Application of competency gap based training method at power engineering consulting joint stock company 3

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 C

TR NG I H C M 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 3

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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 1

Research objectives 2

Data collection method 2

Scope and limitations 2

Implications of research 3

Structure of the study 3

CHAPTER 1: THEORETICAL BACKGROUND 4

1.1 Training 4

1.2 General about competency gaps based training 6

1.2.1 Concept of competency and competency gap 6

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 3 18

2.1 Brief outline of Power Engineering Consulting Joint Stock Company 3 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 3 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

: 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 3 23

Table 2.2 Labor structure according to professional of PECC3 24

Table 2.3 Labor structure according to training level of

PECC3

26

Table 2.4 Training organization in PECC 3 27

Table 2.6 Opinion on training with job requirements 31

Table 3.1 Specialized trainings required for staff 36

Table 3.3 Identification capacity groups of management

Table 3.5 Identification capacity groups of technical engineers 53

Table 3.6 Identification capacity groups of technical workers 57

iii

CHART LIST

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 3 61

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 5 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

Scope and limitations

2

Based on the understanding the role of training policies and human resource development, along with required training of human resources of production, the theme: "Application of competency gap based training method in Power Engineering Joint Stock Company 3” has been chosen

Research objectives

The theme sets forth views in the application of the capacity gap based training methods in the Power Engineering Consulting Joint Stock Company 3

To achieve this purpose thesis has the following tasks:

- Reviewing the theory of the competency, competency gaps and competency gaps based training

- Identification the overall human resource management and training of company

- Application the competency gaps based training method to training in PECC3

Data collection method

The data thesis collection methods for this thesis mainly are based on desk review the data source of company, regulations, reports, plan, questionnaires related to the thesis, group discussion, and interview to direct approach to training program based on competency gap in PECC3, and then clarifies the perspectives and solutions

to use it most effectively

Scope and limitations

The object of this research is the workforce of the Power Engineering Consulting Joint Stock Company 3 and thesis limited in the core content of

Structure of the study

Beside of introduction, conclusion, references and appendices, the thesis includes three chapters:

Chapter I: Theoretical background

Chapter II: The situation of training at Power Engineering Consulting Joint Stock Company 3

Chapter III: Application of competency gap based training method in Power Engineering Joint Stock Company 3

CHAPTER 1: THEORETICAL BACKGROUND

4

CHAPTER 1: THEORETICAL BACKGROUND

Human resource management today is much more integrated and strategically involved Attracting and retaining right employees is vital for the sustainability of an organization The importance of training and empowering the workforce is, therefore, recognized by managers of each unit and functional areas of

an institution

1.1 Training

Training is a learning system set up by the organization in order to improve knowledge and skills of employees so that they can apply it to daily works helping them to be successful in their job performance

The training needs assessment is very important for the organization because through this assessment we can find out whether the training is necessary or not and whether trainees have basic skills to fully benefit from the training content or not

Moreover, organizations have to make sure that they create a good environment for learning After the training, the organizations should do the training follow up to ensure that the trainees put it into practices in their everyday works What

is more, this will help evaluate the training outcome and objectives whether it is achievable or not The assessment helps determine for example what kind of trainings that the organizations should provide to their staff and who should attend the training courses Furthermore, according to Noe, Hollenbeek, Gerhart, and Wright, the organizations can also find out the specific areas to be focused on The training curriculum should be developed to meet the outcome that organization wants It is also very important because it links to the effectiveness of the trainings After training, trainers should develop a form for participants to evaluate both content and techniques used in training in order to improve future trainings The organization should make

CHAPTER 1: THEORETICAL BACKGROUND

5

itself become a learning organization so the staff is continuously willing to learn the new work practices and apply what they have learnt to improve the quality of their works

To improve the quality and effectiveness of training and development resources, access to power is very popular in worldwide

Access capability was formed in the United States from the 1970s in movement training of trainers and human resource development by qualified to perform specific tasks This approach has the capacity to develop a new step in the years 1990s with many national organizations in American, Australia, New Zealand, and Wales

Access competencies in training and development resources have the following advantages:

- Access to power is based on education method which learners are center of training Based on the model competency gap training, the study will complement the shortage of individuals to perform their specific tasks

CHAPTER 1: THEORETICAL BACKGROUND

6

1.2 General about competency gaps based training

1.2.1 Concept of competency and competency gap

Recently “capacity” term used often in HRM (mostly translated into

“competency”) For example:

+ Competency based management

+ Competency based model

+ Competency based training and development

There are many definitions on competency, depends environment and goals to use that capacity But in general competency consist of the skills and knowledge required by employees to effectively perform their jobs or specific tasks the company assigns to them from time to time

Competency gap is the different between current competency level (CCL) of employees and required competency level (RCL) And according to Patricia K Zingheim, et al, competency gap is the difference between the existing abilities and skills of employees and what are expected of them in achieving the objectives that the company wants them achieve is the skill and knowledge gap

The four general areas of competency are:

1 Meaning Competency: The person assessed must be able to define with the purpose of the organization or community and act from the preferred future in accordance with the values of the organization or community

2 Relation Competency: The ability to create and nurture connections to the stakeholders of the primary tasks must be shown

3 Learning Competency: The person assessed must be able to create and look for situations that make it possible to experiment with the set of solutions that make it

CHAPTER 1: THEORETICAL BACKGROUND

7

possible to complete the primary tasks and reflect on the experience

4 Change Competency: The person assessed must be able to act in new ways when it will promote the purpose of the organization or community and make the preferred future come to life

Here, the competency is capacity to complete the activities (assignment, jobs) based on standards of that assignments; In other words, competency are capacities, knowledge, attitude required to a person to implement a job with good results

1.2.2 Determination of Competency Gap

Based on the Kenneth H Pritchard, “Introduction to Competencies,” White Paper, 1997, Society for Human Resource Management, determining the skills and knowledge gaps of employees is a necessary part of company’s human resource plan

In order to indentify the competency gap of any employee, it necessary to determine the following:

- The types of competencies required performing the job

- The required competencies level required of the employee

- The competency standard for each of the position in the organization

-The majorities of competencies relate to functional and behavioral

competencies of employees and vary from the top level to the lowest Core

competencies are common competencies for every position in the organization

The required competency level is the standard of performance for each duty based on industry standard The "industry" refers to the type of industry in which the company is carrying out its activities

The standard can range from 3 as being satisfactory to 4 as having performed beyond the expectation of the organization or 5 as having performed to industry

CHAPTER 1: THEORETICAL BACKGROUND

8

standard An employee who has attained a rating of "5" is considered as an expert in his or her field

The main task here is that carefully examine anything lower than this

The employee's competency is assessed at the end of a certain period of time, usually one year and no shorter than nine months

Normally the current competency level is based on ratings such as:

1 for beginner's level

2 for below standard

3 for satisfactory performance

4 for performance beyond expectation, and

5 for performance to industry standard

For example, if the RCL is 4 and the assessment by the supervisor indicates that the employee's CCL is 3, the "competency gap" is "1" expressed as a percentage

If the CCL is 4 and the RCL is 3, the employee had exceeded expectation Everyone needs to know and understand that there are limitations to capabilities of technology

Managers and supervisors must understand what to achieve their own ends or

to help people under their jurisdiction This can include the case whereby the ability of the employee is either indicated as adequate It may also happen that the employee's competence is stated as too low thus not reflecting the true current position

The organization needs to ensure that every manager and supervisor is equipped with the skills in determining the RCL and the CCL to ensure accuracy of the competency gap of each of their subordinates

The results of the competency assessment are not meant for determining salary

CHAPTER 1: THEORETICAL BACKGROUND

9

increase, however the information is useful (provided the assessment is done properly)

in determining whether the salary level of the employee is equitable, that is, it reflects his skills and knowledge apart from how responsible the job is

Further, it is not necessary to determine the skills and knowledge gap in respect

of every duty and responsibility Select the critical ones that go towards the achievement of employees' job objectives and company's overall strategic plan

1.3 Model of American Society for training and the competency based model of Boyatzis

One of the most typical example and is considered the most successful model

of the American Society for Training and Development In an effort to establish standards for training and development - Models McLagan has been established and used in universities as well as training in the U.S as in many other countries around the world McLagan's model of practical human resource development has achieved a number of objectives:

• Summary 11 the role of the professional development of human resources: Administrative managers, evaluators, managers, financial and training materials developers, business development consultant, trainer, marketing managers, the needs analysis experts, the subject of organizational change persons, designers and programs researchers

• Define and define 25 major capabilities of human resources development and

is divided into four groups: technical capabilities, business, relationships between the personals and intellectual thinking

• Define requirements for each product quality of work output in human resource development

In the capacity based model, the role of professionals and the capacities of key human

CHAPTER 1: THEORETICAL BACKGROUND

10

resource development are focused

* The model is based on the capacity of Boyatzis

Boyatzis's model has a very extensive influence in studies of competency management as well as practical training and management development

Boyatzis and Whetten & Cameron (1995) suggested that development programs training based on the model capacity to handle a systematic way following three aspects:

- Determine the capacity

- Develop the capacity

- Assessment them objectively

So when organizing training courses in our administration should be based on the capacity mentioned above, to determine the need for training capability is essential The model is based on the competency of Boyatzis to determine the capacity of managers, is divided into five groups:

Management objectives and actions: the performance-oriented, proactive action, use the concept for diagnosis and care about the effects

Leaders: confidence, presentation using verbal, logical thinking, the generalization

Human Resource Management: use of social power, positive attention to people, managing the group process, self-appreciation

Direct the activities of subordinate: Develop the subordinates and use unilateral power, unrestrained

Pay attention to around people: autonomy and objectivity in thinking, ability to adapt and endure, caring and friendly people

CHAPTER 1: THEORETICAL BACKGROUND

11

Training competency gap training methods is based on this model

* The main steps of a model of competence:

- Step 1: Define the vision, mission and strategic goals of the organization

- Step 2: Determine the processes, systems and internal procedures to achieve the vision, mission and strategic objectives have been identified

- Step 3: Determine the capacities needed to achieve the mission and objectives identified

- Step 4: Define gaps, competency gaps and form the development plan of the individual and the organization

- Step 5: Integrate these plans into development plans human resources the organization

Training the competency gap

Training the competency gap identified capacities need to be trained as followed chart:

Chart 1.1: Determination competencies

a Definition the list of competencies

a4 Define the importance a5 Complete dictionary of capacities

a1 Define policies and objectives of the organization

a2 Defining, grouping and selection competency

a3 Define all the capacities

CHAPTER 1: THEORETICAL BACKGROUND

12

a Definition the list of competencies

a1 Definition policies and objectives of the organization

The process of training competencies gap is a complex process, difficult to manage unless it is planned and implemented carefully Participants and methods of implementation must be determined before work is started

First, organizations must set up the Council to research program and determine responsibility for each member Composition of the Council is very important, including the prestigious representatives of the units in the organization (departments, units) The policies and objectives of the organization will be established by this Council

a2 Definition, grouping and selection competency

Based on the policies and objectives of the organization identified above, the Council will define and define the competencies required for the organization

Council will then group the capabilities Total group and the group's name will depend on which model capacity based organizations to establish this training process

c Curriculum planning and development

b Determination of rate competency (capability gap) b1 Determination proficiency level of capacity required b2 Determination proficiency level of the actual b3 Determination the rate of capacity

CHAPTER 1: THEORETICAL BACKGROUND

13

a3 Definition all the capacities

The Council will find a way to define a capacity that matches the entire organization

For example:

- Competence: the ability to adapt

- Definition: Adaptability is the ability to work effectively in any

Different scenarios may change with individuals or groups of different people a4 Definition the importance

For each capacity, Council will set the importance level for each position in the organization

How important is need capacity for a specific position in the organization to complete assigned work

Each capability has different importance level for each position There are three important levels are defined:

Score 01: not important, no need for work

Score 02: importance, with it easier to implement the job

Score 03: very important, without it cannot complete job

For example:

Competency on HRM Not important to

technical works

Very important to heads of departments

a5 Completion dictionary of capacities

CHAPTER 1: THEORETICAL BACKGROUND

14

Dictionary of competency will be completed after all of the competencies defined

b Determination of rate competency (capability gap)

b1 Determination proficiency level of capacity required

Proficiency level is capacity to work proficiently of each person in each position

For each competency, depend on the position, level of proficiency different required

There are five proficiency levels were identified:

Point 05: to show the highest capacity requirements for a position to complete the job

Point 01: usually empty, because used to evaluate the staff not completed the minimum requirements of the job

The different between the scores have markedly required

Below is reference table to determinate actual proficient of each group competencies

Table 1.1: Actual proficient of competencies

Competencies 1 score 2 score 3 score 4 score 5 score

Knowledge,

skills

X Beginning Skilled Proficient Outstanding

Quantity, scale X Small Average Rather big Big

Complexity X Simple Rather simple Average

complexity

Complex

CHAPTER 1: THEORETICAL BACKGROUND

15 Responsibility X Partly Less concerned Much

Able to do with mistake <20%

Able to guide with mistake

in assigned work

Only good performance

Skilled Able to build

plan and objectives

Able to meet requirement of organization

Example 4: Sale Cannot sale

the product

Sell products

to old customers with

fix market and prices

Sell the products and services for old and new customer in competitive

market

Sell the new products to new market for higher income

people

Provide most of high quality to high income customers in local and international market, able to access

to new market

Proficiency level is standard of complete the tasks of an employee requested to archive

b2 Determination proficiency level of the actual competency

Proficiency is actual practical ability of each employee to achieve the completion of work

b3 Determination the rate of capacity

All members of the council will develop the proficiency level determined by the capacity requirements and actual proficiency level of capacity for all positions and

CHAPTER 1: THEORETICAL BACKGROUND

16

for all employees in the organization

If the importance of a capacity of a location is L1

Proficiency level of competence required of a position is R1

Proficiency level of the actual capacity of a location is A1

Competency gaps a position calculated through ratio of capacity is G1

The capacity ratio is calculated as follows: G1 = (L1 x A1) / (L1 x R1)

proficiency level

Actual proficiency level

1 2 3 1 2 3 4 5 1 2 3 4 5 Required Actual Actual/

Required Detail

CHAPTER 1: THEORETICAL BACKGROUND

Score of capacity requirement = L1 x A1

Actual capacity score = L1 x R1

c Curriculum planning and development

After obtaining the required proficiency level of competencies and proficiency level of competencies and actual rates for all locations and all members of the organization be stored into a database to be used in planning training program and human resource development

Council will be based on the database to plan long-term training program for all positions and all employees in the organization The priority competencies for training are capabilities with important level 3 and lowest rate The staff of the organization related to the competencies needed need to attend training courses appropriate to catch up in that position requires

Summary of chapter 1

The first chapter of the thesis was raised the basic theoretical issues about content and the main steps of training method according to the competency gap This method is based on model training in U.S and on the world, to apply to the specific conditions of the PECC 3

These reviews are scientific basis and practical to analyze the situation and propose solutions to improve the training in Chapters 2 and 3 of the thesis

CHAPTER 2: THE SITUATION OF TRAINING AT POWER ENGINEERING CONSULTING JOINT

Right after the establishment of Electricity of Vietnam, the Energy Center directly belonged to Electricity of Vietnam at the Decision No 429/VNTCCB-L dated 4/6/1995

On 7th April, 1999 Minister of Industry signed the Decision No.17/1999/Q-BCN on reforming Energy Center to Power Engineering Consulting Company 3 On 26th January, 2007 Minister of Industry issued the Decision No 335/Q-BCN on equalizing Power Engineering Consulting Company 3 to Power Engineering Consulting Joint Stock Company 3

Company name: Công ty c ph n t v n xây d ng đi n 3

International trading name: Power Engineering Consulting Joint Stock Company 3

Abbreviation name: PECC3

Headquarters Co in:

- Office: 32 Ngo Thoi Nhiem, Ward 7, District 3, HCMC HCM

CHAPTER 2: THE SITUATION OF TRAINING AT POWER ENGINEERING CONSULTING JOINT

2.1.2 Company organization structure

PECC3 organization operating model consists three main blocks with administration auxiliary and direct production with main department as following:

Human resource management department: there are 3 functions of labor organization, administration and health administration With these functions the department will advise the BOM manage the work as propaganda, documentation filling, on responsibility document in and out, personnel organization, labor, wages, social insurance, labor protection, training, training, labor norms, health care, life care for all staff

Financial- Accounting department: Advise the BOM on financial management under the provisions of State and EVN, working on accounting and financial statements

Planning & Business department, assist the BOM in developing strategy and business planning activities In addition, monitoring and management of economic contracts signed by PECC3 It also provides, supplies machinery, equipments to construction site under scheduled and unscheduled At the same time carry out the assessment and management of supplies and equipment recovery

Administrative office performs administrative duties, cleaning, guarding and facilities of the company

Technical departments: are mainly product of company include substation

EV NPECC3

CHAPTER 2: THE SITUATION OF TRAINING AT POWER ENGINEERING CONSULTING JOINT

STOCK COMPANY 3

20

design, hydropower 1&2, thermal power, power network, hydro metrology engineering departments and power construction & investigation enterprise and 2 branches at Ha noi and Nha Trang

CHAPTER 2: THE SITUATION OF TRAINING AT POWER ENGINEERING CONSULTING JOINT

ORGANIZATION CHART OF PECC3

De puty ge ne ral dire ctor on the rmal powe r proje cts

Thermal power department Cost estimation department Information technology & Environment department

General meeting of shareholdres

De puty ge ne ral dire ctor of powe r trasmission &

Representation office in Hanoi &

Northern power investigation and

Compensation consultancy department

Central region branch Power construction &

investigation enterprise

Investigation technique department

Hydro meteology engineering department

Planning & Business

CHAPTER 2: THE SITUATION OF TRAINING AT POWER ENGINEERING CONSULTING JOINT

STOCK COMPANY 3

22

2.1.3 Business activities and situation

Power Engineering Consulting Joint Stock Company 3 is one of four consulting companies under Electricity of Vietnam specialized in implementation of construction consultancy for power source and network projects such as: thermal power plants, hydro power plants, power transmission lines, power substations, renewable energy projects and other industrial projects, including:

- Investigation, survey on topography, geology, hydrometeorology for power plant and network projects

- Planning for power development in the provinces, cities, districts, towns, townships, industrial zones and power complexes

- Advisory for establishment of investment projects, technical design, investment cost, detailed design drawings and total cost estimates of power plants, transmission lines, and substations projects from 15kV to 500kV

- Advisory for establishment of investment projects, design, cost estimates for renewable energy, civil and other industrial projects.- Advisory for establishment of bidding documents, organization and evaluation of procurement, construction bidding documents in domestic and international

- Advisory for construction supervision, and project management of power plant and power network

- Advisory for appraisal of consultancy documents such as: planning, investment projects, technical design, cost estimate, detailed design drawings, etc

- Quality control and testing of construction materials

- Advisory for research and assessment of environment impact to projects (EIA)

- Advisory for planning compensation settlement, resettlement action plan

CHAPTER 2: THE SITUATION OF TRAINING AT POWER ENGINEERING CONSULTING JOINT

- Measuring and drawing land boundary, establishment of cadastral maps for land clearance of construction projects

The business results of company since 2007 can be seen as follows:

Table 2.1: Business results over last years of PECC3

Currency: Million VND

(*): First 6 months of 2011

Source: PECC3’s Financial report from 2007-Aug 20111

2.1.4 Human resource situation at PECC3

Labor structure according to professional

The number of employee increasing year by year, in 2005 there were 450 employees then the end of 2010 was 625 Labor resource of PECC3 has been changed in quantity and quality from establishment in 2005

CHAPTER 2: THE SITUATION OF TRAINING AT POWER ENGINEERING CONSULTING JOINT

STOCK COMPANY 3

24

Table 2.2: Labor structure according to professional of PECC3

Source: Human resource manager - PECC3

If consider labor structure by professional and based on data in 2010, administration and management labor force (working in other departments) account for 10.01%, designers account 49.75%, the supervisor is 8.5% , workers and commanders working in the survey team is 15.92%, the other workers as guards, cleaners Since EVN issued the labor border and power trading with Decision No 629/QD-EVN-HDQT PECC3 dated 04/11/2005 and is concretized by Decision No 02380/QD-TVD3.TCNS -YT on 28/04/2006 of PECC3, the labor rate has been changed around those value

Chart 2.2: Labor structure according professional in 2010

\

Source: Data from department of Human resource management

Administration and

management labor

Design engineers

Supervision engineers

Survey team

15.92 % 15.58 %

8.5 %

Indirect labour Designing Site supervision Survey team Others

CHAPTER 2: THE SITUATION OF TRAINING AT POWER ENGINEERING CONSULTING JOINT

STOCK COMPANY 3

25

Labor structure according to the training level

Source: Human resource department - PECC3

If consider labor structure according to training level, as in 2010, there was

22 graduated, 374 undergraduates, they are mainly engineers of electricity,

construction, mechanical, C&I engineers and this is the key workforce of PECC3 as

required by works of design consultation and supervision of power projects; 85

people finished colleges or high schools; workers from grade 5 / 7 or higher and is

equivalent to 97 people, the rest (up to 4/7, unskilled workers) is 31 people, they are

cleaners, guards and drivers

Chart 2.2: Labor structure according to training level of PECC3

Source: data from Human resource department - PECC3

Qualified labor is high percentage (4% graduate and undergraduate is 53%),

Training level Number of employee Ratio(%)

Colleges Technical schools Others

CHAPTER 2: THE SITUATION OF TRAINING AT POWER ENGINEERING CONSULTING JOINT

STOCK COMPANY 3

26

however with the industry of consulting demands for qualified and experienced increasing Many bid packages now require engineers who have at least 5 years of experience, engineering grade 5 or higher, fluent English and for key positions must

be at least ten years experience, senior specialists level 2 and up Year by year, the

requirements about qualification of workforce in power industry increased

Low skilled labor occupied 26% with 97 employees; this is the second main labor source of PECC3 with the workers of survey team of survey enterprise

About foreign language level, PECC3 only 10 bachelors in English, 2 bachelors in French, only 105 people got A certificate of English, 43 who got B certificates, C certificate and equivalent only about 10 only Requirement of foreign language is mainly in for foreign trade contracts, reading documents, communication, seminars, conference with foreign partners So in the orientation of PECC3 can see that focused in training foreign language for the staff who working often with foreigners With a consulting firm, the human resource is determined factor for quality and success of the enterprise, PECC3 ensure the number of engineers, but in the current business, the number of experienced engineers cab be leaders for the projects

is very limited For the foreign language, not every position required but the engineers are qualified enough to work in the project with foreign companies are not many, the using translation lost many opportunities of works and slow progress of the project Thus in order to increase competition in the work, and increase the work level needs to strengthen training of foreign languages to engineering department and others

CHAPTER 2: THE SITUATION OF TRAINING AT POWER ENGINEERING CONSULTING JOINT

STOCK COMPANY 3

27

tackle the problem:

- Training at starting job: PECC3 has been doing this training for new employees to orientate their job and introduction about history and development of the company, functions, operational objectives, labor regulations, and policies and regimes, so they get used to the new operating environment and create good mood, safe from the first working days

- Training on job, this training can be conducted in two ways: Learning during working and or school suspension PECC3 are commonly applied the way of learning during working to improve the practice, learning by doing Also school suspension is less applied Most of employees are learning at evening classes or weekend classes

- Training for the new jobs, this training for the staff are in ‘planned”, who need to be updated knowledge and skills to do good not only the current job but also able to work well in a higher position or more challenged jobs This way of training only applied since 2007 after the company issued Decision No 07155/EVN-TVD3-TCNSYT on 20/11/2007 on the staff policies

PECC3 consider training is one of most important method to improve the product quality and competitive capacity of company However, the efficient of training and how to improve the quality of training need to be discussed further hereafter

Ratio (%)

Turns of people

Ratio (%)

Turns of people

Ratio (%)

1.Funded course by PECC3

CHAPTER 2: THE SITUATION OF TRAINING AT POWER ENGINEERING CONSULTING JOINT

STOCK COMPANY 3

28

Source: Training sector – HRM department (PECC3)

Beside of production planning, training and development of HRM are very important in PECC3, every year company dedicate a specific funding to training The content of the training program developed to improve key skills for staff and develop professional qualifications Beside of professional, training foreign languages especially English, knowledge of law also focused on a part of staff In the training curriculum funded by PECC3 there is training for the grade promotion This training is conducted

by training section of HRM department Each year the training section organize the

1.1 Training for grade promotion 97 15,88 117 19,15 107 17,53 1.2.Training to improve

professional qualification 10 1,56 7 1,21 12 1,98 1.3.Domestic short-term trainings

on professional, legal, foreign

languages, computer science,

political theory

47 7,67 57 9,30 73 12,03

1.4 Abroad short-term training

on professional, legal, foreign

languages, computer science,

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course, help the employee review their knowledge in both theoretical and practical to prepare for the exam grade promotion Also, many times in a year, the company also organizes the workshops on different topics related to working skills, which are conducted by experienced experts In some cases, the employees are sent to training by PECC3 with job requirements, he or she is can be reimbursed the training fee if he or she can get certificates All the cases mentioned in Table 2.4 training are paid while in learning

In the forms of training, PECC3 focus more on active forms of training In this way, the company will appointee employee to attend training with decided content And the training attended by staff themselves to the course in training centers or public schools often come from individual's wishes and company consider tuition support

Such trainings are quite diverse with knowledge areas that a business such as PECC3 needed

2.2.3 Comments on training of PECC3

+ The implementation of training depends on the subjective thinking of training section management board, no standard curriculum, schedule or framework Abroad short-term trainings usually are short time (less than a month) and most of trainings funded by foreign contractors or by equipments suppliers, the purpose of conveying engineering of specific These trainings are similar to study visits; it helps engineers of projects know better about new technologies, equipments which would be applied to their projects

+ The definition of training needs in many cases inaccurate, training and use of knowledge is not yet proven training to assess effectiveness, but more focus on quantity rather than quality of training achieved

+ After training, PECC3 still not have evaluation even by the simple methods such review by test, review by questionnaires, and evaluation of management levels before

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and after training

+ Review on training expensive can be seen as below table

Table 2.5: Training expensive of PECC3

Year

2008 2009 2010

remuneration and allowance % 0,95 1,07 1,46

Source: Accounting- Financial department - PECC3

From Table 2.5 can see that the training costs for each person, training costs on total costs and training costs on total salary and allowance over the years has increased and the growth rate is increased, it shows the interest and respect training activities of the company However, the level of such investment is not adequate for the growing demand of the method, content and quality, particularly training in new technologies

of renewable power, nuclear power

To get the overall evaluation on training activities, in Annex 1 showed the opinions of

200 employees as follows:

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Table 2.6: Opinions on training with job requirements

Number of people evaluated by the level Question

You have required skills to do good of your job 50 41 92 9 50 You have been trained to meet requirements of

Training activity of company can meet

requirements of production activities 51 75 47 12 15

Source: from annex 1 Which: 1: Absolutely incorrect/disagree; 2: Incorrect /Disagree; 3: Not correct/not agree; 4: Correct/ Agree; 5: Absolutely correct/agree

Only 27 people out of 200 people (13.50%) agreed that training activities can meet requirements of production In other questions, the numbers of people who think that the present trainings of company help them to improve their skills of job less than the number of people think that the training do not help them work better

Table 2.7: Opinions on content of training

You think that the training curriculum of company is good 25 43 87 35 10You know the priories of trainings 13 41 70 20 36The content of training must be decided by HR department 56 71 42 14 17Content of the training is aqua date and useful 35 45 78 31 11

Source: from annex 1 Which: 1: Absolutely incorrect/disagree; 2: Incorrect /Disagree; 3: Not correct/not agree; 4: Correct/ Agree; 5: Absolutely correct/agree

42 people out of 200 people (21%) agreed that the content of trainings in