Because of the ongoing transition process toward a market economy, a large number of skilled labor force and competent business managers are required. However, a majority of them do not have substantially fundamental knowledge in market economy and managerial skills to make profits and enhance growth for an enterprise. Therefore, it is necessary and urgent for HRM to create skilled and dynamic employees and qualified managers to develop the country’s economy. In spite of training initiatives and organizational restructuring, many managers have still followed the old path of “traditional administrative attitudes” and the working environment in those companies cannot be changed in order to meet the current demands for efficiency (Ken Kamoche,
…show more content…
They analyzed 32 enterprises with four types of ownerships: SOEs; POEs; JVs and MNCs in Hanoi and Ho Chi Minh City. The data was collected by interviewing two categories of employee in each firm, which were managerial staffs (HR or line managers) and workers. The questionnaire was based on selecting eight dimensions of the socialism model, traditional personnel management and HRM models while its main contents were related to enterprise background; organizational structure; business operations; HR practices; and management perspectives. The interview with workers took place outside the companies because they were not allowed to do it during their duty and they did not feel comfortable to share their problems in front of their managers. His first findings showed that because there was a mixed application among the three models, forms of management became inconsistent and overlapped. Additionally, there was a mutual relationship in management practices through negotiation and compromise between foreign and local firms. To an extent, foreign-invested companies should learn and adopt some local management practices; follow local rules and norms so as to survive in this socialist business environment. Secondly, due to the poor enforcement of local regulations, political system, and obsolete management knowledge, the traditional and PM models still prevailed in management styles in Vietnam. For example, SOEs followed the socialist traditional pattern; POEs and JVs adopted PM model and firms with foreign investment like MNCs practiced HRM. Besides, because of hierarchical nature and collectivism, the PM model quite fits with the Vietnamese culture and business structure. Another finding was similar to Ken Kamoche, which is MNCs have advanced in HRM paradigm and they use market competition to influence HRM practices
They analyzed 32 enterprises with four types of ownerships: SOEs; POEs; JVs and MNCs in Hanoi and Ho Chi Minh City. The data was collected by interviewing two categories of employee in each firm, which were managerial staffs (HR or line managers) and workers. The questionnaire was based on selecting eight dimensions of the socialism model, traditional personnel management and HRM models while its main contents were related to enterprise background; organizational structure; business operations; HR practices; and management perspectives. The interview with workers took place outside the companies because they were not allowed to do it during their duty and they did not feel comfortable to share their problems in front of their managers. His first findings showed that because there was a mixed application among the three models, forms of management became inconsistent and overlapped. Additionally, there was a mutual relationship in management practices through negotiation and compromise between foreign and local firms. To an extent, foreign-invested companies should learn and adopt some local management practices; follow local rules and norms so as to survive in this socialist business environment. Secondly, due to the poor enforcement of local regulations, political system, and obsolete management knowledge, the traditional and PM models still prevailed in management styles in Vietnam. For example, SOEs followed the socialist traditional pattern; POEs and JVs adopted PM model and firms with foreign investment like MNCs practiced HRM. Besides, because of hierarchical nature and collectivism, the PM model quite fits with the Vietnamese culture and business structure. Another finding was similar to Ken Kamoche, which is MNCs have advanced in HRM paradigm and they use market competition to influence HRM practices