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HUMAN RESOURCE MANAGEMENT

ASSIGNMENT

Professor: Dr. Hung Pham


Name: TRAN THI HA THANH
ID No:

CGS00017332

Class: MBAOUM0314 K13A

CONTENT

Professor: Prof. Nguyen Phan


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EXECUTIVE SUMMARY
CHAPTER 1: INTRODUTION
1. About Vietcombank
2. Vietcombank Ho Chi Minh City Branch
CHAPTER 2: REALITY OF HUMAN RESOURSE IN VIETCOMBANK HO CHI
MINH CITY
1. Reality of HR inVietnam
2. Organization and training of VCB
3. Human Resource in risk management department
3.1. Function of risk management department
3.2. Some problems
3.2. Consequences
CHAPTER 3: SOLUTIONS TO PERFECT TRAINING PROGRAM
1. Orienting development of Vietcombank Ho Chi Minh City
2. Training solutions to the risk management department
3. Training program
CONCLUSION

EXECUTIVE SUMMARY

Human resource is a pillar of business operations, human resource abundant and high quality
is the key factor determining the success of enterprises. Enterprise with modern technology,
good service, solid infrastructure, but if the lack of sufficient number of employees and the
enterprise level it is difficult to survive and build long-term competitive advantage. Human
make differences between firms. However, as a factor of production and business activities of
enterprises, human resource management should be a reasonable way to be able to leverage
its full potential. Based on such an objective, the document includes the following contents:
-

Introduction about Vietcombank Ho Chi Minh City and Risk Management

Department.
Overview of the human resource in Vietcombank Ho Chi Minh City and Risk

Management Department.
Some problems in Risk Management Department that not meet banks requirements.
Finally is solutions to perfect the training program.

CHAPTER 1: INTRODUTION

1. About Vietcombank:
Vietcombank the full name is Joint stock commercial Bank for Foreign Trade of
Vietnam is the first state commercial bank chosen for pilot privatization by the Government.
Established in 1963, Vietcombank (VCB) is now among the biggest commercial
banks in Vietnam, with an extensive network of nearly 400 branches, transaction offices,
subsidiaries and representative offices in and outside Vietnam, and more than 1,700
correspondent banks in 120 other countries and territories in the world. Being a universal
bank with strong advantages in retail, wholesale, and investment banking, VCB is always
ready to satisfy its customers with a wide variety of financial and banking services, both
traditional and modern, at the highest quality. During more than 50 years of development,
VCB has contributed significantly to the stability and growth of national economy, upholding
the role of a major foreign trade bank in facilitating efficient domestic economic growth as
well as influencing considerably on regional and global financial community. VCB is also the
first and so far the only Vietnamese bank that made its way into the first 500 group, being the
445th, in the latest Top 1.000 World Banks 2013 ranking announced by The Banker in July
2013. For more than a decade, Vietcombank (VCB) has continuously rated as "Best Bank in
Vietnam" by prestigious institutions around the world on many important operation fields.

2. Vietcombank Ho Chi Minh City Branch:


Vietcombank Ho Chi Minh City (VCB HCM City) Branch is the part of Joint stock
commercial Bank for Foreign Trade of Vietnam. VCB HCM City Branch is at 10 Vo Van Kiet
street, Nguyen Thai Binh ward, 1 distric.

The bank have more than 300 people with 52 departments include 31 transaction
officers in over the city. This is the biggest branch of Vietcombank in Ho Chi Minh city.

CHAPTER 2:
REALITY OF HUMAN RESOURSE IN
VIETCOMBANK HO CHI MINH CITY

1. Reality of Human Resource in Vietnam


Acording to the results of survey reality HRM Vietnam in 2011 showed that personnel
costs account for a very low proportion of revenue and cost of business (under 5%). Besides,
the average labor productivity of workers in sales and profit was lower (about
6500USD/person /month in revenue and 1200 USD/person/month for profit), while wages are
increasing problems fast (average 18%/year). This shows that the rapid growth of the
business (an average of 42%/year) are based on low-wage workers. Survey report on the
status of HRM Enterprises Vietnam showed that only 3% of companies with ties to the school
in recruiting. In addition, many businesses oblivious to the human quality from newly
graduated students. Businesses belive that they must take a long time to train graduates from
basic skills such as word processing, email, to communicate, style ...
High quality human resources become increasingly scarce and expensive now.
Fluency in English allows students to graduate quickly and wage employment is almost
double compared to human no English. However, the outcome of the majority of university
Vietnam is far from standardized communication proficiency. Currently, individual survey
showed that less than 5% of college graduates Vietnam's level of English IELTS 5.5 or
higher.
Schools and businesses must have embarked together to improve quality. Enterprises
complain of critical and academic quality of the school, while the lack of responsibility for
the training of manpower. The school can not vocational skills training for students without

the cooperation of enterprises. Whenever enterprises receive real use of internship students,
the quality of graduates will be improved and we will have hight quality workers for social.
2. Organization and training:
- Organization of Vietcombank:

Organization of Vietcombank

- Training of Vietcombank Ho Chi Minh City:


Training structure
1. Type of labor
- Management
- Labor
2. Forms of training
- Regular training
- Self-training
3. Training content
- Soft skills and management
- Enhance professional

2011

2012

2013

22
195

54
209

87
293

66
151

145
218

211
269

35
71
104
82
192
276
(Source: Organization and Administration department)
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3. Human Resource in risk management department


3.1. Function of risk management department:
In the course of their operations, banks are invariably faced with different types of
risks that may have a potentially negative effect on their business. Risk management in bank
operations includes risk identification, measurement and assessment, and its objective is to
minimize negative effects risks can have on the financial result and capital of a bank. Banks
are therefore required to form a special organizational unit in charge of risk management.
Also, they are required to prescribe procedures for risk identification, measurement and
assessment, as well as procedures for risk management.
The risks to which a bank is particularly exposed in its operations are: liquidity risk,
credit risk, market risks (interest rate risk, foreign exchange risk and risk from change in
market price of securities, financial derivatives and commodities), exposure risks, investment
risks, risks relating to the country of origin of the entity to which a bank is exposed,
operational risk, legal risk, reputational risk and strategic risk.
With such an important role, employees at risk management must shoulder a lot of
responsibility is important. In Vietcombank Ho Chi Minh city Branch, the risk management
department have more than 20 humans. However, the actually that personnel at this
department is not sorted correctly.

3.2. Some problems in risk management department:


- The young officials could not train to meet new needs. New graduates lack the
practical skills and knowledge in the field of training is not enough to meet.
- The managers have not the long-term vision. Operational risk management is new
and hardly taken into account when setting the strategy and business plan of the bank, not to

be involved and no voice in the decision making process of the bank. The Board of Directors
should be aware of the major aspects of the banking institutions operational risks as a
distinct category that should be managed, and it should approve and periodically review the
banking institutions operational risk management framework. The framework should provide
a firm-wide definition of operational risk and lay down the principles of how operational risk
is to be identified, assessed, monitored, and controlled/mitigated. Boards of directors have
ultimate responsibility for the level of operational risk taken by their institutions. The board
of directors should approve the implementation of an institution-wide framework to explicitly
manage operational risk as a distinct risk to the banking institutions safety and soundness.
The board should provide senior management with clear guidance and direction regarding the
principles underlying the framework and approve the corresponding policies developed by
senior management.
- The staff of banking and finance industry is slow to reform, little knowledge and
professional. An operational risk framework should be based on an appropriate definition of
operational risk which clearly articulates what constitutes operational risk in that banking
institution. The framework should cover the banking institutions appetite and tolerance for
operational risk, as specified through the policies for managing this risk and prioritisation of
operational risk management activities, including the extent of, and manner in which,
operational risk is transferred outside the banking institution.
- Remuneration policies and subsidies are not associated with risk management results
to motivate. Senior management should ensure that the banking institutions remuneration
policies are consistent with its appetite for risk. Remuneration policies which reward staff
that deviate from policies (e.g. by exceeding established limits) weaken the risk management
processes. Particular attention should be given to the quality of documentation controls and to
transaction-handling practices. Policies, processes and procedures related to advanced

technologies supporting high transactions volumes, in particular, should be well documented


and disseminated to all relevant personnel.
- No clear separation of roles and responsibilities of risk management activities. Since
a significant aspect of managing operational risk relates to the establishment of strong
internal controls, it is particularly important that the board establishes clear lines of
management responsibility, accountability and reporting. In addition, there should be
separation of responsibilities and reporting lines between operational risk control Risk
Management Guidelines for Banking Institutions functions, business lines and support
functions in order to avoid conflicts of interest. The framework should also articulate the key
processes the institution needs to have in place to manage operational risk.
- The lack of person because of status layoffs due to economic difficulties.

3.2. Consequences from the mismatch:


Failure to understand and manage operational risk, which is present in virtually all
bank transactions and activities, may greatly increase the likelihood that some risks will go
unrecognised and uncontrolled. Both the board and senior management are responsible for
creating an organisational culture that places high priority on effective operational risk
management and adherence to sound operating controls. Operational risk management is
most effective where a banking institutions culture emphasises high standards of ethical
behaviour at all levels of the entity. The board and senior management should promote an
organisational culture which establishes through both actions and words the expectations of
integrity for all employees in conducting business.
Due to the limitations on, and risk management in banking activities not really proper
operation and do not function properly in the process of bank management. The recent
violations of economic management and corporate governance in banks did the senior

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leadership of these organizations sued, arrested, wanted ... This situation is raised bells
province of corporate governance and risk management activities at the bank, not only affects
the organization, not only resulted in a number of implications for the social economy of
Vietnam, but also affecting directly to life of the strata.

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CHAPTER 3: SOLUTIONS TO PERFECT TRAINING PROGRAM

1. Orienting development of Vietcombank Ho Chi Minh City


Formerly a bank specialized in the field of foreign affairs, VCB was the first bank to
launch professional development "international currency traders,"now VCB brand after 50
years have been numerous clients in domestic as well as international trust options. Into a
new phase, the Bank is striving to become a financial conglomerate in 300 largest banks in
the world.
From a specialized bank serving external economy, the Bank has now become a
multi-bank, multi-sector activities, providing customers with a full range of financial services
leader in the field of trade international; in traditional activities such as venture capital,
capital mobilization, credit, project finance ... as well as the array of modern banking
services: foreign currency trading and derivatives, card services, banking electronic ...
Strategic orientation of business by 2020, alongside traditional wholesale segment, the Bank
continued to promote retail, banking toward the top of the retail services market, at the same
time every opportunity to promote and develop in-depth, quality and substance taken as
significant, towards the development of effective and sustainable.

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The Banker magazine has published the results of 1000 ranked the world's leading
banks (2013) - Top 1000 World Banks Ranking 2013. Accordingly, Vietcomabank ranked the
No.1 in Vietnam and 445/1000 in bank head world. (Source: http://www.tapchitaichinh.vn/)
Is a member of the Bank for Foreign Trade of Vietnam, Ho Chi Minh City Branch
have orient follow Vietcombank. In particular, continue to improve organization and risk
management through enhanced operational efficiency of all levels of the apparatus as well as
efficient coordination between departments; Gradually increasing the role of test apparatus,
control, internal audit; Improving risk management capabilities through the implementation
of comprehensive solutions, which focus on the completion of the measurement model, risk
management in banking activities; build a complete system of policies and risk management
tools unified, advanced; improve risk management culture; Ensuring the safety factor as
prescribed by the State Bank and step by step approach to international practices; Improving
the quality of human resources, seen as key step to innovate, create breakthrough; Enhanced
training and retraining staff; innovative recruitment, planning, appointed officials; ensure
transparency and arrange the right people, the right; Improve mobility for management
positions at all levels; Improving policies salaries, bonuses based on matching capabilities
and contributions of employees, motivate staff Vietcombank continued joint efforts for the
development effort of the bank.

2. Training solutions to the risk management department:


- Training qualifications for staff
- Develop strategy to develop human resources
- Diversification of training methods
- Attract Experts
- Participate in the financial and banking associations

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- Integration of the global financial

3. Training program
3.1. Identify training needs:
Identify training needs to identify, arrange the order of the objectives, deciding the
priority for each field or training objects. Identify training needs for each person: With young
people they need train skill, profession, experience Leaders need analyzing data, long-term
vision
Identify the training must be follow the principle SMART (Specific, measurable,
Achievable, realistic, timebases)

The goal of training in this department always include:


-

Understand the systems and procedures needed to track, monitor and manage these

risks.
Have an understanding of how the bank's capital is allocated to each of these risks

from both a regulatory and management perspective.


Excellent communication and customer service skills, as well as proficiency in math,
are necessary for all occupation levels in the banking industry.
Method to identify training needs:
- Interview survey methods
- Actual observation
- Methods of data analysis
- Methods of consultation
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Activities:
- Identify banks need
- Identify duty of labor
- Identify labors need

3.2. Design the training program:


- Building training programs: The training program is a system of knowledge will be
taught including content, time, training methods.

- Choice of appropriate training programs: depending on the training needs to choose


a suitable program. Demand can be soft skills or professional services, include:
The greater use of more highly automated technology which has the potential to
transform risks from manual processing errors to system failure risks, as greater reliance is
placed on globally integrated systems;
Growth of e-commerce brings with it potential risks (e.g., internal and external fraud
and system security issues) that are not yet fully understood;
Acquisitions, mergers, and consolidations test the viability of new or newly
integrated systems;
The emergence of banking institutions acting as large-volume service providers
creates the need for continual maintenance of high-grade internal controls and back-up
systems;
Engagement in risk mitigation techniques (e.g., collateral, netting arrangements,
asset securitisation and derivatives) by institutions to optimise their exposure to interest rate
risk, foreign exchange risk, price risk and credit risk, but which in turn may produce other
forms of risk (e.g. legal risk);

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Growing use of outsourcing arrangements and the participation in clearing and


settlement systems which can mitigate some risks but can also present significant other risks
to banking institutions.
Operational risk event types having the potential to result in substantial losses include:
Internal fraud. For example, intentional misreporting of positions, employee theft,
and insider trading on an employees own account.
External fraud. For example, robbery, forgery, cheque kiting, and damage from
computer hacking.
Employment practices and workplace safety. For example, workers compensation
claims, violation of employee health and safety rules, organized labour activities,
discrimination claims, and general liability.
Clients, products and business practices. For example, fiduciary breaches, misuse of
confidential customer information, improper trading activities on the banking institutions
account, money laundering, and sale of unauthorized products.
Damage to physical assets. For example, terrorism, vandalism, earthquakes, fires
and floods.
Business disruption and system failures. For example, hardware and software
failures, telecommunication problems, and utility outages.
Execution, delivery and process management. For example, data entry errors,
collateral management failures, incomplete legal documentation, unapproved access given to
client accounts, non-client counterparty misperformance, and vendor disputes.
- Choosing the place suitable: place to learn can be at the bank or other institutions,
depending on the ability of banks to meet and content of the course.
- Selecting teaching methods: depending on the content of training required by
appropriate to choice teachers. For soft skills training can invite faculty from the center soft

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skills training. For the program of professional training, teachers may be leading bank or
financial reporting senior staff.

- Preparation facilities, training information: preparation site academic, attendance,


furniture, teaching aids, time tables and evaluate ... Information for the content students need
to participate in the study.
* Motivate themselves to school: Bank support costs for learning, the good result will
be reward.

3.3. Evaluate the training program:


The system by Kirkpatric built in 1959, include 4 level:
- Reaction: learner satisfaction with the program? To measure the satisfaction of
training.
Evaluation at this level in order to understand the response of students to the course.
Through questionnaires to students with comments about the course. This is the most used
because it is easy to implement and easy to evaluate. The reaction of the staff to properly plan
needs more training.
- Learning: what students learn from the course? Test the knowledge
Study results are based on the knowledge and skills that students obtained.
Assessment to determine the extent to which employees can improve their knowledge and
skills in their work. Assessed through tests, teamwork, self-assessment ...
Usually evaluated through comparison between before and after the training staff in
the development of skills, expertise. The differences between the two period will reflect the
amount of knowledge learned.
- Change behavior: apply what they have learned on the job

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Employees apply their knowledge to work is the answer to the question of course was
how helpful in improving work efficiency. This assessment takes time, about 3 to 6 months
after the training will be assessed. The assessment should be carried out several times to
determine the overall change. This assessment is complex and difficult to implement, need
more time to collect and analyze data.
- Result: training program impacts how to organize. This level is the most important
because it is reflecting the results of the training process, the desired effect of business.
This level is difficult to assess because the most time consuming and funding to
collect data and analyze them. This assessment is difficult because many other factors
affecting the operation of the organization and the individual changes.

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CONCLUSION
The competitive pressures in banking are increasing the pace of innovation and the
complexity of the business. The need is continuous vigilance in internal controls and risk
management by the banks. Risk-management practices are also affecting the global financial
system.
Improving the quality of human resources of an enterprise is the problem of businesses,
schools, society, the state and the workers themselves. The trend of transition to the
knowledge economy requires an individual right to own stop learning new knowledge.
Any organization that wishes to obtain a staff of high quality in order to improve business
performance. During operation of the business always arise problems, so the training is
always needed and continuously. Training helps employees understand the work and the work
done efficiently.
Human resources is a key factor determining the development of the business. The
preparation of the human resource of high quality contribute to developing a strong financial
background. well as human resource management will ensure the sustainable development of
enterprises.

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