master of business adminstration thesis

TABLE OF CONTENTSACKNOWLEDGEMENTS...2 TABLE OF CONTENTS...3 LIST OF ABBREVIATIONS:...5 LIST OF FIGURES...6 LIST OF TABLES...6 LIST OF APPENDICES...7 CHAPTER I: INTRODUCTION...8 1.1 Neces

MINISTRY OF EDUCATION AND TRAINING

NATIONAL ECONOMICS UNIVERSITY

NEU BUSINESS CHOOL

NGUYEN HONG NHUNG

DEVELOPING AND TRAINING

HUMAN RESOURCE IN PVFC

MASTER OF BUSINESS ADMINSTRATION THESIS

SUPERVISOR: TRAN THI HONG VIET Ph.D

Firstly, I want to express my deep gratitude to Ms Tran Thi Hong Viet, Ph.Dfor her supports and advices to help me complete this thesis She has been anoutstanding advisor, always very flexible and willing to let her students work

at their own pace, while making sure that things are going all right I alwaysfound her highly accessible and I thank her for the weekly meeting that kept

me motivated and suggested idea to complete my thesis

Secondly, without the kind support of board of directors, managers andemployees of Petro Vietnam finance company (PVFC) for their participation

in my survey, my thesis never becomes such a real case so I would like toexpress my great acknowledge to them

Moreover, I thank Ms Duong for reminding me to submit thesis on time andothers supports in the process of writing thesis

Last but not least, I also want to express my thanks to my family who gave

me enthusiastic support and shared house work with me during the last twoyears while I was doing my master study

Thank you very much Hanoi, May 2008 Nguyen Hong Nhung

TABLE OF CONTENTS

ACKNOWLEDGEMENTS 2

TABLE OF CONTENTS 3

LIST OF ABBREVIATIONS: 5

LIST OF FIGURES 6

LIST OF TABLES 6

LIST OF APPENDICES 7

CHAPTER I: INTRODUCTION 8

1.1 Necessity of research 8

1.2 Research objectives 9

1.3 Research question 10

1.4 Research methodology 10

1.5 Scope of research 12

1.6 Limitation 12

1.7 Structure of thesis 12

CHARTER II: THEORETICAL BACKGROUND 14

2.1 Overviews of human resource and human resource development 14

2.2 Nesecity of development and training human resource in business 17

2.3 Content of training and development human resource in business 18

2.4 Method of training and development human resource in business 19

2.5 Process of HR training and development in business 21

CHAPTER III: HUMAN RESOURCES DEVELOPMENT AND TRAINING ACTIVITY IN PVFC 25

3.1 An Overview of PVFC 25

3.2 Current situation of human resource development and training in PVFC 32

3.2.1 Findings on current situation of HR at PVFC 32

3.2.2 Findings on current situations of HR training and development at PVFC 44

3.2.3 The problems and reason of the problems 56

CHAPTER IV: RECOMMENDATIONS FOR IMPROVING HR DEVELOPMENT AND TRAINING ACTIVITY AT PVFC 58

4.1 PVFC’S BUSINESS STRATEGY 58

4.2 Requirement for developing HR and Training needs in PVFC: 64

4.3 Recommendations for improving development and training activity at PVFC: 65

4.3.2 Improving financial capacity for training and development activity 66

4.3.3 Increasing quality of training 67

4.4 CONCLUSION 70

Experience at PVFC: 76

LIST OF ABBREVIATIONS:

 HRM : HUMAN RESOURCE MANAGEMENT

 PVFC : PETRO VIETNAM FINANCE COMAPANY

 WTO : WORLD TRADE ORGANIZATION

 MOF : MINISTRY OF FINANCE

 MPI : MINISTRY OF PLANNING AND INVESTMENT

LIST OF FIGURES

Page

Figure 1-1: Number and percent of people evaluate the suistability between current job with own

ability 36

Figure 1-2: Number and percent of people evaluate the suistability vailable knowledge between with current job 37

Figure 1-3: Number and percent of people evaluate the satisfaction of their experience and skills with their current job 38

Figure 1-4: Number and percent of people evaluation about the suistability between PVFC’ HR ability with their current job 39

Figure 1-5: Number and percent of people rating about PVFC’ HR ualification 40

Figure 1-6: Number and percent of people rating about skills and nowledge of PVFC’s HR 41

Figure 1-7: Number and percent of people - the training contents which attended suitable with PVFC’s business objective sand necessary for job 51

Figure 1-8: Number and percent of people - the training programs which have attended good to improve work performance 52

Figure 1-9: Number and percent of people - put in order the following items which make to improve development and training activity of PVFC 53

LIST OF TABLES Table 1.1: PVFC’s business results from 2002 to 2006 31

Table 1.2: Scale and structure of PVFC HR in terms of education/ unit (person) 33

Table 1.3: Scale and structure of PVFC HR in term of age 33

Table 1.4: Responding percentages of PVFC’ staf 35

Table 1.5: Responding percentages of PVFC’ staf 38

Table 1.6: Responding percentages on policies and their impact to quality of work performance 43

Table 1.7: Number of staf participated in training courses over the years 48

Table 1.8: Staf point of views on content of training courses 49

Table 1.9: The people participate in the training courses in VN and foreign country 50

Table 1.10: The cost of training activity in VN and foreign country 50

Table 1.11: The detail of training activity in foreign country in 2007 in PVFC 54

Table 1.12: The investment of training HR in PVFC 55

LIST OF APPENDICES Appendix 1: Survey Questionnaire (for staff)

Appendix 2: In depth interview questions (for managers)

Appendix 3: The organizational chart of PVFC

CHAPTER I: INTRODUCTION1.1 Necessity of research

Human resource is one of the most important resources in every organizationbecause of its human aspect Having a good human resource creates bigadvantages for company to get success on the market Management ofHuman resource is both art and science A company which managers peoplewell will be possible to get a high quality human resource Of all contents ofhuman resource management, development and training of HR is one of themost necessary and important ones for an organization to improve quality ofits HR

Petro Vietnam Finance Company is a state owned company, a non-bankingcredit institution and a wholly owned subsidiary of Petro Vietnam, wasestablished according to the Decision No 04/2000/QD-VPCP dated 30thMarch, 2000 by Director of Government’s Office PVFC is now operatingwith a head office in Hanoi and 8 branches in Vung tau, Da nang, Hai phong,Can tho, Nam dinh, Sai gon, Thang long, Hanoi, with a total of 1200employees as a date Its objective is to become a top-ranking financialinstitution in Vietnam By 2015, PVFC will have to become the mostimportant Finance Holdings and the backbone of Petro Vietnam and to meetthe maximize demand of Petro Vietnam’s projects PVFC’s strategythroughout the development process relies on its fame, financial capability,and financial demand of Petro Vietnam, making PVFC become a leadingfinancial group, in both capital scale and banking technology Which fulfillthe requirement to cooperate and integrate with other financial institutions in

investment management and operating in financial market, capital market ofPetro Vietnam.

After joining the World Trade Organization of VN in the 1st 2007, there aremany new banks and financial institutions established in Viet Nam In thesituation new, PVFC has to face with the following difficulties:

 Firstly, intense competition from domestic credit and financialorganizations who are increasingly improving their organizational scaleand structure as well as from oversea financial corporations

 Secondly, threats of hard competition after Vietnam became a member

of WTO Those are the competition from foreign competitors who havestrong financed capacity, advanced technology and especially businessexperiences

 Thirdly, there is a shortage of PVFC’ resources to cope with thedevelopment Especially, human resource _ key success factor arerepresenting the problems that reduce the development The companyhas no long term human resource development plan Staff of PVFC areeducated but lack of experience Training plan are very poor Trainingcontent is not updated

For the above reasons, development an training of HR is always the urgentand the first priority of PVFC

1.2 Research objectives

This thesis aims to get the following objectives:

 To systematize theory relating on development and training of HR

 To identify the requirements of human resource to keep up with thefuture situation and business objectives of PVFC.

 To evaluate quality of work performance to determine actual situationabout skills, knowledge and attitudes of the staff of PVFC

 To define the specific gaps between current situation and futurerequirement as well as find out problems of human resourcedevelopment and training of PVFC

 To propose some appropriate recommendation for improving trainingactivities and developing human resource in PVFC

1.3 Research question

 What are the requirements for developing HR in PVFC to meet itsfuture development?

 What is current situation of quality and performance of HR in PVFC ?

 What problems are PVFC facing in development and training of its HRthat affect to quality and performance of HR ?

 What should be done to improve quality and performance of HR interms of HR development and training ?

1.4 Research methodology

This research has used both primary and secondary data

The secondary data has been collected through PVFC business report, reportsand studies done by the ministry of finance, ministry of planning andinvestment, articles in vietnamese and foreign newspapers and magazines,textbook and internet The primary data were collected by surveys and in

depth interviews The quantitative surveys were completed with 150questionnaires sending to PVFC’ staff in Hanoi, Ho Chi Minh, Can Tho,Vung Tau, Hai Phong, Nam Dinh and Thanh Hoa province, 100 of whichwere return The in depth interview were also planned to enrich the datacollected and bring more explanations to the results concluded through thesurveys.

The questionnaires are designed into 2 main parts: Part 1 aims to collectgeneral information about the position, job title, knowledge and practicalexperience of the respondents; Parts 2 aims to get the respondents’ opinions

on PVFC’ current situation of quality and performance of HR and their needfor developing and training , and their suggestions for improvements; Thequestionnaire was originally made in Vietnamese and later on was translatedinto English as attachment to this thesis

With the aim to support for basic data and information collected byquantitative methods above,16 in depth interviews were made to PVFC’CEO and managers of PVFC Beside getting information about currentsituation of HR and HR developing and training at PVFC, the questions formanager also aim to know the requirements and PVFC’ s HR developingstrategy to meet its future business development Based on gap betweencurrent situation and future requirements, the appropriate suggestions will beproposed to improve HR developing and training activity The author of thisthesis is a member of PVFC who did not face any barriers in collecting thedata and have succeeded in getting valuable information for the research Analyzing data: Based on the information collecting from interviews andsurvey, the thesis used quantitative and qualitative methods to analyse andprocess the information The excel program has been used

1.5 Scope of research

Content of the thesis focuses mainly on development and training of HR.However, to have a deep understanding the development of HR, it isnecessary to identify and analyse other factors that impact to the process such

as HR planning, recruitment, motivation and evaluation of HR The researchtakes place within the head office of PVFC and 8 braches in Da Nang, Ho ChiMinh, Vung Tau, Can Tho, Nam Dinh, Hai Phong, Thang Long and Sai Gon.The data are collected for the time period of 2002-2006

1.6 Limitation

A more appropriate survey requires to be done with larger sample size, in asmuch as possible PVFC over the country With this reason, the PVFC’ staffare studied to get data for evaluation and taking sample Accuracy ofinformation is also constraint for this research because of change inmanagement board of PVFC as well as intention of interviewees.One morething can be considered, as limitation has been the assessment to the previousstudy so far The policy restriction has prevented the researcher to approachsome documents that will help to define more correctly actual conditions and

to give more comments in this study

Chapter 3: Human resource development and training activity in PetroVietnam Finance Company.

Chapter 4: Recommendation for improving HR development and trainingactivity at PVFC

CHARTER II: THEORETICAL BACKGROUND

2.1 Overviews of human resource and human resource development

Human resource is the perceived need, on the part of a member of largeorganization, to improve their competitive positions both nationally aninternationally Today, the HR plays a vital role in the organization’s strategicplanning process This trend is increasing pressure from the globalmarketplace and from stockholders, both of which push for ever-higher levels

of productivity and profitability This pressure is compounded by increasedrecruitment and benefit costs, an aging workforce, an increasing number ofhealth and safety regulations, and an increasingly litigious society

Human resource management can be defined as that part of managementconcerned with: All the decisions, strategies, factors, principles, operations,practices, functions, activities and methods related to the management ofpeople as employees in any type of organization; All the dimensions related topeople in their employment relationships and all the dynamics that flow from

it Human resource management is the effective management of people atwork HRM examines what can or should be done to make working peoplemore productive and satisfied HRM is specifically charged with programsconcerned with people, the employees Human resource management is thefunction performed in organizational and individual goals Whether a humanresource management function or department exists in a firm, every managermust be concerned with people Human resource management is a necessaryfunction Effectively performed, it can make the difference betweensuccessful and unsuccessful organization HRM activities are now tied to the

bottom line, where it is considered a “profit center” rather than a “costcenter.”

The HRM function was merely a tagalong unit in many organizations untilupper management recognized the critical role that people play in meetingorganizational objectives Today, the importance of recruiting, selection,training, developing, rewarding, compensating, and motivating is recognized

by managers in every unit and functional area of an organization EffectiveHRM add value to the delivery of goods and services and to the quality ofwork life for employees, by helping to ensure continuous organizationalsuccess in transformative environments

Effective HRM helps stimulate development of HR Development of HRrefers to the development acquisition of knowledge, skills and behaviors thatimprove employees ability to meet changes in job requirements and internal

or external customer demands Human resource development combinesadministration with the management of resources Integration is one of thekey features of human resource management The first role played by humanresource development is being a support system It can provide guidance andsupervision for people management in the workplace The second role is that

of human resource This means that it will include necessary tasks such astraining, development, recruitment, motivation, evaluation and planning Thenext role is strategic management, playing an important part within thecorporate strategy Strategic human resource management is a key part of thedecision making cycle

When discussing the subject of human resources, there are many terms thatlook similar, but have different meanings One example of this is humanresource development and personnel management It would be easy that two

terms have the same meaning, but this is not the case The differencesbetween human resource management and personnel management are simpleenough Human resource development is a proactive approach By planningfor any problems, these problems can be avoided Personnel management, onthe other hand, is a reactive approach that only deals with problems as theyarise Personnel management considerations are fully integrated with strategicdecision making in the human resource development model.

Human resource development is more concerned with training anddevelopment, while personnel management is a form of support system

Features of human resource development: HR development has the followingkey features that classify it from personal management:

 Human resource development is seen as proactive and long term

 Human resource development facilitates employee commitment

 Human resource development is seen as essentially unitary, involving

no apparent conflict of interest between employers and employees

 Human resource development operates most effectively in organic,fluid organizational structures

 Human resource development is essentially focused on maximizing thecontribution of human resources to organizational effectiveness

The role of human resource development within the new businessenvironment as follow

 To integrate the aspects of the new business environment with theexisting policies and strategies of the organization

 Human resource management must nurture and develop a companyintellectual capital and recruitment , retain, develop and manage thehuman assets for the company to have a competitive advantages.

2.2 Nesecity of development and training human resource in business

Developing and training HR are processes that attempt to provide anemployee with information, skills, and an understanding of the organizationand its goals Developing and training are designed to help a person continue

to make positive contributions in the form of good performance Developingand training HR always require top ranking, decide to the success ofbusinesses and develop human potentiality It’s important role as follow:

 Developing and training HR help improve skills, knowledge andbehaviors of employees make them be ready to do new tasks andrespond quickly with changing of environment

 It provide companies with new labor force to fullfil the empty spaces

of business, to satisfy the HR requirement of business

 Developing and training HR builds stable and dynamic businessenvironment even in case the company lacks of key persons to dobusiness

 Developing and training HR help reduce/ monitoring and controllingcost, increase quality of work performance and reduce accidentbecause employees are trained well

 The quality of HR in almost Vietnamese business today is limited, that

is not enough to do their job as requirement of new development To

repair this, it is very necessary to improve quality of development andtraining HR in business.

2.3 Content of training and development human resource in business

Training and development HR have 3 main parts: performance appraisal,training and development Performance appraisal is a process by which asuperior valuates and judges the work performance of a subordinate.Performance appraisal systems include the processes and procedures involved

in implementing, managing, and communicating the events involved inperformance appraisal The purpose of performance appraisal: to improveemployee performance in the present job, to prepare employees for futureopportunities that may arise in the organization, then to provide a record ofemployee performance that can be used as a basic for future managementdecisions

Performance appraisal data are valuable for use in every human resourcefunctional area such as Human resource planning: a well designed appraisalsystem provides a profile of the organization human resource strengths andweaknesses to support the promotion process; Recruitment and selection:Provide for evaluation applicants responds obtained through behaviordescription interview; Training and development: Point out an employee’sspecific needs The task of determining training and development needs;Career planning and development: may be viewed from either an individual

or an organization viewpoint Managers may use such information to counselsubordinates and assist them in developing and implementing their careerplans

Training is a form of education to which the following learning principles can

+ Trainee must be motivated to learn.

+ Trainee must be able to learn

+ Learning must be reinforced

+ Training must provide for practical of the material

+ Material presented must be meaningful

+ Material taught must transfer to the job

Management development is the process by which managers gain theexperience, skills, and attitudes to become or remain successful leaders intheir organization

Training is one of the important activities of developing the human resourcethat the company should be aware, but we can not talk about HR developmentwithout the presence of other important factors that the company should takeinto account such as HR planning, recruitment, motivation and HR appraisal.2.4 Method of training and development human resource in business

After needs and objectives have been determined and trainees and trainershave been selected, the program is run This phase includes selection ofmethods to be used and the actual training and development method Thereare two main methods of training and development human resource:

The first is on the job training On the job training is common method oftraining It is used by many company It is an economic way in training Staffslearn through observing their manager performing the job and try to imitatetheir behavior On the job training can be useful for training newly employeeupgraping experienced employees skill when new technology is introduced,

cross training employee with a department On the job training (for managers,these include coaching and counseling, transitory experiences and transfersand rotation)

Advantages of the first method on the job training+ Useful for training newly employee upgraping experienced employees skillwhen new technology is introduced, cross training employee with adepartment

+ Less costly

+ Easy to organize and train many people at the same time

Disadvantages of the first method on the job training

+ The teacher not have experience about training

+ The teacher teach not enthusiasm

The second method is off the job training, Off the job training is trainingmethodology based on available training course of outdoor organization Itmeans that the company sends their employee to attend seminars, trainingcourse in university or training center This method is valuated tool to helpstaff to exchange experience, upgrade their knowledge It spends a lot ofmoney when company send employee to oversea for training Off the jobtraining has methods such as ( discussion, programmed instruction andcomputer assited technologies including virtual reality multimedia basedtraining, distance learning and video training Internet is developing very fast

so that distance and internet based training often are used Distance learningmethods include traditional paper as well as internet based classes

Advantages of the first method off the job training:

+ attach every staff enjoy, express different point of views, do the decision+ help staff to analyse, do problems practical

Disadvantages of the first method off the job training

+ Costly very high

Most organizations use coaching and counseling as either a formal or informal management development

2.5 Process of HR training and development in business

The process of HR training and development consists of the following steps:

• Training needs assessment

• Training design

• Training implementation

• Training evaluation

Training needs assessment:

Training needs assessment analyze the organization’ needs; the knowledge,skill, and ability needed to perform the job; and the person’ needs Theorganization needs assessment requires an examination of the long or shortterm objectives of the firm Training needs assessment shall be conducted forall staff as part of the annual performance development review New staffmay need to have their training needs assessed more regularly Training needsassessment for all staff is also conducted to indentify staff need on capacitybuilding and to give staff on opportunity to have their full participation in the

discussion on the need All employees are encouraged to discuss the trainingfrom which they feel they could most benefit Wherever possible, staff will beoffered training relevant to their positions Training is an opportunity not aright and therefore it is not possible to offer staff training in skills which arenot directly linked to there positions.

Training implementation:

Location, time and other logistic arrangement for training are informed tostaff timely The teachers prepare not only training contents/ material but alsoother related knowledge/ suitable method/ skills The subjects of training alsoare identified suitable to the content of training Training conduction iscarried out right after every preparation steps are ready However, it can not

be realistic occasionally because almost staff is requested to priority otherurgent work Besides, no full participation is sometimes happened inorganization Staff can not take part fully in training course because they arereally busy at work so they have to take into account any time for work if thetraining course is not compulsory Thus it wastes of cost for conducting the

training and also impacts to the training effectiveness Training conduction isdifficult to plan and implement effectively.

Training evaluation:

In order to build standards for training evaluation, the organization

need to analyse job analysis/description Job analysis is information about a

position to be filled that helps to identify that help to identify the major jobrequirements and links them to skills, education, training… to successperform the job The purpose of the job analysis is to identify the experience,education, training and other qualifying factors by candidates who have the

potential to be the best of the job to be filled It includes as follows

+ What duties does an employee carry out ?

+ Where is duty done ?

+ How does that employee do that duty ?

+Why must that duty be carried out ?

+ What standards of level are necessary to carry out that duty ?

How to write a job analysis and job description? Begin byunderstanding the requirement of the job being filled What kind ofexperience and education are needed? Do a job analysis covering thefollowing areas

+ How the job will be done ( the methods and equipment to be used)+ The reason the job exists ( an explanation of job goals and how theyrelate to other positions in the company)

+ The qualification ( training, knowledge, skills)

Training evaluation are two procedures: Establishing measures of success(criteria) and using evaluation research designs to determine what changeshave occurred during the training and transfer process.The manager and staffmember should clearly identify the objectives of the proposed training of thestaff member After six months, the manager must carry out a review with thestaff member to see to what extent the training has impact on the staffmember performance We have not yet done well this stage because staffoften are very busy at work after coming back from training course.

This survey is designed in order to fund out about the policy, the practicalmanagement of human resource, training and development human resource inenterprise and the evaluate current human resource training and development.Based on the survey result, the human resource department will proposestrategies an specific actions to improve polices and administrative methodswhich can help reach strategic target in near future Staffs are invited to fill inthe survey and send back to the HR department

CHAPTER III: HUMAN RESOURCES DEVELOPMENT AND TRAINING

ACTIVITY IN PVFC3.1 An Overview of PVFC

The history of PVFC

Petro Vietnam Finance Company - New confidence of development

PVFC officially launched its operation on 1st December, 2000 according to aBusiness Certificate No 12/GP-NHNN dated 25th October, 2000 by StateBank of Vietnam (SBV) along with Decision No 456/2000/QD-NHNN dated

25th October, 2000 by the Governor of The State Bank of Vietnam andBusiness Registration License No 113108 dated 23rd August, 2000 by HanoiAuthority for Planning and Investment

Misson statement and company objective:

Founded in 2000, Petro Vietnam Finance Company, a wholly ownedsubsidiary by Petro Vietnam, is a non-banking credit institution Itsfoundation is one step toward “The steady development of Vietnam Oil andGas Corporation” marking a new vision to the future of Vietnam petroleumenergy in line with the growth of the country in the 21 st century

Since the beginning, PVFC has made great successes in integrating into theOil and Gas community and joining the networks of domestic andinternational financial institutions The tight and faithful co-operation withthese institutions, domestic and foreign investors in order to maintain reliablefinancial sources for Vietnam Oil and Gas projects - The primary key factor

to its success “Growth vision – Solid commitment - Finance success” is

PVFC’s working slogan This idea revealed in its strategic objectives:fulfilling fund demands for developing investments and making the mosteffective use of every financial resource.

Business activities:

Based on Business Registration License No 0106000273 dated 30th October,

2006 by Hanoi Authority for Planning and Investment, the major businessactivities of the company includes:

 Fund Mobilization:

- Long term deposits;

- Issuing Promissory Notes, Bonds, Certificate of Deposits and otherValuable Notes to mobilize capital from domestic and internationaleconomic entities and individuals under the current laws;

- Borrowing from domestic and international financial institutions andcredit institutions;

- Receiving Trust Fund from Government, domestic and internationalinstitutions and individuals;

- Credit service to institutions and individuals through discounting and/ormortgaging bonds, commercial papers and other valuable notes;

- Rediscounting and/or remortgaging bonds, commercial papers andother valuable notes to credit institutions;

 Guarantee:

To be ensured by PVFC’s prestige and financial capability The assurance iscompliance with Article 58, Article 59 and Article 60 of Credit InstitutionLaw 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 withPVFC’s Head office, and other banks within the whole country.Opening deposit accounts at banks outside of Vietnam need to beapproved by SBV;

- Providing credit service, PVFC has to open an account at SBV with anaverage balance remaining is not less than an amount stipulated bySBV;

 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:

a) Buy foreign currencies from Petro Vietnam, subsidiaries of Petro

Vietnam, and their clients who have credit relationshipsconcerned with their revenue from production, service andtrading;

b) Sell foreign currencies to objects as mentioned in point (a) to

serve their demand on production, trading and services;

c) Buy foreign currencies from credit institutions who have the

legal right in dealing foreign currencies in Vietnam to ensuresufficient foreign currency sources to demand on production,trading, and services of objects in point (a) as well as demand onbanking of PVFC;

d) Sell foreign currencies to credit institutions who have the legal

right in dealing foreign currencies in Vietnam to ensuresufficient VND currency sources to demand on production,trading, and services of objects in point (a) as well as demand onbanking of PVFC;

e) 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 provideconsultancy to the Director General in his planning and marking, humanresource, finance and accounting, internal audit and control, investment andcredit 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 assistthe 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

Owners’ Equity (%) 4.86 5.28 2.61 8.03 11.13Earning before tax/

Total Revenue (%) 7.88 4.43 3.86 6.73 12.34Net 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 bethe 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% peryear

Strong growth rate of investment in the period 2002-2006 increase assetsproportion generated from investments to 30% of total assets and revenuefrom 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% peryear

Proportion of deposits at credit institutions and loans will be reduced.Average proportion of revenue from interest of loans in this period willaccount 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 totalrevenue

The number of new branches opened during the year reaches a record,bringing the total number of branches and such branches to nearly in 9provinces and cities PVFC has strongly committed to maintain its leadingposition in finance technology by successfully upgrading it core financesystem

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)

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 3.73Total 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%) whilethis is 81 in 2007 (7.75%) In 2004, 252 people (81.8%) graduated fromuniversity and in 2007,855 (81.8%) graduated from university Totalworkforce if increasing from 308 in 2004 to 407 to 1044 in 2006 and morethan double in 2007 The table 1.2 shows an increasing of the PVFC’sworkforce over the year

Table 1.3: Scale and structure of PVFC HR in term of age

Age The number of people Unit (person %)

<35 107 181 879 51.19% 48.66% 84.19% 35-45 101 152 162 4.78% 45.37% 15.51%

(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 Theproportion 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, theproportion 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 Thereasons for that trend are scale of PVFC is increased with more branchesopened, the services are diversified, the company recruited more young andeducated staff to cope with new environment…

There is a very fast growing in scale of workforce from 2004 to 2007 (morethan 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 trainand 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:%

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 withtheir current job, there are 62 respondents said good; 4 respondents answervery good, 27 respondents answer rather good, only 6 respondents answernormal

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, 49respondents think that their knowledge suit well with their current job (rate ofgood) 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 toimplement their current job, 47 respondents answer good, 12 respondentsanswer very good, 28 respondents answer rather good, only 12 respondentsanswer normal

From the above surveying results, we can see that in general, staff of PVFCthink their ability, knowledge, skills and experiences are good enough.However, about 9-10% of them do not satisfy with their capacity That meansthis 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 theiropinions about PVFC’s HR quality The following table shows surveyingresults in detail:

Table 1.5: Responding percentages of PVFC’ staff

(staff evaluate PVFC’s HR)

Unit:%

Number Items Verygood Good Rathergood Normal

01 Suistability between PVFC’s HR abilitywith 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

When mention about the suistability between PVFC’ HR ability with theircurrent job, 36 respondents answer good, 2 respondents answer very good, 52respondents 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 , 44respondents answer good, 3 respondents answer very good, 50 respondentsanswer rather good, only 2 respondents answer normal