Enhancing the quality of human resource training activities at hanoi regional branch of deposit insurance of vietnam

Master’s Thesis Enhancing the quality of human resource training activities at Hanoi regional Branch of Deposit Insurance of Vietnam Student name: Pham Phuc Dang Khoa Class: FBA08 Supervisor: Ph.D Nguyen Thi Kim Oanh MASTER’S THESIS ON FINANCE – BANKING - INSURANCE Hanoi, 2018 INTRODUCTION Background to the topic Objectives Scope and Methodology Structure Chapter 1: Theoretical foundation of the quality of human resources and human resource training 10 1.1 Human resources and human resource quality in a business 10 1.1.1 Human resources and human resource quality in a business 10 1.1.1.1 Human resources 10 1.1.1.2 Human resources in a business 12 1.1.1.3 Quality of human resources in a business 12 1.1.1.4 Improve the quality of human resources in a business 13 1.1.2 Human resources quality criteria within a business 14 1.1.2.1 Physical strength 14 1.1.2.2 Intellectual abilities 15 1.1.3 The contents of human resources quality improvement activities within a business 16 1.1.3.1 Human resources planning 16 1.1.3.2 Recruitment, utilization and evaluation of employees 17 1.1.3.3 Employee treatment policy 19 1.1.3.4 Training and Human resources development 20 1.1.4 Factors influencing the improvement of human resources within a business 21 1.1.4.1 External factors 21 1.1.4.2 Internal factors 22 1.2 Overview of human resource training 27 1.2.1 Definition of human resource training 27 1.2.2 The difference between training and human resources development 28 1.2.3 The need for human resources training 29 1.2.4 Benefits of human resources training 30 1.2.4.1 For the organization 30 1.2.4.2 For the employees 32 1.2.5 Criteria to assess the development of human resources training activities 33 1.2.5.1 Trainees’ responses 35 1.2.5.2 Education and training effectiveness 35 1.2.5.3 Trainees’ attitudes 36 1.2.5.4 Results of training courses 36 1.3 Experiences in developing activities to improve human resources around the world 37 1.3.1 Experience in organizing development program for human resources training of the Federal Deposit Insurance Corporation (FDIC) 37 1.3.2 Samsung Group 41 Chapter 2: Analyzing the situation of human resource training activities at Deposit Insurance of Vietnam – Hanoi branch 45 2.1 Overview of DIV 45 2.1.1 The establishment and development of DIV 45 2.1.2 Organizational structure, functions and duties of the Deposit Insurance of Vietnam 47 2.1.3 Overview of DIV operations 50 2.2 Introduction to DIV Hanoi branch and its current human resources training activities 53 2.2.1 Introduction to DIV Hanoi branch 53 2.2.2 Human resources training activities of the Branch 56 2.3 Evaluating the actual quality of human resource training activities60 2.3.1 Advantages 60 2.3.2 Disadvantages and Causes 61 Chapter 3: Solutions to improve the quality of human resources training of DIV Hanoi Branch 64 3.1 Operation directions of DIV in Hanoi 64 3.1.1 Operation directions of DIV 64 3.1.2 Operation directions of DIV Hanoi Branch 65 3.2 Solutions and recommendations to improve the effectiveness of training human resources for DIV and DIV Hanoi Branch 66 3.2.1 For DIV 66 3.2.1.1 Complete the steps in human resources training process 66 3.2.1.2 Develop a detailed and accurate assessment system for training effectiveness 68 3.2.2 Recommendations for DIV Hanoi Branch 69 3.2.2.1 To build a separate training model for Hanoi Branch 69 3.2.2.2 To build a model for maintaining high quality human resources for the Branch 70 3.2.2.3 Finalize the evaluation of work performance in order to arrange and use post- training human resources 70 3.2.2.4 Build up corporate culture of the Branch 71 APPENDIX 73 Appendix 01 75 Appendix 02 76 Appendix 03 78 Appendix 04 80 ABBREVIATIONS No Abbreviation Explanation DIV Deposit Insurance of Vietnam FDIC Federal Deposit Insurance Corporation ILO International Labor Organization PCF People‟s Credit Funds Master of Finance, Banking and Insurance Southeast Asia Student: Pham Phuc Dang Khoa Class: FBA8 Supervisor: Dr Nguyen Thi Kim Oanh Thesis: Solutions to improve the quality of human resource training activities of DIV Hanoi Branch INTRODUCTION Background to the topic Human resource administration is an essential factor of every organization, including functions to resolve human resource and human resource related issues such as searching, recruiting, conflict resolving, incentives, training and education efficiency… On the other hand, basic operations of human resource administration include training and development, as suggested by Grubb, T (2007): “Training is short-term educational process utilizing a systematic and organized procedure by whichnon-managerial personnel learn technical knowledge and skills for a definite purpose.Development, in reference to staffing and personnel matters, is a long-term educationalprocess utilizing a systematic and organized procedure by which managerial personnel learnsconceptual and theoretical knowledge for general purpose.” Basically, the development focuses mostly on decision making improvement and communication skills broadening for medium and high-level managerial personnel, whilst training leans towards lower level personnel In fact, human resource training activities have currently become essential elements implemented by modern organizations since they benefit both the organization and their recruited employees As for employees, they can boost productivity and quality, enhance personal skills as well as enrich knowledge, pushing employees to their greater potentials with corresponding skills and capacities As for the organization, it helps to diminish any weak links within the organization, improve employee loyalty, and create a competitive environment amongst capable employees whose work scopes span across multiple areas and who can respond to any requirements when the organization changes its policies or strategies Established in 2000, DIV is the only business founded to carry out deposit insurance activities under the supervision of the State Bank of Vietnam After 17 years of operation and development, with headquarter and branches nationwide, the organization has gathered a number of achievements in the fields of banking, finance and insurance DIV assumes the development of the banking system goes hand in hand with underlying risks, therefore the organization has made it their mission to build up depositors‟ trust, ensure the stability of the finance system and facilitate more effective financial tools to prevent the banking system from collapsing Especially, the Hanoi branch of DIV is one of the most effective and long-standing branches, operating in the field of deposit insurance across 12 Northern provinces of Vietnam To achieve the aforementioned objectives, it requires from the branch a solid and efficiently-structured financial capacity as well as an abundant and high-quality human resource Although human development activities have a great impact on the development and operation of any company, these activities are often considered unimportant in Vietnam Therefore, my thesis aims to explain the relationship between human resource training and business development, by collecting data and statistics from Hanoi branch as an example for analysis to propose solutions to improve human resource activities at the branch In particular, Vietnam Deposit Insurance Hanoi Branch is one of the most effective and longest-standing branches of deposit insurance in the 12 northern provinces of Vietnam To achieve the above objectives, the branch requires a solid financial capacity and an efficient structure, abundant human resources and qualifications Although human development activities have a great impact on the development and operation of any company, these activities are considered unimportant in Vietnam Therefore, my research in this thesis aims to explain the relationship between human resource training and business development, by collecting data and reporting data from the Hanoi branch as an example to propose solutions to increase human resources at the branch Objectives The objectives of the thesis are as follows: (i) to illustrate the importance of human resource training in operations; (ii) to analyze the conditions for training activities at DIV Hanoi Branch; (iii) to propose solutions and recommendations to improve human resource training activities within the branch Scope and Methodology The research scope will focus on training activities for particular professional tasks, such as monitoring and inspecting at DIV headquarter and DIV Hanoi branch The methodology incorporates qualitative and quantitative in data collection and reporting Data sources are taken from both external and internal sources External data includes books, past studies, internal reports and journals, legitimate and reliable websites, government legal documents and decrees Internal data includes documents and statistics provided by the branch in particular and DIV in general Structure The thesis is divided into main chapters Chapter 1: Theoretical foundation of the quality of human resources and human resource training Chapter 2: Analysis of the quality and human resource activities at DIV Hanoi Branch Chapter 3: Solutions to improve the quality of human resources training for DIV Hanoi Branch Chapter 1: Theoretical foundation of the quality of human resources and human resource training 1.1 Human resources and human resource quality in a business 1.1.1 Human resources and human resource quality in a business 1.1.1.1 Human resources Resources for economic development are vital for the development of a country These resources include: natural resources, capital, science and technology, human , among which human resources are the most important and decisive to the economic growth and development of each and every country A country, though abundant of 10 - The cost of training courses must be based on the long-term goal set out to calculate the most accurate training budget for each specific year and in specific period - In order to sustain the company's training budget and to be able to carry out training activities as planned, the company needs to set up a separate fund for this training as it is also a regular and continuous operation of the company Only when this activity goes well does the company‟s production and business operations achieve effectiveness - In order to use the training budget appropriately, the company should have a policy to deduct a small portion of the bonus for trainers and trainees who have excellent performance in the course to increase their teaching and learning effectiveness 3.2.1.2 Develop a detailed and accurate assessment system for training effectiveness The evaluation of training activities of the organization after each training course has not been conducted regularly and new skills are only assessed through grades, certificates, diplomas and subjective observation of supervisors The branch has insufficiently carried out the evaluation of the effectiveness of the training Therefore, in the coming time, the company needs to build a good feedback system to ensure the reliability of the results Training effectiveness is assessed at different levels for each aspect and tool The company can refer to the evaluation model of Dr Donald Kirkpatrick: Level Aspect of Concerns Issue of Concerns (1) Learners‟ reaction How did Tool the Questionnaire learners like the course? (2) Obtained knowledge and skills What 68 did the Exam, simulations learners learn from the course? (3) Application to work How did learners what the Measures of work apply performance they learn into their work? (4) The business‟s obtained results What did company the Analyzing spent obtain budgets and obtained from investing into returns training? Table 3.1: Dr Donald Kirkpatrick’s evaluation model With this model, the company must develop specific criteria for evaluation tools For instance, to measure the work performance, the branch must draw up a scoreboard for each performance criterion and appraise the score for each criterion, in order to gauge how many employees are scoring in order to see what they have done well The formulation and evaluation of this criterion is carried out by the training officer and the department heads Levels (1) and (2) can be assessed immediately during training, while levels (3) and (4) can only be achieved after the training The effectiveness assessment at the branch or head office is done on the basis of certificates and qualificationsafter each course In order for this assessment to accurately and objectively reflect the learning outcomes of the participants, the organizer should consider a number of issues such as: the amount of knowledge of the training course and exams 3.2.2 Recommendations for DIV Hanoi Branch 3.2.2.1 To build a separate training model for Hanoi Branch At present, the training of human resources is still planned and implemented by the Company The branch only recommends staff to attend training courses and attend short courses 69 3.2.2.2 To build a model for maintaining high quality human resources for the Branch Training and improving professional skills for staff is only an important factor initially Competent staff does not necessarily work well Motivation will serve as incentives for workers to be more passionate and dedicated in their job To this, the company should apply the following forms: - Staff who have been trained must have their jobs arranged according to their qualifications and capabilities Branches should make employees aware of their significance to the organization, raise their awareness of their values, and then form their own initiative and self-awareness in participating in training, thereby establishing a proactive attitude in working as well as training Therefore, it is necessary to create motivation to stimulate laborers, encourage workers to be more enthusiastic in work and to have a better sense of accomplishment - Strengthening rewarding activities for employees: Rewards and promotion opportunities for those who successfully complete training programs, have high academic results, have initiatives to bring benefits to the Branch But to improve the training effectiveness, those who not complete the training will have their bonuses deducted in the month or at the end of the year, or have their eligibility for training cancelled if they are unwilling to attend training 3.2.2.3 Finalize the evaluation of work performance in order to arrange and use posttraining human resources The branch can use the graphical rating scale In this method, the evaluator will give an assessment of the performance of the object based on his or her subjective opinion on a scale from low to high To develop the methodology, the following steps should be taken: - Formulate evaluation criteria: Depending on the nature of the task, the criterion builder may submit build appropriate criteria based on job descriptions, standards 70 of work performance or direct communication with an experienced worker about that job - Divide the criteria into levels corresponding to a certain point For a more detailed assessment, the evaluation sheet can be designed in more details by briefly describing the evaluation criteria and each rating - Send form to all units for dissemination to staff Periodically (possibly quarterly or monthly) the evaluator, possibly the head of the unit, based on the level of performance will mark the corresponding rating on the form Combination score can be total score or average score Depending on the type of work, to ensure the specificity of the work, we can attach appropriate weight norms - The evaluation form are collected, if there is a large difference in the evaluation results of the employee and the manager, it should be re-evaluated or discussed to reach an agreement - Inform workers about the results of the assessment to provide information on their performance status to help them improve themselves - Store results in employee profiles as the basis for personnel decisions: promotion, training… 3.2.2.4 Build up corporate culture of the Branch In a business, recruited employees may come from different cultures or religions with different personalities When these people are working in the same environment, those elements are expressed in various form to gradually form a standard system defining work methods within each organization This phenomenon has given rise to a new concept that is "corporate culture." It can be said that civilization and culture are the basic characteristics, a style, and a sign of identification of the company Therefore, for the branch, in order to have a specific and traditional culture, it is necessary plan and implement in the long term The branch need specific goals, action plans, values of 71 civilization and culture to be educated and popularized to every employee Culture and civilization is formed only when all these norms, rules and values become consciousness, attitude and habits of all people and are manifested by concrete actions In order to truly transform in the mindset and behavior of everyone, the branch must also build a competitive, fair, transparent, healthy, attractive and creative working environment; create necessary changes in the working environment, methods of evaluating work performance and measures to encourage the performance of the staff In addition, an equally important element is the regular exchange of information between leaders and subordinates Employees need to know the quality of their work and whether promotion or correction is need That requires the organization's response system to be clear, specific, timely, focused on behavior rather than individual characteristics An effective working environment will bring satisfaction to the employees, which is also the prerequisite condition of improving the quality of human resources that the branch should aim for 72 CONCLUSION Training is the process of enhancing the skills, capabilities, and knowledge of employees for doing a particular job The research has been employed to demonstrate the human resources training activities at Hanoi Branch By using quantitative and qualitative methods, the result shows that traningactivitives is an essential element for the branch‟s continuing growth in the developing economical world The branch require to enhance a powerful staff that is prepared with quality knowledge and skills in order to assist the branch expanding its competence On the other hand, deposit insurance has become a tool increasingly used by governments to ensure the stability of the banking system and to protect depositors' rights against major losses from banks However, if the DI system is not well-designed, especially the human resources training system is strong, it will certainly fail quickly During the research, the thesis has achieved the following main results: Generalization of training, clarification of the role of training in the development of the organization, criterias for evaluating the training model and factors influencing training activities in order to assess the situation the training activities of the branch, highlighting the achievements as well as its existence, limitations and causes Based on DIV's development strategy up to 2020 and the development orientation of the Hanoi branch, the dissertation outlines the main solutions and proposes some suggestions and recommendation to improve the feasibility of the implementation Suggest solutions and recommendations to enhance human resources training activies at the Hanoi branch to the limitation in research skills as well as experiences in this complex and new field, the thesis certainly has some restriction The author expects to receive instruction and contribute commends from researchers, teachers, and administrators to improve the quality of the research 73 REFERENCES Do Thi Thu Trang (2017), Improving human resource training activities at SumimotoElectricInternconnect Products VIETNAM, LTD, Master Thesis of Business Administration, Hanoi School of Business, Vietnam National University – Hanoi Dao ThiLan Phuong (2013), Solutions to develop deposit insurance activities in Hanoi regional, Master thesis, Banking Academy of Vietnam David J.Cherrington (1995), The management of human resources, Prentice-Hall, Inc, New Jersey Deposit Insurance of Vietnam (2015), Annual Report, DIV Hanoi regional Branch Deposit Insurance Law of Vietnam (2012) Donald Kirkpatrick (1998), Evaluating Training Program (2nd edition) Federal Deposit Insurance Coporation (2018), FDIC's Corporate Annual Performance Plan Le Thi Thu Thuy (2008), The law on deposit insurance in Vietnam, Vietnam National University – Ha Noi Nguyen Thi Kim Oanh (2004), Deposit Insurance – Principles, practice and direction, Social Labor Publishing House, Ha Noi 10 Raymond A.Noe (2002), Employees training and development (2nd edition) 11 Trinh TrongThuy (2017), Corporate culture at Vietnam prospertiry bank, Master Thesis of Business Administration, Department of Business and Administration, Vietnam National University – Ha Noi 74 APPENDIX Appendix 01 AUXILIARY KNOWLEDGE AND SKILLS SURVEY This is the opinion poll for staff at VinhTuong Industrial Joint Stock Company Your answers will help us to organize training courses for auxiliary skills more effectively Question 1: Do you know the definition of auxiliary skills? Very well ☐ A little ☐ I know it ☐ I don‟t know it ☐ Question 2: In your opinion, are auxiliary skills necessary for work? Very neccesary ☐ Neutral ☐ Neccesary ☐ Not neccesary ☐ Question 3: What auxiliary skills did you learn? Language ☐ Computer ☐ Time management☐ Planning ☐ Team work ☒ Presentation☐ Other Question 4: Do you have any proposal for training courses for other auxiliary skills? ………………………………………………………………………………… ………………………………………………………………………………… ………………………………………………………………………………… ………………………………………………………………………………… Thank you! 75 Appendix 02 SUMMARY OF RESULTS AUXILIARY KNOWLEDGE AND SKILLS SURVEY Number of forms distributed: 70 Number of forms received: 70 Question 1: Do you know the definition of auxiliary skills? Criteria Very well I know it A little I don’t know it Number of votes 46 16 Percentage (%) 66 23 Question 2: In your opinion, are auxiliary skills necessary for work? Criteria Very neccesary Neccesary Neutral Not neccesary Number of votes 21 35 12 Percentage (%) 30 50 17 Question 3: What auxiliary skills did you learn? Criteria Language Computer Teamwork Time management Planning Presentation Other Number of votes 46 58 33 62 27 42 10 76 Percentage (%) 66 83 47 88 38 60 14 Question 4: Do you have any proposal for training courses for other auxiliary skills? Skills Presentation skill Communication Teamwork skill skill Planning Language Computer Other Number of votes 34 43 25 32 58 67 15 Percentage (%) 48 62 38 46 83 98 21 77 Appendix 03 BUILDING ASSESSMENT SURVEY FOR TRAINING PROGRAM Fullname: Department: Title: For the purpose of improving the effectiveness of the training program and developing content that suits your needs, please take the time to fill out the Questionnaire with the most appropriate options Does the course provide your employees with the knowledge and skills necessary for his or her day-to-day work? Yes☐ No☐ The necessary level of these skills: (Note: the necessary level is evaluated on a scale from to 5) Please give an example of how you have applied that knowledge or skills into daily activities Does the training program bring about any change in the working method of your employees before they enroll in the training program? Yes☐ No☐ If yes, please give a specific example 78 Do you find this training course helpful to promote your working capabilities? Yes☐ No☐ Do you have any other comment regarding this training program (addition, removal, or recommendation to help make this program more lively and attractive)? ☐Training duration: ☐Training module: ☐ Module duration: ☐ Lecturer: ☐Other: Thank you! 79 Appendix 04 BUILDING AN ASSESSMENT SURVEY FOR MOTIVATION LEVEL OF THE BRANCH Full name: Department: Title: For the purpose of improving the effectiveness of the training program and developing content that suits your needs, please take the time to fill out the Questionnaire with the most appropriate options How old are you? Under 20 ☐ 20-30 ☐ What gender are you? Male ☐ 30 -45 ☐ Over 45 ☐ Female☐ Have you ever heard and known of motivation activities within your company? Yes ☐ No ☐ How important are the following elements to create motivation and passion at work for you and how satisfied are you about these elements? ( check box for each column) Level of Importance Level of Satisfaction Not important Not satisfied Less important Less satisfied Important Satisfied Very important Very satisfied Extremely important Extremely satisfied 80 Check the following boxes: Level of Importance Level of Satisfaction Element Benefit needs N1: Wages and salaries N2: Other incomes (bonuses, welfare, subsidy) = N3: Holiday N4: Subsistent conditions at work Safety needs SN1: Working conditions, safety equipment SN2: Nature of work SN3: Work pressure Social Relationship needs SR1: Relationship with the management SR2: Relationship with co-workers SR3: Relationship with customers Esteem needs RN1: Recognition of position in work RN2: Recognition of competency and achievement 81 RN3: Corporate culture RN4: Leadership style (how employees are treated) Self-actualization needs SA1: Education and training opportunities SA2: Promotion opportunities SA3: Empowerment, authorization SA4: Challenges and significance of work Do you have any other comment regarding elements affecting work motivation? Thank you! 82 ... improve human resource activities at the branch In particular, Vietnam Deposit Insurance Hanoi Branch is one of the most effective and longest-standing branches of deposit insurance in the 12 northern... Analysis of the quality and human resource activities at DIV Hanoi Branch Chapter 3: Solutions to improve the quality of human resources training for DIV Hanoi Branch Chapter 1: Theoretical foundation... Theoretical foundation of the quality of human resources and human resource training 1.1 Human resources and human resource quality in a business 1.1.1 Human resources and human resource quality in a business