Improving managerial competencies of middle managers at vinh phuc power company

ĐẠI HỌC QUỐC GIA HÀ NỘI KHOA QUẢN TRỊ VÀ KINH DOANH - NGUYỄN HÀ THU IMPROVING MANAGERIAL COMPETENCIES OF MIDDLE MANAGERS AT VINH PHUC POWER COMPANY NÂNG CAO NĂNG LỰC QUẢN LÝ CỦA CÁN BỘ QUẢN LÝ CẤP TRUNG TẠI CÔNG TY ĐIỆN LỰC VĨNH PHÚC LUẬN VĂN THẠC SĨ QUẢN TRỊ KINH DOANH HÀ NỘI - 2019 ĐẠI HỌC QUỐC GIA HÀ NỘI KHOA QUẢN TRỊ VÀ KINH DOANH - NGUYỄN HÀ THU IMPROVING MANAGERIAL COMPETENCIES OF MIDDLE MANAGERS AT VINH PHUC POWER COMPANY NÂNG CAO NĂNG LỰC QUẢN LÝ CỦA CÁN BỘ QUẢN LÝ CẤP TRUNG TẠI CÔNG TY ĐIỆN LỰC VĨNH PHÚC Chuyên ngành: Quản trị kinh doanh Mã số: 60 34 01 02 LUẬN VĂN THẠC SĨ QUẢN TRỊ KINH DOANH NGƯỜI HƯỚNG DẪN KHOA HỌC: PGS.TS NGUYỄN NGỌC THẮNG HÀ NỘI - 2019 DECLARATION The author confirms that the research outcome in the thesis is the result of author‟s independent work during study and research period and it is not yet published in other‟s research and article The other‟s research result and documentation (extraction, table, figure, formula, and other document) used in the thesis are cited properly and the permission (if required) is given The author is responsible in front of the Thesis Assessment Committee, Hanoi School of Business, and the laws for above-mentioned declaration ACKNOWLEDGEMENT First and fore most I offer my sincerest gratitude to all Professors of Hanoi School of Business, Vietnam National University (HSB, VNU) for giving me knowledge that is used as basement for my thesis I am heartily thankful to my supervisor, Assoc Prof Dr Nguyen Ngoc Thang whose precious patience, valuable guidance and support from the initial to the final level enabled me to develop an understanding of the subject, thereby applying knowledge into real cases throughout my thesis Without his encouragement and effort, this thesis would not have been completed or written One simply could not wish for a better or friendlier supervisor Secondly, I would like to express my big thank to managers and employees at Vinh Phuc Power Company (PC Vinh Phuc) for their persistent support and contribution to put all knowledge into real cases throughout this thesis Last but not least, I offer my regards and blessings to my family, my friends and all of those who supported me in any respect during the completion of the thesis CONTENT ABBREVIATIONS i LIST OF TABLES ii LIST OF FIGURES iii INTRODUCTION .1 Rationale .1 Aims of research Objects of research Scope of research Research methodology 5.1 Research process 5.2 Data collection 5.3 Data analysis method .8 Research structure CHAPTER 1: THEORETICAL BACKGROUND ON MANAGERIAL COMPETENCY OF MIDDLE MANAGERS .10 1.1 Nature of managerial competency 10 1.1.1 Definition of managerial competency 10 1.1.2 Middle managers and role of middle managers 11 1.1.3 Management function of middle managers 12 1.2 Literature review on competency in general 19 1.3 Managerial competency assessment for middle managers 22 1.3.1 Managerial competencies components .22 1.3.2 Managerial competency assessment methods for middle managers 25 CHAPTER 2: REQUIRED AND CURRENT MANAGERIAL COMPETENCIES OF MIDDLE MANAGERS AT PC VINH PHUC .30 2.1 General introduction of Vinh Phuc Power Company (PC Vinh Phuc) 30 2.1.1 Establishment and development history .30 2.1.2 Business performance 30 2.2 Middle manager's job analysis at PC Vinh Phuc .32 2.3 Respondent‟s profile 34 2.3.1 Gender 34 2.3.2 Age 34 2.3.3 Qualification .35 2.3.4 Working seniority .36 2.4 Analyzing required managerial competency for middle managers at PC Vinh Phuc 36 2.5 Analyzing current managerial competency of middle managers at PC Vinh Phuc 43 2.5.1 Analyzing current knowledge of middle managers at PC Vinh Phuc 43 2.5.2 Analyzing current skills of middle managers at PC Vinh Phuc 51 2.5.3 Analyzing current attitudes of middle managers at PC Vinh Phuc 66 2.6 Summary of findings 72 2.6.1 The gaps between required and current managerial competency of middle managers at PC Vinh Phuc 72 2.6.2 Causes of gaps 79 CHAPTER 3: SOLUTIONS AND RECOMMENDATIONS TO IMPROVE MIDDLE MANAGERS’ MANAGERIAL COMPETENCIES AT PC VINH PHUC 81 3.1 The HR development orientation in five next years at PC Vinh Phuc 81 3.2 Training solution to improve the managerial competency for middle managers at PC Vinh Phuc 82 3.2.1 Applying new methods for training 82 3.2.2 After training assessment 87 3.3 Non - training solutions to improve managerial competency for middle managers at PC Vinh Phuc .89 3.3.1 Standardizing competency framework .89 3.3.2 Planning, recruitment, appointment, dismissal and arrangement of officials in accordance with the competency framework 89 3.3.3 Assessing work results according to the competency framework 90 3.3.4 Enhancing dynamics in their work for middle managers 91 3.4 Conditions for the implementation of solutions 91 3.4.1 Conditions for the Board of Directors of PC Vinh Phuc 91 3.4.2 Conditions for the General Director of PC Vinh Phuc .92 3.4.3 Conditions for middle managers 92 CONCLUSION AND LIMITATION 93 Conclusion 93 Limitation 94 APPENDIX 1: QUESTIONNAIRE FOR ASSESSING REQUIRED MANAGERIAL COMPETENCIES .97 APPENDIX 2: QUESTIONNAIRE FOR ASSESSING CURRENT MANAGERIAL COMPETENCIES 101 ABBREVIATIONS BOD : Board of Directors CMIS : Customer Management Information System EVN : Vietnam Electricity f : Frequency HR : Human Resources HSB : Hanoi School of Business IT : Information Technology KSA : Knowledge, Skills, Attitudes PC Vinh Phuc : Vinh Phuc Power Company VNU : Vietnam National University i LIST OF TABLES Table 1: Survey‟s respondents Table 2: No of survey‟s responses for required competencies Table 3: No of survey‟s responses for current competencies Table 2.1: Competency framework for middle managers at PC Vinh Phuc .37 Table 2.2: Required competency of middle managers at PC Vinh Phuc 41 Table 2.3: Current knowledge of middle managers at PC Vinh Phuc 44 Table 2.4: Current skills of middle managers at PC Vinh Phuc .51 Table 2.5: Current attitudes of middle managers at PC Vinh Phuc 66 Table 2.6: Overall assessment of managerial competence of the middle managers at PC Vinh Phuc 73 Table 3.1: Proposed content of training courses .84 Table 3.2: Kirkpatrick model for evaluation effectiveness of training programs .87 ii LIST OF FIGURES Figure 1: Research process Figure 1.1: Definition of Competency 23 Figure 2.1: Respondents‟ profile by gender 34 Figure 2.2: Respondents‟ profile by age 34 Figure 2.3: Respondents‟ profile by qualification 35 Figure 2.4: Respondents‟ profile by working seniority 36 Figure 2.5: Current situation of Fundamental knowledge 45 Figure 2.6: Current situation of knowledge of the market and the law 47 Figure 2.7: Current situation of Knowledge of management 49 Figure 2.8: Current situation of Time management skills 54 Figure 2.9: Current situation of Solving problem and making decision 56 Figure 2.10: Current situation of Consulting skills 58 Figure 2.11: Current situation of Monitoring skills 59 Figure 2.12: Current situation of Teamwork skills 60 Figure 2.13: Current situation of Communication skills 61 Figure 2.14: Current situation of HR skills .63 Figure 2.15: Current situation of Change management skills 64 Figure 2.16: Current situation of Aware of authorities .67 Figure 2.17: Current situation of Attitudes to the work 69 Figure 2.18: Current situation of Attitudes to self-improvement and personal development 70 Figure 2.19: The gap between required and current managerial competencies of middle managers at PC Vinh Phuc 76 iii 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 The 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 senior managers; reviews from employees and reviews from colleagues 3.3.4 Enhancing dynamics in their work for middle managers Firstly, it is important to make 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 of Maslow's hierarchy of needs) Therefore, to create an environment for middle managers career development, assert themselves will unleash the potential of this team Actually, PC Vinh Phuc has not paid adequate attention to creating the environment for middle managers career development, assert themselves Secondly, the salary is one of the most important factors to motivate workers in general and middle managers in particular Need to improve policies for salaries, associated revenue officials on the results of the work they perform In addition, it is of real need to develop business culture, continue the tradition of PC Vinh Phuc‟s precious solidarity, helping each other, to make the cohesion of middle managers in PC Vinh Phuc 3.4 Conditions for the implementation of solutions 3.4.1 Conditions for the Board of Directors of PC Vinh Phuc First, the BOD and senior managers have to realize the significance and the, role as well as the importance of the management competency of middle managers for the organization's development On other side, senior managers must know that the status of the management competency of middle managers of PC Vinh Phuc is not satisfactory So, to implement their development strategy by 2020, the leaders must 91 have strong determination, persistence in the implementation of the synchronous solutions to improve management competency, fill the gaps in the competency of middle managers of the organization Then the BOD and leaders of PC Vinh Phuc have to know the importance of the competency framework And thus build up the mechanism in human resource management of the organization in a synchronized and unified manner 3.4.2 Conditions for the General Director of PC Vinh Phuc Senior managers 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 They should also create the conditions for middle managers of PC Vinh Phuc to attend the training and retraining courses held in order to improve the management competency of this team It needs the 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 for the arrangement and use of officers working properly a knack, creating an environment for staff to develop 3.4.3 Conditions for middle managers 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 at PC Vinh Phuc must recognize that improving management competency not only to implement the strategic objectives of their organization, but also to develop their own career Those middle managers at PC Vinh Phuc have to identify deficiencies in their management competency than required From that, plans of individual learning, proactive and regularly improve knowledge and actively participate in training to improve their management competency 92 CONCLUSION AND LIMITATION Conclusion In accordance with the development of the country and global economic integration, the power market as well as the entire system of Vietnam have fundamental changes Some strengths of PC Vinh Phuc in particular and other state-owned enterprises previously lost and new opportunities are opened Facing the new situation, to survive and grow, PC Vinh Phuc must have strong reform in the development strategy and institutions In fact, the BOD and the organization's leaders have developed a business plan to developing the company by 2020 This is a prudent plan, but also ambitious With this strategy, the company entered new markets those are market-oriented investment, by 2020, the main activity areas of the company 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 managers should be focused on at first These officers have to implement the target of PC Vinh Phuc and represent the connection between the employees and the leaders Middle managers are those who can promote and supervise staff to accomplish tasks and be able to communicate, feedback and recommendations to senior managers, 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 middle managers of PC Vinh Phuc 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 middle managers at PC Vinh Phuc 93 The detection and the set out resolution of problems in the competency of middle managers in PC Vinh Phuc which were presented in this thesis are by the author, based on the deep research in PC Vinh Phuc, with the wish to contribute an approach to the problem Limitation Due to time constraint, and limited knowledge as well as experience in human resources management of the author, a further study and comprehension of human resources management in general and competency improving in particular should be needed and supplemented for a better analysis 94 LIST OF REFERENCES English Abraham, S E., Kams, L A., Shaw, K., & Mena, M A (2001), „Managerial competencies and the managerial performance appraisal 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European Psychologist, 7, 192–202 16 United States Offices of Personnel Management (1999), „Looking to the future: Human Resources Competencies‟, Sep 1999 17 Wynne, B & Stringer, D (1997), Financial Times: „A competency Based Approach to Training and Development‟ Vietnamese Công ty Điện lực Vĩnh Phúc (2016 – 2018), Báo cáo thường niên, Biên bản, Website, vv Milkovich, G T., & Boudreau, J W (2002), Quản trị nguồn nhân lực, NXB thống kê PGS TS Trần Thị Vân Hoa (2000), Vị trí vai trị cán cấp trung, Tài liệu, Viện Quản trị Kinh doanh, ĐHKTQD PGS TS Trần Thị Vân Hoa (2000), Phương pháp đánh giá nâng lực lãnh đạo Giám đốc doanh nghiệp trình hội nhập quốc tế, Tài liệu, Viện Quản trị Kinh doanh, ĐHKTQD 96 APPENDIX QUESTIONNAIRE FOR ASSESSING REQUIRED MANAGERIAL COMPETENCIES Dear ladies and gentlemen My name is Nguyen Ha Thu Currently, I am completing the master thesis on “Improving managerial competencies of middle managers at Vinh Phuc Power Company” Could you please spend sometimes to share your opinion about required managerial competencies of middle managers at Vinh Phuc Power Company? Your information will be kept secret and will not be used for any other purposes rather than the purposes of this research Please indicate your opinion for the related factors through the following statements Instruction for answer: Please complete the questionnaire by circling by an (O) to what extent each of the following statements is true according to your personal opinion Each statement is measured by the scale from to 5, which meaning is as follows: 1: Very poor 4: Good 2: Poor 5: Very good 3: Fair Feedback evaluation on required managerial competencies of middle managers Attributes for evaluation on managerial Required level competencies of middle managers I Knowledge 1.1 Fundamental knowledge Knowledge of the strategies and trend of development of industry and the organization Knowledge of specialized regulations 97 5 Knowledge of the correspondence between specialized Knowledge of economic, political, social factors Knowledge of the laws, international practices Knowledge of the advanced management science Starting from practice to find a specific solution Skill to plan and implement the work plan Skill in managing work in priority Skill in authorizing, assigning Skill to control schedule and evaluate the work results Skill to complete work in schedule with high quality Gather information Thinking to the system Identifying problem Analyzing and identifying causes Providing a solution Skill to detect emerging issues Skill in suggesting appropriate solution knowledge and their work 1.2 Knowledge of the market and the law 1.3 Knowledge of management II Skills 2.1 Time management skills 2.2 Solving problem and making decision 2.3 Consulting skills 2.4 Monitoring skills 98 Skill in linking and coordinating action 5 Skill in fullest capacity of members Skill in guiding the company to complete the target Skill in achieving implementation progress Skill in making decisions Skill in presenting Skill in influencing others Skill to listen and absorb feedback Encourage and promote the strengths of staff Evaluate the work of staff Develop the employee‟s career Solidarity, brings staff together 5 5 Aware of good citizen Identify proper authorities and role in the work Skill in using available capacity and resources for the critical stages Skill in operating and monitoring activities 2.5 Teamwork skills 2.6 Communication skills 2.7 HR skills 2.8 Change management skills Able to carry out different works in the constantly changing environment Able to work with many types of people with different personalities Adaption with the change III Attitudes 3.1 Aware of authorities 99 Take care to people and communities Like the jobs and work Ready to cope with challenges Proper behavior, good attitude 3.2 Attitudes to the work 3.3 Attitudes to self-improvement and personal development Discipline, self-control Honesty, responsibility and self-development 5 Eager to learn for self-improvement of knowledge and skills Draw experience from themselves and from others THANH YOU FOR YOUR COOPERATION! 100 APPENDIX QUESTIONNAIRE FOR ASSESSING CURRENT MANAGERIAL COMPETENCIES Dear ladies and gentlemen My name is Nguyen Ha Thu Currently, I am completing the master thesis on “Improving managerial competencies of middle managers at Vinh Phuc Power Company” Could you please spend sometimes to share your opinion about current managerial competencies of middle managers at Vinh Phuc Power Company? Your information will be kept secret and will not be used for any other purposes rather than the purposes of this research Part I: Respondent profile Please tick an “X” in the most appropriate box There should be only one answer for each question Gender  Male  Female Age  < 30  30 – 40  40 – 50  > 50  University  College  Others Qualification  Postgraduate Working seniority  < years  – 10 years 101  > 10 years Part II: Detailed analysis Please indicate your opinion for the related factors through the following statements Instruction for answer: Please complete the questionnaire by circling by an (O) to what extent each of the following statements is true according to your personal opinion Each statement is measured by the scale from to 5, which meaning is as follows: 1: Very poor 4: Good 2: Poor 5: Very good 3: Fair Feedback evaluation on current managerial competencies of middle managers Attributes for evaluation on managerial Current level competencies of middle managers I Knowledge 1.1 Fundamental knowledge Knowledge of the strategies and trend of development 5 Knowledge of economic, political, social factors Knowledge of the laws, international practices 5 of industry and the organization Knowledge of specialized regulations Knowledge of the correspondence between specialized knowledge and their work 1.2 Knowledge of the market and the law 1.3 Knowledge of management Knowledge of the advanced management science 102 Starting from practice to find a specific solution Skill to plan and implement the work plan Skill in managing work in priority Skill in authorizing, assigning Skill to control schedule and evaluate the work results Skill to complete work in schedule with high quality Gather information Thinking to the system Identifying problem Analyzing and identifying causes Providing a solution Skill to detect emerging issues Skill in suggesting appropriate solution 5 5 Skill in fullest capacity of members Skill in guiding the company to complete the target Skill in achieving implementation progress II Skills 2.1 Time management skills 2.2 Solving problem and making decision 2.3 Consulting skills 2.4 Monitoring skills Skill in linking and coordinating action Skill in using available capacity and resources for the critical stages Skill in operating and monitoring activities 2.5 Teamwork skills 103 Skill in making decisions Skill in presenting Skill in influencing others Skill to listen and absorb feedback Encourage and promote the strengths of staff Evaluate the work of staff Develop the employee‟s career Solidarity, brings staff together 5 5 Aware of good citizen Identify proper authorities and role in the work Take care to people and communities Like the jobs and work Ready to cope with challenges Proper behavior, good attitude 2.6 Communication skills 2.7 HR skills 2.8 Change management skills Able to carry out different works in the constantly changing environment Able to work with many types of people with different personalities Adaption with the change III Attitudes 3.1 Aware of authorities 3.2 Attitudes to the work 3.3 Attitudes to self-improvement and personal development Discipline, self-control Honesty, responsibility and self-development 104 Eager to learn for self-improvement of knowledge and skills Draw experience from themselves and from others 5 THANH YOU FOR YOUR COOPERATION! 105 ... knowledge of middle managers at PC Vinh Phuc 43 2.5.2 Analyzing current skills of middle managers at PC Vinh Phuc 51 2.5.3 Analyzing current attitudes of middle managers at PC Vinh Phuc 66... middle managers at Vinh Phuc Power Company Vinh Phuc Power Company (PC Vinh Phuc) is a unit of Power Company No - Electricity of Vietnam (now Northern Power Corporation - Electricity of Vietnam)... Required competency of middle managers at PC Vinh Phuc 41 Table 2.3: Current knowledge of middle managers at PC Vinh Phuc 44 Table 2.4: Current skills of middle managers at PC Vinh Phuc .51 Table