Human resources development (HRD) practices in bac thang long and nam thang long industrial parks bases for a comprehensive HRD program for industrial parks in viet nam

HUMAN RESOURCE DEVELOPMENT (HRD) PRACTICES IN BAC THANG LONG AND NAM THANG LONG INDUSTRIAL PARKS: BASES FOR A COMPREHENSIVE HRD PROGRAM FOR INDUSTRIAL PARKS IN VIETNAM _ A DISSERTATION Presented to the Faculty of the Graduate School Southern Luzon State University, Lucban, Quezon, Philippines in Collaboration with Thai Nguyen University, Socialist Republic of Vietnam _ In Partial Fulfillment of the Requirements for the Degree Doctor of Business Administration _ By PHAM HAI HUNG (JO) December 2013 i APPROVAL SHEET ii CERTIFICATE OF ORIGINALITY This is to certify that the research work / dissertation entitled :"Human Resource Development (HRD) Practices in BacThang Long and Nam Thang Long Industrial Parks: Bases for Comprehensive HRD Program for Industrial Parks in Vietnam”, orally defended/ presented under the DBA Program jointly offered by Southern Luzon State University of the Republic of the Philippines and Thai Nguyen University of the Socialist Republic of Vietnam, embodies the result of original and scholarly work carried out by the undersigned This dissertation does not contain words or ideas taken from published sources or written works by other persons which have been accepted as basis for the award of any degree from other higher education institutions, except where proper referencing and acknowledgment were made Researcher/Candidate Date Orally Defended:October 7th 2013 iii ACKNOWLEDGMENT In grateful recognition and sincerest thanks for the encouragement, guidance and unselfish sharing of their knowledge, time, effort and skills, and for the untiring motivation that leads to the completion of this study, the researcher acknowledges the following: DR CECILIA N GASCON, Ph D., President of the Southern Luzon State University in the Republic of the Philippines, for her untiring effort and belief that this collaboration is possible, thus, enabling us to pursue the DBA degree; DR NGUYEN THANH HAI, Vice Director of the International Training Center, Thai Nguyen University of the Socialist Republic of Vietnam ,who was always available to help the researcher to complete his study; DR CONRADO L ABRAHAM,for his selfless guidance and assistance in helping her to stay on the right track; ITC staff, for providing the necessary research materials; Managers and Employees of BacThang Long and Nam Thang Long Parks,hisrespondents, for their patience and cooperation in answering the questionnaire and for other data given; My friends, for the love and support in one way or the other; And to all who have contributed to make this study a success Pham Hai Hung iv DEDICATION I dedicate this dissertation to my parents, who have always supported me withtheir continual love, and prayers; to my all relatives, who have given words of encouragement ; andto my wife, for her love, moral support, and understanding PHH v TABLE OF CONTENTS PAGE TITLE PAGE ……………………………………………………………… i APPROVAL SHEET ……………………………………………………… ii CERTIFICATE OF ORIGINALITY ……………………………………… iii ACKNOWLEDGEMENT ………………………………………………… iv DEDICATION ……………………………………………………………… v TABLE OF CONTENTS ………………………………………………… vi LIST OF TABLES ………………………………………………………… vii LIST OF FIGURES ……………………………………………………… ix ABSTRACT ………………………………………………………………… x CHAPTER I II III IV INTRODUCTION …………………………………………… Background of the Study ………………………………… Objectives of the Study …………………………………… Significance of the Study ………………………………… Scope and Limitations of the Study ……………………… Definition of Terms ………………………………………… REVIEW OF LITERATURE ……………………………… Conceptual Framework ………………………………….… 18 METHODOLOGY Locale of the Study ………………………………………… 20 Research Design …………………………………………… 20 Data Collection Method …………………………………… 20 Population, Sample and Sampling Technique ………… 21 Research Instrument ……………………………………… 21 Data Gathering Procedure ………………………………… 22 Statistical Treatment ……………………… …….…… 23 RESULTS AND DISCUSSIONS ………………………… 24 vi V SUMMARY OF FINDINGS, CONCLUSIONS AND RECOMMENDATIONS Summaryof Findings ……………………………………… 52 Conclusions ………………………………………………… 54 Recommendations ………………………………………… 55 REFERENCES ……………………… ………………………………… 57 APPENDICES …………………………………………………………… 59 Questionnaire ……………………………………………………… 60 CURRICULUM VITAE …………………………………………………… 66 vii LIST OF TABLES TABLE PAGE 4.1 Trainees of Training Program ……………………………… 33 4.2 Training Needs ………………………………………………… 36 4.3 Training Methods ……………………………………………… 38 4.4 Training Time ………………………………………………… 39 4.5 Training Content for Managers ……………………………… 42 4.6 Training Budget ……………………………………………… 44 4.7 Criteria of Training Evaluation……………………………… 46 4.8 Sample of Job Description …………………………………… 48 4.9 Sample of Evaluation Test …………………………………… 50 4.10 Summary of Comprehensive Training Program for Industrial Parks in Vietnam ………………………………… 51 viii LIST OF FIGURES FIGURE PAGE 2.1 The Needs Assessment Process …………………………… 10 2.2 Training Practices in BacThang Long and Nam Thang Long Industrial Parks: Bases for a Comprehensive Training Program for Industrial Parks in Vietnam……………………… 19 4.1 Gender Structure of Management Group …………………… 24 4.2 Age Range of Management Group …………………………… 25 4.3 Education Levels of Management Group …………………… 25 4.4 Gender Structures of Employees …………………………… 26 4.5 Age Structure of Employees …………………………………… 27 4.6 Education Levels of Employees ……………………………… 27 4.7 Purpose of Training Program in Vietnamese Companies … 29 4.8 Purpose of Training Program in Foreign Companies ……… 29 4.9 Trainees of Training program in Vietnamese Companies … 31 4.10 Trainees of Training Program in Foreign Companies ……… 31 4.11 Training Needs Assessment in Vietnamese Companies …… 34 4.12 Training Needs Assessment in Foreign Companies ……… 34 4.13 Training Methods in Foreign Companies …………………… 37 4.14 Training Methods in Vietnamese Companies ……………… 37 4.15 Training Content for Employees in Foreign Companies …… 40 4.16 Training Content for Employees in Vietnam Companies …… 40 4.17 Effectiveness of Training in Vietnam Companies …………… 45 4.18 Effectiveness of Training in Foreign Companies …………… 45 ix ABSTRACT Title of Research : HUMAN RESOURCE DEVELOPMENT (HRD) PRACTICES IN BAC THANG LONG AND NAM THANG LONG INDUSTRIAL PARKS: BASES FOR A COMPREHENSIVE HRD PROGRAM FOR INDUSTRIAL PARKS IN VIETNAM Researcher : PHAM HAI HUNG (JO) Degree Conferred : DOCTOR OF BUSINESS ADMINISTRATION Name and Address of Institution : Southern Luzon State University Lucban, Quezon, Philippines and Thai Nguyen University, Socialist Republic of Vietnam Adviser : Dr Conrado L Abraham Year Written : 2013 Training as a theory is an activity for the expansion of human capital within an organization through the development of both the organization and the individual to achieve performance improvement BacThang Long and Nam Thang Long industrial parksaretwolarge industrialZonesin Hanoiwherehundred ofcompaniesare operating.The companies have achievedgreat successes in their business so far However,the companies are alsofacingchallengesrelated tohuman resources For that reason the study:"Human Resource Development (HRD) Practices in BacThang Long and Nam Thang Long Industrial Parks: Bases for a Comprehensive HRD Program for Industrial Parks in Vietnam” was conducted The study aimed to identify aspects of the real situation of training practices in BacThang Long and Nam Thang Long industrial Parks The study x 52 ChapterV SUMMARY OF FINDINGS, CONCLUSIONS AND RECOMMENDATIONS From the output presented in the preceding chapter, this portion presents the summary of findings and recommendations of the study Summary The Manager group is a young group as shown by the number of of respondents who are in the age range of from 31 to 40 (57%), with the male accounting for 65% of the total respondents They also have a very strong educational background with 40 out of 40 respondents who possess Bachelor degrees, in which 15% got Master’s degrees On the other hand, the employee group is also a young group (61%) and dominated by male (55%) They also have a strong educational qualification with 211 out of 330 respondents havingvocational degrees (64%); 31 out of 330 respondents having bachelor’s degree (9%) and 72 out of 330 respondents have high school degree (22%) All companies provided training program for employees There is no significant difference in both types of companies when respondents of both companies considered “improving employees’ performance” to be the first purpose of training and “developing an organization” is the second When it comes to trainees, there is a big difference between Vietnamese and foreign companies In choosing trainees for training, foreign companies pay much attention to employees who produce products directly and decide on quality of products and productivity Conversely, 53 Vietnamesecompanies pay much less attention to workers but pay more attention to managers In the survey with managers, workers were chosen as the first priority with a weighted mean of 4.20, then, trainees groups, engineers and specialists, and managers were placed at the 4th position with a weighted mean of 3.7 There are similarities in training needs assessment given by respondent Most answers are based on the production and business plan with 91% for Vietnam companies and 89% for foreign companies The result of the survey on managers showed that Production and operation plan was also the first basis for assessing the training needs with very high level of agreement (weighted mean of 4.35), followed by technology with a weighted mean of 4.12 Intraining methods, on – the job training and coaching are the training methods that both Vietnamese and foreign companies most frequently used with 64% for Vietnamese companies and 79% for foreign companies A survey was implemented on managers’ opinion and three methods were agreed to be applied for employees including on the job training, coaching and self –study All the surveyed managers/potential companies managers Surveyed have training managers program for emphasized the necessary subjects for them in that there were three basic subjects which were leading according to the survey: management and leadership skills with a weighted mean of 4.85, foreign language with a weighted mean of 4.75, and computer application skills with a weighted of 4.32 Also, business legal 54 issues, finance management, human resource management were also necessarily equipped for managers/ potential manager According to the managers, the training budget from 5% - 8% of company’s wage fund generated a strongly agree response In theevaluation of training,there is a huge difference between two types of companies Respondents (71%) in surveyed Vietnam companies commented that companies did not conduct the evaluation of training Meanwhile, 67% of respondents in foreign companies perceived that their companies conducted the evaluation of training One more difference is effectiveness of training in surveyed companies presented that foreign companies have a more effectivetrainingprogram than Vietnamese companies Conclusions Based on the findings, the researcher came up with the followingconclusions: The respondents belong to the young generation, which are mostly male and have a high level of education Some also holds managerial positions based on their academic qualification When it comes to trainees, there is a big difference between Vietnamese and foreign companies In choosing trainees for training, foreign companies pay much attention to employees who produce products directly and decide on quality of products and productivity Conversely, Vietnamese companies pay much less attention to workers but pay more attention to managers 55 In training methods, on – the job training and coaching are the training methods that both Vietnamese and foreign companies most frequently used with 64% for Vietnamese companies and 79% for foreign companies Training programs include on the job training, coaching and self – study Recommendations Based on the findings and conclusions, the following are recommended: The human resource department in each company, where all areas of human resource management including training can be implemented may build aprogram based on recruitment and selection, job design, compensation and performance appraisal Training budget must be regulated and allocated in by cooperating with other departments Company has to emphasize human resource development, high effectiveness on training and meeting the employees’ needs for their performance and company’s business The organization, especially the HR department must identify the employees to be trained for competence on their present job, as contrasted with those who are being educated and developed for advancement Most companies in industrial parks applied job-related training methods, which are inexpensive In order to choose the appropriate training method for the companies, the first step is to identify the type of learning outcome that the companies want to implement Then, the 56 next step is to consider the extent to which the method facilitates learning and transfer of training, the cost related to development and the use of the method, and its effectiveness Training content for managers is one of the most widely offered and important forms of training It should be deliberate, long term, specific to the organization, and tied to the organization’s strategic plan to be responsive to the needs of the organization and those of the individuals being developed Management development program should be through needs analysis, which includes investigation of what managers in organization and the skills they need to perform effectively But, right now, providing soft-skills and regularly updated subjects for manager is urgent because they are lacking Evaluation of training and development is needed It can be evaluated base on cost-benefit model Education and development are difficult to evaluate Yet, the criterion for evaluation is whether the employee is placed on the job for which he is prepared.From the result of training evaluation, the leaders adjust shortcomings, mistake or ineffectiveness 57 REFERENCES Beardwell, I., Holden, L 1994 Human Resource Management London: Pitman Publishing DeSimone, R.L and Harris, D.M., 1998 Human Resource Development.Second Edition The Dryden Press New York: Marcourt Brace College Publishers Dion Greenidge, Philmore Alleyne and Brian Parris Department of Management Studies, University of the West Indies, Bridgetown, Barbados, and Sandra Grant Human Resources Department, University of the West Indies, Bridgetown, Barbados Journal of Small Business and Enterprise Development Vol 19 No 1, 2012 A comparative study of recruitment and training practices between small and large businesses in an emerging market economy: The case of Barbados Ejia, L.G, Balkin, D.B and Cardy, R 1995.Managing Human Resources United State : Prentice Hall Inc- A Simon & Schuster Company Finney, M I., Nov 1996 Degree that Make a People Difference.Human Resource Magazine Harris, M F., 1964 Education, Manpower and Economic Growth: Strategies of Human Resource Development New York: Mc Graw-Hill Hoang Viet Khang, 2010 Development and Human Resource Development in Vietnam.Ministry of Planning and Investment Le Thanh Ha, 2011.Human Resource Management Publisher: Labor and Social Affaires Longenecker, Clinton O VOL 39 NO.7 2007, pp 361-367, Q Emerald Group Publishing Limited, ISSN 0019-7858 The training practices of resultsoriented leaders Miller, Janice A., SPHR and Diana Assessment.Reviewed July 2002 M Osinski.Training Needs Montana, Patrick J and Bruce H Charnov (2000), Training and Development Management, Barron's Educational Series.pp 225 Nadler, L and Nadler, Z., 1989 Developing Human Resources.Third Edition San Francisco: Jossey-Bass Publishers Nguyen Huu Lam, 2010 Future of Vietnamese - Japanese Bilateral Economic and Human Resources Exchange 58 Nguyen Thi Minh Phuoc, 2011 Human Resource Development: Experiences of some foreign countries Phillips, J.J., 1997 Return on Investment: In training and performance improvement programs Houston: Gulf Publishing Company Vo Xuan Tien, 2010 A number of issues on the Training and Development of human resource.Journal of science and technology No 5(40) Werner, Jon M and Randy L Desimone.Human Resource Development Publisher: En Joyner Wright, P.C., Mondy, R.W and Noe, R.M 1996 Human Resource Management Canada: Prentice Hall Canada Inc Xuan Ngoc November 2011 Low investment for Human Resource Development in Vietnam Vnexpress Journal Zheng, Connie and Paul Hyland School of Management and Information Systems,Central Queensland University, Queensland, Australia, and Claudine Soosay School of Management, University of South Australia, Adelaide, Australia Journal of European Industrial Training Vol 31 No 6, 2007 pp 472-494 Training practices of multinational companies in Asia 59 APPENDICES 60 Appendix A QUESTIONNAIRE The purpose of this survey is to study training practices in Bac Thang Long and Nam Thang Long industrial Parks I would be very pleasant if you could spend few minutes on filling this questionnaire Your feedback is very important and your answers will be kept in strict confidential Thank you Instruction: Please circle your answer SECTION A Which of the following age category are you? 30 - Under 30 41-50 31-40 51-60 Please indicate your gender Male Female Your position in your company is: Director Technicians/specialist Vice director Engineer Unit head (vice head of unit) Worker Office staff Other Education level Vocational school University Secondary school Master degree High school 5.Doctoral degree Which type of company are you working for? Vietnam company Foreign company 61 SECTION B I PART I (FOR MANAGERS AND EMPLOYEES) 1.Does your company provide training program: - For new employees? No Yes - For existing employees? Yes No Training and development are perceived by your company to: Improve the employee’s performance in their job, thus improving the performance of the company, Allow employees to achieve promotion and follow a chosen career path, thus leading to job satisfaction Allow employees to acquire professional and further education qualifications (long-term training) Develop an organization in order to adapt with changes Others (please specify)……………………………………………………………… What type of employees usually received training? Managers, supervisors Office staff Engineers Workers Specialists, technicians Others 4.The determination of training needs is based on: The demand of employees Technology changes Strategy of the board of director Others (Please specify)…………………… 3.Production and operation plan (Market, product expansions…) What subjects for employees need to focus on? 62 Training how to work in a team English training Technical skills training Communication training Computer application skills Presentation skill training Human relation at work 6.What methods of trainingare used? On-the-job training Job rotation (job instruction training) Self-study (using manual, videotapes) Coaching Others………………………… Computer aided instruction 7.Is the valuation of training conducted in your company? Yes No If yes, is theevaluation of training efficient in your company? Very low Low Medium High Very high PART II (FOR MANAGERS) Please tick the box which corresponds to your answer The scale below gives you the range of your answer Rank Interval Verbal interpretation 4.20– 5.00 Strongly agree 3.40– 4.19 Agree 2.60 – 3.39 Uncertain 1.80 – 2.59 Disagree 1.00 – 1.79 Strongly Disagree 63 What type of employees should receive training? Item Q1 Managers, supervisors Q2 Engineers Q3 Specialists Q4 Office staff Q5 Workers 5 The determination of training needs to be based on: Item Q1 The demand of employees Q2 Strategy of the board of director Q3 Production and operation plan (market, product expansions…) Q4 Technology changes What are methods of trainingthat should be used in your company? Item Q1 On -the job -training ( job instruction training) Q2 Coaching Q3 Computer aided instruction Q4 Job rotation Q5 Self-study Q6 Others 64 A training course should take: Item Q1 - months Q2 – months Q3 - months Q4 – 12 months Q5 Longer than year 5 5 What criteria are used to evaluate trainingeffectiveness: Item Q1 Satisfaction of trainees to training program, trainers, facility for training Q2 Knowledge and skills achieved after the training Q3 Certificate of achievement Q4 Productivity and quality improvement Ratio of company’s wage fund for training and development should be given: Item Q1 1% - 4% Q2 5% - 8% Q3 9% - 12% Q4 13% -16% Q5 Over 16% 65 7.Management development program in your company is designed to develop potential executive/ managers for the future which need to focus on: Item Q1 General knowledge of management Q2 Marketing management Q3 Financial management Q4 Production management Q5 Human Resource management Q6 Project evaluation Q7 Business legal issues Q8 Foreign language Q9 Negotiation skill Q10 Management and leadership skills Q11 Computer application skills 66 CURRICULUM VITAE I INDIVIDUAL INFORMATION Full Name : PHAM HAI HUNG English Name : Jo Sex : Male Date of Birth : October 16th, 1976 Place of Birth : Ha Noi Address : Phu Son Commune Ba Vi District, Ha Noi City Cell phone : 0936.1581.82 E-mail : hungpham_76@yahoo.com.vn Professional Qualification : Master of Public Administration Occupation : Teacher/Lecturer Office : Insurance faculty of The University of Labor and Social Affairs (ULSA) Governing Office : II The University of Labor and Social Affairs TRAINING BACKGROUND Time of Training Name of University 1997 - 2001 Hanoi National University 2005-2008 National Academic of Public Administration 2009 present Studying in Southern Luzon State University and Thai Nguyen University Faculty Type of Training Formal Business Administration Degree/ Certificate Bachelor Formal Master Formal Doctor ... resource development in Bac Thang Long and Nam Thang Long industrial Parks Figure 2.2.Training Practices in Bac Thang Long and Nam Thang Long Industrial Parks: Bases for a Comprehensive Training Program. .. Research : HUMAN RESOURCE DEVELOPMENT (HRD) PRACTICES IN BAC THANG LONG AND NAM THANG LONG INDUSTRIAL PARKS: BASES FOR A COMPREHENSIVE HRD PROGRAM FOR INDUSTRIAL PARKS IN VIETNAM Researcher : PHAM... that reason the study: "Human Resource Development (HRD) Practices in BacThang Long and Nam Thang Long Industrial Parks: Bases for a Comprehensive HRD Program for Industrial Parks in Vietnam” was