Assignment 2

Quan Nguyen

March 10, 2018

Instructor: PATRICE CLOUTIER

HRM-531
I. The introduction

The telecommunication market is one of the most competitive market in Vietnam.

With a rapid growth of the economy, the demand for high quality telecommunication

service is increasing quickly. To maintain the competitive advantage, Vietnam Posts and

Telecommunications also focusing on improving employee’s productivity and morale.

II. The Vietnam Posts and Telecommunications (VNPT)

VNPT is the leading post and telecommunications market in Vietnam. With 70 years

of development and integration in the Vietnamese telecommunication market, VNPT is

also the first service provider to lay the foundation for the development of the Vietnam

Posts and Telecommunications industry. The delegation played a key role in making

Vietnam one of the 10 fastest growing countries in the world.

With nearly 40,000 staffs, advanced telecommunication infrastructure, network

coverage covering all 63 provinces nationwide, VNPT is proud to be the number one

provider in Vietnam. The company is serving about 30 million mobile subscribers, nearly

10 million fixed telephone subscribers, and tens of millions of internet users.

VNPT functions in different business areas:

- Telecommunication media and information technology products.

 - Consulting, design, installation, exploiting, maintainance, repair and lease of

telecommunication and information technology works.

- Research, development, manufacture, production of telecommunication

equipment and products, information technology.

- Trade, distribution of telecommunications equipment and information technology

products.

- Advertisement services, market research, conferences, seminars and exhibitions

related to telecommunications and information technology.

- Real estate and leasing.

- Financial services in the fields of telecommunications, information technology

and multimedia.

III. The restrusturing

VNPT has gradually shifted its growth from traditional telecommunication

services to the development of telecommunication and IT services. VNPT has applied

modern management methods (standard procedure management, BSC balance card tool,

3Ps salary payment ...). VNPT also distributes income according to the productivity of

each individual, creating motivation for employees and units.

After restructure, VNPT emphasizes 3-tier service-infrastructure - business model.

VNPT invests more effort and time into network care. The information system is more

focused, and consistent across the country particularly in the sales and customer care . The
 industrial sector has been developed to meet 100% of VNPT needs and has gradually

advanced to the domestic and foreign markets.

In the coming time, VNPT will continue to invest in developing key services such

as mobile, broadband, IT, and value added services. In particular, VNPT will focus on

converting from traditional telecommunications service provider to telecommunications

platform provider.

VNPT is deeply involved in the application of information technology in social

security and e-government service nationwide and has close relationships with localities.

Most recently, VNPT continues to lead the Smart City in Vietnam. VNPT is officially

selected to become a SmartCity partner in some provinces such as Ho Chi Minh City,

Kien Giang (Phu Quoc), Tien Giang, Lam Dong, Dak Lak...

IV. People involve in change

The VNPT group has undertake a comprehensive and drastic renovation. The

company has successfully implemented the restructure of the Vietnam Post and

Telecommunications Group under Decision No. 888 / QD-TTg of the Prime Minister. The

VNPT group has established three corporations VNPT-Net, VNPT-Vinaphone, VNPT-

Media. This includes rearranging human resources, stabilizing human resources,

reorganizing production and business, and restructuring corporate governance. All of this,

VNPT deployed urgently with the guidance and approval of the Prime Minister and the

Ministry of Information and Communications. (Decision No. 1746 / TTg dated

15/11/2012 separating VNpost Corporation, Decision 888 / TTg dated 10/6/2014). The
 company has continually performed the separation process at Post and

Telecommunications Institute, VMS Company and the Central Post Office. The VNPT

group has restructured its workforce of 40,000 employees and workers and spent more

than 300 billion Vietnamdong to solve more than 3,000 labor surplus Insert the

paraphrased material (Hoang Cong Hien, personal communication, March 9, 2018).

V. Current condition and budget

According to the research and survey, there is a strong connection between an

employee’s performance and benefit they receive. Since 2008, the inflation rate in

Vietnam has been reduced, but remain high. It leads to a decrease in employee’s

performance and morale. Along with the growth of profit in 2018, VNPT focuses on

improving employee income and living standard. First of all, VNPT has reduced its labor

force of 41,500 people to 39,000. The current average income is VND15 million / month;

VNPT aim to increase their wage to VND 20,6 million/ month in 2018 (Nguyen Xuan Chi

, personal communication, March 9, 2018).

The total planned salary budget of VNPT in 2017 was more than 10,626 billion

VND (Nguyen Xuan Chi , personal communication, March 9, 2018). The company

projects that the salary budget for 2018 will increase to 11,000 billion VND. The new

budget will allow the increase of management team average salaries to VND 64.7 million;

while in the previous year, the average manager salary was VND 48.5 million. Besides the

salary budget increase, the VNPT’s management team bonus fund for 2018 will also

increase sharply to VND 2,236 billion. Thanks to the increase in the bonus fund, the
 average income of the VNPT management staff increased sharply to VND 72.78 million.

At the same time, wages, bonuses and remunerations for managers will also be affected by

changes in production, business efficiency, and results of management and administration.

VI. Balance scorecard and 3Ps system implementation

Along with changes in company structure and labor force, VNPT aim to improve

both operational and employee’s performance. Therefore, the company decided to use the

balanced scorecard and 3Ps wage distribution system to set goals, monitor, evaluate and

compensate for employee’s performance. The balanced scorecard is considered a measure

of the performance of the business. It is a combination of traditional financial

measurement methods and non-financial measures to provide managers with more

information on business performance. It is important to focus on key strategic goals. By

encouraging managers to focus on key metrics derived from "perspectives," the original

balanced scorecard aims to encourage clarity and consistency.

Over time Balanced sorecard has grown to become the focus of communication

and business performance measurement. The balanced scorecard enables administrators to

interpret, dialogue and monitor the implementation of strategies through the use of internal

linking systems with long-term goals of the business.

3Ps is a salary system built in such a way that the individual's income reflects

the three factors: (1) Position, (2) Personal Performance, and (3) Product. The 3Ps method

overcomes the disadvantages of the traditional pay method, such as over-emphasis on

qualifications or seniority, without distinguishing between performance and personal

contribution to the overall organization goals.

 With this system, VNPT encourages employees to pay more attention to the end

result and contribute more to minimize operational risks which leads to increased

productivity. Employees are more dedicated to their job and become more efficient. The

enforcement of wage fairness creates motivation to attract and retain high-quality

employees. This helps to motivate VNPT workers to improve their productivity by 30 to

40% and create an environment of equality and transparency in their income.

The performance of employees will be recorded and evaluated using in-house

built software based on the Key Performance Indicator (KPI). The KPIs my company is

using are: average cost per transaction, on time delivery, expenses for research and

development, participation in the community, employment rate, employee engagement

score, employee satisfaction score, and leadership development.

Although the average income of VNPT is increasing strongly, the leaders of

the corporation continue to propose to the Ministry of Labor for the approval of the new

salary mechanism. Because of the lack of specific independent salary mechanism, VNPT

cannot compete with its primary competitor, Viettel Group, to improve its employees'

incomes and living standards. Viettel is applying the specific salary mechanism (salary

payment mechanism, wage autonomy).

VII. Budget distribution plan

 • Increase
Wage/Bonus • Integrate • Integrating
Budget BSC/KBI 3Ps salary
• Wage Bdget: Quarter evaluatation
Quarter mechanism
Quarter I 11 billions tool
• Review the
VND II • Integrating III
result of the
• Bonus Budget 3Ps salary
first 6 months
: 2100 Billion mechanism
VND

• Evaluate • Propose
performance adjustment
based on report
Quarter changes
• Perform
12/2018 • Revise
IV strategic and
comprehensive operational
report plan for 2019

VIII. Recommendation

When VNPT takes part in the 4th Industrial Revolution, it change the thinking of

telecom management to creative thinking. Therefore, a strategy that shift to managing

innovation and accepting risks is essential. The company must also follow the law of the

market economy that the greater the risk, the higher the profit. In addition to a operational
strategy, there is a need for qualified human resources from the top down. The

development of strategic staff is the key for future success. In order to implement the

strategy successfully, there must be a team of strategic officers commensurate with their

desires.

The human resource development is the key task in 2018, focusing on the

weaknesses, strengths, training and recruitment of new people; especially recruiting IT

staff, restructure IT. VNPT will conduct training and change management thinking. So the

company can change the weaknesses of VNPT in the future. The investment in the

development of young talent, creativity and good knowledge is one of the top targets of

VNPT. VNPT is always ready to open doors for young graduates, and ICT (Information

and communication technology) talented people want to assert themselves.

VNPT has a strong infrastructure and good environment for young people to use

all their talents. For example, VNPT has VNPT Media Corporation which specializes in

providing services in telecommunication, television, value added, and software while

VNPT VinaPhone specializes in telecommunication - IT services. VNPT Technology is

the main unit in the field of industrial infrastructure. Therefore, VNPT Media, VNPT

VinaPhone, VNPT Net, VNPT Technology continuously publishes recruitment

information in the field of IT. For example, VNPT Technology, which is in charge of the

role assigned by the group, is always the key to the development of R & D. VNPT

Technology continuously invests in developing and recruiting R & D human resources. At

 present, VNPT Technology has a staff of 600 for R & D, occupying 60% of the company

staff and continues to recruit.

In addition, VNPT Technology has incentive policies similar to those of large

technology firms such as "picking up" talent from universities. VNPT Technology is

sponsoring contests to find talent and will soon be offering scholarships to excellent

students at top technology schools. At the same time, VNPT Technology has also

strengthened its cooperation with leading technology universities in Vietnam such as Bach

Khoa university, Royal Melbourne Institute of Technology, and Ho Chi Minh

international university to provide training cooperation and cooperation with research and

development

Therefore, to meet the content of the group's development strategy, research and

development factors are extremely important. Attracting talent in the ICT sector will help

the group develop high-tech products that will make a breakthrough in new markets and

services.

IX. Conclusion

Vietnam has started to integrate deeply into the world economy. To ensure the

existence and development of VNPT, human resources development is the top priority.

Human resources development is not separate from the development objectives of the

telecommunication sector and always keep up with the development of science and

technology. In the future, human resources development will focus on training programs

that improve the employee quality. VNPT will continue to arrange labor force according
 to the new model. The company renovate the labor structure in the direction of increasing

the proportion of knowledge workers in all three areas: economic management, technical

management, and service exploitation.

Reference:

Chien luoc phat trien (Nguyen Xuan Chi , personal communication, March 9, 2018).

Cơ cấu tổ chức. (2017). Retrieved from

http://www.vnpt.com.vn/Default.aspx?tabid=79&IntroId=4&temidclicked=4

Thong tin noi bo (Hoang Cong Hien , personal communication, March 9, 2018).

Thong tin noi bo (Nguyen Xuan Chi , personal communication, March 9, 2018).

Văn bản pháp luật. (2016). Retrieved from

http://vanban.chinhphu.vn/portal/page/portal/chinhphu/hethongvanban

VNPT. (2016). Retrieved from http://www.vnpt.vn