INTRODUCTION:
Phu
Yen Province is a coastal province in Southern Central Vietnam touching Binh Dinh
Province to the north, Khanh Hoa Province to the south, Provinces of Dak Lak, Gia
Lai to the west and facing the East Sea to the East. Although Phu Yen gets advantage
of diverse nature, it is still a poor province with slow economic development. With
its slow development of economy, the construction industry or real estate market
also have no considerable development compares to other provinces of Viet Nam. It
leads to business activities of construction material companies or suppliers don’t
develop dynamically.
Most
of enterprises are in small and medium size. Especially, in the field of supplying
construction material, many small and medium construction material suppliers has
been growing up from family business. Today, not only do construction material enterprises
of Vietnam face with many difficulties, but also do enterprises of Phu Yen province
also have the same situation due to partly influence of the world economic crisis.
Moreover, many small and medium enterprises grow up in a small province like Phu
Yen so the market share is big so private enterprises have to compete drastically
to survive. Especially, small and medium construction materials suppliers have a
lot of risks of corruption. For example, some have difficulties in raising capital,
which leads to corruption due to termination of constructive project without collection
or late collection of debt from construction. As a result, these suppliers corrupt
because they don’t have enough capital to manage or meet the demand of goods or
make payment for producers. Besides, most of construction material enterprises of
Phu Yen province grow up from family business so they don’t have any professional
skills or knowledge of business administration or financial management. They only
get experience time by time. As a result, their business cannot expand more professionally
with bigger size due to limit of future sight or worry about many difficulties in
expanding business size. In Phu Yen, there are only 2 or 3 enterprises of supplying
construction material develop with big size but their management still has a lot
limits as human resources, financial management, etc. Even they don’t pay attention
to promotion or advertise their products. Therefore, they cannot expand their business
beyond Phu Yen province and their revenue always limits in constant number day by
day. With difficulties mentioned above, the research of management practices of
construction material business is conducted to evaluate the management practices.
From that, detailed difficulties of this business will be found out so that solutions
will be suggested to develop well management of construction material business in
Phu Yen province in the fields of human resources, capital, operation and marketing.
REVIEW
OF LITERATURE:
Human
management is defined as ‘The process of analyzing and managing an organization’s
human resource needs to ensure satisfaction of its strategic objectives’ (Prachi
Singh, Shilpi Gupta, Komal Sahu, 2014) and ‘The policies and practices involved
in carrying out the “people” or human resources aspects of a management position,
including recruitment, screening, training and appraising’ (Uma M.H, 2014). One
of the important factors of Human resource management is that the connection between
human resource management and achieving an organization’s strategic goals. Besides,
performance management to which we might add other things, such as reward, job design,
employment (or ‘manpower’) planning, diversity management, equal opportunities and
employment relations.
Employment
process. One of the important factors of employment process is recruitment. It is
the process of attracting prospective employees and stimulating them for applying
job in an organization. Recruitment is the process of hiring the right kinds of
candidates on the right job. There are various methods of recruitment but for the
sake of simplicity, they have been categorized under two broad headings such as
internal Recruitment and external Recruitment (Vijay Kumar Shrotryia, Upasana Dhanda,
2018).
Induction
is "the process of receiving and welcoming employees when they join a company
and giving them the basic information, they need to settle down quickly and happily
and start work". (Bhamray Dushyant Motiram, Mehata Pallavi, Darekar Avinash
Bhaskar,2019). Also, although induction is employee centered, if it is designed
properly and implemented successfully the overall outcome will be the organization
meeting its own needs.
The
Importance of Induction is that there are many reasons why effective induction programs
are important in organizations. They include ensuring a smooth transition from being
a new employee to being one of the established workforces, creating a positive bond
between the new worker and the organization and helping the new employee to reach
acceptable levels of performance quickly. Other benefits include "a more settled
employee, a more effective response to training, lower employee turnover, and improved
employment relations" (A Ranjith Kumar Reddy, B Raja Shekar Rao, V Veena, R
Sathish Kumar, 2015). During the induction period, organizations and new workers
start relationships which are hugely important in benchmarking standards to be observed
and behaviors to be learned and accepted. This is all part of the organization’s
culture and the intention should be that the process is cyclical i.e. new employees
should be inducted in a way that is perpetuated and returned to the organization’s
culture (M. Nisha, S. Poongavanam, 2017). There are many new people to meet and
information and new ideas to absorb, this is increasingly so if the new starter
is changing industry or relocating for employment. It is also highly likely to be
a fairly unproductive time for the new employee. Because recruitment is so expensive,
it is desirable for organisations to bring new employees to high levels of output
as soon as possible. Another important aspect to induction is the necessity to ensure
that new employees assimilate socially. The success or otherwise of this can be
partially dependent on the personality of the new starter. Some individuals are
more introverted than others and this can delay their integration.
Essentially,
training and development programs that covers both job-related skills and general
skills such as interpersonal skills, communication skills, etc., have been argued
to be an avenue to reduce turnover rates and increase productivity (Monalisha Patel,
Sunil Dhal, 2017)
As
we know that training and development refers to the process to obtain or transfer
KSA (knowledge, skills and abilities) needed to carry out a specific activity or
task; therefore, benefits of training and development both for employer and employees
are strategic in nature and hence much broader. In order to meet the current and
future challenges of our business, training and development assumes a wide range
of learning actions, ranging from training of the employees for their present tasks
and more so, knowledge sharing to improve the business horizon and customer’s service.
It also focuses on their career development, thus expanding individual, group and
organizational effectiveness. A comprehensive training and development program help
in deliberating on the knowledge, skills and attitudes necessary to achieve organizational
goals and also to create competitive advantage (Pratibha Barik, B.B. Pandey, 2016)).
Training
and Development and its Process In order to ensure that our employees are equipped
with the right kind of skills, knowledge and abilities to perform their assigned
tasks, training and development plays its crucial role towards the growth and success
of our business. By choosing the right type of training, we ensure that our employees
possess the right skills for our business, and the same need to be continuously
updated in the follow up of the best and new HR practices.
Compensation
is a complex topic that has significant impact on organizational success (Preeti
Agrawal, Yogesh Rathore, 2011), and for any organization to succeed, it must not
look up to capital investment but to its employees as the fundamental source of
improvement with the understanding that the human element and the organization are
synonymous (Moumita Suklabaidya Saha, Samrat Goswami, 2019). According to Cascio
(2003), the objective of the design of compensation program is divided into two,
which are, direct and indirect forms of compensation. Direct compensation has to
do with wage or salary aspect while indirect compensation is the fringe benefits
a worker enjoys as a result of working in an organization. Integrating the two into
a package that will encourage the achievement of an organizations goal is what compensation
is all about.
MATERIAL
AND METHODS:
Assumptions:
The study is premised on the following assumptions:
1.
The respondents are honest
in answering the questionnaires
2.
The instruments to be used
in data gathering are valid and reliable
3.
The management factors and
customer demand are measurable.
Hypothesis:
The study will test following hypothesis stated as follows:
1.
Average value on the Assessment Level
of better sale in the local of construction material suppliers.
2.
There is not significant influence
on impact of the construction material business and the management practices.
Figure
1: Research Framework
Methodology:
This section will discuss about research design to be implemented population
and sample considered in the study and the statistical method that will be used
to analyze the collected data.
Research Design.:
This study will utilized the descriptive–correlation method of research
in accessing the management practices of small and medium construction business
in Phu Yen Province, Viet Nam. The questionnaire will be distributed to the respondents
to analyze through statistical method.
Descriptive method will be used to describe the profile of the owner/manager/staff
and their business related profile.
Population and sample:
The study will be implemented in one hundred of small and medium construction
material suppliers in Phu Yen Province, Viet Nam with 1120 respondents such as 280
owners/managers, 840 staff
The figures show the best sale is at the “high” rate of (
= 3.97). There is a small difference between manager
and worker groups. For example, according to the manager group, committing and dedicating
to serve customer is often implemented with 
= 3.97, but worker groups think that their companies
always did with (
= 4.55). This shows that the worker did well to
serve their customers with policies which their companies made. However, the index
of manager group is lower because they may be unsatisfied with the way their worker
did to serve customers. Therefore, managers off construction material suppliers
should consider to make better policies off committing and dedicating to serve customer.
Moreover, they need increase training workers’ skill to improve the service.
Both manager and worker group have the same results in the survey with ( = 3.34) when they are surveyed about the training
of workers attributed to the increase sales in the locality. This shows companies
“seldom” make training so managers should pay much attention to train worker in
all skills to increase sales.
Similarily, the acquisition of raw materials and the warehousing and storages
of the products have ensure and sustain price that are affordable to the customers
are “always” according to manager group but worker group is “often” with = 3.82. Although there are small difference between
manager and worker group but managers of construction material supplies should adjust
them to increase best sales.
Table
2: Regression Analysis of the Output Variables along level of Human resources on
the Input Variables
|
|
Beta
|
t-value
|
t-prob
|
|
1.
|
(Constant)
|
|
46.204
|
.000
|
|
Age
|
.539
|
14.946
|
.000
|
|
Sex
|
.221
|
6.272
|
.000
|
|
Marital status
|
-.133
|
-4.360
|
.000
|
|
Education attainment
|
.226
|
7.960
|
.000
|
|
Length of Experience
|
.169
|
4.766
|
.000
|
|
Training
|
-.404
|
-10.192
|
.000
|
|
Years of experience
|
-.179
|
-1.448
|
.149
|
|
Present capital
|
-.171
|
-1.046
|
.296
|
|
Source capital
|
.174
|
.790
|
.430
|
|
Number of employees
|
-.285
|
-1.241
|
.216
|
|
Average monthly sales
|
.200
|
1.679
|
.094
|
a. Dependent Variable: Human resources
The above table shows the regression analysis of the input variables on
the output variables along level of human resources. In the table, R = 0.635 so
it is implies this is suitable model to assess the relationship between dependent
and independent variables. Beside, the table shows R2 = 0.400, which implies that
linear regression model is built quite suitably with 40%. Accordingly, the remain
60% could be due to other variables not considered in the study.
Especially, according to the study, F = 125.331 and F-prob = 0.005. This
means that owner profile and industry practices signficantly influenced in the level
of human resources. When considering terms separatedly, the influences of every
term are shows through age, sex, marital status, education attainment, length of
experience, training, years of exxperience, present capital, source capital, numbers
of employees, average monthly sales.The beta index of “age” is the highest (B=.0539),
which shows that owner’s age has the most influence on human resources. Besides,
all terms also affect to area of human resources
CONCLUSION:
The
study focused on the assessment and evaluation of the relationship of business practices
of the construction material enterpises, and the profile of owners in terms of Age,
Sex, Marital status, Education attainment, Training courses attended, Average monthly
income, Years of experience, Present, capital, Source capital, Number of employees,
Number off years in operation, Aver mothly Sales, Source of capital. Especially,
the business practices Human resources. Besides, the study is assessed through the
impact (better sales in the localities, increase employment in the localities, improve
warehousing and storage of locality, increase revenue and increase customer satisfaction)
and business practices mentioned as above. From that, the conclusion and recommendation
are withdrawn to improve the business of the construction material business in Phu
Yen province
CONFLICT OF INTEREST:
The authors declare no conflict of interest.
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