Human resource development in industrial parks in Bac Giang province

Leaders, managers of enterprises at industrial zones need to identify

human resources, especially human resources with professional

qualifications, which are now very valuable assets in the development

process of enterprise. As the scientific and technological level of

enterprises is increasingly improved, the qualified human resources

become more and more important and the key competitive advantage of

enterprises with other organizations. In order to be aware of becoming

practical actions to effectively develop these highly qualified human

resources, leaders need to properly assess the qualifications of human

resources through performance assessments

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trial parks has contributed to attracting investments to develop the local and national economies. 4. Research Methods This thesis applies such basic research methods applied in social science research and the economic sector as qualitative analysis (combined with descriptive statistics, analytical statistics, comparative analysis and synthesis) in combination with quantitative analysis. 5. New scientific contribution from this thesis Regarding theoretical framework: - The thesis has synthesized theoretical issues related to human resources and SHRs development, covering industrial enterprises. This dissertation gives its own views on key activities to develop SHR in enterprises: Developing SHR should not only focus on effective SHR training and development but also other important activities including evaluating and rewarding SHR and developing corporate culture. One of the new contributions to the theoretical framework from this thesis is to consider the SHR development in industrial enterprises under the impact of the industrial revolution 4.0, which requires the industrial enterprises to continuously develop the SHR capacity to satisfy new demands in production and business. Regarding practical framework: - The thesis has done research and learned international SHR development experience from such nations as Singapore, China and 6 Japan and drawn some valuable lessons applied to industrial enterprises in Bac Giang Province. - Development of SHRs in the IR 4.0 is a new research content for the industrial enterprises in Bac Giang Province. The research findings have clarified the current status of SHR capacity in terms of knowledge, skills and labor attitudes as well as limitations in developing SHRs in industrial enterprises in Bac Giang Province. Since then, the thesis points out the causes of the limitations as a basis for proposing a number of solutions to improve develop SHRs for industrial enterprises in Bac Giang by the year 2025, with a vision to the year 2030. 6. Scientific and practical significance of this thesis The research evaluation by this thesis aims to contribute to the theoretical and analytical frameworks for developing SHRs in industrial parks. This thesis then further clarifies the current capacity of SHRs in industrial parks in Bac Giang Province, then proposes some recommendations to improve the quality of SHRs in the fast-growing IR 4.0. 7. Structure of thesis The thesis consists of four chapters as follows: Chapter 1: Literature review. Chapter 2: Theoretical and practical basis for developing professional and technical human resources in industrial parks. Chapter 3: Current situation of human resource in industrial parks in Bac Giang Province. Chapter 4: Solutions to develop professional and technical human resources in industrial parks in Bac Giang Province . 7 CHAPTER 1: LITERATURE REVIEW 1.1. World-level literature 1.1.1. Studies on human resources Although there has been a lot of worldwide research on human resources-related topics, the author synthesizes research mainly in two directions: Research on criteria for assessing human resource capacity; And (2) research on improving organizational human resource capacity. In particular, studies on criteria for assessing human resource capacity often focus on analyzing the factors that constitute the quality of human resources, including professional knowledge, working skills, working styles, characteristic qualities, intelligence and creativity by Andrew Matthews (2002), Newton et al. (2005), Deniel Goleman (2007), Keren Nesbitt Shanor (2007), Sharma (2009), Srabani Ganguli (2010), Monica M Lee (2012), Napoleon Hill (2014), Wayne Cordeiro (2015 ), Dale Carnegie (2016), John C. Maxwell (2018). The research on improving human resource capacity has consistently improved human resource capacity in order to develop individual knowledge, skills and awareness, thereby, contributing more effectively to the organizational performance. There are also studies, which have emphasized that learning, training and human resource development are key activities to improve the capacity of organizational human resources by Z. Griliches. (1997), Stella M.Nkomo et al (2010), Word Bank (2014). 1.1.2. Studies on human resource development There are many studies worldwide on the topic of HR development in the organization. These studies have focused on clarifying issues related to human resources, the role of human resources and human resource development for organizations; and analyzing the relationship between HR development and the sustainable development of each organization. Typical studies of the authors include: Theodore Schultz 8 (1961), Leonard Nadler (1984) , The Odore W. Schultz (1993), Cenze D. A, Robbins S (1994), Z. Griliches (1997) , Sambrook, S (2004), Kristine Sydhage, Peter Cunningham (2007), Monica M Lee (2012), David Mc Guire (2014), ... These studies focus on clarifying the concept of human resources, HR development and the contents of HR development activities in organizations. 1.2. Research status in Vietnam In Vietnam, the trend of deep integration into the world’s economy and the fast-growing IR 4.0 development have brought many opportunities but posed many challenges to HR development. Therefore, in recent years, many researchers have done research on HR development to orient and enhance human resource capacity to meet the organizational sustainable development. Among them are the following studies: 1.2.1. Studies on human resource development In Vietnam, the research on human resource development mainly clarifies the content of human resource development and human resource development activities, typically by Bui Van Nhon (2006), Le Thi My Linh (2009), Dinh Van Toan (2010), Nguyen Van Thuy Anh (2014), Nguyen Thi Thanh Quy (2016), ... 1.2.2. Studies on human resource capacity development Studies on human resource development mainly consider the aspect of improving the human resource quality (HRQ). These studies have significantly contributed to the scientific criteria of HRQ evaluation and improvement. Regarding practical contributions, these studies have analyzed the HRQ’s actual state, clarified the causes of HRQ’s limitations and propose solutions to improve HRQ for organizational structures. Typical studies include: Nguyen Ngoc Tu (2012), Truong Minh Duc (2013), Pham Anh (2015). 9 In general, the literature review above is related to the topic of this thesis in terms of the criteria for HRQ assessing, the contents of HR development activities, along with solutions to develop and improve the quality of human resources, and is a valuable source of reference for the author to finalize this research. 1.2.3. Studies on human resource development in industrial zones In recent years, the topic of human resource development in industrial parks has been interested by many researchers in Vietnam to contribute useful recommendations for the development of industrial parks in speeding up the process of national industrialization and modernization. Some case studies are doctoral dissertations, master's theses, scientific papers by Mai Van Nam and Nguyen Thanh Vu (2010), Le Thanh An (2011), Nguyen Xuan Chinh and Do Thi Van Lien (2012), Canh Chi Hoang and Ngo Thi Hong Giang (2013), Canh Chi Hoang (2014), Le Quang Hieu (2015), Vu Thi Ha (2016), Nguyen Thi Thuy Dung (2016), Huynh Thi Thu Suong (2016), Vo Thi Ngoc Lan and Nguyen Tri (2017) , ... 1.3. Overview of this thesis’ research content and direction 1.3.1. Overview of this thesis’ research content International and national research has shown a lot of useful contribution to the field of human resource quality, capacity and development. These studies have paved up the theoretical foundations regarding concepts, contents, problems and corresponding solutions to HR-related issues in various situations. Research in Vietnam has effectively applied and inherited theoretical frameworks from research projects abroad. Regarding HR development in industrial zones, domestic studies have mainly put an emphasis on the State management over HR development in industrial parks, but there have not been many studies to analyze this topic from the position of enterprises’ HR 10 management in depth. Therefore, some research gaps are drawn as follows: 1.3.2. The gap in the previous studies - Firstly, the previous research on HR development at industrial parks has mainly based on the perspective of the State Management Board and the State, thus there is a lack of in-depth research from the perspective of enterprises in organizational HR development activities. - Secondly, the above studies mainly assess the quality of HR development regarding the criteria measured by physical, intellectual and mental strength. However, the evaluation criteria of intellectual and mental strength have not been evaluated deeply, and not associated with the capacity to perform the work of the industrial parks’ HR. Specifically, the analysis and solutions proposed by the above studies are not associated with the requirements of the capacity of SHR in the context of the IR 4.0. - Thirdly, the main activities of organizational HR development include: Ensuring sufficient quantity, improving quality, and appropriateness of human resources structure. However, in the context of the presently developing IR 4.0, the appearance of robots and artificial intelligence has led to the risk of excessive unskilled human resources due to the fact that they are not technically qualified to work in industrial enterprises. Therefore, according to the author of this thesis, in the present time, how to develop technical expertise and improve the attitude and industrial labor style for employees to adapt to the new science and technology environment in the present and in the future is an urgent topic for industrial enterprises. - Fourthly, currently there is no comprehensive research project and profound solutions to solve the problems relating to technical expertise 11 development, skill development and industrial labor attitude for employees in the industrial zones in Bac Giang Province. 1.3.3. Research direction of this thesis - Regarding the approach: The thesis focuses on research and measures to develop human resources in enterprises in four industrial zones in Bac Giang Province. Human resource development is understood as measures to develop the capacity to perform the work of human resources and ensure the retention of long-term talents for an organization. - Regarding measures to develop SHRs: The dissertation focuses on five main measures to develop capacity and maintain the HR commitment, covering: (1) Current assessment of human resource status; (2) Human resource training; (3) Human resource usage; (4) Treating human resources; (5) Developing corporate culture. - Regarding the content of the study: (1) Systematizing and developing the theories on development of human resources and technical skills; (2) Analyzing the current status of technical expertise in the industrial zones of Bac Giang Province, focusing on in-depth analysis of the current status of SHR capacity; (3) Analysis of the status of technical expertise development in industrial parks in Bac Giang Province; (4) Indicating the factors, which result in limitations in developing SHR in the industrial zones in Bac Giang Province and (5) propose some solutions to develop more technical expertise in the industrial zones in Bac Giang Province by the year 2025, vision by the year 2030. - Regarding the context of human resource development: theoretical framework, analysis, assessment of human resource capacity, human resource development, solutions to develop human resources in the industrial zones in Bac Giang Province are located in context of sustainable development targets of industrial enterprises in 12 the process of scientific and technological development of the industrial revolution 4.0. 1.4. Research questions, research hypotheses 1.4.1. Research questions Firstly, what theoretical framework can be applied to the development of SHR in enterprises? Secondly, what is the capacity to perform the work of SHRs in the Bac Giang Province’s Industrial Enterprises? Thirdly, what are the shortcomings in developing SHRs in industrial enterprises in Bac Giang Province? Why? Fourth, what are the solutions and recommendations to improve the capacity to perform work for human resources and perfect the SHR development in industrial parks in Bac Giang Province? 1.4.2. Research hypothesis - Economic and SHR in industrial enterprises in Bac Giang Province have limited knowledge, professional skills and industrial labor style to meet the production and business requirements by industrial park enterprises. - The measures to develop human resources and technical skills in the industrial enterprises in Bac Giang Province have been not efficient and have not promoted the capacity to perform work for employees and have not created a loyal connection between the employees and the enterprises. - The IR 4.0 requires human resources, especially SHRs, to constantly improve knowledge, professional skills and professional attitude and behavior to meet the sustainable development requirements of industrial enterprises. 13 CHAPTER 2: THEORETICAL AND PRACTICAL BASIS FOR DEVELOPING PROFESSIONAL AND TECHNICAL HUMAN RESOURCES IN INDUSTRIAL PARKS 2.1. The concept and importance of professional and technical human resource development in industrial parks 2.1.1. The concept of professional and technical human resource development in industrial parks This thesis presents some concepts of Industrial park; Industrial park enterprises; Professional and technical human resource in industrial parks; The professional and technical human resourse development in industrial parks. 2.1.2. The importance of professional and technical human resource development in industrial parks 2.2. The content of professional and technical human resource development in industrial parks 2.2.1. The professional and technical human resouce development in industrial parks. 2.2.2. Streamline structure of professional and technical human resource in industrial parks. 2.2.3. Develop capacity of professional and technical human resource in industrial parks: 2.2.3.1. Abount knowledge: Knowledge of job career; Knowledge of culture and society; Knowledge of politics and law; Knowledge of labor safety; Knowledge of foreign languages. 2.2.3.2. About skills: Hard skills (to perform technical operations related to work; to use tools, working facilities; to operate machines and equipment; to use vehicles, labor protection and safety equipment; to understand and make technical reports); And soft skills (Communication skills; Problem solving skills; Teamwork skills; Lifelong learning skills). 14 2.2.3.3. About working attitude: Industrial style and labor discipline; The ability to be devoted and suffer from pressure; Working mind. 2.3. The main activities of professional and technical human resource development in industrial parks 2.3.1. Current status assessment of quantity human resources 2.3.2. Human resource training 2.3.3. Human resource arrangement 2.3.4. Human resource compensation 2.3.5. Corporate culture development 2.4. Experience of human resource development in the world and lessons learned for industrial parks in Bac Giang 2.4.1. Experience of human resource development in Singapore 2.4.2. Experience of human resource development in China 2.4.3. Experience of human resource development in Japan 2.4.4. Lessons learned from human resource development at industrial parks in Bac Giang province Firstly, human resource assessment should be carried out regularly and associated with human resource development training plans. Secondly, education and training activities play an important role in developing capacity and skills for human resource; so it should be paid attention to regularly implement to improve human resource capacity in general and professional and technical human resource in particular. Thirdly, compensation for human resources should focus on the spiritual life of employees. Fourthly, building and developing a strong corporate culture through the human management philosophy associated with corporate development in all stages. 15 CHAPTER 3: CURRENT SITUATION OF PROFESSIONAL AND TECHNICAL HUMAN RESOURCE DEVELOPMENT IN INDUSTRIAL PARKS IN BAC GIANG PROVINCE 3.1. An overview on human resources in industrial parks in Bac Giang Province 3.1.1. Establishment and development history of industrial parks in Bac Giang Province Bac Giang is a province in the Northeastern of Vietnam, located on the economic corridor of Nam Ninh (China) – Lang Son – Ha Noi – Hai Phong, adjacent to the Northern key economic region. With convenient geographical location and transportation, Bac Giang province has many potentials and advantages to develop economic and trade with regions and countries in the region and the world. Although there are many advantages and potentials for development, the industrial parks of Bac Giang province are formed and developed quite slowly compared to other provinces and cities arround the country. Implementing policies of the Party and Government in planning and developing industrial parks, so far, Bac Giang has 6 industrial parks in operation with a total area of 1,462 hectares, attracting thousands of domestic and foreign businesses for production and business investment with many different industries and fields. In which, there are 4 industrial parks in operation with a total planning area of 1,058 hectares, including: Dinh Tram industrial park, Song Khe – Noi Hoang industrial park, Quang Chau industrial park and Van Trung industrial park; 2 industrial parks are Hoa Phu and Viet Han being in the process of investment and newly planning. 3.1.2. Characteristics of industrial parks in Bac Giang province Firstly, the industrial parks of Bac Giang province are located in areas that are favorable for industrial development; Secondly, the industrial parks in Bac Giang province are small, averaging the industrial parks with an area of about 267.5 hectares/ 1 industrial park; Thirdly, it is multi-owership from investors. From these specific 16 characteristics, it is required for industrial enterprises to develop so that they are commensurate with the regional potentials and strengths to take advantages and limit challenges. 3.1.3. An overview on industrial enterprises in Bac Giang province According to statistics by industrial park management, as of June 2018, Bac Giang industrial parks have 208 enterprises operating in production and business. In which, Dinh Tram industrial Park has 96 enterprises; Quang Chau industrial park has 16 enterprises; Song Khe – Noi Hoang industrial park has 32 enterprises and Van Trung industrial park has 64 enterprises. In which, the number of FDI enterprises accounts for 75% of the total number of industrial enterprises. Main investment industries of industrial enterprises include: Manufacturing, assembling electronic components, mechanical engineering, solar battery and garment,...[104]. In particular, companies operating in the field of electronic components assembly are accounted for the largest proportion, then to companies of construction material manufacturing and then the enterprises of garment manufacturing, mechanicial engineering and wood production, clean water production, 3.1.4. Human resources in industrial enterprises in Bac Giang province Human resources scale: By the end of June 2018, the total number of employees working in 208 industrial enterprises is 82,312 employees. Van Trung industrial park is attracting and using the most workers with 30,208 employes and Dinh Tram industrial park is with 23,549 employees. The number of employees working in two other industrial parks are respectively: Song Khe – Noi Hoang industrial park (7,309 employees); Quang Chau industrial park (21,246 employees). Human resources strusture: According to gender, job position and the structure of professional and technical human resource 17 According to human resource development plan in industrial park in the period 2014-2018, the proportion of professional and technical human resource accounts for a low rate, mainly as universal human resources (without technical expertise), the structure of professional and technical human resource is summarized by years in table 3.7 below. Table 3.7. The structure of professional and technical human resource in the period 2014-2018 Unit: People No Degree 2014 2015 2016 2017 6/2018 I Technical expertise employees 13.098 15.098 15.901 19.677 23.668 1 Post – graduate 2.546 2.992 3.178 4.218 5.435 2 University 3 College 2.467 2.969 2.982 3.519 3.775 4 Vocational College 5 Intermediate Professtional diploma 2.777 2.647 2.501 2.707 3.098 6 Intermediate vocational diploma 7 Pre-intermediate level 5.308 6.490 7.240 9.233 11.360 II Non technical expertise employees (%) 32.684 32.120 37.635 51.701 58.644 The proportion of technical expertise employees (%) 27,5 31,9 29,7 27,5 28,7 The proportion of technical expertise employees in 2015 increased by 15.3% compared with 2014 The proportion of technical expertise employees in 2016 increased by 5.3% compared with 2015 The proportion of technical expertise employees in 2017 increased by 23.7% compared with 2016 The proportion of technical expertise employees in 2018 increased by 20.3% compared with 2017 Total I + II 45.782 47.218 53.536 71.387 82.312 18 Source: Human Resources Department of Industrial Park Management in 2018 and author’s calculation 3.2. Current development situation of professional and technical human resource in industrial parks in Bac Giang province 3.2.1. Current status assessment of human resource 3.2.1.1. Current status assessment of the quantity and structure of professional and technical human resource According to data by Bac Giang industrial park management, at the end of June 2018, out of 82,312 employees working in enterprises in Bac Giang industrial park, there are 23,668 professional and technical employees (accounting for 28.7%) and the previous years are respectively 19,677 employees in 2017 (accounting for 27.5%); 15,901 employees in 2016 (accounting for 29.7%); 15,098 employees in 2015 (accounting for 31.9%) and 13,098 employees in 2014 (accounting for 27.5%). Regarding the structure of technical specialized human resource, according to the survey results, among 12.6% of technical specialized human resource, employees aged from 18 to 35 accounting for the highest percentage with an average of 85%. Among them, most of them are with pre-intermediate level, accounting for 13.5%, employees graduated from College, University and Post-Graduate accounting for 12.7% Regarding the structure of technical specialized human resource according to occupations: The need of technical expertise employees is different among enterprises and industries, in which, the textile, electric- electronics and mechanical engineering are three sectors accounting for the highest proportion of technical expertise employees with respectively: 15.7%; 10.45% and 7.9%; The lowest rate belongs to manufacturing industry with 6.55% and 59.4% in other sectors. 19 3.2.1.2. Capacity assessment of professional and technical human resource The capacity of technical specialized human resource is analyzed and evaluated through criteria groups of knowledge, skills and working attitudes. 3.2.2. Current situation of human resource training Based on the surveys of technical specialized human resource and interview with managers and leaders from industrial enterprises, the dissertation presents, analyzes and evaluates the results of the status of technical specialized human resource training at industrial enterprises by contents: Determining the needs, content and form of training, evaluating the training. 3.2.3. Current situation of human resource arrangement and use The above results show that only 32/280 (10.7%) of interviewees think that their current jobs are very suitable with t

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