Organization Implementing Solution Group on Management Tools

Communicate and exchange information promptly between departments within the company, reduce travel time and costs, organize meetings in person, convey documents, papers, etc. If financial resources are abundant, listed construction joint stock companies can equip themselves with the necessary communication equipment to organize online meetings, especially with managers at construction sites far from the headquarters.

Currently, all listed construction joint stock companies have their own websites, but they are mainly used for promotional purposes. Therefore, in the future, it is necessary to fully exploit the company's website to become an effective tool for communication, e-commerce transactions and internal management. Large corporations should upgrade their websites to electronic information portals to increase the effectiveness of information management.

4.3.3.2 Organization of implementation of solution groups on management means

The Organization - Administration Department coordinates with the Materials - Vehicles and Machinery Department to be responsible for re-counting all existing computers of the company according to specific technical specifications. Based on the work needs of each department to make a reasonable supplement plan, focusing on the computer system in the enterprise/group, team and warehouse department.

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Based on the company's financial capacity, the Accounting Department staff proposes a reasonable funding plan, balanced with the company's other investment plans. If signing a package contract (hardware, software, technology solutions) with major suppliers such as FPT, IBM, HP, Apple, etc., a listed construction joint stock company can enjoy preferential prices, while ensuring the synchronization and compatibility of equipment, and convenience in sharing common resources. However, specialized software should be ordered specifically, suitable for the characteristics of the construction industry, requiring additional features to support investment decision making, determining optimal budget, budget fluctuation range, optimal order quantity, order point, etc.

Establish a group, team/team under the Materials - Motorcycles department to control information updated on the website and electronic database, and resolve incidents related to the information management system (computer failure, device connection errors, software infected with viruses, data leaks, etc.).

The entire plan above can be implemented through many investment stages suitable to the needs of use and budget. However, equipping computers for warehouse, yard, and construction sites (at least 1 computer for general management staff) and using specialized management software at the company's headquarters must be implemented immediately.

4.3.4 Solution group on management organization

If properly organized, asset management activities will take place smoothly, rhythmically, and smoothly. However, in listed construction joint stock companies, the division of work between functional departments is still overlapping, overloaded, and procedures are complicated, reducing management efficiency and competitiveness. Board members often hold concurrent positions in the company's management, distorting the relationship between owners and managers, hindering the implementation of the goal of maximizing the value of the owner's assets. Therefore, in the long term, it is necessary to change the organizational structure to suit market economic conditions.

4.3.4.1 Separation of ownership and management of the company

In the history of the development of the market economy, the joint stock company model has always been highly valued over other types due to the separation of ownership from managers. Accordingly, ownership can be easily transferred to new shareholders in the secondary stock market. The existence of a joint stock company is not affected by changes in small owners (holding less than 5% of the company's shares) and the dismissal of the executive board. Managers in a joint stock company do not have the same controlling power as in the previous state-owned company model. They are forced to make corporate governance decisions in the direction that best benefits shareholders to avoid being fired. These advantages help joint stock companies maximize their ability to expand their scale and innovate their operations flexibly.

However, in reality, most listed construction joint stock companies equitized from state-owned enterprises (accounting for 78% of the number of listed construction joint stock companies today) cannot take advantage of these advantages when implementing closed equitization and appointing members of the board of directors who are also directors/deputy directors of the company (in 15 interviewed companies, there is a situation of

This makes it difficult to properly implement the regulations on the obligations and powers of the director of a joint stock company. According to Article 116 of the Enterprise Law, "the director of a joint stock company is the person who runs the daily business of the company, is supervised by the board of directors and is responsible to the board of directors and before the law for the performance of assigned tasks". At the same time, it can lead to a situation where members of the board of directors and major shareholders take advantage of this advantage to harm small shareholders, affecting the sustainable development of the enterprise. In particular, in some units such as Lilama 5 Joint Stock Company, Song Da 25, Song Da 909, Song Da 11... members of the Board of Supervisors concurrently hold management positions (from deputy head of functional department or higher), seriously affecting the ability to " Check the rationality, legality, honesty and level of prudence in management and operation of business activities, in organizing accounting work, statistics and preparing financial reports " (Article 123, Law on Enterprises).

Therefore, in the coming time, it is necessary to seriously implement the recommendations of the State Securities Commission on the governance regulations of listed joint stock companies (Decision No. 12/2007/QD-BTC), separating ownership and management rights of enterprises. Recruiting and appointing individuals who are not members of the board of directors to executive positions of enterprises. Dismissing management positions of members of the board of supervisors or transferring replacement staff.

Although there will be many disruptions that will affect the operations of listed construction joint stock companies, this is a good opportunity to recruit staff with real management capacity to participate in business operations instead of appointing staff based on seniority, relationships or efforts at the company. In addition to applying good remuneration (in terms of income, working environment, learning and capacity development opportunities, etc.) to attract talent, the board of directors needs to set specific goals to be achieved in each business period, fiscal year and appropriate forms of rewards/penalties if targets are exceeded or tasks are not completed. Thus, managers will be fully aware of their rights and obligations in

In the process of running a business, every decision made is aimed at the goal.

maximize shareholder wealth.

4.3.4.2 Adjust the management system appropriately

Currently, the management apparatus at listed construction joint stock companies usually includes a board of directors directly directing 4 functional departments: Organization - Administration, Finance - Accounting, Economics - Planning - Engineering, Materials - Vehicles, machinery. In which, the staff of the Economics - Planning - Engineering department must take on many tasks, which is very stressful. Therefore, in reality, the main tasks that are focused on are: Preparing and appraising project estimates and finalizing accounts; Completing bidding documents and internal contracts; Managing construction progress; Managing construction quality; Planning and market research tasks have not been given due attention.

Currently, every year, the board of directors and department heads determine the common goals of the entire company (mainly based on past achievements and the ambitions of the board of directors). From there, targets are assigned to each department, which serves as the basis for making specific action plans. Based on that plan, the Head of the Economic - Planning - Technical Department synthesizes and balances to build an annual plan for the entire company. However, due to the lack of Strategy, vision, and long-term planning with orientation, built in accordance with the needs and characteristics of the market, annual planning does not ensure feasibility, consistency, and stability, mainly to solve new needs arising in the short term. Asset management is also carried out passively, based on actual conditions at the time of decision making, not consistent with a pre-set direction. Meanwhile, theory and practice have proven that long-term goals of capital mobilization, market share expansion, capacity increase and construction opportunities... will directly affect asset investment plans (investment timing, structure, scale of each type of asset); the possibility of budget deficit or surplus and appropriate handling decisions; the allowable limit of debt; the ability to store raw materials; the timing and scale of production technology innovation...

Therefore, in the coming time, listed construction joint stock companies need to establish (or separate) a planning department, assigning additional functions of market research and marketing. Market research results will be used as a basis for forecasting, orientation, planning and implementing the company's marketing activities.

In particular, issues that need to be researched include:

- Construction market and competitors: construction investment needs of the State, enterprises of all economic sectors, and residents; Types of construction works along with types of construction materials and structures applied in the future; Investor preferences; Competitiveness of current and potential competitors.

- Production materials for the construction process: Sources of construction materials (types, supply/demand, selling prices, ability to purchase or self-produce, etc.); Sources of construction equipment and machinery (technology, types, supply/demand, selling prices, expected ability to purchase or rent, etc.); Ability to link with local construction forces.

- Labor market in the construction sector: the supply capacity of the labor market in terms of quantity, worker level, average salary...; Ability to connect with local labor forces.

- Sources of construction investment capital: scale, interest rates, conditions for capital mobilization from various sources such as state budget, non-refundable aid capital, foreign direct investment capital, credit institutions, domestic and foreign enterprises (loans or investment cooperation).

Based on this information, listed construction joint stock companies can build a consistent, practical strategy, vision, and short-term and long-term plans that guide all business management decisions. At the same time, build a brand and choose appropriate advertising methods to increase investors' awareness of the business.

4.3.4.3 Enhance autonomy and creativity of cadres at all levels

In the past, due to the rigid management, the fear of innovation and the reluctance to take risks of the leaders of many listed construction joint stock companies, the options chosen in asset management are still traditional and available, implemented in a "self-sufficient" manner (saving and borrowing from banks to regulate the budget, ordering raw materials and machinery from traditional suppliers, self-collecting debts by notifying, urging, etc.). Meanwhile, the market economy increasingly provides many convenient services such as investment trust/cooperation, treasury management, debt collection, machinery leasing, etc. At the same time, the level of competition in the construction market is increasing strongly when foreign contractors have deeper and wider opportunities, requiring listed construction joint stock companies to boldly innovate, quickly seize opportunities, avoid falling behind and being acquired. To achieve this requirement, in addition to adjusting the management apparatus appropriately, it is necessary to enhance the autonomy and creativity of cadres at all levels.

Specifically, clearly decentralize authority and tasks between management and operations departments, without holding multiple positions. Give decision-making power and personal responsibility to managers corresponding to assigned tasks. Prioritize work efficiency over the way results are achieved. However, it is also necessary to establish certain frameworks/limits and implement strict internal controls to prevent excessive autonomy or abuse of autonomy for the benefit of a group of staff.

In addition, it is necessary to build an incentive mechanism, creating conditions for officers and employees to actively apply advanced techniques to solve work, propose ideas and initiatives to improve asset management efficiency. These efforts must be publicly recognized and deserved in both material and spiritual aspects.

4.3.4.4 Practice quality management according to ISO 9000:2000 standards

ISO 9000 is a set of standards on Quality Management issued by the International Organization for Standardization (ISO) since 1987, revised in 2000 (to ISO 9000: 2000), including management principles and basic requirements for the system.

The quality management system of the enterprise to ensure that the products provided by the enterprise always satisfy customer needs and comply with the law. This is also the basis for assessing the enterprise's ability to maintain and continuously improve, enhance capacity and operational efficiency.

The standards in the ISO 9000:2000 series are divided into groups: ISO 9000 (explanation of terms and definitions), ISO 9001 (regulations on quality management systems and requirements to be met), ISO 9004 (guidelines for improving performance), ISO 19011 (guidelines for assessing management systems).

The content of the ISO 9000 standard set is built on 8 principles:

- Aiming to satisfy customer requirements and expectations.

- Promote the role of leaders in determining goals, measures, instructions and creating a favorable working environment.

- Encourage the participation of all employees to realize the common goals of the enterprise.

- Using a process approach: every job identifies the necessary inputs and the outputs that must be achieved.

- Apply systematic, closed-loop management methods, including Planning - Implementation - Evaluation.

- Continuously improve product/service production processes towards increased efficiency.

- Managerial decisions are made based on comprehensive analysis of information about products and production processes.

- Ensure mutually beneficial cooperation with all parties involved.

From the above principles, the International Organization for Quality Standards has established appropriate standards and regulations. If businesses fully comply, they will gain a number of benefits, specifically:

- Positively improve sales and business reputation by better satisfying all customer needs.

- Reduce production and business costs because all processes are well planned and effectively implemented.

- Enhance trust and internal solidarity through clear goals, effective control processes and information transparency.

- Employees are better trained and committed to the business.

- Encourage open approach to quality issues, enhance creativity and innovative thinking in the operation process.

- Create a basis for prestigious organizations in the world to certify the quality of the enterprise's products, thereby overcoming barriers in international trade, increasing added value for the enterprise.

Thus, the practice of quality management according to ISO 9000: 2000 standards brings many practical benefits to enterprises (including improving the efficiency of asset management), while customers and society are also better satisfied. This is especially important in the construction sector, where the quality of construction works has a long-term impact on working conditions, living conditions, health, and even the lives of users. However, by the end of 2010, no listed construction joint stock company had been granted ISO 9000: 2000 quality management certification (due to not meeting the standards or not completing the procedures to be recognized), therefore, assets at the enterprise have not been effectively managed, affecting the competitiveness of the enterprise in the domestic and international markets. Therefore, in the long term, it is necessary to have a plan to apply ISO 9000:2000 standard and complete the necessary procedures to be granted certification to meet this standard.

4.3.4.5 Organization of implementation of solutions on management organization

All organizational and management solutions are assigned to the Organization and Administration Department for implementation, under the direction of the Board of Directors and the supervision of the Board of Directors of the listed construction joint stock company.

For recruitment activities for business executive or staff positions

The Planning Department should carefully consider the specific standards to be achieved (in terms of

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