Đề tài Developing and training human resource in PVFC

ties of the company includes: Fund Mobilization: Long term deposits; Issuing Promissory Notes, Bonds, Certificate of Deposits and other Valuable Notes to mobilize capital from domestic and international economic entities and individuals under the current laws; Borrowing from domestic and international financial institutions and credit institutions; Receiving Trust Fund from Government, domestic and international institutions and individuals; Lending: Short-term, medium term and long-term loans under the SBV regulations; Trust loans by the Government, domestic and international institutions and individuals under current credit law and trust contract; Consumer loans by installment payment; Documentary Discounting: Credit service to institutions and individuals through discounting and/or mortgaging bonds, commercial papers and other valuable notes; Rediscounting and/or remortgaging bonds, commercial papers and other valuable notes to credit institutions; Guarantee: To be ensured by PVFC’s prestige and financial capability. The assurance is compliance with Article 58, Article 59 and Article 60 of Credit Institution Law and Guidance of SBV. Other types of credit which are compliance with regulations of SBV; Account: Opening deposit accounts at SBV which is in the same zone with PVFC’s Head office, and other banks within the whole country. Opening deposit accounts at banks outside of Vietnam need to be approved by SBV; Providing credit service, PVFC has to open an account at SBV with an average balance remaining is not less than an amount stipulated by SBV; Cash services: collect money and make payment to customers; Investment, capital contribution, buy shares of enterprises and Institutions; investment in projects under contracts; Dealing in money market; Providing Trust Service and Agency Service in financial sector, bank, insurance, investment, including asset and capital investment management to institutions as well as individuals; Providing bank – finance – monetary advisory services; Forex dealing: Buy foreign currencies from Petro Vietnam, subsidiaries of Petro Vietnam, and their clients who have credit relationships concerned with their revenue from production, service and trading; Sell foreign currencies to objects as mentioned in point (a) to serve their demand on production, trading and services; Buy foreign currencies from credit institutions who have the legal right in dealing foreign currencies in Vietnam to ensure sufficient foreign currency sources to demand on production, trading, and services of objects in point (a) as well as demand on banking of PVFC; Sell foreign currencies to credit institutions who have the legal right in dealing foreign currencies in Vietnam to ensure sufficient VND currency sources to demand on production, trading, and services of objects in point (a) as well as demand on banking of PVFC; Foreign exchange service; Services for domestic correspondents, remittances, and gold trading; Agency for issuing bond, stock and other valuable notes of enterprises; Preserve service for precious assets, valuable notes, and other services. Organizational chart: There are 10 departments and divisions who are assigned to assist and provide consultancy to the Director General in his planning and marking, human resource, finance and accounting, internal audit and control, investment and credit risk management, project appraisal and other extents. They are: Department of Planning and Market Department of Human Resource Department of Accounting Department of Internal Control Department of Credit and Investment Risk Management Administration Department Department of Independent Appraisal Department of Executives Assistance Information and Technology Center Training Center There are 06 departments who are assigned to conduct sales as well as assist the Director General to the extend of investment, cash flow management, financial services, trust management, credit and others related, they are: Department of Fund Arrangement and Corporate Lending Department of Cash Flow Management Department of Finance Service Investment Department Department of Trust Fund Management Lang Ha Transaction Center Business result Table 1.1: PVFC’s business results from 2002 to 2006 Unit: million VND Items 2002 2003 2004 2005 2006 Assets and Owners’ Equity Total Assets 1,230,625 2,895,532 4,207,024 6,828,142 18,143,649 Owners’ Equity 106,194 112,402 318,531 359,674 1,134,859 Business results Total Revenue 65,534 133,881 214,799 429,127 1,023,421 Total Cost 60,372 127,947 206,499 400,263 897,119 Earning before tax 5,162 5,934 8,300 28,864 126,302 Corporate Tax 1,652 10,512 34,095 Net Income after Tax 3,510 5,934 8,300 18,352 92,207 Financial ratios Earning before tax/ Total Assets (%) 0.42 0.20 0.20 0.42 0.70 Earning before tax/ Owners’ Equity (%) 4.86 5.28 2.61 8.03 11.13 Earning before tax/ Total Revenue (%) 7.88 4.43 3.86 6.73 12.34 Net Income after Tax/ Owners’ Equity (%) 3.31 5.28 2.61 5.10 8.12 ( Sources of PVFC) From the above table, we can see that the company has a high growth rate, within 5 years from 2002 to 2006, the total revenue are 65.534 million (VND) in 2002 and 1023421 million ( VND) in 2006. PVFC’s development orientation is that financial investment and monetary finance services will be the key products and to generate main profit, revenue proportion from interest of loans and deposits will be reduced. In the period of 2002-2006, PVFC targets to reach average total assets’ growth rate of 162% per year and average revenue growth rate of 124% per year. Strong growth rate of investment in the period 2002-2006 increase assets proportion generated from investments to 30% of total assets and revenue from investment to 34.47%. Income from finance services in the period 2002-2006 account for 2% of total revenue with average growth rate of 66% per year. Proportion of deposits at credit institutions and loans will be reduced. Average proportion of revenue from interest of loans in this period will account for 25.5% of total revenue compared with 43.9% in the period . Revenue from deposits in the period 2006 account for 38.11% of total revenue. The number of new branches opened during the year reaches a record, bringing the total number of branches and such branches to nearly in 9 provinces and cities. PVFC has strongly committed to maintain its leading position in finance technology by successfully upgrading it core finance system. 3.2 Current situation of human resource development and training in PVFC. 3.2.1 Findings on current situation of HR at PVFC. 3.2.1.1 Scale and structure of PVFC Table 1.2: Scale and structure of PVFC HR in terms of education/ unit (person) Items 2004 2005 2006 2007 Number % Number % Number % Number % Postgraduate 26 8.44 29 8.65 31 7.61 81 7.75 University 252 81.8 266 79.4 332 81.5 855 81.8 College 10 10 15 4.47 17 4.17 69 6.6 Skilled workforce 20 20 25 7.46 27 6.63 39 3.73 Total 308 100 335 100 407 100 1044 100 (Source of PVFC) In 2004, the total number of post graduated is (accounted 26 for 8.44%) while this is 81 in 2007 (7.75%). In 2004, 252 people (81.8%) graduated from university and in 2007,855 (81.8%) graduated from university. Total workforce if increasing from 308 in 2004 to 407 to 1044 in 2006 and more than double in 2007. The table 1.2 shows an increasing of the PVFC’s workforce over the year. Table 1.3: Scale and structure of PVFC HR in term of age Age The number of people Unit (person %) 2003 2005 2007 2003 2005 2007 <35 107 181 879 51.19% 48.66% 84.19% 35-45 101 152 162 4.78% 45.37% 15.51% >45 1 2 3 44.03% 5.97% 0.3% 209 335 1044 100 100 100 (Source of PVFC) The following table 1.3 shows the comparison of HR over three years among 3 groups of age: Smaller than 35, from 35 to 45; and higher than 45. The proportion of labor for the group of smaller than 35 is very high and increase over the years from 51.19% in 2003 to 84.19% in 2007. In contrast, the proportion for the group of over 45 decrease from 44.03% in 2003 to 0.3% in 2007. So, the trend is that the labor force of PVFC is becoming younger. The reasons for that trend are scale of PVFC is increased with more branches opened, the services are diversified, the company recruited more young and educated staff to cope with new environment… There is a very fast growing in scale of workforce from 2004 to 2007 (more than triple). Educated labor percentages is very high ( more than 81% of university staff). The labor of PVFC are young but lack of experience so it is important to train and retrain staff to improve skills, update knowledge, make them possible to do new tasks and respond quickly with changing environment. 3.2.1.2 The quality of HR in PVFC Finding on quality of HR from surveying staff Table 1.4: Responding percentages of PVFC’ staff (staff evaluate themselves) Unit:% Number Items Very good Good Rather good Normal 01 Suistability between your own ability with your current job 04 62 27 06 02 Suistability between your available knowledge with your current job 07 49 35 09 03 Satisfaction of your current skills and experience with your current job 12 47 28 12 When staff evaluate themselves, in terms of suistability between ability with their current job, there are 62 respondents said good; 4 respondents answer very good, 27 respondents answer rather good, only 6 respondents answer normal. Figure 1-1: Number and percent of people evaluate the suistability between current job with own ability. When asking about the suistability of knowledge with your current job, 49 respondents think that their knowledge suit well with their current job (rate of good). 7 respondents answer very good, 35 respondents answer rather good, only 9 respondents answer normal. Figure 1-2: Number and percent of people evaluate the suistability vailable knowledge between with current job. When asking about the satisfaction of PVFC’ staff experience and skills to implement their current job, 47 respondents answer good, 12 respondents answer very good, 28 respondents answer rather good, only 12 respondents answer normal. From the above surveying results, we can see that in general, staff of PVFC think their ability, knowledge, skills and experiences are good enough. However, about 9-10% of them do not satisfy with their capacity. That means this persons should be taken the appropriate training courses. Figure 1-3: Number and percent of people evaluate the satisfaction of their experience and skills with their current job. After asking staff about themselves, the author have asked them to give their opinions about PVFC’s HR quality. The following table shows surveying results in detail: Table 1.5: Responding percentages of PVFC’ staff (staff evaluate PVFC’s HR) Unit:% Number Items Very good Good Rather good Normal 01 Suistability between PVFC’s HR ability with their current job 02 36 52 09 02 Rate about PVFC’s HR qualification 3 44 50 02 03 Rate about skills and experiences of PVFC’s staff 04 28 56 11 When mention about the suistability between PVFC’ HR ability with their current job, 36 respondents answer good, 2 respondents answer very good, 52 respondents answer rather good, only 9 respondents answer normal. Figure 1-4: Number and percent of people evaluation about the suistability between PVFC’ HR ability with their current job. When to be asked about rating about PVFC’ HR qualification , 44 respondents answer good, 3 respondents answer very good, 50 respondents answer rather good, only 2 respondents answer normal. Figure 1-5: Number and percent of people rating about PVFC’ HR ualification. When to be asked about skills and knowledge of PVFC’s HR, 28 respondents answer good, 4 respondents answer very good, 56 respondents answer rather good, only 11 respondents answer normal. From the above results, in general, quality of PVFC’s HR is only at moderate level ( 52 to 56% of rather good answering). There are also about 9-10% of staff having normal answers. So these show that there is not quite good satisfaction of PVFC’ staff with their current capacity on knowledge, skills and experiences and there is a need for training. Figure 1-6: Number and percent of people rating about skills and nowledge of PVFC’s HR. From surveying staff ( from question 01 to question 06), the staff quite understand situation of their current job with their ability. There are several reasons that have been stated out by the respondents: Budget restraints that limit opening training courses to improve skills and knowledge for the staff. The company has no long term HR planning. It depends on the relationship of the employee that has good performance appraisal with their direct manager. There may have as assessement and not transperencies Current situation of the company. Number of young and educated people is many but lack of experience and updated knowledge to meet urgent requirement of competition. PVFC is stated own company so it is hard to issue a policy that can help to raise incentives especially when it affect the whole company, it also has to ask the permission from the upper level. Findings on quality of work performance from in depth interviews and survey staff ( question 12 to question 14): From in depth interviews, most of the managers said that quality of work performance if not very good: Leadership does not make right appraisal of importance of the performance, does not see fully interests and values of this work brought. Characteristic and requirements for works have not specific difference at departments and divisions of different functions. Standards to give mark are not clear. Giving marks on the targets of employees and leaders is based on feeling. Inequity has happened right form the first step of the performance appraisal. Managers have not participated in any training courses about evaluated skills. When managers make evaluation about employees, there is an affect of feeling in assessment process. From surveying staff, question 12 to 14 provide answers to make more clear about the reasons why having such statement of HR quality. In other words, they illustrate impact of other factors such as policies of HR appraisal, compensation and motivation, job allocation to the quality of work performance. The following table provides this in detail: Table 1.6: Responding percentages on policies and their impact to quality of work performance Unit:% Number Items Very usually usually Less usually None 01 Frequency of job performance appraisal 24 68 04 04 Very good Good Rather good Normal 02 Satisfaction of staff with motivation policy 06 77 14 03 03 Impact of motivation and compensation policy 09 27 44 22 04 Impact of job allocation and assignment 06 32 41 20 05 Impact of staff assessment 10 33 38 18 To answer the question of how often the company evaluate staff’ job performance, there are 68 respondents answer usually, 24 respondents answer very usually, 4 respondents answer less usually, only 4 respondents answer none. For the question of the satisfaction of the staff with the company motivation policy, there are 77 respondents answer good, 6 respondents answer very good, 14respondents answer rather good, only 3 respondents answer normal. For the impact of motivation and compensation policy to quality of work performance, there are 27 respondents answer good, 9 respondents answer very good, 44 respondents answer rather good, 22 respondents answer normal, only 01 respondents answer bad. To evaluate the impact of policy of job allocation and assignment, there are 32 respondents answer good, 6 respondents answer very good, 41 respondents answer rather good, 20 respondents answer normal. To evaluate the impact of the staff assessement policy, there are 33 respondents answer good, 10 respondents answer very good, 38 respondents answer rather good, only 18 respondents answer normal. The company have evaluate staff job performance . This can give staff chance to talk directly manager. They can express ideas about performance problems. Staff can share their viewpoint and reach to mutual understanding on what they do expect and understand clearly about the requirement from jobs, procedures for appraisal process. About their satisfaction with the company motivation policies: Most of the interviewees agreed that they satisfy well with this policy ( 77%) and emphasis on the importance of these policies to improving quality of work performance ( about 30%-40%) They give the employee encouragement and enthusiasm to work toward organization goals. 3.2.2 Findings on current situations of HR training and development at PVFC 3.2.2.1 Training needs assessment: To build standards for training needs assessment, the first is a need to build a job description. A job description at PVFC includes contents: brief works, main tasks and responsibilities, internal and external relations of the financial, authority as carrying out a task, requirements for degree, experience, professional skills, knowledge, attitude and behavior. Building the performance appraisal standards for every working group has to require and target of management. Training needs assessment in PVFC is conducted for all staff of PVFC as a part of the annual performance development review. New staff need to have their training needs assessed more regularly. Training needs assessment in PVFC for all staff is also conducted to indentify staff need on capacity building and to give staff on opportunity to have their full participation in the discussion on the need. All employees of PVFC are encouraged to discuss the training from which they feel they could most benefit. Wherever possible, staff will be offered training relevant to their positions. Training in PVFC is an opportunity not a right and therefore it is not possible to offer staff training in skills which are not directly linked to there positions. I analyzed job analysis and find that PVFC staffs who do following works: Receiving and replying email, fax from customers about credit Reviewing claim documents in order to give their opinion before summit to manager. Putting and updating figure, information into computer database. This information will be helping them consider and compare with other business in the future. Putting information to accounting software in order to checking figure with accounting department. Updating figure to prepare statistic for annual renewal Participate negotiation with partners Participate to prepare and organize seminal Role of staff is important. PVFC staff need to have knowledge, skills such as calculation, collection and information analysis, figure statistics. 3.2.2.2. Training design In October annually, every department from head office of PVFC to 8 branches, after training needs assessment, the HR department use outsource service to build training plan, labor plan (annual plan, not long term plan) to help improve skills, knowlege and behaviors of employees, make them be ready to do new tasks and respond quickly with changing of environment. After approval of training plan by the general director, training center begin to arrange and deploy the training programs.. Training plan have contents: The purpose and content of courses Location of training Form of training ( or method) Quality, the number and level of people prepared for training Cost of training PVFC can not carry our training design and have to use outsource services. It does not meet staff expectation on training effectiveness. Training conduction the location, time and other logistic arrangements for training are prepared and informed to staff timely. Almost staff is requested to priority other urgent work so staff can not participate the training course fully. It wastes of cost for conducting the training and also impacts to the training effective. Using out sourcing service, PVFC are passive. Therefore training conducting is difficult to plan and implement effectively 3.2.2.3. Training conduction About quantity of training: Table 1.7: Number of staff participated in training courses over the years. Year Total of labor Number % 2002 201 231 114 2003 209 317 151 2004 308 383 124 2005 335 443 132 2006 407 445 109 2007 1044 1179 112 Average 417 499 123 ( Source: PVFC) The people participate in the training course are increased by each year from 2002 to 2007. In 2002, there are only 231 people but in 2007 this number is 1179, increasing more than 5 times compared to this in 2002. One year people are participated at least one training course. Many people are taken several training course per year. At the same time, the length of course are various. If they participate about easy course make from 5 days to 7 days. If they participate in language ( English) they need time from 3 months to 4 months. So that people joined many different course. This shows the company has tried much on organizing training courses, tried provide as much as possible. About contents of the training: Quantity of training is so good but how about the content of training ? The following table shows this in detail: Table 1.8: Staff point of views on content of training courses. Number Items Very good Good Rather good Normal 01 The training programs are good to improve your work performance 09 27 38 25 Very suitable suitable None 02 Suitablility of training content with business objectives and necessary for your job 10 62 27 Suitable objectives Content Method assesement 03 Importance of things to improve training and development activities 23 54 18 04 About location and school PVFC organized training course in VN and foreign country. PVFC have implemented training activity with new method: teacher from PVFC organize for new staffs in PVFC. Although, PVFC have implemented new training course but every department of PVFC are successes in local training course. But departments in PVFC are busy their work so they can not arrange follow the task of training center. Table 1.9: The people participate in the training courses in VN and foreign country. Year Total (people) Training course Structure (%) In VIETNAM (people) In foreign country (people) In VIETNAM In foreign country 2002 231 220 11 95.23% 4.77% 2003 317 301 16 94.95% 5.05% 2004 383 368 15 96.08% 3.92% 2005 443 401 42 90.51% 9.49% 2006 445 393 52 88.31% 11.69% 2007 1179 1115 64 94.57% 5.43% ( Source: PVFC) The table show that the number of people who attend training courses in foreign countries are much lower than that in Vietnam. It is easy to understand because of cost of training in foreign country are much more expensive than that in VIET NAM. About cost of training: Table 1.10: The cost of training activity in VN and foreign country. Year Total( VND) Structure (%) In Viet Nam (VND) In foreign country ( VND) In Viet Nam In foreign country 2002 1.202.250 922250 280.000 76.71% 23.29% 2003 2.346.520 1196520 1.150.000 50.99% 49.01% 2004 2.885.400 1445400 1.440.000 50.09% 49.91% 2005 3.206.000 1616000 1.590.000 50.40% 49.6% 2006 4.290.000 1490000 2.800.000 34.73% 65.27% 2007 5.627.555 1.791.979 3.835.576 31.84% 68.16% ( Sources of PVFC) In 2006 and 2007, the cost of training in foreign country are accounted about 65.27% and 68.16% but there are only 11.69% and 5.43% of people respectively sent to study abroad. The content of training course in foreign country are the difficult areas that Vietnam can not teach and need to have support from oversea. Priority training fields are international credit for enterprise, international credit for individual, international investment, international financial service, international funds managements. Two years ago, these training areas have been taken by foreign professors at foreign countries so that this lead to increase foreign training costs. In the past, cost of domestic training is higher but now this is reducing. The table shows there are 10 respondents answer that the content of training is very suitable with business objectives and necessary for their job, there are 62 respondents answer suitable, 27 respondents answer no suitable. Figure 1-7: Number and percent of people - the training contents which attended suitable with PVFC’s business objective sand necessary for job. When asked about benefit of training programs to work performance, there are 27 respondents answer good, 9 respondents answer very good, 38 respondents answer rather good, only 25 respondents answer normal. Figure 1-8: Number and percent of people - the