Solutions to improve the efficiency of human resources management in thang long ha noi 1000 year construction joint stock company

Thang Long Ha Noi 1000 Year Construction Joint Stock Company is a professionalcompany operating in the field of investment and capital construction.. Hoping to contribute to the developm

1 Introduction

The capacity of an enterprise is formed by such factors as finance,facilities, intangible assets, technology, people, etc., in which people willmanage, use and exploit the elements remaining Therefore, the human factor

is a sufficient condition to determine the existence and development of anenterprise

Vietnam has begun international integration Thang Long Ha Noi 1000Year company has prioritized investment in human capital It is the high-quality workforce that will contribute to increase profits for businesses.Running against foreign enterprises, many Vietnamese enterprises havelaunched the plan of "Attracting talents" The race to win human resourcesaccelerated after Vietnam joined the WTO

Together with other economic sectors, the construction industry hascontributed to creating a modern and civilized image of the City Thang Long

Ha Noi 1000 Year Construction Joint Stock Company is a professionalcompany operating in the field of investment and capital construction Hoping

to contribute to the development, increase the capacity of the companythrough human factor and with the consent of the Board of Directors, I choosethe topic "Solutions to improve the efficiency of human resourcesmanagement in Thang Long Ha Noi 1000 Year Construction Joint StockCompany ”as a graduate thesis

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2 Research objectives

Based on the analysis of the current situation of human resourcemanagement activities, to propose a number of solutions to improve theefficiency of human resource management at Thang Long Ha Noi 1000 YearConstruction Joint Stock Company to develop and collect attracting, trainingand retaining human resources to meet the increasing scale needs of theCompany

3 Scope of the research

The scope of the research is to analyze and evaluate the humanresources of Thang Long Ha Noi 1000 Year Construction Joint StockCompany in the period of 2016 - 2019

5 The structure of the report

Besides the introduction and conclusion, the report consists of threemain chapters as follows:

Chapter 1: Rationale for human resource management

Chapter 2: Current situation of human resource management in the company

Chapter 3: Solutions to improve the efficiency of human resource management in the company

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Chapter 1 THEORETICAL BASIS ON HUMAN RESOURCE MANAGEMENT

1.1 The concept and the role of human resources

1.1.1 Human resource management concept

Depending on different understandings and approaches, there aredifferent perspectives on human resources From a macro perspective, humanresources are the working age population The General Statistics Office whencalculating social human resources also includes people outside the workingage working in national economic sectors From a macro perspective in anenterprise, the human resource is the labor force of each enterprise, thenumber of people on the list of enterprises paid by the enterprise “Humanresources of an enterprise are formed on the basis of individuals with differentroles and linked together with certain goals Employees have differentcapabilities, personal characteristics, development potential, ability to formunions, trade unions to protect their rights, can assess and ask questions Withthe administrator's animations, their behavior may change depending on

themselves or the impact of their surroundings ” (1) From both macro andmicro perspectives, it shows that human resources are all human potential in

an organization or society (including members of the board of directors) Allmembers of the business use their knowledge, ability, conduct and ethicalvalues to establish, maintain and develop the business Human resourcesinclude experience, skills, training and dedication, effort or any othercharacteristics that create added value and competitiveness for workers'organizations Therefore, human resource management is the overallcoordination of planning, recruiting, recruiting, maintaining, developing,

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encouraging and creating favorable conditions for human resources through organizations, in order to achieve their strategic goals and vision.

(1) (Source: Tran Kim Dung, Human Resource Management, Statistical Publishing House, 2006, page 1)

1.1.2 The basic role of human resource management

For employee service goals, managers must help their employeesachieve their goals Within the organization, this goal is measured by jobsatisfaction, reflected in organizational commitment and positive work

While the classical theory of human resource management is concernedwith a single quantity, which is to improve profitability for shareholders, themodern corporate governance theory of human resources focuses onharmonization and the optimal balance of quantities belongs to the followinggroups of beneficiaries

- Customer

- Staff

- Shareholder

- Environment (social and ecological)

1.2 Basic activities of human resource management

1.2.1 Human resource planning

1.2.1.1 Concept

Human resource planning is a process of actually implementing plansand programs to ensure that the right agency will have the right number, theright people, the right place, the right place and the right place

1.2.1.2 Human resource planning process

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There are 4 steps:

 Step 1: Set demand and forecast demand

Forecast of human resources demand: after forecasting demand forproduction and business, the administrator will base on that forecast thedemand for human resources specifically as: product units will be produced ,how much revenue and how much labor is needed

Forecasting the availability of human resources: The administrator mustdetermine where the personnel supply will come from Many of the availableworkers in the agency will meet future needs, but there are also cases wherethe number of existing workers lacks skills and is unable to take on futurejobs

Therefore, administrators must manage records scientifically to be able

to grasp the capabilities of their employees and from there, administrators caneasily forecast human resources

 Step 2: Set policies

After experts analyze and contrast the needs and capabilities of thecompany based on the information system, the human resources managementdepartment will propose some specific policies, procedures and plans If thecompany is able to supply on demand, it should apply the old policy orrearrange it In case of redundancy, what are the company's policies andactions? And in case of a shortage of employees, the company needs to havespecific policies and plans In both cases, the HR Manager should considerand calculate to suit the company's budget and submit it to the Director forapproval

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 Step 3: Implement the plan

- Employee shortage (lack of employees): In case of shortage ofemployees, the administrator must carry out programs such as transfer,promotion, demotion, recruitment, selection of employees in order tosupplement promptly employees in accordance with the job, the ability ofemployees

In short, in the company that lacks employees, managers must find ways to rearrange human resources in a reasonable manner

- Surplus staff: in the case of surplus the administrator will apply the following measures:

+ Restrict recruitment

+ Reduce labor hours

+ For early retirement

+ Stretching workers - a temporary break

 Step 4: Check and evaluate:

At each stage, the administrator must regularly control whether theplans and programs are in line with the set goals It is necessary to evaluatethe plans to gain experience

To do the forecast job Administrators must use the company'sinformation systems, records At the same time, administrators can apply thefollowing methods:

- Analyzing trends

- Using computers

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- Judgment of the management level - Delphi Technique

1.2.2.2 Work analysis process

Define purpose, using job analysis

information

Gather basic information

Gather job analysis information

Check information with members

Implement job descriptions and jobstandard description tables

Figure 1.1 Job analysis procedure

(Source: Nguyen Huu Than, based on Gary Dessler)

1.2.2.3 Methods of job analysis

 Questionnaire

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Figure 1.2 Recruitment process

(Source: Nguyen Huu Than - Human resource management, according to

R Wayne Monday and Robert M Noe, Op Cit p.175)

When planning human resources, managers find that it is necessary toadd labor Administrators can first find other methods to meet the needs ofpersonnel

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 Overtime: This is an emergency solution in the peak seasons, thissolution, though expensive, helps the company not to recruit more workers.However, this also causes difficult problems: tired workers and lack ofenthusiasm at work, inefficient work.

 Temporary employees: Hiring employees for a short time

If applying the above measures does not solve the human resource problem, we will recruit in two directions:

 External sources

Recruitment sources

- Staff friend

- Former employees (former employees of the company)

- Candidate applying for a job

Recruitment method

- Advertisement

- Dispatch recruiting staff to schools

- Through referral staff

- Other methods

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1.2.4 Training and developing human resources

For a newly established company, the need to train our employees isthe most urgent and important task Because even if we install a sophisticatedsystem of machinery that no one knows how to control it also becameuseless Not to mention the intangible operations such as management skills

1.2.4.2 Human resource development process

External environment

Internal environment

Define training and development needs

Set specific goals

Choose the appropriate method

Select the appropriate means

Implement training and development programs

Evaluation of training and development programs

Figure 1.3 Process of training and developing human resources

(Source: Nguyen Huu Than, Human resource management according

to R.wayne Monday and Robert M Noe, op Cit, p 272.)

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Once the training and development needs are clearly defined, theadministrator must set specific goals such as: "Does the company need anytraining?" and “What does the company want to accomplish throughtraining?”.

Training and development is an ongoing process, administrators mustregularly check and evaluate that the program has met the goals and needs setyet

1.2.4.3 Methods of training and developing human resources

 Management training methods:

Salary is one of the motivations that motivate people to work hard, but

at the same time it is also a cause of stagnation, contentment, or the departure

of a company It all depends on the qualifications and competencies of theadministrators

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Salary and remuneration are all about the reward an individual receives

in exchange for his labor

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1.2.5.2 Elements of a salary regime and remuneration

+ Socialsecurity

+Compensation

+Educationalallowance+ Services

- Absent pay+ Summer vacation

+ Holidays+ Sickness

The work itself

- Delightful missions-

Responsibili

ty-Opportunity

to becertified bysuperiors

- A sense ofaccomplishment

- Promotionopportunities

Working environme nt

Reasonablepolicy

Skillful test

- Co-working colleagues

Comfortabl

-e workingconditions

- Activeworkinghours

- Work from home online

Figure 1.4 Elements of wages and employee compensation

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(Source: Nguyen Huu Than, Human Resource Management, Labor

-Social Publishing House, 2007, page 373)

Salary and remuneration include two parts: the financial and financial remuneration The financial part includes direct and indirectfinancial items

non-Direct finance includes daily wages, monthly salaries, commissionsand bonuses Indirect finance includes plans that some companies in Vietnamhave applied, including life insurance, health insurance, surgery and all kinds

of social benefits; types of benefits include retirement plans, social security,compensation for employees working in hazardous environments

Although full of financial and non-financial factors mentioned above,but if this program is subjective and biased, it will not bring the desiredresults Therefore, the compensation and remuneration program must be fair

1.3 Environment affects human resource management

Any activity of an organization is influenced by two groups of internaland external environmental factors The external environment includes suchfactors as: economic context, population and labor force in society, state laws,social culture, competitors, science and technology, customers and massgovernment The internal environment includes the mission and purpose ofthe company, the cultural atmosphere of the company, its shareholders andultimately the union The following diagram shows an overview:

17Labor force

(Source: Nguyen Huu Than, Human Resource Management, Labor

-Social Publishing House, 2007, page 58)

Through the diagram above, human resource management is affected

by 3 floors The outer layer is the macro environment which called theexternal environment The 2nd and 3rd floors are the internal environment.External environment greatly affects the operations of the company Afteranalyzing the external environment, the company will set its orientation,mission and goals From this goal, the company will devise strategies andpolicies for the entire company This stage is called strategic planning by theBoard of Directors after consulting from the management

1.3.1 Internal environment

The internal environment is the element within the company Theinternal environment is primarily the mission, the company's goals, itspolicies and strategies, and the corporate cultural atmosphere Shareholdersand unions also have a significant influence

 Mission and goals of the company: Each company has its own missionand goals Each level of management must understand its company's mission Infact, each department must have its own goals The purpose or mission of thecompany is an internal environmental factor that affects specialized divisionssuch as manufacturing, sales, marketing, finance and human resourcemanagement For example, for a company that always pioneers in launchingnew products to the market, it is necessary to create an atmosphere of creativeculture to nurture and promote new initiatives

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 Company policies and strategies: The company's policies often belong

to human resources These policies are often a guideline rather than a rigid rule,

so they are flexible and require explanation and consideration It has animportant influence on the way business executives work, for example if thecompany has an "open door" policy that allows employees to take problems up

to a higher level if not addressed at the direct level manages themselves

 Cultural atmosphere of the company: In every organization, there aresystems or models with values, all of which develop over time These sharedvalues determine how they should respond to their world when dealing with orfacing difficult problems, and the culture of the organization will limit whatemployees will do how to suggest a correct way to synthesize, identify, analyzeand solve a problem The corporate culture atmosphere is the social andpsychological atmosphere of the business it is defined as a system of values,beliefs and habits shared within an organization that impacts the formalstructure that creates behavioral standards

 Union: Trade union is located next to the government but is moreindependent in order to protect the rights of workers Its role is often associatedwith the government taking care of the lives of employees throughout thecompany, attending meetings related to profit sharing, bonuses, discipline,increase or decrease of wages, layoffs and embezzlement issues

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1.3.2 External environment

The external environment is factors such as economic context,population/labor force, State laws, competitors, science and technology,customers and politics

 Economic context: in the period of economic recession or economicinstability which tends to go down, companies need to maintain a skilled workforce and at the same time reduce labor costs The company must decide toreduce working hours, allow employees to take a break, fire or reduce benefits

In contrast, when the economy develops and tends to stabilize, the companyneeds to develop and has a stable trend, the company needs to develop newworkers to expand production and increase training Training Employees Thisexpansion requires the company to recruit more qualified people, raise wages,increase benefits and improve working conditions

 Population / labor force: Our economy is gradually moving towards amarket economy while the population is growing very fast The annualworkforce needs more and more jobs Vietnam is in the process of integration,

so there is a shortage of skilled workers, experts and managers

 State law: Our country's labor law has been enacted and applied Wealso have labor laws for Vietnamese employees working in investment, jointventure or 100% foreign owned enterprises Clearly, the laws of the stateinfluence the development of resources of businesses Companies are no longerfree to do whatever they want The legal system forces businesses to pay moreand more attention to the rights of employees and the ecological environment

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 Social culture: the social culture of a country greatly influences thedevelopment of human resources In a social culture, there are too many caste,the social ladder does not keep up with the development momentum of thetime In Vietnam, there are many feudal families, which the head of the family -usually the man - almost decided everything and the woman was often passive

in acceptance This results in a company culture is also difficult to be dynamic

It is the cultural style at home that has led to the passivity in the offices inVietnam

 Competitors: in a market economy, managers not only compete inmarkets and products but also in human resources Currently, businesses areaffected by a competitive and challenging environment In order to survive anddevelop, it is necessary to effectively manage human resources Humanresources are the most valuable resource, companies must take care of, maintainand develop

 Science and technology: In the era of industrial development, In order

to be competitive in the market, companies must improve their techniques andequipment This change greatly affects the human resources of the business Inthe future, the most challenging area for managers is the training of itsemployees to keep up with the rapid development of modern and advancedscience and technology This change requires more capable employees andhiring these people is not easy As science and technology change, some jobs orcapabilities are no longer needed The company therefore needs to retrain itscurrent workforce

 Customers: Thang Long Ha Noi 1000 year trying to find a commonvoice with partners and customers with the concept that all problems

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can be solved satisfactorily in the spirit of respect for fairness, equality,ensuring harmony in the interests of the parties The company alsodetermined that only goodwill cooperation can bring good results andhelp all parties develop and progress together The development andprogress of each enterprise is the foundation for the overalldevelopment of the whole society Contributing to this developmenthas been identified as an important mission of the company.Competition in the spirit of peace is the way of thinking and doingthroughout of the Leadership and all employees in the Company.

 The spirit of cooperation and competition by peaceful means should bemaintained in any circumstance because this spirit is considered as one of thecore values of the Company Together with customers and partners, Thang Long

Ha Noi 1000 year will forever exist with this spirit and strategic mission:

"Strengthening forces - Conquering the peak" cannot be achieved if the Board ofManagement fails properly enforce this spirit

 Government and unions: Government agencies or unions also affecthuman resources In Vietnam, the Ministry of Labor, War Invalids and SocialAffairs and the Labor Confederation also have certain effects on the humanresources of the enterprise

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Chapter 2 CURRENT SITUATION OF HUMAN RESOURCE MANAGEMENT AT 1000 YEAR THANG LONG HA NOI CONSTRUCTION JOINT STOCK COMPANY

2.1 Company introduction

2.1.1 Establishment and development process

Company name: 1000 YEAR THANG LONG HA NOI CONSTRUCTIONJOINT STOCK COMPANY

Short Name: 1000 YEAR THANG LONG HA NOI CONSTRUCTIONJOINT STOCK COMPANY

Abbreviated name: 1000 YEAR THANG LONG HA NOI., JSC

Headquarters: Collective company road road 230 Duong Xa Gia Lam Hanoi

Thang Long Hanoi 1000 Year Construction Joint Stock Company operateswith the following main business lines:

 Construction of civil, industrial and transport works

 Construction, repair and maintenance of telecommunication works

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 Manufacture, assembly, maintenance of electronics, refrigeration and generators.

 Machine, constructive equipment for hire

 Producing and trading construction materials

 Buying and selling construction materials, construction equipment

 Construction and installation of electrical projects

 Transporting goods and passengers

 Manufacturing and processing of mechanical products

 Supervision of construction and finishing of civil and industrial

 General Meeting of Shareholders

The General Meeting of Shareholders is the highest authority of theCompany, has full power to decide all activities of the Company and has thefollowing duties:

 Approve the Charter, business direction of the Company;

 Electing and dismissing the Board of Directors and the Supervisory Board;

 Other duties as stipulated by the Company's Charter

 Administrative Council

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The Board of Directors is the highest management organization in theCompany with the following duties:

 Report to the General Meeting of Shareholders the business situation,expected profit distribution, dividend distribution, financial statementsettlement, development directions and production and business plans of theCompany ;

 Decide on organizational structure, apparatus, operation regulations of the Company;

 Appoint, dismiss and monitor the activities of the Director;

 Proposing to amend and supplement the Charter of the Company;

 Decision to convene the General Meeting of Shareholders;

 Other duties as stipulated by the Company's Charter

The Management Board of Thang Long Hanoi 1000-year ConstructionJoint Stock Company currently has 9 members including: Chairman, 1 VicePresident and 7 members The Chairman of the Board of Directors is a personwith educational background, management experience, and a long history ofconstruction activities

General Director - Mr Pham Kha - is the representative and takes thehighest responsibility of the Company to the law, the Board of Directors,customers, suppliers, subcontractors for all production and business activities

of the Company The General Director has the duties:

Deputy General Director - In charge of organization - Ms HoangNguyet Anh - to advise the General Director on the strategy, personnel andbusiness policies of the Company, to help the General Director draft theaction plan, propose control measures, improve the organization, build targets.performance standards

Deputy General Director - Technical Manager - Mr Nguyen VietCuong - gather information on technology and organize research anddevelopment department to apply new technologies, new technical materialsfor the Corporation and its subsidiaries

Deputy General Director - In charge of Quality - Mr Nguyen The Vinh

- to advise the General Director on quality control measures and qualityimprovement Ensure Quality Management System is built, applied andmaintained in all units of the Company

Deputy General Director - In charge of Planning - Ms Le Thi ThuThuy - to advise the General Director on the planning for the whole company,

to study plans and improve those issues for the whole company, especially theconstruction site

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GENERALMEETING OFSHAREHOLDER

GENERALMANAGER

FinancialDirector

Administrator -Organization

ConstructionProjectDirector

Siteexecutivecommitte

InvestmentDirector

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Figure 2.1 Organizational structure of Thang Long Hanoi 1000-year

Construction Joint Stock Company

(Source: Organization and Administration Department of Thang Long Ha

Noi 1000-year Construction Joint Stock Company)

2.1.3 Functions and duties of the departments

 Organization - Administration Department

Identify and develop standards and positions in the Company Buildingrules and working regimes of all parts of the Company Setting labor norms,salaries, bonuses, making plans to raise salaries and bonuses for theCompany

 Quality Assurance Department

To advise the General Director on quality management system andorganization, management and supervision of quality management system;Help the General Director build quality policy and implement it in theCompany

 Contract - Materials Department

Ensuring the supply of materials, equipment and labor on schedule andquality required by the site, including the supply of sample materials forcustomers to choose and approve

 Investment Officer

Planning strategies, plans and managing real estate investment activitiesfor the company; Develop company brand oriented real estate businessstrategy; Coordinate to support pre-feasibility project consultancy forcustomers; Building relationships at all levels of government, investors, and

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investment funds ; Analyze and research customer needs, markets,

competitors and forecast consumer market trends

 The site executive committee

On behalf of the Board of Directors manage and supervise the assignedworks directly and take direct responsibility to the Board of Directors for allaspects of the project, prepare the construction plan for the assigned works,including decide on the organizational structure of the site commandcommittee

2.1.4 Industry characteristics for society

Due to the characteristics of the company is construction and real estatebusiness, the demand for this item in society today is very large, especiallywhen our country is currently promoting the construction of infrastructure, sothe the company needs to have an appropriate plan of production and business

to meet the needs of the market

The Management Board of Thang Long Hanoi 1000-year ConstructionJoint Stock Company believes that it is indispensable to contribute a part tobuilding a sustainable development society:

 Complying with Vietnamese laws on labor; respect the internationalconventions set out in Part II of Standard SA 8000: 2001 and its interpretations

 Constantly concerned in improving working conditions for employees and environmental protection for the community

 Disseminate the provisions of Social Responsibility Policy to allemployees, including the member companies, subcontractors and suppliers sothat everyone can understand, support and implement

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Management Board of Thang Long Hanoi 1000-year Construction JointStock Company commits to build, apply and maintain the SocialResponsibility Management system according to SA 8000: 2001 standard, theEnvironmental Management system according to ISO 14000: 2004 standard

to improve working conditions, environmental protection and raise awarenessthroughout the Company on these issues

2.1.5 Business operation characteristics

Table 2.1 Business performance results in the 3 years 2017 - 2019

profit before tax

(Source: Organization and Administration Department of Thang Long Ha Noi 1000 year Construction Joint Stock Company)

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The data show that, with the reduction of costs, the company hasactively implemented measures to improve the quality of works, improvebusiness efficiency, strengthen brand reputation and exceed planned revenueand profit 1000-year Thang Long Ha Noi has been increasingly trusted bycustomers for many large-scale projects that require high management andtechnical skills.

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2.1.6 Labor characteristics of the company

Table 2.2 Average number of employees from 2017 - 2019

Table 2.3 Structure of human resources by age and labor contracts

Long 12 - 36 <12 term months months

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