THAI NGUYEN UNIVERSITY
SOUTHERN LUZON STATE UNIVERSITY
DOCTOR OF BUSINESS ADMINISTRATION DISSERTATION
MANAGERIAL COMPETENCIES
OF MIDDLE-LEVEL MANAGERS AT
VIGLACERA CORPORATION
TA PHUNG PHUC (LUCKY STAR)
SUPERVISOR:
Dr. Cecilia N. Gascon
HANOI - 2013
ACKNOWLEDGEMENT
This thesis is completed to fulfill the requirement from the Doctor of Business
Administration (DBA) program, an international program between Thai Nguyen
University (TNU) and Southern Luzon State University (SLSU).
I would like to express my sincere thanks to Management Board of the TNU and the
SLSU, who have been organizing such interesting programs. The improvement in our
competencies will bring much more values to our work and social life.
I would like to express my sincere thanks to all lecturers of SLSU, TNU and
associates, who have equipped me with a lot of valuable knowledge and skills for my
life. Especially I would like to express my exclusive thanks to my supervisor – Dr.
Cecilia N. Gascon. Despite very busy with management and professional work, she
has given me lots of valuable guidance and support during my job on completing this
thesis.
I also would like to express my thanks to Board of Management of Viglacera
Corporation, who has encouraged me to complete the thesis and provide me a lot of
support during the research. I would like to express my thanks to all middle managers
and all of my colleagues in Viglacera for helping me with useful data for the thesis./.
ii
COPYRIGHT COMMITMENT
I hereby declares that this is my own research. Also, all the information used in my
research is trustful and totally reliable. The competency of Viglacera middle level
managers yet to be studied in deep and at overall scale, furthermore their
competencies have never been benchmarked against their job requirements.
In late 2011, The Executive board decided to have a HR consultant to review
Viglacera’ workforce and provide recommendations for improvement. However, the
report of the consultant just has been considered as a 3rd party reference, Viglacera
must work on the project itself and create a strategic blueprint for HR development
for the next 5 years at least. To retain its leading position in the market, it is a “do or
die” project for Viglacera and this research, hopefully shall contribute a big picture
overview of Viglacera workforce and recommend a good solution for Viglacera to
achieve the target of the project.
Having that idea in mind the author strongly believes that this research is the first one
in Vietnam to construct the set of competency standards for Vietnam SOEs and it is
also the first study to recommend its applications in a real situation. Once again I
committed that all findings and conclusions of my research are not copied of any
other work or paper. The whole or partly of this research never have been published in
any kind of public media.
The Author
iii
TABLE OF CONTENTS
ACKNOWLEDGEMENT ...........................................................................................ii
COPYRIGHT COMMITMENT ................................................................................ iii
TABLE OF CONTENTS............................................................................................ iv
LIST OF TABLES.................................................................................................... viii
LIST OF CHARTS ...................................................................................................... x
ABSTRACT................................................................................................................ xi
CHAPTER 1.
INTRODUCTION............................................................................1
BACKGROUND AND RATIONALE OF THE RESEARCH .................................. 1
STATEMENT OF THE PROBLEM.......................................................................... 3
HYPOTHESES .......................................................................................................... 7
SIGNIFICANCE OF THE RESEARCH.................................................................... 8
SCOPE OF THE RESEARCH ................................................................................... 9
DEFINITION OF TERMS ......................................................................................... 9
CHAPTER 2.
2.1.
LITERATURE REVIEW .............................................................11
COMPETENCY – OVERVIEW ................................................................. 11
2.1.1. Competency and competency – base methodology ............................. 11
2.1.2. Competency component....................................................................... 15
2.1.3. Competency analysis process .............................................................. 19
2.2.
MANAGERIAL COMPETENCIES ............................................................ 20
2.2.1. Functions of management .................................................................... 20
2.2.2. Managerial competencies..................................................................... 25
CHAPTER 3.
3.1.
RESEARCH METHODOLOGY .................................................33
RESEARCH METHODOLOGY ................................................................. 33
iv
3.2.
STRUCTURE OF THE RESEARCH .......................................................... 40
CHAPTER 4.
PRESENTATION, ANALYSIS AND INTERPRETATION OF
DATA…………. .........................................................................................................42
4.1.
REQUIRED MANAGERIAL COMPETENCIES FOR MIDDLE-LEVEL
MANAGERS AT VIGLACERA ............................................................................. 42
4.1.1. Business awareness .............................................................................. 43
4.1.2. Leadership ............................................................................................ 43
4.1.3. Setting priorities ................................................................................... 44
4.1.4. Managing the team ............................................................................... 44
4.1.5. Result orientation ................................................................................. 45
4.1.6. Change orientation ............................................................................... 46
4.1.7. Team working ...................................................................................... 46
4.1.8. Ability to influence .............................................................................. 47
4.1.9. Developing others ................................................................................ 47
4.1.10. Face to face communication ................................................................ 48
4.1.11. Interpersonal skill................................................................................. 48
4.1.12. Motivation skill .................................................................................... 49
4.2.
CURRENT MANAGERIAL COMPETENCIES OF MIDDLE-LEVEL
MANAGERS AT VIGLACERA ............................................................................. 51
4.2.1. Business awareness .............................................................................. 51
4.2.2. Leadership ............................................................................................ 52
4.2.3. Setting priorities ................................................................................... 52
4.2.4. Managing the team ............................................................................... 53
4.2.5. Result orientation ................................................................................. 54
4.2.6. Change orientation ............................................................................... 55
v
4.2.7. Team working ...................................................................................... 56
4.2.8. Ability to influence .............................................................................. 56
4.2.9. Developing others ................................................................................ 57
4.2.10. Face to face communication ................................................................ 58
4.2.11. Interpersonal skill................................................................................. 59
4.2.12. Motivation skill .................................................................................... 60
CHAPTER 5.
REQUIRED
SOLUTIONS
AND
TO
CURRENT
BRIDGE
THE
MANAGERIAL
GAPS
BETWEEN
COMPETENCIES
OF
MIDDLE MANAGERS .............................................................................................63
5.1.
BASIS FOR THE SOLUTIONS .................................................................. 63
5.1.1. Viglacera direction to develop human resource................................... 63
5.1.2. Reasoning the gaps between required and current competencies of.......
middle managers .............................................................................................. 66
5.2.
SOLUTIONS TO BRIDGE THE GAPS BETWEEN REQUIRED AND
CURRENT COMPETENCIES OF MIDDLE MANAGERS .................................. 67
5.2.1. Training solutions ................................................................................ 67
5.2.2. Non-training solutions ......................................................................... 73
CONCLUSION......................................................................................................... 77
REFERENCES ......................................................................................................... 79
APPENDIX 1 – QUESTIONNAIR FORM FOR IDENTIFYING REQUIREMENT
ON MANAGERIAL COMPETENCIES OF MIDDLE MANAGERS ........................ 85
APPENDIX 2 – QUESTIONNAIR FORM FOR ASSESSING CURRENT
MANAGERIAL COMPETENCIES OF MIDDLE MANAGERS .............................. 88
APPENDIX 3 – JOB DESCRIPTION SAMPLES .................................................... 91
CURRICULUM VITAE .......................................................................................... 107
vi
ABREVIATIONS
AQL
Acceptable Quality Level
BOM
Board of Management
BSC
Balanced Score Card
CEO
Chief Executive Officer
CORP
Corporate
DEPT.
Department
EQ
Emotional Quotient
ERP
Enterprise Resource Planning
FM
Finance Manager
HR
Human Resource
HRM
Human Resource Management
JD
Job Description
R&D
Research and Development
SLSU
Southern Luzon State University
SOE
State Owned Enterprise
SWOT
Strengths Weaknesses Opportunities Threats
TNA
Training Needs Analysis
TNU
Thai Nguyen University
VIGLACERA
Vietnam Glass and Ceramic Corporation
vii
LIST OF TABLES
Table 1-1: Opportunities and Threats in HRM of Viglacera ...................................... 6
Table 1-2: Strengths and Weaknesses in HRM of Viglacera ...................................... 6
Table 4-1: required “business awareness” for middle managers ............................. 43
Table 4-2: required “leadership” for middle managers ............................................ 44
Table 4-3: required “setting priorities” for middle managers................................... 44
Table 4-4: required “managing the team” for middle managers ............................. 45
Table 4-5: required “result orientation” for middle managers ................................. 45
Table 4-6: required “change orientation” for middle managers .............................. 46
Table 4-7: required “team working” for middle managers ....................................... 46
Table 4-8: required “ability to influence” for middle managers .............................. 47
Table 4-9: required “developing others” for middle managers ................................ 48
Table 4-10: required “face to face communication” for middle managers .............. 48
Table 4-11: required “interpersonal skill” for middle managers ............................. 49
Table 4-12: required “motivation skill” for middle managers .................................. 49
Table 4-13: current “business awareness” of middle managers............................... 51
Table 4-14: current “leadership” of middle managers.............................................. 52
Table 4-15: current “setting priorities” of middle managers .................................... 53
Table 4-16: current “managing the team” of middle managers ............................... 54
Table 4-17: current “result orientation” of middle managers .................................. 55
Table 4-18: current “change orientation” of middle managers ............................... 55
Table 4-19: current “team working” of middle managers ........................................ 56
Table 4-20: current “ability to influence” of middle managers ................................ 57
Table 4-21: Table 4.21: current “developing others” of middle managers .............. 58
Table 4-22: current “face to face communication” of middle managers ................. 59
viii
Table 4-23: current “interpersonal skill” of middle managers ................................. 59
Table 4-24: current “motivation skill” of middle managers ..................................... 60
Table 5-1: Training courses proposed for middle managers .................................... 68
Table 5-2: Solutions / Recommendations Matrix ...................................................... 75
ix
LIST OF CHARTS
Chart 1.1: Viglacera Competitive Advantages ............................................................. 5
Chart 2.1: The iceberg model .....................................................................................12
Chart 2.2: Competency analysis model ......................................................................20
Chart 2.3: Circle of management ...............................................................................22
Chart 3.1: Work frame of the research: .....................................................................34
Chart 4.1: Required competencies for middle managers .......................................... 50
Chart 4.2: Current competencies of middle managers vs. requirements .................. 61
Chart 4.3: Viglacera Competency Needs Analysis .................................................... 61
Chart 5.1: Viglacera business development strategy for 2010-2020 ......................... 64
Chart 5.2: Viglacera Corporate Core Values ............................................................. 65
x
ABSTRACT
Like most businesses, middle-level managers at Viglacera are very important, which
help to achieve strategic objectives. Together with contributing valuable ideas to
company’s strategies, middle managers lead the functional team to implement
Corporation’s plan to real life. Therefore, managerial competencies are vitally
important to middle managers.
This research focuses on the gaps between current managerial competencies of
middle-level managers at Viglacera and the requirement from the top managers of the
corporation. It then goes further to propose solutions to bridge those gaps.
According to theories, managerial competencies are skills, knowledge, self- concept,
traits and motives of people in management aspect. At Viglacera, they are represented
by the 12 core competencies, which include: Business awareness, Leadership, Setting
priorities, Managing the team, Result orientation, Change orientation, Team working,
Ability to influence, Developing others, Face to face communication, Interpersonal
skill, Motivation skill.
By doing survey together with in-depth interview, this research will identify the gaps
between the requirements from top managers with the current managerial
competencies of middle managers at Viglacera.
The research, then would propose suitable solutions, which help to bridge those gaps.
Hope the research result can contribute to the HR strategy of Viglacera.
xi
CHAPTER 1.
INTRODUCTION
BACKGROUND OF THE RESEARCH
Established since 1974, Viglacera is a State Owned Enterprise (SOE) operating in
construction industry under management of Ministry of Construction. Viglacera is in
the stage of organizational reengineering and privatizing to cope with the economy
integration trend in the whole nation. Changing to joint-stock from wholly state
owned enterprises, the Corporation will be challenged by lots of difficulties:
competition, social and political changes, inefficient working system and last but not
least the quality of the workforce. With over 15,000 emplyees, Viglacera is one of the
biggest SOEs in Vietnam, following is the organizational structure of the Corporation:
Board of Director
Control Board
Board of
Management
Admin
IT Support
Legal &
Corporate Affairs
HR
Trading
Finance & Planning
Production
Land
Production Management
Branding
Accounting
Project Development
General Affairs
Import Export
Internal Control
Economic
Project
Planning
Source: Viglacera HR department
In the chart above, Top Managers are:
Board of Directors: President, CEO, Union Chairman
Control Board: 3 members reporting to President
1
Board of management: CEO and assistant CEOs
There are total 13 Top Managers at Viglacera as of now.
Middle Managers are:
Managers and Assistant Managers of functional departments / units
Director, Vice Directors of subsidiary companies
There are about 200 Middle level Managers working at Viglacera under supersision of
13 Top Managers, those in turn under management of Ministry of Construction.
Like other SOEs, at Viglacera Customer and Employee satisfaction; efficiency and
productivity; stability and development of the organization are overall responsibilities
of Top management board. To do those, they normally delegate to middle-level
managers, who make policies, programs and processes (methodologies) implemented.
Middle-level managers role is to interpret and represent the established management
policy and make it alive to their reporting managers and their staff. They are key
persons in communicating and tracking different kinds of goals and in making
information flow up and down. In order for middle-level managers to fulfill their
jobs, they must have sufficient competency but do they have it already? recently a
big question at Viglacera. Nevertheless, Viglacera Top management board want to
know the answer for each middle-level manager and for each of the 12 core
competencies mentioned earlier. If the answer is “No” somewhere then the gap
training will be needed. The author was working for a training institution of Viglacera
so this research is very much relevant to the author’s job and in line with the
corporation HR development strategy.
Deeply understanding this situation, the Top Management Board of Viglacera cared
much about how to train and develop middle managers to fit with the development
plan of the Corporation in the next coming years. Viglacera placed middle
2
management force at the central point of long-term human resource strategy. But, as a
fact, performances of the whole Corporation as well as of the Middle Managers were
still under expectation of the Top Management Board. “Why?”. It is still a big
question at Viglacera as no official research has ever been conducted.
Based on the hope to contribute to answering the above question, this research focuses
on managerial competencies of middle managers, to clarify whether they are under
qualified or the senior expectations too high.
The result of the research will help the Board of Management define the strategy
decision on middle management development. It may be training or non-training
solutions, even reconsidering the expectation.
STATEMENT OF THE PROBLEM
Company profile
Established since 1974 through 38 years of development, Viglacera have been
transformed from a traditional brick and ceramics manufacturer to become a state
owned multi-sector group of 41 subsidiaries and affiliate companies nationwide with
more than 15,000 employees.
Vision: Become a leading group of building material manufacturer and real
estate developer in the Asia Pacific Region.
Mission:
- Provide high quality building materials to customers;
- Develop premium industrial parks and living towns;
Turnover
500 USD Million
Average growth
20%
Exports turnover
30 USD Million
Product Exporting to
40 Countries
Total Industrials Area
2.000 ha
Source: Viglacera Corporate Finance
3
Organization structure
Viglacera
holding
company
Production
9 terracotta
3 glass producer
4 sanitary ware & fitting
3 granite & ceramic tiles
5 others
Trading
Land
2 subsidiaries
and 2 Branches
7 subsidiaries
Others:
Training Centre
Labour Export Centre
Financial structure
41 Member company & Associated with
more than 15.000 employees.
11 Associated
Companies
18 Subsidiary
Companies
Parent Company and
12 companies
to
Marketing
policy
depend on accounting.
Companies to depend on – The
capital rate of Parent Company is
100%
Subsidiaries - The capital rate of
Parent Company is ≥51%
Associated Companies - The
capital rate of Parent Company is
<51%
Source: Viglacera Corp. HR
Marketing policy
To maintain the growth rate approximately at 20% per year; to become multinational
company; to dominate domestic market and increase export to foreign markets.
Production policy
To develop premium quality products and services, difficult to clone providing added
values to customers.
HRM policies
To provide a workforce to enable Viglacera to become a globally competent, skilled
and competitive leader in the construction and manufacturing industry.
4
Finance policy
To become a sustainable development company with financial status sound and sight.
SWOT Analysis in HRM
Chart 1: Viglacera Competitive Advantages
Source: Viglacera Corp. HR.
5
Opportunities and Threats in HRM
Table 1-1: Opportunities and Threats in HRM of Viglacera
Opportunities
Threats
Easy to get knowledge exchanged
because of globalization
Supply of labor force increased and
penetrated to regional market
Market information is more transparent
Recruitment
service
significantly
improved
Demand of labor keeps increasing
andrecruitment competition among SOE
& FDI more fierce
Salary keeps increasing
High rate of turnover especially in
technical worker positions
Lack of skillful workers esp. those who
have occupational competency
Candidates become more and more
demanding
Source: Viglacera Corporate HR
Strengths and Weaknesses
Table 1-2: Strengths and Weaknesses in HRM of Viglacera
Strengths
Weaknesses
Leader team are young and well trained
Modern and Good Organizational
Structure
ISO certificate in business management
Performance-based
pay
motivation for employees
creating
Paper work environment – time
consuming
Recruitment brandname not strong
Team work and leadership mind set
Cadre rotation slow & not proactive
Unity Environment
Source: Viglacera Corporate HR
What are the objectives of the research?
Recently, Viglacera is doing very well, it achieves its target set by the Government
every year despite a lot of difficulties caused by the world economic crisis. However,
6
Viglacera still does not meet its stressed target of 20% revenue growth rate per year as
expected by Viglacera stake-holders and Top management board. The main reason
suspectedly come from competency weaknesses of human resource especially from
the middle level manager force. Deeply analysis needs to be taken out to identify
specific weaknesses in 12 core managerial competencies then find out solutions to
improve the weaknesses. Also there must be an analysis on the impact of middle
manager competency to the operation result of the Corporation. The impact should be
analyzed detail enough to point out the weight of each competency or in other words
what are the key competencies that need to be addressed first. This will make the later
recommended solutions more convincible and help Viglacera to prioritize and
implement the solutions much more effectively.
Being connected to human resource developing strategy of the company, the aim of
this research is to analyze the managerial competencies of middle managers at
Viglacera. The outcome of the research will help clarify the gaps between current
managerial competencies and the senior’s expectations; and what solutions should be
applied to overcome the gaps;
Research objectives:
1. To identify required managerial competencies from top managers on middle
managers at Viglacera;
2. To assess the current managerial competency level of middle managers at
Viglacera, then to find the gaps between current and required managerial
competencies of middle managers at Viglacera; The impact of each competency to
Viglacera performance also be analyzed and weighted so that the later proposed
solutions will be more concrete and effective.
3. To recommend the solutions to bridge the identified gaps.
HYPOTHESES
Despite the fact that middle-level managers at Viglacera are fulfilling well their
current job, their competencies seem to be still lower than that the top managers
expected.
7
There are 2 possible reasons for the situation. The first, the merging of different
entities has been gathered differently competent people in one organization. They then
have to present their competencies under different points of view from different top
managers. The second, top managers always prepare for the future. So what is
expected by them is higher than those required in real life.
To resolve the issues, the 2 groups of solutions would be proposed, include training
and non-training solutions. The training solution includes courses to improve
competencies of middle managers and to equip them with continuous learning
attitude. The non-training solution includes strategic detailed solutions. All of those
aim to strengthen the human resource developing system of Viglacera.
SIGNIFICANCE OF THE RESEARCH
-
To the management of the company:
Firstly, the research will provide Viglacera BOM with a significant overview of their
HR force. Secondly, based on the research result executive management will be able
to work out what need to be done to improve quality of their HR force. And last but
not least, the research provides recommended solutions for improvement.
-
To the customers and investors:
The research can help improve the company image in customer’s mind and thus
increasing customer’s loyalty in doing business with Viglacera.
-
To future DBA students / Researchers:
This study can serve as benchmark information for related studies
-
To the Researcher:
This work is a test of my knowledge in business and my ability to engage in a
research work
8
SCOPE OF THE RESEARCH
The objects of the research include managers / deputy managers of functional
departments at corporate office, and those of dependent subsidiaries. Due to time
constraint the primary data shall be taken from only 13 top managers and 150 middlelevel managers. The research is limited to business strategies for 10 year period from
2010 to 2020. The research does not cover independent companies within and/or
outside Viglacera group, so it is limited in the following range:
-
Corporate offices:
o CEO assistant and secretaries;
o Corporate Human Resource;
o Corporate Accounting and Finance;
o Corporate Investment and Development;
o Corporate Production division;
o Corporate Real-estate management division
o Corporate Trading division
-
Dependent subsidiaries:
o Viglacera vocational college
o Viglacera R&D Institute
o Viglacera Training & labor export center
o Viglacera faucet company
Also due to time constraint the research was limited in 12 core managerial
competencies classified as Generic/Basic competencies only. It was not extended to
Professional competencies that differ from job to job.
DEFINITION OF TERMS
Competency - all the factors inside each person (including motive, character, skills,
image, social role, knowledge) which effect on performance of a specific job
9
- Xem thêm -