Factors Affecting Human Resource Management Effectiveness in Tan Phu Electricity Company, Vietnam: Masters of Business Administration

MEIHO UNIVERSITY

Graduate Institute of Business and Management

MASTERS THESIS

Factors Affecting Human Resource

Management Effectiveness in Tan Phu

Electricity Company, Vietnam

In partial fulfillment of the requirements for the degree of

Masters of Business Administration

Advisor: Dr. Kuo-Hung Tseng

Co-advisor: Dr. Pham Duy Hieu

Graduate Student: Bui Tien Duc

December, 2010

I

ACKNOWLEDGMENTS

First of all, I sincerely acknowledge the help of the Board of Directors of Ho Chi

Minh City University of Industry, Vietnam (HUI) and the Board of Directors of Meiho

University, Taiwan (MU) for giving me the opportunity to study and research in this

program.

I am taking this great pleasure to sincerely express my deep gratitude and sincere

thanks to Prof-Dr. Kuo-Hung Tseng, Dr. Pham Duy Hieu, Dr Wei-Shuo Lo, Dr Nguyen

Minh Tuan who gave me the fullest support for my fulfillment of this important

graduation exercise. During my participation in the course, their valuable comments and

remarkable advice helped me to finish the thesis.

I also want to send my deepest thanks to all the professors from both universities as

well as my colleagues who helped me to finish this research. The thesis can be fulfilled

with many helps and supports from many people and I always remember all the kindness.

Best wishes!

II

Factors Affecting Human Resource Management

Effectiveness in Tan Phu Electricity Company,

Vietnam

ABSTRACT

Managing human resource effectively is one of the things that all companies hope.

However, how to manage human resource effectively is not easy at all due to the fact that

not all companies can do, especially finding out factors affecting human resource

management (HRM) as well as identifying the impact degree of factors affecting HRM of

the company to propose practical solutions for HRM enhancement. From these above

ideas and for HRM enhancement in Tan Phu Electricity Company, the researcher chose

the topic “Factors Affecting Human Resource Management Effectiveness in Tan Phu

Electricity Company, Vietnam”. This research topic solved four targets, in particularly: (1)

identifying factors that might affect HRM effectiveness in Tan Phu Electricity Company

(2) identifying factors really affectingHRM effectiveness in Tan Phu Electricity Company;

(3) identifying the impact degree of factors affecting HRM effectiveness in Tan Phu

Electricity Company; (4) proposing solutions for HRM effectiveness enhancement in Tan

Phu Electricity Company. The group factors can affect the efficiency of HRM in Tan Phu

Electricity Company included: (1) Planning, recruiting, training and developing human

resource, (2) Regimes and policies on salaries, bonus, welfare and treatment and (3)

Working environment, (4) Professional development opportunities; (5) Motivation for

working; (6) Business Culture. To solve these four targets, the researcher carried out

basic research steps such as learning and analyzing theoretical basis; surveying ideas of

managers, employees of Tan Phu Electricity Company; finding out factors affecting the

effectiveness of HRM in Tan Phu Electricity Company; using software SPSS 14.0 to

analyze to find out factors really affecting effectiveness of HRM in Tan Phu Electricity

Company; giving out practical solutions for HRM effectiveness in Tan Phu Electricity

Company and so on. All of these problems will be presented in the following five

chapters.

Keywords: Human Resource, Human resource management, Effectiveness, Human

Resource Management Effectiveness, Tan Phu Electricity Company.

III

Factors Affecting Human Resource Management

Effectiveness in Tan Phu Electricity Company,

Vietnam

Contents

ACKNOWLEDGMENTS .........................................................................................................I

ABSTRACT..............................................................................................................................II

Contents .................................................................................................................................. III

Tables....................................................................................................................................... V

Figures..................................................................................................................................... VI

Chapter 1 Introduction .............................................................................................................. 1

1.1 Research Background and Motivation............................................................................ 1

1.2 Research Purpose............................................................................................................ 3

1.3 Research Scope and Limitations..................................................................................... 3

1.4 Definition of Terms ........................................................................................................ 3

Chapter 2 Literature Review..................................................................................................... 5

2.1 Effective Human Resource Management ....................................................................... 5

2.1.1 Some related concepts. ............................................................................................ 5

2.1.2 Model of human resource management effectiveness........................................... 10

2.2 The Factors Identified Effective Human Resource Management................................. 17

2.3 Factors Affecting the Effectiveness of Human Resource Management ....................... 19

2.3.1 Motivation stimulating people with effective human resource management. ....... 19

2.3.2 Business culture for effective human resource management................................. 24

Chapter 3 Research Methodology........................................................................................... 28

3.1 Research Framework .................................................................................................... 28

3.2 Research Process........................................................................................................... 31

3.3 Research Subject and Sample ....................................................................................... 33

3.4 Research Instrument ..................................................................................................... 33

3.5 Validity and Reliability................................................................................................. 36

3.6 Data Analysis................................................................................................................ 36

Chapter 4 Research Results and Analysis............................................................................... 37

4.1 Descriptive Statistics Analysis about General Information and Research Objects ...... 37

4.1.1 Descriptive statistics analysis about gender........................................................... 37

IV

4.1.2 Descriptive statistics analysis about working position. ......................................... 37

4.1.3 Descriptive statistics analysis about age, education level, working time. ............. 38

4.2 Analyze to Check Hypotheses Given by Linear Regression ........................................ 38

4.2.1 Test hypothesis H1................................................................................................. 39

4.2.2 Test hypothesis H2................................................................................................. 39

4.2.3 Test hypothesis H3................................................................................................. 40

4.2.4 Test hypothesis H4................................................................................................. 41

4.2.5 Test hypothesis H5................................................................................................. 41

4.2.6 Test hypothesis H6................................................................................................. 42

4.3 Influence Analysis of Factor Groups That Affect HRM by Linear Regression ........... 43

4.3.1 Analysis of factor groups that affect human resource management...................... 43

4.3.2 Analysis of factor groups that really affect HRM.................................................. 44

Chapter 5 Conclusion, Discussion and Implication................................................................ 46

5.1 Conclusions................................................................................................................... 46

5.2 Discussions ................................................................................................................... 47

5.2.1 Building suitable Business Culture........................................................................ 48

5.2.2 Building a reasonable and fair system of regimes and policies on salaries,

bonus, welfare and treatment. ............................................................................... 49

5.3 Implications .................................................................................................................. 51

References............................................................................................................................... 52

Appendix 1 – English Questionnaire ...................................................................................... 56

Appendix 2 – Vietnamese Questionnaire ............................................................................... 59

Appendix 3 –Basis for determining sample size..................................................................... 62