MEIHO UNIVERSITY Graduate Institute of Business and Management MASTERS THESIS Factors Affecting Human Resource Management Effectiveness in Tan Phu Electricity Company, Vietnam In partial fulfillment of the requirements for the degree of Masters of Business Administration Advisor: Dr. Kuo-Hung Tseng Co-advisor: Dr. Pham Duy Hieu Graduate Student: Bui Tien Duc December, 2010 ACKNOWLEDGMENTS First of all, I sincerely acknowledge the help of the Board of Directors of Ho Chi Minh City University of Industry, Vietnam (HUI) and the Board of Directors of Meiho University, Taiwan (MU) for giving me the opportunity to study and research in this program. I am taking this great pleasure to sincerely express my deep gratitude and sincere thanks to Prof-Dr.
Kuo-Hung Tseng, Dr. Pham Duy Hieu, Dr Wei-Shuo Lo, Dr Nguyen Minh Tuan who gave me the fullest support for my fulfillment of this important graduation exercise. During my participation in the course, their valuable comments and remarkable advice helped me to finish the thesis. I also want to send my deepest thanks to all the professors from both universities as well as my colleagues who helped me to finish this research.
The thesis can be fulfilled with many helps and supports from many people and I always remember all the kindness. Best wishes! I Factors Affecting Human Resource Management Effectiveness in Tan Phu Electricity Company, Vietnam ABSTRACT Managing human resource effectively is one of the things that all companies hope. However, how to manage human resource effectively is not easy at all due to the fact that not all companies can do, especially finding out factors affecting human resource management (HRM) as well as identifying the impact degree of factors affecting HRM of the company to propose practical solutions for HRM enhancement. From these above ideas and for HRM enhancement in Tan Phu Electricity Company, the researcher chose the topic “Factors Affecting Human Resource Management Effectiveness in Tan Phu Electricity Company, Vietnam”.
This research topic solved four targets, in particularly: (1) identifying factors that might affect HRM effectiveness in Tan Phu Electricity Company (2) identifying factors really affectingHRM effectiveness in Tan Phu Electricity Company; (3) identifying the impact degree of factors affecting HRM effectiveness in Tan Phu Electricity Company; (4) proposing solutions for HRM effectiveness enhancement in Tan Phu Electricity Company. The group factors can affect the efficiency of HRM in Tan Phu Electricity Company included: (1) Planning, recruiting, training and developing human resource, (2) Regimes and policies on salaries, bonus, welfare and treatment and (3) Working environment, (4) Professional development opportunities; (5) Motivation for working; (6) Business Culture. To solve these four targets, the researcher carried out basic research steps such as learning and analyzing theoretical basis; surveying ideas of managers, employees of Tan Phu Electricity Company; finding out factors affecting the effectiveness of HRM in Tan Phu Electricity Company; using software SPSS 14.0 to analyze to find out factors really affecting effectiveness of HRM in Tan Phu Electricity Company; giving out practical solutions for HRM effectiveness in Tan Phu Electricity Company and so on. All of these problems will be presented in the following five chapters.
Keywords: Human Resource, Human resource management, Effectiveness, Human Resource Management Effectiveness, Tan Phu Electricity Company. II Factors Affecting Human Resource Management Effectiveness in Tan Phu Electricity Company, Vietnam Contents ACKNOWLEDGMENTS. VI Chapter 1 Introduction .1 Research Background and Motivation.3 Research Scope and Limitations.4 Definition of Terms. 3 Chapter 2 Literature Review.1 Effective Human Resource Management .1 Some related concepts.2 Model of human resource management effectiveness.2 The Factors Identified Effective Human Resource Management.3 Factors Affecting the Effectiveness of Human Resource Management .1 Motivation stimulating people with effective human resource management.2 Business culture for effective human resource management.
24 Chapter 3 Research Methodology.3 Research Subject and Sample .5 Validity and Reliability. 36 Chapter 4 Research Results and Analysis.1 Descriptive Statistics Analysis about General Information and Research Objects .1 Descriptive statistics analysis about gender.2 Descriptive statistics analysis about working position.3 Descriptive statistics analysis about age, education level, working time.2 Analyze to Check Hypotheses Given by Linear Regression .3 Influence Analysis of Factor Groups That Affect HRM by Linear Regression .1 Analysis of factor groups that affect human resource management.2 Analysis of factor groups that really affect HRM. 44 Chapter 5 Conclusion, Discussion and Implication.1 Building suitable Business Culture.2 Building a reasonable and fair system of regimes and policies on salaries, bonus, welfare and treatment. 52 Appendix 1 – English Questionnaire.
56 Appendix 2 – Vietnamese Questionnaire. 59 Appendix 3 –Basis for determining sample size. 62 IV Tables Table 2-1 Compare Personnel Management to Human Resource Management .10 Table 2-2 Result of Surveying Importance Order of Motivation .23 Table 2-3 Differences of Human Resoure Management between Japan and the West .25 Table 2-4 Summarize Basic Factors Affecting HRM Effectiveness .26 Table 3-1 Factors Affecting HRM Effectiveness in a Company.34 Table 3-2 Reliability of the Questionnaire.36 Table 4-1 Descriptive Statistics Analysis about Gender.37 Table 4-2 Descriptive Statistics Analysis about Working Position .38 Table 4-3 Descriptive Statistics Analysis about Age, Education Level, Working Time.38 Table 4-4 Model Summaries.39 Table 4-6 Model Summaries.40 Table 4-8 Model Summaries.40 Table 4-10 Model Summaries.41 Table 4-12 Model Summaries.42 Table 4-14 Model Summaries.43 Table 4-16 Model Summaries.45 V Figures Figure 1-1 The Organization Chart of Tan Phu Electricity Company.2 Figure 2-1 Human Resource Management Model of Vietnam.12 Figure 2-2 Fornbrum Model .13 VI Factors Affecting Human Resource Management Effectiveness in Tan Phu Electricity Company, Vietnam Chapter 1 Introduction This chapter includes four sections: (1) research background and motivation, (2) research purpose, (3) research scope and limitations, and (4) definition of terms.1 Research Background and Motivation Electricity Branch is one of the most important industries in Viet Nam. There are several reasons for this.
First, Electricity Branch has played an important role in the cause of socio-economic development, such as the contribution to hunger eradication and poverty reduction. Second, Electricity Branch has increased the process of industrialization and modernization of Viet Nam. In addition, Electricity Branch has ensured national defense and security. Hence, the business of the Power branch is also regarded as the artery of the economy in Viet Nam.
On 22nd June 2006, Vietnam Electricity Branch officially shifted to a new stage of development with the approval of the pilot project that is forming Vietnam Electricity into a multi-sectors of modern industries with modern technology and management. The members of the group include construction investment, production and trading electricity, public telecommunication, finance, banking, in which electro mechanics is the major business Vietnam Electricity has three main sections: electricity production, electricity transmission, and electricity distribution. Tan Phu Electricity Company (Tan Phu Electricity as the former name) is one of the unit manufacturing and trading electricity, trading telecommunication directly under Ho Chi Minh City Power Corporation (a member of Viet Nam Electricity), Tan Phu Electricity Company was established on 01/07/1983, head office address is at: 42B Tran Hung Dao, Tan Son Nhi Ward, Tan Phu District, Ho Chi Minh City. Tan Phu Electricity Company has 552 employees, including 141 female (rate of 25.5%) and 411 male (rate of 74.5%), and the organization consists of 12 Departments (Source: Personnel Department, 2010).
1 Director Vice Business Director Vice Engineering Director Dept of Dept of Dept of Dept of Finance - Planning Administration Personnel Accounting Dept of Dept of Fee Dept of Dept of Dept of Dept of Dept of Grid Dept of Sales Collecting Telecommu Electricity Engineering Electricity Electricity Project - meters Operation Management Management nication management Figure 1-1 The Organization Chart of Tan Phu Electricity Company (Source: Department of Personnel, 2010) Therefore, the Electricity Branch in general is under going an important change. Tan Phu Electricity Company, a branch unit, is required to response to such changes. The purpose of changes is to deal with the following issues: sufficient electricity power for consumption, taking part in production and business of multi-sector, and the increase of the enterprise value. How the human resources is coping with such changes.
All of the sections that need to cope with the changes, the improvement of human resources is essential. For Tan Phu Electricity Company, the issue of human resources administration is the most important things that need to take care of because of the reasons: (1) management of human resources in Tan Phu Electricity Company is currently only the management of personnel, the company is facing identifying factors affecting human resource management effectiveness, therefore solutions given by the company for effectiveness enhancement are not efficient as expected; and (2) to meet demands of economic integration in new context, there need to be basic changes, modern human resource management approaches. Form these above issues, the researcher chose the topic “Factors Affecting Human Resource Management Effectiveness in Tan Phu Electricity Company, Vietnam”.2 Research Purpose This study aims to find out the factors affecting human resource management effectiveness in Tan Phu Electricity Company. According to research purpose, several research objectives developed are: Objective 1: Determine factors that might affect human resource management effectiveness in Tan Phu Electricity Company.
Objective 2: Determine factors surely affecting human resource management effectiveness in Tan Phu Electricity Company. Objective 3: Determine the impact degree of factors on human resource management effectiveness in Tan Phu Electricity Company. Objective 4: Propose solutions for human resource management effectiveness enhancement in Tan Phu Electricity Company. The proposed research questions are: Question 1: Which factors might affect human resource management effectiveness in Tan Phu Electricity Company? Question 2: Which factors surely affect human resource management effectiveness in Tan Phu Electricity Company? Question 3: How is the impact degree of factors on human resource management effectiveness in Tan Phu Electricity Company? Question 4: What are solutions for human resource management effectiveness enhancement in Tan Phu Electricity Company? 1.3 Research Scope and Limitations Research scope of this topic is in an organization, specifically in Tan Phu Electricity Company which operates in manufacture and trade in the territory of Tan Phu District of Ho Chi Minh City, Viet Nam.
Due to human resources limitations, in the process of researching, the researcher only surveyed the effect of human resource management through objects as managers and employees working in Tan Phu Electricity Company without surveying the other objects outside the Company.4 Definition of Terms Human resources: According to Begg, Fischer & Dornbusch (1995), Human resources is what human beings have accumulated in the process of working both in the 3 past and at the present, such as qualification, experiences and so on, and it is this which brings human beings achievement in the future, exactly income increase for them. Human resource management: Human resource management is defined as systems of philosophies, policies and relevant activities on attraction, training, development and keeping the human elements in one organization to achieve the optimal result for both organization and its employees (Tran, 2006). Effectiveness: According to Lexicography Center (1997) then effect is the result that work required brings. Human Resource Management Effectiveness: human resource management effectiveness is considered as the result that organization gets through human resource management (Nguyen, 2003).
Tan Phu Electricity Company: Tan Phu Electricity Company (the former name is Tan Phu Electricity) is one of the units manufacturing and trading electricity and telecommunication directly under Ho Chi Minh City Power Corporation, the company was established on 01/07/1983, the Head office located at #42B Tran Hung Dao St, Tan Son Nhi Ward, Tan Phu District, Ho Chi Minh City, Vietnam. 4 Chapter 2 Literature Review For the goal of this research, researcher has studied the theoretical basis related to the effectiveness of human resource management and give some viewpoints, opinions as follows. This chapter includes: (1) effective human resource management, (2) the factors identifying effective human resource management, and (3) factors affecting effective human resource management.1 Effective Human Resource Management 2.1 Some related concepts. The concepts that are discussed in this part includes the concept of human resources in general, the concept of human resources development, the concept of human resource management.