Các nhân tố Ảnh hưởng và một số giải pháp nhằm nâng cao chất lượng nguồn nhân lực của công ty cổ phần hisoft việt nam ( bản tiếng Anh).

CÁC NHÂN TỐ ẢNH HƯỞNG VÀ MỘT SỐ GIẢI PHÁP NHẰM NÂNG CAO CHẤT LƯỢNG NGUỒN NHÂN LỰC CỦA CÔNG TY CỔ PHẦN HISOFT VIỆT NAM ( bản tiếng anh)

ĐẠI HỌC THIÊN

FACTORS AFFECTING AND SOLUTIONS TO IMPROVE THE QUALITY OF HUMAN RESOURCES OF HISOFT VIET NAM

JOINT STOCK COMPANY

CÁC NHÂN TỐ ẢNH HƯỞNG VÀ MỘT SỐ GIẢI PHÁP NHẰM NÂNG CAO CHẤT LƯỢNG NGUỒN NHÂN LỰC CỦA CÔNG TY

CỔ PHẦN HISOFT VIỆT NAM

LUẬN VĂN THẠC SĨ QUẢN TRỊ KINH DOANH

2024

ĐẠI HỌC THIÊN

FACTORS AFFECTING AND SOLUTIONS TO IMPROVE THE QUALITY OF HUMAN RESOURCES OF HISOFT VIET NAM

JOINT STOCK COMPANY

CÁC NHÂN TỐ ẢNH HƯỞNG VÀ MỘT SỐ GIẢI PHÁP NHẰM NÂNG CAO CHẤT LƯỢNG NGUỒN NHÂN LỰC CỦA CÔNG TY

CỔ PHẦN HISOFT VIỆT NAM

LUẬN VĂN THẠC SĨ QUẢN TRỊ KINH DOANH

2024

ACKNOWLEDGMENT

I am grateful to Vietnam National University, Hanoi for providing me with the resources to complete this project Finally, I'd like to thank my parents and numerous friends who supported and loved me throughout this long process This project would not have been possible without the support of many people Many thanks to my instructor, Assoc Prof Dr Nguyen Ngoc Thang who read my numerous revisions and helped make some sense of the confusion Also thanks to my committee members, who offered guidance and support.

LIST OF FIGURES vii

CHAPTER 1: GENERAL INTRODUCTION 1

1.1 Research rationale 1

1.2 Research overview on Human resource quality 2

1.3 Research objectives of the topic 7

1.3.1 General objective 7

1.3.2 Specific objectives 7

1.4 Research methodology 7

1.4.1 Data collection methods 7

1.4.2 Data analysis methods 8

1.5 Research scope 8

1.6 Research structure 9

CHAPTER 2: THEORETICAL BASIS ON QUALITY OF HUMAN RESOURCES IN ENTERPRISE 10

2.1 Some basic concepts 10

2.1.1 Theoretical basic of human resources 10

2.1.2 Quality of human resources 13

2.2 Improvement of human resource quality 16

2.2.1 Improving the Human resources quality 16

2.2.2 The need to improve the quality of human resources in IT company 17

2.3 Research models on the influence of factors affecting the quality of human resources 20

2.3.1 Research model of the authors of Dong Nai Technology University and Lac Hong University 20

2.3.2 Research model of the author Tran Manh Truong Foreign Trade

3.1.1 General information of Hisoft 24

3.1.2 Hisoft products and services 25

3.1.3 Structure of organization, management and administration of Hisoft 26

3.1.4 Hisoft’s business situation in recent years 27

3.1.5 The current situation of Hisoft Human Resources 28

3.2 Research design 31

3.2.1 Introduction to the research process 31

3.2.2 Research model proposed by the author 31

3.2.3 Questionnaires developing process 36

3.2.4 Survey form and method of investigation 36

CHAPTER 4: RESEARCH FINDINGS 40

4.1 Descriptive statistics 40

4.1.1 About gender 40

4.1.2 Age 41

4.1.3 Qualifications 41

4.2 Scale reliability testing 42

4.2.1 Cronbach Alpha of the Recruitment factor scale 42

4.2.2 Cronbach Alpha of the Training and development 43

4.2.3 Cronbach Alpha of the Support from leaders factor scale 43

4.2.4 Cronbach Alpha of the Working environment factor scale 44

4.2.5 Cronbach Alpha of the Salary and Bonus factor scale 45

4.2.6 Cronbach Alpha of Human Resources Quality factor scale 45

4.3 Factor analysis and research model verification 46

4.3.1 Independent variable factor analysis 46

4.3.2 Dependency Variable Factor Analysis 48

4.3.3 Results of factor analysis and research model verification 49

4.3.4 Discussion 56

CHAPTER 5: SOLUTIONS TO IMPROVE THE QUALITY OF HUMAN RESOURCES AT HISOFT 58

5.1 Objectives and development orientation of Hisoft from now to 2030 58

5.1.1 Objectives and business strategy 58

5.1.2 Human resources improvement orientation 59

5.2 Solutions primarily raising Hisoft's workforce quality 60

5.2.1 Improve the salary structure and provide diverse kinds of incentives 60

5.2.2 Give additional guidance from the leaders 65

5.2.3 Productive communication and upgrade the physical environment 68

5.2.4 Develop an extensive system for training involving utilizing several methods and clear instructional materials 71

5.2.5 Frequently upgrade the hiring procedure and ensure recruitment efficiency 74

5.3 Recommendations 77

5.3.1 Recommendation to the board of directors at Hisoft 77

5.3.2 Recommendation to Ministry of Information and Communications 78

5.3.3 Recommendation to information technology vocational, training centers, colleges and university 78

CONCLUSION 80

REFERENCES 82

LIST OF TABLES

Table 3.1 An overview of Hisoft's 2019–2022 profit and loss statement 27

Table 3.2 Hisoft employee age statistics from 2019 to 2022 29

Table 3.3 Hisoft employee year experience data from 2019 to 2022 30

Table 3.4 Employee’s qualification statistics of Hisoft from 2019 to 2022 30

Table 3.5 The human resource quality scales 38

Table 4.1 Gender statistics 40

Table 4.2 Educational Statistics 42

Table 4.3 Cronbach’s Alpha of Recruitment factor 43

Table 4.4 Cronbach’s Alpha of Training and development factor 43

Table 4.5 Cronbach’s Alpha of Support from leaders factor 44

Table 4.6 Cronbach’s Alpha of Working environment factor 44

Table 4.7 Cronbach’s Alpha of Salary and bonus factor 45

Table 4.8 Cronbach’s Alpha of Human Resources Quality factor 45

Table 4.9 Scale assessment results of 6 factors 46

Table 4.10 KMO accreditation and Barlett’s Test 46

Table 4.11 Total Variance Explained of independent variables 47

Table 4.12 Rotated component matrix of independent variables 47

Table 4.13 Total variance explained of dependent variable 48

Table 4.14 KMO and Bartlett Test of dependent variable 48

Table 4.15 Component matrix of dependent variable 49

Table 4.16 Correlations between dependent variable and independent variables 51

Table 4.17 ANOVA analysis 52

Table 4.18 Model summary 52

Table 4.19 Regression coefficients 53

Table 4.20 Summary of hypothesis result 55

Table 5.1 Proposed rewards 64

LIST OF FIGURES

Figure 2.1 Framework of Doan Manh Quynh 20

Figure 2.2 Framework of Tran Manh Truong 21

Figure 2.3 Framework of Nair 23

Figure 3.1 The Hisoft structure 26

Figure 3.2 Revenue and profit chart 28

Figure 3.3 The research process proposed by author 31

Figure 3.4 A framework for factors affecting HR quality at Hisoft 35

Figure 4.1 Gender 41

Figure 4.2 Age 41

Figure 4.3 Qualification 42

Figure 4.4 Diagram of regression standardized Residual 53

Figure 4.5 Diagram of normal P-P Plot 54

Figure 4.6 Scatter Plot of dependent variable 54

CHAPTER 1: GENERAL INTRODUCTION

1.1 Research rationale

Human resources are considered a prerequisite for the sustainable growth and success of an organization, industry, and nation High-quality human resources contribute competence, capabilities, and ethical values to the business's core values from every aspect, from company culture to the quality of products and services for customers Well aware of human value, many authors have researched human resources throughout the ages to explore the arising challenges and opportunities in the context of changing socio-economic conditions

The scarcity of IT personnel is always at a high level and has become an enduring problem for the Vietnamese IT market though the salary and benefits of this industry still tend to increase and are somewhat higher than the general level Although nearly 57,000 students enroll in IT majors, the market still suffers from lacking 150,000 to 200,000 programmers annually (TopDev report 2023) Locating high-quality personnel is even the most challenging problem For small and medium-sized businesses, minimizing labor costs is a "survival" goal SME managers tend to favor candidates who are versatile and can handle tasks at an acceptable level rather than excel in a specific field These managers also enhance internal quality through regular training, an effective working environment, or reasonable salary and bonus regimes To stay competitive in the market, improving the quality of human resources is crucial, just like companies investing in personnel and the quality of products to gain customers Therefore, investigate factors that influence this subject

Hisoft Viet Nam JSC is dedicating significant efforts towards raising the caliber of its workforce as the underlying fundament for company affirmation in this competitive industry Working spirit and service quality at work, however, still require development Hisoft directors have grasped the main point of the business and operating situation as well as acknowledged its weaknesses and threats Additionally, they delve into determinants influencing labor quality to take necessary

measures while drawing strengths to seize any business opportunities Thus, the key priority is to build on human resource quality

Based on the current scenario, the author has chosen “Factors affecting and solutions to improve the quality of human resources of Hisoft Viet Nam Joint Stock Company” as the topic for the master thesis The research aims to thoroughly

determine and evaluate the current factors influencing human resources quality and offer viable solutions for enhancing the overall management of human resources at Hisoft Vietnam in the future

1.2 Research overview on Human resource quality

A multitude of research studies from both within Vietnam and abroad have put forward numerous methodologies for Human Resource and measuring Human Resource Quality

a From international studies

Human Resources Quality has been an area of significant interest among HRM writers as evidenced by the works of Costigan (1995), Dawson and Webb (1989), Hill (1991), Hill and Wilkinson (1995), Rosenthal et al (1997), and Viney and Tyson (1997) This is not influenced by the impact of conclusions highlighting the major contribution of “founding fathers” (Crosby, 1980; Deming, 1986; Ishikawa, 1985; Juran, 1989) of quality management toward managing efficient labor Fundamentally, the experts believed that workers are naturally concerned and eager to improve the "quality of the work" they produce They believed this could be achieved by providing them with the required training, resources, and a supportive workplace fostering innovation

(1) “The analysis of human resource quality in improving employees performance: An analysis of external and internal environment” by Saharuddin (2019) considers the importance of human resource elements in the growth and development of an organization Education, health level, and level of income related directly to human resource quality to improve performance The author indicated competence as one of the major human resource quality issues

(2) “Impact of Human Resource Quality and Bureaucracy Behaviour on Organizational Performance Effectiveness” by Samiruddin (2016) The study underlines the importance of employee quality for government management in autonomy Moreover, the author defined the quality of employees as the level of educational background, skills, experience, knowledge, and competencies required to carry out jobs As a result, in order to measure human resources quality, the aforementioned elements must be assessed

(3) “Factors influencing the formation of human resources” by Hunko N (2013) According to the author, the major factor at the level of the microsystem that affects the formation of labor force is the personnel policy of the company The main components of which are: the mechanism of attracting skilled personnel, availability of training, the development of an effective system of remuneration, creating an organizational culture and maintaining a positive climate in the organization

(4) Mba Okechukwu Agwu & Tonye Ogiriki (2014) with "Human Resource Development and Organizational Performance in the Nigeria Liquefied Natural Gas Company Limited, Bonny" has discussed human resource development (HRD) and organizational effectiveness in Nigerian liquefied natural gas companies Human resource development refers to the collective utilization of career development, organizational development, and training and development to improve the effectiveness of individuals, groups, and organizations The study suggests that via enhancing workers' capabilities, attitudes, and manners, HRD practices either directly or indirectly improve business performance The findings indicate a significant positive relationship between HRD practices (training and development), employee commitment/motivation, and organizational productivity in the working environment of the Nigerian liquefied natural gas company

(5) “Development of an instrument to assess human resource quality (HRQ) and measuring the impact of TQM efforts on HRQ using the instrument” by Diviakaran Nair (2005) According to the study, the success of any organization is predominantly determined by the quality of its products and services To accomplish this, the author advises that quality be considered a composite of three main

components: Product quality, Process quality, and Human resource quality Indirect advantages do occur, primarily in the manner of changes in the quality of human resources These benefits are reflected in significant changes across all the determinants of Human Resource Quality The author indicated that the Human Resource Quality Index consists of three indices: the Cultural Change Index (CCI), the Quality of Work Life Index (QWLI), and the Employee Satisfaction Index (ESI) Each index consists of numerous sub-indexes For instance, the CCI can be measured by 5 indicators: (1) workmanship value, (2) employee motivation, (3) management attitude, (4) cohesive workforce, and (5) ability and skill attainment while the QWLI can be measured via (1) orientation and training, (2) communication effectiveness, (3) motivational programs and (4) employee responsibility

b From domestic studies

There exists a plethora of literature, research papers, dissertations, and scholarly articles by Vietnamese researchers that focus on enhancing operational efficiency and optimizing human resource quality and management Some notable studies include:

(1) According to Tien Nguyen's (2020) study on “High quality human resource development approach of Vietnamese government,” human resources of the caliber can be defined as a crucial component of the workforce They embody a vital element of social labor, characterized by educational and professional training, advanced technological proficiency, exemplary labor skills, and creative aptitude Furthermore, these individuals exhibit the ability to adapt quickly and meet practical requirements while utilizing their acquired knowledge and expertise to generate productivity, quality, and efficiency

(2) In “Phân tích các nhân tố ảnh hưởng đến sự gắn bó lâu dài của nhân viên trẻ với doanh nghiệp” research by Do Phu Tran Tinh et al (2012), the research reveals employees' long-term commitment to an enterprise is under the influence of 5 determinants namely Relationship with leadership; Reward and welfare policy; Promotion opportunities; Working conditions and fitness level for career goals

According to the findings, promotion opportunities exert a dominating influence on the employee's decision to stay with the company The research provides actionable strategies for effectively managing human resources within different divisions

(3) “Solutions for the development of high quality human resources in Binh Duong Industrial Province of Vietnam” by Nguyen Minh Ngoc and Nguyen Hoang Tien (2022) The theoretical basis of the article has deeply analyzed the concept of human resources and high-quality human resources As for high-quality human resources, the author has proposed criteria to determine how human resources are considered high-quality: personality, physicality (physical strength), and capacity (including knowledge and skills) The authors also mentioned the concept of human resource development Differing from training and coaching, the authors emphasized that human resource development is a necessary process to transform human resources into high-quality human resources

(4) In the research paper "Macro Factors Affecting Human Resource Quality in Dong Nai industrial parks" by Thanh-Lam Nguyen et al (2019) the authors examined the factors that influence the quality of human resources in Dong Nai industrial parks The research focused solely on macro factors, including the central government, local government, and socio-economic environment The findings revealed that the socio-economic environment significantly impacted human resource quality, followed by the central government Additionally, the education and training system under the central government played a crucial role in improving human resource quality by equipping the workforce with practical skills and knowledge

(5) Manh Quynh et al’s (2017) paper “Determinants of Human Resource Quality in Dong Nai Province, Vietnam” has shed light on issues of workforce quality in Dong Nai province, thereby suggesting policymakers can address to upgrading current policies to enhance the quality of human resources According to statistical research, the province's human resource quality was significantly impacted by four main factors: work efficiency, job competence, leadership support, working environment, and human resource training and development Notably, the study

found that participant demographics such as gender, job experience, or industrial sectors did not significantly impact the evaluation of human resource quality

(6) In the article titled "The Synthesis Problem: Ensuring Quality Human Resources," Dr Phung Ran (2008) expressed concern about the importance of human resources and addressed the crucial issue of human resource quality, emphasizing that a country's prosperity or an organization's success hinges on the skills and qualifications of its workforce Despite implementing national development strategies to improve human resources, a satisfactory solution to this problem has yet to be found Dr Ran's concerns are not limited to a specific period but must be considered in the overall and long-term development strategy of a country, industry, and each agency, organization, or enterprise The author emphasized the significant role of competitive advantage in human resources in a country's ability to develop and keep pace with modern developed countries Sound decisions and strategies must prioritize this critical factor for success

(7) According to Tran Manh Truong (2020) ’s study, “Đánh giá chất lượng nguồn nhân lực tại công ty TNHH một thành viên nhiên liệu hàng không Việt Nam (SKYPEC),” human resource quality at SKYPEC can be measured via seven determinants: Working environment, Training and development, Recruitment, Relationship with management, Relationship with colleagues, Reward policy, Labor encouragement, and Job satisfaction The author evaluated the impact of each factor and proposed effective strategies to enhance the quality of human resources at SKYPEC based on the study analytical data

The issue of human resource quality within enterprises is a well-established concern, as evidenced by the extensive and comprehensive research conducted by numerous authors from various perspectives and socio-economic backgrounds The study provides insight into the development of Human Resources concepts and the enhancement of human resources quality Building upon the previous works and leveraging the current information, this study investigates and evaluates the current state of human resources while capitalizing on their strengths and addressing their limitations

Given the imperative need to enhance workforce quality in enterprises, the thesis focuses on identifying the factors influencing the quality of human resources in Hisoft The study offers practical solutions to tackle the challenge of improving personnel quality in this case

1.3 Research objectives of the topic

1.3.1 General objective

Through theoretical basis on human resources, the thesis delves into the factors that influence the quality of human resources at Hisoft This involves a thorough analysis and evaluation of these factors, thereby enabling the development of effective strategies to enhance the quality of human resources The focus is on improving labor managing methods and the work environment within the company

The research offers some recommendations for Hisoft to focus more on efficient human resources management and implement measures to improve employee engagement and loyalty towards the enterprise

Identify the potential solutions and provide a direction to enhance the quality of Hisoft's human resources

1.4 Research methodology

The following methods were utilized in the thesis to conduct this subject

1.4.1 Data collection methods

a Qualitative research

The qualitative research involved a private session with industry specialists and senior executives about evaluating the firm's state and furnished recommendations for the future The discourse revolved around the importance of human resources as a crucial determinant and pinpointed crucial aspects that impact

their competency This complements the quantitative research that was previously conducted

b Quantitative research

The thesis employs primary data collection through survey research methods This approach is considered the most effective tool for gathering data as it allows us to obtain both the company's perspective and the individual views toward the factors that impact human resources quality The author requested 5 experts and managers from the company to assess the measuring scale, modify it if necessary, and create quantitative questionnaires using the "Likert scale" measurement system, which ranges from 1 to 5 The author distributed 230 questionnaires to 5 IT companies that share similar characteristics, such as size, revenue, workforce scale, and average salary for each level

- Hisoft Viet Nam Joint Stock Company

- FTech Vietnam Technology And Services Joint Stock Company - OWS Viet Nam Joint Stock Company

- Brontobyte Service And Education Technology Joint Stock Company - Ora Tech Joint Stock Company

1.4.2 Data analysis methods

The author employed the descriptive statistics technique to analyze the data collected through tables and charts This allowed for a clearer understanding of crucial data, which forms the basis for assessing the current human resource quality situation at Hisoft

The survey data will be fed into SPSS 29 for regression analysis, which will reveal the factors and levels that impact the quality of human resources Additionally, statistical testing methods were used to compare and determine the degree of variance between groups

Primary data: research, survey from February 2023 to March 2023

1.6 Research structure

There are five chapters in the thesis:

- Chapter 1: General introduction

This chapter offers broad overviews of this topic

- Chapter 2: Theoretical background

This chapter methodizes concepts and studies about Human resources quality, determinants affecting it and the measurement of these factors

- Chapter 3: Research design and methodology

This chapter provides an in-depth overview of the sample used, the analytical framework implemented for exploring relationships between influencing factors and the quality of human resources, and the methods for data collection and analysis

- Chapter 4: Research finding and discussion

This chapter presents the outcomes of the data analysis conducted on the survey figures, and reveals the connection between factors and the quality of the organization's human resources

- Chapter 5: Solutions to improve the quality of human resources at Hisoft

This chapter gives recommendations to better the quality of human resources, enhance employee output standards, and strengthen the company management system

CHAPTER 2: THEORETICAL BASIS ON QUALITY OF HUMAN RESOURCES IN ENTERPRISE

2.1 Some basic concepts

2.1.1 Theoretical basic of human resources

The term "Human Resources" has been widely adopted in many Western and Asian nations since the 1960s It has become a well-established concept worldwide due to its perceived importance in workforce development In Vietnam, this concept has been widely used since the early 1990s and remains prevalent today

The phrase "Human Resources" has many interpretations nowadays based on the methods and perspectives of individual writers Several concepts can be expressed as follows:

As per the United Nations development program, “Human resource is the skill

level, knowledge and capacity of the entire human life, which is either actual or potential for socio-economic development in a given period of time and community" Human resources are the sum of human labor potentials of a country that have been prepared to a certain extent, capable of being mobilized into the country's socio-economic development process This potential includes a combination of a country's physical, mental, and human capacities that are necessary to meet the labor structure of the economy In essence, it is the human potential in terms of quantity, quality, and structure It includes the potential of human fitness expressed through the health status of the community, the level of nutritional response of the society, and the current level of intellectual and technical expertise Moreover, it also includes the ability to acquire knowledge and develop knowledge of human resources Personality capacity is related to the historical and cultural traditions of each country It is crystallized in each person and community, creating the bravery and characteristic character of the working people in the country

According to the International Labor Organization, a country's human

resources refers to all individuals who are of working age The term "Human Resources" is generally understood as sources of labor power available for social production and development

Dr Ta Thi Huong's book, "Quản lý nguồn Nhân lực xã hội" (2008), provides

a comprehensive analysis of social and organizational Human Resources According to the book, social Human Resources are the working-age population of a society, while organizational Human Resources are the individuals employed in an organization, including both executives and staff It is important to note that Human Resources of an organization are distinct from other types of resources, such as political power, financial power, and material power The book also highlights the concept of reserves, which refers to individuals who are waiting to work in an organization Overall, the book offers valuable insights into the critical role that Human Resources play in organizations and society as a whole

Assoc Prof Dr Nguyen Tiep Giáo trình nguồn Nhân lực, Đại học Lao động - Xã hội (2005) defines human resources as "Human resources include people from

the lower limit of working age and above and have the ability to work." This notion describes human resources as a source of workforce for society From another perspective, "Human resources are understood in a narrower sense, including the population of working age who are able to work" refers to the ability to do society's primary labor

Nicolas Henry (2017) posits in his book Public Administration and Public Affairs that human resources are integral to the success of organizations of varying

sizes, types, and functions Capable and possessing the potential to contribute to the overall development of the organization, human resources are resources that encompass both communicative and spiritual elements, ultimately fortifying the organization's capacity and strength for growth within their respective countries, regions, and the world

As per the analysis by Tran Xuan Cau and Mai Quoc Chanh in their book "Kinh tế Nguồn nhân lực" (2008), Human Resources refer to the workforce that can

generate both tangible and intangible assets for the society, quantifiable in terms of quality and quantity at a given point in time Within the enterprise context, human resources are the personnel who constitute the human capital of the organization,

encompassing both the existing employees and the potential recruits that the enterprise seeks to acquire through human resource planning

Approaching from the perspective of economic development, human resources

refer to the population within a certain age range who are capable of participating in labor These resources can be measured in two ways: firstly, in terms of quantity, which is the total number of working-age individuals who are employed according to state regulations, and the amount of working time that can be mobilized from them; and secondly, in terms of quality, which encompasses the health, professional qualifications, knowledge, and skills of workers Meanwhile, labor sources refer to the total number of people of a specified working age who are either currently employed or actively seeking work It's worth noting that there are certain individuals who can be counted as human resources but not as labor sources, such as those who are unemployed but not actively seeking work, those who are looking for work, and individuals within the prescribed working age who are attending school

Approaching from the perspective of political economy, one can comprehend

that human resources refers to the collective physical and mental capabilities possessed by the entire labor force of a given nation This includes the accumulation of tradition and knowledge, as well as the creative output of its people throughout history, all of which have been instrumental in generating both material and immaterial wealth to fulfill the present and future requirements of the country

From the above stated concepts, human resources can be understood assessed in two aspects: quantity and quality

- The quantity of human resources: The calculation of Human Resources for

an organization or enterprise is based on the total number of employed, unemployed individuals, and backup laborers However, it's important to note that the concept of Human Resources only refers to those individuals who are at working ages and are currently employed by the organization or agency The growth of Human Resources is determined by two main factors - internal factors, which include the actual demand for the job that requires an increase in the number of employees, and external factors

of the organization, such as the increase in population or the workforce due to migration

- The quality of human resources: The quality of human resources is reflected

on three elements: mentality, physical strength and mind strength of human resources

2.1.2 Quality of human resources

a Quality definition

According to Nair (2005, p.88), the success or failure of organizations and companies is dependent upon the quality and effectiveness of their employees With the advent of the technological revolution, every organization has been affected and the changing trends make it imperative for employees to adapt to the new scenario This impact necessitates (1) continuous skill development and updates for everyone in the organization, including organizational development professionals, (2) the development of technical problem-solving and decision-making abilities throughout the organization, and (3) the speed, directness, and immediacy of information exchange at all levels within the organization (William M Lindsay and Joseph A Petrik TQ and OD 1997)

An excellent mindset and way of life is one that values quality, where “excellence is a journey, not a destination” (Murthy, D.B.N 2001) Quality can be seen as a reflection of the value that a customer expects in the product or service being offered It's a well-known fact that the success or failure of an organization or company rests on the quality and effectiveness of their employees Successful companies today understand that to compete in the global market, they must have top-notch human resources who actively participate in strategic and operational decisions (Dr Shrif A Mazen and Conceptual design for a strategic human resources quality management system)

Quality is perceived differently in every sector and for each purpose, but there is an internationally recognized definition of quality provided by the International Organization for Standardization According to Article 3.1.1 of the ISO 9000:2005 standard, quality is defined as the "degree to which a set of inherent characteristics fulfills requirements."

b Quality of human resources

In C.Mác VÀ PH Ăng-ghen toàn tập - tập 24 (1993), Karl Marx did not explicitly use the term "high-quality human resources," but he did discuss the importance of qualified individuals who can effectively apply scientific and technological advancements in production These individuals possess a comprehensive skill set and the ability to adapt to the production system in practice quickly

Nguyen Tiep's "Human Resources" (2005) defines the quality of human resources as a multi-dimensional concept that encompasses various aspects of human resource individuals - their health, educational level, technical qualifications, practical knowledge and professional skills, social dynamics such as creativity, adaptability, flexibility, and responsiveness to work and society, willingness to participate in labor, moral qualities, manners, and attitudes towards tasks and working environment, as well as operational efficiency of the human resources and employees' salary, standard of living, and fulfillment with personal requirements (both material and spiritual) It is a dynamic state that reflects the intrinsic attributes and nature of human resources and is always in motion Moreover, it also reflects the degree of economic development of society, as well as the intellectual level and standard of living of the population

According to Assoc Prof Dr Vu Thi Ngoc Phung's book on Giáo trình Kinh tế phát triển (2006), the quality of human resources is determined by factors such as health, knowledge, and capacity This perspective suggests that a person's internal factors are what dictate the quality of their human resources

Nair (2005) also notes that an organization's development is closely tied to the quality of its human resources This development is achieved by aligning individual growth and organizational goals towards corporate excellence (Development by W.M Lindsay P.4)

While there are various definitions, Human Resource Quality is generally considered to be a state of human resources that encompasses physical strength, intelligence, and mental capabilities

* Characteristics of human resources in IT fields

The success or failure of an IT firm is heavily reliant on human resources The personnel characteristics within IT companies are both numerous and complex, requiring meticulous management to foster a productive working environment that encourages creativity, innovation, and growth Below are some key aspects of commonly found IT personnel traits:

In IT, companies look for employees who can easily adapt to change With new technologies constantly emerging, businesses must stay flexible and quickly respond to market shifts An adaptable workforce can better keep up with technological advancements and take advantage of new opportunities

In addition, the personnel of the IT organization must possess exceptional expertise The responsibilities of IT positions involve overseeing intricate systems, scrutinizing vast quantities of information, and developing software programs, all of which demand a remarkable level of technical proficiency The organization deeply values these technological proficiencies, which is why tech companies invest heavily in attracting and retaining skilled employees

Additionally, IT companies foster a distinctive work environment that prioritizes collaboration While staff members may work autonomously, they often join with colleagues to complete projects, necessitating a unified and interdisciplinary approach Hence, the skill to collaborate and communicate effectively across teams is integral

Finally, IT professionals are motivated, proactive, and self-sufficient The nature of the IT business needs personnel who are self-sufficient and capable of working on projects with minimal supervision IT professionals are eager to accept full responsibility for their jobs and complete projects with precision and uniqueness

In conclusion, human resources in IT organizations must be carefully managed due to a variety of factors IT businesses must establish techniques that foster creativity, innovation, and productivity while staffing, retaining, and maximizing employee performance Organizations may get a competitive advantage in the rapidly

evolving technology industry by recognizing the unique attributes of human resources in IT enterprises

2.2 Improvement of human resource quality

2.2.1 Improving the Human resources quality

It is important to have a comprehensive understanding of human resources and to ensure that everyone in the organization shares the same view on how to improve their quality Improving the quality of human resources involves various activities such as training, fostering, and development, which are conducted across the entire organization over a certain period of time with the aim of enhancing workers' performance In this sense, there are three different types of operations involved

First, the process of training helps employees enhance their performance in their jobs by establishing and developing a comprehensive system of knowledge, skills, attitudes, and behaviors for each individual, enabling them to be more productive and effective

Second, the process of education aims to prepare employees for the future by facilitating learning Through a range of activities, education focuses on developing and training knowledge, skills, beliefs, ethics, behavior, and other qualities of employees The end goal is to enable employees to contribute to the organization more effectively

Third, the aim of development is to open up new job opportunities for individuals through organizational re-orientations This involves pairing missing or outdated knowledge, providing additional training, or consolidating professional skills based on specific topics These activities are intended to provide employees with a strong foundation to reinforce and expand their skills, systematically increasing their experiences to perform their work with greater effectiveness Operations and development within an enterprise involve promoting and upgrading technical workers, as well as cultivating the mental capacities of managers and individuals to meet the human resource requirements of socio-economic development at each stage of a country or enterprise's development This contributes to the quality of human resources, which are the direct labor for socio-economic advancement,

reflecting the socio-economic development level of a country, the quality of life of its population, and the level of culture and intelligence within society

Enhancing the quality of human resources is a crucial aspect of human resource development This involves boosting the worth of individuals in terms of their moral character, physical abilities, and intellectual capacities Human resource development policies aim to assist people in attaining enhanced capabilities and qualities to effectively achieve their personal and business objectives

For businesses to thrive, they must prioritize the development of their workforce This means enhancing the quality of the employees within each enterprise through training, support, and opportunities for growth Taking care of both physical and mental well-being is crucial for unlocking human potential Effective recruitment, use of resources, and a positive work culture are essential for maximizing the potential of each employee Additionally, implementing policies and incentives that encourage motivation, ethics, and professionalism can help employees reach their full potential and achieve high levels of efficiency

The following is a brief summary of the ways to enhance the quality of human resources in an organization: Enhancing the quality of human resources within a company refers to the improvement of the physical, mental, and spiritual well-being of employees to meet both workforce necessities and the demands of enterprise growth

2.2.2 The need to improve the quality of human resources in IT company

a From the IT industry perspective

* Facilitate sustainable development of the nation's social and economic

Human resources are undoubtedly the backbone of the socioeconomic process However, resources like material and financial resources are closely tied to socioeconomic growth; only human resources of high caliber are a telling gauge of social and economic advancement Both social and economic progress are reflected in the standard of human resources A highly skilled and motivated workforce is not only the driving force behind the success of a business but also implies a country's level of civilization

Vietnam has the potential to lure foreign companies and investors as the world economy becomes more integrated This presents an opportunity for local organizations to adopt the latest and most advanced technologies To successfully operate these new technologies and leverage advancements in operating systems and manufacturing, it is crucial for both experts and workers to enhance the quality of their human resources This, in turn, leads to increased labor productivity, business expansion, employment growth, and overall socio-economic development The phenomenon aids in advancing labor efficiency, expanding the corporation, stimulating employment opportunities, and promoting socio-economic progress

* Develop a workforce scale and structure aligning with the human resource requirements for the growth of IT enterprises and areas in the country

The IT sector continues to struggle with a severe lack of engineers, as indicated by TopDev's "Vietnam IT Market Report - Tech Hiring 2022." According to the latest projections, Vietnam is expected to experience a significant talent shortage of 150,000 to 195,000 skilled programmers and engineers every year from 2022 to 2024 This is despite the fact that salaries and bonuses for these professionals have seen a notable increase in recent times The deficit arises due to the discrepancy between the programmer's technical expertise and the business's specific demands Of the 57,000 students studying computer technology today, just 35 percent have the skills businesses need

The progression in the quality of the workforce underscores the significance of academic institutions and vocational centers in providing comprehensive training to IT graduates, aligning their competencies and knowledge with the input standards of the enterprise This requires enhancing one's proficiency in foreign languages, particularly English, refining one's soft skills, augmenting one's technical knowledge, and fostering a positive mindset towards technology Proficient students seize more job opportunities, which reduces unemployment rates As a result, the IT sector in Vietnam will experience significant growth with a competent workforce

b From the IT companies perspective

* Adjust swiftly to the evolving circumstances

In the constantly evolving information technology industry, quickly adapting to unforeseen scenarios is required for any successful business The availability of top-notch human resources enables businesses to respond to changes in the industry with agility and stay ahead of emerging trends

* Reinforce the business's advantages over competitors

In IT businesses, organizational obstacles can be addressed by elevating the caliber of human resources This, in turn, facilitates the younger generation's swift adaptation to societal shifts A workforce with high-quality human resources promotes organizational stability, dynamism, collaboration, and employee satisfaction Ultimately, investing in human resources can provide IT companies with a significant competitive advantage, enabling them to stay ahead of the curve in a rapidly changing industry

* Facilitate the adoption of emerging technologies

The sector of information technology is in a constant state of change, with new technologies emerging rapidly To avoid a competitive disadvantage and capitalize on opportunities to acquire modern technology, organizations must focus on improving the quality of their staff Employees must regularly hone their skills and competence to effectively utilize the latest programs and equipment Without mastering these technical advancements, even organizations with ample financial resources and state-of-the-art machinery or equipment may struggle to thrive

* Lower company expenditures

Improving the quality of human resources can lead to an increase in labor productivity, resulting in enhanced output quality, reduced retraining expenses, and greater income retention for reinvestment With access to new technologies, skilled employees can quickly comprehend their operational principles, thereby reducing the need for companies to spend excessively on training or hiring experts to fix any significant errors that may arise from these machines or programs

c From the customers perspective

Having highly qualified human resources is crucial for delivering high-quality products and services It helps companies save time, complete their projects on time and meet their customers' deadlines, which is of utmost importance to them When the quality of human resources is high, customers receive more professional services that meet their expectations The company's expert staff will provide specific consultations to customers, clearly outlining the benefits they can expect from partnering with the company

2.3 Research models on the influence of factors affecting the quality of human resources

2.3.1 Research model of the authors of Dong Nai Technology University and Lac Hong University

Figure 2.1 Framework of Doan Manh Quynh

Factors that affect the quality of human resources in Dong Nai parks are discussed in the article titled "Determinants of Human Resource Quality in Dong Nai Province, Vietnam." The authors evaluated the quality of human resources in Dong Nai parks using four main factors, including Support from leaders, Human resource training and development, Working environment, and Work efficiency and capability

Support from Leaders

Training and Development

Work Efficiency and Work Capability

Working Environment

Human Resource

Quality

The research indicates that when employees receive good support from their leaders, they feel comfortable, confident in their abilities, and tend to improve their skills to contribute more to the company A team of well-trained staff leads to improved knowledge, skills, and working methods, resulting in better job performance Furthermore, a professional working environment that ensures safety, health, effective communication, and teamwork enhances job performance and provides employees with feelings of security, equity, pride, internal democracy, ownership, autonomy, responsibility, and flexibility These factors can improve the mental and physical health of employees and satisfy their need for self-expression, ultimately leading to increased job satisfaction and performance

2.3.2 Research model of the author Tran Manh Truong Foreign Trade University

The evaluation of the quality of Human Resources is based on three primary categories: physical capacity, intelligence, and mental aptitude As a result, studies suggest that the factors influencing the development of human resources in SKYPEC are the work environment, training, recruitment, communication with leaders, relationships with coworkers, compensation and policies, and employee contentment

Figure 2.2 Framework of Tran Manh Truong Working

environment

Labor Training

Recruitment

Interaction with leaders

Employee satisfaction Remuneration and

policies Relationships with

colleagues

Human Resources

Quality

According to the research results, labor training has the most significant impact on the quality of human resources This indicates that the courses offered by SKYPEC have been effective in enhancing the skills and knowledge of the employees Additionally, the employees feel motivated to work better when they receive additional bonuses and benefits for their hard work Hiring employees who are deserving of their salaries will also help reduce internal conflicts related to benefits based on performance This will make new employees feel more confident while working with the company

2.3.3 Research model by Nair, School of Management Studies, Cochin University of Science and Technology

The author indicates several factors that impact the human quality in an organization They are: Workmanship Value (WV), Management Attitude (MA), Employee Motivation (EM), Ability and Skill Attainment (ASA), Cohesive Workforce (CWF), Motivational Programme (MP), Orientation and Training (OT), Communication Effectiveness (CE), Employee Responsibility (ER), Employee Involvement (El), Attitude towards Changes, Grievance Rate (GR), Accident Rate (AR) and Defect Rate (DR) These above factors have been identified by a detailed review of the linkage between Total Quality Management and Human Resources Quality These factors can be grouped under three headings: Organization culture, Quality of Work Life and Employee satisfaction

Figure 2.3 Framework of Nair Workmanship

Value (WV)

Management Attitude (MA)

Employee Motivation (EM)

Ability and Skill Attainment (ASA)

Cohesive Workforce (CWF)

Orientation and Training (OT) Communication Effectiveness (CE)

Motivational Programme (MP)

Employee Responsibility (ER)

Employee Involvement (El)

Attitude towards Changes (AC)

Accident Rate (AR)

Defect Rate (DR) Human

Resources

(GR)

CHAPTER 3: RESEARCH DESIGN AND METHODOLOGY

3.1 Overview of Hisoft

3.1.1 General information of Hisoft

Vietnamese name: Công ty cổ phần Hisoft Việt Nam

International transaction name: Hisoft Viet Nam Joint-stock Company

Address: No 10, Block A, Manor Street 1, Dai Kim Ward, Hoang Mai District, Ha Noi City, Vietnam

Representative: Le Viet Huy Operating date: 2019-07-03 Taxcode: 0108810715

Founded in 2019, Hisoft VietNam Joint Stock Company is a comprehensive provider of information technology solutions and services to customers worldwide Our team upholds the values of ethics, professionalism, and creativity, creating a meaningful and supportive workplace for employees while delivering innovative solutions and exceptional services to our customers We strive to increase value for our customers, shareholders, and the community

Our vision is to bring together like-minded individuals who contribute their knowledge and expertise to lead the field of knowledge business, playing a key role in advancing Vietnam's knowledge economy on a global scale

Our mission is to provide total IT and communication solutions and services with an unwavering commitment to ethical, professional, and creative operations, enhancing value for our employees, shareholders, and community

* Principle of operation of Hisoft:

- Focus on using the potential of IT expertise to help Vietnamese businesses and organizations improve their global competitiveness

- Working together to create success in each project

- Striving to achieve excellence in every task, with the aim of providing IT services of top-notch quality that can effectively compete at a global level

* Hisoft Core Values: “Passion - Agility - Integrity - Excellence - Creativity"

- Passion: Hisoft's main focus is to develop software that brings added value to individuals' lives

- Agility: Adapting to change and responding promptly to market needs and challenges is a quality that Hisoft possesses

- Integrity: Hisoft conducts itself with transparency, honesty, and impartiality - Excellence: Hisosoft is committed to delivering top-quality products and

services, with a focus on excellence in everything they do

- Creativity: Initiative and creativity are highly encouraged and put into practice at Hisoft

3.1.2 Hisoft products and services

Hisoft offers a broad range of products and services:

- Design and develop website,support domain management and hosting services and web-based apps

- Mobile software, web services, design games for operating systems such as IOS , and Android, including widget mobile applications

- Desktop software, which includes desktop applications like Java, WinForm, as well as Window Service, all of which operate on testing equipment and are carried out in accordance with the utility

- Consulting services, mapping solutions (GIS), security services, information management services, and streaming on mobile applications

- Consulting services and the settings of ERP, accounting, e-commerce systems and financial software, and management software tailored to specific business needs

- Manpower rental services in programming platforms like DotNet, FrontEnd, BackEnd, JAVA …

3.1.3 Structure of organization, management and administration of Hisoft

Figure 3.1 The Hisoft structure

The company structure comprises:

- Chief Executive Officer (CEO): is the highest authority in a company and holds significant responsibility in decision-making, resource management, and overall operations The Hisoft CEO's role encompasses various aspects, including marketing and sales, legal matters, human resources, supervising the management teams, and overseeing the Chief Technology Officer (CTO) - Chief Technology Officer (CTO): supervises implementing and distributing

technology solutions to external clients, vendors, and customers to enhance and grow the business CTO involves managing crucial teams including the User Experience (UX), Backend, DevOps, and QAteams

- User Experience (UX) team: plays a pivotal role in determining the success of a product The UX team ensures a flawless user experience, including excellent usability, exciting design, and customer functionality The team comprises several proficient experts who collaborate to achieve the set goals Typically, a UX team consists of: Leader, UX researcher, UX designer, and Frontend developers

Chief Executive Officer

HR team

UX team Backend team Sales

team

Chief Technology

DevOps

Every team member is responsible for a distinct set of tasks A UX researcher, for instance, is in charge of studying user behavior, compiling a thorough report, and sending it to the UX designer The designer commences designing layouts that cater to all the functional and technical aspects of the project The role of a researcher is crucial in creating a design that will satisfy users and contribute to the project's success While the team leader plans and directs the entire group's activities, designers collaborate with developers to set up the necessary interface

3.1.4 Hisoft’s business situation in recent years

The table below presents the business results of Hisoft Joint Stock Company from 2019 to 2022

Table 3.1 An overview of Hisoft's 2019–2022 profit and loss statement

Total Revenue (D)

Million

dong 461,532 1287,874 3534,46 2226,045

Total Cost (F) Million

dong 126,100 1308,303 3380,873 2849,954 Total profit

Figure 3.2 Revenue and profit chart

Source: Financial Report of Hisoft Vietnam Joint Stock Company for the year 2019-2022

Table 3.1 and Figure 3.2 illustrates the sales performance of Hisoft Joint Stock Company over the years The company's revenue witnessed a rapid surge in the initial three years but experienced a decline in 2022 Notably, there was a 279% increase in revenue in 2020 compared to 2019, followed by a 274% increase until 2021 However, sales gradually slowed down, leading to a 37% decrease by the end of 2022 The profit margin of the company has been unstable and continuously fluctuating over the years, which is consistent with the general economic situation during the COVID-19 pandemic This situation has affected small and medium enterprises in particular

3.1.5 The current situation of Hisoft Human Resources

The number of employees at Hisoft by March 2023 reached 48 individuals: - Chief Executive Officer is the topmost executive who oversees the entire

operation of Hisoft and is legally responsible for the company's performance - Chief Technology Officer formulate and implement the company's technical strategy, oversees an organization's research and development activities, as

well as its technological requirements The CTO directly reports to the CEO regarding the current status of projects being handled by the company

- Technology team: 42 employees, The Technology Team strive to lead and innovate in information technology They design and implement highly efficient technology infrastructure solutions, develop and deploy information systems that are optimized for performance, and provide prompt and responsive support services for all information technology needs This team manages Relay’s technology infrastructure and contacts faculty and students for addressing any questions or concerns, whether it be via email, phone, or face-to-face meetings

- Sales: 2 employees, their job responsibilities include building and sustaining strong connections with important clients, serving as the main liaison for all business-related concerns, analyzing market patterns and consumer demands, and adjusting sales tactics accordingly They discover and negotiate new agreements, as well as supervise the renewal of current ones

- HR team: 2 employees, reviewing recruitment software to ensure it meets the company's specific needs, updating and refining current recruiting procedures, working closely with department managers to forecast future hiring needs, remaining up-to-date on the latest labor legislation, and building and maintaining the company's professional network

The company's size has gradually increased since 2019, but it has slightly decreased in 2022; more information can be found in Table 3.2

Table 3.2 Hisoft employee age statistics from 2019 to 2022

The company was established in 2019 with a team of four employees By the end of that year, the organization had grown to 13 employees In 2020, the company experienced significant growth, and the number of employees nearly tripled, especially among those under 25 The number of young employees increased to 31 by 2021 However, in 2022, the company's sales decreased, and the board of directors decided to maintain the number of employees and limit further expansion, keeping the scale of the company the same as in 2021

Table 3.3 Hisoft employee year experience data from 2019 to 2022

Less than 3 years

From 3 to 5 years

From 5 to 10 years

Source: Financial Report of Hisoft Vietnam Joint Stock Company for the year 2019-2022

Based on Table 3.3, the majority of personnel in the company had less than three years of experience during the initial years of operation However, as Hisoft achieved a period of stability in 2021, the company changed its focus to hiring more experienced personnel with three or more years of experience This was done to keep the ratio at 40% and to implement a long-term business strategy In accordance with the limiting expansion and internal quality improvement plan, the percentage of employees with less than three years of experience decreased to 52% in 2022

Table 3.4 Employee’s qualification statistics of Hisoft from 2019 to 2022

Intermediate

Source: Financial Report of Hisoft Vietnam Joint Stock Company for the year 2019-2022

According to Table 3.4, most employees in the company possess a university degree Over the years, the number of university graduates has increased significantly, while the percentage of non-graduates in the workforce has fluctuated, resulting in a decline in their share of the total personnel from 2019 to 2022

3.2 Research design

3.2.1 Introduction to the research process

Figure 3.3 The research process proposed by author

3.2.2 Research model proposed by the author

The research articles by Doan Manh Quynh (2017) and Tran Manh Truong (2020) both indicate that training and development are the most influential factors on the quality of human resources Additionally, in the IT industry, companies also focus on the working environment and equipment related to work progress storage According to Doan Manh Quynh's theoretical basis, working efficiency and capability refer to an employee's ability to work effectively and efficiently (Cowan N, 1997) Nonetheless, recruitment determines the quality of candidates in terms of skills, ethics, and potential for development, which indirectly impacts working

Establish the research rationale

Evaluate relevant studies

Research design and methodology

Assess results and write report

Analyze the data and observation

Design questionnaire and

collect data

Recommend and suggest solutions