Comparing the human resource management model of hung dat leather shoes company with another one of trang bom rubber platation

8.2.Retaining page 29Chapter II Human Resource Management models of Hung Dat Leather Shoes Company and Trang Born Rubber Plantation LThe history of Hung Dat company page 32I1.Human resou

AND INfORMA nON T£CHNOLOGYSCHOOL : FOREIGN LANGUAGES COURSE : BUSINESS ADMINISTRATION

COMPARING THE HUMAN RESOURCE

SHOES COMPANY WITH ANOTHER ONE OF

TRANG BOM RUBBER PLATATION

Advisor Student Class

: Dr.-lug DANG MINH TRANG: PHAM NGUYEN THAI HUY: KA0002

AND INfORMA nON TECHNOLOGYSCHOOL : FOREIGN LANGUAGES COURSE : BUSINESS ADMINISTRATION'

-* -6RADUATION PAP£R

COMPARING TIlE IIUMAN RESOURCE

MANAGEMENT MODEL OF IIUNG DAT LEATIIER SIIOES COMPANY WITII ANOTIIER ONE OF

TRANG BOM RUBBER PLATATION

Advisor Student Class

: Dr.-lug DANG MINH TRANG: PHAM NGUYEN THAI HUY: KA0002

81NJWJ9JIAtONHOr

General Model of Human Resource Management

I Definition of Management and Human Resource Management page 6I.l.Definition of Management page 6I.2.Definition of Human Resource Management page 6

II Human Resource Management functions page 8

m General model of Human Resource Management page 9IlI.l.Human Resource planning page 9m.2.Recruitment and Selection page 11IlI.2.1.Recruitment page 11

IlI.2.1.1.Definition of Recruitment page 11IlI.2.1.2.Source of Recruitment page 12m.2 1.2 I.Intemal recruitment page 12IlI.2.1.2.2.Extemal recruitment page 13III 2 2.Selection page 15IlI.3 Orientation/Socialization page 18IlI.4.Performance appraisal page 19

I1L8.Promotion and Retaining page 28III 8.I.Promotion page 28III 8.2.Retaining page 29

Chapter II

Human Resource Management models of Hung Dat Leather Shoes

Company and Trang Born Rubber Plantation

LThe history of Hung Dat company page 32I1.Human resource management model of Hung Dat company page 34ILI.Hum~n resource planning page 34IL2.Recruitment and Selection page 34

LThe history of Trang Born Plantation page 39

II Human resource management model of Trang Born Plantation page 43II.l.Human resource planning page 43I1.2.Recruitment and Selection page 4311.2.I.Recruitment page 43

IL2.2.I.Normal employee selection page 44IL2.2.2.Manageriallevels selection page 44

II.6.Promotion page 48

Chapter III

Comparing the two models

I Some strengths and weaknesses of Hung Dat model page 50

III Some recommendations page 54

I.I.Practicality

The economy is always the key factor of a country Nowadays, coupling withthe continuous development of the global economy, Vietnamese economy has beenreally changed And when the tariffs and the trade barriers among countries do notexist, the most important factor of an enterprise is management system Men,Machines, Materials, and Methods (4Ms) are four factors determining the success orthe failure of a business, and Men is the primary factor influencing the rest of anotherones How does a company has to do to take advantage of this important source? Thatquestion is always raised to one company from the first time of establishing to thetime when it gains stability and development

With the mixed economy controlled by the Government, Vietnam has beenintergrating into the global economy, especially with the ASEAN, that is the reasonwhy the quantity of enterprises have raised strongly However, Whether havemanagers already mastered the ways to manage their personnel or not? Oncemanagers can answer the question, he/she will find the right methods to help his/herbusiness exist and develop Human is a source and human can do everything, buthuman needs to be managed following a specific model because human as well asenterprise is the cell of society Of course, company or factory has its own model ofmanaging human resource so there will be enterprises gaining success, on the otherhand, there will be enterprises suffering from failure It proves that human resourcemanagement is the determining factor, the center of economic activities Basing on

my limited knowledge, I want to find out the general model of human resourcemanagement and to analyze deeply two kinds of enterprise so that we can discover theproblems of these kinds, and from the results I hope to contribute my research to build

a better human resource management model for the Southeast area enterprises ingeneral and Dong Nai enterprises in separated

Knowledge from lectures and documents (books, newspapers, magazines, )

is only the theory that every student must master However, it is not correct when wesay that we can apply completely theory into practice To apply theory into practice,one has to understand clearly theory, analyze carefully the matters on theoreticalbasis, develop that basis, compare theory with practice, and then apply into practice

So is my research The knowledge that I have received from the lecturers is only thetheory The practice shows that we can not apply any theoretical models with enoughdetails into the practical situation of enterprises, especially the management models.Depending on the research, I want to study deeply about a specific human resourcemanagement model to get more experience for my own theoretical knowledge so that

I can prepare well for the future job

II The samples of the research

In the strongly developing economy, Dong Nai has become one of theindustrial centers of the country Besides the early established industrial parks (BienHoa Industrial Park is a clear example), now the investment trend of foreign and localinvestors is pouring the central districts such as Trang Born and Nhon Trach, Thereare many medium and large enterprises so the samples that I used in my research arenot considerred as the standard ones

Hung Dat Shoes & Leather Company is a medium business, it has been set

up for two years However, its development has contributed much to the localeconomic development

Trang Born Rubber Plantation is a branch of Dong Nai Rubber Company.After a long time of the planned economy this company has shifted its structure forthe new economic situations

Both above enterprises have their own ways of managing human resource,but I still want to analyze them in order to find out the strengths and weaknesses tomake them more effective.

III The scope and the limitation of the research

Applying the mixed economy has made the quantity of enterprises increaserapidly with more and more new kinds On an objective sense of a student, choosingthe topic and samples for the research can not avoid limitation Two above enterprisewhich I mentioned are two medium enterprises among many large ones so the humanresource management models of these enterprises can not be considered as a perfectmodel or a standard model However, I wish my research would make peopleunderstand more about two management models so that people can take a deeper look

at the role of human resource management

The success or of a business depends much on the internal information andthe secret information of that business That information can bring business to thecompetitive advantages Therefore, I had problems collecting information so thestatistics that I used may have much limitation and is not the same as my desire

IV Methods

• Step I : Reading documents (books, newspapers, previous researchs, )

• Step 2 : Collecting information

• Step 3 : Interviewing

• Step 4 : Analyzing information

• Step 5 : Testing the information sources

Chapter I

~ENEIlAL M()()EL IlF tiUMAN IlESIlUIl[)E MANA~EMENT

I.Definition of Management and Human Resource Management

I.l.Definition of Management

It is difficult to find out the standard definition of management We shall findmany different definitions in various texts, but these definitions still have the sameelements

The President of American Management Associates (AMA) used thisdefinition: "Management is getting things done through other people"

An organization's objectives will be performed by members of thatorganization However, how they can perform those objectives well, it is a reallyimportant problem that each manager has to deal with A good management method,thus, is how to manage average people business to do superious work

So far, management is defined as "a social and technical process that utilizesresources influences human action, and facilitates changes to accomplishorganizational goals"

I 2 Definition of Human Resource Management.

As early mentioned, Men, Machines, Materials and Methods (4M.s) are fourfactors influencing the success, or the failure of business In terms of those importantfactors, Men play the crucial role Men know how to use Machines effectively; how tomake Meterials be high quality goods or services; how to apply Methods to businessadministration to make it more perfectly So it is worth stating that: "Among all of themanagerial roles, personnel management is the most important and the center rolebecause all of the organization's actions belongs to the sucess of personnelmanagement" (Likert, 1967)

What is Human Resource Management?

According to Bruce Charnove and Patrict Motana, "Human resourcemanagement is the term generally applied to those activities concerning themanagement of people"

Raymond J.Stone stated that "Human resource management is managmgpeople within the employer - employee relationship It involves the productiveutilization of people in achieving the organization's activities and the satisfaction ofindividual employee needs"

After a long period of studying, experts and economists proposed a newdefinition, "Human resource managemnet is the process by which organizationensures the effective use of their associates in the pursuit of both organization andindividual goals"

In spite of the fact that human resource management IS a basic tool ofmanagers, we should admit that it is both an art and a science

-Why is it a science? Human Resource Management IS represented bytheories and knowledge required through management process Theories are used forrecruiting, selecting, appraising,."while knowledge is used for training, developingcareer skills

-Why IS it an art ? Human Resource Management applies knowledge,theories or even behavourial ways in reality In an organization, there are many kinds

of people belonging to different genders, age and behaviors so how to manage thosepeople getting organization's objectives is an art

II Human Resource Management Functions

Human Resource Management aims to help organization fulfill its objectives.Human Resource Management objectives must couple with organization strategy.Specifically, Human Resource Management objectives concern with creatingappropriate activities, effective methods to carry out its assistant role For example, anorganizational goal is to gain profit improvement, it requires Human ResourceManagement how to reduce labor costs, how to motivate employees to work withtheir best efforts to produce good performance (motivation or reward policing), how

to help employees work with better productivity (training and developing programs)

Human Resource Management functions include:

-Staffing / Employment:

Human Resource is considered as a key competition advantage How toattract qualified people is a crucial work of management Handling qualified, skillfuland experienced people means that organization has set the basis for the comingsuccess Business, thus, works with all of its ability to recruit excellent people andthat opens a new competitive form

-Training and Development:

After making performance appraisal, enterprise makes its own training anddevelopment programs How to help employees improve their skills, knowledge sothat they can hold new theories of production, new technological trends and newsocio-economic trends Nowadays, training and developing personnel is more andmore important, it determines the success of an enterprise So training anddevelopment is always Human Resource Management function

-Retaining:

Qualified employees can quit their jobs because of some reasons, and theyleave enterprise with their skills, experience and knowledge That is a big loss ofenterprise so how to keep qualified employees? That is a question be raised in

managerial work Management always considers that satisfying employees' needs andgoals is an important part of management But how to do this work effectively? Toanswer this question we must focus on organization compensation policy thats refers

to salary, bonus, or insurance; however each employee has different compensationdepending on his/her performance/contribution Coupling with compensation is safetyand health standards Human Resource Management must make employees believethat they work in safe and healthy environment, with comfortable working condition.Besides safety and healthy standards, work insurance policy is much noticed on Inorder to retain qualified personnel, management not only focuses on compensationand standards of safety and healthy but also on employees relations How to make afriendly working environment how to make employees love their jobs Those belongs

to Human Resource Management work

III General Model of Human Resource Management.

III.l.Human Resource Planning

Shimon L.Dolan and Randall S Schuler (Personnel and Human ResourceManagement in Canada, 1987) stated that ineffective Human Resource Planning lookslike an organization which has a factory and an office without managerial efficiency.Because of the important role of Human Resource Planning, many enterprises put it intheir models of Human Resource Management Human Resource Planning is theprocess an organization uses to ensure that it has the right amount and the right kind

of people to deliver a particular level of output or services in the future It means thatHuman Resource Planning mentions to "how to get the right people into the rightposition at the right time"

An organization that does not have plans for its human resource will find itdifficult to fulfill either its personnel requirements or the organization's objectives.Human Resource Planning helps both organization and employees to prepare well forthe future Making Human Resource Planning helps business be ready to deal withnew changes of production and management; moreover, it aims to take a deeper view

on employees' skills, knowledge to create suitable training and developmentprograms.

Human Resource Planning makes predictions concerned with social andeconomic problems Many people say that even a prediction that is sometimes wrong

is better than no prediction at all

Steps in Human Resource Planning:

-Environment scanning:

Environment scanning refers to looking at such environmental problems aslabor force composition, economic conditions, laws and regulations Analyzing thenew changes of laws and regulations helps business go along well with the changes of

the Government policies In addition, study of economic condition such as growth

rate, inflation rate, unemployment rate, or the regional economic situation helpsbusiness take right and quick actions with new economic changes

-Examinizing internal and external human resource:

Examinizing the ability of the current human resource as well as reviewinghow employees have been performing is crucial work of Human Resource Planning.Analyzing internal supply in terms of occupation, gender, or age will be necessary forbusiness when it's in preparing stage of new recruitment Which gender, positions arebeing demanded? It's also important to make analysis of internal human resource inorder to set up succession, or redundancy plans

Besides examining internal supply, examining external human resource isessential How is the labor market(shortage, or surplus)? Is unemployment rate high

or low ? What will increase the demand for employees ? When making HumanResource Planning, business must answer those questions to make sure that they have

a carefulilook at external supply

-Forecasting Human Resource Requirements:

Which kinds of emloyees will be demanded? How to expand, or reducepersonnel? Which kinds of employees are promoted! transferred? How to set up

effective training and development programs ? Once managers answer thosequestions, they understand why they have to make Human Resource Planning.

An organization wants to apply new equipments with modem technology, butits employees are not skillful and experienced enough so it is quite difficult for them

to satisfy new demands However, this problem will be perfectly solved iforganization makes a forcast of human resource requirements, about training, oremployees demanded

Human Resource Planning IS the first part in the model of Human ResourceManagement Making this first part well means that we have created a basis for thefollowing parts of the model

III.2.Recruitment and Seletion

Nowadays, recruitment becomes a form of competition Organizationscompete with each other not only on sales, production, services but also onrecruitment Identifying, attracting and employing qualified personnel are asuccessfulness of organizations because "people make all" Having skillful,experienced, talented employees means that organization hold a highly valuablesource

Recruitment carries out both organizational and individual objectives Withorganizations, they expect from employees' contribution to fulfill their objectives,they utilize all of employees' ability for the survival and developmental goals With

individuals, business helps them satisfy their needs, to carry out their lives objectivesthrough compensation

III.2.1.2.Source of recruitment

III.2.1.2.1.Internal recruitment

Internal recruitment refers to the process of choosing candidates from thecurrent employees when there are vacancies in business

There are many ways of internal recruitment:

-Promotion from within : organization has vacancies in managerial levels, itwants to full those vacancies; before opening recruitment program from outside, itchooses candidates from internal source Actually, employees who have wellperformed, effectively contributed will be promoted to higher positions

-Job posting: When there are vacancies in organization ( not for manageriallevels), organization will inform to its employees through the use of notice-boards,mail message, or letter so that employees know exactly which positions aredemanded, which criteria are required, and how to apply for

-Job bidding: This is a recruitment process that allows employees to applyfor positions though there are not vacancies This way encourages employees tobelieve in their ability, knowledge, experiences so that they can work better in higherpositions For example, one worker can apply for a position as a supervisor if he/ shethinks that he/ she will do that work better

-Referrals : Someone who is in high position introduces a qualifiedemployees for a vacancy with management board For example, one worker has givengood performance for many years and his/ her supervisor will introduce him/her tomanagers for high promotion

Some advantages and disadvantages of internal recruitment:

-Providing greater motivation -Limited source of labor Therefor good performance It is a good are no many choices for businessway to encourage employees to to select the best qualifiedwork with their best efforts, candidates

contribute as much as possible and -Creating political infightings.one day, they have chances to be Disagreements III thinking,promoted working among employees appear.-Enabling employees to perform -Creating "informal groups".the new job with little job time Employees who are rejectedEmployees have been familiar insubordinate promotedwith the working environment so it employees

does not take much time for him! -Not creating fresh ideas Newher get along with new positions promoters keep the same ways of-Giving organization the actual thinking and working, there are noability of employees Organization enough new ideas to create newknows the strengths and changes

weaknesses of candidates

-Saving a large amout of money

Organization does not spend on

advertising or selection methods

III.2.1.2.2.External recruitment

When there are vacancies, organizations will inform to public about thepositions demanded, the criteria required in order to attract highly qualifiedcandidates Such forms of external recruitment as emloyment agencies, educational

institutions, head hunters offices, unsolicited applications, employee referrals are allpopularly used.

Unsolicited applications: This type of candidates do not need to wait forvacancies, or jobs advertisements of companies They like to work for thatcampany and they apply for However, companies can not use this kind ofsource right away, they retain for future need because they have had theirown staff and they do not dare to "bet" their business

Employment agencies: When companies need a large number of emloyeesfor ordinary work, they can use this type Employment agencies can sypply

a lot of employees at one time This type can help companies save time;however, the reliability of candidates and their abilities are not high so itsuits to simple jobs

Head hunter offices: When compames need candidates in manageriallevels, they choose this type These offices can supply very highly skillful,talented, qualified candidates, and this type is very reliable

Educational institutions: Besides those above types introduced; nowadays,this type is often used Excellent students can be recruited when they are incolleges, or universities Companies use this type because candidates arewilling to work and easy to train

Some advantages and disadvantages of external recruitment:

so business can choose the top spend much time on orientationqualified candidates process

-The more new employees, the -Not having enough availablemore skills, knowledge and information about candidates' realexperience This creates positive ability

changes in business -May be destroy incentive of-Not changing the present present employees There are noorganization at hierachy as much chances for present employees toWhich positions are in shortage, be promoted

organization will choose right -Costing much money foremployees so it doesn't affect to advertising and other expenses ofthe organizational hierachy, recruiting

retaining it stably

III 2.2 Selection

The efficiency and productivity of organizations are dependent on the qua lity

of their human resources Poor selection decisions resulted in increased training time,job dissatisfaction, accidents in work and poor performance, so selection processbecomes a crucial factor of management

Selection is the last stage of choosing new employees Selection involves inusing such methods as examinizing application forms, interviews, tests to evaluatecandidates and to make "hire", or "no hire" decisions.

Steps in selection process:

Examinizing application forms: in order to know which positionscandidates apply for and get information about candidates for interviews(see Figure 1)

Position applied for:

Part timeFull timePermanent

Figure 1: Application form

Source: Human Resource Management, Raymond lStone

Initial interview: to have quick evaluations about candidates' abilities and

qualifications

Testing: to check candidates' skills, knowledge, experience, or healthystatus through general knowledge tests, job knowledge tests, physical tests,

or even intelligence tests,

Background investigating: so as to check whether the information given in

application forms is truthful, or not through previous professors, orsupervisors,

Selection interview: to find out more about working ability(self - worked

ability, team - worked ability, pressure of working, ) so that decisions ofselection are made

Job offer: choosing "the right people for the right positions".

Questions for interview:

1 Tell me about yourself

2 How would your friends describe you?

3 What makes you different from other candidates for thisposition?

4 Describe the accomplishment of which you are the most proud

5 Why should we hire you?

6 What strengths and attributes could you bring to this position?

7 Why did you choose your university?

8 How did you become involved in your extra - curricularactivities?

9 Describe the job or the activity which has had the greatest impact

on your career goals

10 What are your career and educational goals?

11 What would you like to be doing five years from now?

12 What have you known about our company?

13 What do you believe are the key issues and problems III our industry today?

14 What other jobs/fields are you considering?

15 In what kind of work environment do you do your best work?

16 With what kind of people do you like to work?

17 What kinds of tasks and responsibilities motivate you the most?

18 Tell me about what you learned from your previous jobs?

19 What did you dislike most about your last jobs?

20 What is your greatest weaknesses?

21 Have you ever failed at anything?

22 What will you do when you have a free time?

23 What is your favourite book/movie/song/ ?

24 Which magazines/newspapers do you read regularly?

25 What would you like me to know about you that is not on your

employees overcome this difficult stage.

Many studies have shown that new employees often feel anxious with new working environment, they worry about how to perform their work well? And how to communicate with the bosses and old employees? Thus, organizations always have orientation process to help new employees get along well with new environment.

In reality, organizations will give new employees the information about whatthey have to do? And how they have to do to fulfill organizational objectives?Additionally, organizations help new staff master organizational policies, regulations,and working rules, And of course, the goods, or services of organizations will bealso introduced to new staff; the purposes of jobs are focused to ensure that newemployees know well about their jobs Moreover, organizations should make newemployees be welcomed by the old ones in order to make them believe that they willwork in the best environment with friendly, and helpful colleagues.

Effective socialization program reduces anxiety of new employees, helpsthem be more confident, and encourages them to show all of their abilities to makehigh productivity

IlIA Performance appraisal

After helping new employees be familiar with new working environment,organizations use appraisal policies so that they can know exactly how wellemployees have performed the work

Many managers admit that performance appraisal is a difficult task becauseemployees' performance is intangible However, each employee's work andcomtribution are measured depending on the organizational standards of performanceand the individual objectives obtained during working period

No one works in a separated environment so performance appraisal measuresnot only individual employee performance but also relations among employees

The uses of performance appraisal:

Performance appraisal aims to link the organizational strategy to theindividual employee performance In fact, organizations will check theemployees performance whether it has gone along with the organizationalobjectives, or not Moreover, the adoption for new changes of employeesare appraised So performance appraisal system must be flexible

Many organizations use performance appraisal system for making decisionson: salary administration(pay raises), promotion, or demotion,

Managers use performance appraisal system for evaluating the strenghtsand weaknesses of their employees in order to set up appropriate trainingand development programs Who show good abilities will be developed forhigher positions, who are in shortage of qualifications will be trained toimprove current skills, knowledge for better performance

Traditionally, appraisal concentrated on such personal characteristics asintelligence, creativity, and ability Nowadays, appraisal has based on employee'sactual performance

There are many methods of performance appraisal including as follow:

The comparative method: this method requires managers to compare anindividual's performance with other's It aims to differentiate employeeperformance Thus, it gives managers information about employee'sworking process and contribution

The attribute method: refers to evaluating employee performance in term ofemployee's characteristics for desirable objectives

The behavorial method: attempts to define the behaviors that an employeeshows to work effectively It can link the company's strategy to the specificneeds of implementing that strategy

The results method: result is the best way to evaluate goals; objectives areconsidered as feasibility when they bring to business specific results Thismethod aims to measure results of work from individual and groups so itcombines an individual results with organizational objectives

The total quality method: suggests that the major focus of performanceevaluations should provide employees with feedback about areas in whichthey can improve It relies on a combination between attribute and results

methods to performance measurement The total quality method adopts asystems - oriented focus.

Performance appraisal system helps business discriminate individualemployee performance Those who contribute the most to the achievement of theorganizational objectives will receive suitable rewards On another hand, those whoshow bad performance will be trained to produce better performance foraccomplishing organizational goals

III.5 Training and Development

Weare living in a society which changes have occurred rapidly The booms

of technology, information force people to attempt to those changes Thus, one cannot follow the new changes it means that he/she becomes backward, so is the businessfield Companies compete with each other in a severely stem business market, onewants to exist in the market must hold qualified people and exploit all of theirabilities

Why are training and development necessary? - Many studies on largeorganizations show that if organizations pay much attention on training anddevelopment personnel, they will gain successfulness easily Actually, with a newly -established organization training and development programs help emloyees get moreskills, more knowledge to fulfill the job's objectives With a stably - operated one, onthe other hand, training and development programs not only help managers enhancetheir managerial abilities but also improve employees qualifications for betterperformance

Training aims at gaining specific skills for immediate improvements in jobperformance Training begins after performance appraisal process because afterperformance appraisal is done, managers discover which qualifications theiremployees are in shortage to set up appropriate training programs Training includestraining new staff and training current staff

Training new staff concerns with guiding new employees what they have to

do to perform their work, how they have to do to work effectively.Organizations provide new employees skills needed for doing the work sothis kind of training are often established by organizations themselves andapplied to ordinary workers, sales staff, or first-line managers (supervisors).Training current staff refers to supporting current employees new skills,new knowledge, new experience to catch of the new changes of technology,philosophy of production, and market trends,

Development, on the other hand, aims at preparing for employees enoughqualifications in order to go along with new trends of future internal and externalchallenges In fact, development supplies employees as well as managers morequalifications to meet higher standards of job performance Many big companies oftendevelop their employees' qualifications by training them abroad, or setting upmanagerial training programs for higher positions

The training and development program of companies is a continuous process,

it appears from the first day of establishment until stable and developmental operationperiod In reality, training and development are damanded from the highest level ofmanagement to ordinary employees Managerial levels consider training anddevelopment as a tool of completing complicated skills of management, whileordinary employees take training and development to improve their working abilities

There are many methods of training and development that are suitable to eachfunction in organizations because each position needs different training anddevelopment programs

As early mentioned, organizations use many methods for training anddeveloping managerial levels, I only propose some most used methods:

• Case study: this kind of method sets a problem for trainees to solve Traineesare guided to have right thought so that they find the most appropriatesolutions This is an example:

"Thanh is a new manager of production department He has just promotedfor few years of good performance He is a young, talented manager However, hisnew position forces him to deal with many problems In the productiondepartment, Khanh, an old and experienced employee, was also in the list of newpromoters as the header of production department, but Khanh was only promotedfor the vice-header of the department instead of the position as header.Insubordinations, thus, appear when new manager starts his work Thanh is adynamic, patient header, but everything does not go along with his desire Most ofthe employees in the department do not follow Thanh's working style though they

do not express their insubordinations directly" How does the manager of companysolve this problem?

Case study demands trainees to think carefully about one problembefore they take their own actions It helps trainees get widen knowledge on anyproblems that they may face with in the future

• Role playing: this kind of method helps trainees get more knowledge as well asexperience on problem solving process This method is illustrated that traineeswill be assigned to play roles depending on each situation And with the roles

in the situation, what trainees do with their roles

• Behavior modelling: there are many problems set and trainees will be showedhow successful managers solved problems And from the experience of formersuccessful managers, trainees can create their own solutions

Besides many methods of training and development for managerial levels,there are also some methods for ordinary employees:

• On the job training: employees will be trained in their working environment.This method helps employees get skills at their work place and apply them toreal work right away thus, employees will find it easier to master new skillsand knowledge

• Course training: when there are new production demands, organizations traintheir employees in order to meet those new demands Course training can lastabout 1 week - 2 weeks It provides employees the information about newsituations and guides them how to get along well with thse situations.Technological methods, working styles, skills will be supported to employeesthrough this method.

attempt to new changes are easier to find successfulness To attempt to new changesmeans that training and developing personnel programs must be always dynamic andflexible

111.6 Compensation

When one person allows to work for an organization, the first question he/shemust raise in his/her mind is that "what's in it for me?" - It means that what he/shewill receive in return for his/her contribution In reality, one works for anorganization, he/she will try best to give much contribution, to fulfill theorganizational objectives; and of course, the organization will have to pay for itsemployees' serve in term of compensation

Compensation refers to rewards(including financial compensation and non financial compensation) that an individual receives for the exchange of his/herserving

-Financial compensation refers to salary, bonus, allowance that one individualreceives in his/her working life

a Salary is an important factor of management The success or thefailure of an organization is affected by the salary policy Can youimagine a situation in which highly productive employees are paidequally to the bad ones? - Good employees will quit their jobsbecause of unfair salary policy Thus, organizations should paysalary to their employees depending on each individual employee

ability and performance Those who show highly resultedperformance will be paid much and vice-versa In today businessfield, salary policy is considered as a competitive form oforganizations To attract and keep qualified personnel, organizationsset their pay ranges higher than their competitors This alsoencourages employees to work with their best efforts for pay raises.

o Besides salary, financial compensation also includes bonus andallowance Well - paid bonus and allowance regulations makeemployees more dedicated to their work It creates positive manners

in work In fact, when employees to work much more(working extratime on weekend, or holidays, working on night shows, ), they will

be paid much more Or even when they have to delay their jobs forsome reasonable reasons(sickness, giving birth to baby, ), they willstill be paid

Non-financial compensation refers to such nonmonetary compensation associal security, medical care, life insurance, work insurance, Creating goodnonfinancial compensation policy helps business not only encourage the workingabilities of employees but also retain qualified employees for the existence anddevelopment of business Thus, the duty of managers is how to set up a suitablenonmonetary program

The practice proves that good managers are those who can master employeesdemands and know how to satisfy those demands Employees demands include

"basic(physiological), safety, belonging, ego-status, and self-actualization" (Maslow'shierachy of needs) How to meet those needs depending on the abilities of managers.Managers have to make their employees believe that their needs have been satisfied,and they will work with all of their abilities

Nowadays, the society has been changing rapidly, nothing can retainstabilitty, the society has become more and more complicated, the human being has

been threatenned by the appear of new diseases(SARS, bird flu, ) so we can notdeny the positive roles of nonfinancial compensation We can say that it is considered

as a "spiritual doping" to make employees try best to work Organizations expresstheir cares to their employees by many ways: health check, flexible holidays policy,

Actually, the work itself determines the compensation of an organization.Employees are paid basing on the difficulty level of job, the safety of workingcondition However, the compensation policy of organization becomes no meaning if

it only focuses on financial compensation without nonfinancial one

111.7 Motivation

Financial incentives are considered as one of the best way to stimulateemployees contribution Company will allocate bonus, or increase salary levelaccording to individual employee performance Or organizations encourage theiremployees to buy the shares of the organizations, that combines the company benefits

to the employees benefits It motivates the working morale of employees becausecompany's assets are their own assets, the success of company couples with theirbenefits

Sometimes, the finacial incentives theory can not make positive influence toemployees The financial incentives state that "the more you pay, the harder theywork" is not completely true, especially with nonfinancial employees This kind ofemployees works for some aspects: meeting people, helping others, contributingresearches, so money is not the key motivating factor

In reality, how to make your employees satisfy with their work is also aneffective motivation theory When employees satisfy with their working conditions,working environment, they will perform their work with their best efforts

Additionally, how to create friendly and close relations between employeeand manager is one of the difficult tasks of management Managers should respecttheir employees, realize that their employees are the most important, make their

employees believe that they only themselves can perform the work with the bestefficiency.

"If you want someone to work for your desire, let's make them like the work,have the desire of performing the work" (Dale Carnegie, "How to Make Friend") Infact, talented managers always know the best way to behave with all of theiremployees They know how to make their employees like the work assigned and theiremployees will do the work with satisfactions and happiness because no one can forcesomeone to work for his/ her likeliness

Dale Carnegie told that he had 2 nephews who had to study far away fromhome Their mom was worried because they rarely wrote to her One day Carnegieproposed an idea that could make the two boys "want" to write to their family moreoften He wrote to the two nephews in order to know about their healthy status, theirstudy, their lives, In the post script of the letter he said that he sent 5 dollars foreach one, but he pretended as if he had not remembered Can you guess what the twoboys did?

In real life, there are many ways to make one person do what we want.However, remember that do not force them, let's them do things for your desire, it isalso a very positive motivation theory that every manager should master

"FACTORS WHICH MOTIVATE ME"

1 Good pay

2 Good physical working conditions

3 Chances for promotion

4 Opportunities to do interesting work

5 Getting along well with others on the job

6 Fair vacation arrangements

7 Feeling my job is important