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THAI NGUYEN UNIVERSITY SOUTHERN LUZON STATE UNIVERSITY

DOCTOR OF BUSINESS ADMINISTRATION DISSERTATION

MANAGERIAL COMPETENCIES

OF MIDDLE-LEVEL MANAGERS AT

VIGLACERA CORPORATION

TA PHUNG PHUC (LUCKY STAR)

SUPERVISOR:

Dr. Cecilia N. Gascon

HANOI - 2013

ii

ACKNOWLEDGEMENT

This thesis is completed to fulfill the requirement from the Doctor of Business

Administration (DBA) program, an international program between Thai Nguyen

University (TNU) and Southern Luzon State University (SLSU).

I would like to express my sincere thanks to Management Board of the TNU and the

SLSU, who have been organizing such interesting programs. The improvement in our

competencies will bring much more values to our work and social life.

I would like to express my sincere thanks to all lecturers of SLSU, TNU and

associates, who have equipped me with a lot of valuable knowledge and skills for my

life. Especially I would like to express my exclusive thanks to my supervisor – Dr.

Cecilia N. Gascon. Despite very busy with management and professional work, she

has given me lots of valuable guidance and support during my job on completing this

thesis.

I also would like to express my thanks to Board of Management of Viglacera

Corporation, who has encouraged me to complete the thesis and provide me a lot of

support during the research. I would like to express my thanks to all middle managers

and all of my colleagues in Viglacera for helping me with useful data for the thesis./.

iii

COPYRIGHT COMMITMENT

I hereby declares that this is my own research. Also, all the information used in my

research is trustful and totally reliable. The competency of Viglacera middle level

managers yet to be studied in deep and at overall scale, furthermore their

competencies have never been benchmarked against their job requirements.

In late 2011, The Executive board decided to have a HR consultant to review

Viglacera’ workforce and provide recommendations for improvement. However, the

report of the consultant just has been considered as a 3rd party reference, Viglacera

must work on the project itself and create a strategic blueprint for HR development

for the next 5 years at least. To retain its leading position in the market, it is a “do or

die” project for Viglacera and this research, hopefully shall contribute a big picture

overview of Viglacera workforce and recommend a good solution for Viglacera to

achieve the target of the project.

Having that idea in mind the author strongly believes that this research is the first one

in Vietnam to construct the set of competency standards for Vietnam SOEs and it is

also the first study to recommend its applications in a real situation. Once again I

committed that all findings and conclusions of my research are not copied of any

other work or paper. The whole or partly of this research never have been published in

any kind of public media.

The Author

iv

TABLE OF CONTENTS

ACKNOWLEDGEMENT ...........................................................................................ii

COPYRIGHT COMMITMENT................................................................................ iii

TABLE OF CONTENTS............................................................................................iv

LIST OF TABLES....................................................................................................viii

LIST OF CHARTS...................................................................................................... x

ABSTRACT................................................................................................................xi

CHAPTER 1. INTRODUCTION............................................................................1

BACKGROUND AND RATIONALE OF THE RESEARCH..................................1

STATEMENT OF THE PROBLEM..........................................................................3

HYPOTHESES..........................................................................................................7

SIGNIFICANCE OF THE RESEARCH....................................................................8

SCOPE OF THE RESEARCH...................................................................................9

DEFINITION OF TERMS.........................................................................................9

CHAPTER 2. LITERATURE REVIEW .............................................................11

2.1. COMPETENCY – OVERVIEW .................................................................11

2.1.1. Competency and competency – base methodology.............................11

2.1.2. Competency component.......................................................................15

2.1.3. Competency analysis process ..............................................................19

2.2. MANAGERIAL COMPETENCIES............................................................20

2.2.1. Functions of management....................................................................20

2.2.2. Managerial competencies.....................................................................25

CHAPTER 3. RESEARCH METHODOLOGY .................................................33

3.1. RESEARCH METHODOLOGY.................................................................33

v

3.2. STRUCTURE OF THE RESEARCH..........................................................40

CHAPTER 4. PRESENTATION, ANALYSIS AND INTERPRETATION OF

DATA…………. .........................................................................................................42

4.1. REQUIRED MANAGERIAL COMPETENCIES FOR MIDDLE-LEVEL

MANAGERS AT VIGLACERA.............................................................................42

4.1.1. Business awareness..............................................................................43

4.1.2. Leadership............................................................................................43

4.1.3. Setting priorities...................................................................................44

4.1.4. Managing the team...............................................................................44

4.1.5. Result orientation.................................................................................45

4.1.6. Change orientation...............................................................................46

4.1.7. Team working ......................................................................................46

4.1.8. Ability to influence ..............................................................................47

4.1.9. Developing others................................................................................47

4.1.10. Face to face communication ................................................................48

4.1.11. Interpersonal skill.................................................................................48

4.1.12. Motivation skill....................................................................................49

4.2. CURRENT MANAGERIAL COMPETENCIES OF MIDDLE-LEVEL

MANAGERS AT VIGLACERA.............................................................................51

4.2.1. Business awareness..............................................................................51

4.2.2. Leadership............................................................................................52

4.2.3. Setting priorities...................................................................................52

4.2.4. Managing the team...............................................................................53

4.2.5. Result orientation.................................................................................54

4.2.6. Change orientation...............................................................................55

vi

4.2.7. Team working ......................................................................................56

4.2.8. Ability to influence ..............................................................................56

4.2.9. Developing others................................................................................57

4.2.10. Face to face communication ................................................................58

4.2.11. Interpersonal skill.................................................................................59

4.2.12. Motivation skill....................................................................................60

CHAPTER 5. SOLUTIONS TO BRIDGE THE GAPS BETWEEN

REQUIRED AND CURRENT MANAGERIAL COMPETENCIES OF

MIDDLE MANAGERS.............................................................................................63

5.1. BASIS FOR THE SOLUTIONS ..................................................................63

5.1.1. Viglacera direction to develop human resource...................................63

5.1.2. Reasoning the gaps between required and current competencies of.......

middle managers..............................................................................................66

5.2. SOLUTIONS TO BRIDGE THE GAPS BETWEEN REQUIRED AND

CURRENT COMPETENCIES OF MIDDLE MANAGERS ..................................67

5.2.1. Training solutions ................................................................................67

5.2.2. Non-training solutions .........................................................................73

CONCLUSION.........................................................................................................77

REFERENCES.........................................................................................................79

APPENDIX 1 – QUESTIONNAIR FORM FOR IDENTIFYING REQUIREMENT

ON MANAGERIAL COMPETENCIES OF MIDDLE MANAGERS........................85

APPENDIX 2 – QUESTIONNAIR FORM FOR ASSESSING CURRENT

MANAGERIAL COMPETENCIES OF MIDDLE MANAGERS ..............................88

APPENDIX 3 – JOB DESCRIPTION SAMPLES ....................................................91

CURRICULUM VITAE..........................................................................................107

vii

ABREVIATIONS

AQL Acceptable Quality Level

BOM Board of Management

BSC Balanced Score Card

CEO Chief Executive Officer

CORP Corporate

DEPT. Department

EQ Emotional Quotient

ERP Enterprise Resource Planning

FM Finance Manager

HR Human Resource

HRM Human Resource Management

JD Job Description

R&D Research and Development

SLSU

SOE

Southern Luzon State University

State Owned Enterprise

SWOT Strengths Weaknesses Opportunities Threats

TNA Training Needs Analysis

TNU Thai Nguyen University

VIGLACERA Vietnam Glass and Ceramic Corporation

viii

LIST OF TABLES

Table 1-1: Opportunities and Threats in HRM of Viglacera ......................................6

Table 1-2: Strengths and Weaknesses in HRM of Viglacera......................................6

Table 4-1: required “business awareness” for middle managers.............................43

Table 4-2: required “leadership” for middle managers............................................44

Table 4-3: required “setting priorities” for middle managers...................................44

Table 4-4: required “managing the team” for middle managers .............................45

Table 4-5: required “result orientation” for middle managers.................................45

Table 4-6: required “change orientation” for middle managers..............................46

Table 4-7: required “team working” for middle managers.......................................46

Table 4-8: required “ability to influence” for middle managers ..............................47

Table 4-9: required “developing others” for middle managers................................48

Table 4-10: required “face to face communication” for middle managers..............48

Table 4-11: required “interpersonal skill” for middle managers .............................49

Table 4-12: required “motivation skill” for middle managers..................................49

Table 4-13: current “business awareness” of middle managers...............................51

Table 4-14: current “leadership” of middle managers..............................................52

Table 4-15: current “setting priorities” of middle managers....................................53

Table 4-16: current “managing the team” of middle managers...............................54

Table 4-17: current “result orientation” of middle managers..................................55

Table 4-18: current “change orientation” of middle managers ...............................55

Table 4-19: current “team working” of middle managers........................................56

Table 4-20: current “ability to influence” of middle managers................................57

Table 4-21: Table 4.21: current “developing others” of middle managers..............58

Table 4-22: current “face to face communication” of middle managers.................59

ix

Table 4-23: current “interpersonal skill” of middle managers.................................59

Table 4-24: current “motivation skill” of middle managers.....................................60

Table 5-1: Training courses proposed for middle managers ....................................68

Table 5-2: Solutions / Recommendations Matrix ......................................................75

x

LIST OF CHARTS

Chart 1.1: Viglacera Competitive Advantages.............................................................5

Chart 2.1: The iceberg model .....................................................................................12

Chart 2.2: Competency analysis model ......................................................................20

Chart 2.3: Circle of management...............................................................................22

Chart 3.1: Work frame of the research:.....................................................................34

Chart 4.1: Required competencies for middle managers ..........................................50

Chart 4.2: Current competencies of middle managers vs. requirements..................61

Chart 4.3: Viglacera Competency Needs Analysis ....................................................61

Chart 5.1: Viglacera business development strategy for 2010-2020.........................64

Chart 5.2: Viglacera Corporate Core Values.............................................................65

xi

ABSTRACT

Like most businesses, middle-level managers at Viglacera are very important, which

help to achieve strategic objectives. Together with contributing valuable ideas to

company’s strategies, middle managers lead the functional team to implement

Corporation’s plan to real life. Therefore, managerial competencies are vitally

important to middle managers.

This research focuses on the gaps between current managerial competencies of

middle-level managers at Viglacera and the requirement from the top managers of the

corporation. It then goes further to propose solutions to bridge those gaps.

According to theories, managerial competencies are skills, knowledge, self- concept,

traits and motives of people in management aspect. At Viglacera, they are represented

by the 12 core competencies, which include: Business awareness, Leadership, Setting

priorities, Managing the team, Result orientation, Change orientation, Team working,

Ability to influence, Developing others, Face to face communication, Interpersonal

skill, Motivation skill.

By doing survey together with in-depth interview, this research will identify the gaps

between the requirements from top managers with the current managerial

competencies of middle managers at Viglacera.

The research, then would propose suitable solutions, which help to bridge those gaps.

Hope the research result can contribute to the HR strategy of Viglacera.

1

CHAPTER 1. INTRODUCTION

BACKGROUND OF THE RESEARCH

Established since 1974, Viglacera is a State Owned Enterprise (SOE) operating in

construction industry under management of Ministry of Construction. Viglacera is in

the stage of organizational reengineering and privatizing to cope with the economy

integration trend in the whole nation. Changing to joint-stock from wholly state

owned enterprises, the Corporation will be challenged by lots of difficulties:

competition, social and political changes, inefficient working system and last but not

least the quality of the workforce. With over 15,000 emplyees, Viglacera is one of the

biggest SOEs in Vietnam, following is the organizational structure of the Corporation:

Source: Viglacera HR department

In the chart above, Top Managers are:

 Board of Directors: President, CEO, Union Chairman

 Control Board: 3 members reporting to President

Board of Director

Board of

Management

Control Board

Production Trading Finance & Planning Land

Admin IT Support

Legal &

Corporate Affairs HR

Project Development

Economic

Accounting

Internal Control

Branding

Import Export

Production Management

General Affairs

Project Planning

Board of Director

Board of

Management

Control Board

Production Trading Finance & Planning Land

Admin IT Support

Legal &

Corporate Affairs HR

Project Development

Economic

Accounting

Internal Control

Branding

Import Export

Production Management

General Affairs

Project Planning

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