Areeya ROJVITHEE Deputy-Director General Ministry of Labour, Thailand, Chiba, Japan November 2007

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1 APEC Forum on Human Resources Development Sustainable Career Development throughout Working Life Areeya ROJVITHEE Deputy-Director General Ministry of Labour, Thailand, Chiba, Japan November 2007

2 Presentation Introduction Definition State of the problems. Policy on Human Resources Development. Skill Development Promotion Act A.D Occupational Promotion Act. ROLE OF MINISTRY OF EDUCATION. ROLE OF DEPARTMENT OF EMPLOYMENT (DOE) ROLE OF ESTABLISHMENT Conclusion and Recommendation

3 INTRODUCTION The information in this paper based on the paper named The Competence Development as Workplace Learning in Thailand written by Dr. Patcharawalai Wongboonsin and Ms. Areeya Rojvithee for ASEM Research Seminar organized by Leopold-Franzens-University of Innsbruck, Institute of Educational Sciences, Austria during September APEC Forum on Human Resources Development : Increasingly Vital Role of Enterprises in HRD Chiba, Japan 6 8 December 2006

4 DEFINITION Career Development is a part of Organizational Development (OD) which looks at how individuals manage their careers within and between organizations and how organizations structure the career progress of their members can be tied in to succession planning within some organizations. This definition means to people who are working in any organization. But in broader sense, career development means to the process of identifying and implementing career activities that cause change for the purpose of growth. Furthermore career development is the progression through a sequence of jobs, involving continually more advanced or diverse activities and resulting in wider or improved. Career development can be done through education and training both formal and informal, through work experiences, job networking or formal courses, etc

5 DEFINITION Businesses used to partner with employees to carry out employees career planning and development. Times have changed. Now, businesses are coming to view career development primarily as the employee s responsibility. As the world of work is rapidly changing, employers are interested in hiring people who can demonstrate their skills, abilities, competencies and have right attitude in working. Hence, there are special training courses organized by academics, professional association, distance learning, website, career services, E-manual for career development, etc., to help people to develop goals, strategies to progress in their career.

6 STATE OF THE PROBLEMS Globalization, rapid development of technology and high competition on international trade make each business struggle for survival. The main factor that can help businesses to survive is the quality of human resource. The human development has never been as important as it is in today. The Thai government realized those pressures and also the Thai society is lacking of skill workforce and approaching the aging society, lacking new entrants to the labour market. Various policies on education, training and life long learning / training for employability have been issued for developing knowledge, skills and competencies of people.

7 POLICY ON HUMAN RESOURCES DEVELOPMENT (HRD) Policies of the Government related to HRD can be considered from: The 10th National Economic and Social Development Plan A.D To develop the quality of people and the Thai society to be the wisdom and learning society. To develop the potential, competency and skills of people to cope with the competitiveness of the country by increasing knowledge and skills for working such as analytical skill, innovation, problem solving, decision-making, team working, ethics and working discipline for working with the new technology as well as increasing productivity

8 POLICY ON HUMAN RESOURCES DEVELOPMENT (HRD) Policies of the Government related to HRD can be considered from: Set up the system of learning and training that can be working with new technology. Networking from the basic to the professional level, and link between government, private sector, and the community for the labour development. Organizing short courses training, promote inplant training, workplace learning, and the learning centre. Set up the system that match the skills or competency to the wage structure. The skill training should be extended to the vulnerable people who are employees or self-employed people.

9 SKILL DEVELOPMENT PROMOTION ACT B.E.2545 (A.D.2002) Skill development has never been as important as it is in today s globalizing world, where technology dictates rapid changes to the way in which skills are acquired, new skills developed and existing skills upgraded. Thai government considers that human resource is the main asset of nation and should be continuously developed on par with the development of socio-economic and technology to be high quality resource. There is a need to rethink and broaden the notion of lifelong education and training. Not only must it adapt to changes in the nature of work, but it must also constitute a continuous process of forming whole human beings their knowledge and aptitudes, as well as the critical faculty and ability to act. It should enable people to develop awareness of themselves and their environment and encourage them to play their social role at work and in the community.

10 SKILL DEVELOPMENT PROMOTION ACT B.E.2545 (A.D.2002). Consider that the best strategy to develop workforce is in the workplace, so the vital role of enterprises on human resources development has been recognized. Skill Development Promotion Act B.E.2002 has been issuing for encouraging enterprises to provide training, upgrading skills, knowledge and competencies for employees and for those who are not employees. Encourage private sector to set up and register with the DSD their own training centers for workplace learning and training.. The incentives have been provided to enterprises by deduction the cost of training 200 percent from the annual tax payment.

11 SKILL DEVELOPMENT PROMOTION ACT B.E.2545 (A.D.2002) The compulsory measure has been applied for the establishments that have at least 100 employees have to provide training for the employees at the rate of 50 percent of the total number of employees, if not the employer have to pay contribution to the Skill Development Fund approximately 480 baht per head per year for the number of untrained employees. Further more the establishments gain other benefit under this Act such as exemption tax of the training machines, bringing experts or trainers to train their workers. Free charge of water and electric fees. The Thai fiscal year started from the October to September, according to the DSD, 2,919,719 workers were trained in the workplaces during October 2006 September 2007 (Labour Information for Administrators, September 2007).

12 Occupational Promotion Act To promote the setting up individual s experience documentation; To provide the proficiency classification and appropriate wages rate of occupations in line with proficiency classification; The Act provides recognize system in occupational trades; The Occupational Promotion Fund is set up in order to promote occupational development of people; The Act provides privilege incentive such as tax exemption for those enterprises involve in the scheme by employing proficiency certified employees and affording the wages according to the level of their competencies, skills; For those who would like to employ and be employed in the particular occupational trades which might be harmful to public safety, should apply skill license for working in that trade and the license should be renewed every five years;

13 Occupational Promotion Act Benefit to Public The Act is used as the tool to promote a better employment system by providing qualified employees for employers, better job opportunities for employees, appropriate human resource development direction and framework for training institutes. Public as a whole will mostly gain benefit from such Act. This Act will promoted the career development of employees in the workplace and for experienced people that have no qualification to have guarantee system for their knowledge, competencies to work and gain suitable wages for their capabilities

14 ROLE OF MINISTRY OF EDUCATION Ministry of Education has main responsibility on providing career guidance for students to choose their career during their schooling system in order to make decision in the higher education.

15 ROLE OF DEPARTMENT OF EMPLOYMENT (DOE) Department of Employment, Ministry of Labour has main responsibility on providing report on demand and supply of labour market information and also provide services on vocational guidance and employment services based on the labour market information. The service of DOE targeting to job seekers, informal sectors, self employment, students and people looking for part time job or supplementary occupation. The methodology is the aptitude test, psychiatric discovering, software program for self discovering for each occupation and profile of each occupation. From October 2006 to September 2007 there were 2,239,311 persons received the services of DOE.

16 The Somboon Group Company The company issued the Competency Visa for all employees. Employees

17 The Somboon Group Company Below exemplified the Competency Visa of each employee of the company. Source: Somboon Group Company

18 The Somboon Group Company The competency covered core and functional competency. Core competency included commitment and skills: adjustment, interpersonal, communication, leadership, and occupational skill, etc. Functional competency comprised of analytical skill, problem solving, hard-ware and computer software skills. The gap between required and existing skills of each employee was identified before training (See below charts). The charts and the above Visa were put together in a booklet form for evaluation and updated on a regular basis.

19 The Somboon Group Company Source: Somboon Group Company

20 Siam Cement Public Company Limited (A Thai-Owned Company) Learning Organization Human Resource Development Philosophy Technology, machinery and capital, these all-important factors in manufacturing have no meaning without people to control and manage them. People is the most valuable asset of all. Belief in the value of the Individual. Employees are well developed and motivated. The Group invests in people and treats them as members of the family.

21 Siam Cement Public Company Limited Process of Organization Development To provide development and training programs for all employees regardless of their careers and professional skills. Training activities are initiated continuously throughout the organization. The Group regards development and training as an essential investment. It is a prime responsibility of every affiliated company to initiate and support training activities. All supervisors are responsible for administering training programs for their subordinates. Employees participating in training courses are strongly encouraged to absorb knowledge and acquire modern techniques from these courses for their own as well as the company s benefits.

22 Siam Cement Public Company Limited There are three training schemes. Training Relating to Functional Skill Training Relating to Conceptual Skill Training Relating to Personal Skill The first and the second training schemes are aimed at developing employees capacity to be the smart people while the third one is meant for employee to be the good people or develop good attitude towards others, towards supervisors and subordinates, company s customers, enhancing team building capabilities, and also extend to morality in daily life.

23 Siam Cement Public Company Limited The Group offers a promising career plan for every employee. A university graduate will easily reach a managerial level after 10 years of services. MDP (Management Development Program), and intensive 3- week program, is a training program for managerial level, its content includes marketing, finance, operational excellence, leadership and strategic management. Many outstanding professors from leading universities in USA are selected to conduct MDP courses each year. The success of the MDP of the Group has been well known in Thailand since The company also has functional training in marketing, sales, technical and professional areas. Employees are trained on Total Quality Commitment (TQC) to improve their competitiveness, to promote the safety of employees, and to protect the environment.

24 Siam Cement Public Company Limited Moreover, for the high level staff are arranged to attend oversea courses, i.e., Advanced Management Program at Harvard Business School. Also, SCG is one of the first companies in Thailand to sponsor experienced staff to earn an MBA in top ten business schools in the U.S. and Europe since Development Method at SCG - Training - Master Degree Scholarship - Domestic and oversea visit - Job rotation - Coaching, counseling - Being instructor - Productivity improvement participation

25 Siam Cement Public Company Limited The company values people who are dedicated to learning. The company takes responsibility to train its people at every level with training schemes that prepare all employees to become productive members of a knowledge-based society. Learning takes place both through formal training and in work place. Job rotation. Each employee is assigned to work in a particular position not more than 4-5 years. Job rotation encourages people to learn how to deal with new tasks and to create new working networks. Best practice community is another learning source through sharing best practices and networking among professionals across various business groups, Site visits, best practices are shared through intranet web sites. Better knowledge sharing will enhance performance, reduce cycle time, speed innovation, or create deeper customer relationships.

26 Siam Cement Public Company Limited Success of Human Resource Development There are three main factors for the success of the HRD in Siam Cement Group: Firstly, the top-level administration of the company believes that human resource development is an important business principle. Secondly, the company considers that training is not an expense, but it is in fact as long-term investment. The last factor is that employees must be constantly motivated towards self-development. The most poignant indicator of the success of the Group human resource development Over the last 30 years or more the Siam Cement groups has diversified from the originally 5 mere companies to now over 80 companies. Throughout the entire time period we were only obliged to fill in 3 top managerial posts from outside sources, the rest were all readily supplied by internal promotion.

27 CONCLUSION AND RECOMMENDATION Career Development in Thailand has been done successfully in the large and multi national corporations but for small and medium enterprises still have problems. Students and people in the informal sectors and self-employed persons are still on process to improve the system and services. Learning and sharing good practices among APEC economies is a good strategy to develop our workforce in the APEC region.

28 Thank you

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