Some solutions to improve human resource management at Dai Viet construction company

i TRệễỉNG ẹAẽI HOẽC Mễ TP. HCM UNIVERSITE LIBRE DE BRUXELLES HO CHI MINH CITY OPEN UNIVERSITY SOLVAY BRUSSELS SCHOOL MBAVB3 LE THI ANH TUYET SOME SOLUTIONS TO IMPROVE HUMAN RESOURCE MANAGEMENT AT DAI VIET CONSTRUCTION COMPANY PROJECT MASTER IN BUSINESS ADMINISTRATION (Part-time) Tutors Name: Dr. Nguyen Van Ngai Ho Chi Minh City (2012) ii UNDERTAKINGS I hereby certify that I have myself studied this research applied the academic knowledge gained from the MBA course and through the discussions with my professors The project has been conducted based on the real information and context of Dai Viet Construction Company who is the case study in this project. I undertake that this is my own research project, all information, data and survey results are true and never announced in any other research projects. Ho Chi Minh City, March 2012 Le Thi Anh Tuyet iii ACKNOWLEDGEMENT First of all, I would like to express my deepest and sincerest gratitude to my tutor Dr. Nguyen Van Ngai for his invaluable guidance, suggestion and encouragement to complete this research study. Many thanks are also extended to the director and all managers and staffs of Dai Viet Construction Company for their generous support and help during the time of data collection for completing this project. My grateful acknowledgement is extending to the Universiteù Libre De Bruxelles-Solvay Business School and Open University Of HCMC, which provided me a chance to follow this Part time MBA program. In addition, I am delighted to express my gratitude for all the faculty members and staff at Open University, and Board of Coordinator for their support. Also I am indebted to all of my classmates, especially to my group 05 who supported me during my study at HCMC-OU. Finally, my delighted gratitude is for my family who are always my endless backing and inspiration for me to overcome the challenge during the study. v TABLE OF CONTENTS List of Abbreviations vii List of Charts viii List of Tables ix CHAPTER I. INTRODUCTION 1 1.1 Background 1 1.2 Rationale Of The Study 1 1.3 Problem Statement 2 1.4 Objectives Of The Study 2 1.5 Research Methodology 2 1.6 Scope Of The Study 3 1.7 Structure 3 CHAPTER 2. LITERATURE REVIEW 6 2.1 Human Resource Planning 6 2.2 Job Description: 7 2.3 Human Resource Recruitment and Selection 7 2.4 Training and People Development 11 2.5 Performance Appraisal System 12 2.6 Employee Motivation 13 2.7 Workflow 15 2.8 Compensation and Benefit 15 CHAPTER 3. HUMAN RESOURCE MANAGEMENT PRACTICE IN DAI VIET 16 3.1 Construction Industry Overview 17 3.2 Background of Dai Viet 19 3.3 Human Resource at Dai Viet 24 CHAPTER 4. FINDINGS AND DATA ANALYSIS 27 4.1 Profile of Respondents 27 4.1.1.Age 27 4.1.2.Gender 28 vi 4.1.3.Marital status 29 4.1.4.Education 30 4.1.5.Position 31 4.1.6Seniority 32 4.2.Human Resource Management Practices in Dai Viet 33 4.2.1 Human Resource Planning 33 4.2.2 Job Description 33 4.2.3 Staff Recruitment and Selection 34 4.2.4 Training and People Development 36 4.2.5 Compensation and Benefit 37 4.2.6 Employee Motivation 38 4.2.7 Performance Appraisal System 40 4.2.8 Job Satisfaction 42 4.2.9 Workflow within Dai Viet 43 4.2.10 Staff Workload 44 4.3.Correlation Between Staff’s Profile And HRM Factors 45 CHAPTER 5.CONCLUSIONS AND SOLUTIONS 50 5.1.Conclusions 50 5.2.Solutions 51 REFERENCE 59 APPENDIX 60 Appendix 1: Questionnaire (English) 60 Appendix 2: Bng câu hi 66 vii LIST OF ABBREVIATIONS, TABLES AND CHARTS List of Abbreviations ¬ C&B : Compensation and Benefit ¬ CV : Curriculum Vitae ¬ HCMC : Ho Chi Minh City ¬ HRM : Human Resource Management ¬ KPI : Key Performance Indicator ¬ KPA : Key Performance Areas ¬ MBO : Management By Objectives ¬ PMS : Performance Management System ¬ SME : Small Medium Enterprise ¬ SPSS : Statistical Package for the Social Sciences viii List of charts Figure 1-1: Framework of the Research 3 Figure 2-1: The Appraisal Process 13 Figure 3-1: GDP over the years 17 Figure 3-2: Organization chart 20 Figure 4-1: Respondents’ Age 28 Figure 4-2: Respondents’ Gender 29 Figure 4-3: Respondents’ marital Status 30 Figure 4-4: Respondents’ Educational background 31 Figure 4-5: Respondents’ Position status 32 Figure 4-6: Respondents’ Seniority 33 Figure 4-7: Problem in Job description 34 Figure 4-8: Recruitment and Selection Policy in Dai Viet 35 Figure 4-9: Issues around Recruitment and Selection 35 Figure 4-10: Suggestion on Training and Development 35 Figure 4-11: Satisfaction on C&B schemes 40 Figure 4-12: Motivation Policy in Dai Viet 39 Figure 4-13: Employee's expectation on Motivation 39 Figure 4-14: The importance of Performance Appraisal in Dai Viet 40 Figure 4-15: Quality of Performance Appraisal System in DAI VIET 40 Figure 4-16: Problems in Workflow 44 Figure 4-17: Main Causes of Heavy Workload Problem 44 Figure 4-18: Heavy Workload on Staff's age 45 Figure 4-19: Heavy Workload with Seniority 46 Figure 4-20: Motivation with Staff's length of work 50 Figure 4-21: Motivation Degree on Staff's Marital Status 47 Figure 4-22: Satisfaction on Educational Background 47 ix List of Tables Table 3-1: Income statement of Dai Viet from 2008 to 2011 22 Table 3-2: Productivity of Employees 23 Table 3-3: Seniority structure of employees 24 Table 3-4: Age structure of employees 24 Table 3-5: Gender structure of employees 25 Table 3-6: Educated level structure of employees 25 Table 3-7: Marital status structure of employees 25 x ABSTRACT In the growing economy, construction industry is remarkably developing in Vietnam during the last decade despite of certain difficulties. Dai Viet is an SME specializing in construction contracting civil works, industrial projects require high quality, building-design, construction project management, investing in the construction of residential area projects. In a perfect competition, it is really difficult for the company to grow up stably. In recent years, operating result of the company insignificantly increases lower than the average of in the industry and also lower than the target of the company. Moreover, Human Resource Management in Dai Viet has been in problem. Many employees in Dai Viet feel that they are overload and they do not feel comfortable at work. This state can lead to low productivity and low morale of the staffs, so they are always in stress and they want to quit their job. This problem not only occurs to workers but also to high positions and in all departments. The labor turnover increases every year and become more serious in year 2011. There is a need to study what happened, why and how to improve the situation. The researcher conducts a research to have a helicopter view on the current situation of the company via methodology: qualitative interview of some managers as well as quantitative survey to 62 employees of Dai Viet. The finding analysis indicates that the company has a problem in Human Resource Management in which job dissatisfaction, low motivation, unclear job description, complicated workflow, ineffective recruitment-selection, lack of communication and lack of workforce are the main causes that lead to low productivity of staffs and not good business result in the organization. Also, performance appraisal system of the company is not really proper and effective. Further to the above findings and analysis, some feasible recommendations to improve the situation in long and short term should be raised. 1 Introduction CHAPTER I INTRODUCTION 1.1 Background Human resource is one of the most important assets in the company among traditional sources such as capital, technology, location. Attracting and retaining good employees is vital for the sustainable development of an organization. It is a basis for its competitive advantage. Therefore, Human Resource Management is much more integrated and strategically involved in management of the company. Human Resource Management examines what can or should be done to make people both more productive and more satisfied with their working life, and ultimate contribute to the goal achievement of the company… 1.2 Rationale Of The Study Human Resource Management is really a crucial factor of general management in the company. The importance of job analysis and design, staffing, assessing performance, training and development, compensating, motivating, rewarding and empowering the workforce is recognized by the managers in every units and functional areas of an organization. In construction market, there is a tough competition in attracting skilled technical employees of consulting, architectural design, civil engineering and construction management among companies. They are a valuable asset of the organizations. Thus Human Resource Management in a construction company like Dai Viet nowadays is more and more important. However, since the establishment of the company in 2007, Human Resource Management in Dai Viet has been under performance and the management board has not yet taken it strictly serious. The employees work with low productivity and low morale. In accompany with that, a high staff turnover is also bad for Dai Viet as it can impact on the atmosphere of the company. The staying employees feel unstable and depressed. Therefore it is necessary and urgent to conduct a research to understand what has happened and find out a way to improve the current situation. [...]... management practices of Dai Viet company in order to find out root causes - To suggest some solutions to improve Human Resource Management of Dai Viet 1.5 Research Methodology Methodology applied in this study is descriptive statistical analysis Data required for this research study: ¬ Secondary data: Reviewing the Dai Viet Personnel Policy, Dai Viet' s annual report, Human Resource Management textbooks,... Motivation 2.7 Performance Appraisal System 2.8 Competency Improvement Chapter 3: Human Resource Management Practice at Dai Viet 3.1 Construction Industry Overview 3.2 Background of Dai Viet 3.2.1 Dai Viet s Vision and Mission 3.2.2 Dai Viet Strategic Plan 3.2.3 Operational Network 3.2.4 Organizational Chart 3.2.5 Roles and Responsibilities of Departments 3.2.6 Financial Statement of Dai Viet 3.3 Human. .. Income statement of Dai Viet from 2008 to 2011 Source: Dai Viet Company Human Resource Management practice in Dai Viet 23 The income statement shows that the revenue of Dai Viet keeps increasing around 30% over the years It is a really good indicator The company started business in 2007 and business result in the first year 2008 was negative This is understandable and explainable for a newly born SME company. .. Productivity from human resource management is unstable and still in low level 3.3 Human Resource at Dai Viet Since the establishment, Dai Viet already realized the importance of human factor to the company development and paid much attention to training and developing this kind of human asset with granted a large budget According to the information from HR Manager, the annually turnover rate is high around... plan and then consolidate those plans into organizational human resource planning Human resource and line managers should link their human resource planning to the long-term strategic plan of the organizations and this is one of the solutions in order to get collaboration from other line managers to achieve the plan Failing to do this will lead to problems in staffing for the organization in the future... a total compensation program may be based on several factors including membership in the organization, seniority, or other elements (Mondy et al., 2002) Human Resource Management practice in Dai Viet 17 CHAPTER III HUMAN RESOURCE MANAGEMENT PRACTICE IN DAI VIET 3.1 Construction Industry Overview During the last decade, accompany with the growth of the GDP in Vietnam, the construction industry in Vietnam... opportunities to attend the trainings that they think necessary to them and is also beneficial to the company or organization Staff motivation is a very important factor for the organization because it can make the project of the organization succeeds or fails In order to motivate employees, the organization’s management has to put themselves in their workers' shoes, but there are no universal rules on how to. .. recommendation to the senior management team of the company In a competitive and volatile market, besides traditional sources and means such as capital, technology or location, firms are more paying attention to innovative sources, one of which is human resource Thus effective human resource management is viewed increasingly as a source of competitive advantage (Dunford & Snell, 2001) Human Resource Management. .. price associated with their projects Human Resource Management practice in Dai Viet 20 As a result, the company can create more added-value to their customers and they would also make a higher profit about 8% and annual growth rate more than 15%- in 3 years Until year 2008, most of Dai Viet s clients are State-owned companies From 2009 the company has more focused on foreign and private sector instead... effectiveness of people at work (Ivancevich and Glueck, 1983) Human Resource Management examines what can or should be done to make people both more productive and more satisfied with their working life, and ultimately contribute to the goal achievement of the organization In other words, the purpose of Human Resource Management is to improve productive contribution of people to the organization in an ethical . THI ANH TUYET SOME SOLUTIONS TO IMPROVE HUMAN RESOURCE MANAGEMENT AT DAI VIET CONSTRUCTION COMPANY PROJECT MASTER IN BUSINESS ADMINISTRATION (Part-time) Tutors Name: Dr. Nguyen. resource management practices of Dai Viet company in order to find out root causes. - To suggest some solutions to improve Human Resource Management of Dai Viet 1.5 Research Methodology Methodology. of some managers as well as quantitative survey to 62 employees of Dai Viet. The finding analysis indicates that the company has a problem in Human Resource Management in which job dissatisfaction,