Shu-Te University

Graduate School of Information Management

Master’s Thesis

Process Reengineering in Human Resources Management

of Vocational Schools in Lang Son Province.

Student: Dang Anh Giang

ID: 98731304
Advisor: Dr. Gow- Minh Dong
Co-advisor: Dr. Nguyen Huu Chau

December, 2010

Process Reengineering in Human Resources Management

of Vocational Schools in Lang Son Province.

i
 A Thesis
Submitted to the
Graduate School of Information Management
College of Informatics
Shu-Te University
In Partial Fulfillment of the Requirements
For the Degree of
Master of Science in
Information Management

December, 2010
Yan Chao, Kaohsiung, Taiwan, Republic of China

ii
 ABSTRACT

The purpose of this thesis is based on the orientation of socio-economic development and

job training needs of workers, analyzing the status of vocational training institutions which

assist training institutions in the province of Lang Son the professional development and

training needs of teachers and an effective way to create sustainable growth for the vocational

training institutions.

Keywords: Process Reengineering, Human Resource Management Systems,

Vocational Schools in Lang Son Province

ACKNOWLEDGEMENT

iii
 First of all, I would like to thank the University of Education -Vietnam National

University, Ha Noi has supported me during my study. Especially, I would like to thank for

the enthusiasm of Associate Prof.Dr.Gow- Minh Dong and Dr. Nguyen Huu Chau who have

supported and encouraged me in the process of learning as well as doing the research.

In this occasion, I would like to thank my fellow classmates in the Department of

Information Management who have accompanied with me in the whole process of doing my

thesis.

Finally, I would like to thank my family and relatives who have shared the difficulties

during my study and research.

Dang Anh Giang

Table of Contents
Abstract ……………………………………………............
Acknowledgment ……………………………………………............
Table of Contents ……………………………………………............

iv
List of Tables ……………………………………………............
List of Figures ……………………………………………............
Chapter 1 Introduction ……………………………………...
1.1
Research Background

I
NATURAL FEATURES
II- CHARACTERISTICS OF HUMAN
RESOURCES
Chapter 2 Literature review …………………….…………..
2.1
2.2
2.3
2.4
Chapter 3 Research Methodologies ………………………...
3.1 Introduction of existing research methods ………
3.2 The research methods of the thesis ……………...
3.3 The method to analyze and treatment information
Chapter 4 Analysis and results ……………………………...
4.1
4.2
4.3
Chapter 5 Conclusions ……………………………………...
References ……………………………………………………

List of Tables

Table 2.1
Table 2.2
Table 3.1
Table 3.2
Table 3.3
Table 4.1
Table 4.2

List of Figures

v
Figure
Figure
Figure

vi
 Chapter 1: Introduction

1.1 Research Background

Human resources development is a primary goal of socio-economic

development strategies.In the structure of human and technical work force
and technical staff is a large work forces most directly produce material
wealth for society. Therefore, in recent years, Party and State particular
attention to developing vocational training, to create direct human resources
to meet production targets in 2020 to bring our country to basically become
an industrialized country in modern development. The process of
industrialization and modernization requires a growing demand for human
resources and technical expertise to meet the requirements of the labor
market in each locality, domestically and internationally and that is the key
policies of the Party and State are now aiming "The top priority for
improving the quality of teaching and learning, improving the quality of
teachers and strengthen infrastructure of schools."

In the market economy today, with the strong fluctuations of the

businessenvironment, fierce nature of competition and demand is increasing
to meet the staff, all of these problems has been a great pressure for
enterprises. In particular, issues of human resource management is one of the
factors that bring vital.
Since demand - a business can increase their competitive advantage by
organizing a comprehensive human resource management system: building a
clear organizational chart, with modern inspection system, exactly, using the
employees effectively, resolve policy regime in time, criteria for evaluating
the work is standardized, fair salary policy, human resource planning to
ensure the right person, right jobs.
Being a border mountainous province, to economic development,
social security, poverty reduction and integration with the country ... issues
that have posed problems for Lang Son with the opportunities and
unprecedented challenges for human resource development in sync,
especially workers in rural areas.

1
 To contribute to the implementation of task from 2001 Lang Son has
invested to develop vocational training establishments, after 10 years of
construction and development, from just 03 small training institutions up to
now Lang Son has 16 vocational training institutions, the development that
meets the needs of the trained employees.
However, the relationship between supply and demand, the training is
quite faint, quality human resource training is weak which led to the current
situation is that many people without a job completed, with the do but make
her profession, or be the basis of the employer receiving the labor but the
employers who have to retrain new usable. All these issues are apprentices
who suffer disadvantage due to problems from building plans, planning and
development facilities and training from quality teachers have extra training -
medium lack-weak, so just wasting of the State budget for training, both
expensive and prolonged time of the study, but the effect is very low.
Current situation of human resources and training facilities of
vocational training in Lang Son is now difficult to make the best use for these
opportunities is coming, even at risk to overcome difficult challenges in
organizing training which highlights two issues that's what training to suit
market needs and the development of teaching staff to meet the open fields.
Through the process of making the management of a vocational
training school was first established in the province of Lang Son and learning
process in training Masters in Management Information National University
and the University of Shu-Te myself for research on issues
Restructuring processes in human resources management of vocational
schools in the province of Lang Son to do scientific research with a desire to
contribute to the research results applied in the management of my school
and of training facilities in the province of Lang Son.

I. NATURAL FEATURES
Geographical location of Lang Son is particularly important forsocial -
economic development.
Lang Son is a mountainous province in northern Vietnam gateway
linking China and ASEAN countries as well as international, with 11
districts, 226 communes, wards and towns with a total area of 832,378 ha of
natural, population of 732,515 people, Lang Son province is inhabited by
many ethnic groups, which accounted for 42.95% ethnic Nung, Tay ethnic
group accounted for 35.88%, accounting for 16.52% of Kinh, Dao ethnic 3 ,
2
47%, the rest are ethnic American, Hmong, San vegetarian ... very small
proportion living intermingled with other ethnic communities.
Lang Son is particularly important position in economic development,
located along the economic corridor Nanjing (China) - Lang Son - Hanoi -
Hai Phong, over 220 km border with the Republic National People's Republic
of China. Construction project the economy to Dong Dang - Lang Son is
being done here quickly, striving to Lang Son province in 2020 became the
center of industry, commerce and services, connectivity, trade between
Vietnam with China and other countries around the world.
Lang Son is a node of the economic exchanges with the western
provinces of Cao Bang, Thai Nguyen, Bac Can, with the eastern province of
Quang Ninh province, south of the Bac Giang, Bac Ninh, Hanoi capital and
to northern China. Lang Son in the future will be a pole of economic
quadrangle northern region of Vietnam: Lang Son - Hanoi - Hai Phong -
Quang Ninh.

Administrative map of Lạng Sơn

II- CHARACTERISTICS OF HUMAN RESOURCES

1. Regarding society - economic development - from 2006 to 2010:
3
 In recent years, first due to the difficult context of economic recession
in the country and the world, but the province's economy growth rate. Speed
economic growth (GDP) per 5-year period from 2006 to 2010 reached
10.45%, shifting the economic structure in the right direction, agriculture and
forestry accounted for 39.74%, industry - construction 21.08 %, services
39.18%.
GDP per capita reached 820 USD in 2010 is more than 2 times higher than in
2005.Facilities for social investment in most sectors such as education,
health, culture, poverty alleviation and employment. Material life, the spirit
of the people is improved, the situation of political security, social order and
stability
Summary: Period 2006 - 2010 economic growth rate from 1.8 to 2 fold
in Lang Son province was compared with the period from 2001 to 2005, the
economic structure shifted towards reducing the proportion of agriculture,
increasing service and increased service industry - construction, total revenue
reached over 2,000 billion, per capita GDP rose more than 2 times.

Agriculture, forestry
Industrial
Service

Status
stage 2006-2010

2. The current status of labor - employment for 2006-2010

According to the results of the census of
population and housing 01/04/2009 Lang Son, the
province has a population of 732,515 people,
people of working age is 425,074 people (who
account for 216,023 people), young labor force
( 15-34 years old) a high proportion, about 45% of
which:
- Workers in urban areas: 72,493 people (accounting for 17.05%).
- Labor in rural areas: 352,581 people (accounting for 82.95%).
In fact the total number of persons resident from 15 years of age or
older to participate in economic activities of the province had 453,425 people
employed (accounting for 92.13% of the total labor force), the market share
of 16, 03%, rural 83.97% proportion. Number of employees through training
percentage 35%, laborers are working in rural areas untrained high proportion
of over 70%.
Labor structure is gradually shifting, but the
4
 number of workers employed in industry,
construction and services still account for lower
rates, while workers in agriculture, forestry and
fisheries still account for very high, with 353,691,
accounting for 78.00%, construction industry and
has 21,487 people, accounting for 4.74% and 78,247
people work in service sector, accounting for
17.26%.
Labor, employment by sector of economic activity and economic
components
Unit: person
Out of Foreign
Total State
State invested
Total 453.425 39.772 366,125 622
1. Agriculture, forestry, fisheries,
353.691 784 352.848 59
Fisheries
2. Industry and Construction 21.487 4.537 16.548 402
3. Services 78.247 34.451 43.635 161
Urban area 72.673 21.191 51.263 219
1. Agriculture, forestry, fisheries,
14.427 340 14.049 39
Fisheries
2. Industry and Construction 10.642 2.903 7.670 71
3. Services 47.604 17.948 29.544 109
Rural area 380.752 18.581 361.768 403
1. Agriculture, forestry, fisheries,
339.263 444 338.799 20
Fisheries
2. Industry and Construction 10.843 1.634 8.878 331
3. Services 30.646 16.503 14.091 52
(According to Source Census, housing 1/4/2009)

5
 Total
1. Ảgiculture, forestry, fisheris, equaculture
2.Ínstuction and building
3. Service
1%2%
19% 24% Urban
1. Algriculture, foretry, fisheries, equaculture
2. .Ínstuction and building
3. Service
20%
20% Rural
3%1%
1% 4% 4% 1% 1. Ảgiculture, forestry, fisheris, equaculture
2. Ínstuction and building
3. Service

Employment structure

Lang Son in recent years there are major changes in the labor force in
general and skilled labor in particular. Increasing the number of employees
and labor quality is gradually improving. Economic development create more
new jobs and income of workers have been increasingly improved. However,
compared to national status and quality of labor of Lang Son is still
inadequate: Percentage of trained labor to 35% by the end of 2010, the
percentage of trained workers reached 25%, the labor force is bigger
untrained (65%); big difference in quality of labor between urban and rural
areas, shortages of labor is greater technical expertise in the areas of high-
level requirements for new technology (mechatronics, welding, high-tech
food processing and industrial plant) of the provincial labor force
concentrated in rural areas, economic life difficult, mostly ethnic minorities.

III. NATURAL FEATURES OF LANG SON PROVINCE:

Geographical location of Lang Son is particularly important forsocial -
economic development.
Lang Son is a mountainous province in northern Vietnam gateway
linking China and ASEAN countries as well as international, with 11
districts, 226 communes, wards and towns with a total area of 832,378 ha of
natural, population of 732,515 people, Lang Son province is inhabited by
many ethnic groups, which accounted for 42.95% ethnic Nung, Tay ethnic
6
group accounted for 35.88%, accounting for 16.52% of Kinh, Dao ethnic 3 ,
47%, the rest are ethnic American, Hmong, San vegetarian ... very small
proportion living intermingled with other ethnic communities.
Lang Son is particularly important position in economic development,
located along the economic corridor Nanjing (China) - Lang Son - Hanoi -
Hai Phong, over 220 km border with the Republic National People's Republic
of China. Construction project the economy to Dong Dang - Lang Son is
being done here quickly, striving to Lang Son province in 2020 became the
center of industry, commerce and services, connectivity, trade between
Vietnam with China and other countries around the world.
Lang Son is a node of the economic exchanges with the western
provinces of Cao Bang, Thai Nguyen, Bac Can, with the eastern province of
Quang Ninh province, south of the Bac Giang, Bac Ninh, Hanoi capital and
to northern China. Lang Son in the future will be a pole of economic
quadrangle northern region of Vietnam: Lang Son - Hanoi - Hai Phong -
Quang Ninh.

1.2 Research motivation

I chose this topic because: Lang Son province has planned a network of
training facilities in the 2011-2020 period that the training facilities of Lang
Son is the initiative to organize vocational training but
There is no research that addressed the issue of the school should organize
training how
Human resources is very important teachers in the study of the
vocational training institutions.
Was the first principal of a vocational training institution's largest
province, from the practice of the organization, runs a vocational training
institution in the province I noticed, vocational training institutions to survive
and developing the institutions that must be attached to the training needs of
the society must also be teachers meet the needs of trainees. On the basis of
interpretation problems between theory and practice of "Restructuring
processes in human resources management of vocational schools in the
province of Lang Son," I want the results of the thesis will help facilities
training of the province is in the process of construction and development can
adjust the plan to build training and team building through which teachers
make the sustainable development of the unit.

1.3 Research Purpose

Today, finding the correct orientation and good human resource

management is a vital issue for business because it directly affects business
7
performance and sustainability of the organization. It is not only essential for
businesses, but also very necessary for the school unit

Overall objectives:

Based on the orientation of socio-economic development and job

training needs of workers, analyzing the status of vocational training facilities
that assist training institutions in the province of Lang Son and professional
development needs training needs of teachers and effective ways to create
sustainable growth of vocational training institutions.

Specific objectives:

- Identify a number of socio-economic indicators related to basic needs of

human resources and technical training of Lang Son province in 2011-2020.

- Data collection, training needs analysis survey of workers in the province

of Lang Son

- Analysis of existing capacity of training institutions in the province of

Lang Son and compare them with vocational training needs of employees and
human resources needs of the provinces through which to identify
organizations appropriate training for the development of training facilities in
the province.

1.4 Research Procedure

Research method: Quantitative

Research steps:

 Questionnaire design

- Questionnaire survey Determine research

- Determination of dynamic studies
- Identify the purpose of research
- Research documents
- Design models and theories
- Design questionnaire
- Check questions
- Distribution of questions
- Data collection
- Data analysis using SPSS
Conclusions and recommendations
Research questions.
Thesis to explain the following issues.
- The training model in Lang Son is now how to meet the training and human
resources of Lang Son and Why to restructure the model?

8
 - Based on how to restructure the model?
- Results of the impact of restructuring of training institutions
- Proposal for general training institutions

Research Structure of this thesis is divided into 5 main parts:

 Chapter I: Introduction

 Chapter II: Literature Review

 Chapter III: Research Methodology

 Chapter IV: Analysis and Results

 Chapter V: Conclusions
Mô hình nghiên cứu

Chất lượng hệ thống

LIBOL
H1

Chất lượng thông tin hệ

thống LIBOL Sự hài lòng của
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Chất lượng dịch vụ hệ H3

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9
 Chapter 2 Literature Review

2.1 Human Resource Management

Since 1945, after Viet Nam is independent, Government has started to pay attention to

HRM in organizations and companies.

“From the late 1970s to the early 1980s, a movement occurred while corporations’

personnel departments were renamed “human resources” departments. This movement

acknowledged that employees are not only just parts plugged into positions, but they are

important assets. It also marked an emerging recognition that organizations should change

or stop the historical practice of considering employees as costs, rather than as vital

sources of revenues and profits” (Liu et al., 2007).

The term “Human resources” is defined as the available talents and energies of people

working for an organization as potential contributors to the creation and realization of

mission, vision, strategy, and goals of the organization. They can make the best use of all

types of resources within the organization. “Finance and technology can bring advantage

but are no longer capable of sustaining this advantage”. “If the human resources are well

functioning, employee productivity rises and customer service improves. The employee

productivity rise but with lower cost, meanwhile, the customer service improves which

raise the perceived value. Thus, human resources could enable the company to create more

value” (Hill and Jones, 2004). “This is the result why it is vital to manage and develop

human resources effectively in any organization” (Priti, 2004).

“HRM is viewed as a function of an organization that focuses on the activities of

recruitment, management, and providing direction for the employee. Human Resource

Management could absolutely also be performed by line managers by dealing with issues

related to people, for instance, compensation, hiring, performance management,

organization development, safety, wellness, benefits, employee motivation,

communication, administration, and training”. As said by Werner & DeSimone (2006),

10
“HRM can be defined as the effective selection and utilization of employees to achieve the

goals and strategies of the organization, and also the goals and needs of employees”.

In recent years, the work on the relationships between human resource management

and organizational performance has been added as supplement by researches, which show

that human resource management is also positively linked to the motivation and well

being of employees. Add the source of the citation also show that the development of

positive psychological contracts between employees and managers are strongly affected

by the employees’ approval of the human resource management practices and the use of

human resource management. Form exploiting workers, the use of HRM creates high

levels of job satisfaction and motivation amongst workers. In addition, HRM also helps to

explain the mechanism for the positive relationship between human resource management

and organizational performance documented.

Four key areas of HRM are required, including: recruiting competencies, retaining

competencies, reinforcing competencies, and replacing competencies. Recruiting

competencies patterns change from mass recruitment of new graduates to recruitment on

demand, and from orientation to specialists with general creativity. Reinforcing

competencies de-emphasize seniority while increasing the importance of performance and

ability. Retaining competencies use training and development mechanism to upgrade skills

and retain capable employees while adopting new job design to divide core employees

into poor performers and contingent workers in order to retain core HR competencies.

Finally, replacing competencies introduce employment flexibility and outplacement to

replace lifetime employment.

Human resources can be considered a unique asset providing sustained competitive

advantage for organizations. Importance of managing human resources has been confirm

in the changes in the business environment with increasing globalization, changing

demographics of the workforce, increased focus on profitability through growth,

technological changes, intellectual capital and the never-ending changes that organizations

are undergoing (Sandeep Krishnan & Manjari Singh, 2006).

11
 Dowling and Schuler (1990) developed a model, which referred to the types of

personnel policy appropriate to encourage behaviors necessary to achieve the objectives in

the strategic competition. As stated by Dowling and Schuler, strategic competition can be

divided into three categories: strategy to strengthen the quality, cost reduction strategies,

and creative strategies.

Table 2.1: Summary of strategic competition categories

Creative strategies and Strategies to strengthen Strategy and cost

activities of HRM the quality and activities reduction activities and
of HRM HRM

12
- For the active
participation of workers
- Analyze career shoal
- Mobilizing external
resources
- Many opportunities for
career development
- Apply the criteria of the
process and results
- Apply the long-term
criteria
- Apply the criteria of the
object in the same group
- Apply a policy of
insurance laws
- Apply various preferential
policies
- Wages averaged
- Training more Building
relationships between
managers and employees
- For the active
participation of workers
- Analyze career shoal
- Mobilizing the resources
outside
- Less opportunity to
develop career
- Apply the criteria on the
results
- Apply the criteria short
term is mainly
- Apply the criteria of the
object in the same group
- Apply the criteria
employed
- Apply some preferential
policies
- Wages averaged
- Training more
- Building relationships
between managers and
employees
- For less participation by
workers
- Analyze career depth
- The use of resources
within
- Less opportunity to
develop career
- Apply the criteria of the
process and results
- Apply the criteria short
Apply criteria used is the
individual
- Limitations apply the
policy of insurance laos
- Less preferential policies
- Salary levels by
- Training less
- Construction of the
relationship managers
- The traditional labor

2.2 Human Resource Management system

The relationship between Information technology and HRM is that Technology can

help employees to gain completely control over their training and benefits enrolments;

Technology can help to give birth to a paperless employment office; Technology can

streamline the HR department’s work; and technology can provide knowledge for decision

support, etc (Cieri et al., 2005). In an organization Human resources are the most valuable

asset, and Human Resources (HR) department can administer these resources through

Human Resources System. In short, Human Resources System is designed so that all HR

processes can be efficiently operated (Human Resources System, 2008).

13
 Generally, a HRS contains many Software applications such as, HR planning

applications, staffing applications, performance management applications, learning and

career development applications, and salaries, material, equipment, and students

management applications. Besides, some organizations rely on a more sophisticated

system, called Human resource information system (HRIS), to support human resource

activities. “The key reasons for developing such a system are to follow the trend of the

globalization business, to create more flexible, non-traditional organization structures, to

apply a new information technology”, as stated similarly in (Cieri et al., 2005).

A Human Resource Management System (HRMS), also called Human Resource

Information System (HRIS), HR Technology or HR modules, refers to systems and

processes at the intersection between human resource management (HRM) and

information technology. HRMS combines HRM, as a discipline, and in particular basic

HR activities and processes with information technology together, whereas data

processing systems gradually varied into standardized routines and packages of enterprise

resource planning (ERP) system. Generally, an ERP system integrates information about

different applications into one universal database.

However, a modern HRIS is different from older systems that were designed only for

the compensation and benefits department to support HR functions. New database-related

technology can track information of each employee, applicant, or position generated by

the HR function, and, more importantly, can further integrate the information with other

data for decision-making (Michael Bedell, 2008). An HR system can select employees

through raising vacancy advertisements, calling for resumes, and facilitating interviews to

hire employees with good qualification. It also can identify training needs and schedule

optimum training of employees by ask them to join in conferences and seminars.

Remuneration given to employees is also an important aspect that HR can administer

through the Payroll module of the HR system. An HR system is the union of HR

management and HR information systems. HR technology fulfills this union through HR

14
modules. The use of a single database is the hallmark of a successful HR system

application package (Human Resources System, 2008; Duff, 1989).

An organization might face some issues relevant to Human Resource. In terms of

recruiting, retention, and cost control of benefits, some issues are described as follows:

(1) difficulty of recruiting talented sales staff under high turnover of salespersons; (2)

difficulty of querying from HR files to identify good candidates for job openings in the

firm; (3) the need for having more administrative staff to maintain and update employee

and job salary history data while the paperwork supporting for HR function seems grow

day by day; (4) the need for better data on the most relevant compensation packages for

certain hard-to-find job description; (5) the need for better information system to assess

the costs and benefits of products, early retirement plan or educational program

reimbursements. These problems may affect the quality of the HR function. Most of these

result largely from lacking access to information about employees, skill sets, job

descriptions, turnover data, retention data, and benefits plan, from which managers can

make queries and generate reports for external agencies (Ashbaugh & Rowen, 2002).

Besides maintaining the information of employees, positions, skills, applications and

performance, a HR information system can be used to manage workforce characteristics.

The objective of an effective HR strategy is to acquire, place, train, and develop

employees to meet organizational needs. HR information systems help managerial

decision-making by offering query and reporting tools (Ashbaugh and Rowen, 2002).

HRIS can simplify processes such as performance appraisal. The software tracks core-

competencies and provides tips on which employees need improving or coaching. It can

also alert a supervisor to orient a department, which may need training or management

attention, to accomplish the organization’s goals. Appraisal systems located at different

places can work cooperatively and consistently across operations (Lori Bussler & Elaine

Davis, 2002).

In fact, a HRIS has different capabilities which are packaged in databases for selling.

A company can pick carefully required capabilities to implement or buy for its own HRIS.

15
 Summarize the table below.

Table 2.2 The HRIS software’s capabilities

Functions provision of HRIS HRIS serve tracks in the organization

- Management of all employee - Attendance and HRM use

information. - Pay raises and history

- Reporting and analysis of employee - Pay grades and positions held

information. - Performance development plans

- Company-related documents such as - Training received

employee handbooks, emergency - Disciplinary action received

evacuation procedures, and safety - Personal employee information and

guidelines. occasionally

- Benefits administration including - Management and key employee

enrollment, status changes, and personal succession plans

information updating. - High potential employee identification

- Complete integration with payroll and - Applicant tracking, interviewing, and

other company financial software and selection

accounting systems.

- Applicant and resume management

2.3 Benefits of HRMS to organization

Applying a HRMS to an organization has many benefits such as updating, repairing,

copying and looking up information. This shows the importance of HRMS in a

organization.

From the study of Sandeep Krishnan & Manjari Singh, the concept from Miles and

Snow (1984) implied that a strategic HRM is viewed as a HRMS that can help for the

formulation and implementation of business strategies. The common benefits of HRMS

cited in existing studies includes improving accuracy, enabling timely and quick access to

information, and saving costs (Lederer, 1984; Tetz, 1973; Wille and Hammond, 1981).

Ulrich (1997) suggested that a HR function should be ideally placed to help an

16
organization for managing challenges. In addition, Kovach et al. (2002) listed several

administrative and strategic advantages by using HRMS. Similarly, Beckers and Bsat

(2002) indicated, more than five reasons why companies should apply HRMS. These

reasons were that HRMS can:

(1) Increase competitiveness by improving HR operations;

(2) Produce a greater number and variety of HR-related reports;

(3) Shift the focus of HR from transaction processing to strategic HRM;

(4) Make employees be a part of HRMS;

(5) And reengineer the entire HR functions of a company.

17