managerial competency for middle managers at tin phat construction and commerce joint stock company

1 ACKNOWLEDGEMENT I would like to express my gratitude to all those who gave me the possibility to complete this thesis I would like to thank all the professors and lecturers of Business School - The National Economics University, who have equipped me with a lot of valuable knowledge and skill for my study I am deeply indebted to my supervisor Dr Lê Thị Lan Hương, whose help, stimulating suggestions and encouragement me in all the time of research for and writing this thesis My friends supported me in my research work I want to thank them for all their help, support, interest and valuable hints Especially I am obliged to CEO and executive board of Tin Phat company gave me many advices and direction to complete the research Especially, I would like to give my special thanks to my family who support me a lot during the most difficult time of MBA program and the compliment of its graduation thesis Thank you so much! TABLE OF CONTENTS 3 ABBREVIATION BOD Board of Directors BOM Board of Management DEPT Department HR Human Resources GD General Director TinPhat Co Tin Phat Construction and Commerce Joint Stock Company Vigecam Vietnam General of Agricultural Materials Corporation Limited LIST OT TABLES LIST OF FIGURES 5 EXECUTIVE SUMMARY Human resource is the most concern of almost companies in today’s rapid changing and uncertain business environment Organizations or companies might have more success if the whole function of Human resources was treated as a mirror image to the commercial brand, bringing executive management, marketing, operations, finance and the other critical functions together working under one organizational strategy Human resource is the main factor in the firm’s achievement Middle management is one important component of human resources that ensure management quality successfully Middle managers are responsible for implementing goals set by BOD Middle managers are also the connection between upper managers and staff They can motivate and assist their supervisors to achieve business objectives of the company They may also communicate upward, give suggestions and feedback to BOD Thus, the competency of middle managers is very significant However, in fact, managerial competencies of middle managers at Tin Phat Co not satisfy the needs of work Some requirements that the BOD have requested were not implemented sufficiently In order to help Tin Phat Co find out the sufficient way to enhance the managerial competencies of Middle managers, the author has selected a research topic on “Managerial Competency for Middle Managers at Tin Phat Co” The research objectives of this study are: (1)- To clarify the competency requirements of the middle managers at Tin Phat Co; (2)- To analyze the current middle managers competencies to find out the gap between required and current competencies of the middle managers at Tin Phat Co; and (3)- To recommend some solutions to restricting and to reducing the gap to helps middle managers to work more effectively Based on the Theoretical framework of competency and managerial competency, competency model, competency assessment process, in-depth 6 interviews for BOD was implemented to find out the required competency of Middle managers A survey with 5-mark-scale was designed to evaluate the needed managerial competencies For middle managers and the staffs, the same survey was carried out to indentify about the current managerial competencies of middle managers at Tin Phat Co This survey was expected to implement with 85 persons, but actually only 61 persons including 04 member of BOD, 18 middle managers and 39 subordinates were participated in this study The in depth - interview was done only for members of BOD They are Mr Đỗ Trọng Hiếu, chairman of BOD; Mr Đỗ Mạnh Hoàng, general director and 02 vice general directors, Mr Ngô Văn Thúy and Mr Trần Văn Huấn This research had identified the gap between the requirement and current managerial competencies of middle managers at Tin Phat Co based on 14 given factors Despite the fact that middle managers at Tin Phat Co were fulfilling their current job, the managerial competencies were still lower than the requirement The largest gap is in Communication Skill 1.40 points It means that Middle managers of Tin Phat Co need to improve their communication skill more to communicate effectively with the BOD and their subordinates The Attitude of the management of middle managers at Tin Phat Co is rated as satisfactory, however, short courses to update the needed information are required To resolve these gaps, several solutions have been proposed in training and non- training solutions to improve managerial competencies and bridge the current gaps The training solutions will focus on improving Middle managers competency The non-training solutions will focus on enhancing the HR system of the Tin Phat Co, as follows: Create dynamics for middle managers to work effectively at Tin Phat Co; Improving the criteria for evaluating managers of the company; Improving the standard of each positions, quality for planning, and recruitment 7 CHAPTER INTRODUCTION 1.1 Rationale Human resource is the most concern of almost companies in today’s rapid changing and uncertain business environment Organizations or companies might have more success if the whole function of Human resources was treated as a mirror image to the commercial brand, bringing executive management, marketing, operations, finance and the other critical functions together working under one organizational strategy The role of middle managers is very important with the development of a company Middle managers are responsible for implementing goals set by BOD Middle managers are also the connection between upper managers and staff They can motivate and assist their supervisors to achieve business objectives They may also communicate upward; give suggestions and feedback to BOD Since Middle managers are more involved in the day-to-day work of the company, they can provide valuable information to upper managers to help improve the business objectives as well as the quality of company’s human resources Tin Phat Construction and Commerce Joint Stock Company (Tin Phat Co) is a member of the Vietnam Agricultural Materials Corporation (Vigecam) The Tin Phat Co was founded at Hanoi and registered for business activities at the Hanoi Department for Planning and Investment Function and duties of the Tin Phat Co are investment performance of construction business serving the Agricultural sector and others Tin Phat Co’s objective is how to develop itself for being commensurate with the growing development of Agricultural Materials Corporation in accordance with economic transition into market economy of the country By 2018, the company will develop and stabilize the business in three main areas: construction services, investment and management of estate and materials business 8 To achieve this objective, one important factor is that the Tin Phat Co must improve the quality of human resources The Company's current human resources can only meet the requirement of current activities and for the long-term goals it seems impossible in terms of both quantity and quality As mentioned above, middle managers play a very important role in the company Therefore, assessing competencies of middle managers is an urgent and necessary task of Tin Phat Co This helps to create value not only for the company but also for individuals By assessing competencies of middle managers, Tin Phat Co can tackle with the problems that they are facing with and identify the performance of middle managers in comparison with the required competencies of the company Moreover, competency assessment can help middle managers to understand where they are and to identify their strengths and weaknesses objectively Being aware of this I would like to study the topic: “Managerial competency for middle managers at Tin Phat Construction and Commerce Joint Stock Company” in order to develop and propose some recommendations for the assessment and improvement of middle managers competencies By improving middle managers competencies, management competency of Tin Phat Co will also be improved to meet the required competency for a development of the company 1.2 Research objectives The research objectives of this study are: - To clarify the managerial competency requirements of the middle managers at Tin Phat Co; - To analyze the current managerial competencies of middle managers to find out the gap between required and current competencies of the middle managers at Tin Phat Co; - To recommend some solutions to improve managerial competencies for middle managers to work more effectively 9 1.3 Research questions In order to achieved the above objectives the thesis will address the following research questions: - Which are the requirements of competencies needed for middle managers at Tin Phat Co? - What are the current competencies of middle managers at Tin Phat Co? - What are the gaps between current middle managers competencies and requirement need at Tin Phat Co? - What are solutions to improving middle managers competencies? 1.4 Research methodology 1.4.1 Research process The research methodology could be summed up as the chart below: TinPhat Company’s objectives TinPhat Company middle manager’s job analysis objectives In-depth interview and survey BOD Survey BOD Survey middle managers Current managerial competency Survey staff Required managerial competency 10 10 Recommendations 1.4.2 Collecting data 1.4.2.1 Secondary data: The secondary data are collected based on the desk study from the following sources: - Theories, research methodology and approaches…are gained from MBA curriculum such as the Managing Human Resources: Staffing, Employee Development, Compensation, Governance; Research methods for business – a skill building approach etc - Roles, functions, responsibilities and activities of studied subjects are gained from Tin Phat Co’s annual reports, policies and legal documents regarding the tasks and mandates of Departments - Reference on scientific facts, information about socio, economy, labor markets and policies related to studied subjects are gained from newspapers, magazines and websites 1.4.2.2 Primary data a In-depth interview In-depth interviews were performed with 04 members of Board of Directors, including Chairman, CEO and 02 other members Information collected from in-depth interviews are: - General information about Tin Phat Co - Company’s performance during period 2010-2103 - Strategic and growth orientation of the company - Orientation for HR development company in the next 05 years 89 89 5.3.2 Planning, recruitment, appointment, dismissal and arrangement of officials in accordance with Competency framework The work of staff Planning: Currently, the planning for the leadership arrangement of the company was conducted according to general regulations but not by the working position in accordance with the official procedure that is for arranging an officer it needs the vote of the introduction of the immediate superior, and trust of subordinates and the approval of directorate of the Company In this process, the vote is so emotional and the general requirements which is not comply with the system of competency assessments of officers Therefore Competency Framework is a useful tool to introduce qualified officers to key positions, compared with the standard positions to choose from included in the planning accordingly To motivate develop themselves and occupation for the middle managers, it is necessary to promote the rotation of officials The rotation of officers to be made with true purpose and meaning of the transfer process The middle managers need to be trained in many different job positions, to know deeply in many professional expertise fields to be able to take on higher positions The rotation of officers should have a clear timetable and publicity The officer of rotation must be aware of the knowledge and skills that they have accumulated in their duties in rotation Appoint, dismiss and recruitment of cadres The appointment and dismissal of officials must be based on the approved planning In the process of the appointment, dismissal should be based on competence framework to assess the capacity of the appointed person before the appointment, conducted, the officers to be appointed should meet the demand for criteria of Competency Framework The recruitment of officers, should be reinforced to replace the old middle managers It is needed to base on the competency framework and officers planning for long-term for identifying 90 90 recruitment needs and planning to attract people with capacity in addition to key contingent of cadres of the company 5.3.3 Assessing work results according to Competency framework Tin Phat Co leaders need to improve the performance assessment of officers tasks, especially evaluate management work The evaluation of the results of management work is very difficult Currently, just 04 months on, we shall evaluate the results of the work of cadres The assessment was made based on the results of the assessment of superiors to subordinates and assessment results among colleagues Assessment results are sent to the company's trade union to synthesize and report to company leadership Thus, this method is not manifold assessment, that is in character of egalitarianism On other hand the assessment is not clear, lack of objectivity, which, not encourage employees to make efforts for achieving efficiency in their work For the above stated reasons, there is an urgent demand for improving the assessment of work results of officers Competency Framework is the most effective tool, providing specific criteria, easy to grasp to evaluate the results of work implementation For assessment the methods 360 degree must be used, assessment from superiors; reviews from subordinates and reviews from colleagues 5.3.4 Enhancing dynamics in their work for Middle managers - Creating the environment for middle managers career development, asserting itself and opportunities for promotion: Develop themselves needs of human beings is the need for self-actualization (the fifth floor of Maslow's hierarchy of needs) Therefore, to create an environment for the middle managers career development, assert themselves will unleash the potential of this team A practice is: Tin Phat Co has not paid adequate attention to creating the environment for middle managers career development, assert themselves 91 91 - The salary is one of the most important factors to motivate workers in general and the middle managers in particular Need to improve policies for salaries, associated revenue officials on the results of the work they perform - Develop business culture, continue the tradition of the company's precious solidarity, helping each other, to make the cohesion of middle managers in the company 5.4 The conditions for the implementation of solutions * Conditions for the Board of Directors of the Company - First, the BOD and company leaders have to realize the significance and the, role as well as the importance of the management capacity of the middle managers for the company's development On other side, company leaders must know that the status of the management competency of middle managers of the company is not satisfactory So, to implement their development strategy by 2018, Company's leaders must have strong determination, persistence in the implementation of the synchronous solutions to improve management competency, fill the gaps in the capacity of middle managers of the company - BOD and company’s leaders of governors of the Company have to know the importance of the Competency Framework And thus build up the mechanism in human resource management of the company in a synchronized and unified manner * Conditions for the General director of the Company - Company leaders have to take initiative in the establishing and using the budget for the training effectively; development of training programs to enhance management competency for managers, - Creating the conditions for middle managers of the company to attend the training and retraining courses held by the Company in order to improve the management capacity of this team - Need motivation to work more for general managers and middle managers in particular as: Promulgate policies to encourage staff career development, personal development Set the reasonable salary system It is needed the clear rules 92 92 for the arrangement and use of officers working properly a knack, creating an environment for staff to develop * Conditions for middle managers - Itself by middle managers must be aware of Task Manager, Only with sound recognition of their role they, will take initiative in learning for raising their management knowledge and skills - Those middle managers Tin Phat Co must recognize that improving management capacity not only to implement the strategic objectives of the company, but also to develop their own career - Those middle managers Tin Phat Co have to identify deficiencies in their management capacity than required From that, plans of individual learning, proactive and regularly improve knowledge and actively participate in training to improve their management capacity CONCLUSION In accordance with the development of the country and global economic integration, Tin Phat Co's market as well as the entire system of Vigecam have fundamental changes Some strengths of the company previously lost and new opportunities are opened Facing the new situation, to survive and grow, the Tin Phat Co must have strong reform in the development strategy and institutions In fact, BOD and the company's leaders have developed a business plan to developing the Company by 2018 This is a prudent plan, but also ambitious With this strategy, the company entered new markets those are market-oriented investment and estate management, by 2018, the three main activity areas of the company are: construction services, materials trading, investment and real estate management These three areas will have equivalent to the proportion in the revenue structure of the company In order to achieve the strategic objectives set out, in addition to the requirements for infrastructure and capital, one of the determinant factor is of human resources, especially professional managers, amongst which middle 93 93 managers should be focused on at first These officers have to implement the target of the company and represent, the connection between the employees and the company leadership The middle managers are those who can promote and supervise staff to accomplish tasks and be able to communicate, feedback and recommendations to company leadership, help to improve the business goals as well as improving the quality of human resources of the company Through the investigation result and the fact it is clear that the management competency of the middle managers of the Company can only meet the current needs and still have a big gap to the requirements of the future This paper proposes some solutions to overcome these weaknesses, improving the competency for the middle managers at Tin Phat Co The detection and the set out resolution of problems in the capacity of middle managers in the Tin Phat Co which were presented in this thesis are the author of its own, based on the deep research in Tin Phat Co, with the wish to contribute an approach to the problem./ 94 94 REFERENCE Vietnamese George T Milkovich, John W.Boudreau, Quản trị nguồn nhân lực, NXB thống kê, 2002 PGS.TS Trần Thị Vân Hoa, Vị trí vai trị cán cấp trung PGS.TS Trần Thị Vân Hoa, Phương pháp đánh giá lực lãnh đạo Giám đốc doanh nghiệp trình hội nhập quốc tế English Canadian Centre on Substance Abuse" Core Competencies for Canada's Substance Abuse Field version] 0", Final Report - November 2007 DNR Competency Based Hiring "Competency Based Hiring within the DNR", September 2007 Financial Times: "A competency Based Approach to Training and development" by Bernard Wynne and David Stringer, 1997 "Managerial competencies and the managerial performance appraisal process" Steven E Abraham; Lanny A Karns; Kenneth Shaw; Manuel A Mena, The Journal of Management Development; 2001; 20, 9/10; ABI/INFORM Global (pg 842) NYS Department of Civil Service and NYS Governor's Office of Employee Relations: "Competencies: Report of the competencies workgroup", September 2002 Richard S, Mansfield: "Building Competency Models: Approaches for HR Professionals" form the Human Resource Management, spring 1996 10 United States Offices of Personnel Management: "Looking to the future: Human Resources Competencies", Sep 1999 ... renamed joint stock company as Tin Phat Construction and Commerce Joint Stock Company (trade name Tin Phat Co), Vigecam to keep stakes 32 32 With the formation and development of such Tin Phat Co inherited... of Middle managers at Tin Phat Co (Source: Administration department, 2013) 3.2 Managerial competency requirement for middle managers at Tin Phat Co 3.2.1 Middle manager’s job analysis at Tin Phat. .. on managerial competency -Required managerial competencies of middle managers at Tin Phat Co -Current managerial competencies of middle managers at Tin Phat Co -Recommendation to improve middle