Solutions to improve the efficiency of human resources management at Thuong Tin power company = Nghiên cứu giải pháp nâng cao hiệu quả hoạt động quản trị nguồn nhân lực tại công ty điện lực Thường Tín
LITERATURE REVIEW OF HUMAN RESOURCE MANAGEMENT
Some basic concepts in human resource management
Human resources are essential for any organization, as highlighted by Nguyen Van Diem and Nguyen Ngoc Quan (2011) They encompass all employees within the organization, representing both their physical and mental capabilities Understanding human resources in this way emphasizes their critical role in organizational success.
According to Tran Kim Dung (2011), an organization's human resources are created by connecting individuals in various roles and positions to achieve a common goal, leading to successful outcomes Human resources are distinct from other enterprise resources due to their inherent nature, as employee behavior can fluctuate based on the work environment and their perceptions The qualifications, structure, and adaptability to the evolving demands of the labor market are critical considerations in human resource management Ultimately, the quality of human resources is reflected in their knowledge, skills, and attitudes towards their work.
Human resources refer to the potential of employees within an organization or society, assessed by both quantity and structure—such as profession, training level, and region—as well as quality, which includes ethical values, physical strength, intelligence, energy, skills, and professional experience This combination fosters competitiveness, enabling organizations and businesses to thrive and achieve sustainable development while addressing the economic and social needs of their local communities and the nation.
1.1.2 The concept of human resource management
Human resource management is inherently more complex than managing other organizational resources due to the diverse characteristics, personalities, abilities, qualifications, and perspectives of each employee This variability allows individuals to adapt and influence their work environment significantly.
When employees observe a change, their behavior can significantly impact the organization's progress Effectively managing and motivating employees to transcend personal barriers and work towards the organization's common goals is challenging Therefore, it is essential for managers to have a strong understanding of Human Resource Management principles.
Human resource management in Vietnam encompasses a comprehensive system of philosophies, policies, and functional activities aimed at attracting, training, developing, and retaining talent within organizations This approach is designed to optimize outcomes for both the organization and its employees, ensuring mutual growth and success.
Nguyen Van Diem and Nguyen Ngoc Quan (2011) define human resource management as the comprehensive process of attracting, developing, utilizing, evaluating, and maintaining a workforce that meets the organization's job requirements in both quantity and quality.
According to Nguyen Huu Than (2012), human resource management encompasses a comprehensive approach to planning, recruiting, selecting, maintaining, developing, and motivating employees These coordinated activities aim to foster an environment that supports employees and aligns with the organization's strategic goals and vision.
Human resource management, as defined by John M Ivancevich (2010), involves the effective management of people in the workplace to enhance productivity and job satisfaction This field focuses on strategies to improve employee performance and overall workplace morale.
In today's rapidly evolving landscape of science and technology, global competition intensifies, elevating the demands on individuals, teams, organizations, and customer expectations Stricter labor laws and rising employee demands have transformed human resource management from mere administrative tasks into a critical component of strategic planning The successful integration of scientific principles and artistic approaches is essential for effective management in this complex environment.
Table 1.1: Characteristics of traditional human resource management and strategic human resource management
Characteristics Traditional human resource management
Responsibility for human resources and management
Goal Better labor efficiency Better labor efficiency
Better understanding and more effective use of strategic resources Better understanding and more effective use of strategic resources
Meet the needs Leading, motivating, understanding
Short term results Short, medium and long term
Time Short-term results Short- term, medium-term and long- term
Rules, policies and position power
Flexible, depends on human resources
Control Rules, policies and position power Flexible, depends on human resources
Bureaucratic culture, top-down, centralization Open, inviting, empowering
Human resource management integrates modern science and technology with management theory to fulfill an organization's strategic goals This process involves key functions such as planning, attracting, recruiting, training, developing, employing, evaluating, and retaining talent, all guided by suitable philosophies and policies.
Objectives, roles and meanings of human resource management
The effective management and sustainable utilization of natural resources, capital, and human potential are crucial for a country's development Among these, the human factor stands out as both the primary driver and ultimate objective of progress, as all development efforts aim to enhance the quality of human life Thus, people serve as the foundation and the goal of sustainable development initiatives.
In today's knowledge-driven world, effective organizations rely on three key elements: mission and strategy, organizational structure, and human resource management Human resources are crucial as they directly influence production and innovation, ensuring organizational survival Proper management of human resources is essential, as it impacts the management of all other resources Therefore, human resource management must be central to all organizational activities Additionally, the HR management strategy should align with the organization's overall strategy; any misalignment with the organization's vision, mission, and goals can lead to significant challenges.
According to Tran Kim Dung (2011), human resource management has two basic goals: Using human resources effectively for the purpose of increasing labor productivity and improving organizational effectiveness
To meet the increasing demands of employees, it's essential to motivate and empower them to reach their full potential In doing so, organizations benefit from enhanced enthusiasm, loyalty, and dedication from their workforce.
Human resource management is crucial to the production and operational success of an enterprise, providing a competitive edge that enables businesses to thrive The significance of human resource management stems from the essential role of people, who are the driving force behind business activities and ultimately determine the success or failure of the organization.
Basic functions of human resource management
Effective management activities tailored to the unique characteristics of human resource groups are diverse and encompass various functions, tasks, fields, sizes, organizational structures, finances, and technologies Nonetheless, managers must prioritize three fundamental functions: attracting, training and developing, and retaining human resources.
1.3.1 Functional group to attract human resources
Effective human resource planning, job analysis, and strategic recruitment are essential for ensuring that your organization has the right number of employees with the necessary qualities and capabilities By focusing on matching the right people to the right jobs at the right time, businesses can enhance productivity and foster a more efficient workforce.
Human resource planning involves analyzing and identifying the workforce requirements of an organization, developing policies, and implementing strategies to ensure that there is a sufficient number of qualified personnel This process aims to align human resources with the organization's goals, enhancing productivity, quality, and efficiency in job performance.
The human resource planning process must align closely with the business strategies and policies of the enterprise This process typically involves several key steps to ensure effective implementation (Tran Kim Dung, 2011).
- Analyzing the environment, defining goals and business development strategies for enterprises
- Analyze the current state of human resource management in the enterprise
- Analyze the relationship between supply and demand of human resources
- Implement human resource management policies, plans and programs
- Check and evaluate the implementation status
Effective human resource planning is essential for organizations to meet their goals by accurately identifying short-term and long-term staffing needs This enables administrators to make informed decisions regarding hiring, promotions, transfers, and training to align with current and future human resource requirements Additionally, it is crucial that these decisions remain flexible and considerate to maintain employee morale and a positive work environment.
Job analysis is the work, the procedure to determine the authority, responsibility, skills required by the job and determine the people with the ability and
To effectively recruit for a job, it's essential to identify 21 key qualities that ensure optimal performance This involves a thorough research process to outline the job's goals, necessary skills, knowledge, and attitudes Following this analysis, the administrator creates a comprehensive job description and establishes job standards to guide the recruitment process.
A job description outlines the essential operations, duties, authority, work relationships, and working conditions associated with a specific role In contrast, a job standards table details the minimum requirements for a position, including educational qualifications, professional skills, work experience, age, physical strength, and personal characteristics necessary for success in the role.
For accurate job analysis, analysts, in addition to their professional abilities, need to have close coordination with direct managers and the employees themselves
The process of performing job analysis is usually carried out with the following 6 steps (Tran Kim Dung, 2011):
Step 1: Determine the purpose of job analysis, then determine the appropriate forms of job analysis information
Step 2: Collect the available basic information on the basis of organizational charts, documents on purposes, requirements, functions, authority of the business and structural parts or process diagrams technology and old job description (if any)
Step 3: Select specific tasks, key points to perform job analysis to reduce time and save more money in performing analysis of the same jobs
Step 4: Apply different methods to collect job analysis information Depending on the requirements of the accuracy and detail of the information to be collected, depending on the type of work and the financial capacity of the enterprise, one or a combination of methods of information collection can be used the following job analysis: interviews, questionnaires and observations
Step 5: Check and verify the accuracy of information The information collected for job analysis should be checked for accuracy and completeness through the employees performing the work or the management responsible for supervising the performance of the work
Step 6: Build job description and job standards table
Job analysis can be conducted through various methods, including interviews, questionnaires, direct observation, and workday diaries The choice of method depends on the specific type of information that needs to be gathered.
To achieve optimal organizational performance, it is essential to ensure synchronized coordination among departments, enhance labor productivity, and establish clear responsibilities and authority for each employee Conducting a thorough job analysis is crucial for accurately assessing employee capabilities, ensuring fair wages and promotions, and ultimately motivating staff.
Recruitment is an activity that includes recruiting and selecting candidates for a position in an enterprise
Recruitment is the process of attracting and identifying qualified candidates for job openings, utilizing various sources both internal and external to the organization Each source offers unique advantages and limitations, influencing the effectiveness of the recruitment process.
Utilizing internal sources for recruitment can enhance employee motivation and self-improvement, as they possess valuable business knowledge and demonstrated loyalty, while also reducing selection costs However, this approach may lead to limitations such as outdated thinking and a lack of creativity, preventing the organization from attracting experienced and highly qualified external candidates Conversely, recruiting from outside sources can enable businesses to quickly seize opportunities and minimize retraining costs when internal candidates do not meet job requirements Ultimately, companies must assess the nature of the position and their specific circumstances to determine the most suitable candidate sourcing strategy.
Selection is the critical process of evaluating and choosing the most qualified candidates following recruitment, focusing on the specific job description and standards This involves assessing expertise, communication skills, and the ability to adapt to the work environment.
The order of the recruitment process in enterprises usually proceeds according to the following steps:
Step 3: Receive and study documents
1.3.2 Human resource training and development functional group
According to John M Ivancevich (2010), training is a systematic process of changing employee behavior, that is, teaching specific skills and abilities required to help employees perform better at their current job
Evaluate the performance of human resource management activities
1.4.1 The role of performance appraisal of human resource management
Assessing the performance of human resource management activities is crucial for organizations to gauge the effectiveness of their HR practices and understand how these practices contribute to achieving their overall goals (Tran Kim Dung, 2011).
1.4.2 The process of evaluating the performance of human resource management activities
Enterprises assess human resource management functions—attraction, training, development, and retention—based on specific goals (Tran Kim Dung, 2011) The effectiveness of these activities is measured through key indicators, including staff qualifications and capacity, employee loyalty and commitment, labor productivity, job satisfaction, and turnover rates.
1.4.3 Methods of evaluating the performance of human resource management activities
Various methods exist for assessing the effectiveness of human resource management activities, including the comparison and ranking method, standard comparison method, objective-based management method, and scoring system (Tran Kim Dung, 2011).
1.4.4 Tool to evaluate the performance of human resource management
Enterprises utilize various tools to assess the outcomes of human resource management, including statistical data, surveys, interviews, and group discussions The application of Key Performance Indicators (KPIs) to measure HR management results is becoming increasingly common in organizations Key KPIs related to HR functions encompass recruitment and placement, training effectiveness, and the salary, bonus, and welfare systems (Tran Kim Dung, 2011).
Factors affecting human resource management activities
In today's dynamic business landscape, companies face a constantly evolving environment that presents both opportunities and challenges for human resource management To navigate these changes effectively, administrators must consistently monitor and gather relevant information to make informed decisions that drive business success.
The economic context plays a crucial role in shaping business operations and the livelihoods of workers A stable economy encourages enterprises to expand production, leading to job creation and the fulfillment of salary and bonus structures Conversely, during economic downturns, businesses struggle, often resulting in employee layoffs, reduced benefits, and necessary organizational restructuring.
To maintain compliance with legal standards, administrators must consistently update regulations and guidelines, ensuring that policies governing personnel rights and obligations are current This practice is essential for safeguarding the legal rights of both enterprises and employees.
Science and technology: To apply modern scientific and technical achievements, enterprises need to equip themselves with new knowledge and skills through training, retraining and fostering for employees
Socio-cultural factors: Socio-cultural factors greasalaryy affect the behavioral capacity of employees They affect the thought, psychology, lifestyle, viewpoint, and working style of each employee
Competitors: Creating labor mobility between businesses, especially high- quality human resources This also creates opportunities for businesses when recruiting experienced employees, and causes losses if businesses lose qualified employees
The availability of skilled human resources from training institutions in Vietnam remains inadequate, particularly in specific production and business sectors This deficiency significantly impacts both the quantity and quality of the workforce.
Every business establishes specific goals and strategies that guide its production and operations The collective efforts of individuals and teams are focused on achieving these shared objectives By aligning human resource management with the organization's goals and strategies, businesses can ensure a more effective and efficient approach to achieving their aims.
The organizational structure of a business governs the management of human resources, outlining the relationships and arrangement of departments as well as the flow of information across various roles and levels This structure clearly defines the functions, powers, and responsibilities of all members, preventing overlaps Any changes to the organizational structure will consequently lead to adjustments in human resource management practices.
The effectiveness of human resource management is significantly influenced by the quality of the leadership team Successful leaders exhibit courteous and understanding communication, skillfully employing motivational tools and leadership strategies to enhance employee productivity and enthusiasm Their vision is demonstrated through empowerment, delegation, and ensuring the right individuals are placed in the right roles.
Enterprise policies and regulations play a crucial role in shaping labor rules, recruitment, training, and personnel management These guidelines directly influence the salary and bonus structures, impacting employee satisfaction and overall human resource management effectiveness.
Corporate culture: is a combination of material and spiritual standards that regulate relationships, attitudes and behaviors of members in an enterprise.
Summary
THEORETICAL BASIS ON HUMAN RESOURCE MANAGEMENT ACTIVITIES
1.1 Some basic concepts in human resource management
Human resources are essential for any organization, as they encompass all employees within it According to Nguyen Van Diem and Nguyen Ngoc Quan (2011), human resources represent both the physical and mental capabilities of individuals, highlighting their crucial role in organizational success.
According to Tran Kim Dung (2011), an organization's human resources are developed by connecting individuals in various roles to achieve common goals and successful outcomes Key factors such as qualifications, organizational structure, and the ability to adapt to the evolving labor market are crucial in discussing human resources Unlike other enterprise resources, human resources are influenced by human nature, with behaviors potentially shifting based on the work environment and individual perceptions The quality of human resources is ultimately reflected in employees' knowledge, skills, and attitudes toward their work.
Human resources represent the potential of employees within an organization, encompassing both quantitative and qualitative aspects, such as profession, training level, and ethical qualities This potential includes physical strength, intelligence, skills, and professional experience, all of which contribute to an organization’s competitiveness Effective human resources are essential for the survival and sustainable development of businesses, enabling them to meet the economic and social needs of local communities and the nation.
1.1.2 The concept of human resource management
Human resource management is often viewed as more intricate than managing other organizational resources due to the diverse characteristics, personalities, abilities, qualifications, and perspectives of each employee This variability allows individuals to influence the workplace dynamics significantly.
When employees notice changes within an organization, their behavior can significantly shift It can be challenging for managers to motivate staff to navigate their personal barriers and align their actions with the organization's common goals To effectively address this, it is essential for managers to have a strong understanding of Human Resource Management principles.
Human resource management in Vietnam encompasses a comprehensive system of philosophies, policies, and activities focused on attracting, training, developing, and retaining talent within organizations This strategic approach aims to achieve optimal outcomes for both the organization and its employees.
Nguyen Van Diem and Nguyen Ngoc Quan (2011) define human resource management as the comprehensive process of attracting, developing, utilizing, evaluating, and maintaining a workforce that aligns with an organization's job requirements, focusing on both the quantity and quality of employees.
Nguyen Huu Than (2012) defines human resource management as a comprehensive approach involving planning, recruiting, selecting, maintaining, developing, and motivating employees This coordinated effort aims to create optimal conditions for personnel within the organization, ultimately facilitating the achievement of the organization's strategic goals and vision.
Human resource management, as defined by John M Ivancevich (2010), involves the effective management of people in the workplace It focuses on strategies to enhance employee productivity and job satisfaction.
The rapid advancements in science and technology, coupled with heightened global competition, have raised expectations for individuals, teams, and organizations As labor laws become stricter and employee demands grow, human resource management has evolved beyond mere administrative tasks to become a crucial component of strategic planning Successful managers now blend scientific approaches with artistic insights to navigate these complexities effectively.
Table 1.1: Characteristics of traditional human resource management and strategic human resource management
Characteristics Traditional human resource management
Responsibility for human resources and management
Goal Better labor efficiency Better labor efficiency
Better understanding and more effective use of strategic resources Better understanding and more effective use of strategic resources
Meet the needs Leading, motivating, understanding
Short term results Short, medium and long term
Time Short-term results Short- term, medium-term and long- term
Rules, policies and position power
Flexible, depends on human resources
Control Rules, policies and position power Flexible, depends on human resources
Bureaucratic culture, top-down, centralization Open, inviting, empowering
Human resource management integrates modern science and technology with management theory to fulfill an organization's strategic goals This process involves key functions such as planning, attracting, recruiting, training, developing, employing, evaluating, and retaining personnel, all guided by suitable philosophies and policies.
1.2 Objectives, roles and meanings of human resource management
The effective management and sustainable use of natural resources, capital, and human potential are crucial for a country's development Among these, the human factor stands out as both the driving force and the ultimate goal of progress, as development ultimately aims to enhance the quality of human life Thus, prioritizing people is essential for achieving meaningful and sustainable development outcomes.
In today's knowledge-driven world, effective organizations rely on three key elements: mission and strategy, organizational structure, and human resource management Human resources are crucial as they directly influence production and innovation, ensuring organizational survival Since all management activities are executed by people, poor human resource management complicates the management of other resources Thus, prioritizing human resource management is essential for effective organizational operations Furthermore, the human resource management strategy must align with the organization's overall strategy; a misalignment can lead to significant challenges in achieving the organization's vision, mission, and goals.
According to Tran Kim Dung (2011), human resource management has two basic goals: Using human resources effectively for the purpose of increasing labor productivity and improving organizational effectiveness
To meet the increasing demands of employees, it is essential to motivate and empower them to reach their full potential In doing so, organizations benefit from enhanced enthusiasm, loyalty, and commitment from their workforce.
Human resource management is crucial to the success and development of any enterprise, as it directly influences all production and business operations By effectively managing human resources, businesses can create a competitive advantage that ensures their survival in the market The significance of human resource management stems from the fact that people are the driving force behind business operations, ultimately determining the overall success or failure of the organization.
1.3 Basic functions of human resource management
RESEARCH METHODOLOGY
Research process
The research process begins with the identification of the research problem and the establishment of the research objectives Following this, the author develops a theoretical framework encompassing human resource management and a research model focused on work efficiency The methodology includes both qualitative and quantitative research methods; qualitative methods involve expert interviews and questionnaire development, while quantitative methods utilize SPSS for analyses such as Cronbach’s Alpha, Explanatory Factor Analysis (EFA), and multivariate regression Finally, the author assesses work efficiency through various factors and proposes relevant solutions.
After establishing the research objectives, the author will outline specific research directions, concentrating on factors that influence work efficiency Furthermore, by analyzing existing models from related studies, the author will develop and propose a unique research model tailored to the topic.
Research method
Building a scale for the concepts in the research model of the factors of human resource management on staffs’ work efficiency based on the research model of the
In her 2011 study, Tran Thi Kim Dung identified key research variables that have been adapted for this research The aim of this study is to assess whether interviewees recognize the significant factors that influence work efficiency.
The hand-to-hand discussion technique, as outlined by Nguyen Dinh Tho (2011), is a data collection method that involves direct dialogue between the researcher and the data collector This approach is beneficial because it acknowledges the differing expertise and perspectives of both parties, allowing for a deeper understanding of the research topic Throughout the interview process, the researcher defines and clarifies key concepts to ensure that the interviewees' insights are relevant and valuable to the study.
The interviewee was chosen using a non-probability sampling method, specifically the convenient method, allowing the researcher to select accessible sample elements (Nguyen Dinh Tho, 2011) The author conducted interviews with seven officers and leaders who directly operate and manage the company.
* Sample size and sampling method
Random sampling was used to collect data To calculate the sample size, the research topic used the following formula:
Due to the property p + q = 1, so pq will be max when p = q = 0.5, so pq = 0.25
We calculate the sample size with a confidence of 95% and a tolerance of e = 8% Then the sample we need to choose will have the largest sample size:
To determine the required sample size for factor analysis, the formula involves the sample size (n), the Z value corresponding to the statistical domain, and a significance level of α = 5%, which yields Z = 1.96 With a maximum proportion P of 0.5, the necessary sample size is calculated to be 150 observations According to researchers Nguyen Dinh Tho and Nguyen Thi Mai Trang, it is essential that the sample size used in factor analysis is at least four to five times greater than the number of factors being analyzed.
The study involves 35 observed variables to ensure meaningful survey results, focusing on employees at Thuong Tin Power Company With an anticipated sample size of N = 350, the survey method consists of distributing forms to each employee, aiming for approximately 350 observations to enhance the reliability of the research findings.
* Methods of data collection: To obtain research data for statistical analysis
The author will distribute a comprehensive survey questionnaire to employees at Thuong Tin Power Company for an experimental investigation The questionnaires will be sent to various departments, where staff will provide the required information Once completed, the responses will be collected by department heads and submitted to the author for data entry and analysis The study aims to involve a total of 350 employees currently receiving a salary at the company.
The survey questionnaire is divided into 2 parts:
Part 1: Personal information of the surveyed person This section is designed to collect information such as age, occupation, gender, education level …
Part 2: Survey content This section includes 28 questions about 7 factors assessed on a 5-point scale (From 1 to 5)
After gathering the data, the author meticulously cleaned the dataset by removing invalid responses and analyzed the findings using SPSS software Building upon the insights from previous research, the author introduces a new research model.
- Hypothesis H1 (Income): Income has a positive impact on improving the working efficiency of employees
- Hypothesis H2 (Welfare policy): Welfare policy has a positive impact on improving the working efficiency of employees
- Hypothesis H3 (Relationship with colleagues): Relationship with colleagues has a positive impact on improving the working performance of employees
- Hypothesis H4 (Leadership support and supervision): Leadership support and supervision have a positive impact on improving employee performance
- Hypothesis H5 (Nature of work): The nature of work has a positive impact on improving the working efficiency of employees
- Hypothesis H6 (Training and professional development): Training and professional development have a positive impact on improving the working efficiency of employees
- Hypothesis H7 (Reward and recognition): Reward and recognition have a positive impact on improving employee performance
Table 2.1: Encrypting Survey Data Survey
TN1 Salary is suitable for ability and contribution
TN2 Fair reward for work performance
TN3 Fair distribution of salary, bonus and allowance according to contribution TN4 Can live with current salary
TN5 Salary is equal to other units
PL1 Welfare policy is fully implemented
PL2 Welfare policy shows thoughtful attention to employees
PL3 Useful and attractive welfare policy
PL4 Clear and public welfare policy
DN1 Friendly co-worker relationship
DN3 Colleagues are very supportive of each other at work
LD1 The superiors always acknowledge the contributions of employees
LD2 Superiors care and support subordinates
LD3 Superiors treat employees fairly, without discrimination
LD4 Capable, visionary and executive superiors
CV1 Job suitable with professional capacity
CV2 A clear understanding of the job
CV A job that allows you to bring into full play your personal abilities
CV4 Motivated to be creative at work
DT1 Employees are trained for work and career development
DT2 offers employees support for educational advancement by covering time and costs associated with furthering their qualifications Meanwhile, DT3 enhances employee skill development through on-the-job training, ensuring they acquire necessary competencies during their work processes.
DT4 The company's promotion policy is clear and fair
DT5 There are many advancement opportunities when working at the company
KT1 The company has a fair and reasonable reward policy
KT2 Employees are well rewarded for completing their work
KT3 Employees are promoted at work
To achieve the research objectives, the author conducts the analysis of survey data through the following methods:
To assess the reliability of the questionnaire, the author utilized the Cronbach's Alpha reliability test The findings indicated that an alpha coefficient of 0.8 or higher signifies a good scale, while a range of 0.7 to 0.8 is deemed usable Additionally, some researchers suggest that alpha coefficients of 0.6 or above can be acceptable when exploring new concepts or contexts for respondents (Nunnally, 1978; Peterson, 1994; Slater, 1995, as cited by Hoang Trong & Chu Nguyen Mong Ngoc, 2005) Consequently, this study accepts an alpha coefficient of 0.6 or more as reliable.
Exploratory Factor Analysis (EFA) aims to consolidate variables into distinct factors, rejecting those with a factor loading below 0.5 Utilizing Principal Component Analysis and Varimax rotation, EFA analyzes factor groups while ensuring two key criteria are met: the KMO value must exceed 0.6, and the factor loading in the Rotated Component Matrix should be greater than 0.5 This process guarantees a strong convergence among the variables, with factor extraction ceasing when the Eigenvalue is greater than 1, as factors with an Eigenvalue below 1 are deemed less effective for summarizing data in SPSS.
Normalization of variables results in each root variable having a variance of 1, which is crucial for analysis A scale is considered acceptable when the total variance extracted is equal to or exceeds 50% (Gerbing & Anderson, 1998).
Chapter 2 presents about research process và research method This chapter also covers the contents include: preliminary research, quantitative research và encrypting Survey Data Survey
CURRENT SITUATION OF HUMAN RESOURCES
Predictive analysis of factors affecting human resource management at Thuong
In 2019, Vietnam's economy experienced a robust growth rate of 7.02%, with a notably low inflation rate of just 2.73%, marking the lowest inflation in three years The consumer price index (CPI) also saw a modest increase of 2.79%, reflecting stable economic conditions compared to the previous years, where inflation rates were 3.54% in 2018 and 3.53% in 2017.
In 2019, Thuong Tin district successfully met and exceeded all 16 targets set by the City, demonstrating a positive shift in its economic structure The total value of industrial and construction production reached VND 16,124 billion, marking a 14.3% increase, while the value of trade in services rose to VND 10,409 billion, up 15.6% Agricultural production also saw growth, totaling VND 1,521 billion, a 3% increase Additionally, the district's state budget revenue surpassed VND 802 billion, reflecting a significant 40.6% increase, and local budget expenditure exceeded VND 1,870 billion, up 23.5% from 2018.
The signs indicate a gradual recovery of the economy, leading to increased business opportunities across the nation, particularly in Thuong Tin district As a result, the demand for electricity in the province is rising daily, allowing Thuong Tin Company to expand its production and business operations This growth enables the company to create more jobs and ensure timely payment of salaries, bonuses, and benefits for employees, thereby motivating them to actively contribute to the company's success.
Vietnam's legal system is evolving to enhance the protection of employee rights while prioritizing both the working and ecological environments Consequently, the Human Resources Department must consistently update and review regulations and legal guidelines to effectively advise the Board of Directors This ensures that human resources policies align with the legitimate rights and obligations of both enterprises and employees.
The Electricity Law aims to foster a competitive environment in the production and consumption of electricity by reforming the industry and reducing direct state interference in favor of regulatory mechanisms As the electricity sector evolves to include competition in generation, distribution, wholesale, and retail, Thuong Tin Co., Ltd faces significant challenges in its production and business operations, particularly in human resource management To remain proactive, the company must prepare for a future where the electricity industry operates without subsidies.
69 shape of the current "ask - give mechanism" or the current lifelong recruitment mode to be able to develop enterprise autonomy
The electricity industry extensively utilizes modern scientific and technological advancements, necessitating sophisticated and costly equipment that demands precise operational skills To address this, companies must invest in training and skill development for their employees Additionally, the integration of science and technology not only alleviates physical labor but also enhances productivity, enabling companies to optimize their human resource costs.
Vietnam's electricity market is formed and developed through 3 levels:
+ Level 1 (2005-2014): Competitive power generation market
+ Level 2 (2015-2022): Competitive wholesale electricity market
+ Level 3 (after 2022): Competitive retail electricity market
To thrive in the competitive electricity market, Thuong Tin Power Company must navigate challenges from both domestic and foreign investors It is essential for the company to implement effective policies for attracting, recruiting, training, and retaining talented employees to prevent labor migration to other enterprises.
The electricity industry demands highly specialized skills and knowledge, making the supply of human resources from training institutions crucial Currently, Thuong Tin Company primarily sources its labor from Hanoi, but even local schools are unable to meet the increasing demands for skilled workers and the need for ongoing retraining To address this gap, the company must implement policies aimed at attracting high-quality labor from diverse sources.
Thuong Tin Power Company aims to produce and trade high-quality, efficient electricity by leveraging advanced science and technology, along with strong management capabilities The company focuses on developing a synchronized distribution power grid that aligns with its power source development program.
To modernize the power grid and effectively meet the increasing electricity demand of 14% per year, it is essential to enhance measures aimed at reducing power loss Additionally, human resource management activities should be developed and executed in alignment with the company's goals and strategies.
The Government is committed to reforming State-owned companies, particularly large firms with monopolistic control, such as the Electricity of Vietnam This reform will involve restructuring provincial power companies into either one-member limited liability companies or joint stock companies As the organizational structure evolves, it is essential to also adapt human resource management practices to align with these changes.
The leadership team's understanding of human resource management is often limited, as many leaders have transitioned from technical roles without formal training in this area To enhance their effectiveness, it is essential to provide additional knowledge and skills in human resource management for the leadership team.
The company has established policies and regulations regarding labor rules, recruitment, training, and personnel management However, there is a lack of strong consensus among employees regarding these policies To enhance employee attraction and retention, as well as to boost labor productivity, it is essential for the company to refine and improve these regulations.
At LLP Company, we believe that "employees are the most valuable asset," which drives our commitment to fostering a peaceful and harmonious work environment By promoting cooperation and mutual support among team members, we enhance productivity and job satisfaction Investing in the education of our employees' attitudes and behaviors is essential, as it significantly contributes to the overall success and value of the company.
Assessing the current situation of human resource management activities at
After over 11 years of growth and challenges, Thuong Tin Co., Ltd has navigated various difficulties in its production and business endeavors The company's leadership, along with dedicated staff, consistently strives to meet their objectives Emphasizing the significance of human resource management, the Board of Directors recognizes it as a crucial element for the company's success.
The company's human resource management activities have largely aligned with the needs of its production and business operations; however, significant shortcomings remain that must be addressed to enhance staff effectiveness.
In recent years, the Human Resources Department has recommended that the Board of Directors of Thuong Tin Company focus on key aspects of human resource management to enhance overall effectiveness.
The human resources department plays a crucial role in attracting talent, ensuring that the planning and recruitment processes successfully meet the company's short-term staffing needs for production and business operations.
The company is increasingly prioritizing employee training and development, as evidenced by a growing number of trainees and rising training budgets over the years This commitment is reflected in the organization of training courses focused on essential and urgent skills for employees.
To ensure effective human resource management, the company prioritizes timely and complete payment of salaries, bonuses, and employee benefits, fostering a stable income for its workforce and allowing employees to focus on their work with peace of mind.
- Functional group to attract human resources:
The remaining problems in the activities of attracting human resources at the company are:
Effective human resource planning should be proactive, rooted in a thorough analysis of the business environment, organizational goals, and the current state of human resources Without this strategic approach, companies struggle to forecast workload demands, resulting in inadequate medium- and long-term human resource plans.
+ Job analysis: job descriptions and specific job standards for each title have not been built as a basis for assigning, assigning jobs and evaluating employees
The company's recruitment strategy primarily focuses on hiring internally and leveraging personal connections, which limits the pool of qualified candidates Additionally, there has been no assessment of the effectiveness of this recruitment approach.
- Human resource training and development functional group:
The remaining problems in training and human resource development activities at the company are:
Employee training is currently inadequate, with unreasonable time allocated for onboarding new hires and a lack of evaluation on training effectiveness There is insufficient focus on developing high-quality human resources, and the total training budget does not align with regulatory requirements Additionally, the staff responsible for training lack in-depth professional knowledge and experience, leading to confusion in their consulting roles.
Employee development often lacks transparency, as the processes for planning, promoting, and appointing staff tend to prioritize background and seniority over an individual's job performance and personal capabilities This approach raises concerns about the effectiveness of employee placement and the overall quality of job positions within the organization.
- Human resource maintenance functional group:
The company faces significant challenges in human resource maintenance, particularly in job performance evaluation The criteria for assessment are not clearly defined or quantified, resulting in evaluations that are often superficial, subjective, and emotionally driven This lack of transparency in the evaluation process disproportionately favors long-serving employees or those in leadership roles, while failing to enhance overall work efficiency Additionally, the staff responsible for conducting these assessments lack the essential skills needed for effective evaluation.
The current labor payment system lacks fairness and reasonableness due to the application of regional factors, resulting in unfair employee evaluations and inaccurate job performance coefficients This discrepancy negatively impacts employee wages, and efforts to motivate staff through bonuses have proven ineffective in fostering a stimulating work environment.
Third, the environment, working conditions, corporate culture, coordination between departments and the attention of leaders are not really appreciated by employees
Thuong Tin Power Company is introduced alongside its operational status, emphasizing the importance of effective human resource management as assessed through objective employee evaluations A survey involving 236 employees was conducted to gather insights on the functionality of these management practices The author analyzes the current state of human resource management at the company, utilizing methods and data collected since 2015 to support their findings.
In 2019, the author examines and forecasts the factors influencing the company's human resource management in the near future This analysis highlights both the strengths and weaknesses of the current system, identifying the underlying causes of these shortcomings The insights gained serve as a foundation for proposing effective solutions aimed at enhancing human resource management within the company, as detailed in Chapter 3.
SOLUTIONS TO COMPLETE HUMAN RESOURCES
The perspective of perfecting human resource management activities
Prioritizing investment in people is raised to the top because people are the factor that plays the most important role, deciding the sustainable development of the company
Developing human resources in alignment with work requirements and practical conditions is essential for Thuong Tin Company This approach should consider the unique characteristics of the situation and the financial capabilities available, ensuring consistency with the company's evolving development strategy.
To enhance human resource management effectively, solutions should be practical and feasible, leveraging strengths while addressing weaknesses A comprehensive, scientific, and synchronized approach is essential to ensure the availability of qualified personnel that aligns with the company's production and business requirements.
The goal of perfecting human resource management activities
Build a reasonable structure and number of human resources In which, the rate of male accounts for 85%, female 15%; Ensure that the number of employees meets the correct workload
Enhancing the recruitment process is essential for acquiring top talent that aligns with company requirements A key objective is to ensure that at least 75% of new hires come from reputable training institutions, while minimizing the reliance on employee referrals to under 15%.
Ensure 100% of officers and employees in the company have a specific job description and job standard table
Ensure 100% of job positions are built with evaluation criteria The performance evaluation is open, transparent, fair, and must help the person being evaluated to be more complete
Completing staff training and development policies, making the most of the training budget Ensure 100% of employees have the opportunity to learn to improve their
75 skills and qualifications to better serve the company In which, at least 50% of senior leaders
(4 people) have a master's degree; Mid-level leaders (48 people) have 7% master's degrees and 95% university degrees
To enhance employee motivation and retention while attracting top talent, it is essential to implement a comprehensive salary, bonus, and welfare policy This strategy aims to ensure that the average income at Thuong Tin Company is twice that of the average income in Thuong Tin district.
Creating a corporate culture that aligns with the business environment significantly enhances the quality of human resources It is essential to ensure that all employees at the Hanoi Electricity Corporation receive comprehensive training and strictly adhere to the established code of conduct.
Solution to complete human resource management activities at Thuong Tin Power
4.2.1 Restructuring existing human resources a Basis for proposed solution
The Thuong Tin Power Company is projected to experience an excess of human resources over the next 1 to 2 years due to recent recruitment efforts This has led to an imbalanced workforce structure, characterized by a rising number of indirect workers and a decline in highly skilled direct labor Such trends are likely to adversely affect the company's production efficiency and overall business performance To address these challenges, it is crucial to restructure the human resources to align with the company's operational needs, ensuring improved labor productivity and business effectiveness moving forward.
The restructuring of human resources at Thuong Tin Power Company can be done through some of the following measures:
- Clarifying the functions and duties of each department: The functions and duties of each department must be determined on the basis of serving the Company's
76 business development goals These functions and tasks must be clear and especially not overlap, making it difficult to implement as well as assign responsibilities later
To optimize human resource management, it is essential to complete job descriptions for each position within every department, based on clearly defined functions and duties This process will determine the required number of employees for each department, serving as a foundation for future evaluations and enhancing the company's ability to recruit and utilize talent effectively.
To enhance operational efficiency, we will review the current staffing and job descriptions across departments, identifying redundant or unsuitable personnel for specific roles This assessment will inform our adjustment plan, ensuring optimal performance conditions within the organization.
To ensure the successful restructuring of personnel at Thuong Tin Power Company, it is essential to implement the proposed measures systematically and comprehensively The Board of Directors, particularly the Human Resources Department, must prioritize the company's long-term development goals, providing unbiased advice to leadership for informed decision-making This approach will prevent the influence of personal interests and the hiring of individuals who do not meet established criteria, ultimately leading to expected benefits for the organization.
Implementing this solution is projected to boost the Company's labor productivity by approximately 20% This expectation aligns with forecasts indicating a 25% surplus of labor compared to actual demand Furthermore, enhancing labor productivity will lead to improved business efficiency, including increased revenue and profit, by minimizing waste associated with labor and material resource usage.
4.2.2 Recruitment work a Basis for proposed solution
Currently, the personnel decisions at Thuong Tin Power Company are primarily made by EVN HANOI, with the company only providing advisory support for recruitment This reliance on external decision-making has led to challenges in acquiring the desired talent, often forcing the company to accept less suitable candidates.
The current workforce consists of 77 employees who do not meet job requirements, resulting in both redundancy and personnel shortages Consequently, effective recruitment is crucial for developing a high-quality human resources team within the company.
For recruitment to be effective, a number of solutions need to be implemented synchronously as follows:
Establishing recruitment criteria that align with the company's production and business needs is crucial for both the organization and prospective candidates Clear and relevant criteria facilitate the hiring of high-quality personnel To create effective recruitment standards, it is essential to integrate them with the specific job description for the position being filled.
To ensure transparency in recruitment and avoid negative perceptions associated with favoritism, it is essential to widely announce job openings through various mass media channels, including newspapers, radio, and television This approach promotes fairness and accessibility in the recruitment process.
- Interview to determine the capacity of each candidate Interviews can be conducted in many stages to screen to get the best personnel required c Performance conditions
Thuong Tin Power Company must ensure autonomy in its personnel matters, emphasizing a transparent and objective recruitment process To achieve this, the recruitment council should demonstrate enthusiasm and responsibility for the overall development of the company.
Thuong Tin Power Company aims to enhance its recruitment process to attract the right candidates for each position This strategic initiative will address the current challenges of excessive staffing and insufficient qualified personnel, ultimately supporting the company's business development goals.
4.2.3 Policy to attract high-quality human resources a Base proposition
As described in the analysis of the current human resource situation and the current state of human resource policies to see the strengths, weaknesses, opportunities
The Thuong Tin Power Company faces challenges in its human resource development strategy, particularly in addressing the need for specialized personnel To overcome this limitation, the author proposes targeted solutions aimed at attracting suitable human resources that align with the company's unique circumstances and characteristics.
The company does not have specific and attractive policies to attract young, high- quality staff, so it has not been able to attract qualified staff to work
There is a shortage of the Company's human resources, especially skilled technical workers, ensuring the electricity supply in the large area of Thuong Tin District
Attracting human resources through effective policy-making is crucial for organizations to meet their future staffing needs and achieve company goals Leaders must assess strategic directions and set short-term, medium-term, and long-term objectives to ensure the right personnel is in place at the right time Strategic planning aligns human resource initiatives with the overall direction of the company, facilitating a cohesive approach to workforce management.
To implement policy making to attract high-quality human resources from other units, Thuong Tin Power Company needs to define the following criteria:
Determine how many workers with appropriate skills are needed to carry out the Company's missions or goals Determine the workforce that will work for the Company
Select solutions to balance the supply and demand of the Company's human resources at an appropriate time in the future
Ensure the remuneration regime, attract high-quality human resources
Effective policy making aimed at attracting high-quality human resources enables the Company to identify the gap between its current and future human resource needs This proactive approach allows the Company to anticipate challenges and implement strategies to address these needs Additionally, it provides clarity on the existing limitations and opportunities within the current workforce, which is crucial for strategic business planning In essence, developing policies to attract top talent is vital for the Company's growth and success.
79 resources from other units cannot be done in isolation but must be closely linked with the Company's strategy b Contents of the solution
Implementation of this solution should focus on implementing the following contents:
To enhance the appeal of its human resource attraction policies, the Company must address the current lack of strategies to draw in quality talent from external units, as its annual recruitment primarily relies on EVN HANOI Developing effective policies to attract high-quality human resources is essential This includes implementing innovative mechanisms that appeal to talented individuals and creating open, personalized policies that align with the diverse aspirations of potential candidates.
Request
The Hanoi Electricity Corporation's current decentralization to power companies remains subsidized, resulting in a "give-and-give mechanism" that hinders the company's ability to innovate in planning, investment, and salary management To enhance operational efficiency and foster initiative, it is recommended that the Corporation implement a stronger decentralization strategy for its affiliated power companies.
The government should allow the Electricity of Vietnam Group to build its own system of salary and allowance ladders according to the specific characteristics of the
The electricity industry is a demanding sector that combines economic and technical services, characterized by high work pressure and challenging working conditions Given these factors, applying a uniform salary calculation method for state-owned companies is not suitable, as it fails to recognize the need for high-quality human resources in this field.
To enhance human resource management at Thuong Tin Co., Ltd and align with the company's growth objectives, an analysis of the current HR practices was conducted to identify strengths and weaknesses This evaluation is grounded in human resource management theory and tailored to the unique characteristics of the power industry workforce The proposed solutions aim to improve HR activities and include restructuring existing personnel, implementing effective recruitment strategies, developing policies to attract high-quality talent, and establishing comprehensive training and development programs, along with appropriate human resource utilization and treatment policies.
Thuong Tin Power Company is a state-owned enterprise that has contributed greatly to the development of the province In order to well implement the motto
Thuong Tin Power Company is committed to meeting the electricity needs of all customers with high-quality service to achieve substantial revenue, enabling it to fulfill state obligations and support employee benefits To enhance its performance, the company must focus on improvement and development across all operational areas, recognizing that its workforce is the key factor in driving business success However, the company currently faces challenges as labor productivity growth has not kept pace with the increasing demand for electricity.
The article evaluates the current human resource management practices at Thuong Tin Power Company, identifying key issues and areas for improvement It suggests actionable solutions to enhance human resource activities, aimed at developing a skilled workforce aligned with the company's strategic objectives Additionally, the author provides recommendations for both the State and Hanoi Electricity Corporation to support human resource development at Thuong Tin Power Company The proposed innovations in human resource management must encompass all stages, including recruitment, training, development, and retention For these strategies to succeed, strong commitment from leadership and management is essential.
The author has diligently worked on this thesis to assist the leadership of Thuong Tin Power Company in enhancing human resource management However, due to constraints in capacity and time, the thesis may have several limitations Constructive feedback and suggestions from the Council, teachers, and interested parties are welcomed to improve the thesis and ensure its effective application within the company.
1 Do Thi Thanh Tam (2013), Some solutions to improve human resource management at Saigon Shipping Service Trading Co., Ltd., Master's Thesis, University of Economics Ho Chi Minh City
2 Hoang Trong and Chu Nguyen Mong Ngoc (2008), Analysis of research data with SPSS, Hong Duc Publishing House, Ho Chi Minh City
3 John M Ivancevich (2010), Human Resource Management, translator Vo Thi Phuong Oanh, General Publishing House, Ho Chi Minh City
4 Decree No 205/2004/ND-CP dated December 14, 2004 of the Government, stipulating the system of salary scale, salary table and salary allowance regime in State-owned companies
5 Nguyen Dinh Tho (2011), Scientific research methods in business, Labor and Social Publishing House, Hanoi
6 Tran Kim Dung (2011), Human Resource Management, City General Publishing House Ho Chi Minh City, Ho Chi Minh City
7 Le Thi My Linh (2009), Human resource development in small and medium enterprises in Vietnam
8 Bui Thi Thanh et al (2014), The influence of human resource management practices
9 Thuong Tin Power Company, Report on business results for the years 2015, 2016,
10 Trieu Thi Oanh (2020), "Human Resource Management at Thai Nguyen Power Company", Master thesis, University of Economics & Business Administration - Thai Nguyen University
11 Man Thanh Tung (2016), "Solutions to improve human resource management at Can Tho City Power Company", Master thesis, Tay Do University
12 Tran Viet Vinh (2015), research on human resource management at Tra Vinh Power Company from 2012 to 2014
13 Nguyen Anh Sao Mai (2013), research human resource development and the results of this work at Quang Nam Power Company
14 Nguyen Thanh Tuan (2013), studying human resource management activities of Ninh Thuan Power Company
15 Nguyen Dang Thang (2013), research on training and human resource development activities of Hanoi Electricity Corporation in the period from 2009-2012
16 Tran Kim Dung (2009), Research results on human resource management practices in Vietnamese enterprises with 9 components
17 Nguyen Van Diem & Nguyen Ngoc Quan (2012), based on the renovation process of socio-economic management in Vietnam
18 Beer et al (1984), The Harvard model is considered a major turning point in the process of forming human resource concepts
19 Ramlall (2003), Measuring human resource management's effectiveness in improving performance
20 Marwat and Tahir (2011), human resource management practices and employee performance
21 Karunesh Saxena (2012), Human Resource is the most important asset for any organization and it is the source of achieving competitive advantage
22 Ozutku and Ozturkler (2009), he Determinants Of Human Resource Practices: An Empirical Investigation In The Turkish Manufacturing Industry
23 Richard L Daft (2016): “Human resource management activities include activities carried out to attract, develop and retain an effective workforce”
24 Michael Armstrong (2009), mentioned the Harvard model
25 Kane and Palmer (1995), Strategic HRM or managing the employment relationship
Nguyen Ngoc Quang is a graduate student specializing in business administration at the University of Economics, Vietnam National University, Hanoi He is currently conducting a research project focused on enhancing human resource management efficiency at Thuong Tin Power Company.
We kindly ask you to take a moment to respond to the questions below, as your insights are crucial for our study Your feedback will provide valuable data to enhance the human resource management practices at Can Tho City Power Company Please rest assured that all information collected will be used solely for research purposes and will remain confidential Thank you for your cooperation.
PART II CONTENTS OF THE SURVEY
For each survey question in each assessment content, please circle the appropriate number that you think the statement best reflects in the scale table below
1 The unit always has a long-term human resource forecasting policy 1 2 3 4 5
2 Departments have coordination with each other in human resource forecasting 1 2 3 4 5
3 The company only hires employees when necessary 1 2 3 4 5
4 Does the unit apply appropriate forms of recruitment advertising? 1 2 3 4 5
5 Clear and open recruitment policy 1 2 3 4 5
6 The job received when recruiting is right for you 1 2 3 4 5
7 Recruitment does not make it difficult 1 2 3 4 5
III About training and promotion opportunities
8 You are fully trained by the company to do your job well 1 2 3 4 5
The company always creates conditions for you to study to improve your knowledge and working skills
10 The current training programs in the company are relatively good 1 2 3 4 5
11 You clearly understand the necessary conditions for promotion 1 2 3 4 5
12 The company's promotion policy is fair 1 2 3 4 5
You are given a specific, detailed and clear description of the assigned work by the company
14 You clearly understand what the job is to pass or fail 1 2 3 4 5
15 You are encouraged to be proactive and creative at work 1 2 3 4 5
16 Your current job matches your abilities and strengths 1 2 3 4 5
Functions, duties between individuals or between departments do not overlap 1 2 3 4 5
18 Are employee evaluations conducted on a regular basis? 1 2 3 4 5
19 Is the current assessment method easy to implement? 1 2 3 4 5
20 Are the evaluation criteria specific, detailed and clear? 1 2 3 4 5
21 Is the employee evaluation fair, reasonable and accurate? 1 2 3 4 5
22 Does the evaluation help you improve and improve work efficiency? 1 2 3 4 5
VI About working conditions and environment
23 You are provided with all the means and equipment for the job 1 2 3 4 5
24 Your immediate supervisor has a constant interest in your work 1 2 3 4 5
25 You are supported and coordinated by other departments in the company 1 2 3 4 5
26 The working atmosphere in the company is fun and friendly 1 2 3 4 5
27 The current salary policy is reasonable 1 2 3 4 5
VII About salary, bonus and benefits
28 Your salary is commensurate with your dedication 1 2 3 4 5
29 Your current income level meets your living needs 1 2 3 4 5
30 Rewards and punishments are done fairly 1 2 3 4 5
Employees are entitled to full benefits according to the collective labor agreement
PART III GENERAL INFORMATION BILLION
Please provide some additional information by placing an X in the appropriate
2 Your age belongs to the group: rs old