Some solutions to improve the efficiency of human resource use at VNPT tuyen quang

2 Ministry of Information and Communication, Tuyen Quang VNPT has to renew its management and business thinking, especially needs to have solutions to improve the quality of human resour

LUẬN VĂN THẠC SĨ QUẢN TRỊ KINH DOANH

NGƯỜI HƯỚNG DẪN KHOA HỌC: TS PHẠM VĂN HỒNG

HÀ NỘI - 2020

The author is responsible in front of the Thesis Assessment Committee, Hanoi School of Business and Management, and the laws for above-mentioned declaration

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and appreciation to the people who have given me their assistance throughout

my studies during the preparation of this thesis They are my teachers, my colleagues, my family and my friends I would like to express my great thanks

to all of them

First of all, I would especially like to thank my advisor, Dr Pham Van Hong, for her continuous encouragement and especially for her academic and creative guidance She has been my source for inspiration thoughout my thesis Without her support, I would not be able to complete my thesis And I really appreciate her patience in reading and correcting my thesis

Last but not least, many thanks to my family, friends and classmates for their great love and care in both spirit and health during preparation for the undergraduate thesis in Finance

Finally, I have to give myself credit because I endured to the end of my thesis instead of giving up, losing my mind or getting sick due to the stress

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CONTENT

INTRODUCTION 1

1 Rationale 1

2 Literature review 2

3 Aims of research 4

4 Scope of research 4

5 Research methodology 4

CHAPTER 1: THEORETICAL BACKGROUND ON EFFICIENCY OF HUMAN RESOURCE USE 6

1.1 Human resources in the enterprise 6

1.1.1 Definition of human resources 6

1.1.2 The necessity of improving human resource 7

1.2 Improving the efficiency of human resource use 8

1.2.1 Some definitions related to efficiency of human resource use 8

1.2.2 Contents of improving the efficiency of human resource use 10

1.3 Factors affecting the efficiency of human resource use 11

1.3.1 External factors 11

1.3.2 Internal factors 14

1.4 Criteria for assessing efficiency of human resource use 15

1.4.1 Physical indicators 15

1.4.2 Criteria assessing professional qualifications 16

1.4.3 Criteria assessing skilled level 17

1.4.4 Criteria assessing professionalism 17

1.4.5 Moral criteria 17

CHAPTER 2: ASSESSING THE SITUATION OF EFFICIENCY OF HUMAN RESOURCE USE AT VNPT TUYEN QUANG 18

2.1 Overview about VNPT Tuyen Quang 18

2.1.1 Establishment and development 18

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2.1.2 Functions and tasks of VNPT Tuyen Quang 19

2.1.3 Organizational structure of management apparatus of VNPT Tuyen Quang 20 2.1.4 Business results of VNPT Tuyen Quang in the period of 2016-2018 21

2.2 Overview of human resources of VNPT Tuyen Quang 22

2.2.1 Statistics of human resources of VNPT Tuyen Quang 22

2.2.2 Labor structure by age 23

2.2.3 Labor structure by gender 24

2.2.4 Labor structure by professional qualifications 24

2.3 Efficiency of human resource use at VNPT Tuyen Quang 25

2.3.1 Current physical indicators 25

2.3.2 Current criteria assessing professional qualifications 30

2.3.3 Current criteria assessing skilled level 31

2.3.4 Current criteria assessing professionalism 34

2.3.5 Current moral criteria 35

2.4 Factors affecting the efficiency of human resource use at VNPT Tuyen Quang 37

2.4.1 External factors 37

2.4.2 Internal factors 43

2.5 Evaluating efficiency of human resource use at VNPT Tuyen Quang 46

2.5.1 Achievements 46

2.5.2 Limitations 47

2.5.3 Causes of limitations 49

CHAPTER 3: PROPOSAL ON SOLUTION TO IMPROVE THE EFFICIENCY OF HUMAN RESOURCE USE AT VNPT TUYEN QUANG 52

3.1 Evaluating the new context and the requirements set for improving the efficiency of human resource use of VNPT Tuyen Quang 52

3.1.1 Context impacts on improving the efficiency of human resource use of VNPT Tuyen Quang 52

3.1.2 Orientation and general targets of VNPT Tuyen Quang 56

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3.2 Some solutions to improve the efficiency of human resource use at VNPT

Tuyen Quang 58

3.2.1 Rearranging the organizational structure 58

3.2.2 Raising awareness and management skills 59

3.2.3 Building a human resource development strategy for VNPT Tuyen Quang 60

3.2.4 Building a job description 61

3.2.5 Improving the quality of recruitment and renovating training and retraining 62 3.2.6 Renewing salary and bonus policy 65

3.2.7 Renewing labor evaluation work 66

3.2.8 Building corporate culture 68

CONCLUSION 71

REFERENCES 73

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LIST OF FIGURES

Figure 2.1: Organizational chart of VNPT Tuyen Quang 20Figure 2.2: Training process and division in charge 32

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LIST OF TABLES

Table 2.1: Results of the main business targets for the period of 2016-2018 21

Table 2.2: Labor change data for 2016-2018 at VNPT Tuyen Quang 22

Table 2.3: Labor structure by age for 2016-2018 at VNPT Tuyen Quang 23

Table 2.4: Labor structure by gender for 2016-2018 at VNPT Tuyen Quang 24

Table 2.5: Labor structure by professional qualifications for 2016-2018 at VNPT Tuyen Quang 24

Table 2.6: Health situation of workers in VNPT Tuyen Quang 25

Table 2.7: Current health care for workers 27

Table 2.8: Welfares of VNPT Tuyen Quang 29

Table 2.9: Division of labor by qualifications in units in 2018 30

Table 2.10: Population size of Tuyen Quang for 2016- 2018 38

an organization are both a goal and a driving force for the organization's activities Human resources are the basic elements that constitute an organization, which is a condition for organizations to survive and grow up Therefore, an organization that

is assessed as strong or weak, develops or lags depends largely on the quality of its human resources

In the development of society as today, human needs are increasingly demanding with the goal that prices are constantly declining and product quality is constantly being improved Therefore, enterprises that want to survive must pay attention to the innovation of production technology, increase the content of gray matter in a product, increase labor productivity and lower product costs but still ensure quality It requires a team of dynamic staff, always keeping up with customers' tastes and promptly responding to that change

Tuyen Quang Telecom (VNPT Tuyen Quang) is a member unit of Vietnam Posts and Telecommunications Group with the function of producing, trading and serving specialized information technology telecommunications in Tuyen Quang Province Over the years, the telecommunications market - information technology has a lot of changes, telecommunications businesses must increasingly compete at a higher level, while technological changes in this area also rapidly happen Along with the Vietnam Post and Telecommunications Group in the process of restructuring under the guidelines and orientations of the Government and the

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Ministry of Information and Communication, Tuyen Quang VNPT has to renew its management and business thinking, especially needs to have solutions to improve the quality of human resources to meet the requirements of management and production and business in the new situation

In order to contribute to the study of human management, of which resolving the close relationship between the quality of management staff and the production and business efficiency of enterprises, the topic "Some solutions to improve the efficiency of human resource use at VNPT Tuyen Quang" has been chosen as a master thesis with high urgency

2 Literature review

Research on human resource efficiency is not a new topic A number

of studies can be mentioned as follows:

The research work of Prof Pham Minh Hac (2001) is "Researching people and human resources going into industrialization and modernization", National Political Publishing House, Hanoi The objectives of the project are to summarize the practical implementation of the Party's and State's lines, strategies and policies

on issues of cultural development, people and human resources to implement industrialization and modernization of the country; study and assess the current situation of some main aspects of culture, people and human resources in our country in terms of market economy, globalization and international integration to meet the requirements of the industrial career to modernize and modernize the country; build scientific arguments for planning views, ways, policies and solutions

to develop culture, people and human resources

The topic of the Human Research Institute, the project leader Assoc Prof

Dr Pham Thanh Nghi (2013) "Study and propose solutions to improve the efficiency of management and use of human resources in the process of industrialization and modernization" The project summarizes the models of human resource management and offers solutions to improve management efficiency and

on promoting human resource development of VNPT Ha Tinh that are suitable with current conditions

Thesis “Solution to improve the quality of human resources VNPT Hanoi by 2020” of Master Bui Ngoc Anh (2016), Bach Khoa University, Hanoi On the theoretical basis of human resources, quality of human resources and factors to attract and maintain human resources, the thesis focuses on analyzing and highlighting human resources situation of VNPT Hanoi The research also analyzes and finds out the causes of the quality of human resources VNPT Hanoi that is not completely high, current remuneration regime of VNPT Hanoi, VNPT Hanoi's attractiveness or unattractive attraction with employees tablets Finally, the thesis proposes a number of solutions to improve the quality of human resources, thereby improving labor productivity and business efficiency of VNPT Hanoi

Thesis “Improving the quality of human resources at VNPT Thanh Hoa” by Master Nguyen Thi Thuy (2014), University of Economics, Hue University The thesis contributes to clarify the scientific basis for improving the quality of human resources of enterprises; analyze and assess the status of human resource quality of VNPT Thanh Hoa, thereby pointing out the achievements, limitations and causes of limitations in improving the quality of human resources in VNPT Thanh Hoa in the period of 2011 – 2013 On that basis, the thesis proposes solutions to improve the quality of human resources in VNPT Thanh Hoa in the future

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It can be seen that the above research works are valuable in theory and practice for the author in improving the efficiency of human resource use and assessing the situation of improving the efficiency of human resource use in enterprises in general and telecommunications enterprises in particular However, depending on the characteristics of each enterprise, the authors have proposed different solutions to ensure it is appropriate to specific businesses to improve the efficiency of human resource use However, so far, no research has been done on the status of improving the efficiency of human resource use at VNPT Tuyen Quang, a telecommunications branch of VNPT has much potential for development Therefore, the research topic that the author chooses on "Some solutions to improve the efficiency of human resource use at VNPT Tuyen Quang" is an independent topic in comparison with works and articles published

3 Aims of research

- Systematizing the theoretical basis of efficiency of human resource use;

- Analyzing and evaluating the status of efficiency of human resource use at VNPT Tuyen Quang in the period of 2016-2018;

- Proposing solutions to enhance efficiency of human resource use at VNPT Tuyen Quang in the coming time

4 Scope of research

+ Space: VNPT Tuyen Quang

+ Time: The thesis analyzes the status of efficiency of human resource use at VNPT Tuyen Quang in the period of 2016-2018 and proposes the recommendations

2018, the development plans of the enterprise; studies such as master's thesis,

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doctoral thesis that have been completed; articles, magazines and textbooks related

to improving the efficiency of human resource use These data are used to analyze and illustrate clearly the research content The origin of these documents is clearly noted in the "References" section

Analytical method: Used to clarify the secondary data collected Thereby, the author will get the most comprehensive and objective assessment of the status of improving the efficiency of human resource use at VNPT Tuyen Quang

In this study, statistical methods: Used to list collected data Thereby, it will analyze these data and can make scientific conclusions, assessments on improving the efficiency of human resource use at VNPT Tuyen Quang

Comparison method: Used in this study to compare the work of improving the efficiency of human resource use at VNPT Tuyen Quang with improving the efficiency of human resource use at VNPT Tuyen Quang of some other branches of VNPT and some other telecommunications businesses It is a basis to come up with solutions to enhance the work of improving the efficiency of human resource use in VNPT Tuyen Quang in the future

Synthesis method: The data after being collected, the author will conduct synthesis, select the appropriate data After that, these data will be processed on Excel software Through absolute parameters, relative, average number shown through tables, diagrams, graphs, the author can assess the work of improving the efficiency of human resource use at VNPT Tuyen Quang

Chapter 3: Proposal on solutions to improve the efficiency of human resource use at VNPT Tuyen Quang

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CHAPTER 1: THEORETICAL BACKGROUND ON EFFICIENCY OF

HUMAN RESOURCE USE 1.1 Human resources in the enterprise

1.1.1 Definition of human resources

Unlike some other resources such as financial resources, physical resources, technological resources, human resources is an exceptionally indispensable resource, which determines the success or failure of the organization In the process

of existence as well as the development of human resources, it is not only affected

by natural and mechanical fluctuations but also influenced by the system of laws: the law of supply and demand, competition law and etc

Currently, there are many different views on human resources According to the United Nations, "Human resources are all knowledge, skills, experience, competence and creativity of people related to the development of individuals and countries"

The World Bank said: "Human resources are the entire human capital, including physical strength, intelligence, occupational skills and etc of each individual" [p 2] Thus, human resources are considered as a source of capital besides other types of physical capital such as monetary capital, technology and natural resources

According to the International Labor Organization (ILO), “a country's human resources are all people of the working age Human resources are understood

in two meanings: In a broad sense, human resources are the source of labor for social production and human resources for development Therefore, human resources, including the entire population, can develop normally In a narrow sense, human resources are the capacity of society to work, are resources for socio-economic development, including working-age population groups, capable of engaging in labor and production It means that all the specific individuals involved

in the labor process are the total of their physical and mental factors, mobilized into the labor process” [p 5]

From the above concepts, approaching from the perspective of political economy, we can understand: “Human resource is the sum of physical and mental power existing in the entire social labor force of a country, in which crystallizes the traditional and creative labor experience of a nation that has historically been used

to produce material and spiritual wealth for the present and future needs of the country” [p.25]

Human resources are assessed under two angles, quantity and quality:

- Regarding the quantity: The number of human resources is calculated by the total number of employed people, the number of unemployed and the number of reserve laborers However for businesses, human resources do not include people of working age of the whole society, but only those of working age who are working at the enterprise

- Regarding the quality: Human resources are expressed through physical strength, mental capacity, labor skills, morale, attitude, working consciousness and working style

In summary, human resource is the social labor force, the number of people who are able and willing to participate in the activities of the social production force and are not restricted from labor participation by the competent authority [p.3]

1.1.2 The necessity of improving human resource

It is the workers who determine the existence and development of businesses, they are the ones who research, design, manufacture high quality products and services, and they are the ones who choose and consume such

1.2 Improving the efficiency of human resource use

1.2.1 Some definitions related to efficiency of human resource use

Efficiency of human resources: is a comprehensive concept that includes

characteristics of the state, physical strength, mental capacity, skills, ethical style, lifestyle and spirit of human resources In other words, it is the level of education, health status, professional and technical qualifications, career structure, social component of human resources, of which education and occupational skills are important criteria to assess humanity human resource quality

The efficiency of human resources represents a certain state of human resources as a special material object and at the same time, the subject of all economic activities and social relations The efficiency of human resources is a combination of characteristics that reflect the nature and specificities directly related to human production and development activities

Talking about the efficiency of human resources refers to human resources and labor resources, not only expressed in quantity but also in quality, it is expressed in the level of vocational education, professional skills of the employee, showing that the employee has been trained and shown in the health of the employee Workers must be in good health to perform their jobs well Moreover, employees must also have a religion, a way of life reflected in their working attitudes and responsibilities in the work they do

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It can be said that the efficiency of human resources is combined by three factors: physical strength, intellect and lifestyle ethics

- Physical strength: is a state of human health manifested in biological

development, no disease, good working health in a form of labor with a certain occupation, and health for studying and working for a long time The weak physical strength will greatly limit the intellectual development of individuals and the general social community

- Intellect: is the intellectual, mental capacity, the level of intellectual

development, a professional and technical education, a professional skill and a skill

It largely determines the ability of human creativity It considerably plays a decisive role in the development of human resources, especially in this day and age when science and technology have developed rapidly

- Ethical lifestyle: is a reflection of social ethical standards The values from

that standard reflect the nature of society, the moral ideal of the society, especially

in its activities, lifestyle and daily life Human moral lifestyle is the expression of personality and psychology of enlightenment of cultural values crystallized in workers Ethics is associated with the capacity to create the basic values of labor quality personality, from the personal aspect to the social aspect and expressed in labor consciousness and labor attitude In addition to physical strength, intellect, ethical lifestyle, the efficiency of human resources is life experience, the need and habit of applying our combined knowledge and experience to creative activities to create new solutions to work as a cultural creation In that sense, the efficiency of human resources includes the richness and depth of the intellectual capacity, the practical, organizational and managerial capacity, the resourcefulness and flexibility

of responses of people in the context of the strength of education, experience, the expansion of social relations, the delicate acquisition of traditional cultural influences from the family to society It combines health (physical strength) and leads people into the practical school of creativity and development In other words, the efficiency of human resources is a set of human development indicators, the

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quality of culture itself and the society can mobilize into the creation following the cultural values of the whole commune, for the sake of the individual and the whole society

1.2.2 Contents of improving the efficiency of human resource use

Improving the efficiency of human resources is the activities to improve professional qualifications and management skills for workers when the society has evolved, science and technology and technology have made progress

Improving skills is perfecting the existing theoretical knowledge and practical skills of workers, making them more capable, working more effectively and qualitatively to adapt to work in the future

Specifically, improving the efficiency of human resources of an organization or enterprise is focused on the following specific contents:

+ Improving the physical strength for employees To do this, businesses need to create favorable conditions for employees to improve their physical condition, improve the working environment and working conditions as well as improve their incomes

+ Improving the intellectual capacity of employees In particular, enterprises need to provide training and retraining for their employees to improve their professional qualifications, improve their working skills, raise their qualifications and knowledge about public management and etc

+ Improving morality, awareness and consciousness The ability of the employee to complete the job depends not only on the health conditions, professional knowledge, but also greatly depending on the spirit of the attitude of the employee to the business, and the assigned work Therefore, businesses need to strengthen education, do well in the work of thought and build an open and sociable culture within the agency

Economic context

Economic cycle and business cycle greatly influence efficiency of human resources In the period of economic development, businesses wishing to expand production therefore need to develop new workers, enhance the training and retraining of officials and employees Moreover, this expansion of production requires businesses to recruit more competent people, qualifications which force businesses to raise wages, increase welfare, improve working conditions to attract talents

On the contrary, when the economy is in recession, unstable and tends to go down, enterprises need to maintain a skilled labor force on the one hand and reduce labor costs on the other hand Enterprises must give employees temporary or permanent leave or reduce benefits

Population and labor force in society

The labor force includes people who are able to work, currently or not yet employed The labor structure is expressed through age, gender, educational level, understanding of the population, education and professional skills as well as additional labor sources and etc Quantity and social labor structure directly affects the quantity, quality and structure of human resources in enterprises

Our country is in the process of transitioning to a socialist-oriented market economy, striving to become an industrialized country by 2020 The economy has only escaped from backwardness but has not developed strongly to become a new industrialized country Meanwhile the population is growing very fast The annual

Socio-culture

Traditions, customs, habits, rituals, ideological and ethical norms create cultural lifestyles and social activities environment of people in general and employees in enterprises in particular It is the social and cultural way that creates the corporate cultural atmosphere

Changing a country's cultural values will create challenges for human resource management Good human resource management will determine the success of your business and vice versa

For example, changes in working and resting attitudes have made human resource managers difficult In most industrialized countries, workers require reduced working hours, more time off from work, and managers have to deal well with the interests of workers and those of enterprise Meanwhile, in underdeveloped countries, people are familiar with the liberalist style, which is difficult for businesses to put them into the framework

Science and technology

The advancement of science and technology is an objective factor that strongly influences human resources, allowing businesses to choose policies that use less or more labor, thereby affecting scale, quality and human resource structure

To be able to compete on the market, Vietnamese businesses must improve science and technology and equipment This change strongly affects the human

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resources of the organization Businesses need to train and nurture their employees

to keep up with the fast-growing momentum of modern science and technology

Science and technology changes, some jobs and skills are no longer needed

On the one hand, businesses have to retrain their existing workforce and recruit more capable people, on the other hand, they need to reduce staffing and reorganize the redundant workforce

Competitors

Human resources are extremely valuable resources To survive and develop companies must find every way to attract, maintain and develop human resources Companies make reasonable human resource policies, leadership, encouragement and reward, creating a corporate atmosphere and constantly improving the working environment, improving welfare policies Human resource managers need

to know how to effectively manage employees

Customers

Customers are the goal of every business Management levels must ensure that their employees produce goods that match the needs and tastes of customers, and ensure the quality of goods and services Selling products, ensuring sales and profits are important factors for the survival of a business Thus, managers must make their employees understand that without customers there is no business and they no longer have the opportunity to work

In order for employees to be aware of that, the task of the management levels

in particular and the entire company in general is to know how to manage human resources effectively; while managing employees so that they satisfy customers is not simple

In short, the above-mentioned external factors have a great influence on the operations of the business After analyzing and researching the factors outside the enterprise, set its operational objectives From this goal, a strategy for production and business will be proposed

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1.3.2 Internal factors

The main internal factors include: the mission and goals of the company, the policies and strategies of the business, the working atmosphere of the business

Mission and goals of the company

Every business has its own mission and goals The mission or goal of an enterprise is an internal factor affecting specialized divisions such as manufacturing, sales, finance, marketing and human resource management In fact, each department has its own goals and it is set based on the mission and goals of the business

In businesses that tend to get more people involved in management decisions, it is more likely to attract highly qualified human resources because workers feel respected Therefore, businesses need a good working environment to nurture and motivate employees to promote the initiative Enterprises must focus on training staff that have skills, high scientific and technical qualifications and must have appropriate salary and benefit policies to maintain and promote employees to promote the most initiative, devoted to the business

While in businesses where all decisions are centralized at the management level, it is less likely to attract competent, creative workers by employees or rarely assert themselves with new initiatives, they feel like they are just playing a supporting role in the business

Policies and strategies of the business

These policies have a great influence on the work handling activities of management levels Today, when operating in a socialist-oriented market economy, most businesses have policies that allow their subordinates to directly report problems to higher levels if they are not directly dealt by the direct management That makes management directly try to solve the problems of their management Thus, the policy is a guideline and has a great influence on the management of human resources

The business strategy of an enterprise is a decisive factor to the success or failure of the enterprise's production and business activities The good

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implementation of business strategies proves that the management of human resources is carried out effectively Moreover, based on the proposed business strategy, the management levels identify the need for training and retraining of professional knowledge for the human resources department to meet the job requirements

Working atmosphere of the business

Corporate culture is a system of values, beliefs and habits shared within an organization that impacts the formal structure that creates behavioral standards In other words, it includes elements such as business philosophy and ethics, traditions, customs, habits, psychological atmosphere and solidarity, helping each other among members of the labor collective These factors greatly affect the quality of human resources because they create spiritual strength through the formation of the human culture and culture environment of enterprises

In businesses with an open culture, decisions can be made by low-level managers, higher and lower managers who have close relationships, close relationships, mutual trust, extended communication and public relations People are encouraged to come up with ideas and solve problems

In contrast, in closed-culture businesses, decisions are focused on senior managers within the business Superiors and subordinates have distance, lack of mutual trust, employees are not encouraged to set up initiatives and solve problems

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Health is an important criterion for assessing the quality of labor Health is a state of physical, mental and social comfort, a combination of many factors that make up Currently, the Ministry of Health prescribes three state of health of workers: Type I is of good physical strength, Type II is medium, Type III is weak

Health requirements of employees are not only mandatory standards when recruiting, but also are required to be maintained throughout the employee's working time Employees must be in good health in order to maintain continuous work under high pressure

1.4.2 Criteria assessing professional qualifications

Professional qualification is a prerequisite for performing tasks and creating work products Qualification is the level of knowledge, skills that are identified or assessed according to certain standards shown in the diploma that civil servants receive through the learning process

Qualification standards are often used to classify employees into the hierarchy Qualification standards differ for each industry and each employee's rank Criteria for evaluating professional qualifications of employees include two types:

- Criteria of education level: employee's education level is the employee's knowledge level achieved through the education system Currently, the educational level in our country is divided into levels from low to high (elementary, junior high, high school)

- Criteria for vocational training qualifications: vocational training qualifications of laborers are the professional qualifications of laborers who have been trained through schools with professional qualifications suitable to the assigned jobs The vocational training qualifications corresponding to the current degree system are divided into elementary, intermediate, college, university and postgraduate levels

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1.4.3 Criteria assessing skilled level

The skilled level of an employee is the job proficiency of the employee In order to assess the skilled level of employees in the enterprise, it is common to care about the average worker level of the workers and the rank for managers Skilled skills show the job performance skills of workers

1.4.4 Criteria assessing professionalism

The professionalism of employees is reflected in the performance of assigned work, the ability to adapt and overcome difficulties when working with high discipline, impartiality in the observance and execution of the law The law is placed in relationships and cooperation with colleagues, citizens and organizations

In a dynamic, modern working environment, professionalism is one of the top criteria determining the success of a business or the advancement of individuals Therefore, professionalism at work is increasingly appreciated and is one of the first requirements for employees

1.4.5 Moral criteria

Ethics is a set of social principles, rules and norms that regulate and evaluate the behavior of people in their relationships with each other and with society Worker morality at work is difficult to determine by specific criteria

Each career often has a separate ethical standard Each company has a moral standard that is consistent with its culture The progress of society requires practitioners in any field to comply with basic professional ethics, in order to ensure that careers, products of the industry and companies are respected and respected by society

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CHAPTER 2: ASSESSING THE SITUATION OF EFFICIENCY OF

HUMAN RESOURCE USE AT VNPT TUYEN QUANG

2.1 Overview about VNPT Tuyen Quang

2.1.1 Establishment and development

VNPT Tuyen Quang is an affiliated economic unit, a dependent accounting

of VNPT Group VNPT Tuyen Quang was established under Decision No TCCB/HĐQT dated December 6, 2007 of the Board of Directors of VNPT Group (now the Board of Members of VNPT Group), on the basis of reorganizing business units Telecommunication - Information Technology Service business of former Tuyen Quang Post Office (established in August 1945) and officially put into operation on January 1, 2008

695/QD-The history of establishment and development of VNPT Tuyen Quang is inseparable from the history of construction and development of Tuyen Quang Provincial Post Office and Vietnam Post Industry; which is summed up by ten traditional golden words: "Loyalty - Brave - Dedication - Creativity - Affection"

Loyal to the Party, to the Fatherland, to the people and to the development of the industry

Brave to overcome all difficulties, challenges, determined to maintain communication in all situations

Dedication to work, promoting solidarity, completing all tasks with high quality and efficiency

Creativity in labor, obeying the law, building a civilized, polite and industrial style

Affection to comrades, colleagues and the deceased

Following the tradition, currently, VNPT Tuyen Quang is making great efforts with other member units to build VNPT Group to become the leading VT-IT and Communication Group in Vietnam, with prestige in the international arena, following the glorious tradition of the Post Office, with the spirit:

Vision: No 1 Vietnam - On par with the world

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Mission: Connecting people

Philosophy: Customer-center Quality is the soul Efficiency is a measure Ethics: Trust with the State Trust with the Community Trust to Customers Trust to Workers

Value: Specialized - Differentiated - Effective

VNPT: VNPT - Connecting people

2.1.2 Functions and tasks of VNPT Tuyen Quang

VNPT Tuyen Quang is an integral part of the organization and operation system of VNPT Group Doing business activities and public utility activities with other member units in the unified VT-IT production line throughout the country, with the close relationships with each other on network organization, business interests finance, service development

- Organizing the development, construction, management, operation, installation, exploitation, maintenance, repair of peripheral networks and infrastructure of telecommunications station houses in the province under management;

- Organizing installation, repair, maintenance, technical support for customers using telecommunications services, information technology and communication in the management area as required

- Conducting surveys, consulting, designing, installing and maintaining telecommunications, information technology and communication works as required

- Organizing business of advertising services and leasing offices, equipment, stations based on the existing resources of the unit

- Organizing to serve and ensure timely and safe information for Party, Government and local authorities at the request; and organizing other production and business activities within the scope of the Group's permission and in accordance with the law

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2.1.3 Organizational structure of management apparatus of VNPT Tuyen Quang

Experiencing stages of development, from its inception to the present, VNPT Tuyen Quang has changed its organizational structure to suit the new business environment

Currently, the organizational structure of VNPT Tuyen Quang is composed of: Management division and direct production division, namely:

*) Management Division

- Board of directors

- Party – Union Division (Party, Trade Union, Youth Union)

- Planning - Accounting Department

- Human Resources - General Department

- Technical - Investment Department

*) Division of production units, including: Information Technology Center, Information Management Center and 05 Regional Telecommunications Centers in city areas and districts

Figure 2.1: Organizational chart of VNPT Tuyen Quang

IT Center

Party - Union Div

Planning – Accounting Department

Technical - Investment Depart

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Source : Human Resources – General Department, VNPT Tuyen Quang

The current organizational structure which is considered to be suitable for the business and operation situation spread throughout the districts and cities of Tuyen Quang Province Although the member units are distributed in different geographical locations with different business conditions and characteristics, they are all dependent on accounting and enjoy the motivational policies developed by the provincial Telecommunications

However, there is only one director and management apparatus in each center, so the implementation of motivational measures is more or less affected by the directors and leaders of the areas in the units

2.1.4 Business results of VNPT Tuyen Quang in the period of 2016-2018

Table 2.1: Results of the main business targets for the period of

2016-2018

Total revenue (VND million) 172,138 237,547 254,141

Total subscribers available on the network

Subscription growth rate (%) 268.66 66.7 115.6 Profit after tax (VND million) 25.535 16.353 -1.434 Payment to State budget (VND million) 4,783 2,638 2,286

Source : Planning – Accounting Department, VNPT Tuyen Quang

VNPT Tuyen Quang's business activities in the period of 2016-2018 are many changes in comparison with the previous period, due to the introduction of new products and services to supplement the volume and revenue of traditional voice services that is in a downtrend With the fierce competition among network operators, the strengthening of management in subscriber development of state management agencies and especially in the period VNPT Group carried out

of the operational restructuring, the most important indicator is that the profits still achieve high growth rates over the years

2.2 Overview of human resources of VNPT Tuyen Quang

2.2.1 Statistics of human resources of VNPT Tuyen Quang

Table 2.2: Labor change data for 2016-2018 at VNPT Tuyen Quang

Năm

Tổng số lao động

Số lao động dài hạn

Số lao động hợp đồng có thời hạn

Số lao động hợp đồng ngắn hạn

Source: HR - General Department, VNPT Tuyen Quang

Looking at the above table, we can see that, the average number of seasonal employees hired by VNPT Tuyen Quang is relatively small, due to the characteristics of the industry, the job positions are stable, less dependent on the season The unit only signs a number of short-term labor contracts to serve the sale, deployment of the point of sale system through collaborators or in some special locations such as Lo 8B River Hydroelectric Plant or Shoe factory in Ham Yen, where customers fluctuate over time

In recent years, the number of employees of VNPT Tuyen Quang has increased but in a small proportion (2017 increased by 11 laborers in comparison with 2016 and 2018 increased by 03 ones in comparison with 2017), due to the Group's policy not to allow its member units to recruit workers to wait for restructuring This partly makes it difficult for the unit to create a team of inheritance and complementarity in the future

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2.2.2 Labor structure by age

Table 2.3: Labor structure by age for 2016-2018 at VNPT Tuyen Quang

Source: HR - General Department, VNPT Tuyen Quang

Table 2.3 shows that the number of employees aged from 31-50 accounts for

a high proportion, basically the past period has met the job requirements However, with the business characteristics of the telecommunications industry, a large part of the work is of low complexity and is mainly related to the repair and maintenance of peripheral networks and must work outdoors, so in next five year, there is a need to rejuvenate the workforce On the other hand, with the changing trend of technology and services which change from only fixed-line phone service business to combining with providing new services: broadband internet connection, MyTV, content services and etc., it is required to rejuvenate and update new knowledge and skills to meet the job

The above characteristics of the labor force bring back the advantages for businesses with the majority of trained workers, qualified and experienced in order

to meet the job requirements better and better Nevertheless, with a workforce of many groups with different qualifications, different ages and different tasks, it requires the unit to have an effective way to motivate employees to make them satisfied and excited, responsible, proactive, creative to better perform the assigned work, thereby improving the quality and efficiency of the work

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2.2.3 Labor structure by gender

Table 2.4: Labor structure by gender for 2016-2018 at VNPT Tuyen Quang

Source: HR - General Department, VNPT Tuyen Quang

Through Table 2.4, we see that the proportion of male labor accounts for the majority reflecting the characteristics of the technical sector; and the number of employees has decreased over the years The labor structure reflects the business strategy of the enterprise in this period, for the reason: in the period of technological change, there is no need for labor and units in the restructuring and rearrangement process of labor, therefore, new recruits should not be recruited to offset the number

of employees on leave and for termination of the contract These figures lead to the question: Men operating in the telecommunications industry are more appropriate and the fact shows that the labor ratio between men and women is consistent with the specific characteristics of the unit

2.2.4 Labor structure by professional qualifications

Table 2.5: Labor structure by professional qualifications for 2016-2018

at VNPT Tuyen Quang Education

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The highly qualified workforce will adapt well and easily capture the work, thereby improving work efficiency, fulfilling planned targets, thereby increasing income and ensuring other policies It is also the motivation to motivate employees to strive more

at work Besides, due to the new regulation, the heads of units who are direct workers also raise the problem of appropriate measures to motivate these subjects

2.3 Efficiency of human resource use at VNPT Tuyen Quang

2.3.1 Current physical indicators

Labor in the telecommunications industry is characterized as jobs are usually carried out outdoors, on high, at deep poles (underground cable systems), geographical areas of labor stretching from urban areas to rural areas to remote areas Workers' workplace is always changing depending on the location and the working position In the telecommunication industry, there are many heavy works (such as construction of underground cable systems, construction of high poles ),

of which many works are carried out in hazardous and polluted environment (electromagnetic field, acid vapor, etc.), or carried out outdoors, affected by climate, weather such as strong sunlight, rain and wind and etc, affecting the health of workers In terms of time, due to the need to ensure smooth communication, many positions have to work on duty 24 hours a day so workers need to work nights

Originating from the above factors, human resources of VNPT Tuyen Quang must ensure a good physical response and endurance in continuous production conditions with the requirement to ensure excellent safety Understanding such issues, VNPT Tuyen Quang has paid great attention to the health of its employees

Table 2.6: Health situation of workers in VNPT Tuyen Quang

Year

Total number of employees with health

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Of which:

- Health type I: good

- Health type II: average

- Health type III: weak

According to the table above, the number of employees receiving health examination increases gradually over the years In 2016, there were 121/131 laborers examined their health (accounting for 92,37%), of which 73 ones (equivalent to 60,33%) got Health type I; 32 ones (equivalent to 26,45%) got Health type II and 16 people (equivalent to 13,22%) got Health type III By 2017, the number increased by 127/141 people (accounting for 90,07%), of which 90 Health type I (equivalent to 70,87%), 25 Health type II (equivalent to 19,68%) and only 20 Health type III (equivalent to 9,45%) By 2018, the number continued to go up by 135/145 (equivalent to 93,1%) with 107 health type I (accounting for 79,26%), 20 health type II (accounting for 14,81%) and 8 health type III (accounting for 5,93%)

In comparison of three years, we can see that the number of employees getting health type I tended to increase; while the number of employees getting health type

II and III decreased Especially, the rate of weak health accounts for a very low rate among the examined workers, reflecting the good physical quality of VNPT Tuyen Quang

The employees of VNPT Tuyen Quang have such physical strength due to the relatively young age structure, on the other hand, the unit always pays attention

to the working environment, implements the regime of in-kind allowances in accordance with regulations

In order to continuously improve the physical quality of the workforce, VNPT Tuyen Quang is always interested in health checks when recruiting and periodic health checks At the recruitment stage, in addition to the certificate of health examination as prescribed, for some job positions that require physical strength such as working on high, the unit often requires medical units to combine with competent people of re-inspection agency Periodic health checks for

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employees are maintained to promptly detect and treat common diseases, occupational diseases and occupational related diseases; thereby classifying the health of workers, and this is the basis for the unit to arrange the appropriate jobs

Table 2.7: Current health care for workers

Unit: person

Nursing, functional rehabilitation in Do Son,

Tour domestic and foreign tourism 39 43 56

Source: HR - General Department, VNPT Tuyen Quang

In short, we can see the inspection and control of the implementation of regimes and policies for employees is conducted regularly in VNPT Tuyen Quang; thereby improving the efficiency of production and business and service, income, material and spiritual life and health care, periodic medical examination and treatment, organization of convalescence, tourism tours, and social insurance regimes and health insurance and unemployment insurance are implemented fully and promptly

In addition, VNPT Tuyen Quang also paid more attention to bonus, welfares and other financial encouragement VNPT Tuyen Quang also attaches great importance to the rewarding work as an incentive both physically and mentally to motivate employees to work hard for better results Currently, VNPT Tuyen Quang

is applying the following forms:

- Rewarding technical innovations applied to employees who have initiatives

to improve technology, rationalize and improve production and business efficiency Employee initiatives are considered at two levels: subordinate unit initiatives (CS2 initiatives) by the units with the largest bonus up to VND 2 million/initiative, solutions and initiatives VNPT Tuyen Quang (CS1 initiative) with bonuses of up to

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VND 50 million/initiative and solution Employee initiatives will be reviewed, evaluated and decided by the VNPT Tuyen Quang Initiative Council, based on the effectiveness of the initiative

- Rewarding and encouraging monthly following the emulation movement with specific goals and tasks in each aspect of work for employees and collectives with achievements The reward for individuals is from VND 500,000 to VND 1,000,000/employee and for the collective is from VND 1-3 million However, the criteria set out are quite high, difficult to achieve so the number of individuals and groups rewarded is not much

- Reward for saving production and materials costs, exceeding sales revenue is applied to encourage the collective and individual employees to perform their assigned tasks while saving on supplies and raw materials, bringing economic efficiency to the unit This award will be conducted on a quarterly basis and the bonus level will be set according to the emulation launches

- Bonuses are also paid on the occasion of Lunar New Year, New Year's day, Mid-Autumn Festival, Victory day of April 30, National Day on September 2 to encourage employees However, the proportion of bonuses and benefits in the total income of employees is still low

Recognizing the importance of welfare to motivate employees, VNPT Tuyen Quang always ensures the implementation of mandatory benefits and additional support such as social insurance, health insurance, to treat sickness and maternity leave in accordance with the provisions of law; giving gifts upon marriage, retirement, transfer of work; allowance for female employees to give birth according to regulations, support employees and their families in the event of natural disasters, enemy sabotage, fires, long-term sickness, serious labor accidents

or serious illnesses least; when having father, mother (including spouse), spouse, child dead; the employee who works, unfortunately, dies This is a more beneficial point for employees than the law and a positive side of the business that shows an interest in employees

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In addition, to facilitate life care, as well as create conditions for employees

to work closely with the unit, VNPT Tuyen Quang also has voluntary benefits such as: organizing workers' holidays, giving birthday gifts; rewarding employees who are good at schooling on occasions such as Children's Day 1/6, Mid-Autumn Festival; visiting and giving presents to families of employees whose relatives are merchants, martyrs, incentives for children of laborers with academic achievements

Table 2.8: Welfares of VNPT Tuyen Quang

No Content of welfares Benefit level in 2018

1

When families encounter natural

disasters, enemy sabotage or

sickness (not exceeding 02 times /

year)

500.000 – 5.000.000

3

Gifts for employees’ children on

Children's Day 1/6; Mid-Autumn

5 Invalids and Martyrs Day 500.000

7 Employee’s parents die 500.000 - 800.000

8 Souvenir when retirement 2.000.000

10 Traditional industry day 2.000.000

Source: HR - General Department, VNPT Tuyen Quang

The content of the centralized welfare policy is stipulated by the professional and trade union of VNPT Tuyen Quang in the Labor Agreement, Regulations on

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payment of wages, Regulations on emulation and reward, Regulations on democracy, Fund management and use of social policies, Welfare Funds and regularly reviewed, amended and supplemented to suit the provisions of law and reality at the unit Therefore, all are transparent with employees and gradually promote the effect of making employees stick to and enhance their responsibility in performing duties and responsibilities

Thus, it can be seen that the welfare regime of VNPT Tuyen Quang has had positive effects in creating labor motivation through material stimuli, supporting workers' lives However, along with the development of the socio-economy, the industry, the welfare regime must also be adjusted to suit the reality in order to maintain and promote the role in motivation

2.3.2 Current criteria assessing professional qualifications

As explained in 2.2.4, we can see that the contingent of officials and engineers with college degrees of VNPT Tuyen Quang account for a large proportion This ensures they are well-educated, well-trained and have good professional knowledge There are many employees who have a degree in engineering and a degree in management or economics at the same time

Table 2.9: Division of labor by qualifications in units in 2018

education College

Immediate and worker

Labor at Center of Information Technology

& Regional telecommunications centers 03 43 61

Source: HR - General Department, VNPT Tuyen Quang

Thus, human resources manager, with the exception of some accountants at some units with intermediate qualifications, the remaining gets university In addition, the personnel in charge of serving and directly manufacturing have relatively high university level, which reflects the field of business operations and