operations mangement final project overview of human resources management and application of management theory in unilevers human resources administration

Human resource management is a set of concepts, policies, and operational actions aimed atattracting, training, developing, and retaining a company's personnel in order to create the bes

UEH UNIVERSITY UEH COLLEGE OF BUSINESS (COB)DEPARTMENT OFADMINISTRATION

Operations Mangement Final Project

OVERVIEW OF HUMAN RESOURCES MANAGEMENT AND APPLICATION OF MANAGEMENT THEORY IN UNILEVER'S HUMAN RESOURCES ADMINISTRATION

Class: 21C1MAN50205801 Lecturer: Đặng Hữu Phúc (Ph.d) Student: Phạm Ngọc Hằng Student code: 31201021028

The demand for human resources, particularly qualified human resources, has risen in

tandem with the Vietnamese economy's rapid development and international integration in recent years Human resources will have an impact on the enterprise in the production process; they will have an impact on business operations in both positive and negative ways, and this will have a directimpact on the business's profitability Human resources are the most important component in

determining whether or not a company will survive and grow As a result, effectively recruiting, training, and managing human resources is a frequent problem that every manager must address How to keep employees by utilizing human resources Finding a solution to how to keep employees and successfully use human resources will be a vital topic for managers to solve As a result, the business team will be more stable, saving time and money, reducing internal errors, and assisting enterprises in operating more efficiently and improving product and service quality Moreover, gain clients' trust Understanding the importance of Human Resource Management in Operations and Production Management, I want to go through this small research paper to summarize some of the most general perspectives on human resource management, as well as analyze a corporation with an excellent human resource management strategy that is Unilever, consider how to use the company's human resource management theories, resulting in correct perspectives and effective human

resource strategies, contributing to good resource management to generate competitive strengths, and so understanding another component of Operations Management

Table of Contents

1 Theoretical Basis 5

1.1 What is human resources? 5

1.2 What is human resources management? 5

1.3 The role of human resource management 6

1.4 HRM Objectives: 7

1.5 HRM Functions: 8

2 Human resource management in enterprises: 10

2.1 Attracting human resources activity 10

2.1.1 Human resource planning 10

2.1.2 Job analysis activity 12

2.1.3 Recruitment activity 14

2.2 Training and development activities 17

2.2.1 Goals 17

2.2.2 Influential factors 18

2.3 Maintaining human resources activity 19

2.3.1 Assess employee performance 19

2.3.2 Methods of evaluating employee performance 20

2.3.3 Remuneration, reward and welfare activity 23

3 Western human resource management theories 24

3.1 Theory of X 24

3.2 Theory Y 25

3.3 Theory of Z 26

3.4 Compare 3 theories X, Y Z 27

1 Introduction: 29

1.1 History of formation and development 29

1.2 Industry, field of operation and business 30

2 Practical relation to the application of Western human resource management theories in Unilever Vietnam

31

2.1 Application in human resource recruitment 31

2.2 Applying Western management theory in human resources recruitment 33

2.3 Applying in the arrangement and use of human resources 34

2.4 Applying in training and developing human resources 35

2.5 Applying in assessing human resources .38

3 Evaluation and recommendations for human resource management of enterprises 40

3.1 The results achieved when applying Western management measures .40

4 Some limitations in human resource management of Unilever Vietnam and proposed solutions 41

5 Conclusion 43

1 Theoretical Basis

1.1.What is human resources?

An organization's or business's human resource is the collection of all employees with skills

in a specific field who make up the workforce engaged in any activity to achieve the

business's or organization's goals and objectives Human resources are the foundation of any

business or organization

1.2.What is human resources management?

Human resource management is a set of concepts, policies, and operational actions aimed atattracting, training, developing, and retaining a company's personnel in order to create the bestpossible results for both the company and its employees

According to Mathis & Jackson (2007), human resource management is the establishment offormal procedures in an organization to ensure the effective and efficient use of human potential

to achieve organizational goals

Human resource management is one of the fundamental roles of organizational management, and itentails planning (planning), organizing, directing, and managing actions to attract, utilize, and

develop personnel in order to meet organizational goals

In terms of content, it is defined as the recruitment, selection, maintenance, development, use,

motivation, and provision of facilities for human resources within an organization in order to

attract, build, and develop, employ, evaluate, preserve, and maintain a workforce that meets the organization's quantity and quality requirements

The essence of human resource management, on the other hand, is the management of people within

an organization, i.e., how the company treats its personnel

Standpoint Labor is an input cost Human resources are valuable assets that

need to be developed

Training Objectives Help employees adapt to Invest in human resource development

their positions

Perspectives Short and medium term Long-term

Competitive advantage Markets and Technology Quality of human resources

Basis of productivity Machines + Organizations Technology + Organization + Quality of

Motivational factors Money and career Nature of work + Promotion + Money

advancement

Attitude towards Employees are often Human resources can adapt, face

1.3.The role of human resource management

Human resources are a crucial component of any business, and human resource management is a key area of operations and production management With increasingly advanced and modern

technology and scientific equipment, as well as increasingly complex and demanding work needs, whether human resources can be assured or not has become a strategic component, generating a competitive advantage Organizations and businesses face competition

At this moment, the organization's survival and robust development are dependent on a team of human resources with extensive expertise and experience Businesses must be able to manage and train personnel, as well as provide an ideal environment for employees to work comfortably and

Economically, HRM gives businesses the opportunity to fully exploit the potential capacity of human resources As a result, the appropriate decisions about hiring the right person for the right tasks are made, resulting in increased labor productivity and competitive advantages for

businesses in the market

In terms of society, human resource management demonstrates a fundamental understanding of employees' rights, preserving their values and status inside the company Focusing on a mutually beneficial agreement between the interests of the organization, the enterprise, and the interests of the employees, in order to reduce labor-capital conflict

1.4.HRM Objectives:

Human resource management's purpose is to ensure that firms have a productive staff Managers must know how to recruit, develop, evaluate, and retain their staff in order to achieve this goal Human resource management must attempt to achieve the following four main goals in order to gain human resources to meet the development strategy:

Personal Objectives: Managers must assist their staff in achieving their personal objectives

Managers must understand that if employees lose sight of their personal objectives, productivity will suffer, and employees may leave the company Specific human resource management

activities are required to attain the above objectives

Functional Objectives: Because each department has its own set of functions and responsibilities, each department must contribute to the company's overall goal

Organizational Objectives: Human resource management is all about determining the best way fordepartments and the entire company to have effective personnel Human resource management is not the aim in and of itself; it is merely a tool to assist the organization in achieving its objectives

Societal Objectives: Businesses must fulfill the requirements and difficulties of society; they exist

to benefit society, not just themselves

1.5.HRM Functions:

Human resource management is a large system with various activities to exploit; the function of human resource management is highly dependent on changes in the business environment, labor market

fluctuations, organizational structure, financing, and the level of development in the enterprise,

Therefore, each manager has a different view of the function of human resource management However, we can separate human resource management functions into three primary groups that serve the organization, such as:

Functional group of attracting human resources

This functional group's main goal is to ensure that the number of personnel has the proper skills and competencies to complement the organization's and business's task Enterprises must base

themselves on production, operating, and business plans, as well as the present circumstances of employing human resources in the enterprise at the past and current period, in order to identify how

to recruit excellent human resources for the job Determine which positions require additional

staffing and what number of personnel is required to meet the company's needs

Functional group of training and developing human resources

After you've hired personnel, the following step is to train them and help them advance This

functional group focuses on developing the professional competence of employees who have been chosen for positions within the organization, so that they may better understand the business and do the tasks allocated to them Simultaneously, we acknowledge and encourage them to reach their maximum potential in order to benefit themselves, their work, and the business

This functional group is easily noticeable in any organization when new employees join; the company will create training sessions for them, analyze and explain roles when the company's production needs or

technical procedures alter Career guidance, skills training for employees; promoting company culture,

enhancing professional skills, and updating new technology information relevant to the organization for staff and professional departments are typical activities under this group.

Functional group of maintaining human resources

Retaining human resources is the final essential functional group An effective management firmunderstands how to recruit, use, and, most importantly, retain human resources so that they may put their training and knowledge to work for the company and the business.

The motivating function is linked to remuneration policies and activities that encourage employees

in the enterprise to work effectively, conscientiously, with a sense of responsibility, and to complete work to the highest possible standard, assign highly challenging tasks, let employees understand what it means to meet the organization's requirements, and evaluate their professionalism; paying employees based on their abilities and rewarding each initiative, each contribution that benefits the company, raising production and business efficiency, and enhancing the company's reputation, among other things, are efficient alternatives to hire and retain a talented staff for the company To

be able to promote employees, managers must know how to plan suitable salaries, have policies on compensation, promotion, punishment, benefits, and allowances, and objectively evaluate

employees' capacity and keep your company's human resources in good shape

The industrial relations function is responsible for tasks such as signing labor contracts, settling complaints, resolving labor disputes, and engaging with employees that are aimed at enhancing the working environment and working relationships Employees contribute to a better working

environment by providing social advantages such as health insurance, social insurance, and

workplace safety Good management of this role will produce a pleasant working environment for employees, as well as connect everyone in the company, preserve traditional traditions, and foster cultural values In today's turbulent market, owning a business helps enterprises hold steadfast in the face of fierce competition

2 Human resource management in enterprises:

2.1.Attracting human resources activity

2.1.1 Human resource planning

2.1.1.1. Conception

The initial phase in the human resource management process is human resource planning This is a study process that involves systematically assessing human resource requirements in order to develop

policies and programs to ensure that the company has sufficient human resources with the

appropriate traits and skills ideal for doing tasks of high quality, productivity, and efficiency

2.1.1.2 Human resource planning process

Human resource planning takes place in the sequence of 5 steps as follows:

Step 1: Forecasting human resource needs

Forecasting human resource demand is projecting the number of future employees of the proper quality and quantity in relation to the company's strategic plan over a specific time period Demand forecasting is both the most important and the most difficult component of human resource planning It's difficult for a variety of reasons, but it's especially difficult because there are no ultimate solutions.

Quantitative and qualitative forecasting methods are the two types of forecasting methodologies

available Both methods can be used to track the overall performance of the workforce, individual

employees, or business units Anecdotal observations are included in qualitative reporting,

while quantitative data is statistical or more detailed

Choose the techniques that make the most sense in your situation The work-study approach,

which determines the required working hours to produce units, may not make sense in a

non-manufacturing organization, for example You can identify issues that are affecting your

company's productivity by gathering both quantitative and qualitative data, and then develop a well-rounded forecast to improve the company's efficiency, ensure you're not over or

understaffed, and understand future needs by gathering both quantitative and qualitative data

Step 2: Analyze the current human resource condition

Examine the benefits and drawbacks of the company's current human resources Each employee's structure, qualifications, talents, experience, working attitude, responsibilities, and authority must all be

evaluated From a business standpoint, you must evaluate the company's human resource

management policies, goals, operational strategies, working environment, and so on

Step 3: Decide whether you want to enhance or decrease your human resources

Compare the enterprise's existing status of human resources to the forecasted future human

resource needs You can then assess whether the company's human resources are redundant or insufficient, and propose strategies to boost or decrease human resources

Step 4: Make an implementation plan

Make a clear, business-appropriate implementation plan Employee recruitment, reorganization of departmental personnel, restructuring of organizational structure, planning for employee

advancement and transfer, redundancy reduction, and staff training and development should all be addressed in the plan

Step 5: Assess the plan's implementation strategy

Assess the implementation process for any discrepancies between the declared aims and the plan's execution; Analyze the reasons for deviations and make recommendations for how to remedy them and enhance measures Following the planning of future human resources, businesses must locate those resources in order to ensure that they are available when needed

2.1.2 Job analysis activity

2.1.2.1 The concept of job analysis

Job analysis is the process of examining job content to determine working conditions, tasks,

responsibilities, authority, and the skills and attributes that employees must possess in order to do the job excellent work In human resource attraction efforts, job analysis is an important content that has an impact on other content

2.1.2.2 The purpose of job analysis

• Establish essential standards for human resource planning and provide information to performrecruitment in order to obtain the best possible results Forecasting the demand and supply capacity

of the enterprise's human resources

• Create content for training and retraining to fulfill employment requirements Furthermore, it also helps with research and improves working conditions

• Establish guidelines for evaluating job performance and setting expectations for employees

• Establishing a pay and salary adjustment system to ensure the organization's fairness

Job description

In fact, there is no regulation on a certain general job description, because there are many types of businesses with different sizes and ways of organization This is a description of the duties the person in the position is supposed to perform and under what conditions A job description usually includes the following:

a Job Objectives

The position's goal must be included in the job description This is the job objective that

corresponds to the primary responsibilities of this position

b Functions and duties

Each position's function is delegated from the department's overall mission The key responsibilitiesfor each of these functions must be specified in the job description To put it another way, a function

is the total of a set of tasks

A description of the overall intended outcome for the position will be necessary for each individual task or numerous sets of duties As previously said, these are qualitative evaluation standards that serve as the foundation for controlling work performance for managers as well as performance requirements for employees

c Authorities and Responsibilities

Authority and responsibility must correspond to the function and duties of the position Each individual is entitled to actively perform his or her duties with these powers, and must be held accountable for the work results of those duties The ability to employ financial resources, staff, operations, or make decisions on behalf of the signing are all common examples of key powers Meanwhile, the key duties in the task

performance process are related to property, finance, legal, and human resources.

d Competency Requirements

These are minimum competencies required for the position to perform the stated duties, ratherthan a description of the competencies of actual individuals at the company Basic competencyrequirements may include education, expertise, knowledge, experience, skills, and attitudes

2.1.3 Recruitment activity

2.1.3.1 Recruitment process concept

According to Wikipedia, recruitment is the process of screening and selecting qualified people for a job in an organization, company, or voluntary program or community group

2.1.3.2 Recruitment and Selection

A. Recruitment

Recruitment is the process of attracting qualified job applicants from the social and internalworkforce Every organization must be fully capable of attracting sufficient quantity and quality oflabor to achieve its objectives There are two main sources of recruitment in practice including:

a Sources from inside the business

The number of candidates from inside the enterprise is those who are working for that business, including those who are working in the enterprise that are targeted for positions higher than their current position In essence, internal recruitment is the promotion of employees The advantage of this source is saving costs for recruitment Allowing management to make accurate recruitment decisions because they know their

employees' talents and expertise; make the most of the labor force since

employees will be placed in more appropriate places; and encourage employees to dedicate

themselves to the enterprises

b Sources outside the business

Sources outside the business are newcomers to apply for jobs including students, graduates fromtraining systems, people who are unemployed, quit their old jobs, people who are working in other organizations, …This is a source that can provide a large and diverse workforce However, looking for outside labor sources has many advantages and disadvantages The advantage of this source is that it attracts new ideas and the cost of training is lower

There are recruitment methods from outside sources as follows:

Through advertising: This is an extremely effective method of attracting human resources, especially for large enterprises Businesses advertise through mass media such as

newspapers, the internet

Through the labor service office (Head Hunter): Using these service offices has the

advantage of reducing search and interview time because these HeadHunter centers often have a wide network and skilled persuasion ability, they have easier access to good

candidates with more experience and excellent students at universities

Through universities: This is the most commonly applied method in Vietnamese businesses today because universities are the place to provide the most suitable candidates for businesses at a low cost Businesses often approach universities by awarding prizes, gifts, sponsoring a student's scientific research project or program; approach the training room to look for excellent students, let them practice at their company, and then select suitable candidates.

B. Selection:

The process of evaluating and selecting the most suitable person from the candidates When recruiting employees, enterprises have to spend a large amount of money on paying them, so they need to choose cautiously to get the right person you need Businesses need to have a basis to conduct selection.

Formula for selection rate

* The meaning of this formula shows that the higher the selection rate, the more successful the recruitment process, the high reputation of the business and the attractive position.

Each business needs to go through many steps to find the right employee for their job requirements.Includes the following main steps:

Screening resumes: This step helps businesses to immediately eliminate unqualified candidates, without having to follow other procedures in recruitment, reducing recruitment costs.

Preliminary interview: The preliminary interview aims to eliminate obviously weak

candidates Enterprises can ask candidates to come and collect resumes then interview

directly or call candidates directly

Multiple choice test: Enterprises apply test forms, open-ended questions, situations, and sample work to select suitable candidates for the job Tests are often used to assess

candidates on basic knowledge and practical ability

Formal interview: This interview will be conducted by a senior staff in the official

human resources department, this is an official interview to examine the candidate's

ability and expertise, to see if the employee is really suitable for the job

Apprenticeship: Even though they have been recruited, candidates must go through a

challenge period, which is a probationary period This is the time when the candidate will have practical contact with the job, is the opportunity to show his ability and qualifications

to meet the job needs or not From there, the employer makes the final decision

Recruitment decision: This is the last and also the most important step in recruitment To raise the accuracy of decisions, it is necessary to systematically review information about the candidate, develop a summary of the candidate The selection committee will then set out the evaluation criteria, the most important factors for each job and evaluate the importance of each criterion All scores on the candidate during the selection process such as test scores, multiple choice scores, interview scores, etc will be summed up, and the candidate with the highest total

score will be selected

2.2.Training and development activities

2.2.1 Goals

The goal of human resource training is to make the most use of existing human resources; improve the professionalism and efficiency of the organization by helping employees understand clearly about the job, have more knowledgeable about their profession and perform their functions and duties more self-

consciously with a better attitude, as well as improve their adaptability to future jobs.

B. For enterprises:

Helping businesses improve labor productivity and business efficiency Maintain and improve the quality of human resources, creating competitive advantages for businesses

Avoiding outdated management Managers need to apply management methods that are

suitable for changes in technological processes, techniques and business environment.

Solving organizational problems Training and development can help managers resolve conflicts, conflicts between individuals, between unions and managers, set effective

policies on human resource management of enterprises

Leading job for new employees - Job training for new employees New employees often face many difficulties and surprises in the first days of working in an organization or enterprise, job-oriented programs for new employees will help them quickly adapt to their new working environment

Preparing the next team of managers and professionals Training and development help employees acquire the necessary skills for promotion opportunities and replace managers and professionals when necessary

C. For employees:

Creating professionalism and cohesion between employees and businesses

Directly helping employees perform better, especially when the employee's performance does not meet the standards, or when the employee takes on a new job

Updating new skills and knowledge for employees, helping them to successfully

apply technological and technical changes in the business

Meeting the needs and development aspirations of employees Being equipped with the necessary professional skills will stimulate employees to perform better, achieve better results, and want to

be given more challenging tasks with more opportunities for promotion.

Creating for employees a new way of seeing and thinking in their work, which is also the basis for promoting the creativity of employees at work

Human resource training and development plans: The development of human resource

training, retraining and development plans is derived from the subjective consciousness of the leadership, it must be consistent with reality and respond well to environmental changes

In the short term, the company can base itself on the current situation of its human resources,the job requirements, the scale and the output market prospect of the company to build a training plan and develop human resources directly, further to improve the efficiency of production and business activities In the long term, based on research on development trends of science and technology and the company's long-term strategy, based on its

financial potential to come up with a training and retraining plan which appropriate human resource maintenance and development

Employing post-trained workers: this is the clearest expression of the effectiveness of training and

their skills, are equipped with new knowledge, they are capable and ready to take on new tasks The placement of the right people, at the right places, with the right skills and

qualifications for which they are trained will encourage employees to bring into full play their potential, and the placement of workers in positions suitable to their qualifications and trained professions Training will also help us find the strengths and weaknesses of the training, maintenance and development of human resources

B. External factors

Social education and training system: When someone has deficiencies in knowledge, skills,

or experience, that person needs to be trained to meet the needs of the job The social

training and education system provides the majority of the workforce for businesses If the education and social training system is qualified, it will provide businesses with sufficient high-quality, qualified and skilled workers to do the job

Labor market: Enterprises recruiting workers in the abundant labor market can easily

recruit suitable people without retraining On the contrary, businesses will spend a lot of effort, time and money to be able to recruit the right people

2.3.Maintaining human resources activity

2.3.1 Assess employee performance

2.3.1.1 Objectives:

As an employee development tool:

o Consolidate, improve, and maintain achievement

o Determine career goals

o Identify training needs

As an administrative development tool:

o Connect salary, bonus with achievements

o Assess appropriate human resource policies and programs.

2.3.1.2 Benefits:

For the organization

o Evaluate employee's capacity

o Agree on upcoming goals with employees

o Make the right HR decisions

o Having appropriate support programs to improve the quality of human resources.

For individuals:

o Identify strengths and weaknesses

o Understand the goals and requirements of the upcoming work

o Proposing to improve working conditions

o Get advice on training and career guidance to improve work efficiency

2.3.2 Methods of evaluating employee performance

A Weighted Checklist Methods

- The Human Resources Department of upper management creates a list of evaluation questions for each position The questions might be rated with the same number of points or with various numbers

of points

Eg:

Respect leaders: Yes/No

Complete specific tasks: Yes/No

Common blunders: Yes/No

o Benefit: Easy to assess

o Error:

Difficulty synthesizing, analyzing, or evaluating each employee's performance

or conduct

B Performance Ranking

Rate employees on a scale of one to ten

Instead of using standards, compare employees to

others The highest score will go to the best person

o Benefits: Simple to implement, appropriate for a simple working environment

o Error:

It's difficult to compare work completion for jobs with varying responsibilities It's difficult to keep track of all of your tasks and actions

C Incident Method

Assess employee performance based on a set of criteria

o Example: 10% excellent, 70% average, 20% weak

Excellent personnel are promoted to higher-paying positions

Weak employees: consider extending pay increases, moving positions, or

D Graphic Rating Scale

This approach is created using criteria such as volume, quality, mental attitude, and

rule implementation

Each component is given a rating of outstanding, good, fair, mediocre, or weak

Based on the five elements listed above, but with some additional rules, such as: if the

average score is strong but one field is weak, it will be classified as weak

o Benefits:

At work, concentrate on a few critical KPIs Simple to comprehend and apply

Step 1: Identify the primary job criteria

Step 2: Classify each criterion using the following grading scale: excellent, good, average, weak, and poor Each of these scores must be defined precisely For example, when it

comes to customer service, good means no complaints, great means no complaints and the consumer is praised

Step 3: Determine the relative importance of each item in the total

F 360 feedback method

Evaluators can be supervisors, subordinates, coworkers, customers, or self-assessed

personnel Do not reveal the reviewer's name

Establish objectives based on employee and management

agreement Concentrate on the outcomes rather than the process

Provide employees with the greatest amount of autonomy in their work

Usually used at the company's senior management level, or when reviewing

departments, initiatives, or occupations that are tough to measure

o Benefits: Suitable for a wide range of occupations, including managerial, specialist, and project-related work

o Error: