LV thạc sỹ_Improving performance appraisal system at vietnam productivity centre

ACKNOWLEDGEMENT Firstly, I would like to extend my gratitude and special thanks to Assoc Prof Dr … Last but not least, I would like to save heartfelt thanks for my family and friends who have always encouraged and given energy to me during the implementation time of the dissertation TABLE OF CONTENTS ACKNOWLEDGEMENT .1 ABBREVIATIONS LIST OF TABLES LIST OF FIGURES & CHARTS .4 EXECUTIVE SUMMARY .7 CHAPTER INTRODUCTION CHAPTER 11 THEORETICAL BACKGROUND ON 11 PERFORMANCE APPRAISAL 11 CHAPTER 35 CURRENT SITUATION OF THE PERFORMANCE APPRAISAL SYSTEM AT VIETNAM PRODUCTIVITY CENTRE 35 Table 3.3: Current Appraisal Form .48 CHAPTER 64 RECOMMENDATIONS FOR IMPROVING PERRFORMANCE APPRAISAL SYSTEM AT VIETNAM PRODUCTIVITY CENTRE (VPC) .64 CONCLUSION .83 APPENDIX 88 SURVEY QUESTIONNAIRES 88 APPENDIX 91 IN-DEPTH INTERVIEW QUESTIONS 91 APPENDIX 93 SUGGESSTION FOR THE JOB DESCRIPTION FOR CONSULTANT POSITION 93 APPENDIX 96 SUGGESTION FOR THE KEY PERFORMANCE INDICATORS (KPIs) FOR CONSULTANT POSITION 96 ABBREVIATIONS APO: Asian Productivity Organization DH: Division Head DIR: Managing Director HRM: Human Resource Management ISO: International Organization for Standardization JD: Job Description KPI: Key Performance Indicator MBO: Management by Objectives STAMEQ: Directorate for Standards, Metrology and Quality VPC: Vietnam Productivity Centre LIST OF TABLES ACKNOWLEDGEMENT .1 ABBREVIATIONS LIST OF TABLES LIST OF FIGURES & CHARTS .4 EXECUTIVE SUMMARY .7 CHAPTER INTRODUCTION CHAPTER 11 THEORETICAL BACKGROUND ON 11 PERFORMANCE APPRAISAL 11 CHAPTER 35 CURRENT SITUATION OF THE PERFORMANCE APPRAISAL SYSTEM AT VIETNAM PRODUCTIVITY CENTRE 35 Table 3.3: Current Appraisal Form .48 Table 3.3: Current Appraisal Form .48 CHAPTER 64 RECOMMENDATIONS FOR IMPROVING PERRFORMANCE APPRAISAL SYSTEM AT VIETNAM PRODUCTIVITY CENTRE (VPC) .64 CONCLUSION .83 APPENDIX 88 SURVEY QUESTIONNAIRES 88 APPENDIX 91 IN-DEPTH INTERVIEW QUESTIONS 91 APPENDIX 93 SUGGESSTION FOR THE JOB DESCRIPTION FOR CONSULTANT POSITION 93 APPENDIX 96 SUGGESTION FOR THE KEY PERFORMANCE INDICATORS (KPIs) FOR CONSULTANT POSITION 96 LIST OF FIGURES & CHARTS ACKNOWLEDGEMENT .1 ABBREVIATIONS LIST OF TABLES LIST OF FIGURES & CHARTS .4 EXECUTIVE SUMMARY .7 CHAPTER INTRODUCTION CHAPTER 11 THEORETICAL BACKGROUND ON 11 PERFORMANCE APPRAISAL 11 CHAPTER 35 CURRENT SITUATION OF THE PERFORMANCE APPRAISAL SYSTEM AT VIETNAM PRODUCTIVITY CENTRE 35 Table 3.3: Current Appraisal Form .48 Table 3.3: Current Appraisal Form .48 CHAPTER 64 RECOMMENDATIONS FOR IMPROVING PERRFORMANCE APPRAISAL SYSTEM AT VIETNAM PRODUCTIVITY CENTRE (VPC) .64 CONCLUSION .83 APPENDIX 88 SURVEY QUESTIONNAIRES 88 APPENDIX 91 IN-DEPTH INTERVIEW QUESTIONS 91 APPENDIX 93 SUGGESSTION FOR THE JOB DESCRIPTION FOR CONSULTANT POSITION 93 APPENDIX 96 SUGGESTION FOR THE KEY PERFORMANCE INDICATORS (KPIs) FOR CONSULTANT POSITION 96 ACKNOWLEDGEMENT .1 ABBREVIATIONS LIST OF TABLES LIST OF FIGURES & CHARTS .4 EXECUTIVE SUMMARY .7 CHAPTER INTRODUCTION CHAPTER 11 THEORETICAL BACKGROUND ON 11 PERFORMANCE APPRAISAL 11 CHAPTER 35 CURRENT SITUATION OF THE PERFORMANCE APPRAISAL SYSTEM AT VIETNAM PRODUCTIVITY CENTRE 35 Table 3.3: Current Appraisal Form .48 Table 3.3: Current Appraisal Form .48 CHAPTER 64 RECOMMENDATIONS FOR IMPROVING PERRFORMANCE APPRAISAL SYSTEM AT VIETNAM PRODUCTIVITY CENTRE (VPC) .64 CONCLUSION .83 APPENDIX 88 SURVEY QUESTIONNAIRES 88 APPENDIX 91 IN-DEPTH INTERVIEW QUESTIONS 91 APPENDIX 93 SUGGESSTION FOR THE JOB DESCRIPTION FOR CONSULTANT POSITION 93 APPENDIX 96 SUGGESTION FOR THE KEY PERFORMANCE INDICATORS (KPIs) FOR CONSULTANT POSITION 96 EXECUTIVE SUMMARY Vietnam has been going through a transition from a command economy to a "socialist-oriented market economy" since 1986 The "renovation" (Doi moi) policy began and wide-ranging economic reforms have been introduced since then Opening up the market brought both threats and opportunities Some businesses thrived in the new business environment and were able to improve productivity, product quality, and ultimately profit, others failed to meet the new challenges and declined A firm's success depends on its capacity to manage performance and improve the development of the skills and competencies of employees – creating a learning environment Due to this fact, it is essential to have a well-organized performance appraisal system Established in 1997, Vietnam Productivity Centre (VPC) is a state-owned science and technology organization which belongs to Directorate for Standards and Quality (STAMEQ), Ministry of Science and Technology, and whose headquarter is in Hanoi Against this background, the author decided to conduct a research on “Improving Performance Appraisal System at Vietnam Productivity Centre (VPC)” The research objectives are to identify requirements of performance appraisal system, to analyze the current performance appraisal system, and to propose recommendations for improving the performance appraisal system at the VPC The research covered different issues related to performance appraisal such as the scope, criteria and procedure of the performance appraisal system, and how the employees perceive the evaluation conducted by their concerned managers Different types of data sources were used to gather the data that include VPC’s report, regulations, procedures, job description, magazines, books and Internet (secondary data), and surveys and interviews (primary data) which covering different levels of employees of VPC, the survey questionnaires was directly distributed through VPC internal mailing system As a result, the author found some problems in the current performance appraisal system: 83 The program's purposes and procedures must be explained in advance - and explained enthusiastically - to everyone who will be affected by it Specific skills training should be provided if the new performance management procedure requires self-appraisal, multi-rater feed-back, upward appraisal, or individual development planning 4.4.5 Implement and assure on-going communication Start to carry out the improved performance appraisal system and assure ongoing communication by inviting users and other stakeholders to provide their comments and suggestions 4.4.6 Monitor and revise the program Audit the quality of appraisals, the extent to which the system is being used, and the extent to which the original objectives have been met (One of the great advantages of an online performance appraisal system is that all of these data are available instantaneously.) Provide feedback to management, appraisers and appraisees Train new appraisers as they are appointed to supervisory positions Actively seek and incorporate suggestions for improvement CONCLUSION Performance appraisal is a very important tool to evaluate and develop employees’ performance It is one of the most difficult human resources techniques 84 which need a special attention by the management The research had covered different issues related to performance appraisal such as the scope, criteria and procedure of the performance appraisal system, the managers’ roles in conducting an effective performance appraisal process and how the employees perceive the evaluation conducted by their concerned managers Vietnam Productivity Centre as the National Productivity Organization of Vietnam was chosen as a case study to conduct the research Different types of research methodology were used to gather the data that include quantitative, qualitative and comparative analysis such as surveys, interviews in order to study the effectiveness of the performance appraisal in order to study the performance appraisal implemented in the company and propose a more effective process The survey covered 58 employees from managers to consultants, and the interviews were with 15 employees again from different levels From the research, it can be deduced that performance appraisal in the light of providing just and adequate compensations, increasing employees’ satisfaction is a vital component of human resource management This is because it must be recognized that both the organization and its employees must be sensitive with their needs, thus, satisfying such needs would then lead to harmony and peaceful coexistence In this sense, the use of performance appraisals in the organization must be emphasized and stressed by the management to have more effective and efficient operations However, it cannot be denied that internal conflicts and issues can still be encountered due to individual differences and preferences For this reason, the keys for opening the door to the success of using performance appraisals in the light of providing just and adequate compensation is effective and efficient communication and open-mindedness This is because through effective communication, the management and the employees would have the appropriate channels for expressing their opinions and preferences On the other hand, through open-mindedness, employees and managers would be effectively receptive with accepting criticisms constructively 85 86 LIST OF REFERENCES Armstrong, M (1999), A Handbook of Human Resource Management Practice London: Kogan Page Bates, RA and Holton, EF (1995), Human Resource Management Review, Winter P267-88 Bernadin, H K, Kane, J S, Ross, S, Spina, J D and Johnson, D L (1995), Handbook of Human Resource Management, Cambridge MA Dudley, R and Lewis, J (2005) The McGraw-Hill Guide to the PMP Exam USA: McGraw-Hill Professional John Wiley and Sons (2002), Psychological Management of Individual Performance, Business & Economics Karen Collins (2007), Exploring Business, Prentice Hall Luis R Gomez–Meija, David B Balkin, Robert L Cardy (2006) Managing Human Resources, Fifth Edition, Pearson Education Australia PTY Limited Martin, D.C and Bartol, K.M (1998) ‘Performance Appraisal: Maintaining System Effectiveness’ Public Personnel Management, 27(2): 223+ Milkovich, G.T and Newman, J.M (2001) Compensation, 7th ed USA: Irwin/McGraw-Hill 10 Nguyen Ngoc Quan and Nguyen Van Diem (2007), Human Resources Management Textbook, National Economics University Publishing House 11 Richard L Daft & Dorothy Marcic (2001), Understanding Management, Fourth Edition, Thomson South-Western Publisher 12 Roberts, G.E (1998) ‘Perspectives on Enduring and Emerging Issues in Performance Appraisal’ Public Personnel Management, 27(3): 301+ 13 Scheneier, C E., Richard, W B., & Lloyd, S B (1986) Creating a performance management system, Training and Development Journal, 40(5), 74-79 14 Varavikova, E and Tulchinsky, T (2000) The New Public Health: An Introduction for the 21st Century USA: Elsevier 15 VPC Annual Report 2009, 2010 16 VPC Quality Management System Documents 87 17 VPC Working Regulations 18 Weightman, J (1999), Managing People IPD-UK 19 AlleyDog.com Address: http://www.alleydog.com/glossary/definition.php? term=Performance Appraisal [Accessed on 01/06/2011] 20 Appraisals.Naukrihub.Com Address: http://appraisals.naukrihub.com/360degree-performance-appraisal.html [Accessed on 10 July 2011] 21 Archer North & Associates (2006) Performance Appraisal [online] available from: http://www.performance-appraisal.com/intro.htm [Accessed December 01/06/2011] 22 Free online Course on Performance and Potential Appraisal Address: http://www.openlearningworld.com/books/Performance%20and%20Potential %20Appraisal/index.html [Accessed on 09 July 2011] 23 Guide to Managing Human Resources Address: http://hrweb.berkeley.edu/guides/managing-hr/managingsuccessfully/performance-management/concepts [Accessed on June 2011] 24 HumanResources.hrvinet.com Address: http://www.humanresources.hrvinet.com/performance-appraisal-methods/ [Accessed on 10 July 2011] 25 Open Learning World.com Address: http://www.openlearningworld.com/books/Performance%20and%20Potential %20Appraisal/index.html [Accessed on 10 July 2011] 26 Performance Management & Appraisal Help Center Address: http://performance-appraisals.org/experts/succobj.htm [Accessed on 11 July 2011] 27 Tick, Online Learning and Assessment; Introduction [online], Address: http://www.search.skillgate4.com/ [Accessed on 01/06/2011] 28 U.S Office of Personnel Management Address: http://www.opm.gov/perform/overview.asp [Accessed on 01/06/2011] 88 APPENDIX SURVEY QUESTIONNAIRES Please take a few minutes to complete this survey Your specific answers will be completely anonymous, but your views, in combination with those of others, are extremely important for me to conduct a research My research aims at improving the performance appraisal system in the VPC VPC's Strategic Development (Please circle one number for each statement) Strongly Disagree Disagree Neutral Agree Strongly Agree I have confidence in the leadership of VPC I know clearly about the development direction of VPC The VPC’s strategic development is suitable with my career development objectives Your suggestion for improvement:……………………………………………………… Current Job (Please circle one number for each statement) Strongly Disagree Disagree Neutral Agree Strongly Agree My background and qualifications is suitable with the current job My competence is suitable with the current job My health conditions are suitable with the current job My workload is reasonable I know how well I am performing job I am satisfied with the current job 89 Your suggestion for improvement……………………………………………………… Career Development Opportunities (Please circle one number for each statement) Strongly Disagree Disagree Neutral Agree Strongly Agree VPC provided as much initial training as I needed VPC provides as much ongoing training as I need I have opportunities for being promoted I have a clearly established career path at VPC Your suggestion for improvement: ………………………………………… Working Relations and Cooperation (Please circle one number for each statement) Strongly Disagree Disagree Neutral Agree Strongly Agree Work is assigned fairly in my department My supervisor treats me fairly and with respect Your suggestion for improvement:…………………………………………………… Working Environment and Condition (Please circle one number for each statement) Strongly Disagree Disagree Neutral Agree Strongly Agree My salary is fair for my responsibilities & performance If I good work I can count on making more money VPC gives enough recognition for work that's well done Your suggestion for improvement……………………………………………………… 90 Performance Appraisal System (Please circle one number for each statement) Strongly Disagree Disagree Neutral Agree Strongly Agree Performance appraisal system is fair Performance appraisal results accurately reflected my performance reflected my performance Performance appraisal criteria is communicated clearly Performance appraisal criteria is closely linked to my job description Appraisal process is suitable Appraisal method is suitable Does the performance appraisal system need to be improved? Yes No If yes, you have any suggestion for improvement? Other information: How long have you worked for the VPC? Less than one year  One year to less than three years  Three year to less than five years  Five years to less than ten years . Ten years or more  Thank you very much for your cooperation! 91 APPENDIX IN-DEPTH INTERVIEW QUESTIONS Interview with managers: 1.1 What are the mission /vision of the company? 1.2 What are the goals of the company? 1.3 If you have vision/mission and goals, how you communicate through your employees? 1.4 What are the human resource policy and strategy of VPC? 1.5 What are objectives of VPC for human resource management and development? 1.6 What are the current concerns or problems of the human resource management system in VPC? 1.7 What is your support and commitment for human resource activities in VPC? 1.8 What is the recruitment process in VPC? Who is involved in that process? 1.9 Do you conduct any training programs to your employees? If yes, how you train your staffs so that they can perform their job effectively? 1.10 How you monitor the performance of your employees? 1.11 How is performance appraisal carried out in VPC? And how is it related to salary and compensation? 1.12 What you think about the strengths and weaknesses of current performance appraisal system? 1.13 Are VPC’s employees satisfied with appraisal result? 1.14 Are you intended to improve the current performance appraisal system in particular and the human resource management system of VPC in general? 92 Interview with VPC consultants 2.1 How were you recruited to be a consultant? 2.2 Does VPC offer good training and development programs for employees? 2.3 Is career planning and development being discussed in your organization? If yes, how it does? 2.4 What you think about your performance, contribution and salary? Are you satisfied with current salary? 2.5 What you think about the process of current performance appraisal system? 2.6 What is the method of performance appraisal? Is it suitable? If not, you have any idea for improvement? 2.7 Do you think that the current performance appraisal system has problems? Does it need to be improved? 93 APPENDIX SUGGESSTION FOR THE JOB DESCRIPTION FOR CONSULTANT POSITION Overview of Position Title: Productivity and Quality Consultant Division: ……………………………………… Reporting to: Head of Division / Managing Director Delegatee: Another consultant in the same division Job Purpose Performing and executing training and consulting project, productivity-quality research project Main responsibility and tasks Responsibility Tasks Outcome Work directly with customer to execute the consulting project on productivity and quality - Receive the request of training and consultancy contracts, and research proposals - Confirm information and make work schedule - Plan and perform the assigned tasks - Working notice for customers Conduct training on productivity and quality - Directly conduct or participate as assistant trainer in public- and/or inhouse training as requested by the VPC - Training results and report Propose and implement productivity and quality - Identify customer demands and study and propose ideas about new product development - New proposal is approved - Prepare the advance notification about work schedule for customers - Perform training and consulting activities in accordance with the VPC’s regulations as well as the commitments to customers - Make report after each working session - Research Report 94 research projects - Lead or participate in new product development research projects of the VPC as assigned; Solve - Report to Head of Division about the - Periodically progress problems monthly progress and all problems arisen report occurred during the consulting and training project Support and provide information for sales and market development activities - Identify customer demands and requirements or directly participate in getting new customers Participate in promotion activities in VPC - Write articles for Productivity Newsletter or VPC’s website Coach and train new consultants - Coach, train and consultants as assigned - Information about customers - Customer comments / feedbacks - Identify customer satisfaction for improving service quality - Work report - Articles posted - Presentations, reports - Participate in compiling presentations and reports for workshops and seminars develop new - Work report Contribute to - Performance and conduct as assigned the common goals of the division - Work assignment - Work report Authority - Request for coordination and cooperation according to job requirements - Request, propose financial support, equipment needed according to VPC’ regulations 95 Work Relations Head of Consulting Divisions Service Development Division CONSULTANTS Customers Other divisions and individuals in the VPC 96 APPENDIX SUGGESTION FOR THE KEY PERFORMANCE INDICATORS (KPIs) FOR CONSULTANT POSITION Objective: - To perform and complete well the training and consulting projects on productivity and quality; To perform and complete research and development project as assigned No Contents Consulting projects in accordance with the certified professional (main professional and extended professional) Number of new projects to handle Number of finished projects Average number of projects per year Training activities Number of public courses Number of in-house courses New product research and development Number of research projects as leader Number of research projects as member Number of research projects as leader are accepted Number of research projects as leader are applied Professional development New professional is certified Professional development KPIs 97 Promotion activities Write articles for VPC’s website and the P&Q newsletter Write reports, presentations for workshops, seminars Coach and train new consultants Work quality Customers’ evaluation about training and consulting quality Number of man-days per projects Number of business trips per projects (for customers outside of Hanoi) Average lead time per project ... Performance Appraisal  Chapter – Current Situation of Performance Appraisal System at Vietnam Productivity Centre  Chapter – Recommendations for Improving Performance Appraisal System at Vietnam Productivity. .. PERFORMANCE APPRAISAL SYSTEM AT VIETNAM PRODUCTIVITY CENTRE 3.1 Vietnam Productivity Centre 3.1.1 Overview of Vietnam Productivity Centre Established in 1997, Vietnam Productivity Centre (VPC) is a state-owned... requirements of performance appraisal system at the VPC;  To analyze the current performance appraisal system at the VPC;  To propose recommendations for improving the performance appraisal system at the