Enhancing the quality of human resource training activities at hanoi regional branch of deposit insurance of vietnam

15 1.1.3 The contents of human resources quality improvement activities within a business 16 1.1.3.1 Human resources planning ..... 1.1.1.4 Improve the quality of human resources in a bu

MASTER’S THESIS ON FINANCE – BANKING - INSURANCE

Hanoi, 2018

2

INTRODUCTION 7

1 Background to the topic 7

2 Objectives 9

3 Scope and Methodology 9

4 Structure 9

Chapter 1: Theoretical foundation of the quality of human resources and human resource training 10

1.1 Human resources and human resource quality in a business 10

1.1.1 Human resources and human resource quality in a business 10

1.1.1.1 Human resources 10

1.1.1.2 Human resources in a business 12

1.1.1.3 Quality of human resources in a business 12

1.1.1.4 Improve the quality of human resources in a business 13

1.1.2 Human resources quality criteria within a business 14

1.1.2.1 Physical strength 14

1.1.2.2 Intellectual abilities 15

1.1.3 The contents of human resources quality improvement activities within a business 16 1.1.3.1 Human resources planning 16

1.1.3.2 Recruitment, utilization and evaluation of employees 17

1.1.3.3 Employee treatment policy 19

1.1.3.4 Training and Human resources development 20

3

1.1.4 Factors influencing the improvement of human resources within a business.

21

1.1.4.1 External factors 21

1.1.4.2 Internal factors 22

1.2 Overview of human resource training 27

1.2.1 Definition of human resource training 27

1.2.2 The difference between training and human resources development 28 1.2.3 The need for human resources training 29

1.2.4 Benefits of human resources training 30

1.2.4.1 For the organization 30

1.2.4.2 For the employees 32

1.2.5 Criteria to assess the development of human resources training activities 33 1.2.5.1 Trainees’ responses 35

1.2.5.2 Education and training effectiveness 35

1.2.5.3 Trainees’ attitudes 36

1.2.5.4 Results of training courses 36

1.3 Experiences in developing activities to improve human resources around the world 37 1.3.1 Experience in organizing development program for human resources training of the Federal Deposit Insurance Corporation (FDIC) 37

1.3.2 Samsung Group 41

Chapter 2: Analyzing the situation of human resource training activities at Deposit Insurance of Vietnam – Hanoi branch 45

4

2.1 Overview of DIV 45

2.1.1 The establishment and development of DIV 45

2.1.2 Organizational structure, functions and duties of the Deposit Insurance of Vietnam 47 2.1.3 Overview of DIV operations 50

2.2 Introduction to DIV Hanoi branch and its current human resources training activities 53

2.2.1 Introduction to DIV Hanoi branch 53

2.2.2 Human resources training activities of the Branch 56

2.3 Evaluating the actual quality of human resource training activities60 2.3.1 Advantages 60

2.3.2 Disadvantages and Causes 61

Chapter 3: Solutions to improve the quality of human resources training of DIV Hanoi Branch 64

3.1 Operation directions of DIV in Hanoi 64

3.1.1 Operation directions of DIV 64

3.1.2 Operation directions of DIV Hanoi Branch 65

3.2 Solutions and recommendations to improve the effectiveness of training human resources for DIV and DIV Hanoi Branch 66

3.2.1 For DIV 66

3.2.1.1 Complete the steps in human resources training process 66

3.2.1.2 Develop a detailed and accurate assessment system for training effectiveness 68 3.2.2 Recommendations for DIV Hanoi Branch 69

5

3.2.2.1 To build a separate training model for Hanoi Branch 69

3.2.2.2 To build a model for maintaining high quality human resources for the Branch 70 3.2.2.3 Finalize the evaluation of work performance in order to arrange and use post-training human resources 70

3.2.2.4 Build up corporate culture of the Branch 71

APPENDIX 73

Appendix 01 75

Appendix 02 76

Appendix 03 78

Appendix 04 80

6

ABBREVIATIONS

2 FDIC Federal Deposit Insurance Corporation

3 ILO International Labor Organization

Supervisor: Dr Nguyen Thi Kim Oanh

Thesis: Solutions to improve the quality of human resource training activities of DIV Hanoi Branch

INTRODUCTION

1 Background to the topic

Human resource administration is an essential factor of every organization, including functions to resolve human resource and human resource related issues such as searching, recruiting, conflict resolving, incentives, training and education efficiency…

On the other hand, basic operations of human resource administration include training and development, as suggested by Grubb, T (2007): “Training is short-term educational process utilizing a systematic and organized procedure by whichnon-managerial personnel learn technical knowledge and skills for a definite purpose.Development, in reference to staffing and personnel matters, is a long-term educationalprocess utilizing a systematic and organized procedure by which managerial personnel learnsconceptual and theoretical knowledge for general purpose.” Basically, the development focuses mostly

on decision making improvement and communication skills broadening for medium and high-level managerial personnel, whilst training leans towards lower level personnel

In fact, human resource training activities have currently become essential elements implemented by modern organizations since they benefit both the organization

8

and their recruited employees As for employees, they can boost productivity and quality, enhance personal skills as well as enrich knowledge, pushing employees to their greater potentials with corresponding skills and capacities As for the organization, it helps to diminish any weak links within the organization, improve employee loyalty, and create a competitive environment amongst capable employees whose work scopes span across multiple areas and who can respond to any requirements when the organization changes its policies or strategies

Established in 2000, DIV is the only business founded to carry out deposit insurance activities under the supervision of the State Bank of Vietnam After 17 years of operation and development, with 1 headquarter and 8 branches nationwide, the organization has gathered a number of achievements in the fields of banking, finance and insurance DIV assumes the development of the banking system goes hand in hand with underlying risks, therefore the organization has made it their mission to build up depositors‟ trust, ensure the stability of the finance system and facilitate more effective financial tools to prevent the banking system from collapsing

Especially, the Hanoi branch of DIV is one of the most effective and long-standing branches, operating in the field of deposit insurance across 12 Northern provinces of Vietnam To achieve the aforementioned objectives, it requires from the branch a solid and efficiently-structured financial capacity as well as an abundant and high-quality human resource Although human development activities have a great impact on the development and operation of any company, these activities are often considered unimportant in Vietnam Therefore, my thesis aims to explain the relationship between human resource training and business development, by collecting data and statistics from Hanoi branch as an example for analysis to propose solutions to improve human resource activities at the branch

In particular, Vietnam Deposit Insurance Hanoi Branch is one of the most effective and longest-standing branches of deposit insurance in the 12 northern provinces

of Vietnam To achieve the above objectives, the branch requires a solid financial

9

capacity and an efficient structure, abundant human resources and qualifications Although human development activities have a great impact on the development and operation of any company, these activities are considered unimportant in Vietnam Therefore, my research in this thesis aims to explain the relationship between human resource training and business development, by collecting data and reporting data from the Hanoi branch as an example to propose solutions to increase human resources at the branch

2 Objectives

The objectives of the thesis are as follows: (i) to illustrate the importance of human resource training in operations; (ii) to analyze the conditions for training activities

at DIV Hanoi Branch; (iii) to propose solutions and recommendations to improve human

resource training activities within the branch

3 Scope and Methodology

The research scope will focus on training activities for particular professional tasks, such as monitoring and inspecting at DIV headquarter and DIV Hanoi branch

The methodology incorporates qualitative and quantitative in data collection and reporting Data sources are taken from both external and internal sources External data includes books, past studies, internal reports and journals, legitimate and reliable websites, government legal documents and decrees Internal data includes documents and

statistics provided by the branch in particular and DIV in general

4 Structure

The thesis is divided into 3 main chapters

Chapter 1: Theoretical foundation of the quality of human resources and human resource training

Chapter 2: Analysis of the quality and human resource activities at DIV Hanoi Branch

Chapter 3: Solutions to improve the quality of human resources training for DIV Hanoi Branch

10

Chapter 1: Theoretical foundation of the quality of human resources and

human resource training 1.1 Human resources and human resource quality in a business

1.1.1 Human resources and human resource quality in a business

1.1.1.1 Human resources

Resources for economic development are vital for the development of a country These resources include: natural resources, capital, science and technology, human , among which human resources are the most important and decisive to the economic growth and development of each and every country A country, though abundant of

Meanwhile the World Bank defines "Human resources is the whole of human capital including physical, intellectual and professional skills of each individual.” Herein, human resources are considered to be a source of capital besides other material capital: money, technology, natural resource capital

According to the ILO, “A country‟s human resources are all people within working age.”

Human resources can be defined in two ways: Broadly speaking, human resources are the resources which provide labor capacity for social production and provide human capacity for development Thus, human resources include all citizens who can normally develop Narrowly speaking, human resources are the working capacity of a society, the resource for economic and social development, including citizens within working age and able to participate in social production, who individually participate in the laborprocess These resources are the entire spectrum of a human‟s physical, intellectual abilities, mobilized into the labor process

Taking an approach from the perspective of Political Economy, it can be understood from the definitions above that “Human resources are the total of physical and intellectual abilities existing among the entire social labor force of a country, which accumulates the tradition, innovation and working experience of a race in history, utilized to produce material and spiritual goods for current and future demands of that country.”

Human resources are considered and evaluated from two aspects: quantity and quality Regarding the quantity, the quantity of human resources is calculated by the total

12

of working people, unemployed people and preventive working people As for businesses, the quantity of human resources is not calculated by the number of people within working age of the society, but by the number of people within working age employed by the business Regarding the quality, human resources are expressed through physical and intellectual abilities, working skills, spirits, attitudes, disciplines and styles

1.1.1.2 Human resources in a business

In a business, human resources are considered the whole physical and intellectual abilities of people, mobilized in the production and labor process It is also defined as human‟s working capacity – one of the most valuable resources among production elements of businesses Human resources of a business include all employees working for the company Human resources mean human elements, therefore it is sensitive and complicated Humans are the elements making up the business, operating the business and deciding the success or failure of the business

1.1.1.3 Quality of human resources in a business

Due to different approaches, there currently exists several ways of understanding regarding the quality of human resources Some argue that the quality of human resources is the human value, both material and spiritual, both intellectual, mental and professional skills, making a person an employee with abilities and ethic qualities matching the ever growing requirements of socio-economic development

Within the scope of this thesis, I will use the following definition of the quality of human resources: “The quality of human resources is the total capacity of the labor force expressed through three aspects: physical, intellectual and spiritual These three aspects are tightly interconnected, making the quality of human resources.” Physical abilities are the foundation and the vehicle to transfer knowledge, intellectual abilities are the decisive factor to the quality of human resources, and working attitude is the dominant factor in the transformation of physical and intellectual abilities into reality

13

The quality of human resources within a business is displayed in the efficiency of the working process carried out by that labor force In this process, people often perform two main functions: on the one hand, carry out the activities following existing processes with skills and techniques accumulated or trained to produce a previously designed product; on the other hand, people simultaneously perform their creative functions to create new products and technology without following the pre-designed patterns The consumption of physical and intellectual abilities, also the utilization of workers‟ intellectuals must reach a higher level at which information is constantly searched and found and materialized into new products and technology

Thus, the quality of human resources approaching intellectual economy is the improvement of physical abilities and innovative spirits to search and discover information as well as to materialize that information into new products and technology The ability to create and innovate is the distinct feature of the quality of human resources approaching intellectual economy

1.1.1.4 Improve the quality of human resources in a business

The improvement of human resources is the enhancement of power and innovative skills of physical and intellectual abilities of the labor force to a certain level so that this force can accomplish asocio-economic mission in a certain development phase of a country or a business Therefore, the quality of human resources is the direct motivation for the socio-economic development The quality of human resources shows the level of socio-economic development of each country, the quality of life of the population or the level of civilization of a society

The quality of human resources can be enhanced by creating people‟s potentials through training, improvement, self-improvement and re-training, mental and physical healthcare, maximizing potentials This includes labor activities through recruitment, usage, facilitation of working environment (effective working equipment and reasonable policies…), cultural and social environment to stimulate working incentive and attitude

of employees so that they give their best to complete their assigned tasks and

14

responsibilities The management and proper allocation of human resources after training

in accordance with each individual‟s abilities is a key factor to the success of a business

From these points, it can be understood that: “Improving the quality of human resources in a business is improving the capacity to adapt in terms of the workers‟ abilities on such aspects as: physical, intellectual abilities and spirits as required in order

to achieve a common purpose of the business.”

1.1.2 Human resources quality criteria within a business

at work may lead to the inability to research and innovate inventions Physical strength of the human resource is established, maintained and developed with a proper nutrition diet and healthcare plan Therefore, the physical strength of human resource depends on the level of socio-economic development, income distribution as well as social policies of each country

The Charter of the World Health Organization (WHO) states: “Health is a state of total physical, mental and social well-being, not without disease or disability”

Physical strength is the harmonic development of a human being, both physically and mentally (physical health and mental health) Physical strength is the capacity of manual labor; mental health is the toughness of mental activity, mobility in the mind and the ability to turn thoughts into actions Physical strength is reflected in a system of basic

Intellectual abilities are not the piling up of knowledge but a refinement A simple collection of knowledge can be a dictionary in a bookstore, used by everyone, while refinement means distill, renovation and innovation For Marxists, intellectual power is the capacity to understand and improve the world That means that this kind of abilities must consider the utilization of knowledge to conduct science and labor to be its content

In addition to grasping knowledge, intellectual abilities require rational thinking and skillful techniques More particularly, intellectual abilities are analyzed from two aspects:

(i) In terms of educational qualifications and professional qualifications

Educational qualifications are the abilities in terms of education and skills to receive basic knowledge and carry out simple activities to maintain life Educational qualifications are provided through formal or informal educational system, through the life-long educational process of each individual

Professional qualifications are the knowledge and skills necessary to respond to professional requirements of the current position

Professional qualifications of employees in abusiness is a very important criterion to assess the quality of human resources, because the high level of education creates the conditions and the ability to absorb and apply technological innovations into practical production and business operation; to create new products to contribute to the development of that business in particular and the socio-economy in general In fact, most businesses with highly qualified employees often grow quickly However, there are also businesses with highly qualifiedemployees, but unable to fully utilize those

16

potentials Their productivity and growth rate are therefore still anchored at a low level

It can be accounted to undeveloped human resource utilization and management regime Besides physical strength and intellectual abilities, social experience and practical understanding capacity should also be taken into account; since first-hand experience brings about the demand and the habit to apply the knowledge and customs of each individual and each society into researching and innovating solutions and activities in business operations as cultural creativity Simultaneously, it is unable to evaluate human resources without bringing up the human elements, namely their ethics, attitude and working styles Previously, human resources were often considered in terms of physical strength and intellectual abilities only

(ii) Soft skills

Nowadays, recruiters are looking for applicants who, in addition to their professional qualifications (often demonstrated through degrees, academic qualifications and so on) also have other supporting soft skills Soft skills are the term used to refer to skills such as life skills, communication, leadership, teamwork, time management, computer science, foreign languages… which are not taught formally in school but rather accumulated through social experiences It complements and improves the working capacity of workers They decide who you are, how you work, and function as effective measurements of working efficiency

1.1.3 The contents of human resources quality improvement activities within a

business

1.1.3.1 Human resources planning

Human resources planning is a process of forecasting, researching and determining the demand for human resources within an organization, so that policies and action programs for the future can be made to ensure the organization is equipped with enough human resources with qualities and skills suitable for tasks, to achieve its assigned objectives

17

To improve the quality of human resources requires a strategical vision and tight connection with business development planning of a business since the ultimate purpose

of these activities is to enhance productivity and to achieve the organization‟s objectives

To ensure the highest level of efficiency for human resources quality improvement activities, we need detailed planning

Human resources planning is the foundation for human resources quality improvement activities, contributing to creating smooth collaboration during the process Human resources planning allows a clear insight into the integration of departments and helps explaining such issues as: what the purpose of human resources improvement is, what subjects these activities target, whether the human resources are suitable for the strategy, whether the human resources can ensure competitive advantage and can maintain that advantage in the long term…

1.1.3.2 Recruitment, utilization and evaluation of employees

Human resources in a business are not a closed resource They can rather attract external resources through recruitment to further enhance the quality of human resources within a business

Personnel recruitment is the process of finding and selecting personnel to meet the needs of the business and adding the workforce needed to accomplish business goals In other words, recruiting is the process of providing a special input to the business, which

is the human factor The process consists of two main stages: attraction, search and selection These two stages have a close relationship with each other: if the attraction and search has good results, the business has the potential to recruit qualified personnel, and also increases the credibility of the recruitment process of the business and thereby help

to attract and find talented people to improve the quality of human resources of the business

Recruiting is a very important factor in improving the quality of human resources

of each organization If the recruitment process is performed well, the organization can recruit actual qualified employees with high ethic qualities Conversely, if the

18

recruitment process is not properly considered, the business will not be able to select virtuous and talented people The recruitment should be based on the principles of: demands of the position; objectiveness and fairness; the recruitment must be done on the basis of determining the number of employees to be recruited, during which it is necessary to analyze the positions and requirements to set the conditions and criteria when recruiting

The planning of utilization must follow the principle that the conditions and criteria applied for the recruitment of each position must strictly follow the descriptions

of that position; since assigning personnel to a position that is most suitable to each individual‟s qualifications and abilities in the specialized direction will create a favorable environment for that individual to make use of their expertise and professional qualifications to promote the development of that organization

The layout of use must ensure the principle that when setting the conditions and criteria for recruitment for any position must arrange the right job; Because the placement of human resources into positions and positions in line with the level of training and ability of each person towards specialization will create favorable conditions for them to develop their strengths, Qualified capacity is trained, contributing to the development of the organization

Work evaluation process is also an important activity in human resources administration It plays an essential role in encouraging the employees to work better, since work evaluation allows the organization to treat each and every employee fairly, while letting them know the employees‟ achievements and performing as an incentive for employees to work better and improve their behavior at work Most businesses nowadays build their own system of evaluation so that they can assess their employees‟ work completion Smaller companies evaluate work completion informally through daily evaluation by supervisors for employees and mutual assessment between people being evaluated Larger companies evaluate work completion through modern methods such as

19

applying KPIs (Key Performance Indicators), creating clear evaluation forms for work completion with close monitoring and assessment from direct supervisors

1.1.3.3 Employee treatment policy

Employee treatment is a process of taking care of material and spiritual life of employees so that employees can perform well and complete their assigned tasks, contributing to the business‟s goals

Employee treatment policies are implemented in two basic forms: financial treatment and non-financial treatment Financial compensation in a business is a form of treatment provided by financial instruments, including various types such as wages, bonuses, allowances, grants, shares and so on Non-financial charges are made through two types of treatment: work-based and environment-based treatment to meet the increasing spiritual needs of the working class, such as joy in life, excitement, passion for work, fair treatment, respect, ability to communicate…

Good employee treatment helps promote reproduction and labor force improvement

A good treatment policy should create conditions for workers to reproduce their labor power Labor power is the ability of physical strength, intellectual abilities of workers In the process of labor, that power will gradually depreciate in the production process (physical decline, stress ) Compensation will now play a role of restoring, or even boosting the labor power, both physically and intellectually For example, paying salaries and bonuses must ensure that workers and their families can meet the minimum needs in their lives

Keep and attract talents for the business

In every organization, qualified or highly skilled employees play an important part However, talented people do not necessarily stay passionate towards their job or organization Their leaving the organization without a replacement of adequate quality means the quality of human resources of that organization will suffer Prior to improving

20

the quality of human resources of the business, it is advisable to find a solution to keep talented and highly qualified employees on board A good treatment policy may help the business to achieve this purpose, enhancing employee loyalty and allow the business to attract talents from external sources, thus improve the quality of human resources

Treatment policy motivates employees to make effort to complete themselves

The employees‟ needs are ever changing, constantly growing and developing during working process These needs create different work incentives By satisfying these material and spiritual needs, employee treatment policies help to create motivation for employees To best promote their capabilities, individuals need support and intervention

of technology In an age where the “brain battle” is getting increasingly fierce, good employee treatment policies will provide most advanced working tools to help employees to promote their capabilities

1.1.3.4 Training and Human resources development

Intellectual abilities of human resources are the most important among criteria to evaluate human resources quality Intellectual abilities are demonstrated through educational background and professional qualifications or skills Therefore, to improve the intellectual abilities of human resources, businesses are required to regularly hold training and re-training programs for employees

Training and improving professional levels for employees will ensure that the labor force of a business can adapt and closely follow the evolution as well as development of technologies, and that the business owns a highly qualified labor force to achieve its objectives In business environment, labor force – especially intellectual labor force, is a valuable asset to confirm the business‟ position on the market It is the employees‟ skills and capabilities demonstrated through their resourcefulness and skillfulness during research and production to meet with the ever-growing demands of the modern industry, the advancement of technology as well as to ensure highest efficiency for production and business operations

21

Moreover, training and re-training also help the employees to raise their education level, broaden their knowledge and improve their skills It also helps the employees to take better health care of themselves, to have a more positive attitude at work, contributing to better the quality of human resources for the business

1.1.4 Factors influencing the improvement of human resources within a business

1.1.4.1 External factors

Educational and training development level

High quality human resources are people who are invested to develop their skills, knowledge, experience, creativity, or in other words, the capacity of the human resources This capacity can only be obtained through education – training and the accumulation of experience during working However, even this experience accumulation must be based

on a foundation that is basic vocational education – training It can be thus seen that this factor affects the quality of human resources on the market and indirectly affects the quality of human resources in the business When the quality of human resources at universities, colleges, vocational schools is improved, businesses stand a better chance at recruiting highly qualified personnel, reducing the cost of retraining

Education – training creates “competition” in the society, and in a highly competitive labor market, people with low levels of or no education or skills may find it difficult to compete with people of higher level of education and professional skills

Development level of medicine and healthcare

In fact, the first foundation of human resources is physical strength and health, which are the results of several factors including hygiene, primary health care, nutrition diet, diagnosis and treatment, fitness and sport conditions, culture indulgence… All workers, muscular or intellectual, need good physical strength to maintain and develop intellectuality, to transfer knowledge to practical actions, to turn knowledge into material power Moreover, the agility of mental activities, the faith and will, brain mobility are all required in different conditions

22

The level of development of medicine and healthcare for workers is one of the key factors influencing the physical state of the workers Nowadays health is not only regarded as a state without diseases, but also the completeness in terms of both physical and mental states

Additionally, social security policies are also important elements demonstrating the level of development of medicine and healthcare Social security policies create a legal environment for the establishment and development process of high quality human resources In the relationship between employees and employers, employees are often in a vulnerable position, so state policies and regulations regarding wages, salaries and social securities serve to protect the minimum rights and benefits Businesses must base on these policies to build their own employee treatment policies An improvement to these policies may benefit the employees, allowing them to complete and better their own capabilities

The development of technology and world economy globalization

During this age of economic integration, the competition to survive between businesses has become fierce The appearance and participation of foreign invested enterprises has led to a race of manufacturing technologies Therefore, the criteria set for task performers have been raised accordingly The more developed technology becomes, the more qualified employees must become Without high quality human resources, the business has lost an edge in the competition

1.1.4.2 Internal factors

Training methods

Many training techniques are created almost every year due to the rapid development of technology Deciding between training methods depends on the type of training chosen, the objectives of the training program and the training method Training

is a process based on conditions and situations, which is why no single method is right for every situation Although some goals can be achieved easily through one method, different goals require different approaches Many training programs aim at learning in

The cognitive methods are said to be good for the development of knowledge while the behavioral methods are good for the development of skills (Blanchard and Thacker, 1998: 277) The decision on the training approach depends on many factors including the amount of funding for training, the specific and complex nature of the knowledge and skills needed, the urgency of the training, the capacity and demand of the learner

To achieve the best results, the training method should motivate the trainees to improve their skills, express the desired skills and should create opportunities for participants to actively participate, to practice, should provide timely feedback on student achievement and a number of reinforcement measures The method should also be designed from simple to complex tasks, adapted to specific issues and should encourage positive transfer from training to work

Practical training

The purpose of practical training is to provide employees with specific related knowledge and skills at the workplace The knowledge and skills presented in practical training are directly related to job requirements Career training, job rotation, training and apprenticeship are common forms of practical training methods

work-24

Job instruction training: is a structured approach to training that requires trainees

to conduct a series of sequential steps in the model This approach applies behavioral strategies with a focus on skill development, but often also applies to some practical and reality knowledge objectives This type of training is suitable for job-oriented tasks such

as operating equipment The facilitator prepares a number of incidents at work, while an experienced worker performs a step-by-step solution to the problem Jobinstruction training consists of four steps: preparation, implementation, testing, and monitoring (Blanchard and Thacker, 1999: 306)

Job rotation: is a systematic change from a job to another job or project in an

organization to diminish or respond todifferent human resources objectives such as recruitment, new employee orientation, career development, employee development with diverse working environment (Woods, 1995: 188) A good rotation program would reduce training costs while improving the quality of training since the rotation helps to enrich the employee‟s experience Job rotation helps individuals develop, become more creative, flexible, adaptive, inquisitive and more effective at communication One of the potential risks for job rotation programs is the cost, since job rotation increases management time for lower-level employees It can also increases the workload and reduces the efficiency of the management and other personnel Job rotation is highly valuable at organizations where specific working skills are required since it promotes self-development of organizations (Jerris, 1999: 329)

Coaching: is a one-to-one or one-to-multiple instructional process for improving

knowledge, skills and quality of work Coaching is becoming a common means of training and development, often involving working directly with learners to conduct needs assessments, setting key goals for completion, designing developing plans, assisting the learner to complete the plan Learners focus on these activities and trainers provide continuous feedback and support Often training is directed towards employees with performance deficiencies, but is also used as a motivational tool for good performers Training methods address issues such as communication, time management

25

and social skills Executive training usually takes place on a monthly basis and continues for a period of several years Typically, coaches are brought in where there is a change in the structure of the company, when a group or individual is not performing well or needs new skills Training assumes that you are healthy but can be better (Kirwan, 2000)

Theoretical training

Theoretical training is conducted at a specific location designated for training It can be near the workplace or at work, at a special training center or resort Theoretical training will minimize confusion and allow learners to pay more attention to the course However, off-the-job training programs may not provide too much training for actual work as well as programs at work

Classroom Lectures: follows the method of vocational training, classroom

methods or basic teaching methods to train staff or managers in the organization Staff are required to study as in the classroom to train with lecturers in the form of lectures This method is used effectively for the purpose of teaching administrative or procedural aspects, or management based on procedural awareness and guidance on specific topics Advantages of this method can be applied for large groups since it requires low cost per student However, its benefits to labor workers are insubstantial This is a traditional training method, without precise feedback mechanism, which can lead to boredom in learning

Case Studiesis a method of describing past real-world situations in an organization

and the participants are asked to analyze and draw conclusions in writing This is a way

to ensure the full participation of all employees and to create interest in the training program The case is then discussed by the lecturer with all the pros and cons of each option It is an ideal way to promote decision-making in the context of limited data

Conferenceis a good problem-solving approach A team will look at a specific

issue and they work to reach consensus through statements or solutions When choosing among these methods, the trainer must decide which method best suits the trainees, the environment and the available investments Many trainers will choose to incorporate

26

other training methods to change the training methods and increase the creativity of their trainees

Management viewpoints

For each organization, the management‟s viewpoints will decide the development

of human resources If the management is aware of the values that a high quality human resources brings about and have a suitable investment policy, the development of human resources will be more effective and there will be more chances to build a strong organization Conversely, if an organization fails to recognize the importance of human resources and fails to create advantages to attract and keep talents, that organization surely will fail to develop in a sustainable and stable manner

The business’ financial status

To enhance the quality of human resources is an indispensable need for every business However, all activities and decisions regarding human resources must be based

on the actual financial status of that business It is unreasonable to require a business to improve its human resources while the cost of such activities is beyond the business‟ affordability If the business is in a good financial state, it is possible to build an outstanding treatment policy in comparison with other businesses in order to attract talents However, if the business is small or medium-sized, it is fairly impractical

Human resource department within the business

The scale of the human resource management department varies according to the size of the organization The department should be strengthened in accordance with the size of the business, and specialized boards should also be established under the management of the head of the department or the department director The title of the head of human resource management also depends on the structure of the organization If the structure is complex, the degree of specialization and the workload is high, then each specialized job will have its own department

The actual capacity of human resource personnel in the business is also an important factor affecting the quality of human resources They are the people who

27

directly carry out activities related to human resources Therefore, if human resources personnel are highly qualified and capable, human resource activities should be more efficient, thereby increasing the quality of human resources

1.2 Overview of human resource training

1.2.1 Definition of human resource training

Training refers to a company's planned effort to enable employees to learn about career-related capacities These capacities include knowledge, skills or behaviors that are critical to successful job performance The goal of the training is to have employees master the knowledge, skills and behaviors that are emphasized in the training programs and apply them to their daily activities For a company to gain competitive advantage, training activities must encompass many steps, rather than simply develop basic skills To use training to gain competitive advantage, a company should consider mass training as a way to generate knowledge capital Knowledge consists of basic skills (skills needed to perform assigned tasks), advanced skills (such as using technology to share information with other employees), understanding of customer or production system, and creativity Conventionally, training emphasizes basic and advanced skill levels Employees are required not only to understand the service or product development system but also to share knowledge and use it creatively to improve the product or serve the customer

Many companies and financial institutions have adopted this broader perspective, commonly known as high-leverage training Leverage training is linked to business goals and strategies, using the design of instruction to ensure that training is effective and benchmarking or standardizing training programs of one company for training programs

in other companies

Advanced training also helps to create a work environment that encourages continuous learning Continuous learning requires employees to understand the whole working system, including relationships between their work, colleagues, and the company Employees are expected to acquire new skills and knowledge, apply them to

28

work, and share this information with other employees Managers play an active role in identifying training needs and help ensure that employees use training in their work

1.2.2 The difference between training and human resources development

Both training and development are the core missions of an organization Training staff is, however, a specific task for the development of work-related skills in a specific period and will be provided periodically when the skills need updating to perform specific required tasks In addition, training is meant for the purpose of developing professionalism among employees Training primarily provides staff with awareness of how to handle specific tasks, technologies, or equipment to perform specific tasks or functions within the organization Finally, staff training will be taught by professionals in specific work including techniques to develop skills In many large organizations, even in government organizations, there is always a separate budget for the purpose of training staff as a key, indispensableexpense Since staff training is costly, especially in IT companies where staff training costs are higher and training frequency is greaterdue to constant technological changes and updates

Focuses on work-related skills Creates educational methods and

personality development Depends on the lack of skills Depends on personal motivation and

ambition Short-term process, focuses on the

present

Long-term process, focuses on the future

Targets the improvement of work quality Targets the overall personal development,

including future potentials

The main differences between training and human resources development include:

29

 Training is a learning process for new employees who need to know the key skills needed for the job Development is the training process for existing employees for their comprehensive development

 Training is a short-term process, i.e three to six months, and development is a continuous process, so it is a long-term process

 Training focuses on developing skills and knowledge for the current position On the other hand, development focuses on building knowledge, understanding and capacity to overcome future challenges

 Training is limited to the specific vocational directions On the other hand, development is oriented to the career and hence its scope is relatively broader than training

 During the training, the trainees will have an instructor guiding them during the training Development is the opposite, in which the manager orientates himself to the future requirements for himself

 Many individuals participate in the training program Development is a assessment process, and therefore, a person is responsible for his or her own development

self-1.2.3 The need for human resources training

Training is a necessity for every organization, as technology is constantly and quickly evolving Systems have soon become outdated due to new discoveries of technology, including technical, management and behavioral factors If organizations do not develop mechanisms to catch up and make use of technology that is growing, they will soon become obsolete However, the development of individuals in the organization can contribute to the organization's productivity and efficiency

In addition, the use of inexperienced and new labor requires organizations to have detailed guidelines to increase their effectiveness at the workplace Along with the development of automation of the machines, people are not required to work directly, but

to rotation, promotion or demotion

However, such training and development requirements should be monitored and adjusted in order to achieve the best possible goal Without proper supervision, training can increase employee frustration and fatigue when their skills are developed alongside the requirements outlined but they do not have the opportunity to apply the skills on the job A good training system will help in tracking the many directions that employees should develop in the best interests of the organization A good training system also ensures that employees develop in a way that fits their career plans

1.2.4 Benefits of human resources training

1.2.4.1 For the organization

Staff training not only benefits the individual but also the business, allowingbusinesses and organizations to continue to operate efficiently

Firstly, it enhances the efficiency of employees An effective training program can empower the company's employees to work effectively Through training, employees are instilled with confidence, which is seen in the output and results At the same time, it will motivate employees New skills and knowledge can reduce boredom at the workplace It also demonstrates to employees that they are valuable enough for the employer to invest

in them and their development From there, the organization can achieve strategic business objectives and competitive advantage

Secondly, training reduces demand and costs for supervision An employee or staff member should always be supervised at work, in both workplace skills and

Fourthly, training reduces the labor rotation rate With the development of human resources area and head-hunter job, brain drain and the loss of important personnel are worrisome for any organization or business Training increases the chances of promotion and welfare of employees, making them happier for being better positioned and promoted

in the company, so their chances of continuing their current job to serve the business significantly increase and the labor rotation rate of the business also decreases

On the other hand, training facilitates new employees in the organization to develop Training is always beneficial to employees whether old or new as it provides education and development opportunities for all employees Opportunities may include training programs, but also include support for courses offered outside the company, self-studying and learning through job rotation In the case of new employees, training are tremendously beneficial Itallows new employees to be aware of the function of the organization and also helps them better understand their work in the organization

In addition, the relationship between the management and workers is improved This is essential for any organization in any field When companies introduce training programs and prepare employees for future work and advancement, they will send messages to training courses that they are interested in employee welfare As a result, training courses are a way to show the company's concern for employees and to improve relationships between management and employees Employee training can be used to create positive environments by clarifying the behaviors and attitudes that employers expect from employees

32

1.2.4.2 For the employees

According to Quinn, Anderson and Finkelstein (1996), the purpose of training is for the employees to master the knowledge, skills and behavior highlighted during the training process and apply them to their daily activities They argue that training is about gaining competitive advantage rather than just basic skills development

Most employees have some weaknesses in their work skills Training enhances the skills that each employee needs to improve An effective training program brings all employees to a higher level so all of them acquire equal skills and knowledge This helps

to reduce any weak link in a company where some people are heavily dependent on others to complete basic tasks At the same time itfacilitates the creation of a team of employees with overall equal knowledge and can take over and support each other in case

of necessity, can work in groups or work independently without help and supervision from others

Training helps to improve the confidence of employees New employees can adapt

to the new working environment and do not feel confused in front of managers and people who work longer than themselves This confidence leads to opportunities for better future efforts from employees

At the same time, training enhances the motivation of the employee, inducing positive attitudes among the staff, thereby enhancing the organization's results Effective training helps employees benefit from the welfare system and incentives available in the company Accordingly, employees can receive these rewards, thereby increasing the motivation of the employee Employees who feel valued and challenged through training opportunities may feel more satisfied with their work

Training not only involves individuals but also focuses on group training An effective training program not only instructs an employee how to do his job effectively but also trains him to work as part of the team Training programs improve teamwork skills, and soft skills, and align the working environment between employees

33

Finally, effective training programs increase the productivity and increase the chances of promotion Many employees even choose certain programs so they can improve their promotion chances and claim higher positions in the organization

1.2.5 Criteria to assess the development of human resources training activities

Training effectiveness assessment is an improvement measure of knowledge, skills and behaviors of employees as a result of the training program This measure helps to cover the costs incurred in designing and implementing training programs with associated benefits Therefore, it indicates that the program was able to achieve its original purpose and purpose

Phillips (1997) defined training as a systematic process to determine and assess the value or significance of an activity or a process For a specific assessment method to be applied in every case, certain measures need to be developed Several models have been developed to measure the effectiveness of human resource development and training effectiveness, but the most supported model was developed by Kirkpatrick He points out that there are four areas of measurement that need to be considered when analyzing the effectiveness of a training program - including emotional response, achievement of goals, behavioral change, and organizational influence

Due to the context and business model, the training evaluation model from Donald Kirkpatrick and Dr Jack Phillips has become the most reliable training and development evaluation methodology available and most widely used in the world until now Four levels of Kirkpatrick's assessment model of basic training include:

 Trainee responses - what they think and feel about training, usually done through the form of evaluation (Happy sheets)

 Learning - an increase in knowledge or competence

 Behavior - the extent of influence of behavior and capacity building and how it is implemented / applied

Tools or techniques Comments

Subjective but has some usefulness

Level 2 :

Learning

Skills, Knowledge or attitude changes as a result of training program

Tests via paper and pencil or computerized format

Tests must be assessed for validity and reliability Level 3 :

Cost Reduction, productivity increases, improved quality, reduced labor hours,

decreased production/processing time, etc

Critical tasks are isolating the effects of training and capturing appropriate data

expressed as a percentage

Detailed, comprehensive data collection and analysis of costs & benefits accounting expertise helpful Time Value

of money is a factor

The most comprehensive and objective evaluation technique, but the process can be very costly and time consuming

Table 1.1 Kirkpatrick‟s training evaluation table

35

1.2.5.1 Trainees’ responses

Emotional responses are related to the attitudes of participants towards the training

at the end of the training program An employee who gains the skills and knowledge from the training will be ready to apply it to the job, thus bringing about positive responses This can be a method that allows a common assessment of attitudes, expectations, and motivations Although subjective, the response also provides feedback on the style and content of the training This measure is useful in promoting support for the training program

Training questionnaires can be used to measure emotional responses The questionnaire should be aimed at measuring attitudes towards content, process, definition

of course objectives, achievement of course objectives and course value The focus of the method is to investigate attitudes towards training materials provided during the training and to receive feedback from trainees However, post-training interview methods also received criticism in terms of their accuracy and bias, also in relation to the advertisements in the questionnaires which may considerably affect the accuracy of the answers to the questions

1.2.5.2 Education and training effectiveness

This is the second measurement method, taking achieving learning objectives as a post-training assessment of the knowledge and skills gained through training to improve job performance Positive emotional responses and improved hands-on skills are the hallmarks of successful training and are required for a meaningful training program The pre-test and post-training evaluation method produces results against the scoring scale The scoring scale will help you demonstrate the knowledge and skills gained from the training experience Pre and post audits can be conducted occasionally in classroom workshops and simulations This technique and simulation will bring direct results and provide less stress and more positivity to the learning environment

In both cases, the results must be compared to the learning objectives Simulation games and classroom seminars will facilitate the measurement process in two ways First,

36

they create a more creative and less stressful environment for trainees Secondly, if designed and applied properly, simulation games will create the working environment for employees and solve a number of issues related to training and human resource development

1.2.5.3 Trainees’ attitudes

A third approach to measuring training effectiveness focuses on changing training The third level of assessment is about job-related behavior changes that are reflected in performance Surveys, observations, and performance interviews are some of the tools used in measuring behavioral change

behavior-Achieving designed goals is one of the key measures to measure behavioral change Performance evaluation using a questionnaire is often considered biased when used to measure behavioral change Here, supervisors may be biased towards the subordinate trainee Performance assessments seem to be aware of this shortcoming On the other hand, the attitude of the trainees may not be able to change or they do not gain any understanding from the training Maybe the company does not allow students to apply new skills or technologies, or learners have learned everything, but do not have the attitude to apply that knowledge to themselves

1.2.5.4 Results of training courses

The fourth approach in the Kirkpatrick model revolves around the impact of organizational training and development Measurement is based on the idea that training and human resource development must reflect the organization's goals and strategies A training program will only be evaluated if the training results are closely aligned with the organization's objectives Measuring organizational impact can be demonstrated by improving profitability, productivity, competitive advantage, and so on Although measuring the effectiveness of the training program to the organization is a difficult task because of the complex structure of the organization and the forms of interaction with the

37

external environment For example, the effect of pre and post training may not be related

to differences in profitability or productivity

In summary, Kirkpatrick's model shows the four pillars which measure efficiency

in training and development Emotional responses and learned knowledge are key concepts in evaluating the effectiveness of training These factors indicate, in the short term, the human resource development of an organization Behavior change and organizational impact are two other important dimensions of human resource development These are long-term assessments to meet individual, management and organization goals The model does not require a balance between the four indicators, they always complement and support each other Without short-term measurement assessments, training activities are at risk of imparting knowledge that cannot be applied

or are not related to organizational goals Without assessment of behavior change and organizational impact, training may be successful but its benefits to the organization can

be limited in certain cases

1.3 Experiences in developing activities to improve human resources around the world

1.3.1 Experience in organizing development program for human resources training of

the Federal Deposit Insurance Corporation (FDIC)

(*) FDIC Introduction

Federal Deposit Insurance Corporation (FDIC) is a US Federal Government agency, acts as an independent agency for the oversight and guaranty of deposits in US banks

This corporation was established in 1933 under the Banking Act to regain the reputation for the US finance [2] after a financial crisis By 2013, FDIC had guaranteed at most $250,000 for each deposit account at total 7,181 member establishments nationwide [3] In addition to the above responsibilities, FDIC also reviews and monitors financial

(*)Improving the quality of human resources

The most important resource of FDIC is the "knowledge fund" that employees of the organization contribute to fulfill their duties For that reason, FDIC strives to attract, develop and maintain a highly qualified, diversified and result oriented workforce and is considered a superior employer among the federal agencies

By 2018, more than one-third of the current FDIC employees are expected to retire

in the next 10 years This movement will allow FDIC to reshape its long-term workforce

to provide effective oversight and meet the emerging challenges of an increasingly complex financial system in the United States By 2018, FDIC will continue to pursue a number of ongoing initiatives to develop its workforce in the future while meeting the need to develop its short-term human resource training

Human Resource Development Initiative

Like many other federal agencies, FDIC faces potential successor management challenges sinceseverallongtime, experienced employees have retired Proposed and introduced in 2013, the FDIC's Workforce Development Initiative emphasizes the need to prepare staff to meet current and future needs for leadership and capacity This focus ensures that the FDIC has a workforce in place to meet today's core responsibilities, including oversight responsibilities under the Dodd-Frank Act, while preparing to complete its mission in the years to come

The Workforce Development Initiative is designed to meet the need for a comprehensive plan to address the challenges and opportunities for human resource development The initiative focuses on four common goals: attract and develop talented

39

employees throughout the agency; improve the capacity of staff through training and diverse work experience; to encourage employees to participate in an active career development plan and to seek leadership in FDIC; and to build and consolidate FDIC's operations to support these efforts

In 2018, FDIC will continue to develop and implement strategies, programs and infrastructure to assist in achieving these goals in order to meet the needs for the long-term workforce FDIC is in the early stages of a multi-year effort to identify future workforce and leadership requirements, assess current labor capacity, motivate employees to aspire for leadership roles and management, development and resources to meet emerging workforce needs

FDIC has expanded interdisciplinary succession plans to review the current FDIC management status and set up development recommendations for ambitious senior executives The long-term goal of this effort is to empower qualified staff to apply for leadership positions through a systematic, deliberate approach to cultivate leadership talent In 2017, FDIC examines its unattended employees to understand their benefits in taking on leadership roles in the coming years FDIC plans to continue to implement these efforts and other efforts by 2018 to achieve the goals of the Human Resources Development Initiative

An important component of the FDIC's long-term human resource development strategy is the Enterprise Employee Program (CEP) CEP is the basic means used to fill new or low positions in FDIC's core banking supervisory and management functions and asset reception management Once employees have completed the CEP training program and are commissioned under the assigned guidelines, they have many opportunities to continue their expertise in specific areas

In 2017, FDIC continued its many years of effort to develop cutting-edge skills through rigorous and structured training programs for professionals in areas such as accounting, capital markets, information technology, BSA, AML compliance FDIC also provided opportunities for staff to prepare for management positions and leadership

40

Another achievement of FDIC's strategic personnel plan is the staff development program designed to expand the number of FDIC employees who have extensive, multi-disciplinary experience with the largest and most complex banks under the control of FDIC and bank-owner financial companies The program provides experience in risk monitoring, analysis and quantification, valuation of deposit insurance and fund management, and crisis planning FDIC staff and leaders have years of experience in effectively responding in times of crisis, while continuing to fulfill the organization's mission requirements FDIC will work to ensure that the future FDIC workforce is as prepared, capable, and dedicated as the present

Human resources diversity and integration

In 2018, FDIC will continue to pursue a more comprehensive, integrated and strategic focus on diversity and inclusion in the FDIC's workforce The FDIC Diversity and Inclusion Advisory Council (DIC) consists of key senior executives who oversee the implementation of the FDIC's Consolidated and Diversity Strategic Plan, which was originally enacted in 2013 and is annually reviewed and updated as needed

This plan provides a roadmap to achieving diversity in the workforce through targeted recruitment; increased participation in the workplace through cooperation, flexibility and equity; and ensure the sustainability of diverse achievements and inclusion

by equipping leaders with the ability to manage diversity, monitor outcomes, and tune data-driven approaches The blueprint elaborates specific steps to enhance diversity and inclusion within FDIC in the areas of recruitment, succession planning, leadership involvement, analysis and reporting, training, communication, strategic planning and performance evaluation improvement

fine-Education and human resources development

FDIC provides employees with training opportunities based on leadership skills and methods that will help them achieve their missions In 2018, the FDIC University will continue to provide innovative solutions to prepare current and new employees for the challenges ahead The organization will also continue to use academic programs as an