Managerial competencies of middle managers at petrovietnam finance corporation pvfc

MINISTRY OF EDUCATION AND TRAINING NATIONAL ECONOMICS UNIVERSITY NEU BUSINESS SCHOOL TRUONG HUYEN TRANG MANAGERIAL COMPETENCIES OF MIDDLE MANAGERS AT PETROVIETNAM FINANCE CORPORATION (PVFC) MASTER OF BUSINESS ADMINISTRATION 60.34.05 HANOI - 2010 TABLE OF CONTENT ACKNOWLEDGEMENT ABBREVIATIONS LIST OF TABLES LIST OF CHARTS EXECUTIVE SUMMARY CHAPTER INTRODUCTION 1.1 RATIONALE 1.2 RESEARCH QUESTIONS 1.3 RESEARCH OBJECTIVES 1.4 RESEARCH METHODOLOGY 1.4.1 Research process .8 1.4.2 Collecting data 1.4.3 Analyzing data .10 1.5 RESEARCH SCOPE 10 1.6 RESEARCH STRUCTURE 11 CHAPTER THEORETICAL BACKGROUND ON MANAGERIAL COMPETENCY 13 2.1 COMPETENCY AND MANAGERIAL COMPETENCY OVERVIEW 13 2.1.1 Definition, components and analysis process of competency 13 2.1.1.1 Definition of competency 13 2.1.1.2 Competency components 15 2.1.1.3 Factors affect competency 17 2.1.1.4 Competency assessment 19 2.2 MANAGERIAL COMPETENCIES 23 2.2.1 Management function .23 2.2.1.1 Planning 25 2.2.1.2 Organizing .25 2.2.1.3 Coordinating 26 2.2.1.4 Controlling .26 2.2.1.5 Commending 27 2.2.2 Managerial competencies of middle managers 27 CHAPTER REQUIRED COMPETENCIES FOR MIDDLE MANAGERS AT PVFC 32 3.1 INTRODUTION OF PETRO VIETNAM FINANCIAL COPORATION (PVFC) 32 3.1.1 Overview 32 3.1.2 PVFC Board management structure 35 3.1.3 Some financial figures of PVFC .37 3.2 REQUIRED MANAGERIAL COMPETENCIES FOR MIDDLE MANAGERS AT PVFC 39 3.2.1 Required Knowledge of Middle managers .43 3.2.1.1 Required Fundamental knowledge 43 3.2.1.2 Required company strategy awareness .43 3.2.2 Required Middle managers skills of Middle managers: 44 3.2.2.1 Require Communication skills: 44 3.2.2.2 Receiving orientations skill: .45 3.2.2.3 Required motivation skills: 46 3.2.2.4 Required Problem solving skills 46 3.2.3 Required Ability of Middle managers: 47 3.2.3.1 Required Performance management 47 3.2.3.2 Developing Subordinates 48 3.2.4 Conclusion of required managerial competencies for Middle managers at PVFC .48 CHAPTER ANALYZE THE CURRENT MANAGERIAL COMPETENCIES OF MIDDLE MANAGERS AT PVFC 50 4.1 CURRENT COMPETENCIES OF MIDDLE MANAGERS AT PVFC .51 4.1.1 Current Fundamental Knowledge 51 4.1.2 Current company strategy awareness 52 4.1.3 Current communication skills of Middle managers 54 4.1.4 Current receiving orientations of Middle managers 55 4.1.5 Current motivation skills of Middle managers .57 4.1.6 Current problem solving of Middle managers .59 4.1.7 Current performance management of Middle managers 60 4.1.8 Current developing subordinates of Middle managers 62 4.2 CONCLUSION OF THE CURRENT MANAGERIAL COMPETENCIES OF MIDDLE MANAGERS AT PVFC .63 4.3 REASONS FOR THE GAP BETWEEN THE REQUIRED AND CURRENT MANAGERIAL COMPETENCIES OF MIDDLE MANAGERS AT PVFC .66 CHAPTER RECOMMENDED SOLUTIONS TO IMPROVE MANAGERIAL COMPETENCIES OF MIDDLE MANAGERS AT PVFC 68 5.1 THE BASIC SOLUTIONS FOR THE HR 69 5.1.1 Setting clearly objectives and target for HR 69 5.1.2 Improvements of assessment criterion for Middle managers 71 5.2 SPECIFIC TRAINING SOLUTIONS FOR MIDDLE MANAGERS TO MEET THE REQUIRED MANAERIAL COMPETENCIES 72 5.3 SUPPORTIVE SOLUTIONS FOR MIDDLE MANAGERS TO MEET THE REQUIRED MANAERIAL COMPETENCIES 78 5.3.1 Training frequency 78 5.3.2 Training methodology 78 5.3.3 Training lecturers 78 5.3.4 Training content .78 5.3.4.1 Training policies and training procedure 78 5.3.4.2 Set up an internal training system 79 5.3.4.3 Building a continuous learning culture in the Corporation .79 CONCLUSION .80 REFERENCES .82 APPENDIX 84 ACKNOWLEDGEMENT This thesis is completed to fulfill the requirement from the Master of Business Administration (MBA) program, Business School – The National Economics University (NEU Business School) First of all, I would like to thank all of the MBA professors of National Economics University, who have equipped me with a lot of valuable knowledge and skills for my study I would like to send my sincere thanks to my supervisor, Associate Professor, Dr Tran Thi Van Hoa who guided me enthusiastically during the last thesis’s implementation I also thank to my E-MBA 7C classmates for their precious comments on this thesis Besides, CEO and all Executive board of Petro Vietnam Finance Corporation (PVFC) gave me many advices and directions to conduct the research I also thank to my colleagues at PVFC who openly share with me on their perspective and expectation on the research Their support is very important and decisive factors to the success of this thesis Last but not least, I want to express my thanks to my family who supported me a lot during the difficult time of pursuing this MBA program and the compliment of its Graduation Thesis Thank you very much! ABBREVIATIONS CDM Clean Development Mechanism CEO Chief Executive Officer CERs Certified Emission Reductions HR Human Resource JSC Joint Stock Company M&A Mergers and Acquisitions MBA Master of Business Administration PA Performance Appraisal PVC Petro Vietnam Construction Joint Stock Corporation PVFC Petro Vietnam Finance Corporation PVN Petro Vietnam LIST OF TABLES Table 3.1: PVFC’s Sources of Capital 37 Table 3.2: PVFC’s Credit of Activities 38 Table 3.3: Required ‘Fundamental knowledge’ for middle managers 43 Table 3.4: Required ‘Company strategy awareness’ for middle managers 44 Table 3.5: Required ‘Communication skills’ for Middle managers 45 Table 3.6: Required ‘Receiving orientation’ for Middle managers 45 Table 3.7: Required ‘Motivation skills’ for Middle managers 46 Table 3.8: Required ‘Problem solving’ for Middle managers 47 Table 3.9: Required ‘Performance Management’ for Middle managers 47 Table 3.10: Required ‘Developing subordinates’ for middle managers 48 Table 4.1: Respondents of the research 50 Table 4.2: Current knowledge of Middle managers 51 Table 4.3: Current strategy awareness of Middle managers 53 Table 4.4: Current communication skills of Middle managers 54 Table 4.5: Current receiving orientations of Middle managers 56 Table 4.6: Current motivation skills of Middle managers 57 Table 4.7: Current problem solving of Middle managers 59 Table 4.8: Current performance Management of Middle managers 60 Table 4.9: Current developing subordinates of Middle managers 62 Table 5.1: Recommended training courses for Middle managers 73 LIST OF CHARTS Chart 1.1: Research process Chart 2.1: Definition of Competency 14 Chart 2.2: Main factors affect competency 18 Chart 2.3: Middle managers competency assessment process 23 Chart 3.1: PVFC’s Share Holder Structure 33 Chart 3.2: Credit Growth of PVFC from 2004 – 31/08/2008 34 Chart 3.3: PVFC Management Structure 36 Chart 3.4: 5-mark Scale for assessing managerial competencies 40 Chart 3.5: Required competencies for middle managers at PVFC 49 Chart 4.1: Gap between required and current fundamental knowledge 52 Chart 4.2: Gap between required and current strategy awareness 53 Chart 4.3: Gap between required and current communication skills 55 Chart 4.4: Gap between required and current receiving orientations 56 Chart 4.5: Gap between required and current motivation skills 59 Chart 4.6: Gap between required and current problem solving 60 Chart 4.7: Gap between required and current performance management 61 Chart 4.8: Gap between required and current developing subordinates 63 Chart 4.9: Current managerial competencies of Middle managers at PVFC 64 Chart 4.10: The gap between required and current managerial competencies 65 EXECUTIVE SUMMARY It is true that human factor always plays a main role in all things Not apart from business, no one can deny the essential importance of Human Resource Management in economics and business It is like a key to open the door of existence, development and success of every company, organization and corporation Organizations only can reach their objectives when they have the competent staffs that are creative, enthusiastic and contribute effectively to the organizations When an organization runs a business, each individual contributes differently to the organization due to the original characteristic, responsibility of his position These days, when individual companies have a trend to make a partnership with others, they can become a larger company and have the more profound influence, they need more seriously the competent management system in which the term of management can divide into or even classes to enhance the effectiveness and improve the progressiveness This can be briefly described like a pyramid with the top as the Top managers - the few highest positions directly establish strategies and objectives for the organization The body of this pyramid is the place for Middle managers – who are essentially important to connect the foundation – lower subordinates or employees and the top – Top managers If the pyramid has not a body for Middle managers, they cannot have a tri-angle shape and never be called as a pyramid anymore This example is told just to illustrate the importance of Middle managers in the management field today Middle managers, as described above, are like the bridge connecting the Top managers and the lower employees If the bridge is not good enough to its responsibility, it would be no connection at all between two sides Thus, the competency of Middle manager is very significant There are a wide range of research and studies about competency but nowadays, when the business become more and more complex, competency of managers, especially Middle managers is now the growing attention To help the Top managers make their orientations, strategies to actions and results, Middle managers have to obtain the good managerial competency to receive the orientations and then interpret them to the lower subordinates by assigning work to appropriate individual, directing them the job effectively and monitoring the result Being aware of the seriously importance of Middle managers for organizations, I recognize that Petro Vietnam Financial Corporation (PVFC) – one of the largest financial institution of Vietnam where I has been working for years has not conducted any research and studies about improving managerial competency for Middle managers Therefore in fact, managerial competencies of Middle managers at PVFC not satisfy the needs of work Some requirements that the Top managers have requested were not implement sufficiently As the results, the staff misunderstood the tasks that they were given by the Top managers so objectives were not archived In order to help PVFC find out the sufficient way to enhance the managerial competency of Middle managers, my thesis focus on the solutions for improving managerial competencies of Middle managers More specifically, my thesis is designed to answer four questions below: - What are required managerial competencies of the Middle managers to implement their jobs effectively at PVFC? - What are current managerial competencies of the Middle managers at PVFC? - Are there any gaps between current managerial competencies and required managerial competencies of Middle managers at PVFC and what its causes? - How to improve managerial competencies of Middle managers at PVFC to implement their jobs effectively? Basing on the Theoretical framework of competency and managerial competency, competency model, competency assessment process, I carried a research using in-depth interviews and questionnaire surveys to study the managerial competencies of Middle managers at PVFC