Summary of Doctoral thesis of Economics: Innovation of state management for human resource development in Vietnam coal industry

The thesis proposed a number of solutions for state management agencies and focal points of the coal industry such as Vinacomin and DBCo to innovate and improve the SM of HRD in 2 Vietnam coal industry as well as to raise the efficiency and efficiency of the SM of HRD in the coal industry, aiming for the sustainable development (SD) of Vietnam coal industry in the future.

MINISTRY OF EDUCATION

AND TRAINING

MINISTRY OF PLANNING AND INVESTERMENT CENTRAL INSTITUTE FOR ECONOMIC MANAGEMENT

PHUONG HUU TUNG

INNOVATION OF STATE MANAGEMENT FOR HUMAN RESOURCE DEVELOPMENT IN

VIETNAM COAL INDUSTRY

- National Library, Hanoi.

Completed at:

CENTRAL INSTITUTE FOR ECONOMIC MANAGEMENT

Scientific supervisors: 1 Dr Nguyen Manh Hai

2 Assoc.Prof, Dr Mac Van Tien

Reviewer 1: Assoc.Prof, Dr Cao Van Sam

Reviewer 2: Assoc.Prof, Dr Vu Thanh Son

Reviewer 3: Dr Nguyen Van Hai

This thesis defense is witnessed by Institute-level Thesis Examination Council of Central Institute for Economic Management

at …… on ……, 2018

The thesis can be looked up at Libraries of:

- Central Institute for Economic Management;

INTRODUCTION

1 The necessity of the thesis topic

The most outstanding feature of production and Business Management (BM) in general, Human Resource Management (HRM) in Vietnam coal industry in specific is command of implementation and actions Specifically, Vietnam National Coal-Mineral Industries Group (Vinacomin) and Dong Bac Corporation (DBCo) are the management agencies who will set goals for branches in terms of business results, pricing, output, labour quota, wage and the like, meaning that enterprises are less independent, responsible and flexible in HRM State Management (SM) in Human Resource Development (HRD)

in Vietnam coal industry is being dispersed among the Ministry of Industry and Trade and Ministry of Natural Resources and Environment, the Ministry of Labor, Invalids and Social Affairs, ministries, branches and localities having head offices of Vietnam coal industry This makes a unit in the coal industry can be instructed and commanded by different ministries and localities through inconsistent guidelines; Therefore, coal units are confused to implement coal production and business and manpower management of Vietnam coal industry

There have been many domestic and foreign studies on HRD from the national, regional and group perspectives to corporate one Most of the research deal with the HRD from the perspective of corporate governance, with few research on HRD from a management perspective, and no research

on SM of HRD in Vietnam coal industry To solve the problem above, the

author selected topic: “Innovation of state management for human

resources development in Vietnam coal industry”

2 Purpose and meaning of the study of thesis topic

* Purpose of study: The thesis proposed a number of solutions for

state management agencies and focal points of the coal industry such as Vinacomin and DBCo to innovate and improve the SM of HRD in

Vietnam coal industry as well as to raise the efficiency and efficiency of the SM of HRD in the coal industry, aiming for the sustainable development (SD) of Vietnam coal industry in the future

* Theoretical meaning: The thesis supplements and clarifies the

rationale of state management of human resource development of the coal industry on issues such as concepts, objectives, contents, methods and tools of SM of HRD Moreover, it helps develop evaluation criteria and elements SM of HRD of the coal industry At the same time, it identifies and assesses the impact of the factors on the SM of HDR of the coal industry in the context of deep international integration today

* Practical meaning: The thesis provides scientific arguments for

proposing a number of solutions to relevant SM agencies and local administrations having their headquarters in raising the efficiency and effectiveness of SM of HRD of Vietnam coal industry to meet the requirements of coal production and trading and SD of Vietnam coal industry

3 Structure of the thesis

Apart from introduction, conclusion, appendix and references, the content of this thesis includes 4 chapters

Chapter 1: Overview of state management studies on human resource

development of the coal industry

Chapter 2: Theoretical basis of state management for human

resources development of coal industry

Chapter 3: Current status of the state management for human

resources development in Vietnam coal industry

Chapter 4: Orientation and solutions innovation of state management

for human resource development of the Vietnam coal industry

CHAPTER 1: OVERVIEW OF STATE MANAGEMENT STUDIES ON HUMAN RESOURCE DEVELOPMENT OF THE COAL INDUSTRY 1.1 Overview of research published at domestic and abroad related

to thesis topic

1.1.1 Overview of foreign studies

The researches on State Management for HRD in the coal industry is approached from macro perspective and addressed the following issues:

Firstly, build a well-educated and appropriate HR through training

and HRD from the industry to country level

Secondly, HR as a source of capital, if used well, will greatly

contribute to the development of industries and countries

Thirdly, SM of HRD in the coal industry of countries in the world

with developed mining industries such as Germany, China and Indonesia focus on issues such as forming strategy HRD, ensuring labor safety and

SD of the coal sector of the country

1.1.2 Overview of research in the country

First, HRD in enterprises researches and proposes solutions to HRD

in enterprises The main researched subjects are technical workers and managers at State-owned enterprises, small and medium enterprises in Vietnam, electricity enterprises, textiles and garments, high quality human resources, managers at groups and corporations with State capital

Secondly, the SM of HRD of the coal industry includes studies on

attracting HR, motivating people to work, analyzing and assessing the HRD of coal industry

1.1.3 The issues of the thesis have not been researched and solved in publicized studies

- Most of previous studies on HRD from the perspective of corporate management, a few research from perspective of SM for HRM

- There is no study on the concept, role and assessment criteria of state management for HRD in Vietnam coal industry

- There is no study on the contents, methods and tools of SM for HRD in Vietnam coal industry

1.1.4 Critical issues will be researched and solved in the thesis

Firstly, the development of the HR of the coal industry needs to be

approached from the perspective of SM of HRD at the sectorial level

Secondly, the thesis clarifies the practical basis of SM for HRD in

Vietnam coal industry

Thirdly, the SM of HRD in Vietnam coal industry needs to be

managed in a way that is effective, consistent and highly sustainable

1.2 Directional resolution of researched issues in the thesis

1.2.1 Research objectives of the thesis

The thesis proposes several innovative solutions to SM for HRD of Vietnam coal industry that help to enhance efficiency and effectiveness

of SM for HRD towards sustainable development of Vietnam coal industry in future

1.2.2 Research questions of the thesis

Firstly, what are the research perspective, content, method, used

tools, impact elements, and assessment criteria and indicators of SM for HRD on Vietnam coal industry?

Secondly, what are issues of SM for HRD on Vietnam coal

industry till 2025

Thirdly, what we need to innovate SM for HRD on Vietnam coal

industry till 2025 to achieve sustainable development of human resources as well as Vietnam coal industry

1.2.3 Research subjects and scope of the thesis topic

- Research subjects: theoretical and practical issues of SM for

HRD in Vietnam coal industry

- Scope of work:

+ Content: HRD in Vietnam coal industry follows target approach

SM of HRD in Vietnam coal industry follows management process: Strategic planning; Policy issuing; Policy implementing; Inspecting; and testing HRD in Vietnam coal industry

+ Scope: The thesis majorly studies coal exploration, investigation,

construction, investment, and exploitation enterprises; and coal screening and processing enterprises managed by Vinacomin and DBCo - Defense Ministry

+ Time: Real circumstances of SM of HRD of Vietnam coal industry

in the period 2010-2016, secondary database of 2016 and 2017 Several solutions to SM of HRD of Vietnam coal industry till 2025

1.2.4 Research approach and research method of the thesis

1.2.4.1 Theoretical analysis framework of the thesis

Research process:

Figure 1.1 Analysis framework diagram of the thesis

1.2.4.2 Approach of research subjects

SM of HRD of Vietnam coal industry follows management process: Strategic planning; Policy issuing; Policy implementing; Inspecting; and Testing HRD of Vietnam coal industry

1.2.4.3 Research method; collecting and processing information and materials

* Research method: The author uses several research methods

namely: descriptive statistics, exploratory factor analysis (EFA),

Topic, on line, policy, war of HRD in Vietnam coal industry

Inspection, testing, supervision

in HRD

Policy, legal framework

in HRD

Organization of implementation

Limitations, causes of limitations

Solutions

of SM for HRD in Vietnam coal industry

Tasks and requirements on

SM for HRD in Vietnam coal

professional methods

* Collecting secondary information and materials: Pulished statistics

database, reports of management agencies as the Governemnt, General Statistics Office of Vietnam, Ministry of Foreign Affairs, Vinacomin, DBC – Defense Ministry, Vietnam Coal Enterprises

* Collecting primary information and materials:

- Survey: Respondents are Vietnam coal companies, specifically 92

enterprises questionnaires devided into 2 groups: (i) Managers at Vinacomin and DBC; (ii) Head of Administration Department – HR Department of enterprises

- Data processing: Collected and investigated data is analyzed by

SPSS 20.0 software and comparatively analyzed by excel

- Measurement scale formation and accreditation: To measure

implementation level of 18 elements based on 04 assessment criteria of SM for HRD of Vietnam coal industry, the author uses the identification scale and Liker scale with 05 levels that fits to each specific criteria To indentify credit and suitable level of scale, the author uses Cronbach Anpha coefficient of statistics analysis of IBM SPSS Statistics 20.0 software The majority of researchers agreed that Cronbach Anpha factor at 0.7 or higher

is usable, but Cronbach Anpha value at 0.63 or higher (DeVeliss, 1991) is usable in SM for HRD of Vietnam coal industry that is a new concept

CHAPTER 2 THEORETICAL BASIS OF STATE MANAGEMENT FOR HUMAN RESOURCE DEVELOPMENT OF COAL INDUSTRY 2.1 Human resources of coal industry, HRD in the modern market economy and international integration

2.1.1 Human resources of coal industry

2.1.1.1 Concept and features of human resources in coal industry

- Concept: HR of coal industry is the entire workforce in the coal

enterprises at a certain time, which is expressed by quantity, proportion, and quality and working ability of each employee contributing to common goals

of coal enterprises

- Features: Coal industry use a large number of employees; direct

employees account for a major proportion, the majority of labour are male under 40 years old Coal employees often work underground in deep level and hard working environment which harms to their health as they frequently engage to such harmful sustances as methane and carbon At the same time, manufacturing locations of coal enterprises are mainly mountainous and remote ares with poor transportaion It is true that coal exploration must be accompanied with the environmental protection

2.1.1.2 Human rerource market in coal industry

Human resource demand in coal industry: HR demand tends to

decrease due to competetion pressure leading to reduce labour to boost productivity HR supply is rare in the circumstance of intensively international integration and touch compatition of well-qualified, trained, and management

labour HR market of coal industry in the context of intensively international

integration has 02 basic features, which are the shortage of management labour and well-qualified workers with international standard tranining (supply is less than demand), and the redundancy of indirect workers and direct workers who are fail to meet international standards (supply greater than demand)

2.1.2 HRD of coal industry in the condition of modern market and international economic integration

2.1.2.1 Concepts

- Modern economic market: is the economy of humanism,

competition, equality that motivates capable people as well as supports incapable ones to share opportunities to everyone

- International economic integration: is the process that countries do

activities to enhance cohesion among countries based on shares of benefits, goals, value, resources, and power as well as comply common rules within international institutions or orgranisations

- HRD of coal industry in the condition of modern economic market and international economic - economic integration: is the process to ensure

enough quantity, reasonable scale, quality improvement of human resource,

productivity improvement to meet requirements of manufacturing and current and future business activities; towards sustanable development and standardization of the global coal industry

2.1.2.2 Requirements for HRD of coal industry in the condition of modern economic market and international economic - economic integration

- Training human resource to meet social needs, and regional and international standards

- Enhane the quality and efficiency of training, using coal labour is the piority

2.1.2.3 Content, method of HRD in the coal industry in the condition of modern economic market and international economic integration

a Content of HRD in the coal industry

- Ensure human resource quantity

- Rationalize human resource structure

- Enhane human resource quality

- Improve productivity

b Method of HRD in the coal industry

- Develop labour market of the coal industry

- Invest in HRD in the coal industry

- Expand and strengthen connection among coal industry with enterprices inside and outside the industry in HRD

- Enhance management capability of HR in the coal industry

- Develop training facilities of coal industry to meet requirements of international economic integration and 4.0 industrial revolution

2.2 State management for human resources development in the coal industry

2.2.1 Concepts and some theories of SM for HRD in the coal industry

- Concept: SM for HRD in the coal industry is impact of the state on HR

of the coal industry to create sufficient workfoce in terms of quantity, reasonable structure, high quality and productivity; employees works in a dependent, creative ways and have long-term commitment to the sector, towards sustanable development of HR

- Basic issues of SM for HRD in the coal industry:

+ Management targets: High productivity; independent and creative

employees, long-term commitment to the coal industry and sustainable development of the national coal industry

+ Management subjects: Ministries and its agencies directly managing

the national coal industry Management objects: Economic Groups and

Corporations of coal enterprises

+ Management content: follows process of SM for HRD in the coal industry + Management method: Management subjects affect management objects

through some basic methods namely: Economic method, administrative method, educational method During implementation, they combine and apply flexibly metioned methods to aquire the highest efficiency and effectiveness

+ Management tools: Management subjects deploys 04 tools: legal, plan,

policy, and national assets

2.2.1.3 Several theories of SM of HRD

a Theory of administrative managment for public orgranisations

Henry Fayol (1841-1925, Istanbul, Turkey) is the author of theory of administrative management in France, who is the pioneer of modern management theory H.Fayol supposes that administrative management is projection, plan, organisation, control, combination and examination The theory is applied to research on SM for HRD in the coal industry

b Theory of modern management of Kaizen of Masaaki Imai

Masaaki Imai (1930-now, Tokyo, Japan), Kaizen means “Innovation, improvement” In Kaizen, all business activities must lead to customers’ incremental satisfaction The theory will be applied to research on SM for HRD

in the coal industry

2.2.2 Content, method of SM for HRD in the coal industry

2.2.2.1 SM content for HRD in the coal industry

SM for HRD in the coal industry is a process including: (i) Strategic orientation of HRD in the coal industry; (ii) Build and issue legal framework for

HRD in the coal industry: Policy of attracting and recruiting labour for the coal industry, policies of training and HRD of the coal industry; (iii) Implement HRD

of coal industry; (iv) Inspection, examination, supervision, management HRD in the coal industry

2.2.2.2 Method and tools of SM for HRD in the coal industry

a Administration-organisation method: decisions are specified in the

forms of regulations and rules of organisations relating to attracting, recruiting, using, treating and training and HRD for coal enterprises

b Economic method: The State concretized methods through policies

such as wage policy for furnace workers, emulation-reward policy for mining workers, national HRD policy, HRD policy for coal industry

c Psychological-educational method: Propagandizing and analyzing to

help people understand difficulties, challenges ,and opportunities to overcome together current and future difficulties of national coal industry

2.2.3 Innovate State management for HRD in the coal industry

2.2.3.1 Concept of innovation of SM for HRD in the coal industry

Innovation of SM for HRD of coal industry is creative changes of methods or tools of management subjects and management objects to enhance efficiency and effectiveness of SM; improve productivity, quality and effectiveness of HR in the coal industry

2.2.3.2 Inevitability of innovation of SM for HRD of Vietnam coal industry

- SM for HRD is dispersed among functional and managing agencies, among Ministry of Labor, Invalids and Social Affairs, Ministry of Education and Training, Ministry of Health, and Ministries and localities having offices

of Vietnam coal enterprises

- Many legal regulations are issued, but less consistent and low enforcement

2.2.4 Assessment criteria of SM for HRD of coal industry

Applying to research objects and output model of manufacturing and business activities of Vietnam coal industry, assessment criteria and indicators

of SM for HRD of Vietnam coal industry

Table 2.1 Assessment criteria of SM for HRD of coal industry

Criteria Sign Assessment criteria

HL4 Policy follow extent of attracting and recruiting HR HL5 Policy follow extent of labour safety and protection HL6 Policy follow extent of assessment policy of work commitment, emulation, and rewards for employees HL7 Commitment extent of wage and incentive policy

Efficiency

HQ1 Productivity completion extent compared to plan HQ2 Manufacturing and business completion extent compared

to plan HQ3 Ability of bringing benefits when doing HRD to the development of coal industry

HQ4 Ability of saving costs of Manufacturing and business activities of coal industry after applying HRD activities

2.3 Elements impacting on effectiveness and efficiency of SM for HRD

of coal industry

The coal industry does business in an market economy and intensively international integration; SM for HRD of coal industry is affected by 02