Doctoral dissertation: Manager resource development in small and medium-sized ente rprises (SMEs) of animal feed production industry in Vietnam

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Research objectives: Systematize theories on human resources (HR) development, MR development in enterprises; Study the content of MR development and analyze the major factors affecting MR development in the SMEs of animal feed production industry in Vietnam; Recommend solutions to develop MR to meet the development needs of Vietnam animal feed production industry to 2020.

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Nội dung Text: Doctoral dissertation: Manager resource development in small and medium-sized ente rprises (SMEs) of animal feed production industry in Vietnam

1 2 INTRODUCTION - Limitation of the study: Thesis only studies private enterprises, limited companies, partnership enteprises, joint stock companies without 1. Rational of the research state capital and it do not study state enterprises, foreign and joint ventures According to statistics of Vietnam Animal Feed Association, currently enterprises. there are 241 animal feed production enterprises that spread across the MR development in SMEs is developing existing managers in provinces. Domestic SMEs are evalutated weaker and difficult to compete enterprises, not attracting and recruiting from the outside. Subjects of MR with large foreign companies on three aspects: management capacity, development is managers who perform certain management functions in promotion policy and input strategy that depend very much on the capacity SMEs of animal feed production industry in Vietnam including top managers of managers. Actually these enterprises mainly operate independently and (Director, Deputy Director and Chief Accountant), middle managers (Deputy economic potential is limited. About 80% of manager resource (including Manager of Department or above) and lower-level managers (Head of three levels: top, middle and lower-level management) of SMEs hold Production). university degree but mostly in engineering majors. Economics majors are limited; especially management and operation skills are weak, and have not 4. Contribution of the research been trained methodically. Therefore ability of SMEs of animal feed About the theory production industry in surviving, developing sustainably and having - The research summarizes the theoretical issues related HR competitiveness in the economic integration process is an enormous development in general and MR in SMEs development in particular. Thesis challenge. shows its own perspective on the content and MR development activities in The shortage of human resources, especially manager resource (MR) is enterprises: MR development is not only focusing on training but also on a major challenge for SMEs; therefore the author chose the topic "Manager other important activities, such as MR planning (assessing the status of MR resource development in small and medium-sized enterprises (SMEs) of and forecasting the MR); personal development and manager promotion. animal feed production industry in Vietnam" to do the research for her - Thesis researchs and studies international experience about MR doctoral thesis. development in SMEs and draw lessons for SMEs in Vietnam. 2. Research objectives In practice Systematize theories on human resources (HR) development, MR - MR development in SMEs is a new research content for SMEs of development in enterprises; Study the content of MR development and animal feed production industry in Vietnam. Research results showed the analyze the major factors affecting MR development in the SMEs of animal limitations in MRs development activities: (i) Do not have department feed production industry in Vietnam; Recommend solutions to develop MR responsible for HR development in general and MR development in to meet the development needs of Vietnam animal feed production industry particular; (ii) Do not have MR development plan in the short term and long to 2020. term; (iii) Lack of coordination with outside training institutions; (iv) Do not 3. Subjects and Scope of the research have personal development plan for managers; (v) Unclear manager - Research subjects: MR development in SMEs of animal feed promotion policies and do not have specific standards, procedures. production industry in Vietnam. - Proposing groups of solutions to develop MR, including new solutions - Scope of the research: Thesis focuses on researching SMEs of animal focused on improving the quality of MR for each specific level because of feed production industry in the Northern provinces of Vietnam. the different quality requirement of mangers at all levels. Training will play a key role in these solutions.
3 4 5. Structure of the thesis 1.1.3. Research related to MR development in the enterprises Besides the introduction, conclusion, list of references and appendices In 2000 Jason Cope explored the learning process of entrepreneurs part, the thesis consists of 5 chapters. Chapter 1: Overview of scientific related to the parallel process of personal development and business. This studies related to the research; Chapter 2: Literature review on MR study highlighted the need for consulting support programs to help development; Chapter 3: Research Methodology; Chapter 4: Research entrepreneurs increase the effectiveness of learning outcomes. Other studies results; Chapter 5: Solutions and Recommendations. addressed learning styles of enterprise owners (David Rae, 2000), training and development for enterprise owner (Douglas D. Durand). CHAPTER 1: OVERVIEW OF SCIENTIFIC STUDIES RELATED TO In 2004 while studying on training & development and the THE RESEARCH development of SMEs in Australia, Janice Jones analyzed and showed the important differences in management and professional qualifications training, changing training methods to suit with the SMEs development. 1.1. Overview of research on MR development in the world David Devins and Steven Johnson in 2003 studied the training and 1.1.1. Studies related to the human resource development theory development of SMEs, HR development support and solutions to interfere in training and development activities in SMEs in the UK. The number of surveys, analysis and critical theory development in HR development has been limited in the past two decades. This is a very Alan Coetzer, 2006 studied the influence of managers on the elements complex and developing field; therefore defining theory of HR development of working environment that had ability to affect learning in formal is relatively difficult, even the concept of HR development is not a unity. It workplace. Juliet MacMahon, 1999 studied life and growth cycle which can be said that HR development which does not really have its own theory, suggested that the ability of internal management is an important element in is based on the application of the theory of its basic tenets such as education, HRM and can affect the success of a small enterprise. general systems theory, economics and the theory of human relations and 1.2. Overview of research on MR development in Vietnam’s enterprises organizational behavior. In recent years there have been some scientific studies at ministerial Whether the theory studied in the various view they all agreed that HR level, doctoral thesis and master thesis which studied the Vietnamese development aims to develop the skills and awareness for each individual, entrepreneur, management capacity, MR training and development in thus bringing their contribution to the organization through learning, training organizations and enterprises. These studies mainly go into analyzing and and development. assessing the status of training and development for management staffs, 1.1.2. Research related to theories on human resource development professional staffs or lecturers in organizations, enterprises or training institutions. This is one of the important activities in organizations and Since the term of HR development has been used, there are at least two enterprises to enhance the managers’ capacity and their professional. main methods that have been developed related to the realization of HR development in organizational theory: In general, these studies summarized the theory on HR training and development in general and MR in particular. However, these studies - English researchers follow the study method and model development, primarily assessed the status of training and proposed solutions to improve which focus on training and development. the quality of management workforce and technical workers in a certain - The U.S. researchers emphasize performance results model, which industry, or recommend macro management policies. The above mentioned focus on staff development to enhance and improve the work efficiency. studies have not considered objective and subjective factors affecting the MR Most of American approach is through organizational development theory development of enterprises and the impact of these factors. and emphasizes the development of training, consulting and leadership.
5 6 CHAPTER 2: LITERATURE REVIEW ON 2.2.1.3. Structure of MR MR DEVELOPMET Structure of MR is shown on various aspects such as the structure of 2.1. Concepts training levels, gender, age... MR structure reflects the relationship among departments in overall HR of the enterprise. The most important structure 2.1.1. Human resources: HR of an organization includes all employees who which reflects the overall quality of MR in the enterprise is structure by are working in that organization, and human being is understood as resources sector, by the qualifications, and by the capability of positions. of each person that includes physical and intellectual resources. 2.2.2. Main activities of MR development 2.1.2. Manager resource: Within the scope of this research, MR can be understood as closely linkage among the implementation people of certain 2.2.2.1. MR planning management functions in the SMEs of animal feed production industry in HR planning is the process of evaluating, identifying HR needs to Vietnam, including top managers (Director, Deputy Director and Chief meet the goals of the organization and building up the working plan to meet Accountant), middle managers (Deputy Manager of Department or above), those needs. The essence of HR planning in general and MR planning in lower-level managers (Head of Production) to maximize the abilities of HR particular is planning MR in short, medium and long term for the enterprise. in order to meet the development goals of the enterprises. MR planning will forecast the demand of MR that will be the basis for 2.1.3. Human resource development: is the process of increasing the development of MR in enterprise. quantity (size) and improve the quality of HR to create more reasonable HR 2.2.2.2. MR training structure. All three aspects of quantity, quality and structure of HRD To make the MR training activies effective, enterprises need to build fastened together, in which the most crucial factor of development is HR the training program by system approaching includes three stages: Identify quality must be enhanced. training needs, Implement training and Assess training. 2.1.4. Manager resource development: MR development is a activity of Identify training needs related to organizational analysis, job analysis HR development. MR development aims to ensure the quantity of managers, and personal analysis. After identifying training needs, organizing to improve the quality of managers in order to support them to fulfill manager’s implement training is very important. This is completed by selecting the roles and responsibilities. proper object of training, training methods, training facilities, appropriate 2.2. Content and main activities of MR development teaching staff and creating the necessary conditions for managers to 2.2.1. Content of MR development participate in training effectively. Training activities should also be evaluated to see what are the obtained results and the learned lessons for the next 2.2.1.1. Quantity development times. Assessing the number refers to the current number of managers and the 2.2.2.3. Personal development and manager promotion number of managers in the future. The number reflects the scale of an enterprise which is considered association with the structure of MR. - Personal manager development: is a term that describes training experience, working practices, and counselor relationship to improve the 2.2.1.2. Quality development managers. Quality of MR is evaluated through implementation capacity, - Manager promotion: Promotion is putting workers in a position with higher qualifications, management skills, quality, health ... of managers. Quality salary, more prestige and greater responsibility, better working conditions and assessment of MR is a critical requirement to analyze, assess the required capacity having many more opportunities for development. of each position to meet the development goals of the enterprise. Improving the quality of MR is also developing MR in terms of quality.
7 8 2.3. Factors affecting manager resoure development in SMEs Prior to the rapid change of science and technology, the MR 2.3.1. Macro policies: Any enterprises or organizations which active in the development activities are more focused because managers should be national economy must abide by the rules and policies of that nation such as provided knowledge, new skills to be able to use the new equipment putting labor law, investment law... Therefore training and HR development in into production. To be able to manage and administer the high qualified general and MR development in particular must also comply with these professional workforce, modern production lines, the managers need to be regulations. trained and developed. 2.3.2. Business strategy: Business strategies of enterprises which have 2.3.7. Organizational culture: Under working environment aspect in MR significant impact to MR development, is a basis for planning the development, organizational culture is analyzed on the basic criteria: development direction of the MR about quantity, structure, and capacity working style, leadership style, relationships between staffs and requirements and propose implementation solutions in each period of the characteristics of staffs. Management methods will focus more on human organization. In addition, business strategies also affect MR development culture, a method that has capable of stimulating self-reliance and creativity. through other factors such as the structure of business operation, If enterprises highly evaluate the striving of individuals in enterprises, characteristics and operation scale of the enterprise. obviously it will affect MR development activities. 2.3.3. Organizational model and structure: Organizational model and 2.3.8. Financial capacity: Financial capacity of enterprise also affects structue affect MR development on two main items: Firstly, the business implementation of training activities in enterprise. Because of limited model and structure decide organizational management structure and financial capabilities many enterprises can only do the internal training in implement MR development. Secondly, the business model and structure enterprises and can not send staffs for training at the reputable training decide that MR structure should be consistent with the structure of organizations. production and business activities in each period. 2.4. Meaning of MR development in SMEs 2.3.4. The vision of enterprise leaders on MR development: If the vision 2.4.1. Small and medium-sized enterprises (SMEs): is a business which of enterprise leaders is taking training and development as measures to registered in accordance with law, is divided into three levels: micro, small improve the quality of MR, training and development activities of this and medium by the scale of total capital (total capital that is equivalent total enterprise will be emphasized and widely organized. The vision of leaders is property is determined in the balance sheet of the company) or annual always the most impact factor on the operations of the enterprise and will average number of employees (total capital is the priority criteria). decide to invest developing in which enterprise’s activities to achieve 2.4.2. The necessity of MR development in SMEs enterprise’s goal. HR development in general and MR development in particular is an 2.3.5. Human resoure management policies of enterprise important condition for enterprises to survive and sustainably develop for The HR policies in enterprises express the specificity of enterprise three main reasons: Meeting the requirements of the organization; Meeting and are very different. The policies depend on the activity field, on the the learning needs and development of managers; Being the strategic scale, characteristics and properties of enterprises, on the skill level and solutions to create competitiveness advantage of enterprises. the vision of leaders. These are some of the most important HR policies of 2.5. Experience in MR development in SMEs of some countries in the enterprsies: HR attraction policies; HR arrangement and usuage world regulations; Treatment regime. 2.5.1. Experience in HR and MR development of Japan 2.3.6. The level of science and technology: It can be confirmed that the success of Japan is thanks to the HR management model. This model has allowed managers to implement
9 10 consensus opinion goal and benefit sharing between enterprises and Hanoi, Hung Yen, Bac Ninh, Ha Nam, Hai Duong... by detailed individuals. The philosophy "The whole country is a company, the company questionnaire. is as family" has created a major power in the social development process. 2.5.2. Experience in HR and MR development of ASEAN countries Overview of the research Malaysia, Singapore and Thailand have HR and MR fostering and development activities which have reached harmony with life and working environment are constantly being improved for each employee; focus on Systematized theory developing specialized associations... 2.5.3. The applied lessons to Vietnam Through empirical study of MR development in some countries around Questionnaire design the world such as Japan and the ASEAN countries (Singapore, Thailand), the applied lessons to the MR development of SMEs is: assessing current Influential factors Current MR development managers, developing and publishing MR development strategies and activities in SMEs - Macro policies policies, paying attention to regular improvement activities with different - Business strategy and forms and organizing management systematically and closely. plans - MR planning - Leaders’ view Clarify the cause of - MR training - Financial capability MR development - Personal manager development braking - Manager promotion CHAPTER 3: RESEARCH METHODOLOGY 3.1. Research design Clarifying the Propose 3.1.1. Research process (Figure 3.1) limitations in MR solutions to Survey on the development develop MR 3.1.2. Research methodology current quantity of implementing MR 3.1.2.1. Qualitative research Current status Clarify Qualitative research method is used in the discovery research stage: of MR in SMEs Content of requirements Survey on the MR studying the secondary literature and discussion with experts, industry current quality of about: - Number of devlopment managers, and some enterprise owners and managers to explore, adjust, and MR managers supplement observed variables, build up the preliminary scale of factors - Working - Quantity implementati - Quality affecting MR development and current status of MR development. This - Structure on capacity method is done through in-depth interviews with a pre-prepared content. Survey on the of managers current structure of 3.1.2.2. Quantiative research MR - MR structure Quantitative research method is used to test the measurement scales and measure factors affecting MR development activities in SMEs. This is the official study period which is done through a survey (sample randomly selected n = 75) some owners/directors of SMEs and managers mainly in Figure 3.1 Research process
11 12 3.2. Official research 4.1.2. Current development status of Vietnam’s animal feed production 3.2.1. Questionnaire design industry Questionnaire is done on the basis of the selected scale and group According to statistics, there are now 241 animal feed processing discussion about the factors affecting the MR development in SMEs of enterprises (16.2% of foreign enterprises, 6.4% of joint ventures enterprises animal feed production industry. Content and observed variables in the and 77.4% of dosmetic enterprises). Distribution of animal feed production composition are corrected accordingly. All the observed variables in enterprises primarily focused in the Red River delta – 106 enterprises, components are used 5-point Likert scale which is arranged from small to accounting for over 44% and the South East has 67 enterprises accounted for high number in which higher number is higher agreement with the statement 28%. Vietnam Government encourages enterprises to invest in domestic (1: Strongly disagree, 2: Disagree, 3: Neutral, 4: Agree, 5: Strongly agree). animal feed production industry. The number of enterprises is growing, in which about 20-25 enterprises has built its own brand with the amount of 3.2.2. Evaluate the reliability of the scale: results of reliability analysis investment from 2 - 3 million USD. About 30 enterprises invested over 10 Cronbach's Alpha coefficient for the factors show that those factors are billion VND and the rest are small workshop, each month they produce from reliability. This demonstrates appropriate scales and they can be used. 100-300 tons of animal feed. 3.2.3. Data process 4.1.3. The contribution of SMEs of Vietnam’s animal feed production The collected data are processed by SPSS software version 13.0. After industry being cleaned and coded data will be analyzed through the following steps: - Create jobs - Assessing the scale reliability through Cronbach’s Alpha coefficient. - Contribute to economic growth - Descriptive analysis to assess the factors affecting MR development - Ensure a more dynamic economy the current status of MR development in the SMEs of animal feed production industry. - Increase income for residents - Contribute to the implementation of economic restructuring CHATER 4: RESEARCH RESULTS - Contribute to entrepreneurs training 4.1. Overview of Vietnam’s animal feed production industry 4.1.4. Characteristics of SMEs of Vietnam’s animal feed production industry 4.1.1. The development of Vietnam’s animal feed production industry - Small size of capital and labor Since the 90s, animal feed production industry of Vietnam has grown rapidly along with the development of the livestock sector. Average growth - Low level of technology in total output feeds has tended to increase since 2000, reaching an average - Low education level of SMEs owners and managers of increasing 13.5% from 2000 to 2011. During 2001-2006, the increase rate - Weak capacity of SMEs owners and managers of average livestock was 8.5% and now accounts for about 25% of the total agricultural value. Thanks to the innovation policy of Vietnam Government - Qualifications and capacity of staffs are lower than education levels of as well as domestic and foreign invesment encouragement, multinational different types of enterprises because of specific technologies in SMEs animal feed production companies like Cargill, CP, Proconco and Japfa - The level of information access: according to enterprises, they still began operation in Vietnam. lack the information and the published data in the journal is not often updated, especially the information of price.
13 14 4.1.5. Opportunities and challenges of Vietnam’s animal feed production 4.3. Current status of MR industry until 2020 4.3.1. Quantity - Market opportunities: With the trend of science and technology According to the survey result of the authors, 73.3% of enterprises development of society, people increasingly create productivity and high answered that number of managers in the past 5 years increased less than 20% quality livestock, that requires an animal feed industry to develop of the total, and only 10.7% of the total enterprises in this survey had the appropriately. increasing number of managers more than 20%. Thus, there are 16% of enterprises did not increase the number of managers in the last 5 years. - Challenges of industrial animal feed price competitiveness: Price of Vietnam industrial animal feed is always higher than other countries in the 4.3.2. Quality region from 10-20%. Quality of MR is assessed through capacity framework to perform the tasks at three management levels in enterpriese: top, middle and lower-level - Requirements of animal feed production technology innovation: In the managers. Implementation capacity depends on the understanding of coming years, SMEs of Vietnam animal feed production industry should technical expertise, leadership and solving daily work skills of managers and adopt technological and industrial feed production line of advanced countries especially also depends on their working attitude and style. This study in the world and in the region: silo storage system preserving materials; provide assessment of the current capacity of managers at three management automatic control system for downloading of materials, mixing materials, levels in SMEs of animal feed production industry, the required heat treatment, extruded pellets; application of information technology in competencies of managers in the SMEs of this sector which need to be management of animal feed. developed. They are: Thinking capacity, Management capacity, Professional capacity and Communication relationship & behavior capacity. Specifically - Manage animal feed quality: This work is still very weak in SMEs of as follows: animal feed production industry. Table 4.23: Necessary competencies to be developed for managers 4.2. Sample description No. Content 57.33% of enterprises were established and have operated for 5-10 1 Long-term vision for the development of the industry and enterprise years. Number of enterprises operating for over 10 years is 44 accounting for the rate of 29.3%. Number of enterprises operating under 5 years in this 2 Arrange appropriate organization to functions and tasks industry is the lowest with 20 companies (13.3%). The majority of 3 Schedule manager training and promotion plan which is appropriate to enterprises (65.3%) operating in this industry are joint stock companies. The the development of enterprises rest are limited and private companies accounting for 21.3% and 13.2% of 4 Build up clear and management regulations which getting consensus of the total enterprises respectively. Most enterprises have a total workforce of staffs 50-100 people with a rate of 64%. Number of enterprises with 100-300 5 Schedule training and promotion plan for specialized staffs which is employees account for 22.7% and the rest are under 50 (13.3%). In which appropriate to the development of speciality enterprises that have management employees from 10-30 are accounting for 6 Organize implementing plans to develop expertise, speciality which is the largest proportion (64%). Enterprises with over 30 managers are appropriate to the development of the enterprise DN accounting for 22.7% and only 13.3% of enterprises have fewer than 10 managers. 7 Sum-up, review and evaluate the results of implementing clearly and convincingly
15 16 8 Negotiation and decision making skills and the capacity to adapt to environmental changes will help enterprises stabilize input materials for production. 9 Skills to access and accurately evaluate information related to market • Structure: In addition to these general required competencies of managers in other production sectors, managers of animal feed production industry lack As predicting the MR structure by functions in the next 5 years, 86.7% international trade skills, the ability to access and exploit information on the of enterprises will increase the quantity of top managers and 57.3% of world market related to input material resources. enterprises will increase the number of middle managers less than 20% of the total manager number. Mos of enterprises will increase the quantity of lower- 4.3.3. Structure level managers, 68% of interviewed people said they would increase the Regarding the structure by function, 37.3% of enterprises in this survey number of lower-level managers. said that their enterprises did not increase the number of top managers in the 4.4.2. MR training last 5 years (from 2007 to 2012), 42.7% increased less than 20% in the total managers and 20% of them increased from 20% to 50%. Number of middle * Identify training needs for MR: The basis for determining training managers increased highest in the enterprises; 62.7 % enterprises increased needs is through organization analysis, individual analysis and result the number of middle managers from 20% to 50% of the total managers. evaluation of working performance under the business plan for each period. Only 25.3% of enterprises increased more than 50% the number of middle Survey results showed that 70.6 % eneterprises have used the results of the managers of the total in the last 5 years. The depth interviews showed that performance evaluation (including informal assessment) to determine most of SMEs in animal feed production industry commented that the training needs but most enterprises have not done the organization analysis. structure of their enterprises was suitable among the ratio of gender, age and The identification of training needs based on individual analysis was not qualification. Managers in enterprises did not have to take on other works at shown clearly in the enterprises. The enterprises still rely heavily on the the same time. Management of enterprise was not overlap between divisions subjective opinions of leaders about necessary training fields in their and departments. enterprises. Only 42.6 % enterprises have designed the system to collect actual capacity evidence of managers. Enterprises have not built the working 4.4. MR development activities capacity framework for each specific titles and position to be able to detect 4.4.1. MR planning the weak capacity that should be developed. • Quantity: * Training implementation to improve the quality of MR: 44% of 18.7% of enterprises forecast that they will not increase the number of surveyed enterprises have not had the overall plan to implement the training. managers in the next 5 years. The majority of enterprises (70.7%) will Enterprises mainly implement well training methods through guidance, increase the number of managers less than 20% and more than 20% mentoring in enterprises and designing appropriate training activities to meet compared with the total is 10.7%. the needs of managers (72% of surveyed enterprises agree). However, enterprises underestimate in coordination with outside organizations in the • Quality: design of training programs content, and training courses organization (only There are 40% of enterprises in this survey said that the management 13.3% of enterprises implemented this activity). capacity really need to be improved for managers in the future. Good The effectiveness of the training program is top concern, but the management capacity will help managers at all management levels will survey results showed that enterprises have not spent much attention for operate enterprises smoothly and efficiently to bring effective business to monitoring, reviewing and evaluating the effectiveness of the training their enterprises. Improving information search capacity, negotiation skills, program (only 28% of enterprises have done this activity).
17 18 4.4.3. Personal development and manager promotion 4.5.3. Financial capacity According to the survey results, 86.7% of enterprises highly evaluated Survey results show that 20% of enterprises do not have financial plan the contribution of each manager to have timely treatment regime. However for HR and MR development activities. Because of not having funds for this enterprises have not yet focused on planning personal development which is activity enterprises do not care and do not have the funds for staff suitable with development plans of the enterprise; not yet developed specific development activities. According to the interview results also because of goal systems for managers to have personal learning plan (only 13.3% of not having the budget, 20% of enterprises do not have suitable financial surveyed enterprises have implemented this activity). support for their staff to take part in the outside training organizations. Most enterprises implement the manager promotion and appointment by Approximately 17% of enterprises have partly financial support for their management levels. Only 29.4% of enterprises said they had policies to create managers to join in short-term courses to improve the professional level, favorable conditions for their staffs having the opportunity to develop and be mainly in marketing, preparation and implementation of business plans, promoted to management positions if they done their job well. This activity market research skills and leadership skills courses. needs more paying attention by enterprises’ leaders to create the best 4.5.4. Macro policies motivation for managers. The support policies of state and the industry have a great significance 4.5. Factors affecting manager resoure development in SMEs for the development of SMEs. Specific policies: 90/2001/CP Decree dated 4.5.1. Business strategy 23/11/2001, the Enterprise Law 2005, the documents as Cooperative Law, the Law on Foreign Investment Promotion, the tax rules, export import Survey results indicated that 53.3% of enterprises had built regulations, Decision 143/2004/QD-TTg August 10, 2004 by the Prime development strategy and business plan, but only 25.3% of them said that: Minister on HR training and promotion for SMEs… will affect the "Every year, their enterprises build their MR strategies based on proposed development of HR in general and MR in particular in SMEs. business strategy”. It means that SMEs is always passive in business process and there are very few enterprises can adjust the quantity, structure and requirements about manager capacity to respond promptly in each period when objectives and business plan change. CHƯƠNG 5: SOLUTIONS AND RECOMMENDATION 4.5.2. The vision of enterprise leaders The results of the survey show majority of all enterprises’ owners and 5.1. Development orientation for HR development for SMEs leaders (84%) are keenly aware of the importance and necessity of developing MR for the enterprise development. However, the perception is Decree No. 56/2009/ND-CP dated 30/6/2009 on supporting SMEs not coupled with practical action because the majority of enterprises do not development has clearly stated the responsibilities of ministries, industries have the HR development strategy in general and MR development in and localities in support planning for HR training, improving management particular. 44% of participants in this survey respond that their enterprises’s capacity for SMEs and confirmed that support plans for the HR training leaders directly involve in the planning MR development. However there are should be integrated into socio- economic development plans every year of 61.3% of the enterprises’s leaders does not regularly monitor the ministries, industries and localities. The Prime Minister issued Decision No. implementation of MR development. Most enterprises owners use 1231/QD-TTg September 7, 2012 on the SMEs Development Plan for 2011 - specialized HR development staffs that were not trained basically. They do 2015. Developing this type of enterprise is a long term, consistency strategy not build HR development policies and do not implement personal and throughout the Government’s action program. Accordingly, SMEs development for their staffs. development plan also gave 8 solutions in which the 4th solution group is:
19 20 developing HR for SMEs, focusing on management capacity building for on optimizing production, sales effectiveness, proactive input source, SMEs. developing after sales consulting services... For each target and depending In the coming time, while Vietnam continues to implement the on the specific enterprise, they will build up training programs and develop commitments of economic integration, SMEs will face very difficult MR to meet enterprises’ goals. challenges in production, business, and import & export operations. With the 5.3.1.2. Improving the awareness of all SMEs owners in MR development existence of MR quality which is analyzed in Chapter 4, training to improve Vietnamese SMEs’ leaders/owners should be more active in MR the quality of MR to meet the needs of economic integration is very development of their enterprises. Enterprises’ owners are required to identify important and urgent. This training should focus on training to improve the that the MR is the most precious asset, the most important factor in the capacity for entrepreneurs especially for SME owners. development of enterprise. MR is considered as the most important element 5.2. Perspective of MR development of the system to build business strategy and create competitive advantage. Fristly, HR development in general and MR development in particular The operating results of enterprises are created by the people and for the is the core issue, is the most basic conditions for SMEs to promote internal people as well. resources and develop sustainably. 5.3.1.3. Financial solution: Enterprises should establish investment and Secondly, MR development must use comprehensive, scientific and development funds for MR training and development. They should plan to comprehensive solutions to implement the content of MR development. They develop reasonable training and development funds and build a long-term are: ensuring the quantity and structure, improving the quality of MR and accounting system. They should also provide funding for the compilation of developing motivated factors for staffs to meet the practical needs of the documents and curriculum to enhance the quality of training and business activities in enterprises. development for MR. Thirdly, MR development is based on considering MR as valuable asset, 5.3.2. Solution group for MR development activities the most powerful impulse to promote enterprise development. 5.3.2.1. Build up MR development plan Fourthly, MR development must proceed from the specific conditions MR development plan in SMEs of animal feed production industry of enterprises in order to promote the potential and its strength. should focus on achieving three goals: reaching the reasonable quantity and Fifthly, MR development must take advantage of every opportunity to structure of manager, meeting the capacity requirements of each position, as overcome the challenges of integration into the world economy; as well as well as building MR development strategies and policies of SMEs should be conserve and develop traditional values, cultural identity and organizational consistent with the business strategy in each planning periods. Enterprises culture. should implement these following solutions to build up MR development plan: Assess managers’ capacities; Identify development strategy of 5.3. Solutions to develop MR in SMEs of animal feed production industry enterprise; Identify MR development needs; Build up MR development plan; 5.3.1. Solution group for the factors affecting MR development Implement MR development plan; Evaluate MR development plan. 5.3.1.1. Build up business strategies as basis for planning MR development 5.3.2.2. Complete the training activities in SMEs MR development is an activity to serve the business activities of a) Identify training needs enterprises so it should have come from the enterprise's business strategy. Enterprises should make a survey of training needs, and then distribute Enterprises need to build strategic business with clear oriented objective to the managers to collect accurate information on the current and future system. Each SME in animal feed production industry will have different training needs. After identifying the training needs of each manager, objectives to promote its competitive advantages. The main objectives focus enterprises can use different methods to synthetize the survey results. Since
21 22 then they can determine the right training needs of enterprise through solutions to improve future training programs hybrids, promote enthusiastic defining training objectives, determine right trainee and training content. workers engage in building up training program activities. To determine the exact trainees, enterprises should also implement 5.3.2.3. Implement personal development and manager promotion: working design and job analysis for the position to determine the training planning manager appointment, having plan to support managers to objects corresponding to the positions that should be trained in both present implement individual plan; enabling staff to cultivate and exposure more and future. It is necessary to build appropriate training programs for each experience in the work other than the work they undertake; encouraging different level of managers. For courses organized by the enterprises, it is individual responsibility in their personal development. necessary to have cooperation between universities’ lecturers and enterprises 5.4. Recommendations for state and SMEs management agencies to create appropriate teaching materials for manager training and development activities. For managers who are sent to outside training 5.4.1. Complete macro policies: organizations should also get information such as the purpose of education, State and SMEs managament agencies of ainimal feed production training requirements, description of job which will be done after being industry need to create a safe business environment and facilitate the trained and information about their strengths and weaknesses. After that, activities of SMEs. They are: building up completed, synchronous and enterprises can choose training courses with suitable content to meet the tightly law systems; creating a clear legal framework; building a modern training goals . infrastructure; developing appropriate macro policies to create convenient b) Implement training social economic environment for the development of the economy. Enterprises need to use training methods which have the training content - Improving the standards of animal feed, the legal technical and subject appropriate to managers at three management levels. Enterprises documents in the animal feed production. should organize professional training courses at enterprises by experienced - Formulate a coordinating organization system to implement the technical experts, high qualified staffs and lecturers from universities. For supporting policies and programs for the development of SMEs. top and middle managers, enterprises also should combine more domestic - Provide training on animal feed management for experts at the training with international training. In addition, enterprises can use localites. conferences, seminars and presentations methods... - Establish forecasts department about market of animal feed c) Evaluate training activities: After completing the training program, production, in which component is the managers of associations and enterprises can evaluate the training program by criteria such as training enteprises in animal feed production industry. objectives have been achieved or not, the weaknesses and strengths of - Bring information technology into managing animal feed because the training programs and economic effectiveness characteristics of training price information of materials to produce animal feed in domestic as well as through cost assessment and program results, from that comparing the in the world changes everyday. benefits of the training program. 5.4.2. Support training for MR in SMEs of animal feed production Through final tests and results of the working implementation, they can industry: Ministry of Agriculture and Rural Development has organized detect the advantages and disadvatages of training program. Besides, it is workshops and seminars to enhance knowledge of animal feed management necessary to be based on the assessment of the trainees after each course, for managers at departments and enterprises. The training content focused meaning using the questionnaire method. With appropriate designed mainly on knowledge about state management documents of animal feed; questionnaire, department in charge of training not only can gather taking samples of animal feed. information about the effectiveness of training courses but also can collect
23 24 However, SMEs want to be supported in financial issue to organize implemented effectively. SMEs do not have specific procedures to evaluate training courses about synthesis skills, international sales skills, marketing the effectiveness of MR development; do not have department responsible service skills and other specialized training. According to the author’s for HR development; HR and MR development not ben done regularly. So survey, SMEs wish to be supported to MR development as follows (ranking that SMEs do not have appropriate personal development plans with the from high to low in order of priority): 1. Policies to support funding for development plans of enterprise. training and development for SMEs; 2. Financial support; 3. Develop 3. Based on the above assessments, the thesis proposed some personal training system; 4. Policies to encourage lifelong learning; 5. perspectives, solutions and recommendations for MR development in SMEs Policies to encourage enterprises to develop on the job training. of animal feed production industry. The solutions for SMEs are: SMEs 5.5. Limitations of the study owners need to understand the importance of MR development and their role Limitation on research sample size: Quantitative research focuses in MR development; Formulate policies and strategies for MR development; primarily on SMEs of animal feed production industry in the North of Set up investment fund for the training and development of HR and MR; Vietnam, but not for the whole SMEs of this indutry in Vietnam. Implement personal training and development for MR; Besides the efforts of SMEs, the state should complete the macro policies to encourage the Limitation on data collection methods: During direct interviews with development of SMEs. SMEs owners of animal feed production industry in Northern, the athour had some difficulties. There were desired information that could not be fully exploited. Limitation on the scope of research: The research only studied on MR development in SMEs with main following types: private, limited enterprise and joint stock companies without state and foreign capital. Limitation on time of applying research results: The research results can only apply until 2020. After that, it is necessary to have other researchs to supplement consistently with the development needs of animal feed production industry in the future. CONCLUSIONS 1. The research codified the theoretical issues about HR and MR development; synthetized literature review about the content and activities of MR development in SMEs. 2. On that basis, the thesis collected information, analyzed the current status of MR development activities in SMEs of animal feed production industry. The thesis pointed out the limited capacity of managers and the limitations in MR development activities. Most enterprises owners are aware of the importance of MR development activities but they have not