ABSTRACT OF DOCTORAL DISSERTATION Research title: THE IMPROVEMENT OF THE TRAINING AND DEVELOPMENT PROGRAM AT BITIS COMPANY IN VIETNAM Scientific Superior: Dr. Joanna Paula A. Ellaga Ph.D. Candidate: Pham Do Dung Viet Nam, July, 2013 Thai Nguyen University Socialist Republic of Vietnam Southern Luzon State University Republic of Philippines 1 ACKNOWLEDGMENT In grateful recognition and sincerest thanks for the encouragement, guidance and unselfish sharing of their knowledge, time, effort and skills, and for the untiring motivation that leads to the completion of this study, the Researcher acknowledges the following: DR. CECILIA N. GASCON, Ph. D., President of the Southern Luzon State University in the Republic of the Philippines, for her untiring effort and belief that this collaboration is possible thus enabling us to pursue the DBA degree; DR. NGUYEN THANH HAI, Vice Director of the International Training Center Thai Nguyen University of the Socialist Republic of Vietnam, for his enormous pursuit to provide the Vietnamese people an opportunity to grow through education; DR. JOANNA PAULA A.ELLAGA for his selfless guidance and assistance thereby making this paper a scholarly work; MANAGERS and EMPLOYEES of Biti’s company, my Respondents, for their patience and cooperation in answering the questionnaire and for other data given; MY FAMILY and FRIENDS and to all who have contributed to make this study a success. 2 CHAPTER I: INTRODUCTION 1.1 The significance of study People are the factors that constitute the organization, operation and determine the success or failure of the organization. This is a valuable asset that every organization should know to take advantage and develop. Furthermore, in integration of global economy, the training and development of human resources is considered as a vital task for every organization because strong human resources is the prerequisite to compete and survive in today's competitive environment. Therefore, the improvement of training quality takes an important part in development strategy 1.2 Background of the Study In fact, Bitis as well as other Vietnamese companies, especially the large one have invested in human resource development but it has not yet become strategic objectives of the business. The recruitment, employment and training new employees is executed only in a short time yet long-term goals. Many businesses have to face with the continuous jumping labour, especially during economic instability. Meanwhile, training and development of human resources are principally important since the majority of Vietnam's labor lack of knowledge and skills by the education system and professional training did not meet the requirements business BITIS have faced a difficulty regarding quality of worker, the lack of high skilled workers is another weakness point of BITIS. That is the results of low level professional in recruiting human resources for company. Moreover, lower awareness and less responsible made by a small part of labor forces is still adverse impacting on company development. Therefore, I have selected topics: “THE IMPROVEMENT OF THE TRAINING AND DEVELOPMENT PROGRAM AT BITIS COMPANY” for my research. With a desire to make a small contribution to improving the quality of human resources at the company Bitis. 1.3 Aims of Study + To evaluate the factors influence the training process at Bitis company + To recommend a best practice strategy for prevention of the negative influence for training and develop human resource in organisation. + To outline solutions for the process to improve the training and develop human resource at Bitis company. 1.4 Objectives of Study 1. To know the respondent’s profile in terms of the following 3 1.1 Company – respondent 1.1.1 Historical background 1.1.2 Organization’s frame work 1.1.2 Strategies 1.1.3 Human resources and development 1.2 Worker – respondent 1.2.1 Age 1.2.2 Gender 1.2.3 Length of service 1.2.4 Department 2. To determine the worker’s perception on how the company conducts training and development program in terms of the following aspects 2.1 Policies and procedures 2.2 Awareness of employees on training process 2.3 Attendance to a formal training 2.4 Training method 2.5 Motivation to attend a training 2.6 Usefulness of the training 2.7 Gains acquired from the training 2.8 Applicability of training to specific job/tasks 2.9 Manager’s role in the training process 2.10 Influencing factors in the training process 2.11 Commitment to attend trainings 2.12 Suggestions to improved the training process 3. To design an improved training and development program for the company 1.5 Scope and limitations of Research The study concentrated on one organisation only, Bitis company. This was due to the fact that the author was unable to gain access to employees at any other organisation. The study was also limited to research in one geography area, Hanoi. 4 CHAPTER II: REVIEW OF RELATED LITERATURE 2.1 The importance of training and development Training and Development helps in optimizing the utilization of human resource that further helps the employee to achieve the organizational goals as well as their individual goals. Training and Development helps in increasing the job knowledge and skills of employees at each level. It helps to expand the horizons of human intellect and an overall personality of the employees. 2.2 Training methods There are many training methods and new methods or variations are constantly being added. The purpose of this section is not to try to list them all. Instead the focus will be on the top ten training methods used in business today as reported by Lakewood Research and Training Magazine [ Joinson, C., p. 55]. These top ten, listed in order from highest to lowest use, are as follows: videotapes, lectures, one-on-one instruction, role plays, games/simulation, case studies, slides, computer-based training, audio tapes, and films. 2.3 The factors influence the training In organizations where a management training centre exists, for example, the training department’s contribution is usually valued. Introducing such a centre involves a good deal of initial research and evaluation and the financial commitments involved discourage the management from taking lightly the decision to provide it. Moreover, if they are prepared to make such an investment, the decision may be reasonably interpreted as an acceptance that the training department is sufficiently competent to assume responsibility for all aspects of management training. The impact of government legislation on training has been considerable, in particular since the year 2008 to now, the technical, vocational education and training in Vietnam is under the administration of the two relevant ministries namely ministry of Education and Training (MOET) and Ministry of Labour, Invalids and Social Affairs (MOLISA). MOET is responsible for professional secondary Education and MOLISA is responsible for vocational training. 2.4 The brief overview of the steps of the training process follows: Identify needs, evaluate needs, select courses, develop courses, determine workload, recruit trainers, identify location and resources, finalize budget, finalize training plan, prepare courses, deliver courses, validate training, evaluate training, revise courses 5 CHAPTER III: RESEARCH METHODOLOGY 3.1 Research design In this research, four questions in section A are designed as an open question and 12 quantitative questions in section B are half-closed question, using both quantitative and qualitative. These questions have been sent to Bitis for pilot study. They are seemed to have good evaluation, easy to answer workers, less time consuming and respondent can add comments if necessary 3.2 Research tool The questionnaire was split into two sections, A and B. Section A was designed to ask employees which group they belong to. Section B was designed to investigate the training process, and evaluate the effective of training process at Bitis company and consisted of open questions giving the respondent the opportunity to include any opinions or recommendations regarding how Bitis company could improve their the training process for employees. 3.3 Sampling method The researcher employed a probability, simple random sampling technique. This allowed the researcher to obtain a straightforward sampling frame of all of the people in Bitis population. Questionnaires were sent in post and distributed by the Administration department. 3.4 Research technique The questionnaire consist of both open and close questions. Closed questions are quick and easy to answer, they require no writing, quantification is straightforward and respondents are offered a choice of alternative replies. Open questions allow participants to define and describe a situation or event. 3.5 The Pilot Study In order to increase the validity of the questionnaire a pilot study was carried out initially. Pilot questionnaires were sent to two employees at Bitis company, inviting them to constructively criticise the questionnaire. The aim of the pilot study was to refine the questionnaire so that respondents would have no problems in recording the data. 3.6 Procedure Following the amendments made from the results of the pilot study, the finalised questionnaires were distributed along with a cover letter for respondents outlining the aims of the study, assurances of confidentiality and informing the individual of the right to withdraw from the study at any time. 6 3.7 Data analysis Author used excel to percentage calculations to establish trends in the data obtained and data was presented in the form of pie charts. After that, using relative theory to analysis. 7 CHAPTER IV: RESULTS AND DISCUSSION 4.1 The background of Bitis company 4.1.1 Historical background BITIS, a short name of the BINH TIEN Consumption Goods Production Limited Company. Established in 1982, with more than 30 years experiences manufacturing and exporting shoes, BITIS is known as one of top 10 biggest footwear companies in Vietnam. BITIS is also the most famous and popular brand name in not only home country but also in many other nations in the world. Nowadays, BITIS has 5000 different types of products, from footwear using at home to senior fashionable products. Each type of products has various different designs providing more options for customers. 4.1.2 Organization’s framework BITIS have two braches namely Biti’s Western Branch and Biti’s Southern Branch and four trade centers including Biti’s Highland Trade Center, Biti’s Northern Trade Center, Biti’s Lao Cai Trade Center and Da Nang Business Center. Besides that BITIS have 4500 agents covering every commune in the whole country and some other regions in the world. Around 9000 workers are employed in BITIS, and 10% of its have bachelor and master degree. 4.1.3 Bitis strategies BITIS has built a number of specific strategies for its development. The first strategy is enhanced the position of company though increasing capital, investing in modern technology, improving management and applying quality assurance. Secondly, BITIS has increased their direct interactions with potential overseas clients in order to widen its market. Moreover, BITIS has provided a competitive environment for workers to develop their potential abilities to company development. Finally, building customers’ trust is another core of the BITIS strategy. 4.1.4 Human Resources Management and Development Investing in human resources development is also a basic policy applying by this company. Employees benefit from improved knowledge and skills and remain with the company longer. A number of programs are in place to support workers’ long-term commitment to BITIS and to encourage continuing education and skills upgrading, including leadership, management and professional development, as well as quality, occupational health and safety and environmental standards. 4.2 Worker-respondent 8 Section A PIE CHART ILLUSTRATING THE AGE OF EMPLOYEES AT BITIS COMPANY 45% 30% 20% 5% Under 25 From 26 to 40 From 41 to 50 From 51 to 60 With pie chart above, the highest rate of age is the employees who are under 25 age,occupy 45%, in contrast, the lowest rate of age who are from 51-60 is only 5%. Meanwhile, the rate of employees who are from 26-40 and the rate of those who are 41-50 is 30% and 20% respectively. PIE CHART ILLUSTRATING THE NUMBER OF MALE AND FEMALE EMPLOYEES AT BITIS COMPANY 40% 60% Male Female The result obtained revealed that 60% of respondents answered ‘Female’ , meanwhile 40% of respondents answered ‘Male’. It is disproportionate because Bitis company’ characteristic are producing and selling shoes, in addition female who has good communication ability and quickly to introduce to the customer about the feature of products. Likewise, according to East’s custom the characteristic of women is pleasant, gentle, so the female is required more than male employees. 9 PIE CHART ILLUSTRATING THE EMPLOYEE'S LENGTH OF SERVICE AT BITIS COMPANY 15% 25% 35% 25% Less than 1 year Between 1 to 2 years Between 2 to 3 years More than 3 years With pie chart above, we see that the highest rate of length of service at Bitis company is the employees who work from 2-3 years,occupy 35%, On the contrary, the lowest rate of length of service at Bitis company is the employees who work less than 1 years is only 15%. Following the rate of employees who work from 1 to 2 years and the rate of those who work more than 3 years are similar respectively achieve 25 %. This shows that the labor force is not stable . PIE CHART ILLUSTRATING THE PERCENTAGE OF EMPLOYEES WORK IN DEPARTMENTS 60% 18% 12% 4% 6% Manufacturing department Selling department Marketing department Financial department Security department With pie chart above, we see that the highest rate of department is the employees who work in manufacturing department, occupy 60%, in turn the selling, marketing and financial department is 18%, 12%, and 4% respectively, finally security department is only 6%. This suggests that indirect labor force working in departments is large proportion. This is quite common in Vietnam enterprises, demonstrating the level of corporate management Vietnam is still limited. Section B [...]... stated Bitis company need to facility for them in working, they need to make decide in their own, so this way, they could feel responsible for their job, from that they could have creativity and apply their knowledge into job effectively 15 % of respondent answered Bitis company need to increase notice the training plan for all of employees, or promote the feedback to everyone could know their ability... company so Bitis company need to increase the commitment with employees because 15 Commitment of employees can be an important instrument for improving the performance of organizations PIE CHART ILLUSTRATING THE EMPLOYEE'S IDEAS FOR IMPROVING THE TRAINING PROCESS AT BITIS COMPANY 15% Time 20% 65% Facility in working enviornment Others ideas The result revealed that 65% of respondent stated Bitis company... recommendations to improve the training and development of the company Bitis 5.2 Conclusions Firstly, Bitis company manufacturing and selling shoes, with its characteristic, female workers are more than male ones, there are near two third of total employees and majority operate in producing department, with average employee’s age is twenty six Secondly, with regard to plan and policy for training and develop... re- train to know new procedure, job process and assign a employees have responsibility to instruct them To everyone has more understanding together, company usually organise some meeting, party, or picnic, encourage everyone join in an atmosphere of playfulness and a sense of fun, 19 affection, loyalty and community are developed, through that everyone could know better each other such as family’s... plays, so on (20 per cent) The traditional methods were majority if company invite trainers teach employees at company and it was usually 1 to 2 days so there is little time for training employees Meanwhile, employees attended training courses at centre training, there were facility with modern equipment so they were taught by many variety including lectures, seminars, videos, 11 games case studies,... ILLUSTRATING WHAT BITIS' S EMPLOYEES RECEIVED IN THE TRAINING COURSE 10% 30% Knowledge Skills Attitude 60% 30% of respondent stated ‘Knowledge’ and 60% of respondent answered ‘Skills’ meanwhile 10% of respondent stated ‘The attitude’ was limited The persons who answered ‘Skills’ implicate that the majority amount of employees were attended training course are workers, they are recruited by Bitis company... meet the require of customer who are demanding high- quality products and services especially in the fierce competition environment nowadays Examples: In selling department, the employees must learn the knowledge of the shop’s merchandise such as quality, physical characteristics 13 PIE CHART ILLUSTRATING THE TRANSFER TRAINING OF EMPLOYEES AT BITIS COMPANY 10% 25% Yes Not much No 65% 65% of respondent... not useful, is only theory and not reality Fifthly, the methods for training is still traditional ones so Bitis company need to concentrate on- the – job training, it is effective and quickly way to apply the skills and know ledges to the job Sixth, time and fund are essential factors barrier the training course To ensure the producing on time and effective, Bitis company usually organise the training... effective result And it is waste time and fund 17 Seventh, the total of employees have made commitment with Bitis company is not much, only have 25% of the employees, in addition, the number of employees who work under one years leave Bitis company is 15%, so it is unstable in organise activity Finally, many ideas is need to create the working environment, the employees need to be freedom and autonomy... Resulting from the evaluation, analysis, and conclusions, Bitis board of management should develop an improved training and development program for the company as follows 5.3.1 In respect of training policy Bitis company need to increase notice the training plan for all of employees, or promote the feedback to everyone could know their ability and from that there is motivation to struggle in working . PROGRAM AT BITIS COMPANY IN VIETNAM Scientific Superior: Dr. Joanna Paula A. Ellaga Ph.D. Candidate: Pham Do Dung Viet Nam, July, 2013 Thai Nguyen University Socialist. International Training Center Thai Nguyen University of the Socialist Republic of Vietnam, for his enormous pursuit to provide the Vietnamese people an opportunity to grow through education; DR. JOANNA. not meet the requirements business BITIS have faced a difficulty regarding quality of worker, the lack of high skilled workers is another weakness point of BITIS. That is the results of low level