Internship Report - The process of human resource management at vica consultants international ltd. and some recommendations for improvement

FOREIGN TRADE UNIVERSITY
FACULTY OF BUSINESS ADMINISTRATION
Major: International Business
***
MID-TERM INTERNSHIP REPORT
The process of human resource management at VICA Consultants International
Ltd. and some recommendations for improvement
Student : Do Thi Anh Ngan
Class : A1
Supervisor : Ms. Le Thi Thu, Msc
Hanoi, 7/2009
Internship Report
2
Internship Report
Table of Contents
Table of Contents 3
Preface 4
Part 1: Introducon to VICA 6
Part 2: The analysis of the human resource management process at VICA 12
Part 3: Recommendaon for improvement 20
Part 4: Internship experience 22
References 24
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Preface
The world business is becoming more and more complicated as technology is in its
age of development and changing at a rapid pace. It seems that technology is
reducing the role of people. However, this could be true in the production era only.
Today, there are a lot more of new types of business where human play an
important role along with that of machines and technology. Furthermore, there is a
change in the conception and perception of the management of human resource

(HR). As the name suggested, human now is the resource of a company, the key to
its success, not the cost to a business as we used to perceive. Human is the asset that
a company must seek for, maintain, and develop. Understanding this, many
companies are trying their best to attract a good pool of workers in the labor force in
order for them to gain a competitive advantage against their rivals. In conclusion,
human resource plays a strategic role in the sustainable development of companies.
Seeing the importance of Human Resource Management (HRM) in business, I have
been always seeking for chances to get a more understanding of the HR practices in
theory as well as in reality, from which I could draw some lessons for my future
development.
To back up this purpose, I choose to work on the issue of HRM during the time I do
my internship in VICA Consultants International Ltd. (VICA) This is not a big
company, which may have a lot of HR activities. Moreover, as a consultant
company, its success depends a lot more on associate consultants rather than their
fulltime workforce, so they may not have a HR department. So why do I choose it?
The reason is that I want to reinforce the point that HRM is important to companies
of all types, no matter how they do their business and how they employ their
people.
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About my study approach, I am not going to focus on a specific area of the HRM
such as the recruitment and selection process or the compensation policy. Instead, I
am going to draw an overall picture of the HRM practices of the company, which
will be clearer and clearer as we go through the report.
Finally, I would like to express my gratitude to my family, who help me to have
time to focus on my study, to my university teachers, who I have had chance to
work with during the last 3 years and have provided me with a lot of precious
knowledge, the managing director of VICA, who has provided me with generous
support during my internship there, and last but not least to Ms. Le Thi Thu who has
given me a lot of consultation and instruction during my internship. I learned a lot

from her and I hope and believe that this report would not disappoint her
expectation.
In conclusion, I wish that this report will provide you with valuable information and
I would welcome all comments in order to improve my knowledge, viewpoint as
well as writing.

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Part 1: Introduction to VICA
1. Establishment and Development of VICA
VICA Consultants International Ltd. was established on 26
th
April, 2001 by five
members namely Nguyen Thanh Hai, Nghiem Thi Minh Nguyet, Nghiem Quang
Minh, Vu Thi Boi Lan, and Pham Ngoc Thang. At the end of the year 2001, Mrs.
Vu Thi Boi Lan withdrew her capital in order to invest in another field. At the end
of the year 2003, Mr. Nghiem Quang Minh withdrew his capital because of health
related problems and turned to work for a state-owned company. In 2002, the
company received the capital of Mr. Nguyen Hong Tho, but by October, 2005, he
withdrew his capital in order to continue his study. At present, the company is
owned by three stakeholders namely Mr. Nguyen Thanh Hai, Mrs. Nghiem Thi
Minh Nguyet and Mr. Pham Ngoc Thang, who are professional consultants of high
calibre with 15-30 years of experience in working for projects in Vietnam.
The company was first named Vietnam Investment Consulting and Auditing
Company Ltd. because at the time it provided not only consulting but also auditing
service. At present, the company just focuses on the consulting field, so it changed
its name into VICA Consultants International Ltd. (although VICA is still the
abbreviation of “Vietnam Investment Consulting and Auditing”, which is its old
name).
Since its establishment in early 2001, VICA has become a well known provider of

technical and management consulting services in Vietnam for multilateral financial
institutions, international organizations, state agencies and private donors in
projects funded by ODA, FDI, state’s budget, private - self mobilized funds. VICA
has involved in all stages of the project cycle from project identification and
preparation to project planning, implementation, evaluation and closing.
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VICA currently employs a team of 50 full-time consultants, including consulting
team leaders, senior consultants for investment & development projects.
Additionally, VICA also has a network of associate consultants and engineers of
more than 500 domestic and international experts.
At present, the company is planning to expand to other countries in the area such as
Indonesia, Philippines, Laos, and Cambodia.
2. Organizational structure
The company is divided into 3 departments, i.e. Business Development, Research
and Operations, Accounting and Finance. Each one is managed by one Vice
Director, who reports to the managing director, being responsible for the whole
company.
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The Business Development Department consists of two units. One is responsible
for business development and one is in charge of procurement activities. These two
units associate and support each other if necessary.
The Business Development Unit is in charge of seeking opportunities for the
company to supply its services, especially those relating to the company’s strengths,
i.e. rural, societal, infrastructure, water, and environment development. In addition,
the unit is also responsible for seeking for consulting experts of such fields in order
to enrich its database of experts, which is very important to the bidding activities
and project operations. This unit has 3 employees working under the management
of a unit head.

The Procurement Unit is responsible for preparing Express of Interest Letter and
Bidding Documents. This unit includes one unit head and 2 employees.
The Research and Operations Department is made up of 4 sections, which are
independent but still can support each other when needed.
The Social Unit is in charge of society related works such as basic investigation,
economic and social investigation, resettle planning, resettle supervision, and
compliance of safety policy of sponsors. At the same time, the unit can support
other ones when needed. The head of the unit is responsible for 6 employees.
The Project Management Unit is responsible for managing the implementation of
projects and the company’s services, at the same time assigning specialists to take
part in the management in a specific service if necessary. This unit includes 4
employees who report directly to the vice director of the department.
The Water and Environment Unit is in charge of works relating to water supply,
rural and environmental sanitation, for example, rural water supply, rural sanitation,
environmental protection planning, environmental effect evaluation, and
compliance of safety policy of sponsors. This unit includes one unit head and 3
employees.
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The Engineering and Design Unit is responsible for designing irrigation works,
rural infrastructure and urban development. This unit includes one unit head and 2
specialists.
The Accounting and Finance Department includes one unit of Accounting and
Administration. The unit is under the direct management of one Vice Director cum
Chief Accountant and it has one accountant and one administrative staff.
With such a structure, VICA ensure its good operation and that its consulting
services is according to the claim “Quality makes Difference”
3. Business activities
VICA’s main Clients are:
- International donors, such as the WB, ADB, AFD, UNDP, DFID, IFAD,

DANIDA, etc.
- Foreign Direct Investors (FDI) or Vietnamese private enterprises
- Besides, VICA also directly provides consultancy service for donors and
agencies belonging to the Government of Vietnam.
VICA’s main types of project are:
- Agriculture and Rural Development: Water Resources and Irrigation;
Capacity Building, Livelihood Development, Integrated Rural Development and
Environment.
- Urban Development: Water Supply and Drainage, Sanitation, Capacity
Building, Environment
- Energy Sector Development: Renewable and Efficiency, Power Generation,
Transmission and Distribution, Environment in Energy and Capacity Building.
For Agriculture and Rural Development Projects, VICA has capability to
provide:
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- Socio-economic survey and project design as regulated by process, donors and
international norms.
- Consultancy on agriculture, science and technology policies in agriculture and
rural development.
- Project management and implementation support in procurement, disbursement,
financial management, reporting, and human resource management.
- Provision of senior consultants in various fields in agriculture and forestry
(cultivation, livestock, aquaculture, processing, agro-forestry, forestry and
silviculture, agricultural economy, forestry, land allocation and rural
environment etc.).
- Provision of senior consultants and engineers in water supply and rural
sanitation for subproject identification, planning, design, bidding documents and
bidding plan, environment management plan and resettlement implementation
plan preparation, construction supervision and sustainable maintenance with

community participation in all stages.
- Preparing investment plans, preliminary designs for infrastructure subprojects
and works.
- Monitoring of safeguard policy as stipulated by the donor (environment,
resettlement and ethnic minorities).
- Capacity building for relevant institutions, training for project staff and
beneficiaries on various fields as specified in each project.
- Provision of consultancy on community development to local communities
including ethnic minorities and women.
For Urban Development Projects, VICA has capability to provide:
- Socio-economic survey and project preparation as required by donors, provision
of financial, economic, institutional and social consultants for project design.
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- Project management and implementation support in procurement, disbursement,
financial management, reporting, and human resources management.
- Provision of senior consultants and engineers to implement feasibility and pre-
feasibility study reports, basic design, technical design and construction
technique design.
- Senior consultant provision for infrastructure schemes construction in line with
international standards and Vietnam’s regulations.
- Monitoring of safeguard policies as regulated by donors (environment,
resettlement and ethnic minority development).
- Institutional capacity building, training project staff and beneficiaries on various
fields in line with regulations of each project.
- Support consultation in closing completed projects including project completion
procedures and post evaluation.
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Part 2: The analysis of the human resource management

process at VICA
1. Human resource management process
1.1. Definition
Firms today are faced with increasingly competitive and fast changing environment;
to survive, firm must have competitiveness, which refers to company’s ability to
maintain and gain market share in its industry. Many organizations have realized
that it is the people in an organization that can provide a competitive advantage. As
a result, people in an organization are considered as its resources “human
resources”, contrasting with the financial and material ones, and managing this
special resource well is very important to an organization. So what is Human
Resource Management?
Human resource management refers to the policies, practices, and systems that
influence employees’ behavior, attitudes, and performance. Human resource
management practices include:
- Analysis and design of work
- HR planning
- Recruitment and Selection
- Training and Development
- Compensation
- Performance management
- Employee relations
Human resource management is one crucial element needed for firms to be
effective. So who perform HRM activities? Every manager must be concerned with
people, whether or not there is a human resources department. Two groups normally
perform HR activities are HR manager-specialists and operating managers, who
should have competencies in communication, problem solving, recruiting/staffing,
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employment law, training/ development, compensation design among others
necessary skills.

1.2. Human resource management process.
Analysis and Design of work
Job analysis a systematic investigation of tasks, duties and responsibilities of a job
(Job Description) and the necessary knowledge, skills, and abilities a person need to
perform the job adequately (Job Specification). Job design is the process of
designing the way work will be performed and the tasks that will be required in a
given job.
The analysis and design of work is useful because it provides a means for the
managers to understand all the tasks required to produce a high-quality product as
well as the skills necessary to perform those tasks. They need to understand the job
requirements to make intelligent hiring decisions as well as to better manage and
evaluate their employees’ performance so as to make the right decision of
compensation, rewards, and promotion.
HR planning
Human resource planning is about assessing the future supply of, and demand for
human resource, providing mechanisms to eliminate gaps that may exist between
supply and demand, and making readjustment as labor market conditions change.
HR planning can help managers to make decision in recruitment, avoidance of
redundancies, training and development, labor cost, productivity bargaining and so
on. The HR planning process starts with an analysis of situation and environmental
scanning. The second step is forecasting demand for employees, in which two
questions are addressed: How many employees will be needed and what kinds of
employees will be needed. After that, the HR planner has to analyze the current
supply of employees, i.e. how many employees and what kinds of employees does
the organization currently have. Finally, he/ she will develop an action plan in order
to eliminate the gap between the people supply and demand.
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Recruitment and Selection
Recruitment is the activities that influence the number and types of applicants who

apply for a job, and whether the applicants accept the jobs that are offered. An
organization can recruit from inside or outside depending on specific circumstances,
and it can post its recruitment announcement in news media, through employment
agencies, executive search firms or through special events.
Selection is the process by which an organization chooses the applicants who best
meet the selection criteria for the position available. The selection criteria include
education, experience, knowledge and skills, past performance, physical
characteristics, and other personal characteristics. The most common selection
methods include interviews, work samples, tests, and other less common methods
depending on the nature of job vacancy. The importance is the methods used must
be reliability which means it is true in various circumstances and validity which
means it is relevant to the job vacancy.
Training and Development
Training and Development are processes that provide employees with information,
skills, an understanding of the organization and its goals, and the ability to make
positive contribution in the form of good performance.
The training process includes 4 sections: Training Needs Assessment, Program
Design and Development, Training Implementation, and Training Evaluation.
Of the 4 steps, the first one seems to be the most important one because it sets the
foundation and orientation for the next ones. However, many organizations do not
aware of its importance and often pass it in order to focus on other steps; this is why
some training programs turn out to be very costly and bring little value.
Training is needed to increase the competence of new employees or current
workers. For new employees, training is aimed at providing them with needed
technical knowledge and skills, understanding of the company (culture, policies,
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and procedures), and basic skills needed. For current workers, they are often
provided with remedial training (when they perform tasks wrongly), change-related
training (when there are changes in technology, laws, procedures or the

organization’s strategic plan) and developmental instruction (providing employees
with the appropriate skills needed for higher level positions to which they may
eventually promoted).
Compensation
Compensation refers to the remuneration system of a company, how it pays
workers, what benefits it provides them. There are two kinds of compensation that
are financial compensation and non-financial rewards. Financial compensation
includes wages, salaries, bonuses, and commissions (direct) or insurance, vacation,
and health care service (indirect). Non-financial rewards include praise, self-esteem,
and recognition.
How a company designs its compensation system and delivers it to its employees
plays an important role in satisfying and motivating them, and thus has great impact
on their performance.
Some external influences on compensation include the labor market and the
economy condition, some controls and guidelines of the government and
international organizations, the bargaining of trade unions. The internal influences
include the size and age of the organization, the labor budget, the job itself, and the
employees’ knowledge, skills and abilities.
Performance management
Performance management can be defined as a systematic process for improving
organizational performance by developing the performance of individuals and
teams. The overall aim of performance management is to establish a high
performance culture in which individuals and teams take responsibility for the
continuous improvement of business processes and for their own skills and
contributions within a framework provided by effective leadership.
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Employee relations
Employee relations consist of all those areas of human resource management that
involve relationships with employees – directly and/ or through collective

agreements where trade unions are recognized.
2. The process of human resource management at VICA
Since its establishment, the number of VICA’s employees has been increasing. At
the beginning, the company only had about 10 to 15 people. The number went up to
20 in 2004 and 2005, and now the company employs 50 fulltime staff.
Besides those fulltime workers, associate consultants are also one part of the
company’s human resource, playing a very important role in the success of the
company as they help the company to win the bidding, have opportunity to supply
its services.
So how does the company manage its human resource including both the fulltime
workers and the associate consultants?
2.1. Full-time workers
Analysis and Design of work
The company has job descriptions for each position called Terms of Reference
(TOR), in which it specifies the tasks and responsibilities of the job holders. The
TOR includes the following information: (i) job objectives, (ii) tasks and duties
required, (iii) job outputs, (iv) promotion opportunity and salary level, (v)
development opportunity and VICA’s supports
HR planning
The company hires extra staff when there is a shortage of labor and more work to
do, for example, when there is an employee quitting his/her job, when the company
wins more contracts and thus needs more people, and when the company provides
its customers with new types of services besides its current ones.
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Recruitment and Selection
The company posts its job advertising mostly in Vietnamworks website. Besides, it
also has its recruitment announcement posted in some newspapers such as Lao
Dong, Ha Noi Moi and in some other recruitment website which allows free
posting.

The applicants know about the company’s job vacancy through those channels and
hand in their application forms including resume, copies of their certificates and a
picture of themselves directly to the company or via email. The company will select
from the application forms the applicants best suitable for the job vacancy, inviting
them to the company to do tests and interviews. The company’s managing director
directly interviews the applicants, negotiates and makes selection decision. The
selection criteria include education background, experience, foreign language
capability, and computer literacy.
Training and Development
There are two kinds of training that VICA provide its employees, i.e. internal
training and external training. Internal training is carried out at the company office.
The managing director directly delivers the lecture or instructions to the employees;
or the company may invite an expert to provide the training. The employees are
provided with skills and knowledge relating to preparing bidding documents,
supervision and evaluation, questionnaire design, economic and social
investigation. External training means employees will be assigned to take part in
training programs provided by National University of Civil Engineering and some
training centers. Those training programs are often about project management and
procurement.
Compensation
The salary level of the company is designed basing on the circular number 219 of
the Ministry of Finance and “the UN-EU guidelines for financing of local costs in
development co-operation with Vietnam”.
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Besides salary, the employees receive some other benefits such as social and
medical insurance, 12 days of absence per year for those working for the company
more than 1 year, 4-month maternal leave, holiday bonus, and overtime pay of
150% of basic fixed salary.
Performance management

The performance of employees is evaluated by their outputs which are reports,
document translation and everyday performance. The evaluators who are the direct
supervisors, i.e. head of departments or head of units, give employees comments
and feedback in order to improve their performance or behaviors. In addition, the
managing director can also give feedback after directly assigning work and through
the hand-in reports.
2.2. Associate consultants
As for the association consultants, this is the important resource of all consultancy
firms. At VICA, the business development unit is responsible for seeking for
experts of different fields in order to enrich the database of experts of the company,
helping it to win the biddings and to implement the projects well, ensuring the
compliance of quality control policy. The experts that the company seeks for are
often state cadre, working or retired; experts of research institutes or universities. At
the moment, the company has associated with both Vietnamese and foreign experts.
Because the consulting activities cover a lot of fields, so those experts has different
professional knowledge. When bidding, the company defines the knowledge and
experience that the project implementation requires then find experts with suitable
qualification and invite them to consult for the projects. If winning the bidding, the
company will sign a contract with each expert.
The performance of the experts is under the control of the chief consultant in a
group of consultants. Besides, in each project, the company has its own project
manager, who is responsible for the project implementation and quality compliance.
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The pay level for the experts is also based on the two documents mentioned above.
It is notable that the salary level in these documents is the maximum level, so the
pay for the experts is less than the amount specified in the documents, depending on
their experience and latest pay level.
3. Comments on VICA’s HRM practices.
Because of the nature of field the company operates in, its HRM practices are not so

wide and profound in comparison with other types of companies, especially bigger
ones. However, as I said earlier, HR is important to all types of companies and
every company should pay attention to this field.
VICA does a good job in making its structure simple and flat in order to be suitable
and adapt to the nature of work it does. This helps it to reduce the cost of operation.
For example, the recruitment and selection is carried out by the director of each
department itself. And the head of each department as well as each unit is
responsible for its own staff. There is no a separate department of human resource.
This can be considered as a good thing because a separate HR department is in fact
not necessary in this case.
However, there is no need for a human resource department; this does not mean
there is no need for strategic human resource management. In fact, the company is
lack of strategy in the HRM area. They need to have strategic methods in order to
both reduce expenses and enjoy greater effectiveness.
The next part will discuss how the company could improve its HRM practices.
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Part 3: Recommendation for improvement
Firstly, the company should have a clearer job analysis. Job analysis is very
important. It may create some expense at the beginning but in the long term it
makes every job clear, help the job holders understand their responsibility
thoroughly, help management team to make better decision. The company does
have job descriptions, but it does not have job specification which clarifies what
qualification the job holders must have in order to perform their tasks well. This is
important as it is just like a guideline for employees; they can look at the job
specification and see what knowledge, skills or abilities they already have and what
they lack for. Consequently, they can easily eliminate that gap in order to get their
job well-done.
Secondly, the company should have a clearer HR planning. It should make a
clearer plan about how many employees the company may need in a normal

condition, when the workload is of average level. Basing on that, the company
should employ an adequate number of people to work in that normal condition.
With that number of employees, the company can work well in normal periods of
the year, when the workload is not too much or not too little. When there is an
increase in the workload, instead of hiring an extra permanent staff, which would
become excessive when the season is over, the company should just hire some
temporary ones. As for the time when there is not much work to do, the company
can do a job sharing between the permanent workers in the company. In order to be
stable, the company can set up a database of the temps so that it can hire them again
and again from time to time.
Another recommendation is about the recruitment method. The company is just
advertising its job vacancy in newspapers and Vietnamworks. This is good, but it
can do more than that to attract more good people. For example, it can post
recruiting announcements on universities’ news boards. A second effective way is
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announcing within the company and asking the employees whether they have
friends who are suitable for the vacancy. This is an effective way because
employees are a good source to get the right people, they have been working in the
company and they do not want to lose their points in their boss’s eyes, then at least
they would try to introduce good people. And moreover, they know their friends
and their background knowledge, so this can help the recruiters save time. The
company can even offer the employees some benefits in order to encourage them to
introduce really good friends.
Next, about the selection decision, the company should add applicants’ past
performance in the list of criteria as this tells a lot about their future job behavior.
The interviewer can ask them to tell about their previous work experience to
determine if the candidate has exhibited relevant behaviors in the past. Besides,
reference checking, which involves collecting information from applicants’
previous employers, should also be used. This method has two important purposes.

One is to verify information provided by applicants, and one is to get additional
information about applicants, which maybe predictive of job performance.
In the training part, the company should assess carefully the training needs,
whether the training is really necessary and what types of training would best
solved the problems.
Finally, the company should have ways to maintain a good and long-lasting
relationship with its associate consultants. It can hold parties or vacations with the
participation of both external and internal consultants in order for them to have
chance to interact with each other and share their experience. This is also a kind of
benefits to build and maintain relationship with them. Besides, the company’s
compensation for their associate consultants should be comparable to or even
greater than what other consulting firms may offer.
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Part 4: Internship experience
During my internship, I was assigned to do the following work:
- Translating reports and other documents such as questionnaire, Terms of
Reference, Express of Interest letter from Vietnamese into English.
- Designing a questionnaire.
- Receiving phone calls from outside and pass through the wanted people
- Making phone calls and leave messages to outsiders.
- Booking airline ticket and hotel rooms
- Faxing or sending documents via email
- Make photocopies
It was very hard for me to do the translation job because the documents are relating
to unfamiliar issues to me such as rural development, water resources, energy and
so on. However, the interpreters of the company have helped me a lot in finishing
my work. They give me suggestion on how to translate complicated sentences and
some special terms. This job helped me a lot in improving my English and
broadening my vocabulary.

Receiving and making phone calls helped me to improve my telephone
communication skills. Sending documents via email helped me to know how to
write a business email, how to start and end it, how to address the receivers
appropriately and so on. Booking airline ticket and hotel rooms were also a good
experience for me. I had to communicate a lot with people I have never met. I found
out that even speaking fluently in my mother tonge language in this situation is not
easy and I have to learn it all, from the easiest tasks to the hardest ones. The task
seems to be easy but you never know it if you never do it. And I think my business
communication skill is now better.
Faxing and making photocopies was hard for me for the first time because I had
never used a fax or a photocopy machine before. After making a lot of photocopies
during my internship, I have now known how to do it skillfully.
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Finally, the whole internship gave me an exposure to the working environment and
condition. I know how to get on well with colleagues, how to dress appropriately,
how to communicate properly. In addition, being at office all day, from 8a.m till
5p.m was really tired and stressful for me. I had to learn to better manage my time,
balancing among housework, study, and office work.
In conclusion, the internship was a good experience for me and helped me to be
well-prepared for the future.

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References
Armstrong, Michael., 2006. A handbook of human resource management practice.
10
th
ed. London and Philadelphia: Kogan Page Limited.
Kleiman, Lawrence S., 2000. Human resource management: a management tool for

competitive advantage. 2
nd
ed. USA: International Thomson Publishing Inc.
Torrington, Derek; Hall, Laura; Taylor, Stephen, 2008. Human resource
management, 7
th
ed. Essex: Pearson Education Limited.
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