TR NG IH CM TP HCM UNIVERSITÉ LIBRE DE BRUXELLES HO CHI MINH CITY OPEN UNIVERSITY SOLVAY BRUSSELS SCHOOL MBAVB4 DOAN MY HUE APPLICATION OF COMPETENCY GAP BASED TRAINING METHOD AT POWER ENGINEERING CONSULTING JOINT STOCK COMPANY }ı| MASTER PROJECT MASTER IN BUSINESS ADMINISTRATION (PART-TIME) TUTOR: Dr.VU VIET HANG Ho Chi Minh City (2011) DECLARATION AND CONFIDENTIALITY I confirm that this thesis is a presentation of my original research work which I have studied, researched Wherever contributions of others are involved, every effort is made to indicate this clearly, with due reference to the literature, and acknowledgement of collaborative research and discussions The work is done for the study purpose, it contains some confidential information of the PECC3, therefore the copying or using of this paper for any other purpose must be subject to the written acceptance of the author Candidate’s name and signature Doan My Hue ACKNOWLEDGEMENT I would like to express my heartfelt gratitude and deepest appreciation to my research Supervisor, Dr Vu Viet Hang for her precious guidance, share experience, ceaseless encouragement and highly valuable suggestions throughout the course of my research I would like to thank my colleagues from PECC3, who have helped me during the collection of data as well as support me doing research Special thanks again to the staff members have spent their time to fill in the survey of employees in company to obtain data for analysis and evaluation My special gratitude is extended to all instructors and staff at Faculty of Business Administration and Postgraduate Faculty of Open University (OU) for their support and the valuable knowledge during my study in OU I also would like to thank the Examination committee for take time and giving valuable comments to improve this study Last but not least, the deepest and most sincere gratitude goes to my professors who helped me to get to the precious knowledge TABLE OF CONTENT Page ABBREVIATION i TABLE LIST ii CHART LIST iii INTRODUCTION .1 Problem statement Research objectives Data collection method Scope and limitations .2 Implications of research Structure of the study .3 CHAPTER 1: THEORETICAL BACKGROUND 1.1 Training 1.2 General about competency gaps based training 1.2.1 Concept of competency and competency gap 1.2.2 Determination of Competency Gap .7 1.3 Model of American Society for training and the competency based model of Boyatzis .9 CHAPTER 2: THE SITUATION OF TRAINING AT POWER ENGINEERING CONSULTING JOINT STOCK COMPANY 18 2.1 Brief outline of Power Engineering Consulting Joint Stock Company 18 2.1.1 History of establishment and development 18 2.1.2 Company organization structure 19 2.1.3 Business activities and situation 22 2.1.4 Human resource situation at PECC3 23 2.2 Training in PECC 26 2.2.1 Training process 26 2.2.2 Training organization 27 2.2.3 Comments on training of PECC3 29 CHAPTER 3: APPLICATION OF COMPTENCY GAP BASED TRAINING METHOD AT PECC3 35 3.1 The establishment of application competency gap based training system for PECC3 36 3.1.1 The approach 37 3.1.2 Definition of training needs 40 3.1.3 Definition the core values of company 40 3.1.4 List of capabilities needed for different level 41 3.1.5 Definition the required and actual importance, proficiency of the competencies .44 3.1.5.1 Definition capacity gap of management positions .44 3.1.5.2 Indentify competency gaps of administration and management employees45 3.1.5.3 Indentify competency gaps of technical engineers 45 3.1.5.4 Indentify competency gaps of technical workers .45 3.2 Support solutions 45 3.2.1 Improving the recruitment process 45 3.2.2 Application of quantitive analysis to performance appraisal .45 3.2.3 Training competency gap method for managers 45 CONCLUSION 45 REFERENCES 45 ANNEX 45 i ABBREVIATION EVN : Vietnam Electricity Corporation HR : Human Resource HRM : Human Resource Management GDP : Gross Domestic Product NPT : National Power Transmission Corporation PECC : Power Engineering Consulting Joint Stock Company VN : Vietnam HCMC : Ho Chi Minh City ii TABLE LIST Table 1.1 Actual proficient of competencies 14 Table 2.1 Business results over last years of PECC 23 Table 2.2 Labor structure according to professional of PECC3 24 Table 2.3 Labor structure according to training level of 26 PECC3 Table 2.4 Training organization in PECC 27 Table 2.5 Training expensive 30 Table 2.6 Opinion on training with job requirements 31 Table 2.7 Opinion on content of training 31 Table 2.8 Opinions on teaching method 32 Table 3.1 Specialized trainings required for staff 36 Table 3.2 List of capacity groups 42 Table 3.3 Identification capacity groups of management 45 positions Table 3.4 Identification capacity groups of administration and 49 management employees Table 3.5 Identification capacity groups of technical engineers 53 Table 3.6 Identification capacity groups of technical workers 57 Table 3.7 Additional competencies needed 59 iii CHART LIST Chart 1.1 Determination competency 11 Chart 2.1 Organization chart of PECC3 21 Chart 2.2 Labor structure according to professional 24 Chart 2.3 Labor structure according training level 25 Chart 3.1 Proposed recruitment process of PECC 61 Problem statement INTRODUCTION Problem statement Any company only can be successes with long-term continuous improvement Current business environment is influenced by the trend of globalization, is changing extremely rapidly in Vietnam The organizations have recognized that they must change their basic strategy and change their focus from increasing sales to value added Also from the quality and quantity from price competition the service to competition Thus organizations are under increasing pressure of how to improve the quality for their limited resources to these resources more creativity and innovation, to achieve the output value of organization From the quality and quantity from price competition the service to competition Thus organizations are under increasing pressure about how to improve the quality for their limited resources to these resources more creativity and innovation, to achieve the output value of organization With such a pressure, the improvement of training and development resources become a vital aspect of the development of the organization Currently, the investments from the strong economies in the world are coming into Vietnam from developed countries in the region such as Japan, Korea, the countries from Europe, America as Britain, France, United States, they bring the new management style and focus on training and human resource development of Vietnam, to meet increasing demands in the competitive business world PECC3 after years switching to joint stock Company, it has always archived the goals of business planning These results, based on the company’s business plan, are professional and creative breakthroughs to the staff of the company To promote and maximize the capacity and ability of all single people, the company has always focused on the training and development policies of human resource development ANNEX SUMMARY OF SURVEY ANSWERS Opinions on remuneration, allowances The employees can live by earning from company 41 24 76 22 37 Your remuneration is good for your performance c a B n 69 56 42 12 21 You are paid with high salary 88 73 12 16 11 You consider that allowance in company is reasonable 44 46 66 35 You consider that allowance in company is fair 45 54 31 42 28 The employees can live by earning from company 13 22 40 61 64 The benefits of the Company are attracted 25 43 55 33 44 You appreciate the benefit policies of the Company 12 46 30 45 67 Opinion on training and promotion You have required skills to your job performance 92 41 50 10 You think that the training curriculum of company is good 25 43 87 35 10 11 The trainings really help to improve your job 27 99 31 29 14 12.The training is suitable for most of employees 18 79 50 42 11 13.You know the capacities you need to be trained 14.You know the priories of trainings 13 61 70 20 36 23 65 68 35 ANNEX 15.The content of training must be decided by HR department 56 71 42 14 17 16 To good training program need to understand job requirements 12 19 58 45 66 17 In general,training in the company is effective 51 75 47 12 15 18 You have many chances to promote in company 67 96 15 12 10 19 You know the conditions to promote 66 79 24 19 12 20 Promote policy of company is fair 55 80 21 27 17 Opinions on recruitment 21.Applying to a job, introduction is most important 50 20 92 24 22.Recruitment process of company can meet workforce required 35 43 87 25 10 23.Company can recruitment the good candidats by internal only 27 99 31 29 14 24.Internal source is cheapest and simple way of recruitment 18 11 50 42 79 25.The present recruitment can meet department’s requests 10 67 65 27 31 26.In general, you think that present recruitment is effectiveness 25 60 70 23 22 27.You think the recruitment should be opened to internal and external 49 69 47 15 20 sources Opinion on performance appraisal 29 The performance appraisal is fair and accurate 89 67 27 30 You trust to your boss qualification on performance appraisal 53 87 32 19 ANNEX 31 Performance appraisal help you to plan your training and 60 82 32 15 11 individual career development 32 Performance appraisal actually help to improve the quality of your 59 79 31 21 10 job 33 You think that this appraisal method is adequate 33 75 39 28 25 Opinion on working environment 34 Employees cooperation in working and good relationship 63 61 45 13 18 35 Leaders’ behavior is polite, gracious 66 69 42 12 11 36 The employees are fairly treated 36 45 79 16 24 37 You can be flexible and hold the power to innovative with highly 48 69 57 20 effective The company brings satisfaction to you on : 38 High income 79 72 30 39 Stable job 40 Promotion chances 71 72 36 41 Good working environment 29 37 43 57 34 42 In general, you feel the company is good to work with 63 72 26 24 15 55 81 54 13 You feel that: 43.Although the company financial situation isnot good, you not 55 61 34 25 25 ANNEX move to another 44 You willing to performance any assigment of comapny 39 37 86 28 10 45 You feel that you are belong the this company 26 21 84 38 33 Please short describle about yourself (Total number of people evaluated by the level (if any) Sex Male: 185 Female: 15 Education Elementary: Secondary: Technical school: 32; High school: 27 Undergraduated: 153 Granduated:15 What is your age? Under 30: 12 From 45 to 54: 60 From 30 to 44: 120 From 55and up: Do you have another pat-time job? Yes: 135 No: 65 What you are? Administration and management production staff: 41 Worker: 71 Engineer and expert: 54 Management positions: 16 Other: 18 What you expect form company (stick with number of level) 1: First expectation; 2: The second expectation; 3: The third expectation; ANNEX High income: 151[1], 46[2] Promotion chances: 25 [1], 109[2] Stable job: 3[2], 43[3] Reputation, status: 24 [1], 42[2], 11[3] Good working condition: 146[3] Do you recommend anything about this survey or improving HRM in comapny? ANNEX Annex 2: QUESTIONARIES TO EXPERTS ON HUMAN RESOURCE MANAGEMENT AND TRAINING IN PECC3 Mr Dao Minh Tan - Business Director of recruitment website companies Kiemviec.com and HRVietnam.com- VON Corporation (Experience: 07 years hold the position of Business Director, and HRVietnam.com and Kiemviec.com Mr Nguyen Van Tien - Director of Human Resources, Apollo Education & Training , over 15 years experience working in HR, finance, education, hotel, experience working in the field Business Management, Training, Human Resource management consulting Mr Le Dang Doanh Doctor of economic.From 1968 to 1978, he was a specialist of the Office Government of Vietnam served as economic secretary to the office of the leader Pham Van Dong, Nguyen Van Linh, Do Muoi, Nguyen Duy Trinh He has written many articles about Vietnam's economy and the corruption problem Interview Question 1: 'Ther are many issues need to improve in HRM in PECC3 but what is most important in solutions of improving HRM of our company; Salary system, recruitment peocess, training process or performance appraisal?' Answer: All the process of human resource management is linked each other but with different importance level in different development stage Salary is considered as a very important factor; however PECC3 is state-owner Company, improving the salary system dependents on EVN’s and basic salary regulation of government In this situation, recruitment and training development may be good to improving Interview Question 2: What you think about situation of training process of PECC3? ANNEX Answer: Traning is key issue to be considered in PECC3, the expensive for training increased every year with many topics Howeverthe trainings are less focused, the trainings are not really make job’s improving, the training curriculum fixed in some years without updated The company has not yet evaluated needs before building the training program Interview Question 3: 'What you think about situation of training process of PECC3? To improve it, what should company do?' Answer: As a consulting company, human resource is key factor Due to business relationship in company, the “open recruitment” sometimes difficult to use, the company cannot recruit the qualified candidats to the required positions, that’s why the further training is very important To meet requirements of the jobs, the evaluation the needs of the job and capacity to doing job of employees must be considered Interview Question 4: “We’ve applied training based on deternination competency gap method, how long should we determinate the gaps? “ Answer: Due to production requirements changed, company also have annual plan for business, human resource, training and other, so the determination also need to conduct annually Interview Question 5: Instead of HMR department, who can decide the training curriculum or assign training needed for the people? Answer: HRM department cannot build the training curriculum alone; it must be cooperated with production departments and BOM The production departments understand their training needs, but that needs must be considered in development strategy of company ANNEX Interview question 6: What the suitable method for performance appraisal in PECC3? Answer: Performance appraisal: quantity analysis method may be most appropriated Interview Question 7:” What should we propose to EVN to improve the training policies and other issues of HRM” Anwer: As Company belongs to EVN; PECC3 may have some proposals on training such following: +ENV should inform to the companies belong about training program in and out the country, support policies to encourage training program of the companies belongs, the training curriculum which the companies can develop for their own Beside, the training curriculum of EVN, should have a part of training conducted or developed by companies itself, based on their orientation and specificts on production Interview Question 8: To set up the training currilulum based on competency gaps determination method, what would be started? Answer: The company should to determinate the core value of company such Policy, goals, visions But it is always very in genera We need to know how to plan of it? How to implementate, then we can to build the training curriculum, need to build action plan based on these values, from that can see the requirements on human resource ANNEX Interview Question 9: How long is periodically of determination the competency gap? Answer: Method of determination the competency gap should be annual periodically applied in company Interview question 10: What is the support process in HR to improve training in PECC 3? Answer: The other issues of HR such recruitment, performance appraisal, remuneration, culture of company, promotion are supported to each other Interview question 11: When got the list of capacities, how shoul determinate the levels of capacity and proficiency? Answer: To determine the capacity gap, again collect opinions of heads of department for importance levels of capability and proficiency with the requirements of competence and proficiency to for all positions in the company, then can determine the capacity gap Interview Question 12: How to determinate the groups of capacities? Answer: Based on the core values and opinions of all the heads of departments/units in PECC3 to establish a list of required capacities of leaders at all levels and divided into four groups as follows: • Business and Organization • Function • Human relationship • Individuals ANNEX Annex 3: Performanace appraisal standards for technical engineers of substation department ánh giá k t qu th c hi n công vi c i v i K s k thu t (thu c Phòng K thu t- thi t k tr m, Ng i ánh giá: Tr ng Phòng K thu t ch t l Yêu c u ch y u ng T m i m Gi quan tr ng Ki 1-Chuyên môn nghi p v - Hi u bi t rõ quy trình l p h s xây d ng 10 ng dây tr m bi n áp thu c Công ty ang qu n lý - S d ng thành th o ph n m m qu n lý v n hành - Có th gi i thích tham gia x hu ng t i lý tình n v t v n i n tr c thu c - Có th h p tác v i B ph n t o Công ty - Bi t t ch c s p x p công vi c m t cách 7 khoa h c, xác - Th ng xuyên h c t p nâng cao trình 8 chuyên môn Ph m ch t cá nhân - Trung tr c, tin c y ng dây) ANNEX - Tác phong chuyên nghi p, nhanh nh n - Bi t c u ti n - Gi bí m t cơng ngh - Trang ph c làm vi c - Gi gi c làm vi c 8 10 10 Ch p hành n i quy lao - m b o ngày công lao ng ng th c t - Ch p hành quy trình, quy ph m v k thu t an toàn b o h lao ng Tiêu chí ánh giá i m ánh giá cu i cùng: (858/110) = 7, 80 K s k thu t có s c ánh giá chung i m nh v y ANNEX Annex 4: Department monthly evaluation Yêu c u ch y u T m i m Gi quan tr ng Ki Phòng TCNS 1.1 Th c hi n ch c n ng nhi m v - Ch trì ph i h p v i phòng ban khác tham m u cho 10 lãnh o Cơng ty v n d ng b trí nhân viên - Tính l ng, th ng tr cho ng i lao ng: + Chính xác + K p th i - Tính kho n: BHYT, BHXH, KPC cho ng i lao ng - Qu n lý công v n: + Luân chuy n nhanh chóng, y , xác 10 + L u tr khoa h c, h p lý -L p y k ho ch ch ng trình t o: + Ph c v thi nâng b c + Ph c v nhu c u SXKD - T ch c thi nâng b c k p th i chu áo - Tham m u k p th i cho lãnh cho ng i lao gi i quy t ng: Ngh phép, tr c p, - Ch m lo s c kh e cho ng i lao ng - Th c hi n t t công tác thi ua, tuyên truy n - Các công tác Other : Qu n lý h s nhân viên; h th ng 10 i n, n c, phòng h p, t i khu v c v n phịng Cơng ty Thang i m 10 ch o Công ty ANNEX - Ph i h p t t v i phòng ban, gi i quy t n v khác v n - Th c hi n t t công tác i ngo i v i c p 1.2 Ch p hành n i quy lao ng c a CBCNV tr c Phịng Tài K tốn 2.1 Th c hi n ch c n ng nhi m v - L p Báo cáo Tài mb o + Ti n 10 + Ch t l ng 10 - Qu n lý chi phí 10 - Tính tốn hi u qu ho t - Chu n b y ngu n ng SXKD khác tr l ng, th ng cho ng i lao ng - Chi tr k p th i kho n thu nh p c a ng i lao ng t ho t ng SXKD khác y : BHYT, BHXH, KPC cho ng i lao - Th c hi n quy t tốn cơng trình 10 c - Th c hi n công tác ki m kê v m t giá tr y ngu n toán v i - Th c hi n cơng tác ki m tốn quy t tốn thu - Các công tác khác: Xây d ng 9 - Th c hi n ngh a v v i Ngân sách Nhà n - Chu n b ng 10 i tác 9 nh m c chi tiêu, lý, - Ph i h p t t v i phòng ban, n v khác gi i quy t Thang i m 10 - óng ANNEX v n - Th c hi n t t công tác i ngo i v i c p 2.2 Ch p hành n i quy lao ng c a CBCNV tr c thu c Phòng K thu t Ch t l ng 4.1 Th c hi n ch c n ng nhi m v - Công tác qu n lý k thu t an tồn 10 - Cơng tác b o h lao 10 ng a n tồn v sinh cơng nghi p - Phòng ch ng bão l t 10 - Tr c x lý s c - Công tác x lý s c 10 - óng i n nghi m thu d án 10 - Giám sát thi cơng cơng trình 10 - Th c hi n gi i pháp v n hành an toàn, liên t c phòng ng a s c - Th c hi n công tác t o thi nâng b c, trình t 10 - Các cơng tác khác : So n quy trình v n hành, - Ph i h p t t v i phòng ban, gi i quy t n v khác v n i ngo i v i c p 4.2 Ch p hành n i quy lao ng c a CBCNV tr c thu c Phòng k ho ch Kinh doanh 5.1 Th c hi n - L p k ho ch SXKD: ch c n ng nhi m v Thang i m 10 - Th c hi n t t công tác ANNEX + K ho ch phát tri n kh ách h àng v t gi ám s át l i i n, ngu n i n, + K ho ch s a ch a th v n thi t k v ng d ây, tr m i n ng xuyên + K ho ch s a ch a l n 10 + K ho ch u t xây d ng + K ho ch khốn chi phí truy n t i + K ho ch s n l ng i n t v n t l t n th t + K ho ch ho t ng SXKD khác + K ho ch n p Ngân sách Nhà n - Theo dõi ti n th c hi n k ho ch - Xây d ng chi n l 10 c phát tri n c a Công ty - L p d toán d án - Qu n lý h p 10 c u t xây d ng cơng trình ng Cơng ty ký k t - Phân ph i thu nh p t ho t ng SXKD khác - Các công tác khác: Báo cáo th ng kê, ki m t nh m c, - Ph i h p t t v i phòng ban, n v khác gi i quy t v n - Th c hi n t t công tác i ngo i v i c p 5.2 Ch p hành n i quy lao ng c a CBCNV tr c thu c ánh giá thành tích tháng c a phòng ban, nv ... 2.2 .3 Comments on training of PECC3 29 CHAPTER 3: APPLICATION OF COMPTENCY GAP BASED TRAINING METHOD AT PECC3 35 3. 1 The establishment of application competency gap based training. .. II: The situation of training at Power Engineering Consulting Joint Stock Company Chapter III: Application of competency gap based training method in Power Engineering Joint Stock Company CHAPTER... gaps training method is most essential content of solution in chapter CHAPTER 3: APPLICATION OF COMPTENCY GAP BASED TRAINING METHOD AT PECC3 35 CHAPTER 3: APPLICATION OF COMPTENCY GAP BASED TRAINING