1 TRÖÔØNG ÑAÏI HOÏC MÔÛ TP. HCM UNIVERSITEÙ LIBRE DE BRUXELLES HO CHI MINH CITY OPEN UNIVERSITY SOLVAY BRUSSELS SCHOOL MBAVB3 VUÕ THÒ HÖÔNG LAN A Research on THE DETERMINANTS FOR FRESH GRADUATES TO SELECT JOBS AND EMPLOYERS for Intel Vietnam MASTER PROJECT MASTER IN BUSINESS ADMINISTRATION (PART-TIME) Tutor’s Name: Dr. LEÂ THAÙI THÖÔØNG QUAÂN Ho Chi Minh City (2010) Tai Lieu Chat Luong 2 DECLARATION This thesis is a presentation of my original research work. 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 was done under the guidance of Professor LEÂ THAÙI THÖÔØNG QUAÂN, at the OPEN UNIVERSITY, HO CHI MINH CITY. [Researcher’s name and signature] VUÕ THÒ HÖÔNG LAN 3 ACKNOWLEDGEMENTS Many remarkable people have contributed to this thesis in their guidance, support and encouragement. Nevertheless, my special appreciation is for: Doctor LE THAI THUONG QUAN, my principal supervisor, who has not only supported me through this journey but also provided me with valuable academic guidance. Professor Michel VERSTRAETEN, whose human resource knowledge, theories and materials added to the richness and academic contribution of my thesis content.
Professor CLAIR GRUSLIN, whose market research teaching, books and materials added to the richness and academic contribution of my thesis content. BALAN KRISHNAN AMBIGAI, Staffing Manager of Intel Products Vietnam and Malaysia, whose support me with deep and practical knowledge of recruitment in Intel. My husband and children, Thien An and Thien Phuoc, who through their prayers and encouragement kept me focused and motivated, who have accompanied me patiently in this journey. 5 TABLE OF CONTENTS I.1 Back ground and Intel Vietnam introduction .4 Scope of Research .1 Importance of Recruitment & Selection in Human Resources .2 Human resource planning .3 Recruitment, Selection and Placement .1 Definition of Recruitment .2 Definition of Selection .3 Definition of Placement .4 Recruitment theories for Semiconductor Manufacturing .1 Classical Control Theory .2 Rough Set Theory for Semiconductor Manufacturing .3 Job satisfaction, Motivation & Recruitment Challenges .4 Behling and other’ theories of Recruitment.
Research Methodology - Hypotheses - Questions -: .1 Content of questionnaire .2 Format of questionnaire .3 Layout of questionnaire. Research results and findings: .3 Grade Point Average (GPA) .4 Education Level & Degree .2 The key expectations of fresh graduates .1 Job Major expectation .2 Compensation & Benefits expectation .3 Career Opportunity expectation .4 Working Environment expectation .5 Company Reputation expectation .6 Overall conclusion and ranking all expectations .3 Detailed Analysis top three expectations.1 Working Environment elements & ranking .2 Compensation & Benefit elements & ranking .3 Career Opportunity elements & ranking .4 Testing for difference in ranking expectations by segments .1 Ranking top 3 expectation elements by Education Level .2 Ranking top 3 expectation elements by Gender .3 Ranking top 3 expectation elements by Major .5 Perception of Fresh Graduates about Company Reputation .6 Preferable channels of Fresh Graduates .8 Knowledge about Intel of Fresh Graduates .9 Fresh Graduates’ ideas to improve Intel knowledge. Conclusion, discussion and recommendations .1 Conclusion and Discussion .1 Apply expectation analysis for marketing & benefit policy.2 Promote Intel image and opportunity information .3 Diversify job post channels .4 Revise expectation to utilize local labor pool .5 Higher education support policy for fresh graduates .6 Promote attractive and transparent career path. 68 9 LIST OF ABBREVIATIONS 1.
C&B: Compensation and Benefits 2. CO: Career Opportunity 3. CR: Company Reputation 4. HR: Human Resources 5.
IT: Information Technology 6. GPA: Grade Point Average 7. M&E: Mechanical and Electrical 8. PR: Publish Relation 9.
RC: Role Centrality 10. SPSS: Statistical Package for the Social Sciences 12. WC: Work Centrality 13. WE: Working Environment 14.: Bachelor of Science 10 LIST OF TABLES Table 4.1 : Sample distribution by Major .2 : Sample distribution by Major versus Gender .3 : Sample distribution by GPA .4 : Sample distribution by Education Level .5 : Crosstab ” English Skill & Education Level .6 : Working Environment Elements .7 : The most importance of Working Environment by Education Level 46 Table 4.8 : The most importance of C&B by Education Level .9 : Salary Expectation for Bachelor by Education Level .10 : The most importance of Career Opportunity by Education Level .11 : The most importance of Working Environment by Gender .12 : The most importance of C&B by Gender .13 : The most importance of Career Opportunity by Gender .14 : The most importance of Working Environment by Major.15 : The most importance of Compensation & Benefits by Major .16 : The most importance of Career Opportunity by Major.
58 11 LIST OF FIGURES Figure 2.1: Model of Engineering Education pathway .1: Sample distribution by Major .2: Sample distribution by Gender .3: Sample distribution by GPA .4: Sample distribution by Education Level .5: Overall about English Skill of sample.6: Importance Level of a Job at Major .7: Importance Level of Compensation & Benefits .8: Importance Level of Career Opportunity .9: Importance Level of Working Environment .10: Importance Level of Company Reputation.11: Importance Level of five Key Expectations .12: The most importance of Working Environment .13: The most importance of Compensation & Benefits .14: The most importance of Career Opportunity .15: Education Level & Salary Expectation for Bachelor .17: Preferable Channels to seek jobs .19: Fresh Graduates’ ideas to improve Intel knowledge. 61 12 CHAPTER I INTRODUCTION This chapter provides an overview of Intel Global, its investment to Intel Vietnam and its hiring need. A brief introduction to the young talent pool of Ho Chi Minh City is mentioned in the chapter, the research problem, core objectives, scope of the study and structure of the research report.1 Background and Intel Vietnam Introduction Intel Corporation is a technology company, and the world's largest semiconductor chip maker. Intel also makes motherboard chipsets, network interface controllers and integrated circuits, flash memory, graphic chips, embedded processors, and other devices related to communications and computing.
Intel combines advanced chip design capability with a leading-edge manufacturing capability. Originally known primarily to engineers and technologists, Intel's "Intel Inside" advertising campaign of the 1990s made it and its Pentium processor household names. During this period Intel became the dominant supplier of microprocessors for PCs. The 2010 rankings of the world's 100 most powerful brands published by Millward Brown Optimor showed the company's brand value at number 48.
The company is headquartered in California's Silicon Valley and has operations around the world. Outside of California, the company has facilities in Argentina, China, Costa Rica, Malaysia, Mexico, Israel, Ireland, India, Philippines, Poland, Russia, and Vietnam internationally. Intel has a Diversity Initiative, including employee diversity groups based on race and nationality as well as sexual identity and religion. 13 Intel has taken a giant step into Vietnam as the first and largest major foreign investor in high technology by investing US$1 billion in a semiconductor assembly and test facility at Saigon Hi-Tech Park in Ho Chi Minh City.2 Problem statement The production of Intel Products Vietnam needs thousands of young technicians, engineers and bachelors who have good engineering, business and English skill.
Recruiting qualified fresh students for the Company is the goal of the recruiting team. Data shows that annually, about 50,000 students graduate from more than fifty universities in Ho Chi Minh City. Potential skillful students account for about 70% of them. However English communication is a highest barrier for Vietnamese students.
A sample survey on English language skill among university graduates that do not major in languages found 51.7 per cent did not use English for research or communication purposes. Most students were not able to use the language to study, do research or even communicate after learning at universities for up to six years. A recent survey conducted by the Law University in Ho Chi Minh City reported only 1 per cent of its students held an advanced English-language degree. Around 80 percent of students are at beginner or primary levels.
The principal of The Hanoi Trade University said the graduates were able to get between 400 and 450 on the TOEIC test (Test of English International Communication) while an employee in Intel must have an English capability equivalently to 500 or higher. As a result, the potential candidate number is decreased significantly to around 20 per cent of the total graduates nowadays, given about 10,000 potential candidates available for thousands of organizations in Ho Chi Minh City. In particular, the combined effects of increased demand and smaller supply will 14 increase the competition among organizations over available qualified labor pool. Therefore, the high potential candidates often receive many attractive job offers from employers, especially multinational companies where the management trainee programs are conducted such as Unilever, Siemens, Sam Sung, Hongkong Shanghai and Banking Corporation….
These students are quite selective when identify ideal employers to start their career and devote their enthusiasm. In the coming years, Intel intends to expend to 4,000 employees from the current 500 employees. The size of the factory also increases more than ten times from one production chain currently. The human resource department of Intel has working out that in three years, the company will need an around 2,000 manufacturing technician and engineers at bachelor degree or college diploma.
Utilization of fresh and qualified student is a priority of Intel since with huge demand of new employees. The Company will hire up to 70% of the employees directly from universities, fresh graduates (both Engineers and Business students) and provide them with specific trainings to meet the company’s requirements. Experienced candidates are not much in the market and are usually not willing to change job or take part in re-training sessions. Good and fresh graduate students have been considered the best choice for the company to develop its workforce.
Though understanding the importance of new and fresh graduates in the work force of Intel, it is actually not an easy task to attract these students to work for Intel. In addition, Intel requests for good and qualified students, which is considered a strict demand under the conditions that Vietnamese universities’ training program is not catch up with the high technical industry.3 Research Objectives The research therefore will survey the determinants that affect the employer selection or job expectation of fresh graduates and last year students. From these factors, Intel might develop corporate marketing activities and adjust its recruitment policy to be more attractive to these students.4 Scope of Research Although there are many external factors coming from family, economic crisis or unemployment which may impact to the employer and job selection of the target group, the research will focus on the impacts come from the target group’s side only. The research will not extend to students and fresh graduates from the universities out of Ho Chi Minh City or those who have higher or lower education which are not mentioned in the target group criterion.
Experienced or non-Vietnamese candidates and those who are not qualified with the criterion mentioned above are also excluded from the research.5 Thesis structure This study report is presented in five chapters as follow: Chapter 1 - Introduction provides a brief introduction to the young talent pool of Ho Chi Minh City, overview of Intel Vietnam and its hiring need, the research problem, core objectives, scope of the study and structure of the research report. Chapter 2 - Literature Review provides some conceptual definitions of human resource planning, Recruitment ” Selection - Placement, theories of Recruitment and Job Expectation. Also it reports several literature reviews of Job Satisfaction and Motivation trend and Recruitment Challenges in Semiconductor Manufacturing. 16 Chapter 3 - Research Methodology introduces the research model, hypotheses, questions and issues.
This chapter would cover the general approach and construct measurement of the study, the source of desk research to be used, data collection method including the design of questionnaire and sampling method.