Developing the human resource at joint stock commercial bank for investment and development of vietnam transaction center 1 branch

ĐẠI HỌC QUỐC GIA HÀ NỘI KHOA QUẢN TRỊ VÀ KINH DOANH --- LÊ THU HOÀI DEVELOPING THE HUMAN RESOURCE AT JOINT STOCK COMMERCIAL BANK FOR INVESTMENT AND DEVELOPMENT OF VIETNAM -TRANSACTION

ĐẠI HỌC QUỐC GIA HÀ NỘI KHOA QUẢN TRỊ VÀ KINH DOANH

-

LÊ THU HOÀI

DEVELOPING THE HUMAN RESOURCE AT JOINT STOCK COMMERCIAL BANK FOR INVESTMENT AND DEVELOPMENT OF VIETNAM -TRANSACTION CENTER

1 BRANCH

PHÁT TRIỂN NGUỒN NHÂN LỰC TẠI NGÂN HÀNG THƯƠNG MẠI CỔ PHẦN ĐẦU TƯ VÀ PHÁT TRIỂN VIỆT

NAM – CHI NHÁNH SỞ GIAO DỊCH 1

LUẬN VĂN THẠC SĨ QUẢN TRỊ KINH DOANH

HÀ NỘI - 2021

ĐẠI HỌC QUỐC GIA HÀ NỘI KHOA QUẢN TRỊ VÀ KINH DOANH

-

LÊ THU HOÀI

DEVELOPING THE HUMAN RESOURCE AT JOINT STOCK COMMERCIAL BANK FOR INVESTMENT AND DEVELOPMENT OF VIETNAM -TRANSACTION CENTER

1 BRANCH

PHÁT TRIỂN NGUỒN NHÂN LỰC TẠI NGÂN HÀNG THƯƠNG MẠI CỔ PHẦN ĐẦU TƯ VÀ PHÁT TRIỂN VIỆT

NAM – CHI NHÁNH SỞ GIAO DỊCH 1

Chuyên ngành: Quản trị kinh doanh

Mã số: 8340101.01

LUẬN VĂN THẠC SĨ QUẢN TRỊ KINH DOANH

NGƯỜI HƯỚNG DẪN KHOA HỌC: PGS.TS NGUYỄN NGỌC THẮNG

HÀ NỘI - 2021

DECLARATION

The author confirms that this thesis is the result of the author’s independent work The data and results presented in this thesis are not copied; the cited data, materials used in the thesis are collected in practice and published in the reports of BIDV and the authorities The content of the thesis

is truthful Simultaneously, the author confirms that the solutions, petitions is the personal work of the author withdrawn from the research process and has not been published in any other’s research

ACKNOWLEDGEMENT

In order to complete this master thesis, I would like to express my sincere gratitude towards Associate Professor, Doctor Nguyen Ngoc Thang, for guiding and directly instructing me to perform and complete this thesis I would like to thank the Dean of Hanoi School of Business and Management and the entire lecturers and officers of the School for assisting and creating favourable conditions during the process I studied at School

Next, I would like to send my gratitude to the Management Board, the officers and the employees who are working at Joint Stock Commercial Bank for Investment and Development of Vietnam, Transaction Center 1 Branch for supporting with the information, data and materials during the process of implementing this thesis

Despite of great effort; due to the limited timing, research methodology and experience, it is unavoidable for the thesis to contain errors, I wish to receive the comments, contributions from you and the co-workers to apply the research results into the practice of work in the banking field

Sincerely thank you!

TABLE OF CONTENT

LIST OF ABBREVIATION i

LIST OF TABLE ii

LIST OF DRAWINGS AND DIAGRAMS iii

INTRODUCTION 1

CHAPTER 1 LITERATURE REVIEW ON HUMAN RESOURCE AND HUMAN RESOURCE DEVELOPMENT 11

1.1 Several basic concepts: 11

1.1.1 Human resource 11

1.1.2 Human resource development 13

1.1.3 Roles of human resource in commercial bank 15

1.1.4 Tasks and objectives of human resource development 16

1.2 Human resource development procedure 18

1.2.1 Identify the scale and number of human resource 19

1.2.2 Establish the human resource structure to met the objectives, tasks of the organization 20

1.2.3 Raise the professional knowledge, specialization and skills of the human resource of the organization 21

1.2.4 Raise the awareness of the human resource 24

1.2.5 Raise the motivation the human resource 24

CHAPTER 2 SITUATION OF HUMAN RESOURCE DEVELOPMENT AT JOINT STOCK COMMERCIAL BANK FOR INVESTMENT AND DEVELOPMENT OF VIETNAM – TRANSACTION CENTER 1 BRANCH DURING 2017-2020 27

2.1 Introduction on the Joint Stock Commercial Bank for Investment and Development of Vietnam – Transaction Center 1 Branch 27

2.1.1 Information about the Joint Stock Commercial Bank for Investment

and Development of Vietnam – Transaction Center 1 Branch 27

2.2 Current situation of the human resource development at the Joint Stock Commercial Bank for Investment and Development of Vietnam – Transaction Center 1 Branch 32

2.2.1 Identify the scope and number of the human resource 32

2.2.2 Human resource structure equivalent to the objectives and missions of the organization 34

2.2.3 Level of specialization, profession and skill of the human resource of the organization 35

2.2.4 Cognition level of the human resource 39

2.2.5 Motivations for the human resource 41

2.3 Evaluation of the human resource development at Joint Stock Commercial Bank for Investment and Development of Vietnam Transaction Center 1 Branch 44

2.3.1 Achieved results 44

2.3.2 Remaining limitations 45

2.3.3 Reasons for the limitations 46

CHAPTER 3 SOLUTIONS TO COMPLETE THE HUMAN RESOURCE DEVELOPMENT AT JOINT STOCK COMMERCIAL BANK FOR INVESTMENT AND DEVELOPMENT OF VIETNAM TRANSACTION CENTER 1 BRANCH DURING 2020-2025 48

3.1 Foundation to complete the human resource development at Joint Stock Commercial Bank for Investment and Development of Vietnam Transaction Center 1 Branch 48 3.1.1 Direction and objectives of Joint Stock Commercial Bank for Investment and Development of Vietnam Transaction Center 1 Branch in

3.1.2 Business operation field 49

3.2 Proposal for the solutions to complete the human resource development at Joint Stock Commercial Bank for Investment and Development of Vietnam Transaction 1 Center Branch 52

3.2.1 Solutions to complete the identification of the scale and number of the human resource 52

3.2.2 Solution to complete the human resource structure to be equivalent to the objective of BIDV center 1 55

3.2.3 Solutions to raise the profession and skill level of the human resource 56 3.2.4 Raising the awareness level of human resources 58

3.2.5 Raise the motivation to promote the human resource 59

3.3 Petitions 62

3.3.1 Changes in recruitment demand 62

3.3.2 Increase personnel in technology 63

3.3.3 Adapt and prepare for the future 65

CONCLUSION 67

REFERENCES 69

APPENDICE 72

APPENDIX 1 SURVEY QUESTIONNAIRE 72

LIST OF ABBREVIATION

DN Doanh nghiệp (Enterprise)

NXB Nhà xuất bản (Publisher)

TMCP Thương mại cổ phần (Joint Stock Commercial)

NNL Nguồn nhân lực (Human Resource)

BIDV Ngân hàng Thương mại Cổ phần Đầu tư và Phát triển

Việt Nam (Joint Stock Commercial Bank for Investment and Development of Vietnam)

CBCNV Cán bộ công nhân viên (Personnel)

BIDV Center 1 Joint Stock Commercial Bank for Investment and

Development of Vietnam, Transaction Center 1 Branch

LIST OF TABLE

Table 2.1 Number of officers through the years of BIDV Center 1 32 Table 2.2 Detailed human resource structure according to the function of BIDV center 1 in 2019 34 Table 2.3 HR structure based on the professional level 35 Table 2.4 Conclusion of the training result of Joint Stock Commercial Bank 36 Table 2.6: Human resource training content at BIDV Center 1 37 Table 2.7 Conduct and manner of the employees 40 Table 2.8 Spiritual activities 44

LIST OF DRAWINGS AND DIAGRAMS

Drawing 2.1 Operation model of BIDV Centre 1 31

INTRODUCTION

1 Urgency of the topic

According to the General Statistics Office of Vietnam, in 2018, the population of Vietnam was approximately 94 millions people, in which the labour force from 15 years old occupied about 55.16 million people

Human resource is the factor determining the success and progress of each nation, in which the process of human resource development is the major scale to evaluate the level of progress of the society, the equality and the substantial development In the socio-economic development strategy for the period 2011-2020, Vietnam always emphasizes the development of human resource, identify that this is the breakthrough stage for the process of the transforming the socio-economic model of the country; it is also the foundation for the substantial development and it will enhance the comparative advantage during the process of integration Although Vietnam is experiencing the process when the labour supply is abundant and stable, with the integration trend, Vietnam is facing new challenges

Along with the trend of integration and modernization of the economy, the Vietnamese human resource participating in scientific research, technological development and creation reformation has the tendency of increasing However, with the new requirements and practice, the human resource of Vietnam currently still has many shortcomings

According to the Global Competitiveness Report 2010, Vietnam had the rank of 84/127 regarding the skills of the graduates and 79/134 regarding the creativity reformation ability, the output results of researches is still far behind in comparison with Thailand and Malaysia

Situations in which the employees do the works not in compliance with the trained major, profession and skill The statistics showed that 81.1% of the

labours owning a junior college level, 60.4% of the labours have the vocational level and 23.8% of the labour possessing a graduate level who perform the technical and skilled professions below their trained professions (according to the qualification/ certificates)

On the other hand, there were about 35.1% of the labour who are performing the work which required the level of profession/ skill higher than their qualifications

Vietnam is changing the development model to the direction of developing the knowledgeable economics, enhancing the creativity reformation and the raising the requirements for the technical skills and the social emotional skills

In the fourth Industrial Revolution, with the development relating to automation, digitalization, the demands for skills are changing quickly, a number of occupations will diappear, the new ones will appear and the other industries are changing The Human resource needs to be prepared sooner, faster and in a more updated and practical approach

If the other economies in the regions (including Korea, China, Singapore …) have already prepared the high quality force, in Vietnam, the human resource for such segment is still deficient In the banking industry, there is the situation where the human resource is “abundant and deficient”, in which, there is a severe lack of high qualitied human resource in many specialized fields relating to banking and technology According to Le Thanh Lan (Banking – Financial Institute, 2018), one of the major weakness of the Financial – Banking industry currently is the serious shortage of the high qualitied human resource in many specialized fields such as development strategies, risk management, international investment, international payment

… especially the financial - banking experts with international qualifications

technology and human resources If we want to grow fast, it is necessary to develop three factors, apply new technologies, develop modern infrastructure and improve the quality of human resources To achieve long-term goals, businesses need to develop human resources development strategies to meet sufficient quantity and quality

Being aware of the problem on BIDV, transaction office 1 branch has identified the primary and most important task is human resource development, which is one of the factors that ensure the Department's strategy

is successful in the future hybrid However, the development of human resources at BIDV branch 1 still has shortcomings to improve: the quality of human resources is not high, some departments still have a phenomenon of redundant staff, Therefore, it is an urgent task to achieve the long-term goal

of human resource development On the foundation of the above analysis, the

author have selected the content” Developing the human resource at Joint

Stock Commercial Bank for Investment and Development of Vietnam, Transaction Center 1 Branch» to be the research topic for the master thesis

2 Overview on the research situation

The world economic development history proved that in order to obtain the high and stable economic growth, it is essential to raise the HR quality through the way of HR training and development

For Vietnam, in order not to fall behind the general level of the advanced countries in the region and in the world, it is necessary to pay attention to the policies of renewing the HR training and development

XII National Congress Document of the Party pointed out that: establish the HR development strategy for the county, for each industry, each field, with the synchronized solutions, in which focus on the education and reeducation for the

HR in the school as well as during the process of production – business, concentrate on raising the professionalism and practice skills

“Human resource development - international experience and water practice “ta” by two authors Tran Van Tung and Le Ai Lam co-edited and written in the year 1996 Although the book focuses only on human resource development initiatives in a macro perspective But through that, it helps to deepen awareness of the role of the game 3 importance of developing human resources, as well as retrieving ways mindset in proposing solutions to this problem

Doctoral thesis: “Human resource development in small and business just in Vietnam in the process of economic integration ”by Le Thi My Linh, written in 2009 This can be seen as a useful reference for training human resources for the majority of businesses in Vietnam today, including Corporations, corporations or commercial banks After all, Compared with major foreign competitors, it can be claimed almost 100% Vietnamese business organizations are still small and medium in nature

“Developing high-quality human resources for the Vietnamese banking industry Southern period 2010 - 2020 ”by Assoc.Prof Dr To Ngoc Hung and MSc Nguyen Duc Trung, written in 2010 The article has a comprehensive approach to resource development human resources from a common strategic point of view for the entire Vietnamese banking system

In which, there are very sharp assessments on the current situation of human resources of banks today

In short, although there have been many previous studies discussing the issue of human resource development, with many good ideas that can

be inherited However, a part of the research was either written from a long time ago, or from a foreign country should be written in relatively different contexts from current conditions in Vietnam Some other in-depth studies have mainly focused on national and sector perceptions Therefore, the

BIDV Department 1 bank is still a new direction This is also the difference

of this thesis compared to other works published before

4 Research objective

The objective of research is focused on the main subjects human resourse development at Brand Center 1, including:

+ Development of

+ Trainning to raise the knowledge

+ Trainning to raise the others behaviors

In order to complete the above objective, the thesis has the research tasks as follows:

Research overview on the human resource, human resource development (1) Identify the theoretical foundation for the human resource development activities for the commercial banking field

(2) Assessment of situation for the human resource development for Joint Stock Commercial Bank for Investment and Development of Vietnam – Transaction Center 1

(3) Propose and select the solution for the human resource development for the Joint Stock Commercial Bank for Investment and Development of Vietnam – Transaction Center 1

5 Research object and scope

5.1 Research object

Research object: the matter, phenomenon which are the foundation to select the solution to human resource development for Joint Stock Commercial Bank for Investment and Development of Vietnam – Transaction Center 1

5.2 Research Scope

Content scope: The thesis only focuses on the research on the solutions

to develop human resource at the enterprise level, not the field or the national level The key objective is to develop the human resource The other objectives including the revenues, profits, customer satisfaction are considered as the reference for the main objectives

Space scope: at the Joint Stock Commercial Bank for Investment and

Development of Vietnam – Transaction Center 1

Timing scope: Study the current situation of the Joint Stock

Commercial Bank for Investment and Development of Vietnam – Transaction Center 1 during the period 2017-2019, the data was surveyed in 2019, solutions to 2022 with direction to 2030

6 Research methodology

6.1 Data collection method

(4) Primary data collection

Primary data are the data which are not available, they are collected for the first time by the researcher In fact, when the secondary data cannot meet the research requirement, or it is unable to find the suitable secondary data, the researchers will proceed the collection of primary data (Source: Wikipedia)

The method to collect the secondary data related requires to searching which includes the two connected phases:

Step 1: Identify whether the data you need exist in the form of

Step 2: Locate exactly the data that you need

Secondary data are mainly collected by the desk data method (collect the data at the desk) Such data sources include:

(1) The basic theories relating to human resource, human resource training and development

(2) Prestigious newspapers of a country which are the useful sources They are usually the reports summarizing the results of the recent reports of the Government

(3) The textbooks on the specific subjects concerning the research issue The study of secondary data will help the students to build the research model and develop the research hypothesis on human resource training and development in the field of commercial banking, to be the foundation for the appraisal of the chapter of current situations and the proposal of the solutions

(5) Collection of primary data

By survey questionnaire

The technique to collect the data, in which every person is requested to provide answers for a set of questions in a fixed sequence According to deVaus (2002)

To examine the hypothesis given from the research model, the author will design and distribute a quantitative questionnaires to the surveyed objects The survey questionnaire will include the general information on research, the questions revolving the human resource management issues through the activity based on the proposed research foundations, and the contents collected further from the people answering

Use the closed question “ Closed question is the question which the people answering will receive a set of options for they to select the suitable answers.”

Measurement scale: hierarchy scale, divided according to Likert scale (5 points, 7 points), the quantitative questionnaires with 5 is the highest level and 1 is equivalent to the lowest

Surveyed objects: will be the management board, the officers and

employees of the Joint Stock Commercial Bank for Investment and Development of Vietnam – Transaction Center 1 and the other transaction offices The number of the anticipated papers distributed is approximately 150 papers and will collect 80-110 paper with the rate of 70-100 qualified papers

Survey questionnaire design: The survey questionnaire is designed with

the clear, brief content which is easy to understand, suitable to the objective and requirements as well as the theoretical frame of the thesis

- Based on the objective and the research theoretical frame to identify the necessary information: the factors, varieties and scales;

- i) Identify the information needed and the method to use it

- (ii) Perform the composing and evaluate the questions

- (iii) Design the question table structure

- (iv) Design the question table format

- (v) Examine the complete for the last time

- (vi) Submit the survey questionnaires to the instructor;

- (vii) The instructor agrees to perform the survey

Basic content of the survey questionnaire:

- Introduction of the topic: author’s name, name of the topic, main content to be surveyed

- Explanation on the terms necessary for the survey: human resource, human resource training and development etc

6.2 Data analysis method

- Quantitative method:

the basis of the data collected from the market The purpose of the quantitative research is to provide the market conclusion through the use of the analysis method to treat the data and the numbers

Use the statistical technique to summarize the data, describe the samples, the relations and connect the varieties to each other, from that form the report with the useful information, easy to read which helps to provide the more accurate decisions There are two types including;

- Qualitative method:

This method is a form of research frequently used to survey, explore the opinions and views in order to find out the insights of the matter Besides, this method can also be used to explore the trend of the customers in the future

Qualitative research is normally the answers for the questions “how” and “why” regarding a phenomenon, behaviour etc The classic example for this method is personal interview, the interviewer will make the open questions for the interviewee to freely provide their opinions, through that, the various data can be collected, even the unexpected ones

- Content theory – CT

+ Used to explain why the demand of the human changes from time

to time? What are the elements impulse the human behaviour? What are the

driving force for the human to perform an action? (Maslow’s Hierarchy of need, Theory X Theory Y, etc)

- Grounded theory – GT

+ This is an inductive method providing a procedure to collect, compile, analyze and conceptualize the qualitative date for the purpose of building the theory

- Thematic analysis – TA

+ Thematic analysis is one of the most popular analysis format in qualitative research, it is evaluated as a flexible analysis method because it allows the flexible selection of the theoretical frame Depending on each part or the subject, the researcher can apply any theories Through this flexibility, the thematic analysis allows to describe the more various, detailed and complicated data

Besides the introduction, conclusion, references, appendix, the content

of the thesis is divided into 03 chapters:

- Chapter 1: Literature review on human resource development

- Chapter 2: Current situation of the human resource development at Joint Stock Commercial Bank for Investment and Development of Vietnam – Transaction Center 1 Branch

- Chapter 3: Proposal basis and solution to human resource development at Joint Stock Commercial Bank for Investment and Development of Vietnam – Transaction Center 1 Branch

CHAPTER 1 LITERATURE REVIEW ON HUMAN RESOURCE AND

HUMAN RESOURCE DEVELOPMENT

1.1 Several basic concepts:

1.1.1 Human resource

There are different understanding on the concept of “Human resource”

According to the United Nation: “Human resource is the professional level, the knowledge and the ability of the entire life of the people currently available, or the potential to develop society and economy in a community”

According to the scientist participating in the program KX-07:” Human resource needs to be understood to be the population and the quality of human including the physical and mental aspect, the health and intelligence, the ability and conduct of the labour”

In compliance with the text book “Human resource” of the Labour

society Publisher” Human resource includes the entire citizen with the ability

to work, not withstanding what job, field, regions they are signed to and this can be considered as the social human power”

In the narrow term: Human resource is the power of each person which includes the physical and mental health

Physical strength refers to the health of the body, it depends on the strength of each person, the living level, income, diet, working, and rest, medical system The physical health of human also depends on the age, working time, gender etc

Mental strength refers to the strength of thought, understanding, knowledge, ability, talent as well as the opinion, belief, personality of each person From time to time, in business production, the utility of the physically strength mainly, which is frequently exploited to become exhausted The

exploitation of the mental potentials of the human is still new, it will never be exhausted because this is a mysterious treasure of each person

In the broad term: When considering each organization or enterprise, the human resource is the entire manpower of such organization or enterprise Therefore, it can be said that human resource of an organization includes all the employees working in such organization The term of “manpower” or “human resource” is not strange in Vietnam in the recent year This is because of its roles

to all the industries If only mentioning the economic field, we cannot develop, cannot have profit effectively if the manpower is not equivalent to the development of machines, technical science – that is almost the law of all economies

Therefore, manpower can be understood as the entire ability on physical and mental strength of the human, which is applied in the process of working and production It is also regarded as the labour of human – one of the most valuable resources amongst the production elements of the organization In addition, the human resource of the organization also includes all the beautiful personality, life experience, creativity and the enthusiasm of each employee in the organization

From the above concept of “Human resource”, the term of “library human resource” can be defined as follows:

Library human resource is the human resource with profession, knowledge, ability or potential participating in the library activity to maintain and develop this field

Human resource with the status of the research object of the management science, human resource is the entire officers and employees of

an organizations and is understood to be the manpower resource and the personnel matter in an organization or an enterprise, which is the central

object of the manager, as well as subject of the activity and development driving force of such organization

1.1.2 Human resource development

Human resource of a country in general, of a body and even of a family need to be developed Human resource development is the investment activities aiming at creating the human resource with the quality and quantity meeting the demands for socio-economic development of the country, at the same time, ensure the development of each individual [6] Applied in the field

of library, the library human resource development is the investment activities

in the library field to create the human resource with the quantity and quality satisfying the development demand of the industry, at the same time, ensure the development of each individual

Development consists of the activities to prepare for the employees to

be able to adapt and catch up with the organizational structure when it changes and develops

Food and Agriculture Organization United Nation (FAO): the human resource development is like a process of expanding the ability to participate efficiently into the agricultural development, including the increase of productivity capability

Concept of International Labour Organization (ILO): Human resource development, includes a broader scope but not only refers to the profession control or even the training in general This concept is based on the conception that, human has the demand to use their ability to have the effective work, as well as the job and personal life satisfaction The skill is completed thanks to the supplementation of the knowledge during the process

of living and working to meet the expectation of human

The concept which considers “human as the capital – human resource capital” states that” human resource development is the investment activities

to create the human resource with the quantity and quality to meet the demand

of socio-economic development of the country, at the same time, ensure the development of each individual”

The opinion of the researchers of UNDP said that: ”Human resource development is under the impacts of five elements: education – training, health and nutrition, environment, work and human emancipation During the process

of affecting the human resource development, these elements always unite, support and depend on each other, in which, education- training is the foundation element, the basis of all the other elements The elements of health and nutrition, environment, work and human emancipation are the vital elements, aiming at maintain and meet the substantial development of human resource The more the production develops, the larger proportion of intelligence through education – training contributes in comparison with the contributions of other elements in the structure of labour product value” (Bui Thi Thanh, 2005)

The concept on using human ability of ILO mentioned that:” Human resource development includes not only the skill control, but besides the capability development, it is to make human have the need to use such ability

to have the efficient work as well as satisfy the work and personal life”

According to Nguyen Minh Duong’s opinion:” human resource development is understood to be the increase in human value in the matter of intelligence, working skill, physical strength, conduct, soul etc so that they can participate into the labour force, make their country rich, contribute to the improvement of the society, as well as promote the tradition of the nation and contribute to the colorful picture of the mankind Therefore, human resource development should be implemented in the three sides: personality development, organism development, at the same time, create the favorable social environment for the human resource to develop (Tran Khanh Duc, 2002)

On the micro point of view, there is the opinion that:” human resource development in the enterprise is the process of implementing entirely the policies and measurements to attract, maintain and train the human resource

in order to complete, improve the human resource quality in the three aspects

of physical, mental, and spiritual strength, adjust reasonably the scope, and structure of the human resource substantially and efficiently” (Nguyen The Phong, 2010)

With the above point of view, the concept of human resource development includes:

- Regarding the objective, human resource is the completion and improvement of working ability and creativity ability of the man power in the enterprise to be suitable with the work currently and adaptable to the new changes in the future

- Regarding the character, human resource development is the continuous and strategic process in order to enhance the capability of the enterprise in human resources

- Regarding the content: Human resource development includes: rationalize the scale and structure of human resources and improve the quality of human resources In which, development of the human resource in terms of quality ( in the three aspect of physical, mental and spiritual strength) is the main content

- Regarding the method, human resource development is understood to be the overall implementation process of policies and measures to attract, maintain and train "strategic investment" for the enterprise's human resources

There is no enterprises which do not wish for development, market influence; In order to achieve that, it does not only requires the strong financial capital but also the human resource with high quality and used efficiently This depends on the work of using the human resource of each Company

1.1.3 Roles of human resource in commercial bank

The important role of human resource in commercial bank is demonstrated by:

First, human resource is the element directly participating in the process of planning the strategy, build the plan, program, project, build the professional procedure and behaviour rules, to be the foundation to direct for the entire activities in the commercial bank

Second, the human resource is the subject operating, controlling the technological infrastructure, implementing the plans according to the planned procedure; working with the state bodies, with the partners and customers; interacting with the colleagues; controlling the money flows and other resources under the management of the commercial bank

Third, human resource is the source producing the new ideas, helping the completion of the professional procedures, from that raise the system efficiency, save the costs, reduce the risks for the commercial bank

Forth, human resource is the energy to step by step condense the enterprise culture value, build and maintain the brand and the character of the commercial bank

Fifth, human resource with the ability to operate by itself, combining with the policy to develop the human resource of the organization, continuously change to adapt to the new environment, new technology; especially, through that, foster the excellent individuals, the top experts in the field of finance, to be the successors for the substantial development of the commercial bank

It can be seen that, similar to almost any other fields and profession of life, human resource is the driving force, the objective for the development in the commercial bank

1.1.4 Tasks and objectives of human resource development

- Help the enterprise to raise the productivity and the business production efficiency Maintain and raise the quality of the human resource, create the comparative advantage for the enterprise

- Avoid the out of date management The managers should apply the management solutions in order to be suitable to the changes in technological and technical procedure and business environment

-.Resolve the organization issues Education and training can help the managers to resolve the issues of disputes, conflicts amongst the individuals and between the union and the management, propose the policies of human resource management of the enterprise to be effective

- Provide work guidance for new employees New employees usually encounter difficulties, being at fault at the beginning of their work in the organization, enterprise, the work orientation programs for the new employees will help to to adapt quickly to the new working environment of the enterprise

- Prepare the inheritance officers for management and profession Train and educate for the employees to have the necessary skills for the promotion opportunities and to be able to replace and profession and management officers when necessary

Regarding the employees:

- Create the professionalism and the attachment between the employees and the enterprise

- Directly help the employees to perform the work better, especially when the employees cannot meet the standard requirements or when the employees have just received the new work

- Update the new skills, knowledge for the employees, support them

so that they can apply successfully the changes in technology and technique in the enterprise

- Meet the development needs and desire of the employees When being equipped with the necessary specialized skills, the employees will be encouraged to perform the work better, to achieve better results, they will want to be assigned with more challenging tasks with more promotion opportunities

- Make the employees have the vision, new way of thinking in their work, that is also the foundation to promote the creativity of the employees in the work

1.2 Human resource development procedure

Human resource is considered to be the base of the enterprise and to be one of the important factors during the process of forming such value chain;

as a result, the human resource development in many companies is regarded

as the top priority of every company and enterprise That is a correct concept However, at many organizations, the work of human resource development is happening but actually does not bring the right value that the managers expect The acknowledgement of the procedure and implementation will help the leaders to understand the objectives as well as identify more correctly the methods to be applied to reach the desired aims In summary, education and development of the human resource in the enterprise needs to follows a certain procedure in order to bring the high efficiency The author proposes the standard human resource development procedure for the enterprise in the following model:

1.2.1 Identify the scale and number of human resource

This step focus on the matter of ensuring the sufficient number of the employees with the suitable products with the work of the enterprise The quantity and scale of the human resource must be complied with the development objectives and strategies of the organization The objectives can only be achieved when the current demand and the ability to meet the demand

in the future is identified of the human resource Also, it is necessary to pay attention to the quantity as well as the increase in quality of the human resource Human resource is reflected

Criteria to determine the scale of the human resource:

1) The general number of the organization as well as of each department

2) The changes of the human resource through the years

The objective of the quantity revolves around the positions who are currently working in the enterprise The shortage of too many important personnel may affect the operation ability as well as the productivity

However, the abundant recruitment will make the organizations waste its resource and economic capital

The author uses the method of the employee proportion to forecast the human resource source Specifically:

Employee proportion: directly work over indirectly work is used to calculate the number of the employees necessary for the different work For example, if the table production company usually have 1 supervisor for 20 employees; accordingly, 10 supervisors will need 200 assemble employees The past experience only point out that on average, every 50 employees need

3 employees for the handover This means that the company need 12 handover employees Forecast for the productivity and employee proportion based on the assumption of the necessary employees will increase linearly with the quantity of work to be completed

1.2.2 Establish the human resource structure to met the objectives, tasks of the organization

Human resource structure Human resource structure is the vital element when considering human resource evaluation Human resource structure is presented on different aspects such as: education level structure, gender, age etc Human resource structure of a nation in general is determined by the education structure and the economic structure; accordingly, there will be a certain Proportion of human resource For instance, the human resource structure working in the section of private economy of the countries in the world is commonly 5-3-1, specifically, 5 technical workers, 3 vocational school and 1 engineer; for our country, such structure is partially reverse; which means the number of people with bachelor and post graduate level is more than the technical workers (3) Or the human resource structure in terms of gender in the public sector in our country also demonstrate the imbalance (4)

A human resource structure suitable for the objective, requirement, mission of the organization means that the components, roles, and proportion

of the elements of such human resource must originate from the objective, mission of the organization in order to establish the structure to be reasonable and such structure must be followed tightly to serve the objective of the organization The types of the structure mentioned are:

- Human resource structure according to the functions

- Human resource structure according to professional knowledge Besides, gender, age are also used to analyzed the human resource structure in order to find the method to exploit the potentials as well as manage the human resource of the organizations

1.2.3 Raise the professional knowledge, specialization and skills of the human resource of the organization

In the improvement of level, specialization, skills of the human resource of the organization, if, the State plays the determinative role, through the establishment of the mechanism, policy, resource, training facility etc., the enterprise also plays an important role in the implementation of the policy Because, the enterprise itself, if there is always demand for the qualified labour, they must be active in recruitment, training and improve the quality of the employees of their own enterprise At the same time, each enterprise needs to build a management mechanism and the treatment policy to be suitable for the contribution of the employees From that, attract the labour source with skills from the other fields to work Therefore, the improvement

of specialization and skill of the labour source is performed through the training work

Raising the specialization, professional skill is by nature the improvement

of training level, development of the professional ability for the employees to meet the requirements of the current tasks and the strategic objective in the future of the organization

Training is the study activity aims at helping the employees to receive and practice the necessary skills to implement efficiently their tasks, missions, and power This is the indispensable solution to raise the quality of human resource The goal of training is to enhance the professional knowledge and the working attitude of the employees, through that, help the organization to use effectively at the maximum level of the current human resource in order

to perform well the objectives set at the present as well as in the future of the enterprise Raising the quality of the human resource to create a human resource who work more effectively, master the knowledge and specialized skills, have certain experience and skill, have the ability to deal with and solve the rising problems, have the suitable attitude and working manner etc

As a result, training is the suitable solution and bring the high effect to help the employees to complete the above requirements

Most of the enterprises select the training solution to raise the quality of human resource Through training, the employees will be supplement with the specialized knowledge, the lacked skills to perform better the assigned work Training also helps the employees to understand clearer the work, their profession, handle better the situation arising in the work, be more self-conscious, have better working attitude, raise their adaptability in the future From that, the work quality, work efficiency will be raised, which also proves that the quality of human resource is enhanced When performing the training, the enterprise should pay attention to: training must orient to the implementation of the objectives of the enterprise, it must originate from the training demand, training must be attached to the use of manpower after training, the organization of the training process must ensure that it does not negatively affect the production – business and the work of the enterprise Enterprise may select the formats of training such as:

- Training at the beginning of work reception: When starting the work,

majority of the employees are not familiar with the work so this training will help them to get acquainted with the work, master the organizational structure, functions and tasks, the character of production – business, the work and the relation of the organization, the enterprise; help the employees to be equipped with the necessary knowledge, skill to complete well the assigned tasks

- Training while working: This training method help the employees to

overcome the limitations on knowledge and skills to complete better their responsibilities, tasks assigned according to their title At the same time, the employees will receive the new knowledge and skills thanks to the changes of engineering, technology and the new requirement 25 of the enterprise The kinds of method applied in this situation includes:

+ Work guidance + Organization of the training classes for the employees + Send the employees to work at the specialized classes to serve the work

- Training for the future work: This training serves the development

purposes in the future of the enterprise of the employees This form of training usually has two formats:

+ Training to serve the development objectives and direction of the enterprise: the employees will be equipped with the knowledge and skills that in the future they must have or at the current, they must have so that the enterprise will achieve the goal set in the future

+ Training to serve the development objective in the future of the employees: the enterprise will train for the employees with the necessary skills and knowledge for the employees in the future can hold a more important, suitable position for their desire

1.2.4 Raise the awareness of the human resource

In order to raise the quality, in the first place, the employees must acknowledge the suitability of themselves to the work, what kind of knowledge, skills, quality they need, from that, be self conscious, active to study to improve the professional knowledge, skill, and accumulate the knowledge and experience for themselves Because the improvement of the human resource quality does not come from the enterprise but the employees themselves must wish to and have the cooperation attitude so that it will be implemented easily and the efficiency will be the highest Besides, raising the awareness of the human resource can be understood to be a process from experience cognition level to theory, from the information cognition level to science

Criteria to assess the cognition of the employees to the organization

1) Discipline organization consciousness, spirit of cooperation and volunteering;

2) Has responsibility, love the job, be active in work;

3) Demonstrate in the social relations, attitude in communication and behaviour in work and life

1.2.5 Raise the motivation the human resource

To raise the force to motivate the employees to actively study, work to enhanced the labour productivity, the work quality, the enterprise can use the lever to boost the material and spirit For the activity of raising the human resource quality, the use of the material and spiritual motivation method brings the significant results Through such method to impact the employees, create the motivation for them to develop themselves, raise the ability with the expectation to contribute more for the enterprise to receive more benefits

- Salary and bonus policy: This policy plays an important role to re-produce the lablour at the enterprise in general and at the commercial bank in particular

policy is reasonably, the salary payment level is formed with the scientific basis, the salary structure is equivalent and the payment form is suitable

- Work characteristics: This is an important factor in motivating the employees Hackman and Oldham said that, the work has the essential character and there is a internal driving force, from that, the employees will

be stimulated to raise the work productivity according to each kind of work With the application of the international management experience in the world, the banks has the clear work division at the departments, basically design the work description for each department, position etc In addition, currently, the department, basically, the young people have knowledge, are trained properly domestically and overseas, easily to receive the new knowledge, are able to withstand the high pressure, prefer the challenging and interesting work etc

- Working environment: is the place the employees are attached to the entire working time, it is the place happening the work performance of the employees, including: The working condition and the promotion opportunities

- Performance evaluation: it is the process of assessing the work completion level of the employees according to the set objectives during a period This activity aims at improving the work performance ability of the employees and help the leaders of the enterprise to provide the correct personnel decision such as training and development, payment, promotion etc., Normally, the performance evaluation includes the identification of: evaluation objectives; evaluation criteria; evaluation method, evaluation objects, evaluation timing and cost

- Training: Human resource training has a great meaning to the enterprise

in general and the commercial bank in particular Through the organization of the training courses, the work performance will be increased, help them to raise their new skills and knowledge In order for the training to have high result, the commercial banks should: identify the current level and ability of

the employees, perform the work analysis to know the work requirements, identify the development strategy of the bank, the objective and strategy for the human resource development of the bank etc

- Spiritual activities: The spiritual factor is considered to be the motivation for the employees, contributing to accelerate the working spirit for the employees to work wholeheartedly

CHAPTER 2 SITUATION OF HUMAN RESOURCE

DEVELOPMENT AT JOINT STOCK COMMERCIAL BANK FOR

INVESTMENT AND DEVELOPMENT OF VIETNAM –

TRANSACTION CENTER 1 BRANCH DURING 2017-2020

2.1 Introduction on the Joint Stock Commercial Bank for Investment and Development of Vietnam – Transaction Center 1 Branch

2.1.1 Information about the Joint Stock Commercial Bank for Investment and Development of Vietnam – Transaction Center 1 Branch

Full name: Joint Stock Commercial Bank for Investment and Development of Vietnam - Transaction Center 1 Branch

Address: Tower A, Vincom Building, 191 Ba Trieu, Hanoi

Established from 28 March 1991, during the period “ Bank for Investment and Development of Vietnam” attached the transformation process of BIDV from

a state-owned commercial bank to operate in the mechanism of a commercial bank, follows the market principles and open direction of the economy

In 1990, chairman of the ministerial council issued the Decision No 401/CT regarding the establishment of the Bank for Investment and Development of Vietnam on the foundation of changing the name of Bank for Investment and Construction Vietnam However, this is not plainly the change

in the third time of the Bank but actually reflected the strong change in the operation function of BIDV actually, in the role for the economy that BIDV in charge: transform from the investment period of simply “construction” to the new state of quality investment to “grow”, to promote “develop” BIDV is not merely providing a service for construction activities, but has turned to act as

a "driving force for development"

From this, BIDV center 1 really changed to operate in the format of commercial bank, in the space of open – integration to the world The new

name as well as the actual operation of BIDV marked the dramatic growth of BIDV center 1- in terms of quality (mechanism) as well as size (scale and market rank) Particularly, during this period, BIDV center 1 changed to the new operation method which is “borrowing to lend” therefore, the focus is mobilize the domestic and international capital to lend to the production and business projects according to the state planes, saved the production from the lack of capital when the State stopped the non-refunded supply for the enterprise

BIDV Center 1 continued to develop and meet well the tasks of serving, accelerating the market economy of Vietnam to develop in the direction of socialism Getting out of the collectivistic mechanism, BIDV center 1 identify for itself a new development fund, suitable for the international and era develop logic, confidently to enter the world of opening – integration, accept the competition and make progress BIDV Center 1 move to period of expanding the business activities to be diverse, in many fields, on a large market and be more competitive, with the confirmation of the brand and the position is getting more and more stable on the financial and banking market

During this period, especially from 1996, BDIV Center 1 step and step eliminated the “credit monoculture” in the banking field, concentrated on the capital mobilization, developed strongly very kind of service, raised the proportion from the monetary service and business Retail banking activities were just newly performed by BIDV since the early of 1990s, with the first business is to mobilize the capital from the citizens The retail banking system later developed strongly and actually had the basic changes in terms of characteristics – when being considered according to the market economic standard -only from 2009 Along with the development of the commercial bank business activities, BIDV Center 1 proceeded with the investment

that, formed the model of financial – banking corporation with the pile to be the bank, the insurance and the financial investment

From the position of just a financial institution established to serve the State and the State-owned enterprise, nowadays, BIDV and BIDV center 1 come back to the “original” function of a bank: serving the enterprise, serving the market subjects – by the market tools and according to the market rules

To meet such changes, the management activities of BIDV starts to approach the international standards and practices, at the same time, step by step becomes an international market subject

During this period, financial crisis as well as economic recession of the world (2007-2008), BIDV always proved to be a positive supportive force, pushing strongly the enterprises, even the enterprises in the private sectors Particularly, BIDV declared the solution of self- investment to expand the activities in the international market – opened the representative offices and branches overseas, at the same time, actively searched for opportunities, opened the way, supported and promoted the Vietnamese enterprises to invest overseas

Looking at the development process of BIDV and BIDV center 1, during the operation period under the name Bank for Investment and Development of Vietnam, with the changes and implementation of the multi-functional business model, complying the modern commercial bank model with the trend to expand the retail banking activities has outstanding development in terms of scale, quantity and quality, BIDV and BIDV center 1 lead to be one of the top domestic and international, with sufficient competitive ability to participate in the global field

Period from 2010- present

Period “Joint Stock Commercial Bank for Investment and Development

of Vietnam” is a strong development of BIDV as well as BIDV center 1 in the integration course That is a basic and practical change in terms of

mechanism, possession and operation method when BIDV capitalized successful, became a joint stock commercial bank operating fully in accordance with the market law with the direction of international integration and competition

This is the latest period in the development history of BIDV and BIDV center 1 However, this is only a short period in the rich tradition of BIDV but

it is attached with the three large character of the development scenario:

First, this is the period which has the situation of the world economy is encountering many difficulties, which impacts strongly, in the direction of increasing the challenging, the Vietnamese economy has the wide opening and is facing many difficulties in terms of structure

Second, the economy of Vietnam must now resolve at the same time the two missions: (i) recover growth, overcome the “blocks” and the situation

of macro instability, stabilize the economy; (ii) perform the economy restructuring and reform the growth model as the core strategic task

Third, BIDV is performing the capitalization according to Decision No 2124/QD-TTg of the Prime Minister

During this period, the mission function of BIDV basically is still supplying the capital for the economy to resolve the project buildings at the national level However, during the situation of new development, the economy has just started to coming overseas, there should be strong ships to facing the great challenges, which creates a motivation situation for BIDV and BIDV center 1 to accelerate the process of reformation itself in the scope

of the economic restructuring

On 28 December 2011, BIDV performed the capitalization successfully through the bidding of shares for the first time to the public (IPO) On 27 April 2012, BIDV officially changed to the joint stock commercial bank On