rationale of employee assessment………………………… ……………….8 1.1 Theories of Performance assessment…………………………….………………….8 1.1.1 Definition of Performance …………………………………………… ………8 1.1.2 Underpinning theories of performance assessment ………… ………………9 1.1.2.1 Equity theory ………………………………………………… …………….10 1.1.2.2 Expectancy theory …………………………………………….…………… 11 1.1.2.3 Procedural Justice theory …………………………………… … ……… 12 1.1.2.4 Goal-setting theory……………………………………………… …………12 1.2 Performance assessment system……………………………………… …… … 14 1.2.1 Nature of performance assessment……………………………… ….………14 1.2.2 Performance evaluation process………………………………………………14 1.2.3 Accuracy of Performance Ratings and the Relationship of Appraiser and Appraisee …………………………………………………… …………… …………21 1.3 Factors affect Performance Evaluations………………………………………… 22 1.3.1 External factors…………………………………………… …………………22 1.3.2 Internal factors……………………………………………… ……………….23 Chapter 2: Current status of employee assessment at Tuyen Quang Forest and Mineral Joint Stock Company…………………………………………… ………….…… ……26 2.1 Overview of Tuyen Quang Forest and Minerals Joint Stock Company…………26 2.1.1 General information about the company……………………………… …… 26 2.1.2 Summary of the process of formation and development……………………26 2.1.3 Organization structure………………………………………………… …… 27 2.1.4 Typical business products……………………………………………… ……29 2.1.5 Quantity and quality of HR of the Company…………………………….……30 2.2 Evaluation on employee assessment at Tuyen Quang Forest and Mineral Joint Stock Company…………………………………………… ……………………………33 2.2.1 Evaluation on employee assessement process…………………………….… 34 2.2.2 Accuracy of Performance Ratings and the Relationship of Appraiser and Appraisee at the compay…………………………………………………………….… 42 2.3 FACTORS INFLUENT……………………………………………………………43 2.3.1 Internal factors……………………………………………………… ……….43 2.3.2 External factors…………………………………………………………… ….45 2.4 General comment………………………………………………………….………46 2.4.1 Result…………………………………………… ………………… …… 47 2.4.2 Restrict……………………………………………………………… ……… 47 2.4.3 The cause of restrict………………………………………………… ……… 47 Chapter 3: Solutions to improve the efficiency of employee assessment at Tuyen Quang Forest and Mineral Joint Stock Company……………………………………… ………49 3.1 Fomico's orientations and development goals in the future…………………… 49 3.1.1 Fomico's development orientation in the future…………………….….……49 3.1.2 Human resource development orientation of the Company until 2021…… 49 3.1.3 The goal of improving the quality of human resources of the company in the future………………………………………………………………………………… …49 3.2 Solutions to improve the performance evaluation of employees at Fomico…… 51 3.2.1 Solution 1: Use assessment results in other personnel activities………………52 3.2.2 Solution 2: Change method of evaluating employee performance…………….54 3.2.3 Solution 3: Training the assessors………………………………………… ….59 CONCLUSION……………………………………………………………………… …61 REFERENCES……………………………………………………………………… …63 Table list Table 1.1: Definitions of different authors' performance as a function of the selected variables…………………………………………………………………………… …….9 Table 1.2: Some key inputs and outcomes of equity theory……………………………10 Table 1.3: 13 performance evaluation methods………………………………….………15 Table 2.1: Labor structure of Fomico in 2018……………………….…………………30 Table 2.2: Labor structure of petroleum enterprise…….……………………………….31 Table 2.3: Age and experience of employee at petrolium enterprise………………… 31 Table 2.4: Education level of employee at petrolium enterprise in 2017 and 2018…….32 Table 2.5: Organizational structure of the company's petroleum enterprise……….……33 Table 2.6: Sample of staff assessments used by Fomico to evaluate employees working at gas stations……………………………………………………………………………….34 Table 2.7: Employee assessment scoreboard of Fomico……………………….……… 36 Table 2.8: Survey results on the purpose of staff assessment………………………….41 Table 3.1: Evaluation board of Management by Objectives methods to assess employee performance at Fomico……………………………………………………………… …56 Table 3.2: Evaluation scoreboard of Management by Objectives methods to assess employee performance at Fomico……………………………………………………….57 Table 3.3: Evaluation board of Field Review Method to assess employee performance at Fomico……………………………………………………………………………… ….58 Introduction All successful entrepreneurs believe that HR is the most valuable asset of the business HR is one of the competitive advantages in today's market economy The evaluation of the performance of employees has always been concerned by managers And as a causal relationship where if the assessment of personnel is valued, there are always the best personnel there Evaluating performance is a good opportunity for your employees to understand the fact that they are the mainstay of the company, helping the company stand firm against competitors Currently, Vietnamese enterprises have a complete evaluation model Moreover, this is also quite a sensitive task for managers when they are afraid to evaluate their employees, are afraid of judging correctly or may not want to appreciate them properly Besides, the staff sometimes not want to receive the results of their assessment or are rarely happy about the result Therefore, the evaluation of the performance of work in Vietnamese enterprises is not really effective and thorough Tuyen Quang Forest Products and Minerals Joint Stock Company is a private enterprise that has made many contributions to the economy of the province such as: Solving jobs for hundreds of workers, contributing very budget Great for the development of the province, creating a famous private enterprise brand in Vietnam The company has a large staff and workers, so to effectively manage this human resource is a matter of constant concern, how to have staff, active staff The best and the most dynamic, in the transformation of the market economy Therefore, the evaluation of the performance of the employees' work has become more urgent and important Understanding the importance of evaluating employee performance, I decided to choose the topic: "Assessing employee at Forest and Mineral Joint stock company" to provide useful solutions and bring the highest working efficiency to the staff at the Company Background and Scope of Study This study is conducted in the context that most small and medium enterprises in Vietnam not have a complete system for evaluating employee performance and can bring many benefits to their businesses Tuyen Quang Forestry and Minerals Joint Stock Company is not an exception The system evaluates the company's employee performance at present, too sketchy, only formally and almost ineffective Because of this, the employees of the company tend to work hard, have a bad attitude to work so that customers often feel uncomfortable and complain to the company's leaders This badly affects the company's image and employee productivity This study was conducted with the desire to improve the weaknesses in staff performance assessment in Tuyen Quang Forestry and Minerals Joint Stock Company This could also be a lesson for other small and medium businesses in rebuilding their employee performance evaluation system Aim and Objective of the Study The purpose of the study is to propose practical, practical solutions that are really effective for the evaluation of employee performance at Fomico First, systematize the basic theoretical issues of assessing employee performance in enterprises Secondly, analyzing the status of the Evaluation of employee performance, thereby finding the cause of the limitations in the performance evaluation of employees at Fomico Third, propose improvement measures to improve the performance assessment of employees at Fomico Research Method and Methodology Thesis using the main research methods as follows: - Practical observation method - Method of investigation by survey form - Methods of collection, synthesis and statistical analysis - Professional solution The above methods help the author approach problems from many angles: from theory to practice With such a problem approach, it is possible to avoid the viewpoints of face recognition and the proposed solutions will be close to practical, highly feasible Research contribution and Significance of Study Systematize the theoretical basis of assessing performance in the organization - Evaluate the situation of staff assessment; Analyze the results achieved and exist in the employee performance evaluation system at Fomico The thesis proposes a system of synchronous solutions to improve the research system and contribute to improving competitiveness for Fomico's staff Structure of the Thesis In addition to the introduction, conclusion, thesis is structured into chapters with the following specific contents: Chapter 1: Rationale of employee assessment Chapter 2: Current status of employee assessment at Tuyen Quang Forest and Mineral Joint Stock Company Chapter 3: Solutions to improve the efficiency of employee assessment at Tuyen Quang Forest and Mineral Joint Stock Company Chapter 1: Rationale of employee assessment 1.1 Theories of Performance assessment 1.1.1 Definition of Performance Although personal performance and performance are common terms and widely used However, the concept of performance for many people is still really ambiguous and does not really know the definition of performance There have been some opinion made by some authors to clarify the concept of performance: Some authors argue that when mention about the concept of performance, it must be assessed through evaluation of various factors or it can be understood that performance is a dependent variable and must be evaluated through other variables Cummings and Schwab (1973) and Whetten and Cameron (1998) believe that performance is an individual phenomenon with environmental variables influencing performance through their effects on the individual determinants of performance ability and motivation This way of thinking is very similar to Vroom (1964) point of view about the definition of performance, that is the performance depends on two variables, ability and motivation Bernadin et al (1995) suggest that performance should be defined as the result of work because they are the organization's strategic objectives, customer.satisfaction and economic.contributions However, performance is a behavior that is an independent variable or the outcomes is a dependent variable? Campbell (1990) confirm performance as behavior of an employee And he believes that performance is behavioral and should be distinguished from outcomes Because outcomes depend not only on employee behavior, but also on many other influencing factors However, Brumback (1988) said: Performance is including employee behavior but also includes outcomes This view provides a more comprehensive view of performance if it is defined as covering both behavior and outcomes Therefore, the different definitions of the above authors on performance show that, when managing the performance of groups and individuals, both inputs (behavior) and output (outcomes) need to be considered Other definitions of different authors' performance as a function of the selected variables are shown in the Table below: Author’s Name Year Definition of performance Vroom 1964 Ability + motivation Blumberg and Pringle 1982 Individual attributes + work effort + organizational support Campbell 1990 Declarative knowledge + procedural knowledge + motivation Cardy and Dobbins 1994 System factors + person factors Boxall and Purcell 2003 Ability + motivation + opportunity to participate Table 1.1: Definitions of different authors' performance as a function of the selected variables 1.1.2 Underpinning theories of performance assessment The basic foundation of performance assessment is about psychosocial studies This discipline studies the psychology of interpersonal relationships in the community or in the same organization In terms of employee performance assessment, there are a number of theories that support the definition of performance in the perspective of social psychology: Equity theory, Expectancy theory, Goal-setting theory, Procedural Justice theory 1.1.2.1 Equity theory