Some Issues on Human Resource Development of Commercial Banks

In terms of space, the topic is limited to Hanoi, Hai Phong and neighboring provinces. This is the core area of the Northern Consumer Credit Block as well as the whole country.

In terms of time, the topic uses updated statistics from 2008 to present to conduct analysis. Meanwhile, the orientations and solutions will mainly serve the development period from now to 2020.

5. Research methods

The thesis uses a combination of many research methods such as descriptive statistics; analytical statistics; synthesis, analysis, comparison; expert method, and especially sociological investigation method.

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To ensure effective information sources for analysis and evaluation, the study collected data from many different sources. Specifically:

Secondary sources of information : Theoretical issues and practical experiences are compiled from textbooks, monographs, specialized journals and other official documents. The compiled data and statistics are published by official agencies, organizations and reputable scholars and are widely recognized.

Primary source of information : The study conducted the construction of a questionnaire and conducted a sample survey on 100 employees working in the Consumer Credit Division, including credit consultants, sales staff, appraisal staff, debt collection staff and office staff. In addition, during the research process, the author consulted experts, who are human resource management lecturers with extensive experience in consulting on human resource development for organizations, especially banking organizations.

6. Meaning and contributions of the thesis

As an independent scientific research topic, the thesis is expected to have the following contributions:

In terms of theory, the thesis contributes to generalizing and developing theoretical contents on human resource development in general, as well as human resource development of commercial banks in particular.

In terms of practice, the thesis researches, studies and synthesizes valuable practical experiences both domestically and internationally related to human resource development of commercial banks. Through survey and analysis, the thesis points out the current status of advantages, disadvantages and key causes in human resource development at the Consumer Credit Division - Vietnam Prosperity Bank. From there, proposes scientific and feasible solutions for human resource development, contributing to the successful implementation of the development strategies of Vietnam Prosperity Bank.

The thesis is a valuable reference document for managers of commercial banks; especially managers in the Consumer Credit Division.

– Vietnam Prosperity Bank.

7. Structure of the thesis

In addition to the introduction, conclusion, list of references, appendices and references; the main content of the thesis includes three chapters:

Chapter 1: Some issues on human resource development of commercial banks

Chapter 2: Current status of human resource development at Consumer Credit Division - Vietnam Prosperity Bank

Chapter 3: Perspectives and solutions for human resource development in the Block

Consumer credit – Vietnam Prosperity Bank.

CHAPTER 1: SOME ISSUES ON HUMAN RESOURCE DEVELOPMENT OF COMMERCIAL BANKS

1.1. Overview of human resources

1.1.1. Concept of human resources

Human resources or human capital is a concept in which people are considered as a resource for development. However, according to each individual approach, studies refer to human resources with different angles and perspectives.

According to the United Nations definition: "Human resources are the skills, knowledge and abilities of all actual or potential human life for socio-economic development in a community" [9, p.2].

According to the social labor theory: "Human resources include the entire population with the ability to work" [29, p.7]. Or: "Human resources are understood in a narrower sense, including the working-age population with the ability to work" [29, p.7,8].

According to the Human Resource Economics textbook (2008) of the National Economics University: "Human resources are human resources capable of creating material and spiritual wealth for society, expressed in a certain quantity and quality at a certain time" [3, p.12].

The above concepts partly reflect the very broad connotation of the concept of “Human Resources”. In particular, the aspect of ‘creativity’ should be seen as a unique characteristic and only found in human resources. That is the key point that shows the unlimited potential of human resources; as well as, convinces us that investing in human resource development is the most correct direction (especially in the context of other resources being difficult or increasingly depleted as at present).

However, the above concepts mainly focus on describing human resources within the limits of society or a community. Meanwhile, the thesis needs to focus more on the issue of human resources in an organization or enterprise.

According to the definition of Professor Bui Van Nhon: "Enterprise human resources are the labor force of each enterprise, the number of people on the enterprise's list, paid by the enterprise" [21, p.72]. However, with the Labor Law (2013) officially allowing 'labor outsourcing' activities; there will be a part of the labor force working at the enterprise, a resource that directly contributes to the development of the enterprise, but is not on the list that the enterprise directly manages and pays wages. Therefore, in the new situation, the above definition needs more argumentation to increase its persuasiveness.

According to the doctoral thesis (2009) of Dr. Le Thi My Linh: "The human resources of an organization include all employees working in that organization with different health and qualifications, they can form a force to successfully complete the organization's goals if they are properly motivated and encouraged" [20, p.11]. This can be considered a relatively complete and comprehensive definition. However, this concept has not yet clearly stated the outstanding advantages of human resources compared to other resources in the enterprise.

Therefore, in this thesis, the concept of human resources is understood as

after:

An organization's human resources are all the workers working in it.

within that organization according to a defined structure, with unlimited labor capacity and creative potential, managed and developed by the organization to promote the role of core resources in the process of implementing the organization's mission.

1.1.2. Concept of human resources of commercial banks

1.1.2.1. Concept of bank, commercial bank

There are many different concepts of banks as well as commercial banks. However, the differences are mainly in the way of expression, but the essence is similar. In this thesis, the above terms are understood according to the provisions of Article 4 of the Law on Credit Institutions (2010), specifically as follows:

A bank is a type of credit institution that can perform all banking activities according to the provisions of the Law on Credit Institutions. According to the nature and objectives of operations, types of banks include commercial banks, policy banks, and cooperative banks.

Commercial bank is a type of bank that carries out all banking activities and other business activities as prescribed by the Law on Credit Institutions with the aim of making profit.

It can be understood that a commercial bank is an enterprise operating in the main field of currency trading. It is considered a special economic organization with a high level of risk, along with a chain effect on the health of many other enterprises as well as the health of the economy. Therefore, commercial banking activities are always subject to the strictest supervision from management institutions. At the same time, it itself also requires the most effective and continuously improved management organization. Therefore, the human resources of commercial banks need to meet certain standards.

1.1.2.2. Concept of human resources of commercial banks

Mechanically fitting the term 'commercial bank' into the above concept of 'human resources', we have an understanding of 'human resources of commercial banks' as follows:

The human resources of a commercial bank are all employees.

work in that bank according to a certain structure, with the ability to work

and unlimited creative potential, managed and developed by the organization to promote

promote the role of core resources in the implementation of banking missions.

However, as analyzed, commercial banks are not classified as pure enterprises. They are organizations that are responsible for huge financial resources in the economy. To operate effectively, the human resources of commercial banks must ensure specific factors. In other words, a better definition is needed for 'human resources of commercial banks' instead of the simple understanding as above.

According to the industry-level scientific research on "Developing high-quality human resources for the Vietnamese commercial banking system" (2011) led by Associate Professor, Dr. To Ngoc Hung:

“High-quality human resources for commercial banks are understood as the workforce that will work at commercial banks to meet the set goals of commercial banks in terms of qualifications (knowledge - skills) / position / field / work experience at a high - complex level, suitable for the development requirements of commercial banks, society, and the economy in each period” [18, p.2].

This is the concept of high-quality human resources for the commercial banking system. But it suggests that the human resources of commercial banks are based on high-quality human resources. And not only focusing on the working force, but also the working force. That means a longer-term vision of human resources is needed to ensure good succession and continuous operation of the bank. Because normal businesses can temporarily suspend operations, but it is rare to see a commercial bank allowed to do so.

On the other hand, because commercial banks are relatively influential organizations

large in society and economy. Therefore, human resources of commercial banks

Commerce not only obeys the mission of the organization, but also needs to be responsible for the national interest, knowing how to strive for the common prosperity of society.

Combining the contents, the thesis presents the concept as follows:

The human resources of a commercial bank are all employees working in that bank according to a succession structure; with the core being a team of highly qualified, professional, creative and ethical staff; organized, managed and developed to perform well the role of the subject in the process of implementing the commercial bank's strategy, meeting the requirements of the economy in each stage.

1.1.3. The role of human resources in commercial banks

The important role of human resources in commercial banks is demonstrated through the following contents:

Firstly, human resources are the factor directly involved in the strategic planning process; establishing plans, programs, projects; building business processes, codes of conduct; and are the foundation for guiding all activities in commercial banks.

Second, human resources are the subject of system operation: controlling technology infrastructure; implementing plans according to established procedures; working with state agencies, partners and customers; interacting with colleagues; controlling cash flows and other resources under the management responsibility of commercial banks.

Third, human resources are the source of new ideas and initiatives that help to increasingly improve business processes, thereby improving system efficiency, saving costs, and minimizing risks for commercial banks.

Fourth, human resources are the energy to gradually crystallize corporate cultural values; build and preserve the brand and identity of commercial banks.

Fifth, human resources with the ability to self-mobilize combined with the organization's human resource development policy, constantly changing to adapt to new environments and new technologies; especially, through that, nurturing excellent individuals, leading experts in the financial field; are the successors for the sustainable development of commercial banks.

It can be seen that, just like in most other fields and professions of life, human resources are both the driving force and the goal for development in commercial banks.

1.1.4. Characteristics of human resources of commercial banks

Human resources of commercial banks, first of all, have common characteristics of Vietnamese human resources, typically:

The physical condition of human resources is generally limited. The indicators of height, weight, strength, and endurance are quite low compared to those of developed countries. In the context of global competition, especially in fields requiring high work intensity such as commercial banking, human resources will be required to improve more, to gradually approach international health standards.

Human resources, in return, have many strengths such as intelligence, dexterity, and meticulousness. The population structure by age is at an ideal stage. In addition, there is a good learning ability and a tradition of overcoming difficulties to rise up.

Human resources are still weak in foreign languages, becoming one of the main barriers in the integration process for development.

Human resources are still lacking in terms of skills, from communication skills, working skills to management skills, leadership skills. This existence reduces the performance of the organization, as well as significantly affects the success of individuals in the organization.

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