CAPSTONE PROJECT REPORT DEVELOPMENT HUMAN RESOURCES STRATEGY OF NLDC IN THE PERIOD 2020 - 2025 GRIGGS UNIVERSITY GLOBAL ADVANCED MASTER OF BUSINESS ADMINISTRATION PROGRAM CAPSTONE PROJECT REPORT DEVELOPMENT HUMAN RESOURCES STRATEGY OF NLDC IN THE PERIOD 2010 - 2015 Group No 2. Quan Duc Hai 2. Nguyen Tat Thang 3. Nguyen Xuan Son 4.
Bui Thi Hong Nhung HA NOI, 2010 MASTER OF BUSINESS ADMINISTRATION CONTENT Page FOREWORD 1 Necessity of the theme 1 2 Purpose of the research 2 3 Research methodology 3 4 Contributions of the Capstone Project Report 3 5 Structure of the Capstone Project Report 3 CHAPTER 1 FUNDAMENTAL THEORIES ON BUSINESS STRATEGY AND STRATEGIC HUMAN RESOURCES MANAGEMENT 1 Business Strategy 4 1.1 Concept of Business Strategy 4 1.2 Benefits of business strategy for organization 5 1.3 Basic contents in strategic planning of organization 5 1.4 Some strategic planning tools 6 1.2 Value chain analysis 7 1.3 Five forces model 8 1.1 Power of Suppliers is shown in the following features 8 1.2 The threat of substitute products: 8 1.3 The threat of the entry of new competitors 8 1.4 Power of customers 9 1.5 The intensity of competitive rivalry 9 1.4 PEST analysis 9 2 Strategic Human Resources 10 2.1 Concept of Human Resources 10 2.2 Concept of human resources strategy 11 2.3 Some strategic human resources models 12 2.3 Specific relationship model 13 2.1 Creativity strategy and major HRM activities 14 2.2 Quality enhancement strategies and major HRM activities: 14 2.3 Cost reduction strategy and major HRM activities 14 3 Strategic Human Resources Development Process 15 3.1 Strategic Human Resources Planning 19 3.2 Implementation of strategic human resources 22 3.3 Evaluation of strategic human resources 22 CHAPTER 2 STRATEGIC HUMAN RESOURCES DEVELOPMENT AT NATIONAL LOAD DISPATCH CENTER MASTER OF BUSINESS ADMINISTRATION 1 Establishment and Development Process of National Load Dispatch Center 23 2 Power business strategy of Vietnam Electricity in 2007 – 2015 period, towards 2025 24 2.1 General introduction about Vietnam power system 24 2.2 Overview of power business strategy of Vietnam Electricity in 2007- 2015 period, towards 2025 25 2.1 Regarding investment in power source development 25 2.2 Regarding power transmission 27 2.3 Orientation of power distribution area 27 2.3 Characteristics of human resources of power sector (EVN) 28 2.1 Regarding training areas: 29 2.2 Age-based labor force structure 31 2.3 Productivity index of entire EVN 31 3 Current business situation of NLDC 32 3.1 Power system operation 32 3.2 Other operations of Center as an enterprise 35 3.3 Business operation features of the Center 37 3.1 Power System Operator (SO) function 37 3.2 Market Operator (MO) function 38 3.3 Other business activities 39 3.4 Status of human resources deployment in the past years 40 Strategic human resources development at National Load Dispatch 4 Center 42 4.1 Existing operation of National power system (as of September 2009) 42 4.2 Current status of human resources of National Load Dispatch Center 42 4.3 Overview of Development Direction of NLDC 48 4.1 Basis for development direction of NLDC 48 4.2 Basic features in the restructuring pathway of EVN 49 4.3 Development Direction of National Load Dispatch Center 50 4.4 Strategic Human Resources Development at National Load Dispatch Center 50 4.2 Analysis and selection of development strategy 66 CHAPTER 3 SOME RECOMMENDATIONS FOR IMPROVEMENT OF STRATEGIC HUMAN RESOURCES IN 2010 – 2015 PERIOD AT NATIONAL LOAD DISPATCH CENTER MASTER OF BUSINESS ADMINISTRATION 1 Development Strategies of National Load Dispatch Center in 2010 – 2015 period 76 1.2 Objectives 2 Implementation Plan of Development strategy of NLDC in 2010 -2015 period 76 2.3 Service provision as main business on the following 77 2.4 Main products with special and unique feature 77 2.5 Clients 77 Some measures for implementation of development strategy of 2.1 Regarding the investment 78 2.2 Regarding the personnel organization 78 Restructuring of the Center according to following model (Figure 2.2 Human resources development solutions 81 Measures for improvement of human resources quality via 2.2 Measures for improvement of human resources quality via training 84 2.3 Measures for human resources improvement via evaluation system 85 2.4 Measures for human resources improvement via compensation 86 2.5 Improvement of working environment and conditions 87 2.3 Regarding the infrastructure 87 2.1 For macro environment 88 2.2 For business environment 88 CONCLUSION LIST OF FIGURES, GRAPHS MASTER OF BUSINESS ADMINISTRATION Figure Content Page Figure 1. Strategic Planning Process 16 Figure 1. External Elements 17 Figure 1. Decisive factors to competition within an industry 18 Education background and age of management as of Figure 2.
30 April 30th 2008 Figure 2. Age-based labor structure 31 Figure 2. Hierarchy of national power system 33 Figure 2. Existing organization chart 36 Figure 2.
Position-based structure 46 Figure 2. Education-based structure 46 Figure 2. Specialization-based labor structure 48 Figure 2. Age-based labor structure 48 Figure 3.
Configuration of SCADA system 72 Figure 3. Communication system for data exchange 73 Figure 3. New organization model at NLDC 80 MASTER OF BUSINESS ADMINISTRATION LIST OF TABLES Table Content Page Table 1. SWOT Matrix 20 Evaluation of strategy implementation sequence following Table 1.
21 GREAT matrix Educational structure and number of EVN’s employees in Table 2.1 29 2001 – 2009 period Comparison of productivity index between EVN and Table 2.2 32 power utilities of some countries Table 2. Status of human resources deployment 40 Table 2. Current status of Human Resources 43 Table 2. Structure of employees 43 Number of training courses and employees articipating in Table 2.
53 training and development Table 2. Salary coefficients for different positions 54 Table 2. Average salary level of some positions in the NLDC 56 Statistics of graduates from formal education of Table 2. 63 Engineering Universities Statistics on qualification of graduates from formal Table 2.
education specialized in power system of engineering 63 universities Statistics on average salary of engineers and bachelor Table 2. 64 degree holders of different specializations in 2009 Table 2. Summary of SWOT analysis at NLDC 66 MASTER OF BUSINESS ADMINISTRATION FOREWORD 1. Necessity of the theme: Improvement of human resources quality is one of the most important tasks of a company in particular and a country in general.
Human resources quality improvement has become increasingly significant in the whole world in the past decades. Most companies have to face up with the severe competition in the market, to struggle in the economic recession and to meet increasing demands for human resources in terms of both quantity and quality. Traditional perspective which stated that the major competitive advantage of a company or country lied in the financial, technical and technological capabilities became out of date. The decisive factor to the existence and development of each company and each country is now people with high education background, well-trained skills, ethics, culture and understanding of effective performance.
Therefore, the human resources quality improvement has been studied, developed and applied in advanced industrial countries. The human resources quality improvement has not been properly concerned in Vietnam despite of its importance. As a developing country, Vietnam always has to face up with post-war consequences and its economy is now in the process of transition from subsidy and concentrated economy to market economy. Improvement of human resources quality in Vietnam enterprises has not been properly cared despite of its significance.
Innovation process has some basic changes requiring the development of human resources in terms of both quantity and quality. The poor quality of Vietnamese human resources is reflected in Vietnam’s economic results which are far below the potential of natural resources and other resources. Therefore, the actual situation of Vietnam economy requires researchers to be proactive in finding out solutions which help enterprises perform well the human resources quality improvement and thus reduce the risks, save time and enhance the competition capability during their shift to market economy. Power industry is an important economic – technical industry in the economic development of the country.
It is the source of energy input for most industries and plays a key role in the economic development of Vietnam. Therefore, in addition to capital and technology, improved quality of EVN’s human resources is vital to promote the price and quality service as competitive advantages in power 1 MASTER OF BUSINESS ADMINISTRATION transmission and especially power generation and distribution in the market economy and to integrate into the regional and world economy. As a global trend, power sector of Vietnam is now step-by-step being restructured to remove the monopoly state and to put power market into operation. In that context, the National Load Dispatching Center, as the power system operator directing and managing the operation of all power plants, power transmission and power distribution companies, is required to develop a “well-trained” workforce to perform operating modes of national power system ensuring safety, stability and cost-effectiveness.
It has to meet the standards on frequency of national power system and voltage of national power transmission system; to comply with regulations on load dispatching of national power system in the power market and power transmission grid and the guidelines of electricity regulatory authority and power market management unit and not to discriminate in mobilization of power output from power generation companies in the national power system. This workforce should comprise of employees which have proper qualifications and competencies and are able to meet the work requirements. All of these things inspire our group to select the topic on "Status evaluation and solutions to human resources quality improvement in the National Load Dispatching Center" with the desire to find out some solutions to promote the human resource quality improvement in the National Load Dispatching Center in the competition and development process. Purpose of the research: Based on the analysis of human resources quality and social information, the current quality of human resources of National Load Dispatching Center (NLDC) will be assessed so as to propose solutions to improvement of human resources quality and to provide information for management of NLDC in the next phase.
Specific purposes are as follows: a) To clarify the strategy on improvement of human resources quality in the company b) To assess the current quality of human resources of NLDC so as to find out remaining issues and causes of weakness in human resources functions 2 MASTER OF BUSINESS ADMINISTRATION c) To give out some specific solutions to perfect and improve the quality of human resources in NLDC 3. Research methodology: The research methodology used in the thesis is the statistical analysis, gathering and processing of available documents, description and comparison with logical inference on the basis of a survey conducted among employees of NLDC. Methods used by the group in the research of this theme include: Research will be done through the review of documents and books of theories on strategy development in general and strategic human resources development in particular. In addition, the group will conduct actual research at company and use comparative method to provide reasonable and effective basis for strategic human resources development.
Contributions of the Capstone Project Report: a) To systematize some argumentative issues relating to human resources quality b) To make a comprehensive analysis of actual status of human resources of NLDC; and to develop some viewpoints as basis for improvement of human resources functions in NLDC c) To propose some solutions to improve the quality of human resources in NLDC meeting the human resources demand for development of NLDC so as to meet the requirements for operation of National power system and competitive and transparent power market 5. Structure of the Capstone Project Report: In addition to the foreword, conclusion, references and appendices, the Capstone Project Report consists of 3 main parts: Chapter 1: Fundamental theories on business strategy and human resources strategy Chapter 2: Strategic human resources development at NLDC Chapter 3: Some proposals and recommendations for improvement of human resources strategy of NLDC 3 MASTER OF BUSINESS ADMINISTRATION CHAPTER 1 FUNDAMENTAL THEORIES ON BUSINESS STRATEGY AND STRATEGIC HUMAN RESOURCES MANAGEMENT 1. Concept of Business Strategy - Strategies are ways by which long-term objectives are achieved.