Strengthening employees’ training at piaggio vietnam

Lunghwa University of Science and Technology Department of Business Administration Thesis for a Master’s Degree Strengthening employees’ training at Piaggio Vietnam Researcher: Do Huu Luc Supervisor: Dr Ngo Vi Dzung Supervisor: Asst Prof Chu, Chih-Chung November 2018 Lunghwa University of Science and Technology Approval Certificate of Master's Degree Examination Board This is to certify that the Master’s Degree Examinations Board has approved the thesis Strengthening employees’ training at Piaggio Vietnam published by Mr Do Huu Luc in the Master Program of Graduate School of Department of Business Administration Master’s Degree Examination Board Board Members： Dr Mai Anh Dr Doan Thu Trang Advisors： Asst Prof Chu, Chih-Chung Dr Ngo Vi Dzung Chair： Prof PhD.Tsan Eric i Date： 2018／11／ 22 ii ABSTRACT Thesis Title：Strengthening employees’ training at Piaggio Vietnam Pages：75 University：Lunghwa University of Science and Technology Graduate School：Department of Business Administration Date：November, 2018 Degree：Master Researcher：Do Huu Luc Advisor：Asst Prof Chu, Chih-Chung & Dr Ngo Vi Dzung Keywords: Employee training, human resource Based on actual requirements, theoretical basis, documents, preceding studies on the issue about training for employees, I have chosen the topic for my thesis: Strengthening employees’ training at Piaggio Vietnam In this thesis I use secondary data sources from business reports, regulations of Piaggio Vietnam and primary data from in-depth interviews with HR managers and questionnaires, surveys with employees to analyze the situation of training in the company Research methods: In the thesis, the author uses quantitative research methods Direct interviews, questionnaires and surveys are prepared to get information from employees and managers The thesis provides a view from the managerial aspects to technical aspects on training of employees at Piaggio Vietnam The thesis concludes with the suggestions to enhance employee training at the company These suggestions are based on the detailed analysis of the current situation in the company and highly practical Despite not being easy to carry out all of them but the company should take them into serious account if it wants to change things for the better I believe that my research will contribute to helping Piaggio Vietnam realise its weaknesses in training and to the overall development as well ii ACKNOWLEDGMENT “First of all, I would like to express my sincere thanks to Dr Ngo Vi Dung and Assoc Prof Chu, Chih-Chung, who spent much time to guide me during the time to this thesis.” “I would like to thank all the lecturers, staff and managers of the International School, Vietnam national university Hanoi and Lunghwa University of Science and technology staff, who did teach me and equipped me with good knowledge on business administration to create fundamentals for my business in the future.” “I spent my sincere thanks to leader, managers, staff of Piaggio Vietnam Co., Ltd who supported and created good conditions for me to collect secondary data and primary data to make successes of the thesis.” “Finally, I would like to encounter and note my grateful thanks to my friends, family members for their supports and encouraging me to fulfill the thesis.” “Thank all!” Hanoi, November 2018 Do Huu Luc iii TABLE OF CONTENTS ABSTRACT .…ii ACKNOWLEDGMENT iii ABBREVIATIONS vii LIST OF TABLES viii LIST OF FIGURES ix INTRODUCTION 1.1 Rationale 1.2 Research objectives 1.3 Research questions 1.4 Research methodology 1.4.1 Research process 1.4.2 Data collection 1.4.2.1 Secondary Data 1.4.2.2 Primary Data 1.4.3 Data analysis 1.5 Research scope 1.6 Research structure LITERATURE REVIEW 2.1 Overview of human resource training 2.1.1 Human resource definitions 2.1.2 Human resource training 2.1.3 Difference between employee training and development 2.2 The role of training to employees 2.3 Training methods 2.3.1 On-the-job-training 2.3.2 Off-the-job-training 2.4 Process of HR training in business 10 2.4.1 Training needs assessment 11 2.4.2 Training design 12 2.4.2.1 Training objectives determination 12 2.4.2.2 Selection of participants 12 2.4.2.3 Training contents selection 13 2.4.2.4 Selection of classroom training methods 13 2.4.2.5 Trainers selection 14 2.4.2.6 Training cost estimation 15 2.4.3 Training implementation 15 2.4.3.1 Training facilities 15 iv 2.4.3.2 Training time 15 2.4.4 Training evaluation 16 2.5 Dimensions and attributes to analyze employees’ training 18 2.6 Factors impacting training activities 20 2.6.1 Internal factors 20 2.6.1.1 The purpose of the program 20 2.6.1.2 The resources available to the organisation 21 2.6.1.3 Efficient number and capacity of training staffs for support for training 21 2.6.1.4 Application of skills obtained after training 21 2.6.2 External factors 21 2.6.2.1 Legislation 21 2.6.2.2 Science and Technology 22 ANALYZING CURRENT EMPLOYEES’ TRAINING IN PIAGGIO VIETNAM 23 3.1 Overview of Piaggio Vietnam 23 3.1.1 Introduction 23 3.1.2 History of establishment and development 24 3.2 Respondents’ profile 26 3.2.1 Respondents’ profile by sex 26 3.2.2 Respondents’ profile by age 27 3.2.3 Respondents’ profile by educational level 27 3.2.4 Respondents’ profile by seniority 28 3.3 Brief description of training at Piaggio Vietnam 29 3.3.1 Type of training 29 3.3.2 Managing training activities at Piaggio Vietnam 29 3.4 Analyzing training activities at Piaggio Vietnam 30 3.4.1 Training needs assessment 30 3.4.2 Training design 36 3.4.3 Training implementation 42 3.4.4 Training evaluation 45 3.5 Summary of findings on current employees’ training situation for at Piaggio Vietnam 49 3.5.1 Achievements 49 3.5.2 Drawbacks 50 3.5.3 Causes 50 3.5.3.1 Internal causes 50 2.5.3.2 External causes 51 v RECOMMENDATIONS TO IMPROVE TRAINING OF EMPLOYEES AT PIAGGIO VIETNAM 53 4.1 Strategic directions and implications for employee training at Piaggio Vietnam 53 4.1.1 Strategic directions 53 4.1.2 Evaluating opportunities and challenges in new context 54 4.2 Recommendations to improve employee training at Piaggio Vietnam 55 4.2.1 Enhance human resources personnel’s capabilities 55 4.2.2 Improving job description 55 4.2.3 Improving training budget 56 4.2.4 Revise training evaluation process 57 4.2.5 Other solutions 58 4.2.5.1 Schedule more appropriate training time 58 4.2.5.2 Diversify training methods 59 4.2.5.3 Expand cooperation with other training organizations 59 4.2.5.4 Develop human resources policies 60 CONCLUSION 62 LIST OF REFERENCES 64 APPENDIX 66 APPENDIX 68 APPENDIX 72 vi LIST OF ABBREVIATIONS Co., Ltd Company Limited Dr Doctor E-learning Electronic learning e.g for example etc et cetera HRM Human Resources Management HR Human Resources OTJ On-the-job training R&D Research and Development KPI Key Performance Indicator WTO World Trade Organization vii LIST OF TABLES Table 1.1: Difference between training and development Table 2.2: Measurement tool to analyze employees’ training at Piaggio Vietnam 18 Table 2.1: Respondents’ profile by sex 26 Table 2.2: Respondents’ profile by age 27 Table 2.3: Respondents’ profile by educational level 28 Table 2.4: Respondents’ profile by seniority 28 Table 2.5: Employees’ assessment on training needs assessment 31 Table 2.6: Employees’ assessment on training design 36 Table 2.7: Employees’ assessment towards training implementation 42 Table 2.8: Employees’ assessment towards training evaluation 46 viii capability Piaggio Vietnam in particular should establish a strong policy about this issue with very strict rules of compensating, strong punishment or firing In brief, it is vital that a correct strategy of HR be developed Nevertheless, so as to generate an effective management system, a cooperation between big organizations should be necessary 61 CONCLUSION In the context of international economic integration, service and trading field has become more and more important In order to compete well in the market, it is a must for Piaggio Vietnam focus intensively on human resources to sharpen its own advantages In order to achieve that goal, training activities for employees need to be treated as one of the most important aspects in the company’s operation because the quality of employees directly influences the image and prestige of the organisation The main objective of the thesis is to work out some suggestions to help Piaggio Vietnam enhance the training for its employees To obtain that, the researcher carried out deep analysis of employees’ opinions and evaluations about all aspects concerning their training courses using the training process, questionaires and in-depth interviews The analysis shows that, overally, training courses by Piaggio Vietnam have not satisfied employees’ expectations because of weak training needs assessment in the task and person analysis Job descriptions are not satisfactorily designed, which caused trouble for identifying training needs Additionally, the company seems to lack a diversity of training methods since e-learning has been absolutely missing so far Training costs is also another problem in the training design as it presents a finacial burden on the company’s budget Moreover, training time should be reconsidered because it occasionally causes overslaps to busy times of the year The capability of the HR offciers of the Training Center needs to be a lot improved considering the negative responses on logistics performance Most of the employees claim that HR officers’ performance has not been satisfying enough to their expectations Last but not least, the evaluation on learning, behaviour and business results level seem to have been conducted in too informal manner and misses regularity The causes for those shortcomings include: weak training needs identification, capability gaps are not properly examined, limited quality of HR recruitment, limited budget for training, training knowledge and skills may not relevant to employees’ work so, making it hard for them to practice newly acquired skills, and the most difficult thing is that there is a lack of proper follow-up system, partly because there are too few staff in charge of the whole training process The author also make some suggestions for enhancing training activities in the company such as improving training need assessment, strengthening 62 human resource capability, revising training budget, improving evaluation process, diversifying training methods and develop human resource policies In the foreseeable future, Piaggio Vietnam has to face many challenges in employee training which include limited training costs, increasing demand for training, lack of expertise, appeal to new age participants, course completion rate Due to the limited time for research, the study may not reflect fully all the impacts of the factors on the training process, however, the author hopes that the analysis and solutions will serve as useful help for the company in its conduct and improvement of training for employees 63 LIST OF REFERENCES Abili Kh Tehran (2005) Assessment of plans and programs for development : Publication of the International Institute Beardwell, I., Holden, L &Claydon, T (2004) Human Resource Management a Contemporary Approach 4th Ed Harlow Prentice Hall” Becker BE, Huselid MA, Ulrich D (2001) Scorecard: linking people, strategy and performance The HR, Boston, Massachusetts: Harvard Business School Press Cherrington, David J (1995) The Management of Human Resources Englewood Cliffs, NJ: Prentice-Hall.” Cole, M & Cole, S (2001) The Development of Children (4th Ed) New York: Scientific American Books Distributed by W.N Freeman and Company” Decenzo and Stephen P R (1998) Fundamentals of Human Resource Management, Eight Edition.” Halelly, Azulay (2012) Employee development on Shoestring Herman Steensma, Karin Groeneveld, (2010) "Evaluating a training using the “four levels model”", Journal of Workplace Learning, Vol 22 Iss: 5, pp.319 – 331” Hinkin, T.R., & Tracey, J.B (2000) The cost of turnover: Putting a price on the learning curve Cornell Hotel and Restaurant Administration Quarterly, 41, 14– 21.” 10 Gomez-Mejia, L R., Haynes, K., Nuñez-Nickel, M., Jacobson, K J L., &Moyano-Fuentes, J (2007) Socio-emotional wealth and business risks in family-controlled firms: Evidence from Spanish olive oil mills Administrative Science Quarterly, 52, 106-137.” 11 Gordon, B (1992) Are Canadian firms under investing in training? Canadian Business Economics.” 12 Jean-Rene Rachel (2014) Person Analysis Method 13 Kirkpatrick, D L (1994) Evaluating training programs: The four levels San Francisco: Berrett-Koehler.” 14 Luis R Gomez-Mejia (2007) Managing Human Resources 3rd Edition 15 McCourt, W., & Eldridge, D (2003) Global human resource management: managing people in developing and transitional countries Edward Elgar 64 Publishing.” 16 Milkovich and Boudreau (2003), Globalizing International Human Resource Management” 17 Nafiseh Rafiei (2015) The Role of Human Resources Management on Enhancing the Teaching Skills of Faculty Members 18 Patrick J Montana and Bruce H Charnov (2000)."Training and Development" Management Barron's Educational Series.” 19 Raymond A Noe (2011), Employees training and development, 2nd edition McGraw-Hill Irwin Press” 20 “Swart, J., Mann, C., Brown, S and Price, A (2005), Human Resource Development: Strategy and Tactics, Elsevier Butterworth-Heinemann Publications, Oxford.” 21 Piaggio Vietnam (2015 – 2017); Annual Reports, Minutes, etc.” 22 Andrew Smith &Erica Smith, The role of training in the development of human resource management in Australian organizations 23 Torrington D, Hall L, Taylor S (2005) Human Resource Management, Prentice Hall/Financial Times: Essex” 24 Tricia, Emerson (2011) The Learning and Development book 25 Vakilian M (2006) Methods and techniques of teaching Publication PNU 65 APPENDIX GUIDELINES FOR IN-DEPTH INTERVIEW QUESTIONS “How does Piaggio Vietnam identify the needs for employees’ training?” “How are objectives of training courses for employees at Piaggio Vietnam developed?” “What are the main purposes of training policies at Piaggio Vietnam?” “What you think about job descriptions at Piaggio Vietnam and its influence on training needs assessment?” “What will employees acquire after taking part in training courses at Piaggio Vietnam?” “How does Piaggio Vietnam to know about the necessary knowledge and skills for employees’ job?” “What you think about the ability of training at Piaggio Vietnam to satisfy employees’ personal aspiration and development plan?” “What you think about training objectives at Piaggio Vietnam?” “How you evaluate the knowledge and skills gained by employees from the training courses?” 10 What you think about training methods of training courses conducted by Piaggio Vietnam?” 11 “How can employees during the training process?” 12 “How about the skills, knowledge and expertise of trainers?” 13 “What you think about training costs at Piaggio Vietnam?” 14 “How you feel about training courses’ materials?” 15 “What you think about facilities and equipment provided for training courses at Piaggio Vietnam?” 16 “How you feel about training courses’ logistics at Piaggio Vietnam?” 17 “How you think about training time and training duration set for each training course?” 18 “How you think about the quality of Piaggio Vietnam’s training-related works?” 19 “How you think about the training courses’ content at Piaggio Vietnam?” 66 20 What you think about the possibilities for employees to participate in other training courses organized by Piaggio Vietnam?” 21 “How you think about the overall quality of training at Piaggio Vietnam?” 22 “When and how often are employees asked to evaluate training courses at Piaggio Vietnam?” 23 “When employees have to take exams to check whether they can obtain certain knowledge or skills or not?” 24 “When are employees evaluated to see if they have changed their behaviors as a result of participating in one training course?” 25 “When are employees evaluated to see if they have improved their performance as a result of participating in that training course?” 26 “How is training evaluation conducted by Piaggio Vietnam at the company?” 67 APPENDIX QUESTIONNAIRES FOR EMPLOYEES AT PIAGGIO VIETNAM Being aware of the importance of training employees and the process to build an effective training policy is essential for every organization To study more about this issue, I am conducting a survey to write a thesis on strengthening employees’ training at Piaggio Vietnam “Please fill out the following survey No answer is right or wrong Each answer contains the same value, personal information as well as opinions will be kept completely confidential and will not appear in any document without your consent.” “SECTION A: PERSONAL INFORMATION”  Male Sex:  Female” Age:” Education:  College Seniority: < year  University  – years  Master  – years  Others” > years” “SECTION B: SURVEYING QUESTIONS” “Please indicate your opinion for the related factors through the following statements.” “Instruction for answer: Please complete the questionnaire by indicating with an (X) 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: Strongly disagree” “4: Agree” “2: Disagree” “5: Strongly agree” “3: Normal” No “Statement” I “Training needs assessment” Piaggio Vietnam periodically analyses the company’s goals 68 “Level” “Level” “Statement” No and strategies to identify the needs for your training.” “Objectives of training courses for employees at Piaggio Vietnam have contributed to the implementation of the company’s own goals and strategies.” 10 II “Training policies of Piaggio Vietnam contributes to completing your professional capacity.” “Training policies of Piaggio Vietnam helps to improve your working performance.” “Training policies of Piaggio Vietnam helps to improve your results of working implementation.” “Job descriptions of Piaggio Vietnam are designed clearly and easy to understand for you.” “Job descriptions of Piaggio Vietnam are fundamental for identifying training needs of employees.” “Training courses at Piaggio Vietnam have helped you to complete your tasks successfully.” “Periodically, Piaggio Vietnam asks you about what knowledge and skills you need for performing your job.” “Training at Piaggio Vietnam satisfies your personal aspiration and development plan.” “Training design” The training objectives of Piaggio Vietnam are always clear, specific and understandable The training objectives satisfy your needs.” You can apply the new skills and knowledge in the training courses to your daily works.” You feel satisfied with knowledge gained from the training courses.” Generally, training methods of courses provided by Piaggio Vietnam are suitable and reasonable.” 69 “Statement” No “You are often encouraged to raise your ideas, or make questions during the training process.” “You are given opportunities for discussion.” “You highly appreciate the presentation skills of the instructors.” “You highly appreciate the instructors’ knowledge and experience.” 10 “Training cost of those courses are very reasonable.” III “Training implementation” “The courses’ materials are clear and useful.” Facilities and equipment are sufficient and well-provided to participants “The courses’ logistics are excellent.” “The training time is set appropriately “The duration for each training course is reasonable for you.” IV The training programs of Piaggio Vietnam for employees achieve the set objectives.” “In the training process, you feel inspired with the training program’s content.” “You like to take part in other training courses by Piaggio Vietnam.” “You feel that the quality of training at Piaggio Vietnam is overally good.” “Training evaluation” “You are asked to evaluate each training course right after it finishes “After each training course, you are examined to see how much you have learnt.” “In a period of time after each training course, you are evaluated to see whether you have changed your behaviors as a 70 “Level” “Statement” No “Level” result of taking part in the training course.” “In a period of time after each training course, you are evaluated to see whether you have improved your performance as a result of completing that training course “In general, the quality of training evaluation at Piaggio Vietnam is good “SECTION C: ADDITIONAL QUESTION” “Could you please give out some recommendations to improve employees’ training at Piaggio Vietnam?” 71 APPENDIX RESULTS OF SURVEY Mean 16 29 40 87 4.15 28 44 93 4.29 16 29 83 44 3.90 25 59 83 4.28 35 81 51 4.03 58 62 45 3.01 15 99 36 22 3.37 Training needs assessment “Periodically, Piaggio Vietnam analyses the company’s goals and strategies to determine the needs for your training.” “Objectives of employees at training courses for Piaggio Vietnam have supported the implementation of the company’s own goals and strategies.” “Training policies of Piaggio Vietnam contributes to completing your professional capacity.” “Training policies of Piaggio Vietnam contributes to increasing your working performance.” “Training policies of Piaggio Vietnam contributes to completing your results of working implementation.” “Job descriptions of Piaggio Vietnam are designed clearly and easy to understand for you.” “Job descriptions of Piaggio Vietnam are fundamental for identifying training needs of employees.” 72 “Training courses at Piaggio Vietnam have helped you to accomplish your tasks 21 94 29 28 3.37 28 46 90 4.23 50 57 22 43 3.34 37 52 69 3.95 13 28 62 45 24 3.15 17 11 87 26 31 3.15 21 18 70 43 20 3.01 10 17 91 24 3.18 0 17 87 68 4.30 38 43 44 47 3.58 10 34 48 80 4.15 successfully.” “Periodically, Piaggio Vietnam asks you about what knowledge and skills you need for doing your job.” “Training at Piaggio Vietnam satisfies your personal desire and development plan.” Training design “The training objectives of Piaggio Vietnam are always clear, specific and understandable for you.” “The training objectives meet your needs.” You can apply the new knowledge and skills acquired in the training courses to your daily work “You feel satisfied with knowledge gained from the training courses.” Generally, training methods of courses provided by Piaggio Vietnam are suitable 30 and reasonable.” “You are often encouraged to raise your ideas, or make questions during the training process.” “Opportunities are given to you for discussion.” “You highly appreciate the presentation skills of the instructors.” 73 “You highly appreciate the instructors’ 23 51 85 4.14 16 13 52 83 4.03 0 29 40 103 4.43 and well-provided to participants” 14 27 59 72 4.1 “The courses’ logistics are excellent.” 28 47 33 53 12 2.9 “The training time is set appropriate 22 46 70 29 2.7 33 32 49 51 3.60 14 29 83 40 3.79 45 39 34 54 3.56 14 56 45 57 3.84 16 25 46 80 4.04 30 63 43 29 2.53 14 18 36 101 4.26 knowledge and experience.” “Training cost of those courses are very reasonable.” Training implementation “The courses’ materials are clear and useful.” “Facilities and equipment are sufficient “The duration for each training course is reasonable for you.” The training programs of Piaggio Vietnam for employees achieve the set objectives.” “In the training process, you feel inspired with the training program’s content.” “You like to take part in other training courses by Piaggio Vietnam.” “You feel that the quality of training at Piaggio Vietnam is overally good.” Training evaluation “You are asked to evaluate each training course right after it is conducted.” “After each training course, you are examined to see how much you have learnt.” 74 “In a period of time after each training course, you are evaluated to see whether you have changed your behaviors as a 11 87 55 15 3.38 18 35 94 22 3.67 12 27 94 36 2.95 result of taking part in the training course.” “In a period of time after each training course, you are evaluated to see whether you have improved your performance as a result of completing that training course “In general, the quality of training evaluation at Piaggio Vietnam is good 75 ... 1:” “Literature review “Chapter 2:” “Analyzing current employees’ training at Piaggio Vietnam? ?? “Chapter 3:” “Recommendations to improve employees’ training at Piaggio Vietnam? ?? LITERATURE REVIEW... RECOMMENDATIONS TO IMPROVE TRAINING OF EMPLOYEES AT PIAGGIO VIETNAM 53 4.1 Strategic directions and implications for employee training at Piaggio Vietnam 53 4.1.1 Strategic... other training courses by Piaggio Vietnam. ” “You feel that the quality of training at Piaggio Vietnam is overally good.” IV ? ?Training evaluation” Reaction “You are asked to evaluate each training