Tài liệu Human resource development (hrd) practices in bac thang long and nam thang long industrial parks bases for a comprehensive hrd program for industrial parks in vietnam

Thai Nguyen University Socialist Republic of Vietnam Southern Luzon State University Republic of Philippines HUMAN RESOURCE DEVELOPMENT (HRD) PRACTICES IN BAC THANG LONG AND NAM THANG LONG INDUSTRIAL PARKS: BASES FOR A COMPREHENSIVE HRD PROGRAM FOR INDUSTRIAL PARKS IN VIETNAM A Research Proposal Presented to the Faculty of Graduate School Southern Luzon State University, The Philippines and Thai Nguyen University, Socialist Republic of Vietnam In Partial Fulfillment of The Requirements for the Degree Doctor in Business Administration PHAM HAI HUNG (JO) August, 2013 APPROVAL SHEET In partial fulfillment of the requirements for the degree Doctor in Business Administration, this research entitled :"Human resource development (HRD) practices in Bac Thang Long and Nam Thang Long industrial Parks: bases for a comprehensive HRD program for industrial Parks in Vietnam” has been submitted by Pham Hai Hung - Jo, and is hereby recommended for oral examination. PROF. CONRADO L. ABRAHAM Research Adviser Approved by the Oral Examination Committee, in partial fulfillment of the requirements for the degree Doctor in Business Administration offered by Southern Luzon State University, Republic of the Philippines in collaboration with Thai Nguyen University, Socialist Republic of Vietnam. Dr………………………..………………….. Member Dr………………………..………………….. Member Dr………………………..………………….. Member Dr………………………..………………….. Member Dr………………………..………………….. Chairman Accepted in partial fulfillment of the requirements for the degree Master in Business Administration. SOUTHERN LUZONG STATE UNIVERSITY Dean i ACKNOWLEDGMENT In grateful recognition and sincerest thanks for the encouragement, guidance and unselfish sharing of their knowledge, time, effort and skills, and for the untiring motivation that leads to the completion of this study, the Researcher acknowledges the following: The deep thanks to DR. CECILIA N. GASCON, Ph. D. President of the Southern Luzon State University in the Republic of the Philippines, for her untiring effort and belief that this collaboration is possible thus enabling us to pursue the DBA degree; Sincere thanks to DR. NGUYEN THANH HAI, Vice Director of the International Training Center, Thai Nguyen University of the Socialist Republic of Vietnam who was always available to help me during the years; PROF. CONRADO L. ABRAHAM for his selfless guidance and assistance in helping me to stay on the right track; ITC staff, for providing the necessary research materials; Thanks to Managers and Employees of Bac Thang Long and Nam Thang Long Parks, my Respondents, for their patience and cooperation in answering the questionnaire and for other data given; Especial thanks to my Family and Friends, for the love and supports in one way or the other. And to all who have contributed to make this study a success. ii ABSTRACT Human Resources Development (HRD) as a theory is activities for the expansion of human capital within an organization through the development of both the organization and the individual to achieve performance improvement. Bac Thang Long and Nam Thang Long industrial parks are two large industrial Zones in Hanoi with a hundred of companies are operating; the companies in there have achieved great successes in their business so far. However, the companies are also facing challenges related to human resources. For that reason the study: "Human resource development (HRD) practices in Bac Thang Long and Nam Thang Long industrial Parks: bases for a comprehensive HRD program for industrial Parks in Vietnam” was conducted. The study aims to identify aspects of the real situation of human resource development in Bac Thang Long and Nam Thang Long industrial Parks. The study answered the questions of What is the profile of the respondents at both industrial Parks in terms of: Age, Gender, Educational level, Position; What are the human resource development practices of the foreign companies and Vietnam companies in terms of Training; Which of the HRD practices were perceived to be acceptable and common among group of respondents; What HRD program can be developed as bases of implementing HRD practices in industrial parks. From analysis, training and development proposal along with a comprehensive HRD program. iii TABLE OF CONTENTS Page No. Chapter 1: INTRODUCTION .................................................................................... 1 1.1. Background. ........................................................................................................2 1.2. Statement of the Problem ....................................................................................3 1.3. Objectives of the Research…………………………………………………… 4 1.4. Significances of the Research .............................................................................5 1.5. Scope and Delimitation ......................................................................................5 1.6. Definition of terms ..............................................................................................6 Chapter 2: LITERATURE REVIEW AND RELATED STUDIES ..........................8 2.1. Literature Review................................................................................................8 2.2. Review of Related Studies. ................................................................................20 2.3 Conceptual Framework .......................................................................................22 Chapter 3: RESEARCH METHODOLOGY .............................................................23 3.1. Research Design.................................................................................................23 3.2. Locale of the study .............................................................................................23 3.3. Data collection method ............................................................................................................23 3.4. Population, Sample and Sampling Technique ...................................................24 3.5. Research Instrument...........................................................................................26 3.6. Procedures for conducting the survey ................................................................26 3.7. Statistical Treatment .........................................................................................27 Chapter 4: PRESENTATION, ANALYSIS AND INTERPRETATION OF DATA ...................................................................................................... 28 4.1. Profiles of respondents ......................................................................................28 4.2. Perceptions on training………………………………………………………….33 4.3. Comprehensive HRD Program .........................................................................50 Chapter 5. SUMMARY, CONCLUSIONS AND RECOMMENDATIONS ...........57 5.1. Summary of Findings .........................................................................................57 5.2. Conclusion ........................................................................................................59 iv 5.3. Recommendation ...............................................................................................60 BIBLIOGRAPHY .........................................................................................................63 QUESTIONNAIRE.......................................................................................................65 RESEARCHER CV ......................................................................................................71 v LIST OF TABLES Page No. Table 2.1. Comparison among training, education and development……………………...9 Table 3.1. Distribution of the respondents .........................................................................24 Table 3.2. Description of the Respondents ........................................................................25 Table 4.1. Trainees of training program ............................................................................37 Table 4.2. Training Needs Assessment .............................................................................39 Table 4.3. Training methods .............................................................................................42 Table 4.4. Training Time ...................................................................................................43 Table 4.5.Training contents for managers .........................................................................45 Table 4.6. Training budget ................................................................................................47 Table 4.7. Criteria of training evaluation ...........................................................................49 Table 4.8. A sample of job description .............................................................................51 Table 4.9. A sample of evaluation test ..............................................................................54 Table 4.10. Summary of comprehensive HRD program ..................................................55 LIST OF FIGURES Page No. Figure 2.1. Changing role of training................................................................................ 9 Figure 2.2. The needs assessment process ...................................................................... 14 Figure 2.3. Presents conceptual framework .................................................................... 21 vi LIST OF CHARTS Page No. Chart 4.1. Gender structure of managers group .............................................................. 28 Chart 4.2. Age structure of management group .............................................................. 29 Chart 4.3. Education levels of management group ......................................................... 30 Chart 4.4. Gender structures of employees ..................................................................... 31 Chart 4.5. Age structure of employees............................................................................ 31 Chart 4.6. Education levels of employees ....................................................................... 32 Chart 4.7. Purpose of training program in Vietnam companies ..................................... 33 Chart 4.8. Purpose of training program in foreign companies ........................................ 34 Chart 4.9. Trainees of training program in Vietnam companies..................................... 35 Chart 4.10. Trainees of training program in foreign companies ..................................... 35 Chart 4.11. Training needs assessment in Vietnam companies ...................................... 38 Chart 4.12. Training needs assessment in foreign companies ........................................ 38 Chart 4.13. The training methods in foreign companies ................................................. 40 Chart 4.14. The training methods in Vietnam companies .............................................. 41 Chart 4.15. Training content for employees in foreign companies................................. 44 Chart 4.16. Training content for employees in Vietnam companies .............................. 44 Chart 4.17. The effectiveness of training in Vietnam companies ................................... 48 Chart 4.18. The effectiveness of training in foreign companies ..................................... 49 vii Chapter 1 INTRODUCTION To develop an economy that requires the resources: capital, science - technology, natural resources and manpower; to grow rapidly and sustainably it should be based on three basic elements: apply new technologies, development of modern infrastructure and improve the quality of human resources. The socio-economic development depends on many factors, and conditions, but most remain largely dependent on human factors, compare with other resources, the human resource is more dominant. Therefore, more than any other resources, human resource always occupies the central location and play leading role in socio-economic development of the country, especially in the promoting period of industrialization modernization and international economic integration. The exploitation and utilization of human resource effectively is extremely important issue, human resource should promote the diversity and abundance of Eastern cultural traditions such as hospitality, the talent, intellectual, science... However so far, the important potentials have not been exploited fully, properly and may have not used effectively. Today, when the world enters the intellectual economic, the problem of talent is a critical issue, because talented people are the nucleus of intellectual economy. Although talented people at any time is always important, but nowadays it is even more important than ever, To take a short-cut and leader in the development it must have advanced human resource, not to forget talented people and not to waste human resource. Therefore, countries should actively plan, create sources, training and retraining of human resources to 1 develop most effectively For Vietnam, is in the modernization and industrialization process, many industrial zones and export processing zones have been established and attracted millions of employees working inside that promoted the country‟s economic growth. However, the industrial zones are facing some difficulties; one of them regards to human resource, workforce has not satisfied requirements yet, because of low trained percentage, Government's report in 2009 said: "The quality of human resources of Vietnam today is low; the percentage of trained labor reaches only a bout 38%." Therefore, if it would be trained that will be the resources with strong impact on growth and economic development of the country. For company, in the strong competitive environment, many companies have paid attention to training and human resource development, because human resource is the basis for existence and development of the company. Through training that can provide skilled staff for the company to accomplish tasks given and also increase productivity. Moreover, along with advance in technique – technology requires company has to train a team of hiskilled, hi-tech and creative staff to handle complex problems which they can not do before. Beside, in market economy, companies compete by using knowledgeable, highly skilled and creative human resource in production. That makes human resource development in companies increased rapidly as today. 1.1. Background of study Bac Thang Long and Nam Thang Long industrial Parks are located in Hanoi city, since found they have gained a lot of successes but also cope with challenge of human resource. 2 Before conducting the research, the researcher had in-depth interviews with some managers and workers on HRD practices in their companies in Bac Thang Long and Nam Thang Long Industrial Parks, the researcher realized that companies had paid attention to HRD but companies are facing some problems of human resource such as: lack of hi-tech and skilled employees, unstable workforce and employees feel temporarily when working there. Therefore, an effective human resource development program is a necessary need as observed. From the above reasons the researcher chose the topic "Human resource development (HRD) practices in Bac Thang Long and Nam Thang Long industrial Parks: bases for a comprehensive HRD program for industrial Parks in Vietnam” this encouraged though rough analysis in innovating HRD..Information reveals as follows: Bac Thang Long industrial Park located in Dong Anh district, Hanoi City Land area: 295 ha Owner: Sumitomo Corp Venture Company (Japan) and Dong Anh Mechanical Company. Nam Thang Long Park located in Tu Liem district, Hanoi city Land area: 270 ha Owner: Infrastructure Development JSC - Ha Noi Industrial and Trade Association (Vietnam). 1. 2. Problem statement The research expected to provide better understandings of human resource development activities, and different problems concerning the current situation of human 3 resource development in Bac Thang Long and Nam Thang Long industrial Parks where nearly 100 companies operating inside. Specifically, it sought to answer the following questions: 1. What is the profile of respondents in different companies in terms of: 1.1. Age; 1.2. Gender; 1.3. Educational level; 1.4. Position. 2. What are the human resource development practices of the foreign companies and Vietnam companies in terms of training? 3. Which of the HRD practices were perceived to be acceptable and common among group of respondents? 4. What HRD program can be developed as bases of implementing HRD practices in an industrial park? 1.3. Objectives of the Research The research has the following specific objectives: - Identify the profile of respondents, - Examine the role of HRD and their practices in local and foreign companies in terms of training. - Identify the current situation and practices of companies‟ HRD in Bac Thang Long and Nam Thang Long industrial Park in Hanoi City. - Develop a comprehensive HRD program for industrial parks in Vietnam based on HRD practices of Bac Thang Long and Nam Thang Long industrial parks. 4 1. 4. Significance of the research The researcher hopes that the outcomes of the study will be significant: To the companies operating in Bac Thang Long and Nam Thang Long industrial Parks - The research is very significant to managers, because it provides important information to manage effectively. - Analyzing and evaluating the current situation of human resource development in companies. - Through analysis of the real situation of human resource development, a comprehensive HRD program developed for industrial parks in Vietnam. To the researcher: - This study will help the researcher to understand the current situation of human resource development in the industrial zones in general and in Bac Thang Long and Nam Thang Long industrial Parks in particular. - This study will help the researcher to improve the skill of scientific study and more understandings to support his work. This is also an opportunity to apply DBA knowledge learnt into practice. To the future researcher: This is also a significant reference resource for the future researchers. 1.5. The scope and delimitation of the research - The research was carried out in Bac Thang Long and Nam Thang Long industrial Parks focusing on current situation of human resource development of companies. 5 - The survey was limited to a sample of companies in Bac Thang Long and Nam Thang Long industrial Park in Hanoi with 377 respondents (managers, workers, engineers…). 1.6. Definition of Terms For a clear understanding of the terms used in the study, the following are operationally and conceptually defined: - Human resources: It is a term used to describe the individuals who make up the workforce of an organization. - Human resource development: It is also called “training and development”. It is a part of HRM that specifically deals with training and development of employees. Human resource development includes training an individual after he/she hired, providing opportunities to learn new skills, knowledge, and abilities. - Training: it is the acquisition of knowledge, skills and competencies as result of the teaching of vocational or practical skills and knowledge that relate to specific useful competencies. Training has specific goals of improving one‟s capability, capacity, productivity and performance. - Human resource development practices: Refers to organizational activities practiced at training and ensuring towards the fulfillment of organizational goals. - Training needs assessment: Training needs assessment is an ongoing process of gathering data to determine what training needs exist so training can be developed to help the organization accomplish its objectives. Conducting needs assessment is fundamental to the success of a training program 6 - Evaluation of training: Evaluation of training is the process of obtaining information or data on the effectiveness of training program conducted and assessing the value of training in the light of that information. Evaluation involves controlling and correcting the training program. - Human resource development program: The activities of organization on how to get effective training. 7 Chapter 2 LITERATURE REVIEW AND RELATED STUDIES This chapter provides sufficient theory of Human resource practice that has significant effect on the conduct of the study. Finally a conceptual framework established to aid the conduct of this research work. 2.1 Literature Review Human resource development (HRD) plays an important role in developing the skills of workers in organizations in order to improve productivity and international competitiveness. The concept of human resource development first introduced by Len Nadler at American Society for Training and Development in United States of America. According to Nadler and Nadler, HRD encompasses three areas of employee: training, education and development. A well trained, multi-skilled workforce has been identified as contributing to the economic success of an organization through cost reduction and/ or increased productivity (Holland & Deery 2002, Stone 2005). The definition given by Desimone and Herris, HRD is the integrated use of training, organization, and career development efforts to improve individual, group and organizational effectiveness. HRD develops the key competencies that enable individuals in organizations to perform current and future jobs through planned learning activities. Groups within organizations use HRD to initiate and manage change. Also, HRD ensures a match between individual and organizational needs. Training and development: Training, education and development are main areas in HRD, which focus on the improvement of the knowledge, skills and abilities of employees in the organization (Nadler and Nadler). 8 Training is the systematic process of altering the behavior of employees in a direction that will achieve organizational goals, or in this study of Yara, Naddler defined training as an activity concerned with a person‟s future job and knowledge oriented. So we can understand: Training is an activity which enable employee to acquire new knowledge, new skills to perform effectively functions, tasks given. Development is activities for learning that is open to employee with new job based on the future development orientation of the organization. However, they are different from their focus, scope, time frame and purpose (Nguyen Van Diem, Nguyen Ngoc Quan, 2004). Figure 2.1 summaries the differences among employee training and development. Training typically focuses on providing employees with specific skills or helping them to correct deficiencies in their performance. Development is concerned with the future of the organization and the individual in directions, which are not as clearly definable. Training is expense; education and development are an investment. Table 2-1: Comparison among training and development Training Development Focus Current job Future job Scope Individual Individual and Organization Time frame Short term Long term Purpose Correct lack of knowledge Prepare for future work demand and and skills at present time changes and produce a flexible workforce for the organization in the future 9 The role of training Figure 2-1 shows the changing role of training. Training is moving from a primary focus on teaching employees specific skills to a broader focus on creating and sharing knowledge. Figure 2-1: Changing role of training Focus on teaching skills and knowledge Link training to business needs Use training to create and share knowledge Source: Based on J.J Martocehio and T.T. Baldwin, 1997, 1-40. Focus on teaching skills and knowledge: Traditionally, training was viewed as a means to teach employees specific skills and behaviors. This role of training will continue into the future. This view of training suggests that business conditions are predictable, they can be controlled by the company, and the company can control and predict the knowledge and skills that employees will need in the future. Link training to business needs: For the time being, as the competitive challenges indicate that unpredictability in the external environment in which companies operate is likely to continue. This means that because problems can not be predicted in advance, training needs to be delivered on an as-needed basis to help employees dealt with specific business problems as they occur. 10 Use training to create and share knowledge: Many companies believe that to gain a competitive advantage, the key is to develop intellectual capital. Intellectual capital includes cognitive knowledge (know what), advanced skills (know how), system understanding and creativity (know why) and self-motivated creativity (care why). Traditionally, training departments have focused their resources on cognitive and advanced skills. But the real value of training may be in having employees understand the manufacturing or service process and the interrelationships between department and divisions as well as motivating them to be innovative and deliver high quality and services (care why). Training process consists of three stages: needs assessment, conduct training and training evaluation. Training needs assessment Training needs assessment refers to activities that determine if training is necessary or not. Results of training assessment are to find out who need training, what contents provided and frequency of training. There are three levels of needs assessment: organizational analysis, task analysis and individual analysis (Janice A. Miller, SPHR and Diana M. Osinski, SPHR, 2002): - Organizational analysis looks at the effectiveness of the organization and determines where training is needed and under what conditions it will be conducted. The organizational analysis should identify: + Environmental impacts. + State of the economy and the impact on operating costs. 11 + Changing work force demographics and the need to address cultural or language barriers. + Changing technology and automation. + Increasing global/world market places. + Political trends such as sexual harassment and workplace violence. + Organizational goals (how effective is the organization in meetings its goals), resources available (money, facilities; materials on hand and current, available expertise within the organization). + Climate and support for training (top management support, employee willingness to participate, and responsibility for outcomes). The information needed to conduct an organizational analysis can be obtained from a variety of sources including: + Organizational goals and objectives, mission statements, strategic plans. + Staffing inventory, succession planning, long and short term staffing needs. + Skills inventory: both currently available and short and long term needs, organizational climate indices: labor/management relationships, grievances, turnover rates, absenteeism, suggestions, productivity, accidents, short term sickness, observations of employee behavior, attitude surveys, and customer complaints. + Analysis of efficiency indices: costs of labor, costs of materials, quality of products, equipment utilization, production rates, costs of distribution, waste, down time, late deliveries, repairs. + Changes in equipment, technology or automation. 12