Rationale
Human resources are the most valuable asset in any business, significantly influencing production and operational efficiency The investment in high-quality human resources is crucial, as they serve both as a goal and a driving force for organizational activities The effectiveness and growth of an organization largely depend on the quality of its human resources, making them essential for survival and development Thus, the strength or weakness of an organization is closely tied to the caliber of its workforce.
In today's rapidly evolving society, consumer demands are rising, necessitating a continuous decline in prices and an enhancement in product quality To thrive, businesses must prioritize innovation in production technology, boost intellectual input in their offerings, enhance labor productivity, and reduce costs while maintaining high standards This evolution calls for a dynamic workforce that stays attuned to customer preferences and adapts swiftly to changing market trends.
VNPT Tuyen Quang, a subsidiary of the Vietnam Posts and Telecommunications Group, specializes in producing, trading, and providing telecommunications and information technology services in Tuyen Quang Province As the telecommunications and IT market evolves, companies in this sector face intensified competition and rapid technological advancements, prompting VNPT Tuyen Quang to adapt and innovate alongside its parent organization.
The Ministry of Information and Communication in Tuyen Quang, VNPT, must innovate its management and business strategies It is essential to implement solutions aimed at enhancing the quality of human resources to align with the demands of management and business operations in the evolving landscape.
This master’s thesis focuses on enhancing human resource efficiency at VNPT Tuyen Quang, addressing the critical link between management quality and business performance The research aims to provide actionable solutions to improve human resource utilization, highlighting its significance in the field of human management.
Literature review
Research on human resource efficiency is not a new topic A number of studies can be mentioned as follows:
In his 2001 research, "Researching People and Human Resources in the Context of Industrialization and Modernization," Prof Pham Minh Hac aimed to evaluate the implementation of the Party's and State's strategies on cultural development and human resources The study assesses the current state of culture and human resources amid market economy dynamics, globalization, and international integration, identifying the needs for the country's modernization efforts Additionally, it seeks to provide scientific foundations for strategic planning and policy development to enhance cultural and human resource growth in Vietnam.
The topic of the Human Research Institute, the project leader Assoc Prof
Dr Pham Thanh Nghi's 2013 study focuses on enhancing the efficiency of human resource management amidst industrialization and modernization The project reviews various human resource management models and proposes solutions aimed at improving the management and utilization of human resources across state administration, the public sector, and enterprises.
The thesis "Improving the Quality of Human Resources at VNPT Ha Tinh" by Master Tran Bac (2014) from the University of Economics, Hanoi National University, explores key theoretical concepts related to human resource development in enterprises, focusing specifically on telecommunications It evaluates the current state of human resources at VNPT Ha Tinh, conducting a thorough analysis to identify solutions that enhance the development capacity of the organization Additionally, the thesis offers recommendations aimed at promoting effective human resource development strategies tailored to the current conditions at VNPT Ha Tinh.
The thesis titled "Solution to Improve the Quality of Human Resources at VNPT Hanoi by 2020" by Master Bui Ngoc Anh (2016) from Bach Khoa University, Hanoi, examines the current state of human resources at VNPT Hanoi, focusing on the theoretical foundations of human resources and factors influencing their attraction and retention It identifies the underlying causes for the suboptimal quality of human resources and evaluates the existing remuneration system, highlighting VNPT Hanoi's appeal to potential employees The thesis ultimately proposes several strategies aimed at enhancing the quality of human resources, which in turn would boost labor productivity and overall business efficiency at VNPT Hanoi.
The thesis "Improving the Quality of Human Resources at VNPT Thanh Hoa" by Master Nguyen Thi Thuy (2014) from the University of Economics, Hue University, provides a scientific foundation for enhancing human resource quality in enterprises It analyzes the current status of human resource quality at VNPT Thanh Hoa, identifying achievements, limitations, and the underlying causes of these limitations from 2011 to 2013 Based on this analysis, the thesis proposes solutions aimed at improving the quality of human resources at VNPT Thanh Hoa.
The research highlights the significance of enhancing human resource efficiency in enterprises, particularly within the telecommunications sector While existing studies offer valuable insights and tailored solutions for various businesses, there remains a gap in research specifically addressing the efficiency of human resource use at VNPT Tuyen Quang, a promising telecommunications branch of VNPT This article aims to explore targeted solutions to improve human resource efficiency at VNPT Tuyen Quang, establishing it as a unique contribution to the existing body of knowledge.
Aims of research
- Systematizing the theoretical basis of efficiency of human resource use;
- Analyzing and evaluating the status of efficiency of human resource use at VNPT Tuyen Quang in the period of 2016-2018;
- Proposing solutions to enhance efficiency of human resource use at VNPT Tuyen Quang in the coming time.
Scope of research
+ Time: The thesis analyzes the status of efficiency of human resource use at VNPT Tuyen Quang in the period of 2016-2018 and proposes the recommendations up to 2025
+ Content: The efficiency of human resource use at VNPT Tuyen Quang.
Research methodology
The thesis employs a secondary data collection method, utilizing publicly available reports and studies This includes analyses of the efficiency of human resource utilization at VNPT Tuyen Quang during the period from 2016 onwards.
In 2018, the enterprise's development plans included completed studies such as master's and doctoral theses, along with articles, magazines, and textbooks focused on enhancing human resource efficiency These resources serve to analyze and elucidate the research content effectively The sources of these documents are clearly documented in the "References" section.
The analytical method is employed to elucidate the secondary data gathered, enabling the author to achieve a thorough and objective evaluation of the effectiveness of human resource utilization at VNPT Tuyen Quang.
This study employs statistical methods to organize and analyze collected data, enabling the formulation of scientific conclusions and assessments aimed at enhancing the efficiency of human resource utilization at VNPT Tuyen Quang.
This study employs a comparison method to evaluate the effectiveness of human resource utilization at VNPT Tuyen Quang against that of other VNPT branches and various telecommunications companies The findings will serve as a foundation for developing strategies aimed at enhancing human resource efficiency at VNPT Tuyen Quang in the future.
The author collects data and conducts synthesis to select relevant information, which is then processed using Excel software By analyzing absolute and relative parameters, as well as average figures presented through tables, diagrams, and graphs, the author evaluates the effectiveness of human resource utilization at VNPT Tuyen Quang.
Besides introduction, conclusion, references and appendix, the research includes three main parts as follows:
Chapter 1: Theoretical background on efficiency of human resource use Chapter 2: Assessing the situation of efficiency of human resource use at VNPT Tuyen Quang
Chapter 3: Proposal on solutions to improve the efficiency of human
THEORETICAL BACKGROUND ON EFFICIENCY OF HUMAN
Human resources in the enterprise
Human resources are a crucial asset for any organization, playing a vital role in determining its success or failure Unlike financial, physical, or technological resources, the development of human resources is influenced not only by natural and mechanical factors but also by legal systems, including the laws of supply and demand and competition.
Human resources encompass the collective knowledge, skills, experience, competencies, and creativity of individuals that contribute to both personal and national development, as stated by the United Nations.
According to the World Bank, human resources encompass the complete human capital of individuals, which includes physical strength, intelligence, and occupational skills This definition positions human resources as a vital source of capital, alongside other forms of physical capital like monetary assets, technology, and natural resources.
The International Labor Organization (ILO) defines human resources as the entire working-age population, encompassing two key aspects: broadly, they serve as the labor source for social production and development, while narrowly, they represent society's capacity for work and economic growth This includes individuals who are able to participate in labor and production, highlighting the physical and mental attributes that contribute to the labor process.
According to the human resources curriculum of the University of Labor - Social Affairs by Assoc.Prof.Dr Nguyen Tiep (Chief editor), published in 2005,
Human resources encompass the entire working population, serving as a vital labor source for society More specifically, this term refers to the working-age population possessing the capacity to engage in essential societal labor.
From a political economy perspective, human resources encompass the total physical and mental capabilities within a nation's workforce This includes both traditional and innovative labor experiences that have historically contributed to generating material and spiritual wealth, addressing the current and future needs of the country.
Human resources are assessed under two angles, quantity and quality:
Human resources are quantified by the total count of employed individuals, unemployed individuals, and those in reserve labor However, for businesses, the definition of human resources is limited to those of working age who are currently employed within the enterprise, rather than encompassing the entire working-age population of society.
- Regarding the quality: Human resources are expressed through physical strength, mental capacity, labor skills, morale, attitude, working consciousness and working style
Human resources refer to the workforce comprising individuals who are both able and willing to engage in social production activities, without any restrictions imposed by authorities.
1.1.2 The necessity of improving human resource
Workers are essential to the existence and growth of businesses, as they are responsible for researching, designing, and manufacturing high-quality products and services They also play a crucial role in selecting and consuming these offerings In essence, the labor force is a vital input that significantly influences the success or failure of an enterprise.
A business manager's primary role is to leverage relationships and human resources to address challenges and meet organizational objectives Effective management hinges on a deep understanding of employees' health, needs, capabilities, and motivations Therefore, prioritizing the enhancement of human resource management is crucial for business success.
Improving the efficiency of human resource use
1.2.1 Some definitions related to efficiency of human resource use
The efficiency of human resources encompasses a broad range of characteristics, including physical strength, mental capacity, skills, ethical standards, lifestyle, and overall spirit It reflects the quality of human resources through factors such as education level, health status, professional qualifications, and career structure Notably, education and occupational skills serve as crucial criteria for evaluating the quality of human resources.
The efficiency of human resources is a critical aspect that encompasses both the state of human resources as a unique entity and their role in economic activities and social relationships It is defined by a blend of characteristics that highlight the nature and specificities associated with human production and development efforts.
The efficiency of human resources encompasses both the quantity and quality of labor, highlighting the importance of vocational education and professional skills among employees A well-trained workforce is essential, as employees must possess good health to perform their jobs effectively Additionally, a strong work ethic and responsible attitudes are crucial, reflecting the employees' values and commitment to their roles.
It can be said that the efficiency of human resources is combined by three factors: physical strength, intellect and lifestyle ethics
Physical strength is a crucial aspect of human health, reflecting biological development and the absence of disease It enables individuals to engage effectively in their occupations and supports prolonged study and work Conversely, weak physical strength can significantly hinder both personal intellectual growth and the overall development of society.
- Intellect: is the intellectual, mental capacity, the level of intellectual development, a professional and technical education, a professional skill and a skill
Human creativity is significantly influenced by various factors, playing a crucial role in the advancement of human resources In today's fast-paced world, where science and technology are evolving rapidly, this creative capacity becomes increasingly essential for progress and innovation.
An ethical lifestyle reflects societal moral standards and embodies the values that shape daily activities and behaviors It represents the personality and cultural enlightenment of individuals, highlighting the importance of ethics in enhancing labor quality and social consciousness Beyond physical and intellectual capabilities, an ethical lifestyle emphasizes the significance of life experiences and the application of knowledge in creative endeavors The effectiveness of human resources relies on a blend of intellectual depth, organizational skills, and adaptability, enriched by education and social connections Ultimately, the quality of culture and society can drive creativity and development, benefiting both individuals and the community as a whole.
1.2.2 Contents of improving the efficiency of human resource use
Enhancing human resource efficiency involves activities aimed at upgrading the professional qualifications and management skills of employees in response to societal evolution and advancements in science and technology.
Improving skills is perfecting the existing theoretical knowledge and practical skills of workers, making them more capable, working more effectively and qualitatively to adapt to work in the future
Specifically, improving the efficiency of human resources of an organization or enterprise is focused on the following specific contents:
To enhance employees' physical strength, businesses must foster an environment that supports their well-being This includes improving working conditions, optimizing the work environment, and ensuring competitive compensation By prioritizing these factors, companies can effectively boost their employees' physical health and overall productivity.
Enhancing employee intellectual capacity is crucial for enterprises, necessitating ongoing training and retraining programs These initiatives aim to boost professional qualifications, refine working skills, and expand knowledge in areas such as public management, ultimately leading to a more competent workforce.
Enhancing employee morality, awareness, and consciousness is crucial for organizational success An employee's ability to perform effectively relies not only on their health and professional skills but also significantly on their attitude towards the business and assigned tasks Therefore, companies should focus on strengthening education and fostering a positive, open, and sociable culture within the workplace.
Factors affecting the efficiency of human resource use
External factors influencing human resource efficiency encompass the economic landscape, demographic trends, labor market conditions, state regulations, socio-cultural dynamics, advancements in science and technology, as well as the competitive landscape and customer preferences.
The economic and business cycles significantly impact human resource efficiency During periods of economic growth, companies aiming to expand production must focus on developing new talent and enhancing training for their workforce This expansion necessitates the recruitment of skilled individuals, prompting businesses to offer higher wages, improved benefits, and better working conditions to attract top talent.
During an economic recession, businesses face the challenge of balancing the need to retain a skilled workforce while also cutting labor costs To achieve this, companies may implement strategies such as offering temporary or permanent leave to employees and reducing benefits.
Population and labor force in society
The labor force comprises individuals who are capable of working, regardless of their employment status The structure of this labor force is defined by factors such as age, gender, educational attainment, and professional skills, which collectively shape the workforce's demographic profile Additionally, the quantity and social structure of labor significantly influence the availability, quality, and composition of human resources within organizations.
Our nation is transitioning to a socialist-oriented market economy, aiming for industrialization by 2020 While we've moved past economic backwardness, we have yet to achieve the robust development necessary for becoming a new industrialized country Additionally, the rapidly growing population and the escalating annual workforce demands pose significant challenges that businesses must address.
The legal environment encompasses essential legal documents concerning labor and employment, establishing a framework that enables businesses to effectively manage employer-employee relationships This framework serves as a foundation for companies to set legal standards while forming, enhancing, and developing their human resources.
Cultural lifestyles and social activities are shaped by traditions, customs, habits, rituals, and ethical norms, influencing both individuals and employees within organizations These social and cultural elements play a crucial role in establishing the corporate cultural atmosphere.
Changing a country's cultural values will create challenges for human resource management Good human resource management will determine the success of your business and vice versa
Shifts in employee attitudes towards work and rest are posing challenges for human resource managers In many industrialized nations, workers are demanding shorter hours and increased time off, necessitating a balance between employee interests and business needs Conversely, in developing countries, a liberalist approach is prevalent, complicating the integration of workers into structured business frameworks.
The progress of science and technology significantly impacts human resources, enabling businesses to adopt labor policies that optimize workforce size and structure This transformation influences the scale and quality of operations, ultimately shaping the overall human resource strategy.
To remain competitive in the market, Vietnamese businesses must enhance their science, technology, and equipment This transformation significantly impacts the organization’s workforce, necessitating the training and development of employees to adapt to the rapid advancements in modern science and technology.
Science and technology changes, some jobs and skills are no longer needed
Businesses face a dual challenge: they must retrain their current employees and hire more skilled individuals while simultaneously reducing staff and reorganizing any redundant workforce.
Human resources are vital assets for any company, and to thrive, organizations must actively attract, retain, and nurture their talent Implementing effective human resource policies, fostering strong leadership, and providing incentives create a positive corporate culture Additionally, continuously enhancing the work environment and improving employee welfare are essential for success Human resource managers must possess the skills to manage employees effectively, ensuring optimal productivity and engagement.
Customers are the cornerstone of every business, and management must ensure that employees create products that meet customer needs and preferences while maintaining high quality Sales and profitability are crucial for business survival, so it's essential for managers to instill in their teams the understanding that without customers, there is no business and consequently no job opportunities.
Effective management of human resources is crucial for employees to understand their roles, as it directly impacts customer satisfaction The challenge lies in ensuring that management at all levels successfully oversees employees to meet customer needs.
External factors significantly impact business operations, necessitating thorough analysis and research By understanding these influences, companies can establish clear operational objectives, which in turn inform the development of effective production and business strategies.
The main internal factors include: the mission and goals of the company, the policies and strategies of the business, the working atmosphere of the business
Mission and goals of the company
Criteria for assessing efficiency of human resource use
Physical strength underpins intellectual growth and facilitates the application of human knowledge in practical tasks It is essential for all officials and employees to maintain good health, regardless of their roles or locations Health serves as a critical foundation for all endeavors, and the quality of personnel is reflected in their physical, mental, and spiritual well-being, as well as their attitudes, motivations, and work ethic.
Health is a crucial factor in evaluating labor quality, encompassing physical, mental, and social well-being According to the Ministry of Health, workers are classified into three health categories: Type I indicates good physical strength, Type II represents average health, and Type III signifies weak health.
Maintaining employee health is essential not only during the recruitment process but also throughout their employment Good health is crucial for employees to perform effectively and manage high-pressure work environments.
Professional qualifications are essential for executing tasks and producing quality work These qualifications encompass the knowledge and skills evaluated against specific standards, as reflected in the diplomas awarded to civil servants following their educational journey.
Qualification standards serve as a framework for categorizing employees within an organizational hierarchy, varying by industry and employee rank The evaluation of professional qualifications encompasses two primary types of criteria.
The educational level of an employee reflects their knowledge acquired through the education system, which in our country is categorized into distinct levels: elementary, junior high, and high school.
Vocational training qualifications refer to the professional skills acquired by laborers through formal education, tailored to their specific job roles These qualifications align with the existing degree system, which categorizes them into five levels: elementary, intermediate, college, university, and postgraduate.
The skill level of an employee reflects their job proficiency and is crucial for evaluating overall workforce effectiveness within an enterprise To assess this, organizations typically analyze the average skill levels of their employees, as well as the rankings of managerial staff These skilled competencies are indicative of the job performance capabilities of workers.
Employee professionalism is demonstrated through their work performance, adaptability in overcoming challenges, and commitment to high discipline It also involves impartiality in upholding and executing the law, which is essential in fostering positive relationships and cooperation with colleagues, citizens, and organizations.
In today's fast-paced work environment, professionalism is crucial for both business success and individual career advancement As a result, demonstrating professionalism has become a key expectation for employees.
Ethics encompasses the social principles, rules, and norms that guide and assess individuals' behavior in their interactions with one another and society at large Assessing worker morality in the workplace can be challenging due to the lack of specific criteria.
Every profession is guided by its own ethical standards, reflecting the moral values inherent in each company's culture To foster societal progress, it is essential for professionals across all fields to adhere to fundamental ethical principles This adherence not only upholds the integrity of careers but also ensures that the products and services of industries and companies earn the respect of society.
ASSESSING THE SITUATION OF EFFICIENCY OF HUMAN
Overview about VNPT Tuyen Quang
VNPT Tuyen Quang, a dependent accounting unit of VNPT Group, was established on December 6, 2007, through Decision No 695/QD-TCCB/HĐQT by the Board of Directors of VNPT Group This organization emerged from the reorganization of the Telecommunication - Information Technology Service business of the former Tuyen Quang Post Office, which dates back to August 1945, and officially commenced operations on January 1, 2008.
The establishment and growth of VNPT Tuyen Quang are closely linked to the development of the Tuyen Quang Provincial Post Office and the broader Vietnam Post Industry, encapsulated by the ten traditional values: "Loyalty - Brave - Dedication - Creativity - Affection."
Loyal to the Party, to the Fatherland, to the people and to the development of the industry
Brave to overcome all difficulties, challenges, determined to maintain communication in all situations
Dedication to work, promoting solidarity, completing all tasks with high quality and efficiency
Creativity in labor, obeying the law, building a civilized, polite and industrial style
Affection to comrades, colleagues and the deceased
VNPT Tuyen Quang is dedicated to collaborating with its member units to establish VNPT Group as a leading telecommunications and IT provider in Vietnam, while also enhancing its reputation on the international stage, all in line with the proud legacy of the Post Office.
Vision: No 1 Vietnam - On par with the world
Philosophy: Customer-center Quality is the soul Efficiency is a measure Ethics: Trust with the State Trust with the Community Trust to Customers Trust to Workers
2.1.2 Functions and tasks of VNPT Tuyen Quang
VNPT Tuyen Quang plays a crucial role within the VNPT Group's organizational and operational framework It engages in business and public utility activities alongside other member units, contributing to a cohesive VT-IT production line nationwide The strong interconnections among these units enhance network organization, financial interests, and service development.
- Organizing the development, construction, management, operation, installation, exploitation, maintenance, repair of peripheral networks and infrastructure of telecommunications station houses in the province under management;
- Organizing installation, repair, maintenance, technical support for customers using telecommunications services, information technology and communication in the management area as required
- Conducting surveys, consulting, designing, installing and maintaining telecommunications, information technology and communication works as required
- Organizing business of advertising services and leasing offices, equipment, stations based on the existing resources of the unit
The organization is dedicated to providing timely and safe information to the Party, Government, and local authorities as needed, while also managing production and business activities in compliance with legal regulations and the Group's permissions.
2.1.3 Organizational structure of management apparatus of VNPT Tuyen Quang
Experiencing stages of development, from its inception to the present, VNPT Tuyen Quang has changed its organizational structure to suit the new business environment
Currently, the organizational structure of VNPT Tuyen Quang is composed of: Management division and direct production division, namely:
- Party – Union Division (Party, Trade Union, Youth Union)
*) Division of production units, including: Information Technology Center, Information Management Center and 05 Regional Telecommunications Centers in city areas and districts
Figure 2.1: Organizational chart of VNPT Tuyen Quang
Source : Human Resources – General Department, VNPT Tuyen Quang
The organizational structure of Tuyen Quang Province's telecommunications sector is well-suited to its diverse operational landscape across various districts and cities Despite the geographical dispersion and unique business conditions of its member units, they all rely on a unified accounting system and benefit from the motivational policies established by the provincial telecommunications authority.
Each center has a single director and management team, which means that the effectiveness of motivational measures can vary based on the leadership styles and decisions of these directors and area leaders.
2.1.4 Business results of VNPT Tuyen Quang in the period of 2016-2018
Table 2.1: Results of the main business targets for the period of 2016-
Total subscribers available on the network
Profit after tax (VND million) 25.535 16.353 -1.434
Payment to State budget (VND million) 4,783 2,638 2,286
Source : Planning – Accounting Department, VNPT Tuyen Quang
Between 2016 and 2018, VNPT Tuyen Quang underwent significant changes in its business activities, driven by the introduction of new products and services aimed at offsetting the decline in traditional voice service revenue In response to intense competition among network operators and the need for improved management in subscriber development, the company restructured its labor arrangement between business and technology Consequently, VNPT Tuyen Quang adopted a new organizational model focused on specialization and differentiation.
Effective operations rely on a three-layered infrastructure—service, business, and unit functionality—that significantly influences overall performance Although revenue targets and new subscriber growth have not consistently improved, successful operational restructuring has led to a remarkable increase in profits over the years.
Overview of human resources of VNPT Tuyen Quang
2.2.1 Statistics of human resources of VNPT Tuyen Quang
Table 2.2: Labor change data for 2016-2018 at VNPT Tuyen Quang
Số lao động dài hạn
Số lao động hợp đồng có thời hạn
Số lao động hợp đồng ngắn hạn
Source: HR - General Department, VNPT Tuyen Quang
The data indicates that VNPT Tuyen Quang hires a limited number of seasonal employees, primarily due to the stable nature of the industry and job positions that are less influenced by seasonal changes The organization typically engages short-term labor contracts to support sales and the deployment of point-of-sale systems, particularly in specific locations like the Lo 8B River Hydroelectric Plant and the shoe factory in Ham Yen, where customer demand varies.
In recent years, VNPT Tuyen Quang has experienced a modest increase in employee numbers, with an addition of 11 workers in 2017 compared to 2016 and 3 more in 2018 compared to 2017 This limited growth is attributed to the Group's policy of restricting recruitment within its member units pending restructuring Consequently, this policy poses challenges for the unit in building a cohesive and complementary workforce for the future.
Table 2.3: Labor structure by age for 2016-2018 at VNPT Tuyen Quang
Source: HR - General Department, VNPT Tuyen Quang
Table 2.3 indicates that employees aged 31-50 represent a significant portion of the workforce, having largely fulfilled job requirements in the past However, due to the telecommunications industry's characteristics, where many roles involve low complexity tasks related to outdoor repair and maintenance of peripheral networks, there is an urgent need to rejuvenate the workforce over the next five years Additionally, as technology and services evolve from traditional fixed-line phone offerings to include broadband internet, MyTV, and various content services, it is essential to update and enhance knowledge and skills to meet these new job demands.
A diverse labor force, composed of trained, qualified, and experienced workers, offers significant advantages for businesses in meeting job requirements effectively However, managing employees of varying qualifications, ages, and roles necessitates an effective motivation strategy to enhance job satisfaction and engagement By fostering a work environment that encourages responsibility, proactivity, and creativity, organizations can improve overall performance and productivity.
Table 2.4: Labor structure by gender for 2016-2018 at VNPT Tuyen Quang
Source: HR - General Department, VNPT Tuyen Quang
Table 2.4 reveals that the male workforce dominates the technical sector, and there has been a decline in overall employee numbers over the years This labor structure aligns with the company's business strategy during a period of technological change, where the need for labor diminishes and restructuring occurs Consequently, the company has opted not to hire new employees to replace those on leave or whose contracts have been terminated This data raises the question of whether men are more suited for roles in the telecommunications industry, as the gender ratio reflects the specific characteristics of the sector.
2.2.4 Labor structure by professional qualifications
Table 2.5: Labor structure by professional qualifications for 2016-2018 at VNPT Tuyen Quang Education
Managers Direct labor & executive service
Source: HR - General Department, VNPT Tuyen Quang
A highly qualified workforce enhances work efficiency and helps achieve planned targets, ultimately increasing income and supporting organizational policies This skilled workforce serves as a motivation for employees to strive for excellence in their roles Additionally, with the implementation of new regulations, unit leaders are addressing the need for appropriate measures to further motivate their teams.
Efficiency of human resource use at VNPT Tuyen Quang
The telecommunications industry involves labor that is predominantly outdoor and often conducted at significant heights or underground, with workers operating in a range of environments from urban to remote areas The nature of the work frequently requires handling heavy tasks, such as constructing underground cable systems and erecting tall poles, often in hazardous conditions that expose workers to electromagnetic fields and harmful vapors Additionally, outdoor work is subject to varying weather conditions, including intense sunlight, rain, and wind, which can adversely affect worker health To maintain uninterrupted communication services, many positions necessitate 24-hour shifts, requiring workers to be on duty during nights.
VNPT Tuyen Quang recognizes the importance of maintaining strong physical health and endurance among its workforce to meet continuous production demands while prioritizing safety As a result, the company has made significant efforts to focus on the well-being of its employees.
Table 2.6: Health situation of workers in VNPT Tuyen Quang Year
Total number of employees with health examination
Health type I Health type II Health type III
The data indicates a steady increase in the number of employees undergoing health examinations over the years In 2016, 121 out of 131 workers were examined, representing 92.37%, with 60.33% classified as Health Type I, 26.45% as Health Type II, and 13.22% as Health Type III This trend continued in 2017, with 127 out of 141 employees examined (90.07%), where 70.87% were Health Type I, 19.68% were Health Type II, and 9.45% were Health Type III By 2018, the number rose to 135 out of 145 (93.1%), with 79.26% in Health Type I, 14.81% in Health Type II, and 5.93% in Health Type III.
In comparison of three years, we can see that the number of employees getting health type I tended to increase; while the number of employees getting health type
II and III decreased Especially, the rate of weak health accounts for a very low rate among the examined workers, reflecting the good physical quality of VNPT Tuyen Quang
VNPT Tuyen Quang boasts a physically strong workforce, largely attributed to its relatively young age structure The organization prioritizes a positive working environment and adheres to regulations by providing in-kind allowances to its employees.
VNPT Tuyen Quang prioritizes the physical health of its workforce by conducting health checks during recruitment and regularly throughout employment For positions demanding physical strength, such as those involving work at heights, the company collaborates with medical units and qualified re-inspection agencies to ensure thorough evaluations Regular health assessments help identify and address common and occupational diseases, allowing for the classification of employee health and enabling the organization to assign suitable job roles accordingly.
Table 2.7: Current health care for workers
Nursing, functional rehabilitation in Do Son,
Tour domestic and foreign tourism 39 43 56
Source: HR - General Department, VNPT Tuyen Quang
VNPT Tuyen Quang conducts regular inspections and controls over the implementation of employee regimes and policies, which enhances production efficiency and business services This commitment ensures timely and comprehensive execution of income management, health care, periodic medical examinations, convalescence programs, tourism activities, and the administration of social, health, and unemployment insurance.
VNPT Tuyen Quang prioritizes employee motivation through various bonuses, welfare programs, and financial incentives By emphasizing rewarding work, the company aims to enhance both the physical and mental well-being of its employees, driving them to achieve better results Currently, VNPT Tuyen Quang implements several effective incentive strategies to support this goal.
Recognizing and rewarding technical innovations is essential for enhancing employee initiatives that aim to improve technology and boost production and business efficiency Employee contributions are evaluated at two levels, with subordinate unit initiatives (CS2 initiatives) receiving the highest bonuses of up to VND 2 million per initiative.
VND 50 million/initiative and solution Employee initiatives will be reviewed, evaluated and decided by the VNPT Tuyen Quang Initiative Council, based on the effectiveness of the initiative
The monthly emulation movement aims to motivate employees and teams by setting specific goals and tasks, with rewards ranging from VND 500,000 to VND 1,000,000 for individuals and VND 1-3 million for groups However, the high and challenging criteria for achievement result in a limited number of individuals and teams receiving these rewards.
To incentivize both individual and team performance, a reward system is implemented for employees who successfully save on production and material costs while exceeding sales revenue This initiative aims to enhance economic efficiency within the organization by encouraging responsible use of supplies and raw materials Bonuses will be awarded quarterly, with amounts determined based on the success of the performance initiatives.
Bonuses are awarded during significant occasions such as Lunar New Year, New Year's Day, the Mid-Autumn Festival, Victory Day on April 30, and National Day on September 2 to motivate employees Despite this, the overall proportion of bonuses and benefits in employees' total income remains relatively low.
VNPT Tuyen Quang prioritizes employee welfare by not only fulfilling mandatory benefits but also offering additional support such as social and health insurance, maternity and sick leave, and various allowances The company provides gifts for significant life events like marriage and retirement, as well as financial assistance for female employees during childbirth Furthermore, VNPT Tuyen Quang supports employees and their families during natural disasters, serious health issues, and unfortunate events such as the death of close relatives This commitment to employee welfare exceeds legal requirements, reflecting the company's dedication to its workforce.
To enhance employee well-being and foster a collaborative work environment, VNPT Tuyen Quang offers various voluntary benefits, including organizing employee holidays, providing birthday gifts, and rewarding academic achievements on special occasions like Children's Day and the Mid-Autumn Festival Additionally, the company supports employees by visiting and presenting gifts to the families of martyrs and offering incentives to children of workers who excel in their studies.
Table 2.8: Welfares of VNPT Tuyen Quang
No Content of welfares Benefit level in 2018
When families encounter natural disasters, enemy sabotage or sickness (not exceeding 02 times / year)
Gifts for employees’ children on Children's Day 1/6; Mid-Autumn Festival
4 Employees’ children getting good achievement at school 100.000 - 1.500.000 Depending on achievements
Source: HR - General Department, VNPT Tuyen Quang
The centralized welfare policy encompasses professional wage payments, regulations on emulation and rewards, democratic practices, and the management of welfare funds, which are regularly reviewed and updated to align with legal requirements and organizational realities This transparency fosters employee engagement and accountability, ultimately enhancing their commitment to their duties and responsibilities.
The welfare regime at VNPT Tuyen Quang has effectively enhanced labor motivation by providing material incentives and supporting workers' livelihoods However, as the socio-economic landscape and industry evolve, it is essential to adapt the welfare system to align with current realities to sustain and enhance its motivational impact.
2.3.2 Current criteria assessing professional qualifications
Factors affecting the efficiency of human resource use at VNPT Tuyen Quang
In recent years, the economy has encountered significant challenges, including downturns and instability, prompting businesses to balance the need for a skilled workforce with the necessity of reducing labor costs In this context, VNPT Tuyen Quang has primarily concentrated on addressing redundant labor, leading to a notable decrease in new hires This approach has created a limitation in enhancing the quality of human resources within the organization.
The challenging economic climate and customers' limited payment capabilities have compelled telecom operators to consistently lower service prices and implement promotions for competitive advantage This trend has resulted in diminished profits, restricting their ability to raise wages and enhance benefits, which are essential for attracting and retaining high-quality employees.
Tuyen Quang is emerging as one of the most dynamic provinces in the country, attracting significant foreign direct investment and domestic capital Noteworthy projects include the Lo 8B River Hydroelectric Plant and a shoe factory in Ham Yen, which have collectively invested millions of dollars and created numerous job opportunities Additionally, VNPT Tuyen Quang has launched various programs to meet the telecommunications needs of businesses, particularly large enterprises in the region.
* Population and labor force in society According to the General Statistics Office, by the end of 2018, Tuyen Quang had a total population of 813,200 people, of which 84.47% lived in rural areas
Table 2.10: Population size of Tuyen Quang for 2016- 2018
Tuyen Quang province boasts a youthful population, with 70.32% of its residents in the working age, providing telecommunications companies with a significant advantage in accessing a large workforce However, over 80% of the population resides in rural areas, highlighting the challenges and opportunities in leveraging information technology in these regions.
State-owned enterprises like VNPT Tuyen Quang are significantly influenced by government laws and regulations The current legal framework makes it challenging to dismiss underperforming employees Additionally, these enterprises encounter difficulties in raising wages or enhancing employee benefits, as they lack autonomy and must seek approval from relevant ministries and departments.
Since 2005, Vietnam has enacted several key legal documents, including the Enterprise Law, Investment Law, Competition Law, Law on Information Technology, and Law on Electronic Transactions, aimed at enhancing internal resources, facilitating integration, attracting investment, and fostering competition Additionally, the commitments to liberalize the telecommunications market, established upon Vietnam's accession to the WTO, have come into effect.
Enhancing the legal framework for state management of telecommunications and labor management is crucial for achieving consistency within the overall legal system.
The State's previous extensive intervention in telecommunications enterprises has hindered the development of a free and competitive market To align with market principles, it is essential to transition from pre-inspection to post-inspection management in the telecommunications sector Additionally, enhancing transparency and clearly defining legislative activities will enable the State to effectively fulfill its role as a referee in a highly competitive market.
The legal landscape is evolving to enhance business autonomy in production and operations while simultaneously enforcing strict compliance with regulations.
Tuyen Quang is one of the leading provinces in administrative reforms,
Firstly, attracting domestic and foreign investment for telecommunication enterprises to develop infrastructure and telecommunication services
Secondly, facilitating telecommunications businesses to develop
Thirdly, enhancing the provision of information technology and telecommunications services in remote and disadvantaged areas
Tuyen Quang province is actively implementing various policies to reform administrative procedures, enhancing the efficiency of state management and facilitating better conditions for citizens and businesses On November 25, 2016, the provincial People's Committee launched project No 3713, aimed at transforming the operational methods of departments, branches, and district-level People's Committees to boost the effectiveness and efficiency of governance and administration within the Provincial People's Committee.
With the increasingly complete legal system and simplified administrative procedures in Tuyen Quang, it will be a driving force for the operation of VNPT Tuyen Quang
Tuyen Quang is a province with a strong cultural emphasis on education, resulting in a high percentage of professionally qualified workers, which enhances the region's human resource quality However, there exists a prevailing mindset among the local population that discourages manual labor and hard work, while businesses often do not require as many managerial positions.
Children from Tuyen Quang often prefer to seek opportunities in larger cities rather than work in their hometown, particularly those with strong skills and abilities.
Tuyen Quang remains primarily an agricultural province, with a limited professional work style However, the rapid pace of urbanization and the dynamic activities of companies are expected to enhance industrial awareness among the workforce in the near future.
The telecommunications and information technology sector is undergoing rapid transformation, necessitating continuous training and self-learning for professionals to remain relevant and avoid job displacement Engineers and technical workers who fail to stay updated with the latest knowledge risk becoming obsolete quickly This evolving landscape presents a significant challenge for VNPT Tuyen Quang.
In the early 1990s, the postal industry adopted a shortcut policy that propelled it directly from outdated technology to advanced innovations, bypassing intermediary stages As a result, Vietnam emerged as a global leader in the development of post and telecommunications for many years.
Evaluating efficiency of human resource use at VNPT Tuyen Quang
VNPT Tuyen Quang boasts a talented team of managers and skilled technicians, blending experienced professionals with young workers adept in new technologies This dynamic workforce plays a crucial role in supporting the nation's industrialization and modernization efforts.
The management and leadership apparatus of the unit is gradually being streamlined and reduced, strengthening the managerial staff with professional qualifications to achieve higher work efficiency
The Board of Directors prioritizes the enhancement of professional training and retraining for managers through short-term learning programs Recognizing the significance of human resource development, VNPT Tuyen Quang allocates substantial annual funds for training courses aimed at improving the qualifications and skills of its workforce.
VNPT Tuyen Quang has gathered many party members and employees dedicated to overcoming hardships, firmly stepping the company to continue fulfilling the set goals in the coming time
The workforce is undergoing rejuvenation, characterized by healthy individuals who are enthusiastic about learning and open to embracing new scientific advancements and technologies.
VNPT Tuyen Quang always updates the appropriate management methods
At the same time, applying advanced technologies in business management
The professional qualifications and skills of human resources at VNPT Tuyen Quang are continuously improving, aligning with the organization's development goals This positive trend indicates a significant enhancement in the quality of human resources, promising a strong future for the company.
Over 5 years of construction and development (only when separating from Tuyen Quang Post Office), with the creative dynamism of the leadership, VNPT Tuyen Quang has gathered the synergy of collective employees in the unit, always unite to innovate and promote democracy has led the unit to develop comprehensively and become one of the leading enterprises in Tuyen Quang province
In addition to the achievements that VNPT Tuyen Quang has achieved in human resource management, there are still some limitations as follows:
The inconsistent implementation of management functions in human resource development leads to a lack of cohesion among recruitment, evaluation, employment, and training processes, ultimately hindering the enhancement of personnel capacity and qualifications This disconnection negatively impacts the quality of human resource management, as training initiatives are often developed independently from workforce planning Consequently, while the scale of training may increase annually, the expected improvements in skill levels and worker capabilities remain unfulfilled Additionally, there is insufficient integration of scientific research with postgraduate training, resulting in inappropriate training subjects and specialization deviations.
VNPT Tuyen Quang's human resource development policy currently aligns with general regulations for state-owned enterprises, lacking adaptation to the unique characteristics of a provincial-level entity Amidst rapid economic growth and increasing competition in telecommunications, VNPT Tuyen Quang has not proactively addressed the sizing and nurturing of its workforce Recruitment processes are overly rigid, leading to the selection of average candidates due to standardized exam requirements that do not cater to specific job roles Consequently, many civil servants experience minimal improvement in skills and qualifications after promotions, resulting in a mismatch between their capabilities and their salary levels To enhance labor quality, it is essential to classify personnel based on their actual competencies rather than solely on input criteria Therefore, adjustments to the promotion mechanisms should reflect the specific needs of VNPT Tuyen Quang.
VNPT's remuneration policies have made progress, yet they still lack the necessary appeal to ensure job security and motivate employees to enhance their skills There is a significant absence of effective strategies that encourage civil servants to engage in scientific research, which is essential for improving their professional qualifications, boosting research capabilities, and applying scientific knowledge in their work.
Current human resource development policies remain overly administrative and procedural, hindering the mobilization of collective strength There is a prevailing belief that these efforts are solely the responsibility of unit heads and full-time officials Additionally, the policies are inadequate and inconsistent, failing to address the emerging challenges in Tuyen Quang's economic renovation and at VNPT Tuyen Quang specifically Furthermore, VNPT Tuyen Quang has not demonstrated the necessary initiative or proactivity in addressing issues and proposing effective solutions for the Corporation's consideration.
Ineffective human resources management tools hinder the ability to guide, measure, and assess employee qualifications and skills required for specific job roles This absence of support tools leads to inaccuracies in identifying staffing requirements, determining training needs, and evaluating job quality.
The above shortcomings and limitations stemming from both objective and subjective reasons can summarize some of the following main reasons:
The organizational structure of VNPT Tuyen Quang remains inefficient, primarily due to recent fluctuations in information technology telecommunications services While the company has adapted flexibly to meet immediate production and business needs, a more stable and coherent organizational framework is essential for long-term success This structure should clearly define tasks, enhance compactness and efficiency, and serve as a foundation for employee training and performance evaluation, ultimately fostering opportunities for staff to improve their knowledge and skills in their respective fields.
The ideological awareness of human resource development at VNPT Tuyen Quang is currently limited, despite clear perspectives and concrete decisions regarding training, recruitment, and commendation While encouraging mechanisms have enhanced worker qualifications, there is a lack of commitment and responsibility from management at the grassroots level, with the misconception that development is solely the responsibility of the Organization and Personnel Department This has led to a mechanical approach to human resource management, stifling creativity and innovation Additionally, older employees often feel their careers are nearing an end, resulting in a lack of motivation and attachment to the organization, viewing their roles as temporary rather than as opportunities for growth within VNPT Tuyen Quang.
VNPT Tuyen Quang lacks a comprehensive human resource development strategy that includes clear short, medium, and long-term goals, along with actionable steps and specific funding solutions While recognizing the importance of people as the center of development, there is a need for a dedicated strategy for human development Currently, human resource activities align with the broader development orientations of the Group, resulting in predominantly short-term and reactive human resource planning, which fails to integrate effectively into the overall development strategy.
Fourthly, the construction of job description tables for each title has been implemented but has not been completed and has only been implemented for a number of working positions
Currently, recruitment primarily relies on individual input parameters such as qualifications and age, lacking a standardized framework to assess personnel quality effectively Human resource training and development face significant challenges, as while it may be conducted on a large scale, it often fails to target the appropriate audience and lacks a comprehensive training master plan Training programs tend to be short-term and lack professionalism in their organization Additionally, older leaders and managers, despite their valuable experience and enthusiasm, often struggle with foreign language proficiency and information technology, hindering their ability to access essential English materials and professional applications This issue is prevalent in many state-owned companies.
The current remuneration structure, including salary, bonuses, and incentives, lacks fairness and does not adequately reflect the volume, quality, and efficiency of work This inefficiency ultimately fails to motivate employees positively.
PROPOSAL ON SOLUTION TO IMPROVE THE EFFICIENCY
Evaluating the new context and the requirements set for improving the
3.1.1 Context impacts on improving the efficiency of human resource use of VNPT Tuyen Quang
The swift advancement of modern science and technology has significantly reshaped the global economy, marking a pivotal moment in human development and giving rise to a knowledge economy This transformation represents a revolution not only in technology and economics but also in concepts, thinking, lifestyles, work methods, and social relations As production forces evolve from an industrial to a knowledge-based economy, globalization is actively shaping the global knowledge economy.
The global trend of development is an unavoidable reality that captivates nations worldwide Vietnam's economy, especially in Tuyen Quang, is actively engaging with this prevailing trend as part of its growth journey.
In the knowledge economy, scientific and technological knowledge, particularly in high technology, combined with creative labor, emerges as a crucial production force that significantly enhances growth and development This shift indicates that, within the market economy, high-tech labor and knowledge have surpassed traditional resources, labor, and tangible capital, which were dominant in the industrial economy, marking a transition where knowledge resources now play a leading role.
In a knowledge-based economy, intellectual capabilities are the primary drivers of value creation Various economic sectors depend on rapidly advancing knowledge, which plays a crucial role in modernizing and enhancing other sectors This knowledge economy enables the efficient use of natural and social resources, delivering high value at low costs Ultimately, it serves as the engine that revitalizes and propels the entire developed economy forward.
In today's rapidly evolving knowledge economy, knowledge workers play a crucial role in the production process by both creating and applying innovative solutions These individuals not only utilize existing resources effectively but also contribute to the development of new scientific and technological advancements As a result, possessing advanced scientific and technological knowledge is essential for their roles Knowledge workers are highly trained professionals adept at analyzing information and making prompt, efficient decisions that optimize production outcomes.
VNPT Tuyen Quang boasts an extensive telecommunications and informatics network across the province, linking with national units to create a high-capacity, high-speed information highway The telecommunications and information technology sectors are rapidly evolving, driving significant changes in service market structures and network equipment This convergence is reshaping the concept of networks and services, reflecting the ongoing trend of information socialization and its implications for the future.
The evolving landscape of farm economics presents both opportunities and challenges for national development and VNPT Tuyen Quang specifically To thrive amid competition, VNPT must focus on enhancing service quality, operational efficiency, product diversity, and cost-effectiveness This necessitates a proactive and comprehensive development strategy that emphasizes innovation and the modernization of business practices in response to rapid technological advancements and competitive pressures Building a team of experts who can compete internationally and effectively harness new technologies is crucial Additionally, prioritizing the development of a skilled workforce is essential for the safe management and operation of both domestic and international telecommunications projects.
Globalization and international economic integration are essential for every country, particularly for developing nations like Vietnam, which is currently undergoing rapid industrialization and modernization Economic integration enhances access to high-quality goods and services at competitive prices, while also introducing advanced technology, modern management practices, and scientific advancements This process stimulates the country's latent resources, fostering a dynamic economic environment Expanding trade and investment serves as a crucial driver for economic reform, revitalizing the economy and improving the quality of life for Vietnamese citizens As Vietnam becomes more proactive and innovative in its business endeavors, its standing and influence in international trade will continue to grow.
Vietnam's commitment to economic cooperation through ASEAN, APEC, and WTO has established a crucial foundation for its international integration in line with global economic trends However, this initial step presents significant challenges, as the burden of economic integration impacts not only senior leaders but also every industry and business To enhance competitiveness, enterprises must understand both the advantages and difficulties of the integration process, allowing them to implement appropriate and flexible strategies to navigate these challenges effectively.
Like other businesses, regional and international economic integration will bring VNPT Tuyen Quang advantages and disadvantages, namely:
Since Vietnam's accession to the WTO, international economic integration has become a crucial factor in eliminating barriers to development, particularly for Tuyen Quang province In recent years, Tuyen Quang has emerged as a leading destination for foreign direct investment (FDI) The pressures of global integration and competition present significant opportunities for businesses; those that adapt and innovate will thrive, while those that fail to evolve risk falling behind.
VNPT Tuyen Quang is a leading enterprise with an extensive retail network and significant market share, bolstered by a strong brand and numerous foreign partnerships The company boasts a professional and experienced team in international cooperation, which has been instrumental in its renovation and development efforts over the years With robust technological capabilities and financial resources, VNPT Tuyen Quang is well-positioned to adapt to new business environments, enhance its competitive management, and strengthen its business capabilities for successful integration and sustainable growth.
- Competitive pressure of competitors in the field of information and communication in the area is also very strong like Vietel
VNPT Tuyen Quang faces significant challenges as it transitions from a centralized planning environment to large-scale business operations This shift is complicated by a large workforce that is not accustomed to competitive business practices, resulting in uneven qualifications and low labor productivity.
VNPT Tuyen Quang continues to operate its business while effectively providing essential public services, as these functions are inherently interconnected In addition to commercial activities, VNPT plays a vital role in supporting political, security, national defense, and disaster prevention efforts However, the company faces various pressures, both objective and subjective, from larger enterprises, compelling it to adhere strictly to state policies regarding rates and employee regulations during this transitional phase To navigate these challenges successfully, VNPT Tuyen Quang is committed to exploring innovative models and learning from best practices, necessitating a well-defined roadmap for transformation.
VNPT Tuyen Quang operates under strict regulations and oversight regarding pricing and charges, which poses challenges for the company in managing its business activities In contrast, private and foreign enterprises enjoy greater flexibility in setting prices, making investments, and conducting advertising and promotional activities.
3.1.2 Orientation and general targets of VNPT Tuyen Quang
The Tuyen Quang Provincial People's Committee, through Decision No 2054/QD-UBND dated July 18, 2018, has approved the adjustment of the post and telecommunications development plan for Tuyen Quang province, outlining strategic directions for the period of 2019-2025.
- Developing telecommunications synchronously with the development of socio-economic infrastructure of the province
- Developing telecommunications and Internet in the trend of converging with information and communication technology
- Constructing and developing telecommunications infrastructure with modern technology, widespread coverage, speed and high quality
- Universalizing basic telecommunications and Internet services, prioritize the rapid development of new services, value added services to meet social needs and economic development
- Promoting all resources to expand and develop the telecommunication network infrastructure; creating a competitive market and healthy development
- Developing telecommunications associated with the assurance of national security and defense, information security, network security and protection of rights to promote sustainable socio-economic development
Some specific targets are as follows: