DEVELOPMENT INVESTMENT CORPORATION – ONE MEMBER LIMITED
LIABILITY COMPANY - 2015”
ISSUES TO STUDY
1. Theory basic human resource planning
1.1. Concept of planning human resourcec
Planning human resource is a process of research, determination of human resouce
demand and implementation of programs, activities to ensure company having
sufficient human with suitable qualification, skill to carry out the work prodcutivitly
Planning human resource is often specified by short-term and long-term plan for
human resource. This plan can be flexibly adjusted in accordance with business’s
change. The effectiveness of the human resource planning strategy depends on the
compliance of human resource strategy with the overall business’s strategy such as
marketing strategy, new product strategy ...
1.2. Major reasons for development of human resource in company
1.2.1. Ensuring human resource to meet requirement of number and structure:
In terms of human resource number, the first question to be named is how many
people will leave and come to company in the future and this question is used for
determination of human resource number. For ensuring structure and number of human
resource, company should conduct well human resouce planning and and labor recruitment.
a. Human Resource Planning
Human resource planning is a process of deployment and implementation of
planning for human resources to ensure that there are sufficient labor, good quality to be
arranged for the work once required on time and on place. That is an assessment process,
identification of human resource demands to meet the company business goals and also a
make of human resource plan to meet such demands.
b. Labor recruitment
Labor recruitment is an important issue among human resource management that
includes following activities: job analysis, recruitment and selection of employees to ensure
the quantity and quality of labors in accordance with company business development.
1.2.2. Improving quality of human resource
On the basis of current human resources, company business shall maintain its good
human resources and also find ways to improve quality of current human resources
a. Review work performed by employees
The review methods are often used as: scoring method alternated ranking method,
pair comparision method, behavioral observation methods, Objective management method.
b. Training and development of human resources
1.2.3. Efficient use of human resource
Development of human resources has close relation to efficient use of company
human resource. The efficient use of human resources is based on good allocation and
cooperation of labors.
a. Allocation of labor
Currently, there are three common types of labor allocation in company as follows:
+ Functional allocation of labor
+ Profesional allocation of labor
+ Allocation of labor following the complexity level of job.
b. Cooperation of labor: Nowaday, there are two types of labor cooperation in
company such as:
+ Cooperation in space aspect;
+ Cooperation in timme aspect;
1.2.4. Due care of settling social regimes for employees in order to create motivation and
encouragement of work
a. The material wage: basic salary, allowance, bonus, welfare.
b. The un-material wage: promotion, good condition and environment for working.
Factors impacting to company developement of human resource
1.3.1. Outside factors
a. Diversification of labor
Current workforce includes many elements coming from different locals, regions.
They differ in religion, educational level, ability, age ... Therefore, when the labor workforce
is an increasing diversification, the management of human resource in general, the
development of human resource in particular become more complexity.
b. Education - Training quality of labors before being recruited into the company will
decide the development policy of human resource in the future.
c. The development and change in science, engineering, technology dramatically
affect the human resource of an enterprise. From that it also affects the company’s
development policy of human resource because the workers themselves, rather than the
other ones will have to acknowledge, master the advances of such science and technology in
order to apply them into the works and then serve for the development of company’s
d. Economic chanlenges
The economy has experienced profound changes in addition to the spread of
globalization trend has forced companies to change to adapt to these changes, to make
business decisions more productively and effectively. It could restructure departments’s
personnel to reduce costs. Besides, they also attract qualified managers having higher
professional with higher wages.
e. Goverment’s training policy and development of human resource: whe the later
issued policies have changes; the company must change its policy of human resource
f. Labor market signal
Labor market signals are information flow obtained from the labor market, including
messages, news, or indicators such as wages, employment, unemployment ... displaying the
status and trends of the labor market. When these signals are collected periodically,
analyzed systematically, they will form a labor market information system and impact to
company’s policy of human resource development.
1.3.2. Inside factors
a. Company’s demand
b. Organization structure, company’s business scale
c. Factors that belong to employee and managers
1.4. Forecast company’s human resource
Company’s demand of human resource is the need of entire workforce required for
implementation, completion of business tasks (production-business plan) and further tasks
- The identification of company’s human resource demand starts from business
strategy. Company shall make a specific production – business plan basing on the required
labor (determined by machine and technology and labor’s qualification), the retiring
replacement... to calculate manpower needs. From that manpower needs and human
structure, company will determine the need to recruit and training needs for themselves.
- Human resource demand must represent in the number and proportion of labor
workforce (human structure). The level of current labor structure meeting requirement
comparing labor structure must be required for implemention and completion of shor-term
and long-term company’s tasks shall be determined as human quality.
Map for determination of company’s human resource demand
Company’s business Strategy
Detailed business plan
Equipment / Machine
available for production
Demand of labor for replacement
of retired people, leaving labors
and on-training staff
Current labors who meet requirement
including leaving and on-training labors
Basic for planning human resource
Job analysis is understood as a process of defining a system of tasks and skills
needed to perform the job in an organization. Job analysis is considered a basic and most
important tool for human resources management. It is a base for implementing all human
resource function within company. Since, the first basic e of human resource planning is the
When conducting job analysis, management administers must answer the following
What kind of job do the employees do?
When is job completed?
Where is job implemented?
How did the employee implement the work?
Why do they need to do that job?
What are requirements for doing that job?
Some criteria to review the efficiency of human resource use
Average working productivity criterion
Average working productivity is a specific production capacity of individual labor. It
reflects the result of individual labor’s production activity in a certain time unit.
This indicator is defined by the formula:
W = Q/T
W – Average working productivity of a labor.
Q – Total output in production.
T – Total labors.
Average labor productivity criterion is a basic important quality indicator in basic
company’s business processes. This criterion also assesses the level of labor during
1.6.2. Efficient use of wage expenses criterion
This indicator is defined by the formula:
HQtl = M/QL
HQtl – Efficient use of wage expenses.
M – Turnover.
QL – Wage fund.
This indicator reflects that in order to earn a unit of sale, how much money company
pay for wage. The greater index is the the higher efficiency.
1.6.3. Wage productivity criterion
This indicator is defined by the formula:
H = LN/QL
H – Wage productivity.
LN – Profit.
QL – Wage Fund.
This indicator states that a unit of money paid for wage created how much profit.
Efficiency wage shall increase when labor productivity increased at a higher rate of wage
1.6.4. Staff’s profitable capability criterion
The average profit of an employee in company is one of the important indicators to
evaluate the company’s effective use of labor. A company makes an effective business when
it creates more sales, more profits.
This indicator is defined by the formula:
H = LN/NV
H – Staff’s profitable capability.
LN – Company’s profit.
NV – Average number of labor
The higher indicator is the higher labor efficiency and vice versa.
The formation and development of Urban Development
Infrastructure Corporation (UDIC)
• Corporation Name: Urban Development Infrastructure
Address: 27 Huynh Thuc Khang – Dong Da District- Hanoi.
Tel: (84-4) 3773 3625 - Fax: (84-4) 3773 1544
2.1. Formation History
Urban Development Infrastructure Corporation – One member limited liability
formerly known as Foundation Backfilling Company under Hanoi Construction Department
was established under Decision no. 2639 / QD-UB dated 06/10/1971 of Hanoi People's
On 13/04/1990 Hanoi People's Committee issued Decision No. 1740 / QD-TC,
changed Company’s name from foundation backfilling to Construction Engineering
Infrastructure Company. After six years of operation, the company continues to be renamed
as the Urban Development Infrastructure Corporation.
According to Decision No. 111/2004 / QD-UB dated 20/7/2004 of the Hanoi People's
Committee, the Urban Development Infrastructure Corporation was established in form
parent company – subsidiaries which based on reorganization of the Company with the
inclusive of members (subsidiaries) from State-owned enterprises, joint stock company, the
joint venture company under Hanoi Departments of Civil Engineering, Transportation,
Industry and Union of Import-Export Company (Unimex).
In Decision No. 3462 / QD-UBND dated 13/07/2010 of Hanoi People's Committee
and the Business Registration Certificat no. 0100106232 issued by the Department of
Planning and Investment in Hanoi on 04/7/2011, Urban Development Infrastrucutre
Corporation was renamed as Urban Development Infrastructure Corporation – One
member Limited Liability Company.
2.2. Organization chart
Assessment of current human resources in UDIC
3.1. Assessment of Corporation’s human
resource on number and structure
a. Assessment of Corporation’s
human resources on number showed that
employee numbers had gradually increased
over the years, from 1,400 in 2012 to 1,650
2013 and 1,855 people in 2014. The
average growth speed is 15.10% / year in
b. Assessment of Corporation’s human resource on structure
* Structure of labor following nature of work
Company’s labors mainly include direct labor working on project sites, there are
1,320 people in year 2012, accounting for 94.29% of total; 1,550 people in year 2013,
accounting for 93.94% of total and 1,728 people in year 2014 accounting for 93.15% of
* Structure of labor following age
Company’s labors have wide age range, varying from 18 to over 55, young workers
from 24 to 35 years old accounting for largest proportion has increased from 2012 to 2014.
In year 2012, employees from 24 to 35 have 882 people, accounting for 63.00% of total, in
year 2013, there were 1,132 people accounting for 68.61% of total and in year 2014, there
were 1,337 people accounting for 72.08% of total.
* Structure of labor following working seniority
According to working seniority, there is a division of labor having seniority over 20
years, focusing on the number of managers and professional technicals existed since
establisment of company to date.
* Structure of labor following type of labor
Company’s labors could be classified following three main categories which are
management labor, professional- technical labor and unskilled workers. The number of
labor types has gradually increased over the years, in which un-skilled works was largest
proportion, with 1,320 people in year 2012, accounting for 94.29%, with 1,550 people in
2013, accounting for 93.93% and 1,728 people in year 2014, accounting for 93.15%.
3.2. Table: List of UDIC’s workforce level
Total of Labor
Over grade 5/7
Source: Administration Department.
4. Making human resource plan for UDIC in year 2015
Steps for human planning schedule:
4.1.1 Demand determination
Based on Corporation’s production and business strategy in 2015 as well as actual
situation in the factories, project sites, Management Board shall set up plan for human
resource demang for every year.
4.1.2. Demand Forecast.
Corporation divide the forecast process into three periods.
First stage of short –term labor forecast:
Step 1: Determine the workload required for implementation during planned period:
this could be done through the amount of product, sales...
Step 2: Determine the required labor for each type of work based on the use of the
From the volume of work and basing on labor norms, they calculate the total time
required to complete the work. Thus, they could determine the number of workers needed
for each job. Company could use the reulation to identify labor norm or they could calculate
by themselves to identify more correctly. Specifically as follows:
- For the production: they can calculate required time, the output so that it could be
converted into the labor consumption per unit of product.
Formula: T=∑ ni=1Qi*ti
T is total of hours (days) required for person to carry out the work.
Ti: neccesary time for production of 1 unit numbered i
Q: work volume numbered i.
N: types of produced production.
Then, number of labor required shall be:
Km: factor to increase work productivity.
T : average working time of person in planned year.
Tn: calculated by making table for recording working time of each
worker during working hours.
If basing on average working productivity: D = Q/W
W: average working productivity of labor.
Q: is volume of works or sales.
- For servicing work:
T: total required time.
Mi : number of equipment ordered i.
Ki: number of working shift of equipment ordered i.
Ti : required time for servicing equipment ordered i.
- Servicing level of workers
The number of workers serving one machine: D=M/Mpv*k
- For other works: For those workers, it will use the little conversion rate no change.
+ Using boundary standard methods:
Step 3: Calculate the number of managers in varied types.
To calculate the management persons, it is to use boundary standard method to
determine directly for each department, unit. The more complex function, the more people
required for department. However, if the company’s organization structure is not good, it
will make the unreasably increased forecast results, therefore, it is necessary to improve
organization structure prior to determining the amount of managers.
To calculate the management labors, company need to calculate boundary standard
management labors following formula:
Lqi: number of management labor type i.
Ty: working hours required work contents.
Step 4: Determine human resource demand in planned period.
Total of demand = demand of direct labors + Management labors.
To simplify the forecast work of human resource demand, in the condition that
company have stable production system and business, they could calculate the increasing
labors, since that it could calculate company’s total demand of human resource. The
advantage of this measure is simple, less expensive however its accuracy is not high.
First stage of medium – term labor forecast:
Medium-term planning of human resources from 1 to 3 years: during this period,
UDIC’s production and business plan was very clear through the certain project, the specific
work under construction, then medium-term planning of human resource shall mainly focus
on personel arrangement for projects, interal work within company. Therefore, Personnel
department shall be responsible before general director of the Corporation UDIC to make
this medium-term plan. The person directly responsible before general director is Chief of
personnel department. Regulation for making such pan shall be as same as making longterm plan, i.e the related professional departments have to provide information to personnel
department for making plan. The diferent features between making such plans are
mechanism relating loosening, therefore the coordination between other departments with
personnel department is not tight.
After receiving the relevant information, personnel department review actual
projects, consult with project managers about the specific labor variations, therefore,
medium-term plan is more accurate. Methods of this personnel planning is still based on
qualitative methods, although the work task could be analyzed because they are quiet clear
about number of project, production plan. Features of this medium term plan is to make plan
of personnel following projects which have construction period from 3 to 5 years. Based on
business and production plan, total value of production and cost estimate, they forecast
human resources demand, make planning for this period.
Based on long-term plan for human resource and mainly from short-term personnel
plan submitted by departments, Company review and make this medium-term plan. This
plan requires a relatively accuracy so that personnel department should pay attention on
developing this plan.
The forecast figures for this medium term is the sum of the experience of personel
department’s staff and information collected from team leaders. After completion of
medium-term plan for human resource, personnel department send this plan officially in
writing to other departments for consultation and finally adjusted to submit to General
director for approval. After that, this plan is sent to departments for implementation.
First stage of long-term labor demand forecast:
Every beginning January of year, starting new business plan or personnel plan of
Corporation, Directors have to send new human resource plan together with business plan
to Corporation. UDIC assigns personnel department to be mainly and directly responsible
before General Director for making plan of long term key personnel plan. The individual to
be mainly and directly reponsible before general directo is chief of personnel department.
At the same time, general director directly supervise the process of making plan for
long-term human resource, chasing personnel department for on time completion. Directors
also have the mandatory rules for related departments to be responsible for providing the
necessary information necessary for making plan of long-term human resources, for
example, departments have to send to personnel department reports about current
employees, estimated personnel require, number of labor to reduce, forecast future works,
plan for business expansion.
These are madatory provisions which main responsible persons are cheifs of
departments. At the same time, director is also responsible for providing plan of long-term
production, plan of business expansion so that personnel department could complete the
task. With the assigned functions, certain rights, personnel department can mobilize staff
from department to participate in the development of plan for long-term human resources.
Personnel department shall review figures and make plan for personnel in future.
They will not make plan for long-term human resource theorically following job analysis or
job performance review but mainly based on plan for production and business and based on
their experience to give the figures to be appropriate with the strategy of the business.
After completion of planning for long-term human resources, personnel department
send this in writing to director for approva and director send it to Board of management as
well as company’s departments. This plan will be review and adjusted following company’s
departments’ comments. After that, Corporation shall approve and accordingly the plan is a
base for UDIC Corporation to follow.
4.1.3. Forecast of human resource supply.
- Internal human resource supply: Build the capability to meet company’s human
needs. Under this step, they can use the information system of human resources to
determine the number of employees can meet the requirements. Information system of
human resource is a comprehensive list of information about all labors working in the
The assessment of strengths and weaknesses
The skills and knowledges.
Location and type of work being done
Seniority at the current position.
Seniority in the organization
Expectation of work and location.
Intended retirement date
Potential development and promotion possibilities.
History of wages and salaries.
The research on information system of human resource is essential for prediction of
internal labor supply. However, the management in big companies is very difficult,
therefore, company could divide information into two categories including skill and
management list in order to simplify administration.
- Outside human resource supply: Company simply determined that outside labor
supply is mainly based on public information such as the labor newspaper, employment
consulting services, professional training centers and recruitment centers for recruiting
required technical labors.
4.1.4. Method to balance Corporation’s human resource
a. In case of personnel redundance
Internal job arrangement;
b. In case of lack of personnel
Company will base on the recruitment requirement for recruting the neccessary labos
compliance with job requirement and working conditions ...
c. In case no excess, no shortage
There is a method to arrangement of internal labors to be compliance with their
4.1.5. Assessent method for improving quality of Corporation’s human resource
a. Job performance review
The company paid attentions on the review of job performance of each labor.
However, this evaluation has not been regularly carried out as it has mainly focused on
direct working labor. The evaluation was conducted quarterly and year-end for purpose of
considering rewards. Through the survey of completion level, most of labors have self
evaluated that themselve had completed work in range of good level (accounting up to
b. Training and development
Company’s leaders paid much attention on training and development task but its
planning had not been carried out properly and regularly. The training focused for some
highest managers. Technical experts, unskilled workers are mainly trained in professional
improvement. No position planning is made. Results of surveying the instruction for new
coming labors or starting labors showed that among 230 surveyed people, 203 answered that
they were instructed (accounting for 88.3%) and the remaining 27 (11.7%) responded that
they were not instructed specifically. In regard to training, through survey results, there were
17 responding that they had not participated in any training, accounting for 75.7% of the
respondents, 54 who have participated un-reglularly and only 2 persons were regularly
4.1.6. Implementation of social policies
* Wages, salary allowances, bonuses
In regard to wages, salary allowances, bonuses regimes ..., companies applied the
distribution method in paying salaries and wages to employees that followed job types,
positions. Survey results showed that ony 2.2% of surveyed staff feels satisfactory with
company’s current salary, wages and other benefits, 53.9% of that considered unsatisfactory and other 43.9% said that it is not appropriate.
4.1.7. Factors impacting to Corporation’s development of human resource
a. Changes in science and technology: In the today trend of integration and
globalization today, along with the strong development of information technology and the
important achievements of some technology industry, the process of globalization and
internationalization has made its advantage over the management transfer of management
skills that corporations in the construction field, including UDIC are requiring.
b. Laws environment
Law system Law, complicated international regulations...
c. Economic Environment
Expanding and developing international markets.
Expanding and developing domestic market.
d. The increase of competition level: In the general dificult situation, cost of
electricity, water, transportation...continuously change, high interest rate of bank loan, not
easily approaching to bank loan, construction companies need to have appropriate policies,
solutions for production-business management in order to enhance their business
competitiveness wtih other competitors.
4.1.8. Assessment of plan for human resource in UDIC
General assessment of the development of UDIC’s human resources
- Corporation’s human resources have a growth in both quantity and quality. Number
of employees has increased over the years from 2012 to 2014. Thus, development of human
resources in terms of the amount was initially to ensure the increase in the scale of
Corporation’s operations. In terms of quality, it also has increased, the direct employees
with educational level are relatively high.
- In recent years, awareness of the importance of human resources to the efficient
production and business operations has significantly changed. Corporation was interested in
and implemented recruitment more public and clearer than previous years. The recruitment
has focused on guiding the work, labor arrangements with professional excellence ...
- The quality of labors is generally not high, mainly unskilled labor. It can meet the
requirements for production, but in terms of development it has certain limitations,
especially in training, career development planning.
- No methodical recruitment process. No direction for planning staff at the
- Salaries and bonuses system have not really impacted to encourage workers for
better work and feel secured in work. There are some labors assigned not compliance with
their professional and capability. There is no frequent training and no suitable forms of
- Personnel department under administration unit does not have enough people to
carry out and advice sufficiently about issues for human resource development.
- No plan for development of human resources is made scientifically.
- No approriate investment policy for employees. Wage policy was not fairly
- Not yet build of Key performance indicators to assess each labor’s work carried out
- There is no policy to support training for managers
Solution for making plan for human resource in UDIC
4.2.1. Group of solutions for ensuring the number of human resource in Corporation
a. Perform well the planning of human resources. Based on historical data to forecast
manpower needs for the next year. Company’s manpower needs in year 2012 was 1400
people, 1650 people in year 2013, 1855 people in year 2014 and 2000 people in year 2015.
b. Set up new processes of recruitment and planning appropriate recruitment. Based
on careful analysis of human structure required to meet each unit, department, process of
recruitement is made accordingly.
4.2.2. Solution for professional development (staff planning) in Corporation
a. Set up model of professional development.
Principles of career planning by the Corporation is to combine the personal career
aspirations with opportunities available within the company. In particular, both individual
workers and supervisors share the work. Model of professional development for staff and
employees in the company may follow two directions as below:
b. Set up model of professional development
4.2.3. Group of supporting solutions for aiming to improve quality of human resource in
a. Solutions for training human resources in the company are to meet the needs of
professional development (planning staff) and improve existing skills in the company.
Identify training needs
To identify training needs, HR Administrative Organization need to carry out
surveys, comparison between tbale for sandard skills of job positions and assessment of
performing the actual work of each employee. It is used to prepare human resources in the
b. Improving the quality of job performance reivew of workers.
In order to implement good assessment, it is firstly to complete data about employees
in the Corporation; reinforce the evaluation board; build of assessment standard based on
job analysis table; combining many different forms when evaluating.
c. Build of specific training plan for each employee to perform good assignment.
Through survey, most of workers advised that corporations should have specific training
programs. The issued plans should be accordingly implemented.
d. Innovating training program, extensive, appropriate and effective training types for
improving professional skill and arrangement of working as team for unskilled workers.
e. Improving awareness of management skills
f. There should be a policy to retain and attract employees having good professional
and technical skills inside and outside Corporations.
4.2.4. Group of solutions for efficient use of human resource in Corporation
a. To complete the organization, arrangement of labors following sectors,
occupations, production teams.
b. To review indirect labor force in the company and appropriately arranged.
4.2.5. Group of solutions for enhancing motivation of employees
a. To complete the policies of material incentive for employees such as salary, bonus
and other welfare regimes.
b. To complete the policies of spiritual incentive for employees.
More than any other resource, people always take place as important position in the
social - economic development strategy of a country. People are both subject for service by
all social and economic activities and factor having a decisive role for the development of
society. Nowadays, the trend of globalization and the increasing competition, people are
considered as invaluable assets and the most basic elements affecting to the survival and
development of the organization. Though an organization has a rich financial resources,
abundant material resources, modern machinery system and high technical and scientific
formulas but without the efficient management of human resources, the organization will
find difficulty to develop. Therefore, the competitiveness of enterprises and organizations to
obtain high-quality human resources becomes ever more intense.
The organation management of human resources created culture, cheerful or stressful
atmosphere, gloom of that organization. Such operation environment is decesive factor of
the organization’s sucess. Therefore, human resource management plays an important role
in the operation’s management. None activity of the organization is effective without
management of human resources. The basic objective of human resources management in
any organization will be how to use human resources effectively to achieve organization’s
targets. Well recognizing this issue, the Urban Development Infrastructure Corporation paid
much attention on the management of human resources, especially to attract and maintain
strategic human resources, high-quality human resources.
1) Lecture of Human Resource Management,
2) Human resource management,2011, Associat Professor – Dr. Tran Kim
Dung, Ho Chi Minh City General Publisher.
3) Company’s human management Textbook – Dr. Do Van Phuc, Hanoi
University of Science and Technology .
4) Human Management Textbook – Department of economic and Human
resource management of National Economics University
5) Website: udic.com.vn