G1 00119 BUILDING THE HUMAN RESOURCE DEVELOPMENT STRATEGY FOR POWER TRANSMISSION COMPANY Nº4 IN THE PERIOD OF 2010-2020 XÂY DỰNG CHIẾN LƯỢC PHÁT TRIỂN NGUỒN NHÂN LỰC CHO CÔNG TY TRUYỀN TẢI ĐIỆN

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CAPSTONE PROJECT REPORT BUILDING THE HUMAN RESOURCE

DEVELOPMENT STRATEGY FOR POWER

TRANSMISSION COMPANY N’°4

IN THE PERIOD OF 2010-2020

Group No.: 1 Student’s name:

Nguyen Huu Nghia Nguyen Van Bay Doan Huu Thanh

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THE SOCIALIST REPUBLIC OF VIET NAM

Independence ~ Freedom — Happiness

To: Board of Directors of Power Transmission company No.4

Sub: The Final project of Group | - Class GGMBA01.E04

After studying Global Excutive Global Executive Master Business

Administration (GeMBA) program which is organized by the Center for Education Technology and Career Development — Viet Nam National University associating with

Griggs University - USA in Vietnam We are group | — Class GGMBAO1.E04 and in

process to prepare our graduation project Our group members are :

2 Mr.Nguyen Van Bay „ > ' xẻ us Transmission

PES Co No.4

-

and Personnel department

Co No.3

4 Mr.Đoan Huu Thanh Vice Manager - Budget Transmission

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topic to be “Human resource development strategy for Power Transmission Company No.4 in the period of 2010-2020”

We would like to have your permission

1 To do our graduation project with the above topic

2 To access and use the company’s data for this final project

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Griccd GLOBAL ADVANCED MASTER OF BUSINESS ADMINISTRATION PROGRAM

us to collect helpful knowledge, valuable lessons and real experiences for us to apply our learned knowledge to production practices in our working locations We hope that through this project, scientific research topics on larger scales will be

established and developed to better resolve actual matters in future

Members of Group 1, who have attended the Strategic Management subject,

GeMBAO1.E04 class, would like to sincerely thank:

- Griggs University, USA

- Center for Educational Technology and Career Development, Vietnam

National University, Hanoi

- Domestic and foreign lecturers who took part in teaching subjects

- Board of Directors of Power Transmission Company N°4

- Departments of Organization, Technique, and agencies under Power Transmission Company N°4, those have provided data and contributed opinions as

well as who helped and encouraged our team to finish this theme

Especially, our group sincerely thanks lecturers and assistants in charge of the Strategic Management subject for their direct helps and enthusiastic directions that

enabled us to complete this theme

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PDF Compressor Free V@A4RhE OF CONTENT

AGCKINOW Lại LÔ CD cusyrssssgrogssgoiSoi04000670014ã5936y60458440580146948146391⁄2E130643g50961048208440066399/8564 2 LISD OF SYMBOLS AND ABBRE VIALIONS eccsmcvsnrssnoxmcaanernsess ceomounenemerersnnion 7 LAST OR TABLES ncsccenencerrsnnennsennecthannnssnnonnnersuansnsnndnrrandecsencantinencenst Sengntidaanennsehies 8 LIST OP FIGURES scccwnccuspecn nunca ammnmmaaapunnipaseunyescunnceenanes 9 EGINGÉ V-C TL cangghsoinhi Gi0n81g52t00n0Akiniit1033060070GE00601.0540060094000480101/09//0110550ESU/ĐDTAGSEENMSAUGUEIADLEG08 10 CHAPTER I mm 14 OVERVIEW OF HUMAN RESOURCE DEVELOPMENT STRATEGY

1.1 CONCEPTS, ROLES AND KEY CONTENTS OF HUMAN RESOURCE MIA NAGI DAE Ì nànhuát khái gg406106611614630/010601006100019606640610G14304006038/36310661/001610060123000H0110/000101300404116E 14

1.1.1 Human ReSOur ce eeseeseeeceeessssneeeeeeeeeecesesenseeseeseeeeseeseeneeseeseenens 14 1.1.2 Concepts and roles of human resource management - 15

1.1.3 Current human resource administration in Vietnam . 18 1.1.4 Experiences and significance of human resource administration 20 1.2 CONCEPTS OF STRATEGY, STRATEGIC ADMINISTRATION AND HR SIBRATEGY sxcancciccammmannsn onan a ane 22

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1.2.2 Concept of strateg1c manageme€nI(: .- - «si sere 23

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1.3 INTEGRATION OF HUMAN RESOURCE STRATEGY AND CORPORATE STRATEGY .Ô 29

1.3.1 Human resource 1s a core capability of Corporat€: . - 29 1.3.2 Human resource strategy needs integrating with Corporate strategy 31

1.3.3 Human resource with types of business strategies 32

14, CONCLUSION OF CHAPTER lissiis,sticiimmnanign nina 34 CHAP ¡| DI: Lễcgyssyxsys64y4070549605609646965454G0130219)9033630916GG503972901435189003412160(0021028640023⁄4300gy 2a 36

REAL SITUATION OF HUMAN RESOURCE IN POWER TRANSMISSION COMPANY N°%4

2.1 ABOUT POWER TRANSMISSION COMPANY N14 w ecscsssesseessessessseesseeses 36

2:1: 1 Cieiieral TIYOdUCHUITE eo neesaeisseatsoaseadofi53854348065981024080044g8Lã3633s4000044 36 2.1.2 Model of management SVSLOM: GRIONIZANONS cisicessceisanwscnneansscnecavenserens 37

2.1.2.1 Direct operation department for power netWOorksS: 37

2s: IVInlidtgifiept G60ATRIEHÍE qua aduqaaaiadtqqidiqlaiegiisttaissaisaasie 37 S:l c7 kHirifpEffiEnift DĐ sa na Gai 00106038606806064858403.S0Q040)64038G009.3ã86 37

2.1.3 Chart of management and production system organization of Power Transmission Company ÌN4 c2 E1 1217111171121 1111 1x 38

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PDIDG@nIBas0øflrreeaVertansystem organization: cccccss- 38

2.1.3.2 Chart of production structure organization of transmission

RE sụn ũg ta QuaGGGIIGGESUSBSIGGIHGISBGGIGISGIANGNOSIGSWGs@Gyogi 39 2A Relationship between NPT and PT C4? ccccsuvssssssiscncnccciceruassccesncsvenvcncs 39

2.2 FEATURES OF HUMAN RESOURCE ADMINISTRATION IN POWER i¿7ê) 82-7 s2, 7 42

22,1 Operation features OF POWELF THỦ SE gang datiidbSG2y136469146918546 6064844 42

2.2.2 Human resource administration features in power industry: 43 2.3 BUSINESS AND PRODUCTION OPERATIONS AND REAL SITUATION

OF HUMAN RESOURCE AT PTÌC4: - Q G11 vn ren 47

2.3.1 Operation and developitierit OF PT C4: tá cosvoosaeciiasevoiasdisaliiadiesaegsse 47 2.3.1.1 Operation and development situation of PTC4: - - 47 2.3.1.2 Development orientation of PTC4 in the next time: 51 2.3.2 Evaluation and analysis of current situations on the human resource of

PT C4 in the past few ‘vears atid in present? sw ssscscsssascesscsvsssccrosvareasvernmeinssys 53

2.3.2.1 Current situation of the current human resource of PTC4: 53

2.3.2.2 Comparison of labor qualifications with those of Power

2.3.2.3 Recruitment, selection, and arrangement of the human resource 58

2.3.2.4 Training and development of the human resOurce - 59 2320s GIÔY FIUFfLE GIÍUff Ti ceatseuedoiigi4114011021655140001400049)1146466013812196.g2013 00600444 63 2.3.3 Analysis, evaluation of factors affecting the PTC4 HR development:

2i: 1: À114]5519 6ƒ te 1if6rfial giiviroilfiEtiE daaaaaaaadaaaaiagaegqaiie 63

2.5 oie 2Á11813515 01 ešIEfill efiVHOHIHETIE siiseeoiiioscii616606160154662028680Ax86 67 2.3.3.3 Combination of internal, external conditions (SWOT) and

determination of core: factors: S, WO 7? vssissscsscssesesscssscmcacrnsaicescewwaseessanns 76

2.4 CONCLUSION OF CHAPTER IÍ - G G5 13133 5353 1 xe 88

KH TT TH cac 8sexllflssesedliEedddlMXe-GUEG40CGGRGGRENNGUANiug8 90 ESTABLISHMENT OF HUMAN RESOURCE DEVELOPMENT

STRATEGY FOR POWER TRANSMISSION COMPANY 4 UNTIL 2020

3.1 SUMMARY ON THE CURRENT STATUS OF PTC4’S HUMAN

;410)0):40 0012 90 3.2.P1C115 BIRÁIEGT EORK SIAGE 2010-2020 ggaeaodaoaaedadauoaoe 9] 3.3 RELATIONSHIP OF STRATEGY BETWEEN PTC4 AND NPT 92 3.4 BUILDING A STRATEGY OF HUMAN RESOURCE DEVELOPMENT FOR PTC4 UNTIL 2020 wo 4ä 92 3.4.1 PTC4’s vision, mission, goals and core value of production and business

96403 066055G4GIG)40806150 1681004000 00 GIQQ(GQHIQGGHGAGEGGGSGLKGGIASESSGGI20144G13008u ng 92 3.4.1.1 PTC4”s Straf€ØIC VISIOT:: SG G1 nh ng 92

3.4.1.2 PTC4”§ INISSIOTNS: (c2 01001111191 2 vn ng nu 92

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PDB @qI8pPft64's lsœ#sV@fgiôfuction and business: . . 5 - 93

đ¿4 1/4 Cof€ VAIÚE: .-iieeeeirarisssrssrsrsrassaenssrsrsssasessssEe 466360 93 3.4.2 Vision and viewpoints of human resource development 94

3.4.2.2 Viewpoints of human resource development -‹- «‹ «<5 94

3.4.3 Goals of human resource devel pment sccisiesvscscsaveiceurcsverwavesvsseswess 95

3.4.3.1 Goals tilÏ 20 Ï Ế c3 199 vn nh 95

3 A532, GOAIS TUL ZOZD nvacrenrenncenevesnenersneneneavinnsenntdnxtneeriitnens itiiianck@iiweicHias 96

3.4.4 Forecast of human resource demand for PTC4 tiII 2020: 96 3.4.4.1 Forecast of EVN’s human resource upon labor productivity in

electricity production and DUSINESS ceseesseeeseeeseeeeeeeeseseeennesseeeteneenaess 97 3.4.4.2 Using the statistics method in the forecast analysis of HR demands:99

3.44.3, Quantity demand? cccacnanasnccaminmnnnmninnmncinwam 103 S444, Demands tit: Guay ansaiccuncmsncnucmmnacmmunmniousmene 107

3.4.5 Establishment of HR development strategies 0 sscissececsenosscasascnasss 109 SAS 1 WOT WOE sac 2001-1066 =ga062asl3Sgã6siii8i8Disa 109

3.4.5.1.1 Determination of core opportunities, threats, strengths,

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$451.2: SWOT TAS cccmnmmnncanunannanernnmcannnaw 111

3.4.5.1.3 Strategies of establishment proposal from the SWOT matrix:

3.55.14 Geouning proposed Strate tO cccscsccccericisnienivnsrasenevecucennecsen 115 -.5 SOME SOLUTIONS TO IMPLEMENT HUMAN RESOURCE

DEVELOPMENT STRATEGY cccceeecscccseceeecceeeeeseeseeeeeeeeeeaeeseaeeseeeeeneeeeneesees 116

3.5.1 Solutions about organization and mechanIsims -«- ‹- 116 3.5.2 Solutions of development and financial investment 117

3.5.3 Solutions of human resources managemenI « -«««+ 118 35.31; (SONMHOE JOD BNA SIS? arcs siseciussseoivaswnecessecvaspermnispyseeonsrenncencrcres 118

3.5.3.2 Planning human resource across the company: 118 3.5329 SCPC os dicstsctarisccisaindbasdiecbvabestssteatandasicatevbantcteanbantwchentuackos 119 3.5.3.4 Employing and arranpitig a Bt i essccsiccevwsuseessicsvsnsourentenccessnoaacen 121

3,.2:3.0 LEA BA EVEÏIHDDGIIEELceseoeniesiaresakotidishnidkrtoinniszaxgvkeeoserre La

3.0.3.0: ?2stmaline:wotlc HGhievGIEHeeeeeseesasenexsssrssseortonsnethorsp 123 3.5.3.7 Human resource policies to retain high quality human resource 124

l6: ROIHTBOTE SIRA TRÍ tra aaqứactogGrtrdgtitGAGiSNiStbocasseeasiseg 125 '.7, EXPERIMENT OF NECESSITY AND FEASIBILITY AWARENESS OF IUMAN RESOURCE DEVELOPMENT STRATEGY 2010 — 2020 PERIOD IN 1-Â Càng áo ci08208160969455896100du455066ã6666441068466108//68160134000unn008g9000308004536881010060601/0466010 127

3.7.1 Survey of opinions collection through public polÌs 128 3.7.2 Conference and widely collecting opinions of the manager at all levels

Giá t0) QGANNGGIGQGEGQGQGBINSIIGNRIEGMRGIDONSIGAGREIRSNHEIGNGSiNgsgqia 129

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3 BP Btn€€œnrpneswerdhktroesVer:sion HH ng xe, 130 Suí: dạy RBUODUNEIOSEIHA BS ssrsentssnutrikeeatatiiairvaoiniuVitiiANLiS80110010465A 08.6008 130 3.8.2 Recommendations to EVN and NPT? cccccccceceeseeeeeeeseeeneneeeesenees 130 3.4.3 Recommendations tO PT CAnnincsscscusssanmanmunmercammmanmass 132 3.8.4 Recommendations to school, training c€n(€r «« -««s++ 132

®09)/906117/9)0 133 REEERHENCE NHÀ LEHIA|DS cao tgddydvdgodigr00063628850260A560050880d84ggwest 139 ANNEX 1-‘OPINIONS QUESTIONNAIRE i sésscsieisssssavcsvcsarsescasvcicacsenaserousneaie 14] ANNEX 2- ANSWER LIST OF OPINIONS QUESTIONNAIRE 147

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- NPT: National Power Transmission Corporation

- PTC2: Power Transmission Company 2

- SE: Staff and employees

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Volume of managed lines from 2004 to 2009

Volume of substations from 2004 to 2009 Volume of current managed line operations Volume of current managed substation operations

Yield of commercial power from 2004 to 2009

Volume of increased lines for the 2010-2020 period Volume of increased substations for the 2010-2020 period Statistics of labor allocation from 2004 to 2009

Statistics of labor allocation based on professional aspects in

2009

Statistics of labors according to qualifications in 2009

Consolidated table of labor qualifications of PTC2 and PTC3

Statistics of annual training costs

Forecast of PTC4 labor demands in 2015 and 2020 based on

EVN Power Business Operation Norms

Interrelation between HR and power transmission yield

Interrelation analysis between HR and power transmission yield Estimations of power transmission yield from 2010 to 2020 Consolidated table of HR qualification data from 2004 to 2009 Total human resources with Technical School qualifications and above, based on the estimated power transmission yield for the

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Human resource capabilities Integration of human resource and corporate strategies Human resource in business strategies

Power Transmission Yield of PTC4 from 2004 to 2009 Power loss of PTC4 from 2004 to 2009

Statistics of labor allocation based on professional aspects

Statistics of labor allocation based on the age in 2009

Linear correlation graph of power yield based on human

resources

Linear correlation graph of power transmission yield and Technical School (TS) level human resource and above Linear correlation graph of power transmission yield and percentage of TS level human resource and above per total

human resources Graph of time-based power yield Graph of human resource quantity forecast of PCT4 until

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FOREWORD

Argument for selecting this theme:

The 21" century continues to open a new age to the mankind, the age of knowledge economics, with a “booming” rate and a special role It brings about a fresh air that speeds up the economy of most developing countries In the current age, the globalization has created both advantages and challenges for the economic development in each country Also, it will help improve financial resources as well

as human resource, both of which are essential factors in the economic development

The high-qualified human resource in Vietnam is both weak and deficient

Education and training establishments have failed to meet requirements in terms of quality, and quantity of the human resource for the economic development It is

hardly paid attention, attached importance to the management and use of human

resource nationwide, which leads to “brain-drain” out to the foreign countries and from State-owned to private enterprises In the current context, enterprises have no

options rather than attach importance to the training and development of the human

resource for their existence and development

The power industry, particularly the power transmission department plays a very important role in the socio-economy of a country In order to meet power

network development requirements from 2006 to the end of 2015, as well as EVN

power technology development strategies for the 2010- 2020 period, it is necessary that the human resource of PTC4 is standardized, constantly trained, and developed accordingly Therefore, the establishment of human resource development strategy

is an urgent task in the current period, aiming at upholding capabilities, combining various activities in functional departments, maximizing resource efficiency, improving and developing all activities for each functional department and agencies under PTC4 for achieving PTC4 general strategic objectives for the 2010-2020

period This is also the very key reason why our group selected the theme titled "

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Estab shimen res féumbare R¥easioa Development stratergy for Power Transmission

Company N"4 in the period of 2010 to 2020"

Aims and values of the theme:

Aims: The studied theories are applied and the practice is analyzed to establish the human resource development strategy, assisting PTC4 to fulfill its tasks, ensuring the stable and safe power supply for the socio-economic

development in the South

Value: Power Transmission Company N°4 is situated in Southern areas, a

location of numerous industrial areas, export-processing zones, with strong

economic and political centers in the South The increasing power demand is not only for regional supply but also for sale to Cambodia under the Government

permission Therefore, the development of electricity transmission system in

present and in future is indispensable, of which the human resource plays a very important role On above contexts, the study and application of this theme appears very important

Legal rationale of the theme:

The theme is conducted basing on:

- Planning of national power development for the 2006 — 2015 period,

considering the year 2025 of the Prime Minister under the orientation:

“Synchronous development of power transmission and distribution network with

power sources development program” under the Decision No 110/2007/QD-TTg dated July18, 2007

- Strategy of power technology development of Vietnam Electricity Corporation until 2015 with orientations until 2025 under the Decision No 751/QD-EVN

- Functions, tasks of the National Power Transmission Corporation and orientations of the development strategy of PTC4

Object and scope of study:

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PDRX%Eje#tpffRsostritevV@fiohan resource development has been performed

with studied objects of human resources, those are performing management and

experimenting, and adjusting electric equipments for PTC4

Due to limited conditions, as well as restricted time for the capstone project

implementation, during the theme establishment, our group only conducted a survey and collected data on the current situation of human resource in Power Transmission Company 4 from 2004 to November, 2009 and built the human resource development strategy for performing the transmission network operations

management of PTC4

Study methods:

For study methods applied in the capstone project, our group based on taeories studied through subjects such as: Strategy Administration, Human

Resource Administration, Production Process Administration, Enterprise Statistics

end other subjects, combined with data survey, collection, investigation, interviews

of related individuals to build up the strategy In addition, during the

implementation, our group also consulted lecturers in HCM city National University

¿s well as well-experienced experts in the strategy planning

Possibility to fulfill the theme:

+ Our group has been well-equipped with knowledge, skills from the MBA yrograms on strategy administration, namely building strategy development models

»f the Company

+ All member of our group are management carders with working

>xperiences from 15 to 25 years in Power Transmission companies under National

Power Transmission Corporation Besides, our members came to absolute

agreement when evaluating the importance of the human resource for the current development of the National power transmission system

Layout of the theme:

The main contents of the theme are summarized into 3 parts:

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+ IORdpfep In Drassdew bh oun eesource development strategy

+ Chapter II: Analysis of current human resource situations in Power Transmission Company N°4

+ Chapter III: Establishment of human resource development stratergy in Power Transmission Company N°4 for the 2010-2020 period

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OVERVIEW OF HUMAN RESOURCE DEVELOPMENT STRATEGY 1.1 CONCEPTS, ROLES AND KEY CONTENTS OF HUMAN RESOURCE MANAGEMENT

In fact, many entrepreneurs highly appreciated the human resource, however, they do not know how to carry out their operations management related to the human resource Many entrepreneurs, particularly state-owned ones, have usually tended to recruit employees’ children that have been applied as an incentive model

to their employees Obviously, in the current context, entrepreneurs need to have innovative approaches of human resource and to seek the human resource strategy

in line with strategies of the Company

1.1.1 Human Resource

Concept

The human resource is understood as the whole capabilities of physical and

mental forces, which are utilized in the production and working processes It is also considered as a labor force— the most valuable resource of the entrepreneur’s production elements The entrepreneur’s human resource includes all employees operating in entrepreneurs

Role of human resource

- The human resource is the core factor creating profits for entrepreneurs: The human resource assures any creative resource in the corporate Only human

beings can generate goods, services as well as perform and supervise business and production processes Although equipments, assets and financial issues are vital

resources for all agencies, the human resource is extremely important If an agency

does not own talent staffs, the agency can not achieve its given objectives

- The human resource is strategic: In the background when the society is shifting to the knowledge economy, the role of factors related to technology, funds,

materials are being reduced Besides, the human being knowledge factor is gradually playing more important roles; for example, the human resource which is

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1.1.2 Concepts and roles of human resource management

Concept of human resource management

Administration completion, the concept of Human Resource Administration needs

to be mutually agreed

When mentioning the Human Resource Administration (HRA), French and

Dessler attached much importance to factors related to scope and content of execution According to French, “HR Administration is the philosophy, life,

procedure and practices related to human resource administration under the

operational scope of an agency”

Thence, concepts of the HR administration in countries where are in the economic development and transition stages, must meet the following basic

requirements and contents:

l- Representing advanced viewpoints of labors’ rights, focusing on the combinations that satisfy objectives of both entrepreneurs and employees

2- Specifying scopes, and objects of research that focus on the human resource in agencies

3- Strategies, policies of human resource in entrepreneurs must serve the

entrepreneurs’ business strategies and policies

4- Showing key factors of HR administration, including the philosophy, policies and practices

5- Not requiring special conditions if applicable

6- Shortening, simplifying and clarifying

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PDF Krom thas sata lias Morstetnomy from a centralized planning economy to a

market economy like in Vietnam whose technology and technique are still at low levels in an unstable economy, and whose State has been performing development processes on and for people, the HR management is a system of philosophies, policies and functional operations related to the human resource attraction, development education and maintenance of an agency, aiming at optimal results for

both the agency and its employees

In summary, the most general concept of human resource can be seen as

follows: “The human resource consists of activities that aim at improving efficient

contributions of individuals to the agency's targets, together with efforts to obtain

social and individual objectives”

Traditional and new opinions of human resource

Up to now, the traditional human resource administration is still a common method According to traditional viewpoints, human resource managers will resolve administration-related human resource operations

The department of traditional human resource is separated from practical operations of an agency in terms of material and mental aspects The figure 1.1 describes main characteristics of the traditional human resource and personnel-

related actions which are separated from centers in charge of profits in an agency

Figure 1.1: Viewpoint of traditional personnel management

Based on the acknowledgement of current human resource administration

strategies, the functional duties, as described above, remains its important positions

However, in the business environment changes, many agencies have been

developing a new structure and culture to satisfy demands that are competitive in

such flexible and highly-international environment

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PDF Agentiasase inttteep¥ fic @Bwards non-centralizing and empowering to their

online staffs for shifting from a centralized-to-flexible control system, and breaking through administrative models Organizations of integration development have

fostered a more flexible business environment through the risk acceptance

encouragements, and official relations minimization, together with further

promotion of direct interactions between administrators and staffs These

institutions would spend more time becoming familiar and satisfying customer requirements The use of traditional personnel model in such entrepreneurs would become contradictory to the approach nature so-called “human beings are regarded

as the human resource’’

Research &

Roles of human resource administration

Any enterprise is required to have two factors, including: human and material

resources for their production and business, of which the human resource plays an extremely important part, decisive to the existence and development of the

enterprise

Firstly, due to the harsh competition in the market, enterprises have to renew

their structure to the neat and active direction for their existence and development,

of which the human resource appears to be decisive

Secondly, the advance of science-techniques along with the economic development requires administrators to know how to make their organizations

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adaptEdC Ohusr ¢heoiniptemuirutien of planned contents, recruitment, maintenance, development, training, encouragement and creation of favorable conditions for the human resource through the organization in order to achieve the set forth targets

seems to be the greatest concern

Thirdly, the study of human resource administration helps administrators achieve their purposes, results through other people An administrator can set up a complete plan, build up an obvious organization chart, introduce a modern, precise checking system, etc however; such administrator may be still not successful if he/she fails to appoint appropriate people to suitable jobs, or does not know how to encourage employees to work For effective administration, administrators need to

know how to work and integrate with others, lure others to work for them

Fourthly, the study of human resource administration helps administrators learn how to make transactions with others, find out the common language and be

sensitive to the needs of employees, evaluate employees precisely, lure employees

to have a passion for their jobs, avoid mistakes in selection, use of employees, know

how to cooperate and perform targets of their organizations and individual targets, improve the efficiency of their organizations and gradually turn the human resource

strategy in an organic business strategic part of the enterprise, contribute into

quality and task efficiency enhancement of the organization

In a nutshell, the human resource administration plays a central part in general management; operation; production and business of enterprises, helping

them exist, grow up and develop in competition Such central role derives from that

of human being: the human being is the factor constituting the enterprise; the human being itself operates the enterprise and decides the success and failure of the enterprise The important role of the human resource makes human resource administration an important sector in all enterprises

1.1.3 Current human resource administration in Vietnam

During the economic innovation, new factors of the market economy

gradually replace out of date management principles, rules The intervention of the

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SiEÐ Ìn(aotIWiesS9fehf4bNsØws down, a new management method and a new environment for human resource administration in enterprises come to being A number of big changes originating from economic needs have been conducted in human resource administration The shift in the market economy in the practice of

human resource administration in Vietnam is the process changing from whole life

recruitment regime to contract labor regime, from the form of training and

development as a certain right of employees aimed at developing the human

resource to the direction of individual investment, from the average and seniority- based salary system planned and paid by the State to the pay system undertaken by

enterprises, from deep interference and severe examination of the State to business

activities of enterprises to enhancement of rights and responsibilities of directors and self-control right of factories Differentiation on human resource administration

in State-owned and private enterprises gradually reduce State-owned enterprises

and State cadres have been active, dynamic, self-independent instead of passive,

dependent on the State The advance of human resource administration is considered as one of important reasons that make enterprises work more effectively

However, challenges for the human resource administration in Vietnamese

enterprises are still very big, that is how to make the human resource administration effective When shifting to the market economy, almost all Vietnamese enterprises

need overcome main difficulties and weaknesses as follows:

- Incorrect awareness of a number of leader cadres and employees on the key roles of the human resource and the human resource administration for the success

unskilled labor or availability of labor with skills inconsistent to the existing

demand The labor productivity is low

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PDE Cte peroisanit réeVisrdigficult, the income is low and seems to be more

cifficult in the context of the increasing price This has deeply influenced the health, tae enthusiasm and working efficiency of employees

- The awareness to respect the law is not very high and fails to be severely observed

- The industrial work style and discipline is not reasonable

- The relationship between employees and the employee fails to be properly paid attention to The equal, cooperative relations between employees and the employee in enterprises have not been set up

- Some regulations on evaluation, appointment, reward and commendation, discipline, severance, etc, are slow to be renovated, inconsistent to new business

conditions of enterprises

As a result, enterprises need a human resource administration system with

aew policies on recruitment, training, wage payment, reward and commendation, evaluation consistent to new demands and approaches to the human resource

idministration in the market economy

1.1.4 Experiences and significance of human resource administration

From the practice of the human resource administration of some countries in

he world, some experience lessons can be drawn as follows:

- The business structure plays a specially important role to activities of the 1uman resource administration in enterprises: the human resource administration shall not be successful if there lack an appropriate business mechanism characterized by national culture and flexibility based on the needs, levels of the

1uman resource development

- In American, Singapore enterprises, human management rights lie on

›nterprises China, a country that has a transition economy nearly like Vietnam has deen implementing innovations in management in order to give human management

rights back to enterprises The State should only intervene in activities of enterprises

by law

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PDF Gee enessmists ehay etei@uccessful in Asian countries have applied many

policies and practice of the human resource administration similar to those in Western countries Nowadays, it is difficult to find out a success characterized by pure nature of American or Japan in the human resource administration style of big enterprises These styles have been changed to adapt to characteristics and needs of the human resource Thus, successful the human resource administration requires enterprises to study, predict

- It is necessary to understand changes in psychology, physiology, and the aeeds of employees in order to organize and carry out appropriate methods of encouragement, stipulation to the employees

- It is necessary to attach special importance to the training task of the human

‘esource and harmonious cooperation between the Government and enterprises in

his task: The Government has methods to encourage enterprises to invest for

:mployees, to carry out training programs, and to develop employees Enterprises 1ave training funds for employees, have close commitment between the trained veople and the guiding person, leaders of enterprises are highly responsible for

raining, development employees The training at workplace brings important neaning in providing the human resource with necessary skills for work

- Enterprises tend to downsize, reduce the official employees, increase the

1umber of unofficial employees with the aim of creating special concern for official

>mployees that are highly-qualified, hold important positions, at the same time iphold the flexibility in the internal labor market

- The average, subsidized salary regimes will gradually annul working notivation among employees Enterprises are responsible for creating healthy

competitive environment, luring and keeping good employees, stipulating them to

de active, enthusiastic, dynamic, creative, productive in work with high

achievements The State is responsible for proposing policies and assisting enterprise in job generation, esp for unqualified, unskilled labor or labor with weak health, avoiding cumbersome payroll, impossibility in firing employees that work

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inkéerWelp pwasadsolaesi diABSssive capitalization that causes unemployment to

a mass employees in State-owned enterprises

- Enterprises should apply measures to improve power for employees Despite completely different styles of the human resource administration, Japan and Singapore create favorable conditions for employees to be active in work and find out the best way to serve customers

1.2 CONCEPTS OF STRATEGY, STRATEGIC ADMINISTRATION AND HR STRATEGY

1.2.1 Concept of strategy:

The definition of strategy derived from the ancient Greek This term originated from the word “trategos” in the military denoting the roles of a

commander in the military, Then it developed in “The art of commanders”

Today there are many definitions on strategy, each of which differentiates depending on the opinions of authors Chandler defines strategy is “the

identification of targets, the long-term basic purpose of enterprises and the application of a series of actions as well as distribution of necessary resources to perform this target" (Chandler, A (1962) Strategy and Structure Cambridge,

Massacchusettes MIT Press)

Johnson and Scholes redefined strategy in the environment of a great number

of big changes: “Strategy is the long-term orientation and scope of an organization

in order to achieve competitive advantages for the organization through determining its resources in a changeable environment in order to meet the market demands and satisfy expectations of concerned parties” (Quinn, J., (1980) Strategies for change:

Logical Inscrementalism Homewood, Illinois, Irwin)

Through above-mentioned definitions, we can see phrases showing various dimensions in which need to be implied In the strategy with 5 P letters, Mintzberg generalized dimensions of strategic administration as follows:

Plan: a series of actions consistently set forth

Pattern: firmness on time-related behaviors may be intended or not intended

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PDF ẾitipweseofcrdeyWdist6fn an organization and its environment

Vision: manner to raise deep awareness about the world

Ploy: specific method to deceive competitors

The definition of strategy not only comprises a variety of dimensions, but also varies, depending on levels.The corporate strategy system may include: functional strategy, business strategy, global strategy, corporate strategy Based on the corporate business operation, the company will establish appropriate strategies, usually including 3 levels of strategy: Corporate strategy, business strategy and functional strategy The corporate strategy aims at corporate general purposes and scope The business strategy is linked to successful competitive methods in a

specific market Meanwhile, the functional strategy helps perform the corporate and business strategy effectively

1.2.2 Concept of strategic management:

We often consider strategy as a product of an appropriate planning lead by high-level administration but it is not everything In many cases, valuable strategies

can derive from the internal organization without prior planning

The strategic management is a decisive part in administration and actions in

regard to the long-term efficiency determination of a corporate Strategic administration includes continuous actions: environmental examination (both internal and external); building of strategy; implementation of strategy and

evaluation and control of strategy

Strategic administration originates from business policies and combines

long-term planning with strategy However, contrast to strategic administration,

business policies have a general administration orientation, mainly aimed at the

inside, taking care of integration in activities of an organization Meanwhile, strategic administration not only pays attention to the integration of internal functions like business policies but also emphasizes more on the environment and strategy Therefore, the term strategy is used to replace business policy (R.E Hoskisson, M.A Hitt, W.P.Wan, and D.Yiu, (1982), “Theory and Research in

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Stalebi€ ovapnesiAEntrSwWexsiow the Pendulum”, Journal of Business Vol25,

No.3)

Strategic administration comprises of tasks closely linked together:

- Firstly: to create a strategic vision to describe the future image of the

company, clearly stating where the company wishes to direct, how it desires to become? This will provide long-term orientation, clearly showing the image the

company wants to become in the future

- Secondly: To set up targets- to transform strategic vision in specific

implementation results the company has to achieve

- Thirdly: To build strategy to achieve desired targets

- Fourthly: To carry out and control selected strategies legally and

effectively

- Fifthly: To evaluate the implementation and readjust the vision, long-

‘erm orientation, targets, strategies or experience-based implementation, conditions

of change, ideas and new opportunities

Studies show that good application of strategic administration will help an

rganization get better productivity in comparison to organizations not carrying out

‘his process Interests of strategic administration have been tested in various 2rofessions, with various sizes of companies as follows:

- To clarify strategic vision for the company

- To concentrate more precisely on important things of strategy

- To improve awareness on fast change in the environment

(Wilson, (1994) “Strategic Planning Isn’t Dead — It changed” Long Range

Planning (8-1994))

1.2.3 Model of basic strategy planning:

1.2.3.1 Human resource development strategy:

Strategy is commonly considered as the results of a rational planning

procedure, carefully arranged, etc Up to now, administrators have introduced a

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nuthverCofatpatesio ip laneningertsdvls Strategy planning procedure can be divided in

5 main steps including:

1) To select main missions and targets of the company

2) To analyze the external environment to identify opportunities and challenges

3) To analyze the internal environment to identify strengths and weaknesses

4) To select strategies on the basis of searching core resources, possibilities

and capabilities and developing them to get rid of risks, make full use of opportunities from the external environment

5) To implement strategies The task to analyze the internal and external environment of the company and then select strategies is often viewed as building strategy The implementation of strategies includes the design of appropriate

organization chart and control system to put strategies into implementation

Exteraal analysis ` and establishmest glueooerkg potential

(opportunities & af strategies resources and core

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PDF Aljenapenssond agentes lave reviewed the process yearly, it is not sure that

the agencies could give a new strategy selection every year In many situations, the agencies have confirmed: that strategies and structures were completely sound Strategic plans which are created through this process usually cover 5-year periods and keep updated yearly In many agencies, results of the yearly strategic planning process are used as inputs for the budget planning in the next years Thus, the strategic planning helps orientating the resource distribution in an agency

Core missions and objectives:

The first step of strategic management process is to determine core missions

and objectives in an agency The core missions and objectives of an agency provide

a background for strategies establishment The mission represents vital reasons of

an agency as well as how to perform

Analysis of external environment:

The second step of strategic management process is the external operational environment analysis in an agency The objective of external analysis is the acknowledgement of opportunities and threats caused by the agency’s external

environment Three types of external environments are mutually related, including

industry environment, national environment and macro-environment

The analysis of industry environment assessment requires a competitive structure in the industry, including the competitive position of core agency and

competitors as well as the industry development

The analysis of national environment is to consider whether the national context where the company in operation, is supportive or not

The analysis of macro-environment consists of reviews with regard to macro-economic, governmental, legal, international and technological aspects

Analysis of internal environment:

The analysis of internal environment is the third task in the human resource administration process, with the aim of discovering weaknesses and strengths of an agency The methods enabling a company to obtain its competitive advantages and

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roleP bf Gonepaitsfesolixes VOXHMby company only), establishment resources and capabilities as well as sustainable maintenance of competitive advantages for company are discovered The Corporate strengths help it prevail in many aspects, meanwhile, its weaknesses can make its performance worse

Strategy selection:

The subsequent task is to specify strategic solutions in line with the corporate given factors including strengths and weaknesses, opportunities and challenges The comparison method among strengths and weaknesses, opportunities and challenges

is called the SWOT analysis Basically, the SWOT analysis aims to recognize

strategies orientated by the company, creating suitability and correspondence between resources and capabilities of the company as compared to demands arisen from its operational environment

The agency shall estimate a variety of solutions corresponding to possible

achievement capabilities in regard to key objectives It is possible that the

established strategic solutions are at business, functional or corporate levels that

enables the best and most matching existence for quick changes in the globally competitive environment

1.2.4 Human resource development strategy:

As an identical unit, what can each function affect the basic unit in an agency for formulating such competitive advantages? The nature of this competitive unit

shall be represented more clearly if we can specify roles of managers and how to show their effectiveness The functional strategies are orientating others for

improving the validity of basic operations on the corporate scale such as production, marketing, materials management, research and development, human resource

development, etc The human resource development strategy is at the functional level, contributing success to the corporate strategies

All activities related to products generation are performed by labors They invent and apply materials to make products If the human resource, so-called

“internal force”, is properly developed, it can create a series of strengths for

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difĐ&IÉ eeBdttieeso Nloveelàv3;SiÐðl human resource is a very important element in

generating competitive advantages Business and technological changes are gradually affirming that the human resource will be a representative resource which

is long-term and sole in the competitive advantages generation

The human resource has played more and more important roles in all operations of an agency, so the agency’s existence and development are much dependent on the human resource development

The human resource strategy is all models, approaches, policies and methods aiming at completing and improving the human resource quality, together with satisfying development requirements to an agency for each development stage

The human resource development are associated with the completion and

improvement of human resource quality, showing through the improvement of

technical level, professional knowledge, working skills, health and intelligence and

morality of employees

The human resource development consists of any scheduled action and process to affect learning capabilities for each individual as well as for the whole organization and community (Stewart 1996)

The human resource development is a strategic management method of training and development activities to obtain proposed objectives, with to assure the

capabilities utilization (such as knowledge, skill, behavior) of all staffs in an agency

or community to the utmost (Thomson& Mabey, 1999)

The human resource development can be understood as follows:

1 The scheduled conversion process

2 The process aiming at getting the capability development for individuals,

azencies, community and society

3 The process performed through sciences related to behavior, learning

organizations and studying community

Main contents of human resource development include:

1 Human resource administration

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2.PI]leéefưpiffs@f drư£es3i6hslọbwledge, skill through training and studying

3 Improving quality in work

When conducting the human resource development strategies establishment

as well as steps of other strategies formulation, the external and internal environments should be considered because these factors have greatly affected the human resource development strategies

Internal factors having influences on the human resource development strategies:

- Economic context

- Population / labor force

- Laws, regulations of State

- Culture — Society

- Competitors

- Science and technology

- Customer

- Authorities and corporate

Internal factors having influences on the human resource development strategies:

- Corporate missions/objectives

- Corporate policies/strategies

- Corporate culture

- Shareholders /trade union

The human resource development strategies require the consistent conduction between the human resource development and other corporate

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PDF Avawrpressaiptiided casiabilities creation factors of the company, the

advantage generated by human resource is regarded as an initial factor The human resource is also considered as a basic resource and a decisive nature of all ages The human resource is the most sustainable but the most difficult to change in all organizations

The capability created by human beings in companies is seen as capacity of staffs This capability is shown on aspects in Figure 1.4 The human resource contributes to the success of the company, particularly in high quality, excellent

services; renovation possibilities; skills in specific works; and productivity of staffs

They are key factors that bring success to organizations However, it is not true that all organizations can succeed in all aforesaid fields related to the human resource

and it is often focused on aspects corresponding to visions and strategies of the

The capability created by human beings is often sustainable since it can not

be established in a short time It is linked to the corporate culture These are

unwritten standards that become routine and conduct among members in the

organization The cultural aspects also include values highly appreciated,

proclaimed and methods shared by employees within the organization The first requirement of human resource improvement is the corporate culture, and this is not

easy to perform as well as costs money and effort It is obvious that the foundation

of aforesaid aspects often highlights the corporate culture and the establishment is

difficult in the short term, which is similar to other resources such as finance or technology

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HR strate

Corporate HR requirements resource

missions E> - Skills >

Corporate - Behaviors of employees development, ete

S trategies - Corporate culture HR operations

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P Difuea1Ip#:eBsfeelate® Yeli@ian resource and corporate strategies (Extract

resources from: www.khsdh.udn.vn/zipfiles/Sol1/1_dung%20doan%20gia.doc) According to the forward direction, it is shown that the corporate missions and strategies give human resources requirements such as necessary skills, working conduct of staffs, and factors related to the corporate culture as well as requirements

satisfied by the human resource So, the integration-based relationship between

human resource strategy and corporate strategy can be seen in Figure 1.5 When the human resource development creates core competences, it also provides input

foundations for strategy managers to plan new strategies, aiming at pursuing more challenging objectives

1.3.3 Human resource with types of business strategies

As we know, the business strategy is established in accordance with each

core commodity sector Each specific sector may be linked to products or services

with customers who are relatively independent, thus, such a commodity sector aims

at particular markets

The commodity sector needs to have suitable strategies which are called

business strategies These strategies answer questions given in the commodity

sector, that is how it can reach competitive advantages in the market

A common type of business strategies is the guide-to-cost strategy (obtaining the

competitive advantage through providing products and services at low costs for a corporate) This strategy is matching in the markets of highly price-based demand sensitivity

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1 Focusing on internal resources 1 Focusing on external resources

2 Seeking professional employees 2 Seeking highly-creative

Specializing, reducing power employees

3 Training according to intensive 3 Broad rights appointment for

4 Achievements review: focusing 4 Training on large scale and in

on the behavioral compliance short term

with works 5 Estimation based on performance

5 Loyalty-toward wage payment results

6 Reward directed towards outside

with competitive wage payment

from:www.khsdh.udn.vn/zipfiles/Sol1/1_ dung%20doan%20gia.doc )

The second type is one made by the differentiation, generating products and

services with various attributes and bringing about new added values for consumers

This business strategy is very favorable for markets having the low price-based

demand sensitivity

Each type of strategy often requires relevant human resources, so these combinations between each type and human resources are decisive to the success of

corporate objectives

Figure 1.6 describes how the human resource operations should be conducted

in accordance with each business strategy type

A company pursuing the guide-to-cost strategy will focus on seeking internal

human resources; for example, giving priority to children of employees who had

worked or are working in the company, or to friends or relatives This method can utilize staffs’ experiences and in such way, costs of training as well as the

adaptation period can be reduced for new staffs Meanwhile, the pursuit of the

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ciffebenGatian resateck reeqgWittsiaew factors, and talents to make differences, so expectations for internal staffs are not feasible and the human resource expansion is obvious Then, the company shall pay much attention to seeking solutions as well as Leeping talents at company

1.4 CONCLUSION OF CHAPTER I

Jeff Alef, the deputy general director and director of the human resource

department in the first-class bank in Chicago stated that there had been a period

when the fund resource had been used as a competitive advantage, but nowadays, the big fund mobilization capability became more easier He also added that there were some periods when the technology created an competitive advantage, even this vas easily obtained together with globalization and internationalization nowadays, ind sometimes, particularly in industries and financial services whose half-life was very long

Many scholars, and managers have also recognized that these changes in the nodern business environment have been creating unheard-of challenges as

:ompared to previous events encountered by a corporate Indeed, each change in the yUsiness environment increases more pressures to companies, which make them ilter and take the initiative in accessing to new technologies, products, and services ind satisfying customers’ increasing demands The added value from improvements

n determining competitive advantages have required agencies to attract, train and naintain their labor forces with the highest quality Chronologically and regardless

of environmental changes, people in a corporate must create capabilities by themselves to maintain their competitive advantages Based on the objective reality,

it is required that new approaches of human resource administration become the

strategic human resource administration, or exactly so-called the strategic orientation-based human resource administration Therefore, these approaches are

those setting up arguments that the human resource makes sustainable competitive

advantages

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PDF Krom ptesso rahaigsenherignificance of human resource is seen in the

current period In summary, an agency or entrepreneur who can exist and develop firmly or reach given objectives, shall give strategies related to the human resource development to meet requirements and changes in certain periods

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PDF Compressor Free VersioQ@HAPTER II

REAL SITUATION OF HUMAN RESOURCE IN POWER TRANSMISSION

COMPANY N°4

2.1 ABOUT POWER TRANSMISSION COMPANY N"4

2.1.1 General introduction:

The company, Power Transmission Company N°4 in the international

transaction, is located at N° 7, Highway 52, Truong Tho Ward, Thu Duc District,

Ho Chi Minh City Power Transmission Company N"4 is a State Owned Enterprise, which is a member directly under National Power Transmission Corporation (NPT), was established pursuant to the Decision No.!OSNL/TCCB-LD dated 04/03/1995 of Vietnam Ministry of Energy (on the basis of Power Transmission Department established on 15/09/1975)

Main operations:

+Managing operations and assuring

the power provision for the transmission network at 220 and 500kV voltages levels

safely, uninterruptedly and reliably

(including both lines and substations) in

areas of Southern provinces

Scope of operation:

Power Transmission Company N°4 has the total length of lines and power of

stations controlled most in the Power network system under Vietnam Electricity

Corporation With the operation scope throughout 21 southern provinces and cities with the highest rate of economic development and power demand in Vietnam, the

total of power transmission volume through Company networks occupies above

50% of the total power in the whole Vietnam

Management volume:

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PDF CarepttessPoWeeclYarsiabsion Company N°4 is managing transmission

network operations in the South with 51 lines of 220K V (3,182 km long in total) and 11 lines of 500K V (766 km long in total) There are 23 substations with 220K V for each and 8,530 MVA in total and 5 stations with 500KV for each and 5,576 MVA in total

2.1.2 Model of management system organization:

To assure the power network management and operation safely and uninterruptedly, the Company has given and performed a model of management system organization as follows:

2.1.2.1 Direct operation department for power networks:

+ Eastern Power Transmission N’1

+ Eastern Power Transmission N°2

+ Western Power Transmission

+ Highlands Power Transmission

+ Power maintenance and test facilities

+ Science and technology department

+ Technical safety and labor protection department

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+ Deputy Director of investment and construction

2.1.3 Chart of management and production system organization of Power Transmission Company N’4

2.1.3.1 Chart of management system organization:

Tiêu đề	Building the Human Resource Development Strategy for Power Transmission Company No.4 in the Period of 2010-2020
Tác giả	Nguyen Huu Nghia, Nguyen Van Bay, Doan Huu Thanh, Do Hai Nam
Trường học	Griggs Global Advanced Master of Business Administration Program, Griggs University
Chuyên ngành	Business Administration
Thể loại	Capstone project
Năm xuất bản	2009
Thành phố	Ho Chi Minh City

Định dạng
Số trang	151
Dung lượng	26,56 MB