Human resource management in some countriesand lessons for vietnam in the context of global upheaval
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- HUMAN RESOURCE MANAGEMENT IN SOME COUNTRIESAND LESSONS FOR VIETNAM IN THE CONTEXT OF GLOBAL UPHEAVAL Master. Ph.D Student Bui Duc Thanh1 Abstract: Human resource management not only determines but also reflects the level ofdevelopment in each country. Along with the development of organizations as well as countries all over the world, human resource management is also progressing and improving day by day. In fact, every country has its own human resource management system and that leads to different socio– economic development outcomes. This article outlines the basic characteristics of human resource management in the world's leading developing countries: the United States, Japan and Singapore, then evaluates generally their advantages and limitations. After that, from which lessons learned from other developing countries, this paper gives some solutions which help Vietnam’s human resource management be effective. Keywords: Human resource education and training, human resource management, high quality human resources. 1. INTRODUCTION Human resource management is the whole development and implementation of strategies and plans to maintain the quantity, structure and quality of human resources and fully exploits human capital in the organization as well as the whole society (Boxall and Purcell, 2011). The essence of human resource management is human management in labor (Cascio, 1989). This is the basic activity that determines the existence and development of the organization and society. It is obvious that along with time, human resources management is getting better, the more developed the organization, the more progressive civil society. Human resource management, however, is very diverse, and in each country there are different basic characteristics. By analyzing, and synthesizing the articles, views of some scholars and scientists, this article will outline the basic characteristics and experiences of human resource management in some typical countries, then draws several lessons that can be applied in Vietnam in order to improve theefficiency of its human resource management in the process of socio- economic development. 2. BASIC CHARACTERISTICS OF HUMAN RESOURCE MANAGEMENT IN SOME COUNTRIES IN THE WORLD 2.1. United States The United States is a comprehensive nation in all fields. The most prominent feature of human resource management is that they attach importance to the investment strategy of education and training development for hundreds of years (Black and Lynch, 1996). It can be said, the education of the United States is the education of the people, it means education creates a free society, every individual has the opportunity to show competence. Compulsory education to universalize general 1 Faculty of Political Economy, Political Academy. 289
- education has formed a system of large primary and secondary schools (the number of primary and secondary schools is approximately 90,000 and more than 35,000, with the ratio of pupils to teachers at 20/1 primary and 5/1 at secondary level (The Statistics Portal, 2015). The state allocates funds to public schools, increases funding and ensures equal opportunity for learning, especially for poor students. The rate of education spending has increased dramatically in the 1960s and 1990s, with 5.3% and 7%, respectively, in recent years, approximately 8% (The Statistics Portal, 2015). In particular, in the United States, higher education are priority investment (Schuchardt, Hanna, Hira, Lyons, Palmer, and Xiao, 2009). In 1960, the number of colleges and universities in the United States was just over 2,000, so the number of schools has nearly doubled with tens of millions of students attending school, accounting for about 80% of the school age population (The Statistics Portal, 2017). The top ranked US system, model and quality of higher education. Their education is always innovative, competitive, stimulating individual learners to promote their creativity, coupled with practicality and promote the knowledge economy is increasing. Higher education in the United States also attracts and encourages talented people from all over the world to study, develop, work and settle in the United States. That gives the United States high quality human resource, occupying the superpower position in the world. US businesses also pay close attention to training and development of human resources at a cost of trillions US$ annually and continuously increasing (Noe, Hollenbeck, Gerhart, and Wright, 2006). Lots of companies have multi-racial, multicultural human resources. Human resource management activities are always improved, professional, scientific and effective. Relations between leaders and employees, colleagues are always democratic, respectful, cooperative, frank. Meanwhile, attitude, working style is disciplined, responsible, and professional. Companies always create human resources to promote self- control as well ascreativity. The system of material remuneration, positive spirit helps employees improve productivity, work efficiency and stick with the business. 2.2. Japan Japan has made a great leap forward in socio-economic development after World War II (Drucker, 2012). The main reason is that they have identified the decisive role of human resources. Japan has made every effort to obtain high quality education human resources in the shortest time. In the country, they build up a system of education and training with the knowledge of selection and combination of human and traditional knowledge, paying particular attention to educating the sense of the people to preserve the national cultural characteristics. In order to have the highest quality human resources, the government of Japan recognizes that the best way is to send human resources to highly developed countries to acquire knowledge of skills, modern in serving the country. Many scientists and managers have studied and studied in many fields and successes from European and American countries. They set up overseas companies or associated with domestic companies to convey, apply, improve techniques and methods of management in the country with the philosophy that all activities must be unreasonably removed thoroughly. Another obvious feature is that the Japanese have created and developed a highly qualified workforce by virtue of their smart choice of investing in high-value, high-tech fields (automobiles, computers, automation, nuclear and so on). Acquiring progressive knowledge from abroad, then researching and applying practical improvement in the country. Therefore, only short-term high technology and industry has made great progress, and create high-quality human resources contributing to economic development leapfrog. 290
- Another prominent feature is to always encourage human resources to promote creativity, continuous improvement. Receive but not manipulate machinery, but have flexible, flexible creation. Moreover, the Japanese have a constant mind and action in every area, every job. Another notable feature in Japan is that they have educated generations of human resources with distinctive qualities. Always in demand and humble to learn, not self-indulgent, not arrogant, satisfied. National unity is a prominent feature of the Japanese, based on collective wisdom, but always respects and protects the individual. Seriously obey the law, and social order. Honor, promise is always respected by the Japanese. Self-recognition, responsibility and drastic correction of the shortcomings that less attributable to others is a characteristic feature of the Japanese culture. In terms of business, the concept of the company as a family is quite popular. Maintain a lifetime employment policy and be replaced by descendants who work in the company after retirement. The remuneration system basically meets the needs of the employees and makes them loyal to the company. Long service is a basic factor to pay salaries, promotions, promotions. Human resource training is focused on quality, employing reasonable human resources after training. There is a promotion for managers, managers in the company. Group activities are quite common, decisions are often grouped and implemented, but there is encouragement for team members to participate in management. However, since the 1990s, the change in all aspects has affected the human resource management in organizations and businesses in Japan. Young people have the concept of living and working style of the West. Most clearly expressed that they no longer appreciate the lifetime employment and loyalty forever with the company. The seniority–based salary system, the position–based tradition, has complemented and modified the qualities of actual capacity and performance of human resources. This makes the human resource management in organization and management of human resources have a positive and effective change. 2.3. Singapore Singapore became a self–reliant nation in 1959 (Chong–Yah, 1959). As soon as it was independent, the Singapore government set a goal of rapidly transforming Singapore into a highly educated and high quality human resource. Education is defined as the key to making a wish come true. Singapore has built a system of universities, colleges and research institutes with internationally quality research and education (for example, Nanyang University has 52 majors). Education and training are priority in construction budget, funding for public universities. Comprehensive training program, advanced scientific and technical knowledge with characteristics of traditional culture. Balanced training between highly qualified managers and advanced technical workers with the goal of investing for the future. The policy of education and training has the principle of national interests on the community's interests; social benefits on personal interests; Encourage the development of personal capacity, build cultural families as the basic nucleus of society. It has helped Singaporean people with many races work together and live in harmony, unity, respect and mutual help. A prominent feature of successful human resource management and economic development in Singapore is the policy of bringing human resources abroad to advanced countries and attracting talents from countries with human resources. High quality work and settle here. Singapore has 4 human resource support centers, which are extremely effective. Not only provide full information, transparency, counseling support, human resources for study abroad but also help foreigners learn, find 291
- jobs and settle in their country. Provide scholarships for talented foreign students in their studies, encouraging them to stay at least six years of work. Many people after 6 years continue to work here. Thus, Singapore has a population of only 5.4 million, but there are 2 million foreigners living and working while they are mainly high quality human resources (Department of Statistics Singapore, 2017). Therefore, although Singapore restricts its resources, it only concentrates on developing a number of areas such as international finance and finance, tourism and seaports, attract high quality human resources to develop the country. Human resource management in organizations, companies and enterprises in Singapore also incorporates Western and American human resource management philosophy. In detail, Singapore enhances the role of quality human resources. The company's strategy for building human resources for each period is very clear. Applying advanced technology in recruiting and selecting talented people. Human resource training and development programs are designed and updated with advanced and practical skills and are considered an important basis for advancement. The highlight of human resource management in companies in Singapore is the enhancement of proactive, empowering and empowering employees through a well–paid remuneration system The spirit for them to promote the ability and high efficiency for the company. 3. CURRENT STATUS OF HUMAN RESOURCE MANAGEMENT IN VIETNAM 3.1. Advantages Firstly, the structure of Vietnam's population is now in a state of golden populationstructure, the number of human resources in working age accounts for about 67% of the population (General Statistics Office of Vietnam, 2018). Especially, the number of people aged from 15 to 50 which is considered as a dynamic, knowledgeable, skilled, scientific and technical labor force and the best working style in the age groups accounts for 50% (General Statistics Office of Vietnam, 2018). Secondly, with the socio-economic development and investment in education and training, the quality of human resources in Vietnam has been improved: health status, health criteria such as height, weight, endurance, disease status are getting better day by day. In particular, the quality of education was improved, the proportion of people who graduate high schools went up last decade. The percentage of people graduating from colleges, universities has increased significantly. Thirdly, the policy of restructuring human resources shows positive signs: restructuring the public sector, expanding the private sector and attracting human resources into the economy which has foreign direct investment. Particularly, there is a rearrangement of human resources in the public sector and state organizations: job analysis and arrangement of cadres, civil servants and officials towards staff streamlining and quality improvement. Moreover, the government improved the salary policy for cadres and civil servants in the public sector in order to improve their living standards and motivation. Fourthly, investment and improvement of education, training and health systems have been positively transformed. Vietnam human resource acquires the knowledge, skills, experience in accordance with our country and circumstances. In addition, the government pays attention to preserve and develop Vietnamese traditional culture, preserve the national identity as well as combines the elite of the world, so work attitude has made a clear progress. Fifthly, in organizations, human resources management activities are more and more progressive and effective: the policy of equitization in an enterprise is more and more fierce and effective; 292
- recruitment, training, job analysis and evaluation are increasingly scientific and practical. Motivational activities for human resources through the pay system, bonuses, welfare and corporate culture increasingly meet the increasing need of human resources. The gap in wages, income and working environment in the state sector is narrowing compared to the foreign investment sector. 3.2. Restrictions First of all, although Vietnam is in a golden population structure, Vietnam is facing with population aging (the rate of the population at the working age accounts for 9.9/10%, the proportion of over–working people over the age of 5 accounts for 7.1/7% compared to the old population standard) (General Statistics Office of Vietnam, 2018). This situation will cause a shortage of human resources and difficulties in human resource management in Vietnam in the near future. Secondly, the distribution leads to the structure of human resources by sector, type and area is not suitable, for example somewhere has the shortage of human resource, somewhere has the excess demand for labor. In addition, human resource quality is not guaranteed. The number of human resources in the government management system is quite large (about 4.3 million people) (General Statistics Office of Vietnam, 2018). For example, in the education sector, Vietnam has teacher shortfall in primary and excess at secondary level, human resource shortfall in information technology industry but excess at accounting, finance, business administration. Thirdly, the national education and training system, despite many improvements, still faces with many shortcomings, inconsistencies and instability: the program of textbooks, curriculum, and training programs are not scientific, lack of consistency, and do not concentrate on improving learners’ skills. General education, vocational education management and professional education are not uniform and limit the autonomy of educational and training establishments. This is also one of the reasons that Vietnamese human resources are still popular at the junior and high school level, qualified human resources are limited. Fourthly, although the remuneration system for the government sector has many improvements, it still does not meet the needs of human resources as well as motivate them. Health care and public health care for human resources are also limited, the incidence of incurable diseases tends to increase. Fifthly, in several organizations, especially in the public sector, human resource management activities are largely unscientific and ineffective: recruiting people incorrectly, arranging and appointing human resources not properly qualified, evaluating tasks incompletely. Besides, the remuneration system only partially meets one of the needs of workers. The working style of civil servants lacks of discipline, responsibility, and cooperation. Sixthly, human resource management in Vietnam is still inadequate and limited. Human resources have been increasing, but the quality has not met the demand, especially Vietnam lacks the high quality human resources. Meanwhile, economic development and job solutions are still slow so the unemployment rate is quite high in both urban and rural. 3.3. Causes The thinking and the consequences of the state-run economy are still in human resource management in Vietnam. This is reflected in the system of law and management mechanism closely and imposed from the top down, limiting the initiative of the basis. Moreover, human resources in political, state, socio-political organizations are still cumbersome, overlapping and overlapping 293
- functions. Therefore, the number of civil servants in public organization is large but ineffective. Furthermore, the restructuring and streamlining the public sector management apparatus, prioritizing the development of the private economy occur slowly. The development and implementation of human resources in both macro and micro level have not been thorough and scientific yet. Particularly, human resource estimation for the long-term and medium-term periods for each field, industry, type and area have not been paid much attention. Additionally, budget for education, training, health is still limited. Therefore, there is a lack of facilities in the above areas. Improving the policy and pay system for salaried employees has many constraints so it has not been fully implemented. Besides, there has not been many policies which attract and motivate high quality human resources from overseas to invest and work in Vietnam. 4. LESSONS LEARNED FOR VIETNAM IN THE CONTEXT OF GLOBAL UPHEAVAL From the basic characteristics of human resource management in some advanced countries in the world, we can shed light on some of the lessons and experiences that apply to human resource management in Vietnam. Firstly, it is important to recognize the role of human resources and high quality human resources in deciding on socio-economic development. In order to avoid lagging behind and catch up with advanced countries, it is necessary to quickly acquire high quality human resources. Secondly, a learning society needs to be built. First of all, investment in comprehensive renovation of education and training at all levels, all fields: rational distribution of education and training systems; program renewal; training methods to develop capacity for learners; improve skills solving practice; Close cooperation between training institutions and human resources. Thirdly, form agricultural workers in rural farms and prioritize investment in the development of cutting-edge science and technology and technology for rapid growth such as technology, informatics, oil and gas, tourism, fishing industry (economic development and security of sovereignty). Fourthly, special attention should be paid to educating the sense of discipline, responsibility, self– esteem and compassion for the human resources from the high school level to all cadres and citizens. Fifthly, strengthen and reform the management apparatus of the country. Clearly define the tasks, requirements and job standards of each position of the state management apparatus from the central to grassroots level. Streamlinie, improve the capacity and quality of staff through consistent construction and implementation of the legal system. Determine to eliminate corruption and group interests. Sixthly, strengthen, establish and promote the effective functioning of counseling centers, career guidance, job growth and support, and address human resources issues. Seventhly, there are policies to support and give priority to studying abroad, labor export and create conditions for them to return to their capacity. Besides, the government should have open policies to attract overseas Vietnamese and other foreign talents to invest capital and intellectual property in the country. Eightly, improving human resource management in enterprises of all types and areas helps to form, promote and retain human resources with appropriate quantity and structure. Additionally, the country had better pay special attention to create human resources for selfreliance, creativity, and promote their working capacity, productivity and efficiency. 294
- 5. CONCLUSION Theory and practice have shown that human resource management plays a decisive role inthe survival and socio-economic development. Developed countries have shown their prioritized human resource development strategy to be right. Lessons on comprehensive reform of education, training (especially the quality of education), strengthening the state management team, attaching importance to studying and attracting talents from abroad, promoting the ownership, creative, stimulating the working capacity of human resources are the basic characteristics and precious experience from the world's advanced countries. Applying the lessons learned above, human resource management will be increasingly effective and speed up the process of socio-economic development in Vietnam. REFERENCES 1. Black, S.E. and Lynch, L.M. (1996), Human-capital investments and productivity, The American economic review, 86(2), pp.263–267. 2. Boxall, P. and Purcell, J. (2011), Strategy and human resource management, Macmillan International Higher Education. 3. Cascio, W.F. (1989), Managing human resources (p. 251), New York, NY: McGraw–Hill. 4. Chong–Yah, L. (1984), Economic Development of Singapore since Self-government in 1959, In The Economics of Human Betterment (pp. 105–131), Palgrave Macmillan, London. 5. Department of Statistics Singapore (2017), Population trends. 6. Drucker, P. (2012), Post–capitalist society, Routledge. 7. Noe, R., Hollenbeck, J., Gerhart, B. and Wright, P. (2006), Human Resources Management: Gaining a Competitive Advantage, Tenth Global Edition, McGraw-Hill Education. 8. General Statistics Office of Vietnam (2018), Overview on establishments. 9. General Statistics Office of Vietnam (2018), Monthly statistical information. 10. The Statistics Portal (2015), Elementary schools in the US – Statistics & Facts. 11. The Statistics Portal (2017), College & University – Statistics & Facts. 12. Schuchardt, J., Hanna, S., Hira, T.K., Lyons, A., Palmer, L. and Xiao, J.J. (2009), Financial literacy and education research priorities. 295