Training and development in small and medium enterprises at Hung Yen
HỘI THẢO QUỐC TẾ: PHÁT TRIỂN
DOANH NGHIỆP NHỎ VÀ VỪA CỦA VIỆT NAM TRONG BỐI CẢNH CUỘC CÁCH MẠNG CÔNG NGHIỆP 4.0
TRAINING AND DEVELOPMENT
IN SMALL AND MEDIUM ENTERPRISES AT HUNG YEN
Nguyen Quoc Phong and Nguyen Thi Minh Ngoc and Do Thi Hanh,
Hung Yen University of Technology and Education
Abstract:
Human resources is an important factor in an organization. For companies to keep
improving, it is important for organizations to have continuous training and development
programs for their employees. Competition and the business environment keeps changing, and
hence it is critical to keep learning and pick up new skills. With the desire to understand the
current situation of training and developing human resources in small and medium enterprises,
the authors have conducted surveys to collect data at some small and medium enterprises in
Hung Yen province. Thereby, analyze and evaluate, make limitations and propose solutions to
improve the quality of human resources for small and medium enterprises in the near future.
Key word: Training and development, Small and medium enterprises (SMEs)
ĐÀO TẠO VÀ PHÁT TRIỂN
NHÂN LỰC TRONG CÁC DOANH NGHIỆP NHỎ VÀ VỪA TẠI HƢNG YÊN
Tóm tắt:
Nhân lực là yếu tố quan trọng trong quá trình phát triển doanh nghiệp. Để có được nhân
lực có chất lượng thì doanh nghiệp phải chú ý đến công tác đào tạo và phát triển nhân lực. Với
mong muốn tìm hiểu thực trạng công tác đào tạo và phát triển nhân lực trong các doanh nghiệp
nhỏ và vừa hiện nay nhóm tác giả đã tiến hành khảo sát thu thập dữ liệu tại một số doanh nghiệp
nhỏ và vừa trên địa bàn t nh Hưng Yên. Qua đó phân t ch đánh giá, đưa ra những hạn chế và đề
xuất các kiến nghị giải pháp nhằm nâng cao chất lượng nguồn nhân lực cho các doanh nghiệp
nhỏ và vừa trong thời gian tới.
Từ khóa: Đào tạo và phát triển nhân lực, doanh nghiệp nhỏ và vừa (SMEs)
1. INTRODUCTION
Small and medium enterprises (SMEs) plays an important role in the economic and
social development of a country. According to 2015 report, about the size of the employees,
433.674 enterprises accounted for 95% of the total businesses, contribute to over 60% of GDP
and create over 60% of jobs nationwide [7]. The statistical report from the Department of
Planning and Investment of Hung Yen province currently has more than nine thousand provinces
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registered businesses, in which nearly 90% are SMEs. Regarding the type of enterprises, there are
25% of registered companies, and 65% of limited companies and 10% of private enterprises [8]. The
SMES in the province have made efforts, actively grasped information, renovated the organizational
structure, invested equipment and modern technology, maintaining effective production and business
activities, in the period of 2011-2014, the value of industrial production increased average 10.07% /
year. Thus, it can be seen that most of the enterprises operating in Hung Yen province are SMEs.
The number of annual SMEs dissolved and stopped operating is very high due to many difficulties in
business. Besides of competition, market... SMEs also have many difficulties in human resource
management such as recruitment, management, development and training. To assess the current
situation of training and development in SMEs, the authors have studied the situation training and
development in Hung Yen‘s SMEs to find out the causes and limitations, thus suggesting some
solutions to develop human resources in the coming time.
2. THEORETICAL BASIC OF TRAINING AND DEVELOPMENT
2.1 Definition
There are many different views when researching on training and development like
author Jerry W.Gilley and colleagues (2002) refer to personal development, organizational
development, career development and career development management. According to David
(2009), training and development are activities related to supporting employees to develop the
latest skills, knowledge and abilities [2]. The author emphasizes the skill development of
employees through the training and development policies of enterprises. Swanson (1995) said
that "training and development is a plan to improve and expand the professional knowledge of
employees outside the scope of immediate work requirements". [first]. The author also
emphasizes on developing a professional development plan for future work requirements.
According to Le Thi Ai Lam (2003), "Training and development is the sum of organized
learning activities conducted in certain period of time to create a change in the professional
behaviors of employees "[4]. The author emphasizes organizational learning activities of
employees to change the consciousness of work behavior.
By training, employees can learn new information, new methodology and refresh their
existing knowledge and skills. Due to this there is much improvement and adds up the
effectiveness at work. Training and development in SMES is a subsystem of an organization
which emphasize on the improvement of the performance of individuals and groups. Training is
an educational process which involves the sharpening of skills, concepts, changing of attitude
and gaining more knowledge to enhance the performance of the employees.
2.2. Training and development programs
Research on training and development has had many great authors like Tran Xuan Cau
(2012), Nguyen Thi Minh An (2013), especially, Nguyen Thi Minh Nhan (2016), refers to the 4-
step process of training and developing in an enterprises including: Training need assessment;
develop training plan; implementation; evaluation after training and development [3].In the
article, the authors explain steps in the training and development process in an enterprise.
Training need assessment determines the quantity and quality of employees to consider
which are inadequate and missing due to what causes? What skill is currently available? The aim
is to identify the objects, content and training methods to improve the working ability of
employees.
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Develop training plan to concretize needs, determine objects and measures to implement
the objects. In this step, enterprises must determine the objects, content, methods, time and place
of training and development of employees.
Deployment of training and development: Enterprises can choose a program of internal
training and training outside the enterprise for new groups of human resources. Or human
resources are working on the basis of the planned plan.
Assessing the results of training and development helps enterprises assess the training
program's results in order to draw experience to overcome or improve the following courses. The
assessment can be done as soon as the course ends or is assessed annually through the
assessment of the progress of the staff from which the development policies are suitable.
2.3. Definition of small and medium enterprises (SMEs)
The most obvious feature of SMEs is the number of employees and small capital,
qualifications backward science and technology, weak management team quality, enterprises
have not paid attention to public works human resource development training. Therefore, SMEs
will be subject to great impacts from too. The process of international economic integration and
the industrial revolution 4.0 is taking place today. According to Decree No. 39/2018 / ND-CP
dated 11/3/2018 of the Government, SMEs in Vietnam must meet the criteria of number of
employees, capital, and assets, revenue is as follows:
Agriculture and forestry-fishery
product, Industry and
construction
Trade and services
Definitions
Number of
employees
Number of
employees
Revenue
Capital
Revenue Capital
≤ 10 ≤ 3
billions billions
≤ 100 ≤ 50
billions billions
≤ 300 ≤ 100
billions billions
≤ 3
billions
≤ 50
billions
≤ 200
billions
≤ 3
billions
≤ 20
billions
≤ 100
billions
≤ 10
≤ 10
Micro Firms
Small Firms
Medium Firms
≤ 100
≤ 200
≤ 50
≤ 100
Source: [Error! Reference source not found.]
3. RESEARCH METHODOLOGY
The duration of the survey study is from June 20, 2019 to July 20, 2019. The
organizations included in this research were selected from a random sample of 80 SMEs in Hung
Yen province, distributing survey forms according to convenience sampling method. 80 votes
were distributed based on the number of enterprises registered by location and type of business
(My Hao district: 12 votes, Van Lam: 13 votes, Yen My: 17 votes: TP. Hung Yen: 11 votes,
other districts 27 votes). Survey results collected 63 votes (78%), valid votes were 51 votes (81%
votes returned). Valid answer sheets are classified by the authors group and then used by
Microsoft Office Excel 2010 and statistical software to synthesize and analyze the results.
4. RESEARCH RESULTS
4.1. Characteristics of survey samples
Characteristics of the sample on gender, age, professional level, managerial position,
number of employees, type of business in small and medium enterprises (Table 1).
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Table 1. Sample characteristics
No. Respondents
Percentage of
Respondents
Male
37
14
51
73%
27%
Female
Total
100%
Age
Below 20
9
18%
37%
25-29
19
11
12
51
30-40
22%
>40
24%
Total
100%
Qualification
Post Graduate
2
14
9
4%
27%
18%
10%
41%
100%
University
Colleges
Intermediate
5
Others
21
51
Total
Workplace
Manager
23
12
16
51
45%
24%
Human resource Management
Other
31%
Total
10000%
Number of employees in the enterprise
Less than 10
From 11 to 100
Over 200
16
31
4
31%
61%
8%
Total
51
100%
Type of business
Joint Stock Company
Co., Ltd
14
24
12
1
27%
47%
24%
2%
Private
Other
Total
51
100%
Source: Primary Data
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Inference: up to 73% of respondents are male, female respondents focus on the group of
25-29 years old, accounting for 37% of respondents; 9 employees under 20 years of age have 9
employees, accounting for 18%.
Number of employees with professional qualifications from university or higher has 16
employees, accounting for 31%; Especially, the group of employees who have not been trained
for qualifications is 21 employees, accounting for 41% of interviewees.
The position of interviewees has 23 respondents who are managers accounting for 45%,
12 employees working in human resources account for 24% of the rest do other jobs.
In 51 survey forms, there were 31 votes (accounting for 61%) of small businesses, there
were 16 micro enterprises (equivalent to 31%) and the remaining 8% were medium enterprises.
Go back type of enterprises with 47% of enterprises responding to the type of limited companies,
27% of the remaining types of joint stock companies are private and other groups.
Through analysis of the sample of the authors, we found some following characteristics:
the sample focused on small and super small businesses; male respondents are more than
women; respondents who have not yet received a high degree of diploma training; the answer
group is under 30 years old.
4.2. Characteristics of SME’s human resources through surveys
20
18
19
16
14
12
12
10
8
6
7
4
2
0
Unskilled labor
Professional and technical
labor
Indirect labor and manager
Source: Primary Data
Figure 2. Showing numbers of enterprises with labor shortage according to target groups
Manpower characteristics and recruitment of human resources: SMEs surveyed face
difficulties in the recruitment of sufficient number of employees, up to 74,5% of the 51 surveyed
enterprises said they did not recruit enough production employees. In particular, a large focus is
on the common labor group of 19 businesses, followed by professional and indirect labor,
indirect labor and management activities (Figure 2). SMEs are always in shortage of labor due to
being unable to compete in attracting labor for large enterprises,
Characteristics of quality: SMEs are not only short of the number of employees but the
quality also not meet the work requirements shown in Table 1.
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Table 2. Quality of human resources in SMEs
Required Mean
Explain
Score
Score
Manager
Professional knowledge is suitable for management positions
4,25
3,24
3,46
3,94
Management skills: planning, leadership, decision making, job
assignment
4,32
4,87
Learning attitude, progressive
Indirect labor
Professional knowledge is appropriate for the main job
Skills to solve arising problems
Progressive spirit, careful, responsible
Technical labor
3,85
4,35
3,21
3,15
3,26
4,23
Professional knowledge suitable for work
Skills to solve arising problems
Learning attitude, progressive
4,12
4,02
3,52
3,14
3,21
3,85
Unskilled labor
Understanding of production characteristics of enterprises
Worker's health is guaranteed
3,28
4,32
3,98
2,48
4,21
3,29
Attitude and serious consciousness in work
Source: Primary Data
Variables are rated on a scale of 5 levels (1- very poor; 2- poor; 3- average; 4- good; 5-
very good). Through table 2, we realize that there is still a gap between business requirements
and the ability to meet the work of employees. In order to improve the quality of labor, SMEs
need to invest financial resources for human resource development and training.
4.3. Actual situation of training and development in SMEs
Through survey data (Table 3), 39 enterprises answered that their units do not have a
specialized department for group personnel. This focuses mainly on small and super small
businesses; There are 43 responses to the questionnaire that enterprises do not develop
annual training plans but still organize development training activities. This leads to the
effectiveness of low training, enterprises do not identify the training subjects (training
who?), The training content (what training?), When training? (time and place of training).
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Besides, the fact that up to 46 enterprises responded that they did not develop financial plans
for training and development also showed that the training has not been paid attention to by
SMEs. SMEs without the preparation for training lead to a weak of quality of human
resources in terms of quantity amount.
Table 3. Training and development policies in SMEs
Answer sheet
Yes
12
8
No
39
43
46
14
1, Does the company has the human resources department?
2, Has the company planned for training by year?
3, Does the company plan finance for training?
5
4, Does the company implement training and development activities?
37
Source: Primary Data
The SMEs who choose the form
75%
80.00%
of training and development are
60.00%
50%
common in their work with 46
48.4%
businesses (accounting for 90%), only
35.%
40.00%
10% of businesses have sent employees
18.8%
12.5%
20.00%
.00%
to participate in short-term training
programs outside enterprise. Subjects of
training are paid attention to
Micro
Small
Medium
In small and medium enterprises
(Figure 3), it is often the new recruiting
personnel, Working manpower needs
training to develop skills
Enterprises have training for new employees
Enterprises usually provide short-term training
courses for current employees
Source: Primary Data
Figure 3. Objects of training at work
Training and development programs are aimed at improving the quality of human
resources in the enterprise. The evaluation of the training program results for internal adjustment
purposes program content, methods and training subjects. Evaluation results after the programs
Training may be a feeling of appreciation for real results, it needs time to verify. Result The
survey of Table 4 on the content of training in the 6 interview indicators has 4 indicators of
association training import; troubleshooting training; knowledge training, intensive skills;
training on international integration has The average score is skewed to disagree (less than 4
points) which represents the digging content creation is not suitable or not designed to perform
in the training process although this is a necessary knowledge for business manpower.
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Table 4. Content and type of training developed in SMEs
Degree
Point
standard
deviation
medium
Training content
Orientation & Induction
4,22
3,65
0,74
0,88
Integration training (integration of work coordination with other
employees)
Skills Training
4,12
3,26
0,68
0,98
Training to handle arising problems and how to solve problems at work
Training knowledge, deep skills for manpower management, technical
manpower
2,83
2,01
0,74
0,89
Training on awareness of international integration and revolution 4.0
Type of training attended
Experienced employees with work instructions for new employees
4,52
3,52
0,78
0,83
Describe requirements, training content through simulations (text,
instructional videos….)
Training according to apprenticeship style
Rotate work
3,58
4,05
0,94
0,81
Dispatched to participate in outside training classes such as seminar,
short course
2,98
0,92
(points: 1- Absolutely disagree; 2-Do not agree; 3- Distract; 4-agree;5- Absolutely agree)
Source: Primary Data
Regarding the training method through survey results, we see that enterprises use two
main methods of mentoring, directing work from experienced employees and public circulation
job. These are also appropriate methods in training at the current SMEs.
60
50
40
30
20
Much better
10
0
Better
The better part
Not better
Source: Primary Data
Figure 3. Evaluate results after training and development in SMEs
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Through the survey results in Figure 3, the authors found that 100% of the responses
were better understood than the works, doing after training program; 39% answered that the
ability to perform the job better and much better; 51% answered that productivity increased after
training; 27% think I will stick with the company after the training programs and 18% of the
employees think progressively for the development of the company in the future. Thus, it can be
seen that most of the manpower is asked to evaluate the training program of the company, which
helps them to work better, more attached to the business.
4.4. Limit draws of training and development in SMEs
- Training and development has not been focused by SMEs;
- Limited attention of SMEs to training planning and finance planning is limited;
- Training programs and methods are still not efficient to particular employee;
- Training programs and methods are not suitable to all type of enterprises.
- The evaluation of the quality of the training program has not been concerned by SMEs
and has not yet built up a suitable assessment method.
4.5. Suggest solutions and recommendations
4.5.1. Some solutions
To improve the quality of the workforce, small and medium enterprises need to carry out
some of the following explanations:
Raise awareness of business leaders about corporate responsibility in training and
developing. The training and development not only meet the demand for quantity and quality of
human resources for businesses but also contribute to the improve the quality of the general
human resources of the country.
SMEs need to pay attention to planning in training and development. Training planning
to determine the time and budget for developing program content, methods and teacher selection.
Planning training and development needs specific months, quarters and years depending on the
needs of each business.
SMEs need to invest financial resources for training and development. The fact that
enterprises have not paid attention to the training and development is partly due to the fact that
enterprises have not developed financial plans for this activity.
The content of training needs to be richly diversified depending on the job position. For
those who are capable of acquiring limited knowledge and skills, it is necessary to develop
appropriate training methods in the form of mentoring, instructing work because with this
method, the trainee will see the change of the learner through the process of adjusting the content
and the method of teaching each subject.
SMEs need to develop a system of criteria to assess the quality of human resources after
training, the evaluation needs to be carried out with many different stages: evaluation in the
training process to capture learners' cognitive ability to timely adjust; evaluation after the end of
the course to reevaluate the entire curriculum; assess after a period of time at the end of the
course to identify changes in employee's knowledge, skills and behaviors learn.
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For SMEs when there are more than 100 employees, it is necessary to build a dedicated
staff to perform recruitment, development and training. evaluation …
4.5.2.Some recommendations
For local authorities: The provincial Employee's Committee should continue to
implement support measures for SMEs such as: projects to improve productivity and product
quality, goods of SMEs in Hung Yen province in the period of 2016 - 2020; strengthening
human resource development support through free training, training and training courses to
improve managers' capacity; review the network and focus on investing in the development of
vocational training institutions according to the approved plan; promote information to connect
labor supply and demand through job transaction floor to meet the quantity and quality
manpower for SMEs.
With the business association of Hung Yen province: it is necessary to accompany,
grasp and reflect in time the thoughts and aspirations to support enterprises in production and
business activities; issues related to labor law. Proposing proposals to the State management
agencies to solve problems related to the responsibility of employers and employees.
For employees: The process of self-development is not only the responsibility of the
business but also of the individual employees. They are the object of the training process, so they
need to be responsible for learning, improving their knowledge and professional skills to
improve productivity. business production efficiency for businesses and increase income for the
village dear.
5. CONCLUSIONS
The article has studied the actual situation of the quantity and quality of human resources
as well as the excavation work creating and developing human resources in SMEs in Hung Yen.
The authors found that the training and development of human resources in SMEs has not been
paid attention while human resources are an important factor to help enterprises reduce
competitive pressure, deal with the negative impact from the business environment. Through the
article, the authors have proposed 2 proposals and 7 solutions to help SMEs improve the quality
of human resources in the coming time. Limitations of the article: (1) the number of research
samples could not represent the SMEs (only 51 samples) and chose the favorable method, so it
could not be assessed the status of the population. he works on training and developing human
resources in SMEs currently now on;(2) no model has been developed to study the impact
between training and production efficiency after training, which will be gaps for further studies.
References
1. Swanson (1995), Human Resource Development and its underlying theory. Human Resource
Development International.
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2. David A. D., Stephen P. R., Wiley (2009), Fundamentals of Human Resource Management,
10th edition, page 33-36.
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5. Decree 39/2018 / ND-CP of the Government dated 11 March 2018, on "Detailed provisions
on some articles of the law to support small and medium enterprises".
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House.
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accessed on August 11, 2019
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