LV Thạc sỹ_Evaluation of the effectiveness of human resource training and development at Deloitte vietnam

NATIONAL ECONOMICS UNIVERSITYFACULTY OF FOREIGN LANGUAGES ENGLISH FOR BUSINESS DEPARTMENT EVALUATION OF THE EFFECTIVENESS OF HUMAN RESOURCE TRAINING AND DEVELOPMENT AT DELOITTE VIETNAM..

NATIONAL ECONOMICS UNIVERSITY

FACULTY OF FOREIGN LANGUAGES ENGLISH FOR BUSINESS DEPARTMENT

EVALUATION OF THE EFFECTIVENESS OF HUMAN RESOURCE TRAINING AND DEVELOPMENT AT

DELOITTE VIETNAM

NATIONAL ECONOMICS UNIVERSITY

FACULTY OF FOREIGN LANGUAGES ENGLISH FOR BUSINESS DEPARTMENT

EVALUATION OF THE EFFECTIVENESS OF HUMAN RESOURCE TRAINING AND DEVELOPMENT AT

DELOITTE VIETNAM

I have taken efforts in this research However, it would not have been possible without the kind support and help of many individuals and organizations I would like

to extend my sincere thanks to all of them.

I am deeply grateful to my supervisor, Ms … for her continuous instructions and her useful advice on the report I could never have completed and improved my writing without her valuable comments and feedbacks.

I am also highly indebted to CMBD team and HR Department of Deloitte Vietnam Company Limited for spending time explaining and sharing with me realistic experience at work and precious opinions over my research topic Especially, I would like to express my special gratitude to Ms…, Ms … from HR Department for providing necessary information regarding the project.

Last but not least, an honorable mention goes to my family and friends for their understandings and supports during my internship.

Table of Contents

Acknowledgement

Abbreviation i

List of Figures ii

Executive Summary iii

INTRODUCTION 1

CHAPTER I : INTRODUCTION OF DELOITTE VIETNAM COMPANY LIMITED 4

1.1 Overview of the company 4

1.1.1 History of Deloitte Vietnam 4

1.1.2 Vision Statement and Values 4

1.1.3 Major services 5

1.1.4 Organization Chart 6

1.2 Key terms definition 7

CHAPTER II: THEORETICAL BACKGROUND 8

2.1 Overview of Human Resource Management and Human Resource Training and Development 9

2.1.1 Definition of Human Resource Management 9

2.1.2 Human Resource Training and Development 10

2.2 Importance of Human Resource Training and Development in business 11

2.3 Methods of Human Resource Training and Development in business 12

2.4 Process of Human Resource Training and Development in business 13

2.4.1 Human Resource Training process model 13

2.4.2 Kirkpatrick’s four level evaluation model 14

CHAPTER 3 : HUMAN RESOURCE TRAINING AND DEVELOPMENT AT DELOITTE VIETNAM 16

3.1 Current Human Resource Training and Development programs at Deloitte Vietnam 16 3.1.1 General Training and Development programs 16 3.1.2 Functional Training programs 17

3.1.3 Policy to support employees achieve professional certificates 17

3.2 Process of Training courses at Deloitte Vietnam 18

3.3 Evaluation of Human Resource Training and Development at Deloitte Vietnam 18

3.3.1 The effectiveness of Human Resource Training and Development on employees 19

3.3.2 The effectiveness of Human Resource Training and Development on the company 23

3.3.3 Some shortcomings of HR Training and Development at Deloitte Vietnam 26

CHAPTER IV: RECOMMENDATIONS 29

4.1 Planning and responsibilities of functions 29

4.2 Time and schedules 29

4.3 Training evaluation 31

CONCLUSION 32 APPENDIX

REFERENCES

HR Human Resources

HRM Human Resource Management

HR T&D Human Resource Training and Development

CEO Chief Executive Officer

CFO Chief Financial Officer

CPA Certified Public Accountant

ACCA Association of Chartered Certified Accountants

MINTA Master of International Accounting

List of Figures

Figure 1: Organization Chart 7

Figure 2 : Advantages and disadvantages of On-the-job Training and Off-the-job Training 12

Figure 3 : Number of training courses employees have enrolled at Deloitte 19

Figure 4 : Employees’ evaluation of their compatibility to the job’s requirements20 Figure 5 : Data of professional certificates at Deloitte Vietnam 22

Figure 6 : Employees’ evaluation of Deloitte HR Training and Development policy 23

Figure 7 : Business results from 2009-2011 23

Figure 8 : Deloitte Vietnam’s turnover rates 25

Figure 9 : Factors of training courses that need improvement 27

Figure 10 : Diagram of responsibilities and authorities 29

Executive Summary

Deloitte Vietnam is the first Vietnamese independent auditing company.Together with its reputation and prestige in the financial service sector, the companyhas put great effort to improve the development policy for employees This researchpresents a brief introduction of Training and Development policy of Deloitte Vietnam,with the aim of evaluating the effectiveness of Training and Development activities ofDeloitte

By appropriate method of analyzing figures and information collected fromquestionnaires, interviews and company’s data, it can be concluded that the HumanResources Training and Development policy at Deloitte Vietnam is quite successful.First, thanks to the development policy, employees are very confident in theirprofession, shown by their attitude toward the training courses and the superiors’remarks over their working performance The second benefit that employees gain fromDeloitte’s policy is the support in obtaining professional certificates which are veryuseful in their long-term career Regarding the company, Training and Developmentpolicy affects positively to the business results over years Because of the developmentprospect at Deloitte, employees are more loyal to the company resulting in reducedturnover rates Finally, the opportunity to attract talents is expanded when people knowmore about the Training and Development policy of Deloitte

However, this research has found out some drawbacks of the training courses atDeloitte including the lack of evaluation steps, the illogical time setting for trainingcourses and some shortcomings in the planning process On the basis of these findings,

it is recommended that Deloitte Vietnam should focus more on the evaluation oftraining results The company needs to establish a more specific and appropriateschedule so that all employees can take full advantage of training courses that Deloitteoffers them

INTRODUCTION

[[What is the most important factor in a business/organization? Human Resource(HR) may be the answer of most business leaders As the world is changingcontinuously, there always been the need for a standardized labor force, which willkeep up with changes, and be able to bring success to the business Accordingly, acompany which manages the HR well will have better chance to reach its goal Among

a variety of contents of HR Management, Training and Development is one of the mostimportant HR Training and Development not only helps to improve the quality ofemployees, so that they can contribute significantly to the company, but alsoconsidered as a motivation because it satisfies the self-actualization need of people (Maslow, 1943) Today, a good HR Training and Development policy is as important as

a high salary in attracting talents to a company

Rationales

During my internship at Deloitte Vietnam Company Limited, a financial servicecompany, I was most impressed by its comprehensive HR Training and Developmentpolicy Each year, a large number of fresh graduates from well-known universitiescompete to be recruited by Deloitte Thanks to the support of the company, manyemployees achieve certificates during their career and become professional in theirfields, making Deloitte a trustworthy consulting firm That aroused the question: Towhat extend do Training and Development contribute to the development of acompany?

The research titled “Evaluation of the effectiveness of Human Resource

Training and Development at Deloitte Vietnam” with useful sources of informationwould possibly draw valuable lessons and contribute to the development of HRactivities of Vietnam enterprises, especially in the financial sector

Research objectives

This research has four main purposes The first one is to summarize the theoryrelated to HR Training and Development Secondly, I want to provide information

about the Training and Development policy and implementation of training courses atDeloitte Vietnam An important aim of the research is to evaluate the effectiveness ofDeloitte’s HR Training and Development Last but not least, this paper will identifysome shortcomings and propose recommendations to improve the quality of Deloitte’s

HR Training and Development

 How effective are the Human Resource Training and Development programs?

 How can Human Resource Training and Development programs be improved?

Methodology

Primary and secondary sources are used as methods of data collection

Firstly, a survey will be conducted among 50 Deloitte Vietnam employees in

Hanoi Office to collect primary data The survey will include both open-ended andclosed questions, which encourage respondents to answer correctly, easily andcompletely The questionnaire is designed to collect employees’ opinions about thetraining policy of Deloitte and the specific programs they have attended In addition,

in – depth questions are also used in interviewing 10 employees at managerial leveland above The interviews are particularly helpful for gathering opinions from themanagement level about the Training and Development policy at Deloitte Secondly,

secondary data is the information collected from sources like books, previous reports, web pages and other printed articles…Besides, with the permission from the HR

manager , data can be collected including Training policy, Training evaluation form,Turnover rate, Training results, Financial Statements, rate of employees havingobtained Professional Certificates during their career at Deloitte, etc….).Furthermore, I also extract conclusions from information I have withdrawn via

informal talks with some employees during coffee and lunch time and observationduring my on-going internship as well.

Scope of research

The research takes place within HR Training and Development program and therelated activities in Deloitte Vietnam Company Limited ’s Hanoi Office Data will becollected in the period 2009 – 2011

CHAPTER 1: INTRODUCTION OF DELOITTE VIETNAM COMPANY

LIMITED 1.1 Overview of the company

1.1.1 History of Deloitte Vietnam

The Vietnamese independent audit history commenced in 1991 when the firstaudit company, Vietnam Auditing Company (VACO) - the precursor of DeloitteVietnam was established on May 13, 1991 The 20-year journey of Deloitte Vietnamthus matches the 20-year history of Vietnamese independent audit

In 1992, VACO joined hands with Deloitte Touche Tohmatsu International(DTT), to focus on expanding levels of international expertise and technical trainingfor Vietnam This cooperation was later followed by an important turning point inDeloitte Vietnam’s development through establishment in 1995 of an audit jointventure company called VACO Deloitte This joint venture company initiated theintegration of the company and signaled a new direction for the Vietnameseindependent audit sector

Two years later, VACO Deloitte once again changed its operating form andbecame an official member of Deloitte This change transformed a local audit companyinto a member and representative of an international auditing and consulting firm After becoming an official member of the world’s leading audit and consultingfirm, Deloitte Vietnam has continuously recorded the highest rate of growth amongstaudit companies in Vietnam

After 20 years of continual development and success, Deloitte Vietnam nowcommences another journey where there are opportunities as well as challenges ahead.The company will focus even greater effort to achieve more success in the future andprovide clients with the best value added auditing and consulting services A key part

of this approach is linked to the "AS ONE" strategy -“One Deloitte” that DeloitteVietnam is pursuing with other Deloitte member firms worldwide

1.1.2 Vision Statement and Values

Deloitte’s vision is to be the Standard of Excellent and the first choice of the

most sought-after clients and talent This vision is expressed fully by the core

values/principles that are used to unify Deloitte people Those core values are :

Integrity; Outstanding value to markets and clients; Commitment to each other andStrength from cultural diversity

1.1.3 Major services

Deloitte Vietnam with over 600 staff located in both Hanoi and Ho Chi Minh Cityoffices delivers value –added services in Enterprise Risk Services, Consulting,Financial Advisory, Tax and Audit to the private and public sectors across a wide range

of industries The services provided to clients can be classified as:

 Enterprise Risk Services – ERS

ERS practice offers a comprehensive array of services designed to help clientsunderstand business risks, determine acceptable levels of exposure, providemeasurement of the risk environment and compliance levels ERS include: InternalAudit; Data Quality and Integrity; General Computer Controls Assessment;Controls Assurance; Enterprise Risk Strategy and Analytics; Co-sourcing; RevenueAssurance; Operational Risk Management

 Consulting Services

Deloitte Vietnam offers consulting services mainly in the following fields: Strategyand Operations; Finance Transformation; Technology; Human Capital and As One

 Financial Advisory Services

Deloitte offers a comprehensive range of multi-disciplinary advisory capabilities toclients, including corporate finance, transaction support, valuation, finance raising,tax structuring and planning, and corporate restructuring The sector focus (thereare 8 industry specializations e.g Energy&Resources, Financial Services, RealEstate, Manufacturing, Public Sector, Technology&Media…) brings industryexpertise to clients, in any part of the whole range of business sectors, as well as theGovernment

 Tax Services

The Tax practice comprises specialists having an in-depth knowledge of tax rulesand regulations, as well as of the market environment, assisting clients to optimizetheir tax burden The Tax Services include : Tax Advisory and Planning;International Tax Structuring; Corporate Income Tax Services; Transfer Pricing;Tax Compliance Health-Check Services and Customs and Indirect Tax

 Audit Services

This is the most famous service of Deloitte Each year, Deloitte provides auditingservice for approximately 300 listed companies in Vietnam as well as state – ownedcorporations and groups (figures from Clients and Markets Function) in which themost remarkable clients are PetroVietnam (PVN), Vietnam Electricity Group(EVN), Vietnam Airlines… The Audit Services include : Statutory andInternational Standard Audits; Financial Statement Transformations; FinancialReporting; IFRS Conversion Services; Review of Accounting Systems and InternalControls and Accounting Advisory Services

1.1.4 Organization Chart

The total number of employees is 612, in which, 348 employees in Hanoi Officeand 264 employees in Ho Chi Minh City Office (both in the client functions and non-

client functions) There are currently 424 employees in the Audit Function, 94

employees in ERS Function, 18 employees in Financial Advisory Function, 25 in TaxFunction The remaining 51 employees belong to other functions, i.e the supportingfunctions (see Appendix 1- Headcount of Deloitte Vietnam)

Figure 1: Organization Chart

( Source : HR Department, Deloitte Vietnam)

1.2 Key terms definition

Big 4: the four largest international professional services networks in accountancy and

professional services, including PricewaterhouseCoopers (PwC); Deloitte Touche Tohmatsu (Deloitte); Ernst&Young (E&Y) and KPMG

Partner: The highest professional level in an auditing company

Functional Leader: Leader of a function at Deloitte, e.g Audit Leader, Tax Leader,

Learning Leader…

Learning Secretary: The HR employee in charge of keeping record of all learning

activities

Management Board Client work Non-client work

Audit Function Tax Function ERS Function FAS Function

Counseling: name of the program used as an on-the-job training method at Deloitte Technical Training: the process of teaching employees how to more accurately and

thoroughly perform the technical components of their jobs

“As One”: Deloitte’s Global Strategy

CEO: Chief Executive Officer

CFO: Chief Financial Officer

CHAPTER 2: THEORETICAL BACKGROUND 2.1 Overview of Human Resource Management and Human Resource Training and Development

2.1.1 Definition of Human Resource Management

Human Resources (HR) is all the mental and physical abilities which are used inthe process of production and business It is also considered as the labor power ofpeople –which is one of the most valuable resources among different resources ofproduction in a company HR consists of all employees working for a company Today,

HR plays a vital role in the organization’s strategic planning process As companiesreorganize to gain competitive edge, HR can help companies deal with a fast-changingcompetitive environment and the greater demand for quality employees

There are many definitions of Human Resource Management (HRM) originatedfrom a variety of viewpoints of scholars and experts This paper will only mentionthree definitions, which can be seen as the most appropriate ones for the research.First, HRM consists of all the activities in an organization to attract, develop, use,evaluate and maintain an appropriate labor force for the demands, both in quality andquantity, of an organization (Nguyen Van Diem & Nguyen Ngoc Quan, 2007) According

to this definition, HRM is a vital part of Business Management, which will leads to thesuccess or failure of a business

In another definition, HRM is a core competency of organizations (Mathis,R.L &Jackson,J.H., 2011) A core competency is a unique capability that creates high valueand differentiates an organization from its competitors HRM is designing managementsystems to ensure that human talent is well used to accomplish organizational goals.Whether employees are in big company with thousands of jobs or a small non profitagency, managing people in an organization is about more than simply administering apay program, designing training, or avoiding lawsuits

Lastly, K.Aswathappa (2005) cited three other definitions and concluded bygiving his opinion: “HRM refers to a set of programs, functions and activities designed

and carried out in order to maximize both employee as well as organizationaleffectiveness.”

In order to reach the organization’s goals, HRM must perform certain functions.Although the contents of functions of HRM differ from one organization to another,this research found out that the following functions are fundamental ones: 1.humanresource planning, 2.employee relations 3 recruitment and selection 4 training anddevelopment 5 appraisal and assessment 8 salary and compensation

2.1.2 Human Resource Training and Development

“In most organizations, both large and small, there is little pressure from top management to prove that the benefits of training outweigh the cost Many managers

at high levels are too busy worrying about profits, return on investment, stock prices, and other matters of concern to the board of directors, stockholders, and customers They pay little or no attention to training unless they hear bad things about it.” (KirkPatrick,D.L & KirkPatrick,J.D, 2006)

What is the purpose of training and development in a company? No one can besure that he/she will definitely keep up with all the tasks given in a new job or newcompany no matter how brilliant he/she is Furthermore, the continuously change of allrequirements in a position to adapt well with international development is anotherchallenge That is why we need Training and Development

“Training is the learning activity that helps employees to complete their roles more effectively by improving their knowledge and skills.

Development activities bring employees skills and ability so that they can work in another duty/position suitable with the development strategy of an organization.” ( Nguyen Van Diem & Nguyen Ngoc Quan, 2007)

HR Training and Development are processes that attempt to provide an employeewith information, skills, and an understanding of the organization and its goals.Development and training activities are designed to help a person continue to makepositive contributions under the form of good performance HR Training andDevelopment are top priorities for many companies, leading to the success of business

2.2 Importance of Human Resource Training and Development in business

Regarding the roles of HR Training and Development (HR T&D) , Dr NguyenNgoc Quan stated three reasons making this activity necessary in businesses

“First, HR T&D helps employees meet the job requirements, in other words, meet the demand of existence and development of an organization Second, HR T&D satisfies the need of learning further of employees Last, HR T&D is the strategic solution to create competitive advantages of businesses.” ( Nguyen Van Diem & Nguyen Ngoc Quan, 2007).

However, the above conclusions are too general The specific roles of HR T&Dcan be classified into 2 categories: the benefits of T&D for employees and the benefits

of T&D for organizations development)

HR T&D creates greater job satisfaction and morale among employees.Employees take more satisfaction in a job when they know how to do it well If theyare not sure how to do, they will be frustrated and dissatisfy with their work Besides,the combination of job satisfaction and peer acceptance leads to improvement of self-esteem Training activities also help employees to enhance their skills leading to higherworking performance Employees who demonstrate excellent performance at one level

in an organization often have the opportunity to get promotion Another benefit foremployees that can easily recognize is the increase of employee motivation Ifemployees receive a good policy to develop their career, they will contribute more tothe organization

In addition, HR T&D also brings many benefits to the organization Employeeswho are well trained will be more productive than the ones who learnt by mistakes andtrials, and the result is increased productivity for the company Besides, a standardizedtraining system will result in higher levels of customer satisfaction: employees are able

to take care of customer properly and have better skills to solve customers-relatedproblems Improvement of quality: standards are met when people know what theorganizations expect from them Moreover, after being trained and have mastered thebackground knowledge, employees will be able to create realistic and applicable ideas,thus increase the innovation in strategies and products of the company Anotherimportant thing is the reduction of employees’ turnover rates, because people tend to

be more loyal with the organization which supports their development Last but not

least, HR T&D makes the enhancement of company’s image and competitiveness,comparing to other rivals.

2.3 Methods of Human Resource Training and Development in business

Training methods are categorized into 2 groups: On-job training and Off-

the-job training (Nguyen Van Diem & Nguyen Ngoc Quan, 2007) On the the-job training:refers to methods that are applied in the workplace, in which the employees areactually working Off the job training occurs when employees are taken away fromtheir place of work to be trained

Figure 2: Advantages and disadvantages of On-the-job training and Off-the-job

- Trainees acclimatize more rapidly

- A specialist instructor enables delivery of high quality training

- Wider range of facilities and equipment are available

- The trainee can learn the job in planned stages

- It is free from the pressures and distractions of companylife

- Easier to calculate the cost

Disadvantages - Possibility of poor

instruction and insufficienttime

- Trainee may be exposed tobad work practice

- A large amount of spoiled work and scrap material

- Can result in transfer of learning difficulties

- Can be more expensive

may be produced

- Valuable equipmentmay be damaged

Methods - Orientation training

- Job-instruction training

- Apprentice training

- Internship and assistantships

- Job rotation

- Coaching

- Day release (employee takes time off work to attend a local college or training centre)

- Distance learning / evening classes

- Block release courses

- Sandwich courses

- Sponsored courses in highereducation

- Self-study, computer-based training

(Source: Nguyen Van Diem & Nguyen Ngoc Quan, 2007)

2.4 Process of Human Resource Training and Development in business

2.4.1 Human Resource Training process model

The process of HR Training& Development was described clearly in a diagram(Harris, D.M & DeSimone, R.L., 2002)(Appendix 2) It includes 4 major works:training needs assessment, training design, training implementation and trainingevaluation First, training needs assessment analyzes the organization’ needs; theknowledge, skill, and ability needed to perform the job; and the employees’ needs.Second, training design is a process that requires a blend of instructional learningprinciples and media selection After assessing training needs, it is necessary to designcourses for training such as setting up training objectives, methods, materials andcontents Training implementation involves location, time and other logisticarrangement for training informed to staff timely The teachers prepare not onlytraining contents/ material but also other related knowledge/ suitable method/ skills.The subjects of training also are identified suitable to the content of training Trainingconduction is carried out right after every preparation steps are ready Last but not

least, training evaluation is an essential process There are three reasons for trainingevaluation : To justify the existence and budget of the training department by showinghow it contributes to the organization’s objectives and goals; to decide whether tocontinue or discontinue training programs and to gain information on how to improvefuture training programs.

2.4.2 Kirkpatrick’s four level evaluation model

KirkPatrick,D.L has developed a model of training evaluation ( KirkPatrick,D.L

& KirkPatrick,J.D., 2006) It is currently the most widely used evaluation approach It

is simple, flexible and complete using a four level approach

Level 1: Reaction/ Satisfaction (Did they like it?)

- Evaluate: Are people happy with the training inputs?

- Measures how participants in a program react to the training

- Evaluation tools: 'Happy sheets', feedback forms, verbal reaction, post-trainingsurveys or questionnaires

Level 2: Learning (Did they learn?)

- Evaluate: What do people remember from the training session?

- Learning has taken place when one or more of the following occurs: Knowledge

is increased; Skill is improved; Attitudes are changed

- Evaluation tools: Typically assessments or tests before and after the training

Level 3: Behavior / Transfer of Learning (Did they use it?)

- Evaluate: Do people use what they know at work?

- Evaluation methods: Observation and interview over time are required to assesschange, relevance of change, and sustainability of change

Level 4: Work Results (Did it impact the bottom line?)

- Evaluate: What are the outcomes of applications on the job over a period oftime?

- Results evaluation is the effect on the business or environment by the trainee

- Evaluation methods: Can include increased production, improved quality,decreased costs, reduced frequency or severity of accidents, increased sales,