A study on factors affecting customer’s loyalty in Phu Thanh investment joint stock company = Nghiên cứu các nhân tố ảnh hưởng đến lòng trung thành của khách hàng tại Công ty cổ phần đầu tư Phú Thành
Urgency of the topic
Establishment and stable development of an enterprise greatly depend on the effective exploitation and use of resources Unlike the other factors such as machinery, equipment, materials, technology, the human factor cannot be bought, learned, and copied Therefore, it can be affirmed that human resources play an essential role in maintaining the stability of an enterprise or economic organization
In Vietnam, according to the Report on Labor and Employment in the third quarter and nine months of 2022 published by the General Statistics Office, the Ministry of Planning and Investment on October 6, 2022, the workforce aged 15 years and over was 51.9 million in the third quarter of 2022, an increase of nearly 2.8 million people compared to the same period last year The labor force participation rate in the third quarter of 2022 was 68.7%, an increase of 3.1 percentage over the same period last year The rate of trained workers with degrees and certificates in the third quarter of 2022 reached 26.3% Among total number of employed workers, worker rate in service sector takes account for the largest proportion of 39.0 %, followed by rate of workers in industrial and construction areas with 33.4%, and workers in agriculture, forestry, and fishery sector accounting for the lowest proportion of 27.6% (Source: Report on employment situation in the third quarter and nine months of 2022 on October 26 th , 2022 by General Statistics Office)
In the construction area, human resources have not met the requirements of both quality and quantity The percentage of workers directly engaged in production through vocational training is still very low, the industrial style has not been improved, etc., leading to low labor productivity, errors in product quality and reduced competitiveness in the international market as well as in the domestic market According to the Statistics Office, the construction sector has about 32% untrained workers, 41% primary qualified workers, and 68.7% workers trained in communes and districts Only 36% professional staffs are trained in the construction sector across the country (Source: General Statistics Office in
2015) It is the human resource limit that significantly affected project implementation, management and planning
Human resource management in an enterprise is to attract, build, develop, use, evaluate and retain a workforce that meets the needs of human resources in the enterprise both in terms of quantity and quality Although, human resource management is a deep-
2 seated activity inside the enterprise, it plays a crucial role and is a decisive factor in the achievement of business strategic goals of the enterprise At SHP Quang Ninh Co., Ltd., the recruitment of qualified, skilled, loyal employees for long-term strategic goals is one of the major focus of the Company‟s leadership
Recognizing the importance of human resource management at an enterprise, with the desire to partly contribute to the efficiency of the company‟s workforce, I decided to choose topic of “ Completing the human resource management strategy at SHP Quang
Ninh Company ” as my master thesis in business management.
Research overview
World research on the thesis topic
In the human resource management, in order to get a team of qualified and talented staffs for enterprises and organizations, in addition to on-the-job training, talent attraction is essential and important for all employers over the world In order to attract qualified and skilled employees, business managers need to have different orientations to build and develop human resources depend on their own conditions
Some typical authors such as Peter Boxall and John Purcell (2011) who wrote “Strategy and Human resource management” or “Theoretical Perspectives for Strategic Human Resource Management” written by Patrick M.Wright and Gary C.McMahan These studies all agree on the importance of developing and implementing a human resource strategy in the organization in general However, these studies lack in-depth analysis on strategic characteristics of each specific type of organization
The doctoral thesis by Cecilia Maria Schultz (January 2009) on “Building a strategy of competitive human resources in Tshwane University of Technology” has pointed out the lack
3 of competitive human resources at Tshwane University of Technology From that, the author built a strategy of competitive human resources for Tshwane University of Technology with major focus on business knowledge and human resource implementation, personal skills (professional), management skills (management of change, culture, relationship, information systems, and finance) However, the strategy proposed by the author is only at the university where the staffs and teachers are highly and evenly qualified, hence, it cannot be applied to other areas
Author Matthew R Allen (2006), Cornell University has conducted a research on
“Strategic management of human resources in small and medium enterprises” This research topic has developed the theory on how the human resource management system contribute to the success of small and medium enterprises Based on the theory of human resource management strategy and business activities in small enterprises, the author has shown that a good human resource management system will make a positive impact on performance of enterprises, especially of small and medium enterprises The author also mentioned about three issues in his research, that were impact of human resource strategy management on the enterprise performance; related benefits from choosing small and medium enterprises for the research; and conclusions drawn in the strategic management of human resources in small and medium enterprises
The research topic “Strategic human resource management: what does it mean in practice?” by Ken Lovell (2009), Southern Cross University- a professional expert in the field of construction He has carried out in-depth research on analyzing how theories of human resource strategy to be deployed and applied in practice in the field of construction Specifically, the author has focused on human resource management strategy at two large construction companies NatBuild and MechCon in Australia (for example: Remuneration, career development, performance management) and human resource management practices of these two companies (for example: training and development, work efficiency evaluation, selection and recruitment, remuneration and compensation, creativity) Based on that, the author compared the survey and evaluation results between the two companies and set out the main functional framework of human resource management that is Job design and analysis - Selection and recruitment - Performance management - Training and development – Compensation to give managers in general and future managers in particular a closer look at reality
Domestic research on the thesis topic
Lots of research have been conducted on the topic of improving or developing human resource strategy and measures to improve human resource management efficiency in Vietnam as followings:
Scientific research project at ministerial level “Developing a strategy for human resource development in Vietnam‟s leather and footwear industry for the period to 2015, vision to 2020” by Phan Thi Thanh Xuan (2014) The thesis deeply analyzed the actual state of human resources of Vietnam‟s leather and footwear industry, mainly unskilled labor force Based on that, the author has proposed a number of human resource development strategy solutions to focus on improving education, skills and remuneration for employees, policies to attract skilled workers, and solutions for social security
The above-mentioned scientific works have shown a key role of human resource management strategy to organizations and enterprises, especially in the current stage of market economy development towards integration and globalization However, no studies on construction human resources in small and medium enterprises have been carried out until now
Therefore, it can be affirmed that my master thesis of “ Completing the human resource management strategy at SHP Quang Ninh company ” is a new, urgent topic, with no overlap with other topics My thesis focuses on basic and systematic issues of developing a human resource management strategy for SHP Quang Ninh Co., Ltd., in order to find out an appropriate method to effectively use and promote human factor for the company sustainable development It becomes more essential especially in the current stage of globalization and integration - an inevitable trend with both opportunity and challenge, along with strong development of urban areas and tourist areas, etc Development and completion of human resource management strategy are decisive for the enterprises‟ strong development and strengthening their brand and reputation During the research process, I also use the results and findings of previous studies to complete this thesis.
Purposes of the research
This research aims to propose solutions to complete the human resource management strategy at SHP Quang Ninh Company The followings are specific objectives of the thesis:
1) Evaluating the current state of human resource development of SHP Quang Ninh Co., Ltd
2) Analyzing factors affecting human resource development of SHP Quang Ninh Co., Ltd
3) Proposing solutions to complete strategy of human resource development of SHP Quang Ninh Co., Ltd.
Research mission
- Overview of theoretical issues of human resource management
- Evaluating the current state of human resource development of SHP Quang Ninh Co., Ltd
- Proposing solutions to complete strategy of human resource development of SHP Quang Ninh Co., Ltd to the year of 2030.
Objects and contents of the research
- Objects of the research: Factors influencing strategy of human resource management, actual state of human resources and policies on human resources of SHP Quang Ninh Co., Ltd
+ Location: SHP Quang Ninh Co., Ltd
+ Time: Data on human resources of SHP Quang Ninh Co., Ltd from 2020 to 2022, developing strategy of human resource management towards 2030.
Method of the research
- Type of research: qualitative, descriptive, and statistical research
- Method of secondary data collection
+ Collecting information and data from General Statistics Office, HR Administration Department, Sales Department, and Finance Department of SHP Quang Ninh Co., Ltd
+ Primary data: The interview method by questionnaire is used to collect information on production and business activities, policies, and sanctions being applied in the field of human resource
- Data processing method: by Excel
Contributions of the thesis
- The research shall be a practical assessment of human resource management at SHP Quang Ninh Co., Ltd., for Board of Directors to better understand their company‟s human resource management
- Proposing solutions to improve the efficiency of human resource management at the company by 2030
Thesis structure
The thesis consists of three main chapters:
Chapter 1: Basic theories on human resource management strategy
Chapter 2: Strategy of human resource management of SHP Quang Ninh Co., Ltd Chapter 3: Proposal of solutions to complete human resource management strategy at SHP Quang Ninh Co., Ltd
BASIC THEORETICAL ISSUES ON HUMAN RESOURCE
Basic theory of human resource management strategy
According to WB World Development Indicators - London: Oxford, 2000 The United Nations defines “human resources as the actual skills, knowledge and capabilities along with the abilities that exist in the form of human potential” This statement is made based on the analysis results of the globalization effects on the workforce Concept of human resource in this research direction is somewhat biased towards the quality of human resources This concept appreciates the use and management of human resources based on the assessment of the potential and capacity of employees
(Nicholas Henry, 2007) defines: “human resources as human resources of organizations
(with different sizes, types and functions) that have the ability and potential to participate in the organization development along with socio-economic development of countries, regions and the world” The concept was introduced by Nicholas Henry on the basis of analyzing material and spiritual aspects of the workforce to ensure set job targets
Nick Moore Manpower planning in libraries – London: Library Association, 1980 scientists participating in the KX-07 program came up with the concept “Human resource is understood as the number of people and the quality of people, including physical and mental, health and intellectual, capacity and quality” It can be seen that human resources will include the quantity and quality of labor resources From different angles of approach, the authors conducted research and came up with different concepts of human resources However, the common point of the concepts of human resources are the criteria of quantity and quality of human resources
- Human resources in business organizations
Workforce is considered a key resource in the process of completing targets and plans of an organization If an organization wants to innovate, each individual from direct production worker to leader and manager have to innovate their activities and tasks
For an enterprise/organization, human resources include members involved in the
8 development and implementation of business strategy activities Specifically, human resources of an enterprise are the total number of employees and the quality classification of employees according to the required qualification of each job position
Labor structure of each enterprise can be classified in criteria such as gender structure, age structure, qualification structure, etc A reasonable labor structure must ensure quantity and quality of the staff to match the needs of the production and business plan
Model of the Company‟s human resource system depends on size, specialization level of business production and is assessed according to the nature, requirement of each job position and specified production process Quality of human resources also depends on technology application in business and production
- According to Mathis & Jackson (2007), human resource management is to design official systems within an organization to ensure performance and effective use of human talent for the organization goals
Strategy is the concept first used in military field, as a battle tactics and command method According to (Carlvon Clausewitz.XIX), strategy is “war planning and combat operations planning Those campaigns will determine the participation of each individual”
In business, managers also use this concept in the way that strategy is understood as an effective use of enterprise resources including human, material, and intellectual resources to complete the plan with the best results and minimize risks in the process of plan implementation of organizations and enterprises
Besides, (Faulkner; Johnson.1992) introduced concept that “How strategy is concerned with an organization's long-term directions and goals position itself in the business environment of its competitors Furthermore, it also involves in identifying sustainable competitive advantage, not only in terms of technique but also in terms of long term”
If research is analyzed from different aspects, each research presents a different concept but can be understood in a common way of role and need; strategies are the way to implement effective use of resources, make the most of the advantages to achieve the overall goals of the organization In this study, strategy is the determination of the organization goals to choose the ways, operation lines and policies to appropriately use and allocate resources to achieve such goals
(Mile & Snow.1984) introduced the concept: human resource management strategy is "a system of human resources to meet the needs of business strategy"
The above concept is in the direction of describing human resource management strategy towards conformity, in which HRM is identified as the first task for enterprise to build an effective business strategy
(Armstrong M; Baron A 2002) defined concept of Human resource management strategy as “a key for enterprise‟s improvement” This key will open a door for enterprises to orient their operation method and effectively use labor force, and thereby flexibly response the market changes Excess labor increases labor cost, thereby increasing product cost, and lacking required labor force both in quality and quantity All these factors shall negatively affect performance, slow down the progress and make the enterprise miss their business opportunities
In this research, human resource management strategy is analyzed on the following basis: “Human resource management strategy is understood as a system of policies and employee use activities designed for specific employee or work group within an enterprise to get the highest performance from business strategy implementation”
Figure 1.1 Interactions between human resource management strategy and business development strategy
(Source: Human Resource Management, Tran Kim Dung, Education Publishing House, 2001)
- Relationship between “Business development strategy” and “Human resource management strategy” in an enterprise
Through the above figure, we can see that human resource management strategy and business development strategy exist different interactions creating different efficiency of strategies
+ Human resource is considered an important resource of business strategy, an advantage and main driving force of business strategy formation – Level B
+ On the basis of business strategy, develop an appropriate human resource management strategy to increase the effectiveness of the business strategy - Level C + Human resource management strategy plays a key role and develop an appropriate business strategy basing on human resources for an effective operation– Level D
+ The bilateral relationship between the two strategies – Level E
Human resource management strategy is evaluated as an effective strategy if it is developed on the following relationship:
Figure 1.2 Relationship between human resource management strategy and business strategy in an enterprise
(Source: Human resource management, Tran Kim Dung, Education Publishing
Overview of SHP Quang Ninh Co., Ltd
2.1.1 Foundation and development of SHP Quang Ninh Co., Ltd
SHP Quang Ninh Co., Ltd was established in March 2018, at Lot E11, Group 3, Zone
7, Bai Chay Ward, Ha Long City, Quang Ninh with main business activities including:
- Investment, design, construction of civil - industrial works, urban technical infrastructure
- Construction of civil, industrial, road traffic works
- Investment projects and cost estimates planning
- Design verification, construction quality inspection
- Consulting on civil and industrial construction
Vision: Developing SHP Quang Ninh Co., Ltd into a leading construction company in Vietnam
Mission: SHP Quang Ninh Co., Ltd is committed to providing customers with products completed on schedule, with quality assurance in terms of technique, art and high safety
- Always put the interests of customers and partners first
- Take the standard to create quality
- Take prestige and quality as a measure of brand value
2.1.2 Organizational structure of the Company
Figure 2.1 Personnel and organizational structure of SHP Quang Ninh Co., Ltd
(Source: Accounting - Administration Department of SHP Quang Ninh Co., Ltd)
Company’s director: The director‟s role is to perform the responsibilities and duties of the head, to be responsible for directing and managing all aspects of the company's activities in accordance with the regulations on functions, duties and powers of the Director of the company; to orient and direct market research and development, financial and accounting management, business orientation and strategic management
Administration and accounting Department: Its function is to handle all cash flow and revenue and expenditure issues such as paying salaries to staff, purchasing raw materials, creating a welfare fund, a hedge fund, and paying for insurance for employees, tax accounting, etc Regarding the accounting department, there is also an administrative department whose role is to recruit, monitor and manage human resources
Design consulting Department: Its function is to provide ideation, design and work with customers to have the most optimal drawings which are the basis for future project implementation and monitoring
Technical Department: This department is responsible for realizing the ideas of the design department into a complete project This department requires a relatively large
32 number of personnel Other departments contributing to maintaining company operations include inspection teams, construction teams, etc Their duties are to perform specialized tasks assigned by superiors, ensuring completion of the work schedule
2.1.3 Business results of SHP Quang Ninh Co., Ltd
- Since its establishment, SHP Quang Ninh Co., Ltd has mainly focused on construction activities of civil - industrial works, urban technical infrastructure, road traffic Vietnam is located in an area with high growth rates in the region and the world, so in the process of development, our country needs to build many works and infrastructure to call for foreign investment This is the context for construction to develop In order to exploit this business opportunity, the company has prepared production factors such as buying more machines, etc to serve and increase production and business capacity for the company in order to increase income for employees and solve job problems for workers The projects that SHP Quang Ninh Co., Ltd have completed are mainly small and medium projects of not too high technical characteristics This is consistent with the company„s size, technical level and skills of the staff However, SHP Quang Ninh Co., Ltd is also trying to expand its scale and improve its qualifications to be able to take large and high- tech projects
Table 2.1 The company's production and business results from 2019 to 2021
(Source: Accounting - Administration Department of SHP Quang Ninh Co., Ltd)
Comment: It can be seen from the above table that:
+ The company's revenue in 2020 increased by 31.12% compared to 2019, in 2021 increased by 15.37% compared to 2020
+ The company's expenses in 2020 increased by 41.17% compared to 2019, and in
+ The company's net profit in 2020 increased by 63.08 % compared to 2019, in 2021, increased by 49.96% compared to 2020
The company's revenue and profit increase continuously in 2020 and 2021 which shows that the company's market has increased, but the increase in 2021 is not equal to
2020 due to the impact of the covid-19 epidemic which affected severely the economy growth of Vietnam, especially the service, tourism, construction industries The rapid increase in the price of construction materials has a negative impact on the company's operations due to the increase in construction costs, leading to an increase in the cost, resulting in the fact that customers must consider financial difficulties for all construction plans Especially, the construction industry has its own characteristics, even if the Covid-
19 epidemic is under control, it cannot recover immediately because it still depends on the market, investors need time to implement investment procedures, arrange financial resources and rearrange work activities
In fact, the competition is increasingly fierce due to many businesses jumping into the industry in addition to difficulties in competing with contractors and partners, a current reality is that human resources in the field of construction in the market is also one of the fierce competition issues SHP Quang Ninh Co., Ltd is a small business so the urgent requirement of the company is to build a human resource management strategy suitable to the size, potential and business strategy of the company, to step by step leading the company to develop in accordance with the law and the development trend of the times
The current situation of human resource management of SHP Quang Ninh Co., Ltd
2.2.1 Factors affecting the formation and development of human resources of SHP Quang Ninh Co., Ltd
Laws and policies of the state
The law also affects human resource management, binding the company in recruiting and treating employees: requires a good resolution of the labor relationship Changes in social insurance and health insurance premiums as well as regional minimum wages over the years have been affecting the development of the Company because the higher the premium level, the more the company's finance is affected Therefore, the company need to grasp and handle well all regulations on tax, social insurance and health insurance regimes for employees
Labor Code No 45/2019/QH14 issued on November 20, 2019, officially effective from January 1, 2021 stipulates labor standards, rights, obligations and responsibilities of employees, employers, employee representative organizations and employers' representative organizations in labor relations and other relationships directly related to labor relations, state management of labor At the same time, the laws related to insurance, wages, occupational safety and health are also regularly revised by the government to suit the development of the economy
Besides, since 2019, in the context that production and business activities are adversely affected by the Covid-19 pandemic, the Government has issued many policies to support enterprises to overcome difficulties, including many regulations related to human resource management such as: Suspension of payment of social insurance to the retirement and survivorship fund; delay the time of paying trade union dues; enterprises are allowed to borrow money to pay wages to temporary suspension of working for employees, etc These policies have partly supported businesses to tackle difficulties to continue business activities, maintain jobs, and generate stable income for workers
Economic and social development situation
During the period of rapid economic growth, the company needs to expand its operations At that time, the human resources in the company often expanded in scale, increased direct production labor force and reduced indirect labor to match the company's
35 production activities During difficult economic period, resources tend to focus on restructuring and developing in-depth to create new vitality The company has also implemented a policy of retaining skilled and skilled workers so that when there are new opportunities, they will be ready to expand business activities Depending on the development situation, the company applies to reduce working hours for workers, temporarily lay off work or reduce welfare regimes Specifically, in 2019 the company received a number of relatively large bidding packages, so the demand for labor also increased (in 2018 there were 69 employees, in 2019 it increased to 132 employees) But by 2020 due to the impact of the Covid-19 epidemic, the economic situation declined, the company was very difficult to receive contracts for large projects so the company reduced the number of employees to 120 people due to the lack of job arrangement for workers Thus, SHP Quang Ninh Co., Ltd has grasped the economic development situation to make appropriate labor adjustments in order to ensure the revenue of the business, maintain the operation and development of the company
The development of science and technology requires equipping employees with new knowledge which increases training costs and time
For workers who directly produce products, most of them are unskilled workers, some technical workers are recruited from colleges, professional intermediate schools and technical workers trained in electricity, construction, etc The mechanic then returned to the company to continue training to meet the job requirements, so it costs a lot of money and training time Like many other businesses, SHP Quang Ninh Co., Ltd has invested in more modern machinery and equipment as well as enhanced training and retraining so that employees can improve their skills and catch up with science and technology Due to limited financial resources, the invitation of experts to come to the company to guide employees was still limited, mainly by taking workers to the place of production so that they can learn as well as receive specific instructions on how to operate to serve the job
On the other hand, rapid development of science and technology is also a challenge for the company's human resources Engineers and workers may not be able to master advanced technology due to inadequate and timely training
The situation of population development with an increasing labor force, abundant
36 and qualified human resources is also an advantage for the company in recruitment, to help reduce training costs for new employees as well as to open more breakthrough development prospects for the company's human resources It is necessary to have a suitable recruitment policy to be able to attract quality human resources to ensure the company's business In 2019, the company recruited more than 63 employees to serve the expansion of production and business However, at a time when the supply of human resources is limited with low quality, while the labor market is not fully developed, the company also faced many difficulties in finding and recruiting qualified human resources
The international integration creates not only lots of advantages but also pressures for the development of the company Due to the competition in price as well as the quality of construction works, the company had suitable production and business strategy, innovated construction architecture, provided models diversification, adjusted prices appropriately to be able to compete with domestic and foreign competitors Meanwhile, deep integration brings opportunity for the company to approach many management models, develop human resources, create a premise and experience in improving the management model, improving efficiency in the development of company's human resources
With the right awareness of the role and importance of human resources, at SHP Quang Ninh Co., Ltd, human resources are considered by the company's leaders as the core factor, deciding all the success of the business A team of creative and quality personnel can help the company stand firm in the fiercely competitive market Therefore, the company's leaders soon considered the training and development of human resources as the key issue should be a top priority In particular, the company has also applied policies focusing on people and attracting talents and changed the welfare packages to promote employee morale in the context of the new market, helping the company grow much stronger
2.2.2 Characteristics of human resources of SHP Quang Ninh Co., Ltd
SHP Quang Ninh Co., Ltd is also directly affected by the labor market as well as the
37 specificity of production and business of the company Therefore, the number of employees also changes over the years
Figure 2.1: Number of direct and indirect employees from 2018 to 2021
(Source: Accounting - Administration Department of SHP Quang Ninh Co., Ltd)
In 2018, the company had a total of 69 employees, by 2019 the number had increased to 132 employees, but by 2021 this number decreased to 120 employees This decrease is mainly in direct workers due to the impact of the covid-19 epidemic which caused lots of difficulties to the company's business activities resulting in decreased number of employees to match with the company's business activities
Table 2.2: The company’s labor structure by gender
(Source: Accounting - Administration Department of SHP Quang Ninh Co., Ltd )
Number of employess from 2018 to 2021
Số lượng lao động làm việc trực tiếp (người)
Số lượng lao động làm việc gián tiếp (Người) Tổng (Người)
Figure 2.2: Labor structure by gender at SHP Quang Ninh Co., Ltd
(Source: Accounting and Administration Department of SHP Quang Ninh Co., Ltd)
The total number of employees in 2018 of the company was 69 employees, in which the number of female employees was 25, accounting for 6.23%, the number of male employees was 44, accounting for 63.77% There was a gradual increase in the proportion of male employees over the years, specifically in 2021, there was a total of 120 employees, including 38 female employees, accounting for 31.67% and 82 male employees accounting for 68.33% Thus, in terms of gender structure, the number of female employees is much lower than that of male employees According to job characteristics, the number of male employees is higher because SHP Quang Ninh Co., Ltd is a company operating in the field of construction, with 100% of the workers in the engineering, design, inspection teams so direct workers of main worker level are required to be men to meet the job requirements, whereas female employees mainly take on the job positions such as accounting, administration, maintenance and housekeeping This structure is consistent with the business characteristics of SHP Quang Ninh Co., Ltd
According to statistics of the Accounting - Administration Department, the age structure of the company by December 31, 2021 is as follows:
Table 2.3: The company’s labor structure by age
(Source: Accounting and Administration Department of SHP Quang Ninh Co., Ltd)
The table 2.4 shows that the change in personnel in general and the change in the age of employees from 2018 to 2021 was not much due to the impact of the Covid-19 epidemic, the production and business plan from 2019 to 2021, there is a relative decrease, although the company has made efforts to maintain stable operations to ensure jobs and income for employees, but still cannot maintain a sufficient number of employees, 100% of employees who have been suspended from work are auxiliary workers aged between 41 and 50 years old In addition, the company does not employ people under working age and people who are over working age
Figure 2.3: Working age at the company from 2018 to 2021
(Source: Accounting and Administration Department of SHP Quang Ninh Co., Ltd)
Looking at the chart above, it can be seen that the majority of the Company's employees are young workers The labor structure in the Company is a combination of the dynamism and enthusiasm of young workers aged from 18 to 30 years old and a group of employees who have attained a certain maturity in their expertise with ages from 18 to 30 years old 30 - 50 years old The structure of young workers from 18-30 years old accounts for 24% in 2018 and lightly donates to 24.17% in 2021 With dynamism, enthusiasm, good physical strength at this age is an advantage to The company trains and caters for the current business plan and selects the core elements to move towards long-term cooperation in management positions of the company The group of workers from 31 to 40 years old will account for the highest 44.33% in 2021, this is the working age group that has reached a certain maturity in terms of expertise and tends to need a stable job to stick around for a long time long
* Structure of labor by professional qualifications
Construction industry has become a spearhead economic sector of Vietnam when the country enters a period of renovation requiring more civil, industrial, and commercial construction works Therefore, the demand for human resources construction industry in the near future will be very large In order to adapt and develop stably in the current conditions, the Company not only sets a target on the number of employees but also aims to improve the quality of human resources to meet the requirements of the industrial
41 revolution 4.0 in the new era
Table 2.4: The company’s labor structure by qualification
Classification of labor by qualification
(Source: Accounting and Administration Department of SHP Quang Ninh Co., Ltd)
PROPOSED SOLUTIONS TO COMPLETE HUMAN
Viewpoints, goals, and directions for human resource development of SHP
Human resources are the leading factor in the development and existence of the Company Being well aware of the above problem, the Company always focuses on its human resources and considers it the most valuable asset that brings success to the Company Developing good policies for human resource development is one of the top priorities
In the coming years, the Company will recruit qualified and experienced employees and strengthen professional training for employees, providing good working conditions and timely reward system for employees and departments with excellent achievements, initiatives and profits for the Company in order to encourage employees to maximize their capacity
Perspective 1: Human resource development must be understood and agreed to by employees and leaders Human resource development The company needs to attach importance to the following principles:
Human resource development must be considered as an important content of the Company's development strategy
Developing a human resource development strategy based on the actual conditions and operating environment of the organization and the implementation of that strategy must be ensured by the commitment of the whole organization
Perspective 2: Human resource development must be a unified combination between personal capacity improvement and enterprise development
Clearly defining individual responsibilities in developing their own capacity, the progress of each individual and the development of the organization have a dialectical relationship with each other
Human resource development is not a one-way activity of leaders or individual wishes, but must be based on the principle of respecting individual needs and the unity of
62 the organization, that is: all members in the Company are equal and have the ability to develop continuously; each member has its own values, so each employee is an individual different from others and is equal in developing personality and professional qualifications They are all equal in contributing to the promotion of wisdom and initiative for the common goal; the interests of the members and the operation objectives of the Company are linked together, ensuring the harmony between common interests and private interests; Human resource development is the best profitable investment for the organization, because training and developing highly capable, professional people is the shortest path for the innovation and development of the Company
Taking the point of view of quality and efficiency as the basic criteria and governing the contents of human resource development, recruitment, use, evaluation and training, oriented towards the development principles and goals of the Company
Perspective 3: It is necessary to focus on improving the quality of human resources not only in the immediate future but also in the future Accordingly, human resource development not only serves the implementation of immediate goals, but also ensures the overall inheritance of the organization, career development, and personal development
Perspective 4: Human resource development needs to be carried out synchronously and methodically in all aspects of work Ensure maximum effectiveness of development values At the same time, minimizing the possibility of one side of the work being weak, causing chain consequences to other aspects of work
To meet the goal of production and business development, human resource development is the top goal According to the production and business objectives, human resources will gradually increase over the years in both quantity and quality
Developing human resources to ensure sufficient quantity , quality and structure suitable to the Company's objectives and strategies in each defined period In particular, focus on developing a team of high-quality , dedicated and ethical human resources
Taking care of and ensuring the material and spiritual life of employees Develop a variety of effective motivational measures Building a cohesive, sharing and understanding labor collective
In the coming time, SHP Quang Ninh Co., Ltd will have a direction towards the plan
63 and needs of human resource development, focusing on recruiting high-quality skilled labor In parallel with recruiting more, there is a policy to train old employees to ensure the goals of production and business activities
Table 3.1: Plan of organizational structure and number of employees of SHP
Quang Ninh Co., Ltd to 2030
Support (Receptionist, housekeeping, maintenance, environment, security, driver)
(Source: Accounting - Administration Department of SHP Quang Ninh Co., Ltd )
It is expected that in 20 30 , the total labor size will increase by 80 employees compared to the current labor size Education level has also been improved specifically: leaders of departments have university degrees or higher in the right majors
Raise the level of workers, attract technical workers with high skills, meet the task of construction of works with quality requirements
In addition, it is necessary to complete the operational organizational structure model with a clear delineation of functions and duties between positions, departments, departments and divisions Step by step research to establish and deploy new human resource development platforms at the Company in a general direction
Human resource development needs to create a fundamental transformation in terms of quantity, quality and suitability of human resource development structure, meeting the company's long-term production and business requirements
In the coming years, SHP Quang Ninh Co., Ltd is expanding its business scale , specifically the Company expands its market to the Eastern districts of Quang Ninh
64 province, neighboring provinces such as Hai Phong and Hai Duong _ Since then , the Company strives to build a high-quality design-consultancy team, offer designs that meet the requirements of a variety of partners, creating a competitive advantage strong strong above market school _ existing and new markets
Based on the requirements and tasks for the Company to survive and develop, while completing the tasks of production and economic development, step by step improving the lives of employees, the Company advocates a plan of steps to take for each specific stage The Company's business development objectives must meet the following criteria: Developing the economy on the basis of promoting the Company's advantages in terms of technical and material foundations, gradually increasing the income of employees, enriching the collective and making more and more contributions to the State
Striving to gradually reduce product costs, improve product quality through the application of science and technology, effectively use human resources, seek partners to provide reputable input materials with competitive prices thereby enhancing the Company's position and competitive advantage in the market.
Solutions to complete the human resource management strategy of SHP Quang
3.2.1 Strategic planning, planning and human resource development plan force
In the coming time, on the basis of the number and structure of human resources, there are forecasts and forecasts The company needs to carry out strategic planning and human resource development planning After planning, it should be disseminated to all departments and divisions In training programs, ensure that all employees understand the Company's goals and take that as the production orientation Ensure timely recording of feedbacks from employees
Promote collective strength, seek creativity, new ideas to contribute to promoting production and business activities
Refer to HR issues from many other businesses as well as from human resource experts to learn from and draw experience in human resource activities at the Company In new employee training programs, the Company needs to re-evaluate the importance of equipping with insights into its strategy, planning or development plan Ensure that all employees have a deep understanding of the organization's goals, taking it as the standard
65 direction in their work This propaganda not only helps in the good implementation of human resource development strategies, programs and plans in the organization It needs to involve both listening and asking from the team of planners Ensure timely recording of objections or unusual reports from employees This is a valuable source of information for the Company to research and adjust strategies and plans
In the planning work, the Company may consider inviting more human resource consulting organizations (HR specialists) in the country These experts are knowledgeable about local institutions, regional cultures, labor practices and other business conditions in Vietnam
Recruitment has a special role to help the company meet the necessary needs and find qualified human resources Based on the forecasted labor data on the number and structure of the company's human resources in the near future, the company completes human resource planning according to the following solution:
Analyze the current situation and evolution of the company's human resources in terms of quantity, structure and quality of human resources; Analyze the suitability between human resource development and the strategy of science and technology development in the direction of science and technology development and the company's business field
Have a plan to deal with redundant or unreasonable labor Develop flexible, specific, clear recruitment regulations and strict recruitment process The company needs a staff member in charge of human resources, in order to improve human resource management, the company should build a job description for each working position and balance the titles The description should fully list individual competency requirements such as education, work experience, problem-solving abilities, work skills and personal characteristics The job description helps employees understand how the company needs employees and the employer knows the skills and expertise of each candidate
Develop a scientific recruitment process, suitable to the requirements of human resource development in the new situation: it is necessary to publicize the selection; The selection criteria must be specific and clear, the recruitment process must be strict and orderly
The company needs to attract excellent people to the company by implementing
66 policies to attract and retain good employees
Strategy to retain good people: The company must have a strategy to retain people from 4 fronts: attracting, recruiting, integrating and collaborating In which, the company's reputation is the first and most important factor in order to attract good people from the outside while also keeping good people inside the company
It is necessary to accurately assess the personnel needs of each department, require a clear qualification, profession or skill level, and a reasonable structure of personnel Human resource planning follows a clear process based on the strategic goals of the company It is necessary to establish a labor market information system with the effective and efficient support of modern information technologies
- Whether newly recruited or working employees, each department and unit in the Company needs to agree on the view of arranging the right people and the right jobs To do this well, there are a few things to keep in mind:
List all the main functions and tasks that need to be performed in the department or unit in accordance with the Company's regulations Compare the actual functions and tasks performed with the Company's regulations to add missing tasks, adjust and re-assign the overlapping jobs The allocation and placement is carried out on the basis of:
+ Job description sheet; Standard work table; requirements, characteristics and contents of each job; Actual capacity of workers
Ensure the principle: Every job has someone to do; The implementation is not overlapping; The work is done by the most suitable person, helping them to maximize their strengths and when any person is absent, that person's work can be taken over by someone else without disrupting the operation joint production and business These issues require the head of the department or unit to understand more about the psychological aspects and the art of leadership
Regularly organize professional exams within the scope of the Company to discover new factors for placement in appropriate positions and propose to mobilize them from one department or unit to another more suitable For the tasks assigned to the group of employees, in addition to the job description for the group, it is necessary to develop a coordination mechanism between team members and the responsibilities of the team leader When the right people are arranged, the right jobs, employees will feel comfortable,
67 along with other attractive policies (salaries, bonuses, benefits, ) will stimulate employees to work hard, Labor productivity certainly increases and they themselves do not need to work overtime or work outside In addition, it is also necessary to pay attention to the policy of team rejuvenation Whereby:
+ Must develop standards specifying the age of employees when undertaking some jobs
+ Confidently assign work to young people, mentor and guide them so that they soon gain experience
3.2.4 Training and retraining to improve the quality of human resources
Develop and implement regular and appropriate training programs