Topic THE IMPORTANCE OF HUMAN RESOURCE MANAGEMENT AT KGROUP JSC, HO CHI MINH CITY

The purpose of this study is to evaluate the current human resource management of the case company KGroup Joint Stock Company, Ho Chi Minh City. The objectives of this research paper is to identify and analyze the problems with KGroup HCMC’s recruitment and selection, using data and information provided by the company’s HR department, and to provide the case company with suggestion on how to improve its human resource management for further development. This research is focus in recruitment sources and methods, and selection methods used by KGroup HCMC. Secondary data would be gathered from internal data and records provided and used with permission of KGroup HCMC; secondary data will also include various research studies and internet based sources. Primary data would be collected via survey questionnaires and an interview; which would provide both qualitative and quantitative data.

Ho Chi Minh city - 2019

GRADUATION THESIS

Major

Business Administration

Instructors:

NICOLE BAUDISCH, MBA

Student:

Topic

THE IMPORTANCE OF HUMAN

RESOURCE MANAGEMENT AT

K-GROUP JSC, HO CHI MINH CITY

TON THAT VU LUAN

Student ID: 94011500973

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FOREWORD

First, I would like to give my sincere thank you to the Administration and the Staff of

the Saigon International University During my 04 years of studying, SIU have created the best

environment and conditions for students to study in a dynamic, professional academic

environment, and specialized theoretical lessons and helpful life experiences, which has

become a key helping me to access into real life

Secondly, I would like to thank Ms Nicole Baudisch – my supervisor, for guiding me during

my process in completing my internship, this report and my Graduation Thesis Thank you for

your dedication and guiding me through each lesson at school and providing me with practical

knowledge and valuable life experiences for my career development

Finally, I would like to give my sincerely thanks to the entirety of K-Group Joint Stock

Company for providing me with the experiences in real working environment by participated

in the office, engage events and for sharing work experience and willing to help me improving

this report

Sincerely,

Ton That Vu Luan

COMMITMENT

I guarantee that this Thesis is accomplished by myself All collected data and analysis

results that are presented in this report are the truth This Thesis does not coincide with any

other scientific research

Ho Chi Minh City, July 14th, 2019

Student

Ton That Vu Luan

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SIU SUPERVISOR’S COMMENTS

TABLE OF CONTENTS

EXECUTIVE SUMMARY 1

CHAPTER I INTRODUCTION 2

CHAPTER II LITERATURE REVIEW 4

1 Human Resource Management 4

1.1 What is Human Resource Management? 4

1.2 Human Resource Management functions and activities 5

1.3 Roles of Human Resource Management 7

2 Recruitment 8

2.1 Definition 8

2.2 Goal of Recruitment 9

2.3 Sources and methods of Recruitment 10

2.4 Advantages and Disadvantages of Recruitment methods 11

2.5 Recruitment process 13

3 Selection 15

3.1 Definition and Selection objectives 15

3.2 Importance of Selection 16

3.3 Selection process and methods 17

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4 Performance 19

4.1 Key Performance Indicator 19

4.2 Organizational Performance 21

CHAPTER III THE CASE COMPANY 23

CHAPTER IV RESEARCH DESIGN 27

1 Research objectives and question 27

2 Research methodology 28

2.1 Quantitative research method 28

2.2 Qualitative research method 29

3 Data collection 31

3.1 Primary data 31

3.2 Secondary data 32

3.3 Sources of data 33

CHAPTER V ANALYSIS AND EVALUATION 34

1 Results from secondary data 34

1.1 Recruiting process and selection methods 34

1.2 Recruitment sources and methods 37

1.3 Organizational performance 44

2 Results from primary data 47

2.1 Results from interview 47

2.2 Results from survey 49

CHAPTER VI CONCLUSION AND RECOMMENDATIONS 58

1 Addressing the research questions 58

1.1 “To what extent does K-Group JSC Ho Chi Minh City’s Recruitment and Selection practices are effective to meet its Human resources needs?” 58

1.2 “To what extent does K-Group JSC Ho Chi Minh City’s Recruitment and Selection practices are effective toward its Organizational performances?” 59

1.3 Addressing the main research question 60

2 Recommendations for K-Group JSC HCMC 61

REFERENCES 63

APPENDIX 67

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LIST OF ACRONYMS

CV – Curriculum Vitae

HCMC – Ho Chi Minh City

IT – Information technology

JSC – Joint Stock Company

KSA – Knowledge, Skills and Abilities

LIST OF FIGURES – TABLES

FIGURE 2.6.1 – The recruitment and selection process (Dessler, 2013)

TABLE 1.2.1 – Number of candidates screened in accordance to recruitment sources over the

years

TABLE 1.2.2 – Number of candidates interviewed in accordance to recruitment sources over

the years

TABLE 1.2.3 – Number of candidates passed the selection process in accordance to recruitment

sources over the years

TABLE 1.2.4 – Number of candidates took the job offer in accordance to recruitment sources

over the years

TABLE 1.2.5 – Number of candidates applied and qualified in accordance to recruitment

sources over the years

2019

TABLE 1.3.2 – Total number of employees working at the company and resigned from the

company

TABLE 1.3.3 – Annual employee turnover rate

TABLE 2.2.1 – Recruitment request criteria and the extent of clarity of each as perceived by

the HR members

TABLE 2.2.2 – Internal obstructions and number of HR member agreed that it effect the

recruitment process

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TABLE 2.2.3 – External obstructions and number of HR member agreed that it effect the

recruitment process

TABLE 2.2.4 – Response time from the HR Department to interviewed candidates

TABLE 2.2.5 – Responses from employee survey on K-Group HCMC’s Recruitment and

Selection works

TABLE 2.2.6 – Responses from employee survey on results for each recruitment requests

TABLE 2.2.7 – Responses from employee survey on the source of hiring information about

their job

TABLE 2.2.8 – Responses from employee survey on selection tests that respondents have taken

TABLE 2.2.9 – Selection test in accordance to positions

TABLE 3.1.1 – Responses from employee survey on additional information received during

interviews

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EXECUTIVE SUMMARY

The purpose of this study is to evaluate the current human resource management of the

case company - K-Group Joint Stock Company, Ho Chi Minh City The objectives of this

research paper is to identify and analyze the problems with K-Group HCMC’s recruitment and selection, using data and information provided by the company’s HR department, and to provide the case company with suggestion on how to improve its human resource management for further development

This research is focus in recruitment sources and methods, and selection methods used by K-Group HCMC Secondary data would be gathered from internal data and records provided and used with permission of K-Group HCMC; secondary data will also include various research studies and internet based sources Primary data would be collected via survey questionnaires and an interview; which would provide both qualitative and quantitative data

Data gathered including insights from interview with K-Group HCMC’s HR Manager as well

as opinions from the rest of HR Department and employees via online survey on the case company’s human resource management Data would be gathered from the HR department and employees from various department at K-Group HCMC

Conclusions for this research will be presented at the final chapter of this paper, which would include answers for the research questions as well as suggestions for the case company regarding human resource management The results for this paper would include additional methods for each recruitment sources and additional selection methods, which would assist K-Group HCMC in order to improve its organizational performance

CHAPTER I INTRODUCTION

Human Resource Management can be agreed as one of the most widely discussed topic, and one of many major concerns among organizations; for it is made of individuals, in other words, people who contribute for its sustainability and growth Manpower is crucial for any establishment in order to accomplish necessary tasks to meet its goal; Therefore, organizations constantly looking for the most suitable people to fill in the right job to keep itself running and fulfill its vision

Recruitment and selection can be agreed as a crucial task in human resource management These tasks’ primary objective is to bolster any organizations’ workforce, by create a large pool of potential individual and choose the best, most suitable one in order to accommodate said organizations’ growth and development needs

In Vietnam, where Recruitment and talent acquisition in the corporate world is becoming a growing trend Both Vietnamese organizations and foreign companies alike are competing for the best people, in order to fulfill their respective missions and visions, as they reach out to the labor market through every mean possible in order to acquire the best people

The case company for this paper is K-Group Joint Stock Company, a Vietnamese

investment and management firm operating in a wide variety of industries including: Construction, Real-estate, advertisement-PR, Technology, Export The company has been growing steadily over the time and have expanded across the nation, and is now present in the north and central region of Vietnam The company’s initial branch in Ho Chi Minh city would

be the main subject for this research

This paper would examine the case company’s Recruitment and selection practices, as to what extent it affects the company’s overall performance Therefore, this thesis paper would answer

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the research question: “To what extend should K-Group JSC Ho Chi Minh City improve its

Recruitment and Selection in order to improve its Overall performance?”

In order to answer the afore-mentioned research question, this paper would answer the two following questions:

1 To what extent does K-Group JSC Ho Chi Minh City’s Recruitment and Selection practices are effective to meet its Human resources needs?

2 To what extent does K-Group JSC Ho Chi Minh City’s Recruitment and Selection practices are effective toward its Organizational performances?

The paper would achieve its objective to answer the research question through the mean of collecting and analyzing primary and secondary data, which would be provided by the case company in question As well as providing practical suggestions to the case company The aim

of this thesis paper is to assist K-Group Joint Stock Company, Ho Chi Minh City in their

improvement of Human Resource Management, specifically in the field of recruitment and selection

CHAPTER II LITERATURE REVIEW

1 Human Resource Management

1.1 What is Human Resource Management?

Robert L Mathis and John H Jackson define in their book Human Resource Management

ensure that human talent is used effectively and efficiently to accomplish organizational goals” (Mathis & Jackson, 2008, p 4)

Dessler defines Human resource management as a “process of acquiring, training, appraising, and compensating employees, and of attending to their labor relations, health and safety, and fairness concerns” (Dessler, 2013, p 4)

To consolidate from the above definitions, Human Resource Management can be understood

as the effective and efficient utilization of an organization’s workforce through acquiring, training, appraising and compensating them in order to accomplish organizational goals

In general, it is widely understood that the Human Resource department are responsible for the well-being of any organization’s workforce, hence ensuring organizational performance and productivity To be more specific, Dessler (2013), Mathis and Jackson (2008) respectively stated the four main responsibilities of HRM including:

- Recruitment, staffing, and talent management

- Training and developing human resources

- Compensating human resources

- Employee relations management

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1.2 Human Resource Management functions and activities

Dessler states that human resource management involves five primary functions, which are (Dessler, 2013, p 4):

- Planning: to establish goals and standards; developing rules and procedures; and

developing plans and forecasting

- Organizing: to give each subordinate a specific task; establishing departments; delegating

authority to subordinates; establishing channels of authority and communication; coordinating subordinates work

- Staffing: Determining what type of people you should hire; recruiting prospective

employees; selecting employees; training and developing employees; setting performance standards; evaluating performance; counseling employees; compensating employees

- Leading: Getting others to get the job done; maintaining morale and motivating

subordinates

- Controlling: Setting standards such as sales quotas, quality standards, or production

levels; checking to see how actual performance compares with these standards taking corrective action, as needed

Also in his book, Dessler states Human Resources Management include six specialties, that are

in accordance with the main responsibilities of HRM (Dessler, 2013, p 8):

- Recruiters: Search for qualified job applicants

- Equal Employment Opportunity (EEO) coordinators: Investigate and resolve EEO

grievances; examine organizational practices for potential violations; and compile and submit EEO reports

- Job analysts: Collect and examine information about jobs to prepare job descriptions

- Compensation managers: Develop compensation plans and handle the employee benefits

program

- Training specialists: Plan, organize, and direct training activities

- Labor relations specialists: Advise management on all aspects of union management

relations

Mathis and Jackson’s (2008) take on Human Resource management activities are mostly coincide with Dessler, with some additional activities are as follows:

- Strategic HR Management: As part of maintaining organizational competitiveness, HR

effectiveness can be increased with the use of HR measurement and HR technology Through HR planning, managers anticipate the future supply of and demand for employees An additional strategic HR concern is the retention of employees

- Equal Employment Opportunity: Compliance with equal employment opportunity (EEO)

laws and regulations affects all other HR activities The diversity of a workforce creates additional challenges For instance, a company must have sufficient diversity to meet affirmative action requirements

- Staffing: The aim of staffing is to provide a sufficient supply of qualified individuals to

fill jobs in an organization Job analysis lays the foundation for staffing by identifying what people do in their jobs These analyses are used when recruiting applicants for job openings The selection process is concerned with choosing qualified individuals to fill those jobs

- Talent Management and Development: Beginning with the orientation of new employees,

talent management and development includes different types of training In addition, HR development of employees and managers is necessary to prepare for future challenges Career planning identifies paths and activities for individual employees as they move