Talent Management In High-Tech Industry – A Case Study At eDN Semi- Conductor Company In Vietnam

Talent Management In High-Tech Industry – A Case Study At eDN Semi- Conductor Company In Vietnam

Talent Management In High-Tech Industry – A Case Study At eDN Semi-

Conductor Company In Vietnam

Dr Pi-Yun Chen

Dr Nguyen Quoc Tuan

Pham Dinh Cuong

11752302SD-MBA1

2012 Thesis Proposal

1.Introduction (1/11)

• Research Background (1/7)

• Semi-conductor Industry was recognized around 1830s However the industry has just been in fast development since 1960s when Jack Kilby successfully put several devices fabricated in one Silicon subtract

• It is now widely recognized as a key driver for economic growth, more and more governments have supported financial and encouraged it growing in their country

•

According to Gartner’s report, Worldwide Semiconductor Revenue Reached $307 Billion in

2011

1.Introduction (2/11)

• Research Background (2/7)

• 65% executives and managers report that they’ve insufficient top talent in the ranks of their top 300 leaders, whereas only 10% say that their companies can retain most of their high performers (Michaels, Handfield-Jones, & Axelrod, 2001; Ready & Conger, 2007)

• There are very few individuals within each industry who are considered top human capital (Allen, Bryant, & Vardaman, 2010) Top performers generate a great deal of revenues, profit, and overall success for their company (O’Boyle & Aguinis, 2012)

• The company will be lead to the talent war with other companies

to (1) retain top talent, (2) hire away top talent from other companies (Fishman, 1998)

1.Introduction (3/11)

• Research Background (3/7)

• In Vietnam, since 2003, numerous Laws and Decisions related to High-Tech industry have been issued, it shows the effort and target of the government in developing the Industry

in Vietnam and realizing the target to be an industrialized country in 2020

• Following the Laws and Decisions, some small conductor companies had been established and operated by Oversea Vietnamese like Silicon Design Solutions Vietnam, Array Technologies Vietnam And then big companies and design centers have been established

Semi-1.Introduction (4/11)

• Research Background (4/7)

• October 2004, Renesas Electronic, Inc, a Global conductor Company established their design center in Vietnam, called Renesas Design Vietnam Co

Semi-• August 2005, Integrated Circuit Design Research & Education Center (ICDREC) was established with the purposes are (1) to be a training center for Integrated Circuit Design, (2) to have well research works and articles will be known by national and international scientist, (3) transferring technology by carrying out outsourcing contracts with local and foreign business

1.Introduction (5/11)

• Research Background (5/7)

• October 2010 Intel opened a billion-dollar plant in Vietnam, the company's biggest in the world, focusing on testing and assembly expected to create thousands of skilled jobs in high-tech manufacturing and generate significant export revenues for the country

• Beside these big ones, there are such small ones operating

in the industry Most of them are located in Ho Chi Minh City, there are few of them located in Hanoi or Danang City All these companies are either established by Oversea Vietnamese or subsidiary/design centers of a global company

1.Introduction (6/11)

• Research Background (6/7)

• Vietnam Semi-conductor companies

• Play key role for the growth of this young industry in Vietnam

• Operate under the global management with specific specialization

to align with Vietnam’s culture

• Their employees

• Domestic Universities, Oversea study or Experts from other countries.

• Knowledge levels are also different from bachelor to doctor

• They bring in specialized knowledge and cultures to grow the company

• But they also bring in different working styles, expectations and perspectives which lead the firm to be difficult to manage, align and satisfy them to motive their employees.

1.Introduction (7/11)

• Research Background (7/7)

• Navigos Search, a department of Navigos Group, Ltd did a research on employee’s satisfaction in Vietnam by the first quarter of 2011

• With 4,800 employees of 50 companies in Vietnam

• Questions were focusing on key factors to attract and keep excellent employees to stay with the company

• The result shows

• 76% employees choose good management Team as their 1 st preferring

• 75,2% employees choose good working environment as their 2 nd

preferring

• 71.8% employees choose employee education as their 3 rd preferring

• 66,4% employees choose salary and bonus as their 4 th preferring

• It shows that the salary and bonus is not the 1 st factor to attract the employees.

1.Introduction (8/11)

• Research Motive (1/2)

• Vietnam government have been issued numerous Laws and Decisions to encourage and support High-Tech industries Where Law N0.21/2008/QH12 dated 11/13/2008

on High Tech technology defines Information Technology, including Semi-conductor as one of the prioritized domain for development

• More Semi-conductor companies have been established in Vietnam but there are not enough talents in this field so new companies tend to attract and recruit existing employees There will be a talent war between companies to attract, recruit and retain the talent employees Attracting and retaining employees becomes critical

• There are researches on talent management in the world but there is less research on talent management in Vietnam

• A research on talent management is to support the company

to improve their resource management strategy to attract, recruit and retain the employees

• To propose solutions to get closer between the company and the employee

Interview

2.Literature Reviews (1/5)

• Semi-conductor Industry in Vietnam

• The industry has been established around 2000s Around 2000s, Oversea Vietnamese comeback to Vietnam and established small design centers operating on Integrated Circuit designs

• Since 2003 to 2010, Vietnam government issues numerous Laws and Decisions to encourage investments in High-Tech Industry, including Semi-conductor Industry As the result, large Semi-conductor companies in the world have invested to Vietnam by establishing Design Centers In parallel with that, such small companies also established

• Most of the companies are either a subsidiary or design centers

of global companies, or they are established by Oversea Vietnamese

2.Literature Reviews (2/5)

• Employee Recruitment

of Human Resource Management Practice, Recruitment is the process of finding and engaging the people the company needs The recruitment will run through 4 stages:

• Defining requirements

• Planning recruitment campaigns.

• Attracting candidates

• Selecting candidates

2.Literature Reviews (3/5)

• Employee Retention

• It is the strategy of the company to retain its employees According to Michael, A., Armstrong’s Handbook of Human

strategies should be based on an understanding of the factors that affect whether or not the employees leave or stay

2.Literature Reviews (4/5)

• Talent

• While doing literature review, there are several definitions for the talent However in this research, the talent is defined as below based on the CIPD (2007f)

“Talent consists of those individuals who can make a difference to organizational performance, either through their immediate contribution or in a longer term by demonstrating the highest levels of potential”

• The organization leads the talent war with other companies

to attract, recruit and retain talented peoples

in this research, Talent management is defined

as below (Michael, A., Armstrong’s Handbook

of Human Resource Management Practice,

11th, Kogan Page).

“Talent management is the process of identifying, developing, recruiting and deploying talents.”

3.Research Methods (1/11)

• Case study company (1/2)

• Case study company is a Global Semi-Conductor company The company has head-quarter in USA, and design centers around the world: North America, Europe (England, Spain and Romania), Asia (China, Korea, Singapore and Vietnam) The research will focus on their design center in Vietnam

• The company operating can reflect global – local

management, multi-levels of engineers, multi-cultures, working between centers… It reflects the model of most of Global Semi-Conductor companies

• Case Study Company (2/2)

• AMS: Analog-Mixed Signal

• ASIC: Application Specific Integrated Circuit

3.Research Methods (3/11)

• Qualitative method will be used by interviewing employees of a semi-conductor company in Danang city, Vietnam

• In-depth interview with semi-structured questions

3.Research Methods (4/11)

• Interviewed Target: 18 Interviewees representing for all departments and Teams in the company

• 3 Human Resource Managers

• 3 Team Leaders representing 3 Engineering departments inside the company

• 3 Project Leaders representing 3 above departments

• 3 Individual Contributors

•6 Engineers (2 engineers for each Engineering department)

3.Research Methods (5/11)

• Question Design

• Business Research Method, Dr Pi-Yun Chen

• Creswell, J W., & Plano Clark, V Principles

of qualitative research: Designing a qualitative study

3.Research Methods (6/11)

• Theoretical Basis (1/2)

• Herman, Ryan, &Harry suggest using

performance management to win the talent war by 4 factors below:

• Individualized developmental plans

• Challenging, interesting and meaningful work

• Advancement opportunities

• Contingent rewards

3.Research Methods (7/11)

• Theoretical Basis (2/2)

• Most of them are concern on the stability of their works

• They tend and prefer to work for government or large known companies in other fields

• There is not much Semi-conductor companies in Danang City

• They are concern on what will happen to them if the

company is bankrupt or lay them off They’re hard to find another choice in Semi-conductor field

more stability.

keep their employees

3.Research Methods (8/11)

• Question asking about

• Company strategy to attract, recruit and retain employees

•The advantage and disadvantage when recruiting and retaining the employees

• Purpose

• The Managers are responding making and executing the Human Resource’s strategy and policy of the company Asking them to understand current strategy of the company and their disadvantages and advantages when they recruit and retain their employees

• Method

• In-depth face to face interview 1 Managers using structured questions

semi-3.Research Methods (9/11)

• Questions for Team Leaders and Project Leaders

• Question asking about

• How do they feel about 4 factors above

• How do they feel about their Management Team, Salary and Bonus

• The Leaders are responding for Team’s operation and Project’s completion of the company Their ability was proven to be promoted to a Leader They are the talents that the company must retain Asking them to understand their current feeling and their expectation They also help to understand the expectation and feeling from their employees

• In-depth face to face interview 3 Team Leaders and 3 Project Leaders using semi-structure questions

3.Research Methods (10/11)

• Questions for Individual Contributor and Engineers

• Question asking about

• How do they feel about 4 factors above

• How do they feel about Salary and Bonus

• These members are responding for a portion of a large project, they are specialized to their field and tend to focus on the assignment Asking them to understand their current feeling and their expectation, these also represent for most of Individual Contributors and Engineers of the company because they work together day-by-day.

• In-depth face to face interview 3 Individual Contributor and 6 Engineers using semi-structure questions

3.Research Methods (11/11)

• Interview Plan

working hour to avoid impacting to their working schedule

make a friendly interview environment

interview

respondents

Concluding Remarks (1/2)

• Expected Results and Contributions

• After finishing the research, I can identify the gap between the talent management

expectation and perspective from the employees Then I can suggest changes and additional implementations to make the gap is closer.

Concluding Remarks (2/2)

• Current Progress and Following Schedule

Aug • Study Tour to STU

Sep • Thesis proposal presentation

Oct • Finalize thesis proposal

• Start to design questions

Nov • Start to interview

• Chapter 1, 2 and 3 completed

• Chapter 4 completed

• Finish the interview and analyze

interview’s result Dec • Chapter 5 completed (Conclusion)

Jan • Full thesis completed and

Thank you

for your attention!