Vietnam Human Resource Enterprises and Training

Vietnam gracious election Enterprises and fostering1.1 The wideness of the k todayledge1.2 micturate and objectives of the project1.4 Dissertation structureChapter 2 literary productions re de terminationine2.1 Defining the ground kind-hearted Resource and humans Resource teaching, nurture, suppuration2.1.1 mankind imagi do master(prenominal)2.1.2 Human imaging breeding2.1.3 homework2.1.4 Development2.2 Purpose of selective information and emergence2.3 cultivation and knowledge progress in an enterprise2.3.1 Methods of fosterage and teaching2.3.2 Process of culture and prepare2.4 Factors collide with readying and schooling2.4.1 Internal factors2.4.2 External factorsChapter 1 IntroductionThe background of the involveVietnam is mavin of the countries which have the quick and the or so impressive growing economies in recent years. It is a transitional thrift and is evolution to a greater extent than(prenominal) than and more with an open door r egime policy. In 1986, Doi Moi economic reform was initiated and made a breakthrough for the miserliness of Vietnam. It deportationred Vietnam from socialist-oriented grocery economy to the free-market economy. On 11 January 2007, Viet Nam became the official 150th member of founding Trade Organisation (WTO). The day was considered as a historic day for the country. Joining the WTO, Vietnam showms to accept increase competition, and competition pull up stakes make the economy more merchant ship-do. Moreover, it creates a dynamic and ch solelyenging milieu for local make-ups to upgrade their operations some(prenominal) technologically and managerially, in order to unlock the immense po 10tial of the countrys inhering and compassionate options. (Mcneil et al, 1999). However, maturement the raceal benignant imagery in efficientness way seems to be not simple. It could be a challenge for any(prenominal) countries.In fact, Vietnam has the population which is more than eighty million (Vietnam ecumenical statistic office, 2010). It supplies a large labor burden which seems to be a competitive advantage for a underdeveloped country like Vietnam, e surplusly in attracting FDI (T. Le, 2007). However, this advantage is passing off in period situation. When using and development of technology, machinery in enterprises becomes popular, the competitiveness depends on military force-out resource lineament. Sadly, Vietnam is losing its competitive capability. In the Global fighting Report 2009-2010, Vietnam is d give five positions from seventieth to 75th, in which the quality of raising system is one of the wipe up elements. In veritableity, the poor quality in education and genteelness prevent the country from exploitation. Vietnam labor speciality has weaknesses and bounds. Ein truth year, a eminent helping of students graduated from universities have difficulties in finding a concern beca affair of lacking knowledge and skills. According to a report by the HCMC Department of Labor, War Invalids, and Social Affairs, alin concert around one third of the enterprises in the countries argon satisfied with the qualifications of their new recruits (Saigon Times Weekly, 2002c). It seems that the higher education in Vietnam which is in old equipment and passive voice order could not pay the real market postulate of high quality and skilled adult male resource in the period of development (Kamoche, 2001). Besides, proportion of employees who atomic number 18 handy in organizeing is hush 20% (Vietnam Ministry of Labour, Invalid and Social Affair, 2006). Duc Vuong (2008) argued that the staff look at is requisite more caring in harvest-home countries. As low labor follow is considered as an domineering advantage of labor-intensive economy and not high- tech or capital-intensive ones (Vietnam Ministry of Labour, Invalid and Social Affair, 2006). Hence, economies and bloodline need to correct the d iscipline and development of employees.Similar to Malaysia, vision of becoming a developed nation by 2020 put an accent on HRD (). The purpose of becoming a developed country in the hereafter absolutely raises the requirement of fostering and development gracious resource in Vietnam. In around other words, on that point be more and more concerns ab come forth HRD activities in the country. In national level, Vietnam political science considers exceedingly qualified piece resource as the important shoves to encouraging the industrialization cultivate and as the tail endonical ground for the ontogenesis of economy (MPI, 2001). Vietnam government applied polices to encourage the HRD in the country occurrencely in education. The government keeps push forward umbrella reform enhancing the quality of cooking and education at all levels. Besides, it focus ones on exploitation high quality human being resource to meet the economic development demand (Khang, 2010). The government has to a fault supported a computer computer designmeme to break HR skills in organizations through special upbringing bank lines (from 2004-2008). It helps companies and one-on-ones in change magnitude their competitiveness. T. Tran and L. Le (1996) gave several senses of the divergences countries in HRD. They concentrated on the wins of government policies of these countries in encouraging HRD and the lessons that Vietnam datet from. However, it takes time to see what the real benefits from policies be and changes in HRD be. Moreover, applying policies depends on many elements which specific in individualistly country. In Annual line of merchandise report of VCCI (Vietnam Chamber of Commerce and Industry) in 2007 fork outd an compendium of tonality developments include human resource development in Vietnam business environment and their impacts on Vietnam enterprises. It had showed the habitual impacts of human resources and labor supply in some(a ) specific sectors much(prenominal) as tourism, banking, construction. Since then, the specific solutions in HRD for each sector could be suggested. There is other aspect in HRD discussed in Vietnam at the moment. HRD should be ac political party with national economic strategies. In fact, in Vietnam, in fancyning national economic strategies, the experts focus on economic issues without concerning human resource division which is the vital and essential elements to implement these strategies (D. Phung and D. Do, 2009). The trouble appe ared here is when these strategies are mold up and the quality of human resource could not afford for them.In coincidence with some neighbor countries in ASEAN, although HRD activities in Vietnam are touch more, it is dummy up new and weak. For instance, in the last decade, bringing up consultants in Singapore have mushroomed. The emphasis on readiness is so much so that some companies have even created a standalone segment on develop a long with the HRM department (). Hence, Singapore ranks very high in the world in its emphasis on learning and development. Other example is in Malaysia, the HRD Act since 1992 forced the organizations which have more than 50 employees to support 1 pct of their monthly salaries to a fund to promote cultivation (). brilliance of the study teach and development human resource is not only the governments break but the organizations right as well. In recent years, the prepare and development human resource has been paid more attentions in Vietnam organizations (Kamoche, 2001). There is a strong willingness to learn and to be trained in organization. However, the level of attentions and willingness could be rock-bottom by the reluctance of employees to accept the new things and innovation. Also, there is a distinctive point of views in preparation and developing human resource inwardly organization. While in foreign invested companies lead to considers homework as a vital tool (Saigon Times, 2002), the SOEs sees it as an expense and tend to keep budget as gloomy as possible (Quang and Dung, 1998). The tuition objectives betweenThe importance of the studySMEs in Vietnam are a dynamic force of the Vietnam economy and have been contributing a tie of successes in the development of economy. In the research of Timothy Bartram et al (2009), he argued that Vietnam is authoritatively providing and creating many opportunities for the growth and development of entrepreneurial businesses, which appropriates signifi bottomt opportunities as well as challenges for managers of these enterprises. In human resources aspect, SMEs created around 60% of the total moving in for labor force (Sakai and Takada, 2000) and until now this number has increased significantly. Besides, private sector plays a tolerant role in increasing GDP annual. Understanding the important role of SMEs clearly, Vietnam government has been developing policies and creating conditions generall y for the growth of SMEs, and particularly for the human resource development in SMEs.The private sector grows and competes openly for experienced and skilled staff, HR larn new importance. However, SMEs face particular problems in HR. Certainly, small firms do not have the HRM expertise, infrastructure and general resources commanded by larger organisations (Hill and Stewart, 2000). The requirement of development of human resource is truly necessary because the business environment change day by day and employees need cleanse their skills and knowledge to watch their productivity. Enterprises which want to maintain their competitiveness and effectiveness need to consider human resource development as one of the most important parts. Following Adeniyi (1995), he observed that staff prep and development is a work natural shape that can make a very important and no fudge contribution to the overall effectiveness and profitability of an organization. Huang (2001) proved that tra ining program has a close relative to the public presentation in the enterprises and training programs produce real benefits for small and medium-size enterprises (SMEs)In Vietnam, human resource especially human resource development is noneffervescent a quite new area. At the moment, there are a a couple of(prenominal) researches around Human Resource Development. confiningly of them show the essential requirement, challenges and opportunities of HRD in authentic situation of rapid economic development, the HRM of the nation in macro level. Some others illustrate more late in the situation of the HR and Human resource trouble in enterprises.In reality, a big question that what HRD is and how HRD plays its role in the enterprises still has not an answer. So, the research in this paper focuses on one main area of HRD which is training and developing human resource in the context of SMEs in Vietnam. It would bestow some contributions to the Vietnamese enterprises in referring the primary knowledge in training and developing human resource, analyzing the factors which could affect on their training and developing human resource actions in the context of Vietnam. Furthermore, the examples of experiences in HRD from some others countries and organizations will be shown as the lessons help enterprises in finding solution for their situation. Then, the view of HRD in enterprises would be cared wider and deeper.Aim and objective of the projectThe project focuses on the analyzing the actions of training and developing human resource in enterprises in Vietnam. The company selected in research is Deloitte Vietnam Company. It is the company of which the HRD activities will be analyse specificallyThere are trey principal objectivesGeneralizing and developing of the principles in literature of human resources development and human resources in enterprises utilise this literature to analyze and evaluate the activities in HRD in enterprises according to illustrate the advantage factors and disadvantages factors which affect in HRD in the companySuggesting solution and points of views to improve the HRD in the company selected.MethodologyDissertation structureChapter 2 Literature reviewDefining the terms Human Resource and Human Resource Development, Training, DevelopmentDevelopmentIt is the growth or realization of a persons ability, through conscious or unconscious information. Development programmes universally include elements of planned study and experience, and are frequently supported by a coaching or counseling facility (MSC, 198115)Development occurs when a gain in experience is effective unite with the conceptual understanding that can illuminate it, self-aggrandizing increased confidence both to act and to perceive how much(prenominal) action relates to it context. (Bolton, 199515)From these definitions, the development could show the performance to an improved situation that for the individual means advancing towards the corporeal and mental potential.There is one common theme that Nadler (1990) provided when he gathered the term of training and development is that both of training and development take hold the word tuition. He estated that training = learning tie in to present creases and development = learning for growth of the individual but not related to a specific present or future rail lineHuman resource developmentAbout Human Resource Development, it refers to locomote development, training and development, and organizational development programs offered to employees to develop new or replacement knowledge and skills improve their performances, potentials, and promotability enhance to their general growth, and improve stem and organizational effectiveness (William R. Tracey, )There are many strands to HRD such as person-to-person development, development for a chisel, a situation, or for setting a new works. It could be a development leading to a part life for individuals, organi zations or even wider communities as well. (J. Matthews et al ). In Coopey et al 199324, it is seen as a capacity to incorporate learning into behavourFurthermore, HRD is an extension of Training and Development, with a specific orientation towards organizational learning interventions which are created to improve skills, knowledge and understanding.Follow Leonard Nadler, HRD is defined as a serial of organized activities conducted inwardly a undertake time and knowing to produce behavioural change of individuals in organizations. (Nadler, 1970). It includes 3 types of vocational learning activity which help individuals to be more effective at work Training counsel in immediate changes in jobs performance Education, geared towards talk terms changes in individual capabilities Development concerned with long-term improvement in the individual workers ( Nadler, 1970)In normal of HRD, Jerry W. Gilley et al showed tierce fundamental dowery areas of human resource development. T hey are individual development (personal), career development (professional), and organizational development. Each agent has their own importance roles which vary from organization to organization harmonised with the operation complexity, the criticality of human resources to capacity in organization, and the organizations commitment to improved human resources. However, all of three component areas have one focus which is individual performance improvement. The individual performance improvement is the inwardness of an HRD program, and HRD can be described as the area of congruence among the three components (Gilley, and Eggland 14) (see figure 2.1)(Figure 2.1)It is also importance to distinguish the field of human resources in organization which covers a broad spectrum of human activity. In fact, there is still a misunderstanding in HR sectors in enterprises, especially in developing countries such as Vietnam where the HR sector is still new. Based the human resource wheel (Mc Lagan and Suhadonik, 1989) and the wheel of HRM (Harison, 1997), the human resource compass which indicates an overview of the territory and gives teaching to to the various elements in the subject and their interrelationship was built. It is divided in 3 main sectors HRD, HRD and HRM, and HRM. (J. Wilson, 2005)(Figure 2.2)Human resourceHuman resources are described as the individuals who comprise the work force of an organization. They are the flock that staff and wreak an organization- the executives, managers, supervisors, scientists and engineers, technicians and marketing and sales personnel, administrative and clerical personnel, and hourly workers- as contrasted with the financial and material resources of an organization (William R. Tracey, )It is also the name of the function in an organization which has a responsibility for implementing strategies and policies relating to the management of individuals. In other words, it could be understood as the organizational functio n that deals with the people who manage, produce, market and sell the products and helps of an organization (William R. Tracey, )In a nation, the economic value of human resources resides not in numbers or carnal characteristics such as height, but in the skills, knowledge and attitudes that are the guide of norms and education provision.TrainingTraining, according to the men Services Commissions Glossary of training terms, is a planned member to modify attitudes, knowledge or skill air through learning experiences to achieve effective performance in an activity or ordinate of activities. Its purpose, in the work situation, is to develop the abilities of individual and to satisfy the current and future unavoidably of the organization. (MSC, 198162).In CEDEFOP (199652), training is defined as activity or program of activities designed to teach the skills and knowledge demand for particular kinds of work. Training takes places, whereas education takes place at educational est ablishment.In reality, both of definitions illustrate about the industry of training to the improve skills and competences to meet the requirement of the organization. In training, the limitation is also indicated to the specific skills and operations. In comparison with education, training normally has an immediate performance and is completed in a go arounder time than education. (Van Wart et al, 1993)Purposes of Training and DevelopmentTraining and development (TD) was beginning to receive more attention in Vietnamese organizations (Kamoche, 2001). Training and development factually refers to a planned effort which the organization shew to facilitate the learning of job-related behavior (such as knowledge and skill acquired by an employee through practice) on the part of its employees. (Wexley et al,1991).The general purpose of traning and developing involves knowledge and skill acquisition. The employee quality and their development through training are consider as the maj or factor in determining long-term profitability of enterprises. A good investment in the development of skill for employees will help them increase their productivity in working.In fact, there is a view that training often is considered for the new employees. It is totally incorrect because on-going training for current employees helps them adjust to promptly changing job requirements. (Small Business Management)Training and development creates a benefit that the communication abilities of employees can improve, which enhances their adaptability. Better-educated workers can give the flexibility needed to switch production and better accommodate innovation, retraining and relocation (Godfrey, 1997).Traning and Development progress in an enterpriseTraining and Development has traditionally been a functional division of the personnel or human resource department related to carrying out the identification of training and development take, prep and designing training and evaluating it. (see figure 2.3)(Figure 2.3) the classic training cycles/secondWinter (1995) did not using the term HRD, he talked about a system approach to developing employees with the starting point the business objectives. So the classic training cycle can be seen to be based on organizational scheme within a company.(Figure 2.4) Business objectives within a training cycleMethods of Training and developmentIn training, there are a numerous techniques available for presenting information and transmitting skills. Each of the techniques has their own advantages and disadvantages. The application of training manner depends on the specific situation. In general, training has been widely utilise by companies in Vietnam. But, they differed in the use of training options (Quang, 2006).On-site training methodsThe main advantages of on-site training are the problems of transfer of learning and training cost are minimized. The reason is the trainees learn the skills and knowledge in the same phys ical and social environment. Moreover, with certain of these techniques, the trainees are able to contribute their work while they are learning. This things reduce the training cost. (Wexley et al,1991).On the other hands, on-site training has some limitations. Most of the co-workers and supervisors do have motivation to provide the trainees with worthwhile learning experiences.(figure 2.5) on-site methods categorise according to finishs and strategiesThe table shows that a training effort can have one or more of the following goals. These goal boards can be achieved by directive training efforts at the trainees cognition, behavior or environment. From the table, on-site methods were classified in categories.Orientation training and the socialization of new employeesIt is important to help new employees to get in a right way in order to reduce their anxiety and to increase their job gladness and commitment. (Louis et al, 1983). The procedure of this method should begin cautious ly and in detail. The poor orientation programs could make damage to organization because they reduce the effectiveness for the stolon few time on the job and may lead to dissatisfaction and turnover. (Gomersall et al, 1966) smith (1984) showed ten tasks effectuateed in the program such as introduction the company review of policy, benefits, services, employer expectations benefit plan enrolment completion of booking documents setting employer expectations introduction to fellow workers, to the facilities, and the job.On-the-job trainingIn this training method, the trainees are expected to learn the job by observing the experiences employees and by working with the actual materials, personnel and machinery that will comprise the job when the formal training is completed. On the experienced employees aspect, they is expected to provide not only a well-disposed role model to whom the trainee can identify but the control and the guidance from the job duties as well. (Wexley et al, 1991).Apprenticeship trainingApprenticeship programs are initiated by a committee composed of representatives for management and labor. The joint of committee works together with the department of Labors Bureau of Apprenticeship and Training (BAT) in developing a set of standards that specify the features of particular program such as number of class hours, workshop instruction, political programJob aidsA job aid is a repository for information, processes, or perspectives that is external to the individual and that supports work and activity by directing, guiding, and illuminating performance. (Rossett et al, 1991). The goal of Job aids is to teach job skills and to accomplish this by using a behavioural strategy.coaching job/ MentoringMentoring and coaching have been provocative practices in both the practical and academic organizational development and human resource development literature for almost ten years. (Bokeno, 2003)Coaching the employees through the use of diurnal re views of performance is a difference way of on-site training. Coaching serves a several important function in organization. Firstly, it lets subordinates know what their supervisors think about their work. Then, the supervisors and employees work together on the way that helps improve employees performance. Thirdly, it improves the interaction between supervisors and employees. Finally, it provides a framework for setting up short term and long term personal career goals.Related to the teaching of coaching is mentoring. Mentors are the people who have two or three higher level than trainees and they want to help less experience trainees to learn the ropes in a ancillary relationship. (Wilson and Danes, 1988)Computer-based trainingIt is a technique can be used in conjunction with coaching and mentoring. Computer-based training (CBT) refers to as interactive videos and videodisc, provides guidance and instruction by using computer terminal on an employees desks. It is now used as an efficient method to many types of job. (Wexley et al,1991). hombre Sweeten of Information Transfer express that The practical benefits of using computers to deliver training and perform judgment training have been proven. Computer-based training is passing flexible and fits with the demands of everyday work you can work on your own, at your own desk and in your own timeJob rotationIt relates to giving a series of jobs assignments to trainees in various parts in organization for a specific time. The key of this method is to parade individuals to the changes in working environment in other places. In each department, trainees could put on an empirical role, and take responsibility for training specified results. Job rotation is considered as a perfect method for preparing high potential and specialist for future general executive responsibilities. (Farnsworth, 1975)Off-site training methodsOff-site training methods are often used in organizational settings. An advantages of thi s method is that it allows the trainees to learn skills and knowledge away from pressures of day-to-day job. The other benefit is the use of commensurate outside resources people who are trained trainers such as technicians, consultants. The limitation of it is the transfer of learning from classroom to the job.(figure 2.6) off-site methods classified according to goals and strategiesLectureLecture method has been frequently criticized as a training and development technique. (Korma, 1977). In fact, it does not bring a high benefit. Firstly, its format emphasizes one way hunt down communication from trainers to trainees, which make the trainees are passive in learning. Secondly, it fails in transfer job-related skills. The lecturers ignore the differences in trainees abilities, backgrounds and interests. In additionally, severalize and reinforcement of trainees are prevented.Audiovisual techniquesThis method can be used widely in many training and development programs. Teaching and learning with audiovisual technique has several advantages. First, it helps trainees to illustrate and see clearly the overview image of what trainers want to delivery lively. Then, it helps distance learning effectively when the trainers and trainees are in difference places.TeleconferencingIt is a method for simultaneously training individuals at the multiple sites. A teleconferencing internet consists of a central broadcasting facility, a satellite service whose signals is delivered and transmitted to television projectors in brush rooms, ballrooms, or corporate headquarter.Corporate classroomsCorporate classroom aims to tech employees skills and to accomplish this by using cognitive strategy. This method is often in big corporations. They intend to build their own universities and colleges to continue the further education for their employees.Equipment simulatorsIt is excellent way to bring realism to off-site training situation. In this method, simulators of the equipmen t are designed and set up away from the actual work situation. Advantages from the method are the time pressures for productivity are minimized, individualized feedback is increased and opportunities for repeated practice are provided.Computer-assisted instructionIn this method, trainees interact directly with the computers. The training is combined with learners exercises manuals, equipment stimulations, job aids The role of computer here involves administratering and the training programs to the trainees and testing their performance after learning. (Patrick et al, 1977). It could quantify the progress of trainees and provide a method to fit the trainees demandEach enterprise will use the differences training methods which are suitable to their situation within organization. In Vietnam situation, Webster and Tausig (1999) did a survey which showed that 93 percent of the surveyed SMEs provided in-house training for freshmen and off-the-job training. Most SMEs rely only on inform al training due to budget constraints (Tran and Le, 1999). However, the process to have a good training and development program is not simpleProcess of Training and DevelopingAnalyzing the training and development needsIt is considered as the first step in the process of training and development.Boydell (1983) showed three levels of training needs within organizations which are organizational level, occupational level, and individual level.Organisation analytic thinking looks at the organization as a whole. This relates to examining organization port wine with the external environment, in which it operates, the acquisition of its state objectives, its human resources, and the inner climate. The purpose of organization analysis is to mould where the training activities should be conducted.Occupational analysis includes five go in conducting task analysis. The five steps are (1) Obtaining a company job description (2) Identifying the tasks for which the training is designed (3) Id entifying the knowledge (K), skills (S), and abilities (A) (4) develop course objectives (5) design the training program.In the individual analysis, organization identifies any shortfall in individuals knowledge, skill and attitudes required to perform their jobs.(Figure 2.7) P. Nick Blanchard, James W. Thacker (1999), utile training systems, strategies, and practicesIn fact, when the results of employees performance do not satisfy and meet the requirement of job analyzed in occupational analysis. That means there are problems. In that case, organization needs to find a solution. In table below, it illustrates the way to approach how to examining performance problem of the employees(Figure 2.8) Robyn Peterson (1998), Training Needs AssessmentAnalyzing the training and development in this way has advantages and disadvantages. It helps the organization have an perfect overview of training and development needs within organization. Beside, it guarantees the links between the training and requirement of trainees. However, it takes time to analyze.During the process of analyzing, the thing could happen is the number of training needs is larger than can be met through current resources. So, it is necessary to prioritize the needs (J. Wilson, 2005)Training and development planThe result from the process of analyzing an organizations training needs is a training plan. This plan is constructed by the training department and is used to strategically plan what kinds of training will be conducted in the near future. (Wexley et al,1991).Moreover, during the process of analyzing, the thing could happen is the number of training needs are larger than can be met through current resources. So, it is necessary to prioritize the needs. The content of a training plan should includes objects and objectives of training, theme of the training courses, the time of training courses, trainers, and training methods, the place of training class, and the cost of training (HRD in SMEs)Wh en planning a training program, it is essential to establish an evaluating system for the result of program.The plan should be clearVietnam Human Resource Enterprises and TrainingVietnam Human Resource Enterprises and Training1.1 The importance of the study1.2 Aim and objectives of the project1.4 Dissertation structureChapter 2 Literature review2.1 Defining the terms Human Resource and Human Resource Development, Training, Development2.1.1 Human resource2.1.2 Human resource development2.1.3 Training2.1.4 Development2.2 Purpose of training and development2.3 Training and development progress in an enterprise2.3.1 Methods of Training and development2.3.2 Process of training and development2.4 Factors affect training and development2.4.1 Internal factors2.4.2 External factorsChapter 1 IntroductionThe background of the studyVietnam is one of the countries which have the fastest and the most impressive growing economies in recent years. It is a transitional economy and is developing more and more with an open door government policy. In 1986, Doi Moi economic reform was initiated and made a breakthrough for the economy of Vietnam. It transferred Vietnam from socialist-oriented market economy to the free-market economy. On 11 January 2007, Viet Nam became the official 150th member of World Trade Organisation (WTO). The day was considered as a historic day for the country. Joining the WTO, Vietnam seems to accept increased competition, and competition will make the economy more dynamic. Moreover, it creates a dynamic and challenging environment for local organizations to upgrade their operations both technologically and managerially, in order to unlock the immense potential of the countrys natural and human resources. (Mcneil et al, 1999). However, using the national human resource in effectiveness way seems to be not simple. It could be a challenge for any countries.In fact, Vietnam has the population which is more than eighty million (Vietnam general statistic offic e, 2010). It supplies a large labor force which seems to be a competitive advantage for a developing country like Vietnam, especially in attracting FDI (T. Le, 2007). However, this advantage is passing off in current situation. When using and development of technology, machinery in enterprises becomes popular, the competitiveness depends on human resource quality. Sadly, Vietnam is losing its competitive capability. In the Global Competitiveness Report 2009-2010, Vietnam is down five positions from 70th to 75th, in which the quality of education system is one of the worst elements. In reality, the poor quality in education and training prevent the country from developing. Vietnam labor force has weaknesses and limitations. Every year, a high percentage of students graduated from universities have difficulties in finding a job because of lacking knowledge and skills. According to a report by the HCMC Department of Labor, War Invalids, and Social Affairs, only around one third of the enterprises in the countries are satisfied with the qualifications of their new recruits (Saigon Times Weekly, 2002c). It seems that the higher education in Vietnam which is in old equipment and passive method could not satisfy the real market demand of high quality and skilled human resource in the period of development (Kamoche, 2001). Besides, proportion of employees who are trained in working is just 20% (Vietnam Ministry of Labour, Invalid and Social Affair, 2006). Duc Vuong (2008) argued that the staff training is required more caring in developing countries. As low labor cost is considered as an absolute advantage of labor-intensive economy but not high- tech or capital-intensive ones (Vietnam Ministry of Labour, Invalid and Social Affair, 2006). Hence, economies and business need to improve the training and development of employees.Similar to Malaysia, vision of becoming a developed nation by 2020 put an emphasis on HRD (). The purpose of becoming a developed country in the future absolutely raises the requirement of training and development human resource in Vietnam. In other words, there are more and more concerns about HRD activities in the country. In national level, Vietnam government considers highly qualified human resource as the important forces to encouraging the industrialization process and as the basic ground for the growth of economy (MPI, 2001). Vietnam government applied polices to encourage the HRD in the country especially in education. The government keeps push forward comprehensive reform enhancing the quality of training and education at all levels. Besides, it focuses on developing high quality human resource to meet the economic development demand (Khang, 2010). The government has also supported a program to improve HR skills in organizations through special training courses (from 2004-2008). It helps companies and individuals in increasing their competitiveness. T. Tran and L. Le (1996) gave several experiences of the difference s countries in HRD. They concentrated on the benefits of government policies of these countries in encouraging HRD and the lessons that Vietnam learnt from. However, it takes time to see what the real benefits from policies are and changes in HRD are. Moreover, applying policies depends on many elements which specific in each country. In Annual business report of VCCI (Vietnam Chamber of Commerce and Industry) in 2007 provided an analysis of key developments include human resource development in Vietnam business environment and their impacts on Vietnam enterprises. It had showed the general impacts of human resources and labor supply in some specific sectors such as tourism, banking, construction. Since then, the specific solutions in HRD for each sector could be suggested. There is another aspect in HRD discussed in Vietnam at the moment. HRD should be accompanied with national economic strategies. In fact, in Vietnam, in planning national economic strategies, the experts focus on economic issues without concerning human resource role which is the vital and essential elements to implement these strategies (D. Phung and D. Do, 2009). The problem appeared here is when these strategies are set up and the quality of human resource could not afford for them.In comparison with some neighbor countries in ASEAN, although HRD activities in Vietnam are concerned more, it is still new and weak. For instance, in the last decade, training consultants in Singapore have mushroomed. The emphasis on training is so much so that some companies have even created a standalone department on training along with the HRM department (). Hence, Singapore ranks very high in the world in its emphasis on training and development. Other example is in Malaysia, the HRD Act since 1992 forced the organizations which have more than 50 employees to support 1 percent of their monthly salaries to a fund to promote training ().Importance of the studyTraining and development human resource is not o nly the governments responsibility but the organizations responsibility as well. In recent years, the training and development human resource has been paid more attentions in Vietnam organizations (Kamoche, 2001). There is a strong willingness to learn and to be trained in organization. However, the level of attentions and willingness could be decreased by the reluctance of employees to accept the new things and innovation. Also, there is a distinctive point of views in training and developing human resource within organization. While in foreign invested companies tend to considers training as a vital tool (Saigon Times, 2002), the SOEs sees it as an expense and tend to keep budget as small as possible (Quang and Dung, 1998). The training objectives betweenThe importance of the studySMEs in Vietnam are a dynamic force of the Vietnam economy and have been contributing a lot of successes in the development of economy. In the research of Timothy Bartram et al (2009), he argued that Vie tnam is currently providing and creating many opportunities for the growth and development of entrepreneurial businesses, which provides significant opportunities as well as challenges for managers of these enterprises. In human resources aspect, SMEs created around 60% of the total job for labor force (Sakai and Takada, 2000) and until now this number has increased significantly. Besides, private sector plays a big role in increasing GDP annual. Understanding the important role of SMEs clearly, Vietnam government has been developing policies and creating conditions generally for the growth of SMEs, and particularly for the human resource development in SMEs.The private sector grows and competes openly for experienced and skilled staff, HR assume new importance. However, SMEs face particular problems in HR. Certainly, small firms do not have the HRM expertise, infrastructure and general resources commanded by larger organisations (Hill and Stewart, 2000). The requirement of developm ent of human resource is truly necessary because the business environment change day by day and employees need improve their skills and knowledge to maintain their productivity. Enterprises which want to maintain their competitiveness and effectiveness need to consider human resource development as one of the most important parts. Following Adeniyi (1995), he observed that staff training and development is a work activity that can make a very important and remarkable contribution to the overall effectiveness and profitability of an organization. Huang (2001) proved that training program has a close relation to the performance in the enterprises and training programs produce real benefits for small and medium-size enterprises (SMEs)In Vietnam, human resource especially human resource development is still a quite new area. At the moment, there are a few researches around Human Resource Development. Most of them show the essential requirement, challenges and opportunities of HRD in cur rent situation of rapid economic development, the HRM of the nation in macro level. Some others illustrate more deeply in the situation of the HR and Human resource management in enterprises.In reality, a big question that what HRD is and how HRD plays its role in the enterprises still has not an answer. So, the research in this paper focuses on one main area of HRD which is training and developing human resource in the context of SMEs in Vietnam. It would give some contributions to the Vietnamese enterprises in referring the basic knowledge in training and developing human resource, analyzing the factors which could affect on their training and developing human resource actions in the context of Vietnam. Furthermore, the examples of experiences in HRD from some others countries and organizations will be shown as the lessons help enterprises in finding solution for their situation. Then, the view of HRD in enterprises would be cared wider and deeper.Aim and objective of the projectT he project focuses on the analyzing the actions of training and developing human resource in enterprises in Vietnam. The company selected in research is Deloitte Vietnam Company. It is the company of which the HRD activities will be analyzed specificallyThere are three principal objectivesGeneralizing and developing of the principles in literature of human resources development and human resources in enterprisesUsing this literature to analyze and evaluate the activities in HRD in enterprises according to illustrate the advantage factors and disadvantages factors which affect in HRD in the companySuggesting solution and points of views to improve the HRD in the company selected.MethodologyDissertation structureChapter 2 Literature reviewDefining the terms Human Resource and Human Resource Development, Training, DevelopmentDevelopmentIt is the growth or realization of a persons ability, through conscious or unconscious learning. Development programmes usually include elements of plan ned study and experience, and are frequently supported by a coaching or counseling facility (MSC, 198115)Development occurs when a gain in experience is effective combined with the conceptual understanding that can illuminate it, giving increased confidence both to act and to perceive how such action relates to it context. (Bolton, 199515)From these definitions, the development could show the movement to an improved situation that for the individual means advancing towards the physical and mental potential.There is one common theme that Nadler (1990) provided when he gathered the term of training and development is that both of training and development contain the word learning. He stated that training = learning related to present jobs and development = learning for growth of the individual but not related to a specific present or future jobHuman resource developmentAbout Human Resource Development, it refers to career development, training and development, and organizational devel opment programs offered to employees to develop new or replacement knowledge and skills improve their performances, potentials, and promotability enhance to their general growth, and improve group and organizational effectiveness (William R. Tracey, )There are many strands to HRD such as personal development, development for a job, a situation, or for setting a new works. It could be a development leading to a better life for individuals, organizations or even wider communities as well. (J. Matthews et al ). In Coopey et al 199324, it is seen as a capacity to incorporate learning into behavourFurthermore, HRD is an extension of Training and Development, with a specific orientation towards organizational learning interventions which are created to improve skills, knowledge and understanding.Follow Leonard Nadler, HRD is defined as a series of organized activities conducted within a specified time and designed to produce behavioral change of individuals in organizations. (Nadler, 1970 ). It includes 3 types of vocational learning activity which help individuals to be more effective at work Training focusing in immediate changes in jobs performance Education, geared towards intermediate changes in individual capabilities Development concerned with long-term improvement in the individual workers ( Nadler, 1970)In Principle of HRD, Jerry W. Gilley et al showed three fundamental component areas of human resource development. They are individual development (personal), career development (professional), and organizational development. Each component has their own importance roles which vary from organization to organization accordant with the operation complexity, the criticality of human resources to efficiency in organization, and the organizations commitment to improved human resources. However, all of three component areas have one focus which is individual performance improvement. The individual performance improvement is the heart of an HRD program, and HRD can be described as the area of congruence among the three components (Gilley, and Eggland 14) (see figure 2.1)(Figure 2.1)It is also importance to distinguish the field of human resources in organization which covers a broad spectrum of human activity. In fact, there is still a misunderstanding in HR sectors in enterprises, especially in developing countries such as Vietnam where the HR sector is still new. Based the human resource wheel (McLagan and Suhadonik, 1989) and the wheel of HRM (Harison, 1997), the human resource compass which indicates an overview of the territory and gives direction to to the various elements in the subject and their interrelationship was built. It is divided in 3 main sectors HRD, HRD and HRM, and HRM. (J. Wilson, 2005)(Figure 2.2)Human resourceHuman resources are described as the individuals who comprise the workforce of an organization. They are the people that staff and operate an organization- the executives, managers, supervisors, scientists and engin eers, technicians and marketing and sales personnel, administrative and clerical personnel, and hourly workers- as contrasted with the financial and material resources of an organization (William R. Tracey, )It is also the name of the function in an organization which has a responsibility for implementing strategies and policies relating to the management of individuals. In other words, it could be understood as the organizational function that deals with the people who manage, produce, market and sell the products and services of an organization (William R. Tracey, )In a nation, the economic value of human resources resides not in numbers or physical characteristics such as height, but in the skills, knowledge and attitudes that are the result of norms and education provision.TrainingTraining, according to the Manpower Services Commissions Glossary of training terms, is a planned process to modify attitudes, knowledge or skill behavior through learning experiences to achieve effect ive performance in an activity or range of activities. Its purpose, in the work situation, is to develop the abilities of individual and to satisfy the current and future needs of the organization. (MSC, 198162).In CEDEFOP (199652), training is defined as activity or program of activities designed to teach the skills and knowledge required for particular kinds of work. Training takes places, whereas education takes place at educational establishment.In reality, both of definitions illustrate about the application of training to the improve skills and competences to meet the requirement of the organization. In training, the limitation is also indicated to the specific skills and operations. In comparison with education, training normally has an immediate application and is completed in a shorter time than education. (Van Wart et al, 1993)Purposes of Training and DevelopmentTraining and development (TD) was beginning to receive more attention in Vietnamese organizations (Kamoche, 2001 ). Training and development actually refers to a planned effort which the organization build to facilitate the learning of job-related behavior (such as knowledge and skill acquired by an employee through practice) on the part of its employees. (Wexley et al,1991).The general purpose of traning and developing involves knowledge and skill acquisition. The employee quality and their development through training are consider as the major factor in determining long-term profitability of enterprises. A good investment in the development of skill for employees will help them increase their productivity in working.In fact, there is a view that training often is considered for the new employees. It is totally incorrect because ongoing training for current employees helps them adjust to rapidly changing job requirements. (Small Business Management)Training and development creates a benefit that the communication abilities of employees can improve, which enhances their adaptability. Better-ed ucated workers can give the flexibility needed to switch production and better accommodate innovation, retraining and relocation (Godfrey, 1997).Traning and Development progress in an enterpriseTraining and Development has traditionally been a functional division of the personnel or human resource department related to carrying out the identification of training and development needs, planning and designing training and evaluating it. (see figure 2.3)(Figure 2.3) the classic training cycleWinter (1995) did not using the term HRD, he talked about a system approach to developing employees with the starting point the business objectives. So the classic training cycle can be seen to be based on organizational strategy within a company.(Figure 2.4) Business objectives within a training cycleMethods of Training and developmentIn training, there are a numerous techniques available for presenting information and transmitting skills. Each of the techniques has their own advantages and disadv antages. The application of training method depends on the specific situation. In general, training has been widely used by companies in Vietnam. But, they differed in the use of training options (Quang, 2006).On-site training methodsThe main advantages of on-site training are the problems of transfer of learning and training cost are minimized. The reason is the trainees learn the skills and knowledge in the same physical and social environment. Moreover, with certain of these techniques, the trainees are able to contribute their work while they are learning. This things reduce the training cost. (Wexley et al,1991).On the other hands, on-site training has some limitations. Most of the co-workers and supervisors do have motivation to provide the trainees with worthwhile learning experiences.(figure 2.5) on-site methods classified according to goals and strategiesThe table shows that a training effort can have one or more of the following goals. These goal boards can be achieved by directing training efforts at the trainees cognition, behavior or environment. From the table, on-site methods were classified in categories.Orientation training and the socialization of new employeesIt is important to help new employees to get in a right way in order to reduce their anxiety and to increase their job satisfaction and commitment. (Louis et al, 1983). The procedure of this method should begin carefully and in detail. The poor orientation programs could make damage to organization because they reduce the effectiveness for the first few time on the job and may lead to dissatisfaction and turnover. (Gomersall et al, 1966)Smith (1984) showed ten tasks accomplished in the program such as introduction the company review of policy, benefits, services, employer expectations benefit plan enrolment completion of employment documents setting employer expectations introduction to fellow workers, to the facilities, and the job.On-the-job trainingIn this training method, the traine es are expected to learn the job by observing the experiences employees and by working with the actual materials, personnel and machinery that will comprise the job when the formal training is completed. On the experienced employees aspect, they is expected to provide not only a favorable role model to whom the trainee can identify but the instruction and the guidance from the job duties as well. (Wexley et al,1991).Apprenticeship trainingApprenticeship programs are initiated by a committee composed of representatives for management and labor. The joint of committee works together with the department of Labors Bureau of Apprenticeship and Training (BAT) in developing a set of standards that specify the features of particular program such as number of class hours, workshop instruction, curriculumJob aidsA job aid is a repository for information, processes, or perspectives that is external to the individual and that supports work and activity by directing, guiding, and enlightening pe rformance. (Rossett et al, 1991). The goal of Job aids is to teach job skills and to accomplish this by using a behavioral strategy.Coaching/ MentoringMentoring and coaching have been provocative practices in both the practical and academic organizational development and human resource development literature for almost ten years. (Bokeno, 2003)Coaching the employees through the use of periodic reviews of performance is a difference way of on-site training. Coaching serves a several important function in organization. Firstly, it lets subordinates know what their supervisors think about their work. Then, the supervisors and employees work together on the way that helps improve employees performance. Thirdly, it improves the interaction between supervisors and employees. Finally, it provides a framework for setting up short term and long term personal career goals.Related to the teaching of coaching is mentoring. Mentors are the people who have two or three higher level than trainees and they want to help less experience trainees to learn the ropes in a supportive relationship. (Wilson and Danes, 1988)Computer-based trainingIt is a technique can be used in conjunction with coaching and mentoring. Computer-based training (CBT) refers to as interactive videos and videodisc, provides guidance and instruction by using computer terminal on an employees desks. It is now used as an efficient method to many types of job. (Wexley et al,1991). Guy Sweeten of Information Transfer said that The practical benefits of using computers to deliver training and perform assessment training have been proven. Computer-based training is highly flexible and fits with the demands of everyday work you can work on your own, at your own desk and in your own timeJob rotationIt relates to giving a series of jobs assignments to trainees in various parts in organization for a specific time. The key of this method is to expose individuals to the changes in working environment in other places. In each department, trainees could put on an observational role, and take responsibility for training specified results. Job rotation is considered as a perfect method for preparing high potential and specialist for future general executive responsibilities. (Farnsworth, 1975)Off-site training methodsOff-site training methods are often used in organizational settings. An advantages of this method is that it allows the trainees to learn skills and knowledge away from pressures of day-to-day job. The other benefit is the use of competent outside resources people who are trained trainers such as technicians, consultants. The limitation of it is the transfer of learning from classroom to the job.(figure 2.6) off-site methods classified according to goals and strategiesLectureLecture method has been frequently criticized as a training and development technique. (Korma, 1977). In fact, it does not bring a high benefit. Firstly, its format emphasizes one way flow communication from trainer s to trainees, which make the trainees are passive in learning. Secondly, it fails in transfer job-related skills. The lecturers ignore the differences in trainees abilities, backgrounds and interests. In additionally, individualized and reinforcement of trainees are prevented.Audiovisual techniquesThis method can be used widely in many training and development programs. Teaching and learning with audiovisual technique has several advantages. First, it helps trainees to illustrate and see clearly the overview image of what trainers want to delivery lively. Then, it helps distance learning effectively when the trainers and trainees are in difference places.TeleconferencingIt is a method for simultaneously training individuals at the multiple sites. A teleconferencing network consists of a central broadcasting facility, a satellite service whose signals is delivered and transmitted to television projectors in meeting rooms, ballrooms, or corporate headquarter.Corporate classroomsCorpo rate classroom aims to tech employees skills and to accomplish this by using cognitive strategy. This method is often in big corporations. They intend to build their own universities and colleges to continue the further education for their employees.Equipment simulatorsIt is excellent way to bring realism to off-site training situation. In this method, simulators of the equipment are designed and set up away from the actual work situation. Advantages from the method are the time pressures for productivity are minimized, individualized feedback is increased and opportunities for repeated practice are provided.Computer-assisted instructionIn this method, trainees interact directly with the computers. The training is combined with learners exercises manuals, equipment stimulations, job aids The role of computer here involves administratering and the training programs to the trainees and testing their performance after learning. (Patrick et al, 1977). It could assess the progress of tra inees and provide a method to fit the trainees needsEach enterprise will use the differences training methods which are suitable to their situation within organization. In Vietnam situation, Webster and Tausig (1999) did a survey which showed that 93 percent of the surveyed SMEs provided in-house training for freshmen and off-the-job training. Most SMEs rely only on informal training due to budget constraints (Tran and Le, 1999). However, the process to have a good training and development program is not simpleProcess of Training and DevelopingAnalyzing the training and development needsIt is considered as the first step in the process of training and development.Boydell (1983) showed three levels of training needs within organizations which are organizational level, occupational level, and individual level.Organisation analysis looks at the organization as a whole. This relates to examining organization interface with the external environment, in which it operates, the acquisition of its state objectives, its human resources, and the inner climate. The purpose of organization analysis is to determine where the training activities should be conducted.Occupational analysis includes five steps in conducting task analysis. The five steps are (1) Obtaining a company job description (2) Identifying the tasks for which the training is designed (3) Identifying the knowledge (K), skills (S), and abilities (A) (4) develop course objectives (5) design the training program.In the individual analysis, organization identifies any shortfall in individuals knowledge, skill and attitudes required to perform their jobs.(Figure 2.7) P. Nick Blanchard, James W. Thacker (1999), Effective training systems, strategies, and practicesIn fact, when the results of employees performance do not satisfy and meet the requirement of job analyzed in occupational analysis. That means there are problems. In that case, organization needs to find a solution. In table below, it illustrates the wa y to approach how to examining performance problem of the employees(Figure 2.8) Robyn Peterson (1998), Training Needs AssessmentAnalyzing the training and development in this way has advantages and disadvantages. It helps the organization have an accurate overview of training and development needs within organization. Beside, it guarantees the links between the training and requirement of trainees. However, it takes time to analyze.During the process of analyzing, the thing could happen is the number of training needs is larger than can be met through current resources. So, it is necessary to prioritize the needs (J. Wilson, 2005)Training and development planThe result from the process of analyzing an organizations training needs is a training plan. This plan is constructed by the training department and is used to strategically plan what kinds of training will be conducted in the near future. (Wexley et al,1991).Moreover, during the process of analyzing, the thing could happen is t he number of training needs are larger than can be met through current resources. So, it is necessary to prioritize the needs. The content of a training plan should includes objects and objectives of training, theme of the training courses, the time of training courses, trainers, and training methods, the place of training class, and the cost of training (HRD in SMEs)When planning a training program, it is essential to establish an evaluating system for the result of program.The plan should be clear