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Human resource management at Electricity Corporation of Lao PDR - Theory, practice and solutions - 2


of the Lao PDR in the context of international economic integration;

(ii) Assess the current status of Human Resources Management of the General Corporation of Vietnam Oil and Gas Group, focusing on the period 2005-2010;

(iii) Proposing solutions to improve and develop the Human Resources Management of the DLL Corporation in the context of international economic integration, focusing on the period 2011-2015 and vision to 2020.

3.2 Research questions

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The topic focuses on the following research questions:

General question: How to improve and develop human resource management of DLL Corporation in the context of international integration?

Human resource management at Electricity Corporation of Lao PDR - Theory, practice and solutions - 2

The specific questions are as follows:

(i) What is the current status of Human Resources Management of the General Corporation of Vietnam Oil and Gas Group in the period 2005-2010? What are the limitations of this work? What are the causes of these limitations?

(ii) What issues does international integration and implementation of the Corporation's development strategy pose for human resource management?

(iii) What solutions are needed to improve and develop the Corporation's Human Resources Management in the period 2011-2015 and vision to 2020?

4. Research methods and data sources

- Research method:

In this study, the author plans to implement a number of specific research methods such as: analysis and synthesis method; comparative research method; case study method; desk study and field study - observation, interview, questionnaire survey and a number of specific methods of human resource management science.

To conduct this research, the author of the thesis conducted a survey to collect opinions from managers and employees of the DLL Corporation. The survey focused on collecting opinions, comments and assessments of officers and employees on human resource management, policies and activities of human resource management. The survey form is in the section


Thesis Appendix (including Lao version and Vietnamese translation).

The subjects of the survey were managers and employees working at departments/offices of the General Corporation Office, branches, factories and units of the DLL Corporation. The total number of questionnaires issued was 150, of which 50 were for officers and employees working at the General Corporation Office, 100 were for officers and employees working at departments/offices of branches, factories and units. The total number of collected questionnaires was 123, the number of valid questionnaires was 120, of which 40 were from the General Corporation Office, 80 were from branches, factories and units. The results of the survey were compiled and processed using Excel software. The results of the survey using questionnaires are presented in the Appendix of the Thesis.

- Data sources used in the study:

In this study, the author of the thesis exploits and uses secondary data sources and primary data sources. Secondary sources include reports of the Corporation, reports of the Government of the Lao PDR and related ministries/sectors, domestic and international scientific research works related to the topic that have been published.

Primary data sources include information and data collected through observations, interviews, and questionnaire surveys conducted by the thesis author during the period 2009-2010.

5. Contributions of the thesis

The thesis is expected to have the following specific contributions:

(i) Systematizing theories on human resource management in enterprises and applying them to enterprises of the Lao PDR in the context of international integration;

(ii) Assess the current status of human resource management of the General Corporation of DLL in the period of 2005-2010, clarify the achievements and limitations of the General Corporation's human resource management, and clarify the causes of these limitations;

(iii) Analyze and clarify the requirements of international economic integration on the Human Resources Management of the General Corporation of DLL;

(iv) Proposing practical solutions to improve and develop Human Resource Management, contributing to improving operational efficiency and successfully implementing the development strategy.


Development of the Corporation in the period 2011-2015 and vision 2020;

(v) The results of this study will be useful reference experiences for businesses in Laos; it is also a good reference document for officials working in State management, lecturers, students, graduate students and researchers.

6. Summary of related research works

QTNNL is a new science subject introduced in Lao PDR. Therefore, knowledge and experience in implementing the application of scientific contents of human resource management in enterprises in Laos are still limited. Research works on human resource management in enterprises are also few. Most of the research works on human resource management in enterprises are master's theses and bachelor's theses.

Typically, Siamphone Khotvong , Khamphet Tuttavong and Khamphouvi Lovanheouang (2007) conducted a study on human resource management of Lao textile enterprises. This study summarized and evaluated the human resource management model that Lao Textile Company has applied. This study examined and evaluated the recruitment and promotion standards of staff. In addition to professional standards, the study also clarified the standards of professional ethics; evaluated the training and development of human resources of the Company; evaluated the performance evaluation activities, labor remuneration for employees, etc. [43] . The study also pointed out the limitations in the Company's human resource management, especially in labor remuneration, training and development. The study proposed a number of solutions to improve the Company's human resource management. However, this study also has some limitations such as not linking human resource management activities with each other and with the implementation of the enterprise's development strategy, not linking the relationship between employees and the organization they work for, and not clearly seeing the impact of international integration on human resource management of the research enterprise.

Chanhthachak Vanysouvong, Soulith Phomsopha and Thavone Mykeopaseuth (2007) studied the topic of Human Resource Management of Lao Post Office, with


The research sample is the staff in the enterprise's payroll. [41]

This topic focuses on collecting feedback from business staff on human resource management policies. The research results show that the majority of staff have a good assessment of the business's human resource management policies. Specifically: the policies are rated above average. The highest ratings are for recruitment policy (X=3.62), labor remuneration policy (X=3.51), job performance assessment (X=3.38), and social welfare policy (X=3.23). Regarding remuneration policy, the majority of staff are very satisfied with the basic salary (X=2.81), and are not satisfied with the overtime remuneration policy (X=1.79) at the lowest level. With this assessment, the authors help business leaders have a more comprehensive and complete view of policies related to human resource management of the business.

Viengnakhone Somchanhmavong, Vanhmysay Nammavong and Souklykone Champa (2008) conducted a study on Human Resource Management for SANTIPHAP Roofing Company in Laos on staff selection and staff satisfaction with the implementation of labor remuneration. The results of the study showed the level of employee satisfaction with the Company's remuneration. However, this study only measured the level of employee satisfaction of the Company's departments/divisions with direct and indirect remuneration and did not see the factors affecting the level of employee satisfaction with labor remuneration. On the other hand, this study also did not put labor remuneration in relation to other contents of Human Resource Management in the Company. [42]

There are some master's theses of postgraduate students in the joint master's training program between the National Economics University (Vietnam) and the National University of Laos that have studied each content of Human Resource Management in enterprises such as research on motivating employees, training and developing human resources, organizing salaries in enterprises such as Lao Beer Company, Lao Telecommunications Company, Lao Postal Company...etc. However, there has not been any topic that has gone into comprehensive research and evaluation of Human Resource Management in enterprises.

There have been a number of special topics for Lao students studying at the University.


KTQD study on Human Resource Management in some enterprises in Laos. In general, these topics only stop at describing the current status of human resource management in some contents such as training and development, salary, labor use...etc., not comprehensively mentioning human resource management.

Thus, it can be seen that there have been a number of studies on Human Resource Management in enterprises in Lao PDR that have been published. New research works refer to each content of Human Resource Management activities, there is a lack of comprehensive research works on Human Resource Management in enterprises; at the same time, there has not been any research work that puts the Human Resource Management of enterprises in the context of international economic integration. It can be affirmed that, in Lao PDR, up to now, there has not been any scientific work that systematically and comprehensively studies Human Resource Management, nor has there been any comprehensive research work on Human Resource Management of DLL Corporation.

The biggest difference between this thesis and the works mentioned above is that this work systematizes and applies the theory of Human Resource Management into practice in Lao PDR, systematically and comprehensively studies the work of Human Resource Management at the DLL Corporation, puts the work of Human Resource Management in relation to the implementation of the development strategy of the Corporation and in the context of international economic integration. The case of the DLL Corporation can be considered as a typical case to apply to other enterprises in the Lao PDR.

7. Structure of the thesis

In addition to the Introduction, Conclusion, References, Appendices, the Thesis has a structure of 3 chapters, specifically as follows:

Chapter 1. Theoretical basis of Human resource management in enterprises

Chapter 2. Current status of Human resource management of Lao Electricity Corporation (2005-2010 period)

Chapter 3. Perfecting Human Resource Management of Lao Electricity Corporation in the Context of International Integration


CHAPTER 1

THEORETICAL BASIS OF HUMAN RESOURCE MANAGEMENT IN ENTERPRISES

1.1 Concept of human resource management

1.1.1 Concept of human resources and human resource management

- Concept of human resources

Organizations are made up of its human members or human resources. The term “human resources” only appeared in the 1980s, previously people often used the term “personnel”. Human resources imply people as the only resource that can increase in capacity.

According to the Human Resource Management Textbook of the National Economics University (2010), an organization's human resources include all employees working in that organization,

Human resources are human resources. Human resources are understood as the resources of each person, including both physical and mental strength. Physical strength refers to the health status of a person. Mental strength refers to the thinking ability, understanding, talent, aptitude, viewpoint, belief, personality, etc. of each person. Human physical strength is limited, but human mental strength is a treasure with much untapped potential. [35;16] .

Human resources are the most important assets of an organization because they are the only resource that creates value greater than its own value and helps create the unique strength of the organization. However, this is the most difficult resource to manage.

The demand for human resources is the demand for labor for different positions, jobs, and even occupations. The human resources of a business correspond to the number and structure of jobs of that business.

According to Associate Professor Dr. Bui Anh Tuan (Organizational Behavior Textbook, 2010), businesses often expect their employees to work effectively, be highly responsible and committed to the organization. On the contrary, employees expect from the business


jobs that match your expertise, abilities, good working conditions, fair treatment, and development opportunities.

Dr. Kanlaya Silavong believes that: human resources are generally understood to refer to people who are arranged into the organizational apparatus of an organization and are responsible for the work results and roles assigned by the agency. Human resources refer to people who have been assigned tasks or have jobs in an organization, and that position is used to distinguish them from people without positions. In short, human resources are made up of "people" who are installed in a specific job in the organizational apparatus [36;43] . Therefore, human resources include personnel at the leadership, middle and grassroots levels to contract workers.

According to Associate Professor, Dr. Bui Anh Tuan (Organizational Behavior Textbook, 2010), human resources include all employees that an organization can mobilize to perform its functions and tasks. With this point of view, an organization's human resources include not only the organization's regular employees but also employees outside the organization that the organization can mobilize to perform its functions and tasks.

The harmony between demand and human resources is expressed in two aspects: quantitative means solving the problem of staffing, trying to minimize the situation of surplus or shortage of labor and qualitative means solving the problem of labor capacity and motivation, trying to minimize the situation of professional qualifications not matching the job, harmonizing the labor motivation and labor needs of employees with the requirements that the job will pose in the future.

When talking about human resources, people often refer to the quantity and structure of human resources in relation to the structure of occupations and jobs of the organization. Or in other words, the suitability between the structure of human resources and the structure of occupations and jobs of the organization. Normally, the structure of human resources is considered from different perspectives such as structure by professional training level, structure by occupation, structure by seniority (work experience), structure by gender, etc.


In this study, the author uses the concept of human resources as follows: Human resources are all employees working for the enterprise to carry out the goals, functions and tasks of the enterprise. The number and structure of human resources of the enterprise must be appropriate to the structure of the profession and work of that enterprise.

- Concept of Human Resource Management

Human resource management activities in an organization are called human resource management or HRM.

In the past, when people were not considered the most important asset of an organization, human resource management (called personnel management ) was administrative human resource management; it was the activity of applying legal principles on salary, leave, holidays, retirement, etc. with the aim of managing individuals absolutely [61;12] . Personnel management was carried out without taking into account the needs of the organization as well as the needs of the staff.

The concept of Human Resource Management has emerged since the 1980s in developed countries, as a sign of an expanded role and also a recognition of a new management style: from rigid management that considers people as only a dependent executive force that needs to be exploited to the maximum in the short term with minimal costs, it has been shifting to a more flexible and agile management style, creating conditions for people to promote their proactive creativity, both exploiting their capacity and having a long-term investment plan so that costs are used optimally [23;8] .

In general, modern human resource management differs from previous human resource management in that its basic goal is not to manage individuals. Its basic goal is to find a way to achieve a satisfactory harmony between the needs of an organization and its human resources [54;27] .

Human Resource means workers who are prepared, honest and capable of fulfilling the goals of the organization or people within the organization who are capable of creating values ​​for the management system to achieve the set requirements. Therefore, the organization has the responsibility of managing human resources.

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