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Logistics human resources management in Vietnam enterprises in the context of industrial revolution 4.0: Current situation and solutions


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- LOGISTICS HUMAN RESOURCES MANAGEMENT IN VIETNAM ENTERPRISES IN THE CONTEXT OF INDUSTRIAL REVOLUTION 4.0:.
- Abstract: This research analyzes the current situation of logistics human resource management in Vietnam enterprises, points out the requirements of human resource management in the industrial revolution 4.0 and suggests some suitable solutions.
- The research results show that the human resource management system of logistics in Vietnamese enterprises has operated somewhat effectively in all functions including attracting, training, developing and maintaining human resources in the short term, contributed positively to the development of the industry, but lacked a long–term vision to ensure sustainable human resources in response to the requirements of the industrial revolution 4.0..
- Keywords: human resource management, logistics, industrial revolution 4.0.
- According to the World Bank's report in 2018, Vietnam's logistics performance index (LPI) 2018 Vietnam ranked 39/160 countries participating in the survey, up 25 levels compared to 2016.
- However, many research and experts have pointed out that the human resources of Vietnam's logistics industry are currently facing many limited issues such as quantity and quality uncertainty, lack of human resource planning and forecasting at the macro and micro level, lack of connection between training institutions and enterprises, etc.
- However, there seems to be a lack of research approaching from the current situation of human resource management in logistics enterprises themselves..
- Therefore, the assessment of the current situation of human resource management in logistics enterprises according to the scientific approach of human resource management, associated with the requirements of the industrial revolution 4.0 to suggest solutions to overcome limitations and difficulties and developing logistics human resources are an urgent requirement in the current period..
- Human Resource Management and Human Resource Requirements in Industrial Revolution 4.0.
- According to Tran Kim Dung (2011), Human Resource Management is a system of philosophies, policies and functional activities about attracting, training, developing and retaining an organization's people in order to achieve optimal results for both the organization and the staff.
- The functions of human resource management include 3 groups: 1) Attracting human resources (job analysis, human resource planning and recruiting), 2) Training and developing human resources, 3) Human resource maintenance (remuneration, assessment, labor relations).
- activities aimed at developing the quality of human resources and their sustainable cohesion in the organization.
- In response to the requirements of Industrial revolution 4.0, human resource management has been changing.
- Figure 1 shows characteristics of human resource management models through Industrial revolutions..
- Figure 1: Characteristics of Human Resource (HR) Management through the industrial revolutions.
- In Industrial revolution 3.0, people in human resources management have turned to additional use of soft skills such as document processing, information collection and analysis, warning and policy recommendations.
- Technology utilities of enterprises such as website, intranet, server have also appeared and served human resource management activities..
- Up to the Industrial revolution 4.0, human resource management functions are being implemented on a larger scale in smarter ways, providing more comprehensive, intuitive and timely information to the administrators.
- Organizational development and human resource maintenance used social networking tools and qualitative analysis of the information (social listening) to provide useful information for fast HR policy development, more suitable..
- According to Nguyen Thi Nam Phuong (2019), with this model, the human resources of enterprises have become partners instead of employees.
- Both sides have competition in choosing partners, which is why human resource management has been adjusted in a new direction, requiring human resource policy makers to communicate well, handle problems well and maintain large scale.
- Human resource management in logistics enterprises, other professions includes the basic functional groups of attracting, training and developing, retaining human resources.
- Detail of 4.0 technology and its impacts on logistics sector is summarized in the following Table 1..
- Thus, human resource management in the logistics sector in Vietnam is more affected than many other areas, facing the pressure to change every day and needing to quickly apply big data, intelligence artificial (AI) and internet of things (IoT), not merely using hard skills, soft skills and performing traditional operations of human resource management..
- There are many studies mentioned the situation of logistics human resources in Vietnam, giving causes and solutions, and proposing overcoming as well as developing measures.
- depth surveys and interviews with logistics enterprises, leading experts in the field of human resources in the logistics industry.
- These reports do mention about the current status of logistics human resources in Vietnam, this is an industry report that does not mention in–depth and approach to the functions of human resource management..
- Recently, Pham Nguyen My Linh and Nguyen Thi Thu Huong (2020) have analyzed in detail, assessed the actual results, logistics limitations of Vietnam, proposed some human resource solutions in Context of International Economic Integration...
- However, it seems that there are very few works that approach the functions of human resource management of the organization and are associated with the requirements of the current 4.0 revolution.
- Research by Nguyen Thi Nam Phuong (2019) mentioned the requirements of human resource management in general in the context of Industrial revolution 4.0, but did not mention human resource management for the logistics industry in Vietnam..
- THE CURRENT SITUATION OF HUMAN RESOURCE MANAGEMENT IN VIETNAM'S LOGISTICS ENTERPRISES.
- Actual situation of quantity and quality of human resources.
- According to the Reports of VLA and VLI in 2019, the industry has about 4,000 enterprises, 54% of which concentrated in Ho Chi Minh City, the demand for logistics human resources is huge.
- Labor discipline, awareness of law compliance as well as low labor intensity are also the limitations that need solutions to overcome in the coming time for Vietnam's logistics manpower.
- Specifically, the strengths and weaknesses of the current four levels of Vietnam's logistics manpower are as follows:.
- Also, personnel at this level basically lack human resource management and work management skills, foreign languages and information technology are not good, the ability to coordinate, link, adapt, create and respond to customers' demand is not high, lack of experience in working with international partners, and lack of new knowledge updates..
- In the future, foreign language and ability to communicate, teamwork, specialized knowledge, modern working style and customer care skills will be major challenges for human resources belonging to this group.
- Most of direct workers are trained from vocational schools, although they are trained, their working skills are not good, lack of industrial style, low labor discipline compared to direct labor force in some countries in the region such as Thailand, Malaysia.
- Current situation of human resource planning and recruitment.
- Regarding human resource planning, first of all, enterprises need to plan logistics strategies and plans to serve as a basis for human resource planning.
- According to the Vietnam Logistics Report in 2019, a number of enterprises having strategies and plans for logistics activities: 42% enterprises surveyed have updated this plan in the past 1 year.
- 20% enterprises will adjust their logistics development plans in the next 12 months.
- As such, enterprises have paid attention to building business plans and supporting activities for logistics, as a foundation for human resource planning.
- However, in general, enterprises have not paid attention to the human resource planning and forecasting (in terms of quality and quantity) associated with this logistics plan..
- Control of the forklift .
- Source: Vietnam Logistics Report 2019 of the Ministry of Industry and Trade.
- In addition, experience and attitude in the interview are also factors that many employers consider.
- Academic achievement is not an important prerequisite in the hiring decision shows that the logistics industry focus on recruiting personnel capable of performing actual jobs and recruitment results based on working ability..
- Enterprises have not yet planned their human resources or have not linked their business plans with forecasting human resources, and have not yet linked, cooperated with each other in the forecast of.
- human resources supply and demand of the industry.
- However, there is no large database and information system on human resources in the industry as well as separate recruitment channels for the industry, and artificial intelligence has not been applied in recruitment..
- In addition, knowledge and ability to apply technology solutions, change management skills, problem solving skills, ability to coordinate, link, adapt, create are the critical requirements to human resources in Industrial revolution 4.0, but are not really concerned by enterprises.
- Actual situation of human resource training and development.
- According to the survey results in the Vietnam Logistics Report 2019 of the Ministry of Industry and Trade, self–training is a popular form in enterprises.
- Due to the approach to human resource management, this research mainly refers to the self–.
- In summary, the results of previous studies showed that the current general limitation in the self–.
- Enterprises have not analyzed their work methodically, have not forecasted their human resources (quantity and quality) in the long term, but often only recruit and train to meet immediate human resource requirements.
- This shows that the human resource management policy of the enterprises is not really systematic, invested, and focused on improving quality in the long term.
- In other words, enterprises paid attention to training logistics human resources in the short term, but have not yet invested in developing this human resource in the long term..
- Current situation of maintaining human resources.
- Also according to the data published in the Vietnam Salary Guide 2019 of First Alliances (as reported by the Report of the Ministry of Industry and Trade 2019), the average salary of logistics employees in the Ho Chi Minh City range from 500 USD – 1,500 USD/month and management level from USD per month..
- in some positions more than 15 million VND due to being trained with practical works and there are many job opportunities in the industry..
- Thus, the previous research results showed that enterprises have focused on paying competitive salaries to senior employees, due to awareness of competition and lack of experienced personnel in the industry which has high development speed and fast integration.
- The above situation also showed that the training results of universities, colleges and vocational schools are not commensurate with the quality requirements of the labor market in the industry.
- Regarding the capacity assessment, according to the 2018 Vietnam Logistics White Paper (VLA), over 45% of surveyed employees have good qualifications and work experience, about IT proficiency and the foreign language ability: only about 29% of the staff are rated good and over 41% are rated fair, the ability of workers to work in the international environment is rated at a good level of 29.5% and fair level of 33.6%.
- In the context of Industrial revolution 4.0, technology changes rapidly, employees' skills need to be constantly improved and supplemented, employees need to adapt quickly and flexibly.
- In human resource management, assessment is also the basis for continuing to plan human resources, planning training and development, transferring, and appointing, is a measure for enterprises to anticipate the ability to complete employee's job goals, business goals, are the basis for salary based on competency..
- In particular, it is necessary to aim at meeting the key skills of the logistics industry (creating, proactively, calculating, handling situations, solving arising complaints) to the rapid changes of technology and customer requirements in the current Industrial revolution 4.0..
- In summary, the above situation showed that the human resource management system of logistics in Vietnamese enterprises has been operating effectively in attracting, training, developing and retaining human resources in the short term, but lack of long–term vision to ensure sustainable human resources for the development of the industry in the present and future context..
- According to Deloitte research in 2020, the impact of Industrial revolution 4.0 and the emergence of generation Z in the workforce have created new trends and requirements in human resource management.
- Therefore, logistics enterprises must be more proactive, have a long–term vision in human resource management associated with the requirements of the Industrial revolution 4.0..
- This research proposes a number of solutions according to the current human resource management functions approach..
- About human resources planning and recruiting.
- Firstly, logistics enterprises need to quickly transform digitally, but first of all, in human resource management, because "digital human resources management will cover the foundation of technology, people and jobs".
- It is necessary to build an information system and a digital database on the entire human resources of the organization to make suitable, fast, real–time decisions.
- Industrial revolution 4.0 will have a great impact on the structure of the economy, the ability of declining or even disappearing of many professions as well as the emergence of new professions are entirely possible, leading to huge changes in the employment structure.
- Robots, AI, computers and the internet have become mainstream application trends in the open economy..
- For example, with the application of 100% automatic customs clearance through the VNACCS/VCIS system may lead to decrease in the recruitment of staff in the position of customs clearance and increase the demand for human resources in a number of new logistics services sectors such as e-commerce staff, last mile delivery staff..
- Human resource training and development.
- Firstly, human resource training and development policies need to be changed in a continuous direction, throughout, and updated in real time.
- In the 4.0 era, many jobs often change or the way of doing requires new skills to be constantly improved.
- In the context of lacking of the practical experience and in–depth knowledge lecturers at schools, and in–company internship instructors and only concentrated in big cities, this will help train human resources for the industry in many localities at low cost..
- Fourthly, in the Industrial revolution 4.0 trend, there will be industries lost and new jobs formed (such as e–logistics), so training and retraining of enterprises need long term preparation and uptrend..
- About retaining human resources.
- The spirit of shared governance, participatory governance towards the decentralization of employees to create new seeds of leadership, unleashing creativity, promoting organizational change is increasingly consistent with the digital era, especially in the logistics industry, which is a pioneer in international economic integration..
- This model has been applied in the West since the end of the last century, but is increasingly effective in the Industrial revolution 4.0.
- In the new era, enterprises need to focus on allowing employees to build ways of interacting at work, quick two–way communication with colleagues, superiors, subordinates and many information utilities to have motivation to do the job.
- Combined all the above solutions, management will have a variety of response channels from stakeholders in a very timely manner in real time, served as a basis for quick and effective decision making in the current context..
- Research has shown that the human resource management of logistics in Vietnamese enterprises today has had certain results, contributing to the overall growth of the industry.
- However, research has also shown that in general, enterprises still lack the initiative to prepare and have no plans to recruit, train and develop, and maintain human resources in the long term, and at the same time lack of close linkage, and practical to business.
- Logistics is an industry with a high growth rate and high integration, affected by and changing rapidly in the Industrial revolution 4.0.
- Therefore, the human resource management system of logistics needs to be very proactive and well prepared to attract, train, develop and maintain human resources, even to exploit the benefits of Industrial revolution 4.0 such as building e–learning system, using AI in large–scale recruitment and evaluation, building big data in human resource management, developing social listening system.
- The research has recommended a number of solutions to not only overcome current limitations but also to motivate enterprises to actively exploit the advantages of Industrial revolution 4.0 in human resource management..
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- (2020), Improving the quality of logistics human resources through connecting training organizations with logistics enterprises.
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- Human Resource Development Forum for Logistics Industry and Future Trends in Vietnam 2019

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