Topic: A FIVE-YEAR-STRATEGY OF HUMAN DEVELOPMENT FOR BUSINESS CONTENTS I OVERVIEW OF VIETNAM NATIONAL PETROLEUM GROUP II STRATEGIC OBJECTIVES OF BUSINESS PRODUCTION III PRESENT MANPOWER CONDITION IV HUMAN DEVELOPMENT GOALS V SWOT ANALYSIS OF HUMAN DEVELOPMENT IN ENTERPRISES VI HUMAN DEVELOPMENT STRATEGY I Overview of the Vietnam National Petroleum Group: Vietnam National Petroleum Group is a strong economic group of Vietnam, which is well-known in the region and around the world - Full name: VIETNAM NATIONAL PETROLEUM GROUP - International trade name: VIETNAM NATIONAL PETROLEUM GROUP - Abbreviated name: PETROLIMEX - Address of head office: Number Kham Thien street, Dong Da, Hanoi, Vietnam - Logo of Vietnam National Petroleum Group: - Slogan: "Taking you further" Page of 22 - Core Values: The current Vietnam National Petroleum Group was formed from capitalizing and restructuring Vietnam Petroleum Corporation according to the decision 828/QD-TTg May 31, 2011 of the Prime Minister; is a public company in the acts 2946/UBCK-QLPH August 17, 2012 by the State Securities Commission Earlier, predecessor of Vietnam Petroleum Corporation is Petroleum Corporation, which was established under Decree 09/BTN dated Jan 12, 1956 of Commercial Ministry and was re-established under Decision No 224/TTg dated April 17, 1995 of the Prime Minister Petrolimex is the key state-owned enterprise, which is especially ranked, national- scaled; it secures 60% market share of nationwide gasoline; Petrolimex always plays a leading role, stabilizing and developing petroleum market, petrochemical products to meet Page of 22 consumers’ demand, serving the economic development of the country and ensuring national security Petrolimex currently has 42 member companies, 34 affiliated branches and enterprises of 100% state- capital member companies, 23 joint-stock company with capital governed by Petrolimex, foreign joint ventures and branch in Singapore In particular, Petrolimex member units directly trade in petrol in 62/63 provinces and cities Overseas, Petrolimex has Petrolimex sole member limited liability company in Singapore, Petrolimex sole member limited liability company in Laos and has opened a Petrolimex representative office in Cambodia Key business domain of Petrolimex: - Export-importing and trading of petroleum, oil refining and petrochemical products - Equity investments in other companies to business in sectors that Petrolimex is trading and other sectors under the provisions of law - In addition to the fields of petroleum, lubricants and petrochemicals, liquefied gas and petroleum transportation, Petrolimex has investment in the sectors: + Design, construction, mechanical and petroleum equipment; + Insurance, banking and other commercial activities and services, in which many brands are top-ranked in Vietnam such as PLC, PGC, VIPCO, VITACO, PJICO In the petroleum sector, Petrolimex keeps the leading role in the domestic market in accordance with the Government's direction Along with 14 other leading petroleum enterprises, Petrolimex ensures fully and timely oil kinds, serving socio-economic development of the country, ensuring national security and consumption needs of people For retail fuel operations, of the approximately 13,500 petrol outlets in all economic sectors, Petrolimex owns 2,170 stores nationwide, creating favorable conditions for consumers to use goods or services directly provided by Petrolimex In the isolated and deprived areas - where business efficiency is low but socio-political significance is high, Page of 22 Petrolimex has higher market share than the average market share of the Group Generally, on the national scale, based on oil production actually sold in the domestic market (in Vietnam) in 2012, the actual market share of Petrolimex is approximately 48% Besides petroleum products, in Petrolimex stores, there are other goods and services, such as lubricants, gas, insurance, banking, etc produced and provided by the Petrolimex member units production and supply Petrolimex is the first enterprise to apply the method of selling petrol paid by Flexicard with many utilities and will deploy money transfer services in Vietnam II Strategic objectives of business production of Petrolimex Group in the period 2013 - 2017 (05 years) 2012 was the first year Vietnam National Petroleum Corporation officially changed to the form of joint-stock companies operating under the Enterprise Law Besides the deployment of business activities, the Group has focused on checking up to complete the provisions and regulations of the internal management with new model and regulations of law, so workload should arise relatively largely Although some main costs such as output, profits have not reached the target due to objective factors of the economy, basically the group still maintains stability and develops in the right direction Organizationally, the group initially has successful application and is the first unit in the field of oil business confidently deploy ERP model in production On the business side, the total assets of the Corporation reached 57.651 billion, net sales reached 200.847 billion, pre-tax profit reached 978 billion, and the dividend is expected to be 5% With these positive signs in 2012, the strategic objectives of Petrolimex Group in the coming years are set out as follows: Page of 22 Medium-term and long-term strategic objectives of business production in the period 2013-2017 a Development Strategy: - Improve efficiency of investment usage, invest concentratively, not spread out and make full use of business advantage - Identify the strategic objectives in line with vision 2020, and on that basis develop and implement a plan of comprehensive restructure - Locate the processes in the petroleum business chain, partition and reorganize the market, improve business mechanism, actively operate business with market when conditions are allowed - Do not stop promoting, protecting and developing the brand Petrolimex on domestic and foreign markets; strengthen control of the business to increase efficiency, mitigate risks - Prioritize the development of sales channels in the effective region and market; increase business capacity; modernize, computerize and innovate management of retail operations.; invest in modernizing technology infrastructure to meet growing demand of Petrolimex, especially storage systems, major ports, key projects such as oil refining and petrochemical, bonded warehouses, the tanker restructuring Then create competitive advantages, especially competition with foreign oil firms Expectedly open 100-200 new sales points annually (Diagram 3) - Gradually increase the efficiency of management s on the basis of ERP system operation b Financial Strategy (table 1, diagram 1) Table 1: Financial Objectives 2013-2017, Petrolimex Group Page of 22 Year Charter 2012 2013 2014 2015 2016 2017 capital 12000 13500 15000 18000 21000 25000 Revenue 200847 200357 240000 270000 300000 330000 Profit 987 1980 2772 3881 5433 7606 Earnings per share Dividend 70 110 130 150 180 220 5% 8% 8% 10% 10% 10% Diagram 1: Plan of profit growth 2013 – 2017 – Petrolimex Diagram 2: Plan of developing operation network– Petrolimex 2013 - 2017 Page of 22 Short-term strategic objectives of business production in 2013 a General Strategy: - Improve management effectiveness based on ERP system operation Improve efficiency of using capital by: Increase inventory turnover, maintain reasonable inventory, use flexible financial instruments, invest concentratively, shorten time of construction building, ensure deployment efficiency - Develop and implement schemes of exploiting the added value in the retail store with convenient and advanced services - Operate system of organization and new administration after the restructure; regularly assess to adjust to fit the reality - Strengthen international integration, promote investment and business overseas - Continue to practice thrift; deploy divestments in areas which are not directly related to the main field of business and unable to grow in scale and efficiency is not high as directed by the Prime Minister b Financial objectives in 2013: Page of 22 - Target sales: 200.357 billion VND - Target profit: 1980 billion VND (50% comes from petroleum business) - Total assets: 65,000 billion VND - Earnings per share: 110 VND / share - The rate of dividend: 8% III Present manpower condition As a state-owned enterprise which has been completely equitized, Vietnam National Petroleum Corporation has expeditiously built and completed the restructuring scheme to submit the Ministry of Industry and Trade, Ministry of Finance and the Prime Minister for approval Based on the viewpoints of the Party, the Government, ministries and longterm strategy, the scheme of the Group has made the important point in orienting the development of oil and gas business sector, meeting all demands for petroleum and petrochemical products for socio-economic development, national security and serving people's lives on a national scale, gradually expanding business operations to other countries in the region and the effectively diversifying business activities The group’s position now is a specially ranked state business with large scale across the country, ensuring 60% market share of nationwide gasoline To achieve great success in business development strategy of the Corporation, the human resource management in business is focused Therefore manpower recruitment has always been focused in recent years; it can be said that the corporation has always maintained workforce stability and strongly developed recruitment and training staff in the whole enterprise That the total numbers of employees in the company in recent years reach the target both in the quantity and quality of human resources is an important factor contributing to the growing development of the corporation Quantity of employees Page of 22 Target Year 2010 Year 2011 Year 2012 Quantity of employees 18.584 17.820 17.062 - Direct Labor 14.454 13.796 13.325 4.130 4.024 3.737 34 38 45 - Bachelor 3.225 3.592 3.641 - Mid-level 3.261 2.276 4.474 10.297 10.945 8.157 1.767 912 434 13.541 12.915 12.286 5.043 4.905 4.776 - Indirect Labor Level - Master - Worker - Without training Gender -Male - Female The number of employees in corporations with master and university level accounts for about 17.5% (in 2010) and often holds positions from senior to junior leaders From the diagram above, it can be seen that the number of masters and bachelors has gradually increased over the years, and the number of beginner and those who are without training has dramatically declined in 2012 The reason is that the training of the Corporation are focused and well done, not the increasing number of input employers Page of 22 About recruitment, the corporation is particularly interested in strategy of human resource training and development for the purpose of the corporation is raising the recruitment quality rather than merely increasing quantity of labor Increasing the quality of labor means hiring the right person for the right job, so that employees can develop all their abilities and well complete all assigned work, helping the corporation to achieve the targets The quality of workers employed and trained over the years has increased; in particular, the number of university and mid-level workers has increased over the previous years With proper awareness of the issue of using labor in the most effective way and to adapt to the frequent change of business environment as well as to capture the development of science and technology, the corporation has built a strategy of training and developing a high quality human resource The structure and quality of human resources The structure and quality of human resources • Qualifications of staff officers Labor - Total number of employees - Master Quantity 18.584 34 Rate % Notes 100,0 In which woman : 5.043 0,2 Doctor of Philosophy : 10 - Bachelor 3.225 17,3 Master : 24 - Mid-level 3.261 17,6 10.297 55,4 1.767 9,5 - Workers - Without training  The structure of the leadership team Page 10 of 22 Total Qualificatio Tota n level Master Bachelor Mid-level Training l Director Vice Director 53 104 Econom y- Technolog Other Tota y s l Econom Technolog Other y- y s Finance 1 - 32 Finance - - 43 17 18 58 39 32 16 3 10 - - - - - - Improving the quality of human resource management in Petrolimex The purpose of the training and quality of human resources in the Corporation is to overcome the existing deficiency, to enhance qualification of employees; to create high quality staff, to make full use of competitive advantage through the use of human resources In the past year, Vietnam Petroleum Corporation (Petrolimex) has continuously organized training course to enhance the management and utilization of Petrolimex Human Resource Management program (PHR - Human Resources Petrolimex) The program is supported by Joint-stock Digital Solution Company (Digisoco) 20 students participating in this course include staff, experts working in human resources management and information technology at 10 Petrolimex sole member limited liability companies: Area I, Area II, Area III, Region V, B12, Ha Son Binh, Ha Nam Ninh, Nghe An, Phu Khanh and Southwest - are companies with large scale in labor and organization PHR meets the management requirements on both aspects of organizational structure and human resource management, with many advanced functions to ensure the efficiency of Page 11 of 22 human resource management With PHR - the lookup, search for information, establishment of the target reports are made quickly, completely and accurately Petrolimex put PHR into exploitation in 42 oil companies and a number of joint stock companies from Oct 5,2010 (replace Petrolimex Human Resource Management software - PMP - Personal Management Programme) under Decision No 705 / XD-QD-CEO on Oct 1, 2010 of General Director of the Vietnam National Petroleum Company (now the Vietnam National Petroleum Group) Since 2010, Petrolimex has opened 10 PHR training courses in North, Central and South with 218 participants and officially granted access right to 409 people Up to now, 16,945 personnel file has been fully updated information with portraits in accordance with the standard Human Resource Management is an activity in the general development strategy of Petrolimex, always attracting special attention of leaders at all levels IV The general objectives of developing human resources of Vietnam Petroleum Corporation are based on the following principles: Principle 1: People completely have the capacity to develop; everyone in the organization has the ability to grow and will try to develop constantly to keep the growth of businesses as well as individuals People have always adapted to the conditions, when the external environment is constantly changing and the scientific knowledge is developing, demand for development in human intellect is inevitable Principle 2: Everyone has his own value so each person is a particular person, different from the others and is able to contribute initiatives Principle 3: benefits of employees and goals of the organization can be combined together, the goals of the organization and development of human resources include: to motivate, to encourage all members to try to increase their contributions to the Page 12 of 22 organization; to attract and have a good use of qualified individuals; to achieve the greatest value through the products of workers to offset the cost spent for their training and development On the other hand, the desires of employees through training and development are: to stabilize for development, to have advancement opportunities, promotion, to work in the favorable position in which they can contribute and dedicate most, where they will be provided with related training information Once their basic needs are recognized and guaranteed, members of the organization will be encouraged to work Principle 4: Development of human resources and employee training is an investment that will generate significant benefits because the development and training of human resources are the means to achieve the most effective development of the organization From the above principles, the Corporation set out targets for the development of human resources of the company today, including: common objectives, specific objectives (quality and quantity of human resources) The common goal - Maintain and develop current leadership team Have advanced training for middle-level and young managers to become the resource officers to develop Corporation; - Search high-quality human resources by offering attractive remuneration on the labor market, clear and transparent working mechanisms; - Train and hire new qualified technical staff by offering attractive remuneration, clear and transparent working mechanisms; - Continuously train the current human resources of the Corporation; Specific Objectives a Target of human resources quality Page 13 of 22 With the enormous movement and development of the economy and particularly in the competition of petroleum groups and Military Petroleum Corporation - MIPECORP, the Corporation should set out the criteria and the quality of the human resource of the company to ensure the sustainable development and the company's position on the Vietnam and international market To ensure the implementation of the objectives in developing and improving the quality of human capital of the Corporation is required, as follows: - To train to improve the current management levels of the Company; to prioritize training subordinates and young managers to ensure the stable maintenance and replace retired managers or unqualified managers who cannot guarantee the Company's development By: allowing staff to participate in the overseas courses of master and Doctor of Philosophy in the field of the company; simultaneously offer good treatment policy for overseas staff; - To recruit leadership positions with the priority criteria for those who have working experience in the petroleum industry and are trained from the advanced- technology countries - To train the new technology level for technical staff: to ensure their adaptation to the new and modern technical conditions with methods of training in site or sending a number of typical technical engineers to study technology at the modern petroleum companies, particularly in Japan; after the completion of the course, these technical engineers will retrain others in the company; - Open classes about sales training for staff; communication skills with clients of every gas station; or apply test plans on automatic gas stations to enhance the image of the Corporation; - To regularly implement customer care departments; b Target of human resources quantity Page 14 of 22 Below is a plan of the Corporation in 2013, in which about 1,090 new people are recruited The number of masters is 53, the rest is 1,898 people including graduates and technical workers consist of Labor Quantity Rate % Total labor 20.535 100,0 87 0,4 - Bachelor 4.123 20,1 - Mid-level 3.261 15,9 -Worker 11.297 55 -Without training 1.767 8,6 - Master Notes In which Woman : 5.943 Doctor of Philosophy : 18 Master : 69 V SWOT Analysis of Human Resource Development of Vietnam National Petroleum Corporation STRENGHT/ Strengths: - Leaders and technical staff are qualified and professional - There is a clear work assignment - There are sound guidelines and development policies - The workers of the company are highly skilled with annual train and professional coach - Moral support for all the officers and employees of corporations is fully concerned Many emulation movements are launched in the company, such as sports festival, Emulation Fighter, Good Person with Good Job… WEAKNESS/ Weakness Page 15 of 22 - Limited ability of internal coordination among departments in the company, among the companies in the Corporation Company - Different levels of mid-level officers and senior managers - The subsidiaries’ difficulty in organizing upgrading examination for workers due to insufficient conditions to establish exam council OPPORTUNITY / Opportunity - The corporation is identified as the key state-owned enterprise, especially has a national scale Training, recruitment of corporations increasingly focused - Quality of human resource is increasingly enhanced along with the development of the society, besides the domestic human resources, the growth of the corporation increasingly attracts high quality human resources from developed countries around the world - The implementation of international training programs does enhance the quality of employees in the corporation THREAT / Challenge - Training regulations of the Corporation and its subsidiaries exist many suitable and inconsistent points - No synchronization in recruitment, training and post-training - No standards for oil workers leads to inconsistent training content - No long-term plans for training, recruitment, most needs of recruitment and training are to address the immediate situation VI 5-year-strategy of developing human resource of the Vietnam Petroleum Corporation (2013 to 2017) Page 16 of 22 Vietnam National Petroleum Corporation has developed strategies up to 2015, with a vision to 2025, approved by the Politburo and the Prime Minister Group leaders have made decisions, which consider three factors including: human resources, technology science and management modernization three key solutions to create a breakthrough in order to successfully implement the above strategy Recruitment policy: To recruit publicly in consistent processes and regulations throughout the corporation To attract talents, to recruit the right people in regulatory standards and to properly arrange to develop the capacity of the employees To prioritize recruiting experienced labors who are working in the petroleum industry, Construction or the well-trained experts from well-known abroad universities in the human resources orientation of the company To encourage employees working in PETROLIMEX to find and recommend suitable candidates for the recruitment criteria of PETROLIMEX to participate in recruitment Workers not have to pay any costs for labor recruitment, except for cost of registration dossiers for job centers (if through these units’ introduction) according to regulations of law PETROLIMEX always welcomes those who want to contribute and grow up with their talent, wisdom, virtue and passion for the job Applicants who meet the recruitment requirements (based on candidate profile) and the recruitment needs of the company will be participating in selection tests (general knowledge, expertise, foreign language) and interviews Especially in international integration stage and improvement of the staff quality, PETROLIMEX is looking forward to qualified candidates such as bachelors, masters who have graduated abroad Policy of training and human resource development Page 17 of 22 PETROLIMEX regards the training and development of human resources as one of the leading vital tasks PETROLIMEX has built and implemented strategies of human resource development of PETROLIMEX till 2015 and oriented to 2025; it is implementing innovative solutions for training and development of human resources To achieve the objective of sustainable development on par with the petroleum groups in the region and the world, the officials and employees of the Group have been gradually trained and re-trained to improve their level of management, expertise, skills, foreign languages, information technology at the domestic and abroad training center PETROLIMEX always create favorable conditions for workers with training and development opportunities in order to build an officer team with good expertise, professional knowledge, professional ethics and zeal with professional work style a Policy of integration training: 100% new staff recruited will be allowed to participate in integration training programs to help workers well understand the history and development of the company, understand the work environment and products of the company and they will be trained about related profession to quickly seize and integrate with the job at the company b Advanced Training Policy: Annually, the company regularly organizes training courses to improve skills, intensive knowledge for employees during working process to continue to improve and enhance professional skills for good jobs in the company c Policy of training staff: For excellent employees with potential growth and management staff, the company is always interested in developing them by frequently training and supplementing with leadership skills, change management, event plan and organization, improving management effectiveness through mobilization of human resources Page 18 of 22 Starting from the human status and the reality of specific production of petroleum industry, policy PETROLIMEX lays down as a policy the development of training system at all levels from technical workers - College - University - Postgraduate, primarily focusing on specialized industries to serve petroleum activities This system is shown as follows: Level Unit Petroleum Vocational Training Type Petroleum Vocational Schools and Colleges College Train operational manpower for projects Train Petroleum safety- environment Train and issue International certificates Train and frequently foster, train technology transfer Train foreign language, information technology Vietnam Petroleum Train for industry entry Train engineers, bachelors University Train masters, Ph.D Vietnam Petroleum Institute Train and frequently foster, train for industry entry Train and update, improve Petroleum specialized (VPI) technique/ technology Train masters, Ph.D combined with studying in requirements of business production Train technology experts Training Centers of Units Train in specific requirements of each unit Policy of salaries, bonuses, benefits and remuneration: PETROLIMEX always concerns about building a suitable systems of salaries, bonuses, benefits, remuneration for workers for each period and each stage of development, ensuring flexibility and fair proportionally with levels of contribution and competition in the labor market a Salaries and allowances: Page 19 of 22 Basic Salary: The salary workers receive is based on the rank matched with the job responsibility they are in charge of the company Business Salary: The wage workers are entitled is based on the general business performance of the company and evaluation of job performance of each individual Allowances: Additions which are often added in income, depending on the work nature and conditions of laborers, including: seniority allowances, toxic allowances, concurrent allowances, night shift allowances, dearness allowances, attractive allowances, capacity allowances, mobility allowances, specific-job allowances Schedule for considering wage increase for workers is every months b Bonuses: In addition to the policy of salary and allowances, PETROLIMEX also applies bonus policy to encourage and motivate employees throughout the company to try their best to contribute and strive hard in all positions to for a growing PETROLIMEX Teams and individuals with excellent achievements will be honored and rewarded suitably and timely in the consistent, fair and public regulations, combined with spiritual and material rewards (Certificate of Merit, cash, domestic or abroad tourism) Regular reward system for teams and individuals is based on the result of business activities in months, the first and the end months of fiscal year (commonly known as supplementary pay) Unexpected bonus for teams and individuals with excellent performance is useful in setting a good example, initiatives, scientific research, and technological innovation There is a bonus system for theme emulation activities launched by PETROLIMEX There is a bonus system for holidays, anniversaries of the country and the foundation day of PETROLIMEX Page 20 of 22 c Benefits and remuneration: Insurance policy: All employees signing an official labor contract with the Company are entitled to social insurance in accordance with the Labor Law Collective rest and entertainment system: - Staff working in PETROLIMEX enjoys 12 days’ leave/ year and every years of seniority working at PETROLIMEX the staff are entitled to additional 01 day’s leave/ year - Depending on the results of the business and welfare fund, typically the company organizes "PETROLIMEX Family Day" to create conditions for the spouses and children of staff to meet and exchange; holds sightseeing tours and holidays for all staff in the company; and organizes special travel programs for a number of officials and employees for their contribution to the company’s general development PETROLIMEX often pays attention to and gives spiritual and material to laborers and their relatives on the anniversaries in years, such as International Women's Day, International Children's Day, Mid-Autumn Festival , Planning, promotion, appointment: All employees with excellent performance, who are recognized every year and have development potential, will be arranged to be trained, fostered, promoted, and appointed into management positions when needed PETROLIMEX always prioritizes to promote, appoint officials from interval sources For those who have the management capacity and ability to undertake the work at a higher level will always be prioritized in rotation training to accumulate enough knowledge and experience for more important management position in the future Work environment: Page 21 of 22 With a mission to help PETROLIMEX to become a corporation with sustainable development, with top service quality according to international standards, PETROLIMEX is always interested in building its own culture and a team of officers who are clean, creative, enthusiastic and of firm stuff in life References: http://www.petrolimex.com.vn/gioi-thieu/gioithieu-petrolimex http://www.royal.vn/kho-kien-thuc/dao-tao-nhan-su-hr/157-dau-la-chien-luocnhan-su-cua-ban.html http://tritri.org/Pages/Coaching_Commmunication http://careerbuilder.vn/vi/nha-tuyen-dung/cam-nang/chien-luoc-nhan-su-daihan.35A4E986.html Page 22 of 22 ... Principle 4: Development of human resources and employee training is an investment that will generate significant benefits because the development and training of human resources are the means to... special attention of leaders at all levels IV The general objectives of developing human resources of Vietnam Petroleum Corporation are based on the following principles: Principle 1: People... mitigate risks - Prioritize the development of sales channels in the effective region and market; increase business capacity; modernize, computerize and innovate management of retail operations.;