Human resources training in manuafacturing at south korea’s enterprises in Vietnam

ng in manuafacturing at some South Korea’s enterprises in Vietnam has been executed in different forms and different effects. Hypotheses 2: Some internal factors affecting the human resources trainingin in manuafacturing at South Korea’s enterprises: learning culture of enterprises, remuneration policies, learning capacity of employees, training programs, human resources input. 6 Hypotheses 3: Develop human resources training in manuafacturing is an important solution for South Korea’s enterprises in Vietnam. 4.2 Method of research * Qualitative research: Statistical method; System method; Expert interview; sociological survey Quanlitative research Conducting a survey on assessment of human resources training in manuafacturing including two types: employees and employers. The topic uses methods inheriting and using information from secondary sources, explanations and inductive methods, synthesis and analysis methods, comparison methods, methods of collecting and analyzing primary and secondary data. * Data collection: Collecting primary and secondary data * Methods of analysis and data processing Sampling: primary data collected in 2017 and 2018, processed in 2018 and 2019 on the training of human resources of South Korea’s enterprises in Vietnam, the author proceeds surveys in enterprises. The author has designed a questionnaire for 03 subjects, i.e. managers, workers and service staff to collect primary information about the research content. The total number of questionnaires collected is 282. Data processing: Using SPSS 22.0 software to analyze correlation to assess the impact of factors affecting workforce training activities of South Korea’s enterprises in Vietnam. 5. Output or contributions of the thesis First, on the basis of research and systematization of documents on human resources training in manuafacturing at enterprises; the author inherited the model of factors that affect the human resources training in manuafacturing and develop a research model on internal factors that affect the human resources trainingat enterprises. Second, the thesis analyzes and identifies important factors in the internal environment of enterprises that affect the training of high-quality 7 human resources in manuafacturing, supporting enterprises to have appropriate solutions to achieve high outcomes of the training. Enterprises can evaluate the advantages, disadvantages as well as reasons in order to set up appropriate and long-term training plans. Third, setting up orientation for Enterprises plans for their further finance in human resources training in manuafacturing to respond to the international economic integration and the Industry 4.0. Fourth, the solutions in the thesis are documents to support managers and staff who are in charge of training activities at their enterprises. At the same time, using the scale to evaluate training activities of each training course will contribute to improving the quality and efficiency of training at enterprises. Fifth, Based on the research results, the author recommends lessons learnt about human resources training in manuafacturing at enterprises in Vietnam. This is a new approach of the thesis compared to previously theoretical studies on assessing the factors affecting the training human resources in manuafacturing at enterprises. 6. Theoretical and practical significance of the thesis 6.1. Theoretical significance The thesis will further clarifies employment situation and quality of human resources training at South Korea’s enterprises in Vietnam. The results of the Thesis have contributed to the human resources training in manuafacturing when studying this content in many sectors, getting more lesson learnts in the way of accessing and analyzing training labor that will be provided to relevant groups. 6.2. Practical significance The thesis clarifies the situation of human resources training in manuafacturing at South Korea’s enterprises; at the same time analyzing, evaluating and providing suggestions for useful solutions for references of the staff and human resources training at South Korea’s enterprises in Vietnam in order to develop appropriate training plans for each enterprise; 8 contribute to the development of South Korea’s enterprises in particular and Vietnamese enterprise in general. 7. Structure of thesis The thesis consists of 4 chapters: Chapter 1: Overview. Chapter 2: Theoretical and practical significance of human resources training in manuafacturing at enterprises. Chapter 3: The current situation of human resources training in manuafacturing at South Korea’s enterprises in Vietnam. Chapter 4: Solutions to develop activities for human resources training in manuafacturing at South Korea’s enterprises in Vietnam Chapter 1: OVERVIEW 1.1. Overview of issues related to the thesis The authors Nguyen Ba Ngoc (2011); Nguyen Dinh Phan, Nguyen Ke Tuan (2007); Bui Ton Hien (2009) supposed that persons participating in the labor market do not discuss and perform their tasks well, so the human resources input of enterprises in general have not met requirements of their business 1.1.1. Overview of issues relating to objectives and roles of human resources training in manuafacturing According to Jame R. David Ph. and Adelaide B. David (1998). Vocational training and human resource development have become a function of enterprises/institutions since the 18th century and confirmed its role over time. Nguyen Ngoc Quan, Nguyen Van Diem (2014) gave an overview of human resource management, planning and allocating human resources, creating labor motivation. 1.1.2. Overview of tasks and training methods of enterprises Author Tran Kim Dung (2015) has developed steps of an effective human resource management process. Nguyen Quoc Khanh (2010) highly appreciated the role of training and occupational skills development to 9 promote the capacity of employees. Onuka, A.O.U. & Ajayi, Kassim.O (2012) indicated that training and development is an activity that can significantly contribute to the overall efficiency and profitability of one organization. 1.1.3. Overview relating to practical human resources training activities in manuafacturing Regarding the lessons learnt about training of other countries, Nguyen Duy Dung (2008) is based on studies on the historical process of Korea, Japan which were destructed by war, poor countries; with the strategy of training and human resources development, have become an economically, socially developed countries, Ngo Xuan Binh (2012) focuses on analyzing and evaluating Vietnam - Korea relations since the two countries established official diplomatic relations (1992) until the end of the first decade of the twenty-first century. 1.1.4. Overview documents of main factors affecting the training The research on factors affecting human resources training in manuafacturing, Nguyen Van Thuy Anh (2014) evaluated the results of training and development of technical workers of enterprises through assessment of the level of response technical worker job after being trained with knowledge, skills, work attitude and future career development ability. Dinh Thi Hong Duyen (2015) qualitative and quantitative research has measured the factors affecting the state-of-the-art development in enterprises in the digital industry. 1.1.5. Overview documents relating to assessment of training activities A.K.L. Jayawardana et al (2008) said that training effectiveness is measured by the number of learners who successfully adopted the knowledge learned to the CV (penetration), and the time consuming for the learner to apply CV (maintain level) and after how long does TC realize the overall benefits (speed), training efficiency is influenced by both the employee and the working environment, beyond the ability to adjust of employees - also known as organizational factors 10 1.2. Gap and direction of the thesis  Gap of the thesis Until now, there is no in-depth research on human resources training in manuafacturing in general and for South Korea’s enterprises in Vietnam in particular, with the analysis of the influencing factors considering the characteristics of South Korea’s enterprises made in Vietnam. In the current context, with the strong development of Industry 4.0 changing the requirements of production manpower and strong cooperation with South Korea’s enterprises, there is a need for in-depth research on human resources not only meeting the requirements of Korean enterprise but also improving the quality of human resources in Vietnam in the new time. These are suggestions for implementation of the selected thesis. * Direction of the thesis - In terms of theory: The thesis on human resources training in manuafacturing at enterprises, will clarify: (i) The concept and content of human resources training activities at enterprises; (ii) Factors affecting the human resources trainingof enterprises. - In practical conditions: (i) The thesis will analyze and evaluate the human resources training activities in manuafacturing at South Korea’s enterprises in Vietnam on the basis of the established theory; (ii) The thesis will propose directions and solutions to human resources training in manuafacturing for South Korea’s enterprises in Vietnam and adoptions to local enterprises; (iii) The thesis gives some lessons learnt about human resources training in manuafacturing for Vietnamese enterprises. In this research, the author focuses on evaluating the human resources training in manuafacturing at South Korea’s enterprises in Vietnam for human resources training in terms of knowledge, skills and attitudes. With the attention, investment and implementation of each enterprise is different, therefore the training output is also different. However, South Korea’s enterprises should be proactive in recruitment, training and remuneration plans to attract and maintain skilled labors. 11 Chapter 2: THEORETICAL AND PRACTICAL BASIS OF HUMAN RESOURCES TRAINING AT ENTERPRISES 2.1. THEORETICAL BASIS OF HUMAN RESOURCES 2.2.1. Basic concepts Human resources can be understood as the employees working for the employers/ owners of industrial production materials, factories, enterprises and they themselves do not own means of production. Human is the basic workforce that directly or indirectly participates in the production process, reproduces materials, including direct and indirect human resources . Human resources training in manuafacturing is to train the workforce to directly create products in the enterprise, so the human resources training is to provide thelaborers with knowledge and skills to help them to increase productivity at work. Human resources training in manuafacturing may include training of technology; training skills and techniques in manipulation; training work steps and quality management processes. In this thesis, the author studies human resources directly operating the machine and participating in the production of printing products, embroideries, PE tarpaulins and technology equipment, electronics, etc. The thesis does not study human resources training in manuafacturing for those who work to maintain and clean equipment in the workshop, etc. At the same time the author uses the viewpoint of human resources training in manuafacturing as knowledges, skills and attitudes for each employees to complete their jobs with high outcomes , and at the same time adapt to the requirements of production activities at the enterprises. 2.1.2. Role of human resources training in manuafacturing *To the enterprises: - To help enterprises attract potential human resources - To help enterprises compensate for the shortage of manpower - To help enterprises improve existing human resources 12 * For employees: Update new knowledges and skills, successfully apply technological or technical changes. 2.2. Human resources training process in enterprise 2.2.1. Determine objectives and assess training needs Each enterprise needs to have specific goals to improve the quality of human resources trainingin enterprises. One of the basic goals of training is to change Knowledge, Behavior and Attitude towards a positive direction to improve knowledge and adaptions of the learners. 2.2.2. Develop training programs The training program indicate all content that need to be trained, what the learners can achieve after joining the program; outlines the process needed to implement training content, training methods and how to test and assess learning outcomes with specific time schedule 2.2.3. Organize training activities in the enterprises  Implement training courses  Incentive policies in the training process 2.2.4. Evaluate training results and the use of human resources after training Evaluation of the training results of human resources of enterprises means assessing the level of the response to the job requirements on the practical capacity of the workers through training and the ability to develop in the future of human resources training, focusing on to the following levels: - Responding capacity to job requirements in terms of skills; - Knowledges - Labor behavior and attitudes - Ability to develop careers 2.3. Factors affecting human resources training activities in enterprises The thesis studies and evaluates training activities and analyzes the factors affecting the training of human resources , including 2 factors: (1) The factors impacting from the environment outside the enterprise; (2) 13 Factors affecting from within enterprises. The research model of the Thesis is developed on the characteristics, overview of studies, interviews of experts and employees about the factors affecting training activities of human resources of South Korea’s enterprises in Vietnam. Figure 2.1: Research model of factor affecting human resources training activities in the enterprises 2.3.1. External factors affecting the human resources training of the enterprises The external factors create opportunities as well as challenges for businesses. For foreign investment activities in enterprises, the main factors including globalization trends and the Industry 4.0; mechanisms and policies of the Government on human resources training; sector characteristics and labor market, etc. 2.3.2. Internal factors affecting the human resources training in manuafacturing of the enterprises 2.3.2.1. Input of human resources 2.3.2.2. The learning culture of the enterprise 2.3.2.3. The learning capacity of employees External environmental factors globaliz ation trend and Industry 4.0 Training program Learning capacity Human resource inputs Learning culture Remuneration policies M ec ha nis m an d po lic ies of the Go v Internal environment factors Sector characteristics and labor market 14 2.3.2.4. Remuneration policy of the enterprise 2.3.2.5. Training program for employees at the enterprise 2.4. Practical situation of human resources training in manuafacturing of foreign enterprises in Vietnam 2.4.1. Toyota Vietnam 2.4.2. Unilever Vietnam 2.4.3. Honda Vietnam 2.4.4. Lessons learnt for enterprises First, implementing an enterprise training model to increase high- quality human resources to meet the requirements of developing production and business activities. Second, enterprises need to focus on investment to develop education and training for new and old employees, and must really consider training as the most important factor. Third, human resources training following the actual needs of businesses. Fourth, pay attention to create good conditions for potential human resources. Fifth, build a relationship between training schools and businesses. Sixth, human resources training must be based on inheriting and promoting traditional cultural values combined with receiving human cultures. Chapter 3: ACTUAL SITUATION OF HUMAN RESOURCES TRAINING IN MANUAFACTURING AT SOUTH KOREA’S ENTERPRISES IN VIETNAM 3.1. General characteristics of South Korea‘s enterprise in Vietnam South Korea is the leading partner of Vietnam, first ranking in FDI and second ranking in ODA, the following is Japan, Singapore, etc. Accumulative data by February 2019, the total registered investment capital of Korea reached USD 63.7 billion, accounting for 18.5% of total registered 15 FDI capital in Vietnam. In 2018, South Korea had 953 projects granted investment certificates with a total registered investment capital of USD 6.8 billion, accounting for 22.3% of the total registered FDI capital in Vietnam. Korean FDI enterprises employ about 70,000 people and contribute over 25% of the total export amount of Vietnam. In the field of manufacturing industry, the involvement of major economic corporations as Samsung, LG (manufacturing), Kumho, Doosan, Hyundai, GS, Posco (heavy industry and shipbuilding ) has significantly impacted on the development of industries in Vietnam; especially gas, metallurgy, chemicals, electricity-electronics, plastics, etc. 3.2. Some South Korea‘s Companies in Vietnam 3.2.1. Samsung Electronics Vietnam Company Limited Samsung is a leader in investment in Vietnam market. In 2012, about two years after Samsung opened its first mobile device manufacturing factory in Bac Ninh, Vietnam started exporting more than it imported for the first time for 20 years. After the company opening the second smartphone production factory in Thai Nguyen in 2013, 17% of Vietnam's total exports sourced from Samsung. Samsung employed about 173,500 workers in Vietnam, most of them work at two smartphone factories in Bac Ninh and Thai Nguyen provinces. 3.2.2. LG Electronics Vietnam LG Electronics is a leader in technology, founded in Korea in 1958, has a global scale with a presence in over 119 countries with more than 86,000 employees. LG Electronics was officially present in Vietnam in 1995, the head quarter based in Hanoi. The factory in Hai Phong opened in Mar 2015 on an area of 800,000 m2 and a total investment of up to USD 1.5 billion, marking the 20-year development of LG in the Vietnamese market with over 10,000 employees 3.2.3. Te wang Vina Company Te wang Vina company was established in 2003 with 100% foreign investment. The company currently has 350 workers. Main products 16 produced and consumed: Specializing in the production of PE tarpaulins for domestic and export markets. 3.2.4. Vina Kookje Company VINA KOOK JE CO., LTD (VINA KOOK JE CO., LTD.) funded 100% of charter capital by KOOK JE (Korea), in cash and equipment. Number of staff - workers at the computerized embroidery factory and the grid printing factory: 200 people. The main business areas of the Company: processing products are computerized embroidery and grid printing of 100% exported garment products. 3.2.5. Haesung Company Haesung Vina Co., Ltd, abbreviated name is HAESUNG VINA Co., Ltd has its office in Lot CN7, Khai Quang Industrial Park, Vinh Yen City, Vinh Phuc province. Haesung Optics Company is one of the enterprises with strengths in the field of research and manufacture of optical and optoelectronic equipment. Currently, there are over 4,250 experts and employees working for the Company. 3.3. Actual situation of human resources training in manuafacturing at South Korea’s enterprises in Vietnam 3.3.1. Training needs and objectives At Samsung, people are always considered the most important factor. Therefore, Samsung always pays special attention to training programs, developing human resources with the goal that each Samsung employee is not only good at expertise, but also has a broad cultural and social knowledge. LGEVH often organize training needs assessments in a formal and methodical manner. For TE Vina company and Vina Kookje company, training needs are determined by the company's managers, meeting the company's production and business objectives in each stage. 3.3.2. Developing training program For large-scale companies such as Samsung, LGEVH, the training and development of human resources for production in South Korea’s enterprises in Vietnam is based on basic tasks including: assessment of 17 training needs designing training programs, implementing training programs and evaluating the outcomes of training. At Samsung, they designed programs to train employees in essential skills for the job, training courses to improve skills, improve the professional qualifications of employees are strongly developed. However, Heasung Vina is also a large-scale company or a small Korean company in Vietnam such as Teawang Vina, Vina Kookje, that do not have periodic or annual training plans. After each recruitment phase, workers will be trained in integration with businesses and guided apprenticeship in the workshop. Training content at LG is always designed and communicated by lecturers in accordance with the actual work requirements; Training content of Vina Kookje company: Organization and operation charter; Labor regulations of the company; Company processes, regulations, work documentation, and other documents. 3.3.3. Organizing training activities Samsung Company make agreements with associated universities and colleges so that its employees can study for free at night time in the factory. They can learn English and Korean languages, as well as accounting and electronics engineering. For HEASUNG, the Company periodically inspects equipment that strictly required to follow regulations on occupational safety and health and fire prevention, and rescue for all employees of the company, establishing a network of fire and explosion prevention and safety personnel arranged throughout the workshop. The company also signed a cooperation agreement with the Hanoi University of Science and Technology to establish a research and development center for optoelectronics. 3.3.4. Assessing the results and use of laborers after training Throughout the survey of 282 employees in 5 companies on the training results following Kichpatrick’s 4-level model, the above results indicated that the training program of human resources of South Korea’s enterprises in Vietnam is develop and to achieve the employee's desires with a 18 satisfaction level of 83% (equivalent to 4.16 points). The ability to absorb knowledge, skills and improve employee's attitude is also quite high (81%, equivalent to 4.06 points). The level of practicality and ability to apply trained contents to a specific job is 79% (3.97 points) and the increase in labor output as assessed by managers and employees is 76%. (3.8 points). This is an encouraging result and also confirms that human resources training activities are effective in enterprises. 3.4. Analyzing factors affecting human resources training activities in manuafacturing at South Korea’s enterprises in Vietnam Quantitative analysis and Exploratory Factor Analysis (EFA) scale of factors affecting the training human resources in manuafacturing at South Korea’s enterprises in Vietnam include: P - Training programs, C - Learning Culture of enterprises, A - Self-study capacity of employees and B - Remuneration policy. The results indicated that all the variables met the requirements and the model was consistent with the study. The regression equation has the form: E = -0.196 + 0.375P + 0.282 C + 0.233A + 0.157 B 3.5. General assessment of human resources training actives in manuafacturing of South Korea’s enterprises in Vietnam 3.5.1. Advantages - Training policies and procedures are relatively clear - Enterprises always create all favorable conditions for employees to improve their own education and skills. - The majority of Korean businesses developed specific training procedures. The training program is always carefully designed and suitable for each course and participants. - The enterprise constantly innovates human resources training in manuafacturing, applying various training from on-the-job training to sending personnel for outside enterprise training has achieved good results. - The contents and training methods in enterprises are relatively appropriate, closely with the actual situation for manufacturing. 19 3.5.2. Disadvantages - The enterprises have not established a long-term training plan; Training methods are p