Human Resources Management The Coffee House

UNIVERSITY OF ECONOMICS FINANCE HUMAN RESOURCES MANAGEMENT MTG111OE A24E HUMAN RESOURCES MANAGEMENT AT THE COFFEE HOUSE LECTURER MRS DANG THU HUONG SEMESTER IIA (2021 2022) TEAM 7 MEMB. VN Coffee Tea Service Trading corporation (The Coffee House) started in 2014 with the 1st store in Cao Thang and had a total of over 100 stores across Viet Nam (as of 82018, including The Coffee House and Ten Ren). In 42022, we have 154 stores all over Vietnam. We are opening 1 2 stores every week and plan to keep this outrageous growth rate for a few more years. We strike to make the difference in Vietnam in terms of product excellence and service quality. Currently, we have over 3000 teammates serving 20,000 visitors per day with our core purpose and reason for being is to deliver happiness to people. It stands for “connecting with other people”. We believe happiness is in the hands of everyone, by the same way we could.

UNIVERSITY OF ECONOMICS & FINANCE

HUMAN RESOURCES MANAGEMENT

MTG111OE.A24E

HUMAN RESOURCES MANAGEMENT

AT THE COFFEE HOUSE

LECTURER: MRS DANG THU HUONG

NGUYEN HOANG DUC

PHAM NGUYEN ANH QUAN

*************

Table of Contents

1 Over view of VN Coffee Tea Service Trading corporation 1

1.1 Formation and development 1

1.1.1 About The Coffee House 1

1.1.2 History of The Coffee House 1

1.1.3 Vision 6

1.1.4 Mission 7

1.1.5 Core value 7

1.1.6 Revenue 7

1.1.7 Culture 9

2 Human Resources Statistics of The Coffee House 10

2.1 HR Statistics 10

2.2 Human resource characteristics 10

2.2.1 About employee’s age 10

2.2.2 About personality 10

2.2.3 About sex 10

2.3 Human resources needs 10

3 Human resources policies 11

3.1 Work rules 11

3.1.1 Work hours 11

3.1.2 Day off 11

3.1.3 Off sick 12

3.1.4 Tet holiday 12

3.1.5 Regulations on the use of phone 12

3.1.6 Listen and accept customer complaints 12

3.2 Benefits 13

3.2.1 Direct reward 13

3.2.2 Indirect reward 14

4 Job analysis 14

4.1 Organization chart of The Coffee House 14

4.1.1 Executive Board 14

4.1.2 Personnel structure 16

4.2 Working parttime at The Coffee House 17

5 Human resources planning 18

5.1 Factors affecting the human resources of The Coffee House 18

5.1.1 External HR environment 18

5.1.2 The Cofffee House environment 19

5.2 Method of balancing human resources 20

6 Recruitment process: 21

6.1 Recruitment procedure 21

6.2 Recruitment notification process 21

6.3 Recruitment process for candidates 21

6.3.1 For office block 21

6.3.2 For store block 21

6.4 Recruitment process within the company 22

6.4.1 Proposing recruitment needs 23

6.4.2 Identifying and synthesizing recruitment needs: 23

6.4.3 Make a recruitment plan: 24

6.4.4 Recruitment implementation: 24

6.4.5 New employees’ approval: 25

6.4.6 Candidates resources: 25

7 Selection process 26

7.1 Review candidates’ profiles 26

7.2 First interview 27

7.3 Second interview 27

7.4 Employee’s verification 28

7.5 Approval process 28

8 New Employee Orientation program: 29

9 Training activities 30

9.1 Part-time 30

9.2 Make up 31

9.3 Cashier 31

10 Employee performance evaluation 32

10.1 Working time assessment system 32

10.2 Working performance assessment system 33

11 Performance management process 40

11.1 Process and Evaluation criteria SMART, KPI 40

11.1.1 Process 40

11.1.2 Evaluation criteria: 41

12 TOTAL REWARDS: 45

13 Evaluation 48

2 Over view of VN Coffee Tea Service Trading corporation 2.1 Formation and development

2.1.1 About The Coffee House

VN Coffee Tea Service Trading corporation (The Coffee House) started in 2014 with the 1st store in Cao Thang and had a total of over

100 stores across Viet Nam (as of 8/2018, including The Coffee

House and Ten Ren) In 4/2022, we have 154 stores all over Vietnam

We are opening 1 - 2 stores every week and plan to keep this

outrageous growth rate for a few more years We strike to make the difference in Vietnam in terms of product excellence and service quality

Currently, we have over 3000 teammates serving 20,000 visitors per day with our core purpose and reason for being is to deliver happiness

to people It stands for “connecting with other people” We believe happiness is in the hands of everyone, by the same way we could

Full name: VN Coffee Tea Service Trading corporation

Head Office: 195/10E Dien Bien Phu, Ward 15, Binh Thanh District,

Ho Chi Minh, Vietnam

Hotline: 1800 6936

Industries: Food & Beverage Services

Slogan: “Customer-Centric"

2.1.2 History of The Coffee House

Vietnam Coffee Tea Service AND Trading Corporation was founded

by Mr Nguyen Hai Ninh who held the CEO position in the early years Mr Ninh, born in 1987, was once known as the co-founder of the Urban Station chain, which created the coffee trend among young people

Mr Nguyen Hai Ninh

In 2014, Mr Ninh established The Coffee House chain with the first stores In 2018, The Coffee House has recently replaced its CEO Mr Mai Hoang Phuong who is co-founder of Seedcom and The Coffee House will take over the position of CEO of The Coffee House

Mr Mai Hoang Phuong

2014: LAUNCHING THE FIRST STORE at 86-88 Cao Thang After

3 years, The Coffee House has more than 60 stores in Ho Chi Minh City

2015: The Coffee House is available in Hanoi Up to now, The Coffee

House has 14 stores in the central areas of Hanoi capital

2016: In June 2016, The Coffee House launched its own mobile app

After more than 2 years, The Coffee House application has now been downloaded more than 100,000 times and received positive feedback from users

2017: The Coffee House brings the experience of “Going to coffee”

more widely, to Da Nang, Bien Hoa and Vung Tau

2018: OFFICIALLY CROSS 100 STORE: After 4 years of launching

and operating in Vietnam, The Coffee House officially surpassed the threshold of 100 stores, with the desire "Everybody has 1 The Coffee House near home"

2.1.3 Vision

“Coffee brings people closer” The Coffee House aims to appreciate and value the connection between people and customer experience

At The Coffee House, there is always humanity, kindness and

opportunities to challenge themselves so that each individual becomes

a better version every day That is also the core value that makes The Coffee House live as today amidst the volatile F&B market

The Coffee House's 2019 revenue is only behind Highlands Coffee, surpassing Starbucks Vietnam and Phuc Long However, this is the first year The Coffee House has recorded a loss of more than 80

billion VND

The above business results of The Coffee House are really surprising when in the previous 3 years, despite not achieving a high level of profit, this coffee chain has always been profitable.

In the years 2020 and 2021, the situation has continued to become more difficult when The Coffee House is among the coffee chains thathave suffered the most during the pandemic According to Mr Dinh Anh Huan, Chairman of Seedcom and Chairman of the Board of

Directors of The Coffee House, approximately two-thirds of the

chain's nearly 180 stores must limit the number of customers entering the store during each epidemic to ensure the minimum distance This means a significant drop in revenue

2.1.7 Culture

Customer-centric

The most authentic proof for this word is clearly shown through the true stories that customers have experienced at The Coffee House A customer once shared: "The cup of coffee that has not been drunk has poured on me, both cool and fragrant I ordered another cup with surprised eyes, after a while she brought it and told me that the cup was not used yet so they brought another glass to make up for it.”Another story is also unique to this brand: Customers come to the store with a voucher to use it but have absolutely no idea that the voucher has expired Instead of refusing, the staff gently said "Dear sir, although the voucher has expired, we still give you a discount as usual"

3 Human Resources Statistics of The Coffee House

3.1 HR Statistics

 The Coffee House has 154 chain stores and more than 3000 employees

 Each chain store will need between 10-30 employees per month

3.2 Human resource characteristics

3.2.1 About employee’s age

The Coffee House doesn't have any rules about hiring specific age groups Most of the staff are young people 70% of employees are students

More than half the age-based structure of staff is from 18-25 years and 25-35 years old

Minimum age: 18 years old

Average age of employees: 24 years old

3.2.2 About personality

Can work fast for a long time and optimistic even under pressure, enthusiastic, has a positive attitude

3.2.3 About sex

There is a large difference in the gender distribution of human

resources when the proportion of female employees is nearly twice the proportion of male employees

3.3 Human resources needs

For any new roll out business plan

 3-5 sales staff

 2-3 finance department staff

 2-3 employees of human resources department

 2 employees of marketing

 3-5 staff of operation department

 2-5 staff of technical department

Number of additional staff needed:

 Area manager: 1/ area

 Staff at a store: 1 store manager, 20 sales staff ( including time and part-time)

full-4 Human resources policies

4.1 Work rules

4.1.1 Work hours

Rotating shifts (required): 5-6 hours/shift/day; 4-6 days/week

Specific time of working shifts: (There may be a difference between shifts depending on the store)

Shift S: 6:30am - 11:30am

All employees will have an irregular day off during the week,

depending on the work schedule registered by the employee before the manager confirms the shift

In the event of an unexpected schedule, the employee must propose and agree with another employee to change or change the shift If an

employee can't find a replacement, he/she is required to work

according to the shift he/she has registered

4.1.3 Off sick

Employees who are sick or have unexpected work that cannot go to work on their assigned shift should be responsible for notifying the manager three hours before entering the shift so that the manager can arrange replacement personnel Employees who do not notify or notify late will be evaluated and deducted from the monthly bonus

4.1.4 Tet holiday

Depending on the Tet holiday schedule, the employees who work during the holiday will be paid 300% of the salary compared to the normal working day

4.1.5 Regulations on the use of phone

All employees do not use phones for personal purposes during the shift without the permission of the manager

Absolutely do not use the bar or use the phone while serving with customers, even if the manager has given permission before

4.1.6 Listen and accept customer complaints

The staff immediately apologized to the customer and asked for your understanding, calmly handling the situation according to the trained process

In case the staff can't handle it, we hope you understand and suggest that the staff contact the manager to propose a solution

Absolutely must not:

- Arguing with customers

– There are inappropriate behaviors and attitudes towards customers

4.2 Benefits

The Coffee House will reward employees in two forms: Direct rewardand indirect reward

4.2.1 Direct reward

The Coffee House will pay salary according to the 2P method:

According to job title (Position) and individual employee (Person)

 Financial salary:

Serving staff (Full-time, part-time)

The company pays hourly wages with the basic salary: 15k/h (Trial period), official salary 18k/h to 21k/h In addition, The Coffee House also pays in the form of a bonus salary, by discounting the number of cakes that the employee sells Bonuses will encourage employees to work more efficiently, wanting to sell more cakes to receive rewards This is also a form where TCH runs sales for each branch store

 Officer:

Fixed salary + KPI salary + % of revenue Hard salary ranges from 4 million to 5 million or 7-8 million, depending on the department and working experience at the company

In addition, there are allowances, insurance, paid leave (according to the company's regulations), 13th month salary, Tet bonus (because The Coffee House operates through Tet)

 Non-financial salary:

There are special promotions for sales staff: discounts on drinks at thestore, vouchers,

Ideal environment

 Flexible, challenging, dynamic and friendly These are the

things The coffee house gives you the comfort to focus on creating

the best work efficiency with the support of colleagues and guidance from management

Career development opportunities

 You will have opportunities to learn very quickly and develop a sustainable career in the F&B industry

Better version of yourself

 What you have to commit to The Coffee House in the

thoroughness that comes with work and passion, we respect

individual efforts and uphold the spirit of proactively pioneering to solve problems

 Sickness, illness and occupational accident allowance

5 Job analysis

5.1 Organization chart of The Coffee House

5.1.1 Executive Board

 Duties of departments at The Coffee House

- Sales department: Focusing on planning and specific action

programs for the company’s business strategy is increasing

customers’ experience, build a system open new store

- Finance department: From the specific plan and program of

activities of the sales department, the finance and accounting

department must make list of estimated costs and expenses to

complete the strategy

- HR department: Organize the work of allocating human

resources or recruiting more staff for new stores, giving specific

recruitment programs and numbers of each new store in the regions

- Marketing department: Responsible for managing the

marketing plan for the new store after opening and building brand awareness and promoting the new store in locality

- Operation department: Responsible for contacting and

working with other departments in the company, then deloying and organizing the implementation of plans at stores in each province and region Including planning activities to realize business goals,

managing human resources, ensuring revenue

- Technical Department: Responsible for the strategy of

increasing customer experience and building system capacity

Complete and put into use the Pick-up service system, build a strong technology platform and digitally transform online and offline

business processes

5.1.2 Personnel structure

 Work assignment table

Manage

- Plan, build and develop the café shop

- Manage, coordinate, solve problems

- Monitor revenue and expenditure daily

Cashier 2 -collect money from customersDirectly calculate expenses and

Waiter,

Barista 6 - - Serve customers, clean the café shopMake drinks for customers

Security 1 -protect the café shopTake care of customers’vehicles and

5.2 Working parttime at The Coffee House

 Position: Part-time employee

 Main job:

- Serve customers

- Ensure work shop hygiene

- Support the work in the counter and lobby according to the arrangement of the store manager

 Working time:

- Rotating shifts (mandatory): 5-6 hours/shift/day, 4-6 days/week Specific time of working shifts ( There may be a difference between shifts depending on the store)

Shift S: 6:30am – 11:30am

Shift G: 9:30am – 2:30am

Shift C: 12:30am – 5:30pm

Shift T: 6:00pm – 11:30pm

 Job requirements

- Students who are 18 years or older

- Love customers service

- Desire to accumulate work experience in the F&B industry

- Have good health, be diligent, proactive in work

 Pay and bonus

- Income: 1,800,000 VND – 2,200,000 VND (Basic salary:

6 Human resources planning

6.1 Factors affecting the human resources of The Coffee House 6.1.1 External HR environment

- Competitors: Due to the attractiveness of the coffee market coming from changing consumer habits and increasing incomes in bigcities, The Coffee House's human resource competitor has a

significant contribution face of famous coffee shop chains such as Cong Coffee, Urban Station Coffee, Phuc Long, Highlands, Trung Nguyen, Starbucks, Coffee Bean,

- Customers: Targeted customers are young people aged 17, who

are already working, like to experience luxury cafes with mid-range prices but require quality drinks The needs of customers are what directly affect the human resources of The Coffee House The

friendliness and working capacity of the staff contribute to the

satisfaction and satisfaction of customers

- Culture: Vietnamese people have their own style of enjoying

coffee, they do not consider coffee as a quick drink but they enjoy coffee as a culture: meeting, communicating, sharing experiences space and drinks So The Coffee House not only sells coffee or pure drinks like other shops, but they also focus on service Demanding good service requires trained staff as well as skills and qualifications

- Economic situation: Vietnam is one of three Southeast Asian

countries in the top 50 economies with the best business environment

in the world by Bloomberg news However, the volatility of the

market, the increase in the price of raw materials also affects the personnel of The Coffee House The most typical example is when the Covid-19 pandemic broke out in Vietnam in 2020, The Coffee House closed 120/150 stores, meaning a reduction in human

resources

- Technology: With modern dispensing machines as well as

customer data management, it requires knowledgeable and trained employees

6.1.2 The Cofffee House environment

- Business strategy: Need staff, manager to well implement the

goal of The Coffee House: Provide services, bring satisfaction as well

as a space to study, work, exchange, Organize events to bring profits and customers for The Coffee House

- The Coffee House culture: The Coffee House is

people-centered, Not only retaining customers, but this coffee chain also retains the loyalty and dedication of its employees All employees

here are treated like family and enjoy attractive salaries and benefits

At the same time, the rewards and punishments are clear and public based on the effort spent

- The characteristics of The Coffee House employees: The

majority of employees at The Coffee House are GenX and millennials

in the age range of 18-24 years old and 24-34 years old They

desperately need a dynamic environment and experience The Coffee House opens for employees an ideal working environment, solidarity, creativity and dynamism

- Human resource management: Make appropriate policies,

have a long-term vision, and make a clear plan Recruit more

employees for the store before Tet and after Tet, bonus, employee retention policies…

6.2 Method of balancing human resources

 Retaining qualified employees

- Ensure fairness in salary payment

- Arrange staff effectively

- Improve compensation policies

 Human resource development

- Policy of salary, bonus and welfare

- Towards the goal of turning The Coffee House into a dynamic and creative environment

- Through the website: https://tuyendung.thecoffeehouse.com

- Through the Facebook page:

https://www.facebook.com/The.Coffee.House.2014

- Through recruitment groups on Facebook (Bartenders

recruiting; Part-time jobs for students;…)

- Through recruitment websites (https://careerbuilder.vn; )

- Post recruitment notices in stores

7.3 Recruitment process for candidates

7.3.1 For office block

- Step 1: Candidates will send CV directly at Website / Email of employer

- Step 2: HR Department screen CV

- Step 3: The Human Resources Department will directly

contact by phone to discuss with suitable candidates and schedule an interview directly at the office

- Step 4: Direct interview with Department Head

- Step 5: Get result

7.3.2 For store block

- Step 1: Candidates fill out the online application at the website

- Step 2: Human Resources Department screen candidates and contact as soon as possible via Email/Phone

- Step 3: Face-to-face interview at the Office/Shop

- Step 4: After 7 days, the Human Resources Department will announce the interview results

7.4 Recruitment process within the company

Procedure Related department

Department with recruitment needs

New employees’ approval

Board of directors and managers

Department with recruitment needs

7.4.1 Proposing recruitment needs

- Departments notify the need to recruit employees for vacant positions or recently opened positions to the human resources

department