Managing sales staff at h m hennes mauritz vietnam co ltd

BARCHELOR THESIS Topic Managing sales staff at H&M Hennes & Mauritz Vietnam Co , Ltd NATIONAL ECONOMIC UNIVERSITY FACULTY OF MANAGEMENT SCIENCE STUDENT TRAN QUANG PHUC CLASS EPMP2 STUDENT’S ID 1116408[.]

BARCHELOR THESIS

Topic: Managing sales staff at H&M Hennes & Mauritz Vietnam

Co., Ltd.

NATIONAL ECONOMIC UNIVERSITY

FACULTY OF MANAGEMENT SCIENCE

STUDENT : TRAN QUANG PHUC

CLASS : EPMP2 STUDENT’S ID : 11164082 SUPERVISOR: PH.D NGUYEN THI LE THUY

HANOI, 2020

TABLE OF CONTENT

CHAPTER 1: RATIONALE FOR MANAGING EMPLOYEES IN BUSINESSES 5

1.1 T HE CONCEPT AND ROLE OF H UMAN R ESOURCES IN THE ENTERPRISE 5 1.2 H UMAN RESOURCE MANAGEMENT IN ENTERPRISES 6

1.2.1 Human resource management concept _6 1.2.2 Functions of human resource management _7 1.2.3 Roles of human resource management _7

1.3 C ONTENT OF HUMAN RESOURCE MANAGEMENT IN ENTERPRISES 7

1.3.1 Job analysis _7 1.3.2 Human resource planning 9 1.3.3 Recruitment of human resources _9 1.3.4 Employers 13 1.3.5 Training and developing human resources 13 1.3.6 Evaluate work performance 14 1.3.7 Labor compensation 15

1.4 F ACTORS AFFECTING HUMAN RESOURCE MANAGEMENT IN ENTERPRISES _18

CHAPTER 2: ANALYSIS OF THE SITUATION OF EMPLOYEE MANAGEMENT AT H&M HENNES & MAURITZ VIETNAM CO., LTD. 19

2.1 O VERVIEW OF H&M H ENNES & M AURITZ C O ,L TD 19

2.1.1 Introduction about H&M Hennes & Mauritz Co., Ltd. _19 2.1.2 The History of H&M (Hennes & Mauritz) _20 2.1.3 Perspectives, Mission, Strategies 22 2.1.4 Organizational structure and management apparatus 27 2.1.5 Marketing strategies 28 2.1.6 Financial statements in Vietnam market _30 2.1.7 SWOT analysis 32

2.2 S ALES STAFF AT H&M H ENNES & M AURITZ V IETNAM C O , L TD FOR THE PERIOD OF 2016-2019 _34

2.2.1 Characteristics of sales staff at H&M Hennes & Mauritz Vietnam Co., Ltd. _34 2.2.2 Statistics and labor classification 34

2.3 C URRENT STATUS OF EMPLOYEE MANAGEMENT AT H&M H ENNES & M AURITZ V IETNAM C O , L TD _36

2.3.1 Analysis of sales work _36 2.3.2 Planning to manage salespeople _38 2.3.3 Recruitment of sales staff 39 2.3.4 Use and distribution of salespeople 42 2.3.5 Training and developing sales staff 43 2.3.6 Assess salesperson competencies 45 2.3.7 Remuneration policies of sale advisors 47

2.4 A SSESS THE USE AND MANAGEMENT OF H&M HUMAN RESOURCES _48

2.4.1 Advantages _48 2.4.2 Disadvantages _48 2.4.3 The impact of the environment on H&M company 48

CHAPTER 3: COMPLETE SOLUTION FOR MANAGING SALES STAFF AT H&M

HENNES & MAURITZ VIETNAM CO., LTD UNTIL 2025 _50

3.1 O RIENTATION TO IMPROVE THE MANAGEMENT OF SALES STAFF AT THE COMPANY UNTIL 2025 _50

3.2 C OMPLETE SOLUTION FOR MANAGING SALES STAFF _51

3.2.1 Improve the effectiveness of sales job analysis 51 3.2.2 Improve salesperson planning 53 3.2.3 Improve employee recruitment methods _53 3.2.4 Improve the method of using and allocating sales staff _55 3.2.5 Improve employee awareness and qualifications through improved capacity assessment system _56 3.2.6 Promote and improve the employee compensation system _56

REFERENCES _58

Besides my advisor, I would like to thank my thesis committee: Prof.Do Thi Hai Ha , Ph.D Tran Lan Huong, ,Ph.D Phung Minh Thu Thuy, Ph.D Nguyen Dang Nui, and Ph D Vu Tri Tuan, not only their insightful comments and encouragement, but also clearing up the hard question which incented me to widen my research from various perspectives.

I thank my fellow EPMP2 in for the stimulating discussions, for the sleepless nights we were working together before deadlines, and for all the fun we have had in the last four years Also

I thank my colleague in the H&M company for their support during my internship

Last but not the least, I would like to thank my family: my parents and to my brothers and sister for supporting me spiritually throughout writing this thesis and my my life in general.

STATUTORY DECLARATIO

I here with formally declear that I myself have written in submitted Barchelor Thesis independently I did not use any outside support except for the quoted literature and other sources mentiond at the end of this paper

I clearly marked and separately listed all the literature and all other sources which T employed producing this academic work , either literally or in content

Hanoi, / / 2020

Tran Quang Phuc

EXECUTIVE SUMMARY

In today's trend of integration, development and competition, everybusiness must find its competitive advantage to create superior strength Along withthat is the maximizing of all human resources in the operation process In particular,

a relatively important resource and also considered the competitive advantage ofenterprises is human resources The fact has shown that businesses and organizationsthat have good human resources, and have a long-term, complete human resourcemanagement strategy will create a solid position for them However, in order to dothis, the role of human resource management becomes even more necessary Beingaware of the meaning of human resource management, corporations and companiesincluding H&M Hennes & Mauritz Vietnam Co., Ltd have invested significantly tocomplete this system However, unlike some other fashion corporations, H&Mfocuses on developing the best sales team The policies for managing the salespersonsystem are completely supplemented by the company During my internship at thecompany, I noticed a number of accomplishments and limitations in managing thesalesperson system Therefore, I chose the topic: "Managing sales staff at H&MHennes & Mauritz Vietnam Co., Ltd." In the thesis report, there are three mainparts:

Part 1: Rationale for managing Human Resources in businesses.

Part 2: Analysis of the situation managing sales staffs at H&M Hennes & Mauritz

Vietnam Co., Ltd

Part 3: Solutions for managing sales staffs at H&M Hennes & Mauritz Vietnam Co.,

Ltd until 2025

List of Tables

Table 2 1: Group income statement of H&M Company in Vietnam between 2017 and 2018 31 Table 2 2: Situation of sales staff of the Company by age _35 Table 2 3: Situation of sales staff of the Company by gender _36 Table 2 4: Questionnaire that managers in Vietnam prepare for salespeople at a branch in Singapore _37 Table 2 5: H&M Vietnam salesman job description in 2016 (H&M company internal source) _38 Table 2 6: The standard sales productivity of salespeople at each store 40 Table 2 7: Payrolling sales staff at H&M from 2017 to 2019 _41 Table 2 8: The situation of retirement, departure, change, transfer in recent years _42 Table 2 9: Result of recruiting sales staff of H&M Vietnam 46 Table 2 10: Number of hours offered to 4 stores in Hanoi to fulfill sales targets every December from 2017 to 2019 _47 Table 2 11: Sales Staff training 48 Table 2 12: Describe the score for the employee evaluation section _50 Table 2 13: The criteria for grading job completion in employee evoluation _50 Table 2 14: H&M's sales staff evaluation results for the period of 2017 to 2019 52

Table 3 1: Complete solution for job analysis _58

List of diagrams

Diagram 1.1: Human resource management function _8 Diagram 1.2: Human resource planning process _11 Diagram 1.3 : Recruitment process _11 Diagram 1.4 : Selection process 13 Diagram 1.5 : Summary of employee appraisal process _17 Diagram 1.6 : Remuneration structure 18 Diagram 1.7: Factors affecting enterprises _23

Diagram 2 1 Organizational structure in Vien Nam (provided by Visual Merchandiser- Hari) _28 Diagram 2 2: The store operating structure in Viet Nam (provided by Store Manager-Lan Anh of Select City

Store) 29 Diagram 2 3: SWOT analysis of H&M _32 Diagram 2 4: H&M recruitment and selection process 43

CHAPTER 1: RATIONALE FOR MANAGINGHUMAN

RESOURCES IN BUSINESS

1.1 The concept and role of Human Resources in the enterprise

1.1.1 Concept of human resources

“Currently, human resource is the most important source, it determines theexistence and development of each country as well as every business.Currently, humanresource is the most important source, it determines the existence and development ofevery country as well as every business. “(Hữu Thân, 2008)

Human resources include all individuals involved in any organization'sactivities, regardless of their role; the organization here may be large or small, involved

in any area of society, economy but that organization uses people

Human resources in the organization in general or in particular in particular areformed on the basis of different individuals, but are linked by certain goals and towardsthe ultimate goal of the organization Human resources in an organization are specialand decisive resources for the operation of the entire organization This resource hasdistinct characteristics completely different from the land resources, capital,equipment because an important characteristic is the human resource that regulatesand controls those resources.(Đăng Thịnh, 2011)

1.1.2 Role of human resources

No business organization can survive and maintain its operations without theinvolvement of employees or human resources is the first prerequisite for a business tosurvive.Human resources in the business to ensure that the business reaches its finalgoal Despite being a resource, Human Resources is a special resource so it is crucial tothe implementation of the business goals In any activity of the business as well as anystage of production, there is a need for a human role whether directly or indirectly.Therefore, human resources can be compared to businesses as a breath for people and

no business can refuse to build this important resource

Not only ensuring the existence of organizations and businesses, Humanresources also ensure the coordinated operation of organizations and businesses withthe external environment and the development of that relationship No organization canoperate independently and determine its own development If they were completelyindependent in that activity, they would not develop at all However, to ensure thebuilding and maintaining relationships with the outside environment, it is necessary tohave human resources This resource is the most important factor and determines how

the relationship is built, maintained and developed Therefore, it ensures organizationalcohesion and coordination with other organizations and the environment.

1.2 Managing Human Resources in enterprises

1.2.1 Concept of managing human resources

“Human resource management includes all measures and procedures that apply

to an organization's employees and addresses all cases that occur in connection with a certain type of work.” (David, 1978)

“Human resource management is the art of selecting new employees and using old employees so that the productivity and quality of each person's work reaches the maximum level possible.” (Felix, 2013)

“Human resource management is a system of policy philosophy and functional activities of attracting, training - developing and maintaining the people of an

organization in order to achieve optimal results for both organizations and employees "(Kim Dung, 2011)

“Human resource management is the design and use of the official system of personnel in the organization, ensuring the efficient and productive use of human talent

in fulfilling the organization's goals.” (Charlie, 1956)

Human resource management activities are diverse, plentiful and can be flexibly

changed to suit the characteristics of organizational structure, human resources,

finance, and development level of enterprises Human resource management activities include 3 functions: attracting human resources and training functions

1.2.2 Functions of managing human resource

Corporate strategy

Attracting labor force

 Human resource planning

Diagram 1.1: Human resource management function

1.2.3 Roles of human resource management

“Administrative role: Providing administrative procedures such as remunerationsystem, contract, social insurance, social welfare, e.g

Supporting role: Organizing strategic planning; Help employees manage crises;Answer employees' questions and complaints

Operational role: Creating sustainable competitive advantages of enterprises;Develop and implement human resource programs and policies; Recruitment, trainingand other activities

Strategic role: All managers must be managers of human resources; Employeesare treated as property; QA is the process of unifying the human resources strategy andthe goals of the organization. “(Kim Dung, 2011)

1.3 Content of human resource management in enterprises

Human resource management includes the following basic contents:

1.3.1 Job analysis

“Job analysis is the process by which manager search and research job content inorder to set out important types of information such as conditions for carrying out,tasks, responsibilities and powers when performing jobs In addition, the qualities andskills of employees are also essential to perform the job well “(Thành Hội, 2002)

When analyzing the work, two documents should be developed, the jobdescription sheet and the job standard table, in which the job description sheet is adocument listing functions, tasks and relationships work system, working conditions,inspection, monitoring requirements and standards to be met when performing the job.The job description helps us understand the content, requirements of the job andunderstand the rights and responsibilities when performing the job, The job standardtable is a document that lists the requirements of individual competencies Employeessuch as education level, work experience, problem solving ability, other skills andpersonal characteristics most suitable for the job The Standard Table helps businessesdetermine what kind of employees they need to do the job in the best way

The content and sequence of job analysis are divided as follows(Kim Dung, 2011)Step 1: Define the purpose of job analysis, which will help managers identify themost appropriate sources of information for job analysis

Step 2: Collect basic information from the organizational chart basis, and researchdocuments about the purpose, functions and powers of the business and its divisions,

such as that Is the business in a period of rapid growth or recession, need to clarifynew requirements, change or delete some jobs due to technological changes or marketfactors? Wages of employees are paid fairly?

Step 3:Select information specific to key information to ensure time-savinginformation collection

Step 4: Apply different methods to collect job analysis information Depending onthe accuracy and details of the information, a combination of the following methods ofinformation collection is required: Interview (Interview), Question (Task Question),Supervision ( Observation), work diary (Record)

Step 5 :Arrange information into unified tabular forms for easy control,comparison, and reporting

Step 6 : Conduct job description and job standards

1.3.2 Human resource planning

Human resource planning is the process of researching, determining the needs ofhuman resources, giving policies and solutions to ensure quality and the right number

of people in the right place at the right time and in the right place After setting thebusiness goals, it will set out strategies and operation plans Typically, strategies andwork plans include the following:

1 Analyze the environment, identify goals and strategies for businesses;

2 Analyzing the current situation of managing human resources in enterprises;

3 Forecasting workload and human resource demands;

4 Analyzing the relationship between supply and demand of human resources, theability to adjust, set policies, plans to help businesses adapt to new needs;

5 Check and evaluate the implementation situation

Diagram 1.2: Human resource planning process (Xuân Tiến, 2020)

1.3.3 Recruitment of human resources

Recruiting human resources is a process of finding and selecting personnel to satisfy the needs of enterprises and to supplement the labor force necessary to realize the goals of the enterprise Recruitment of human resources, including recruitment and recruitment

Diagram 1.3 : Recruitment process (Xuân Tiến, 2020)

Predict work analysis

Forecasting needs determining human resources

Analysis of supply and demand, ability to adjust

Program plan

Recruitment (search and attraction)

Organization of work

Candidate

(human)

Selection (measurement and evaluation)

Recruitment decision

1.3.3.1 Recruit

Recruitment is the process of attracting qualified workers from various sources

to register and apply for a job.(Kim Dung, 2011)

Businesses conduct recruitment to attract a large number of qualified andready-to-work candidates; Choose the most suitable candidate; Create new humanresources for businesses, build and develop a better organizational culture, increasecompetitive advantage for businesses, and create a good image for those who are notselected

Source of recruitment:

Recruitment source from within the enterprise, also known as presentemployees): The most prominent is direct recruitment of officials and employees whoare working directly in the enterprise The advantage of this recruitment is thatcandidates quickly adapt to the work and the working environment while saving timeand recruitment costs, stimulating a spirit of positive, creative work, and manypromotion opportunities Tien created a wide competition However, the downside ofthis recruitment is that it causes boring in the face of personnel, lack of new ideas, andstereotyped work limits creative ideas

Sources of recruitment outside the business: There are main sources such asfriends of relatives of employees, former employees, employees who apply foremployees of other companies newspapers on television, newspapers, radio, postednotices in front of the Company gate, through labor supply centers,

The advantage of workers outside the business is to take advantage of theoutside brainpower, especially new people have a new perspective on the organization,reform the way employees work in the business The disadvantage of this employee isthat it takes a lot of time and cost, it may not be possible to hire employees who meetthe requirements and nature of the job, new employees often take a long time to getused to the work and the environment work

Recruitment process:

Step 1: Develop recruitment strategies including:

Recruitment planning: In the recruitment process, managers need to determinehow many people are recruited for each vacancy, thereby providing accurate andreasonable screening rates When planning recruitment, it is important to pay attention

to the fair employment opportunities for employees, and there should be no bias orprejudice when recruiting

Identify sources and methods of recruitment : In order to recruit sufficientnumber and quality of workers to vacancies, human resources management departmentshould consider and select the position who should get people from inside, where toget people from outside the business and accompany it as the appropriate hiringmethod.

Determine the recruiting place and recruiting time: Select the region to selectdepending on the vacancy needs low quality or high quality workers This is thedecisive factor for the success of the hiring process Once the recruiting address hasbeen confirmed, businesses need to determine the time and time of recruitment Therecruitment time plan must be based on the objectives of the respective enterprise.Step 2: Searching for job applicants Once the recruitment strategy has been developed and the recruitment plan has been set up, recruitment activities are conducted

Step 3: Assessing the recruitment process After the recruitment process,

businesses must evaluate their processes to improve this task better and better.1.3.3.2 Selective

Selection is the process of classifying and evaluating candidates to find the best candidate for the job requirements

Diagram 1.4 : Selection process

Content of selection process:

Step 1: Receive and research documents:

All resumes must be recorded in the job book The applicant must submit therequired documents to the applicant The applicant can then study the application torecord key information about the candidate and may eliminate some candidates who donot meet the criteria set out without following the next procedure in the procedure.Recruitment process

Step 2: Interview, test, verify and investigate:

Evaluate candidates, make decisions and guide work

Health check Interviews,

quizzes, verifications and surveys

Receive and

research records

Tests, questions, interviews to select the best candidates through the assessment

of basic knowledge, practical ability; Apply multiple choice forms to evaluatecandidates for a number of possibilities special skills such as memory, skill level, ;The interviews are used to learn and evaluate candidates in many aspects such as:experience, qualifications, temperament, sociality , ; Must note each feature to note

to the candidate to help the evaluation done most accurately

Step 3:

Health check: Despite meeting the requirements of educational level,knowledge, intelligence, good moral character, health is not guaranteed nor should it berecruited If hiring a number of people is not guaranteed to affect the quality of workperformance and economic efficiency, besides it also creates many legal troubles forbusinesses

Step 4: Assess candidates, make decisions, and guide integration:

After performing the above steps, if both parties agree, the enterprise will decide

to recruit and the two sides will sign a labor contract The Head of Human Resourcesasks the director to make a recruitment decision or sign a labor contract In theemployment decision or in the case of labor, position, salary, probationary period, etc.should be stated Managers are responsible for training and support, guidance andadvice, giving feedback, providing information and managing mixed systems

1.3.3.3 Recruitment decision

After completing the recruitment steps and the recruitment information hasensured in accordance with the recruitment requirements set out, at this time therecruitment committee will unify and come to the recruitment decision, the basis of theexit This hiring decision is based on the subjective evaluation method according to thegradual elimination procedure and the results of interviews, examinations and tests.Once the recruitment decision has been made, the employer and the employee need toenter into a labor contract or labor agreement based on the legal basis of a labor codeissued by the State In the labor contract, the following provisions should be paidattention: remuneration for working time, probationary period and overtime, types ofguarantees that the organization must pay to employees

1.3.3.4 Integration of new employees

The purpose of the integration into the work environment is to help newemployees adapt to the organization, providing detailed information on the job and theexpected job completion that their superiors expect , avoiding time-saving mistakesand making a good impression of the organization The Management ScienceCurriculum II has developed an integration program into the work environment thatincludes introduction to the organization's basic issues:

Stage 1: General program: overview of the organization, major policies andprocedures, salaries, benefits

Stage 2: Professional program: introduces the functions of the department, tasksand responsibilities for the job, policies, procedures, rules and regulations for the job,visiting the unit, introduce to colleagues

Phase 3: monitoring and evaluating whether new employees have adapted to thejob or not

1.3.4 Managing Human resource planning

Division of labor

The division of labor is the process of separating different types of labor

according to a certain standard and under a specific defined production condition

The nature of the division of labor is to arrange and arrange different employees and groups of employees into the Company's production and business process

according to the capacity, professional qualifications, health and interests of people employees to create a high efficiency in their work to bring optimal benefits for the Company itself

Objectives of the division of labor:

Assignment of labor to ensure a sufficient number of employees, labor quality, right people and right jobs to meet the requirements and nature of the jobs;

Assigning labor to ensure the job is completed in accordance with the assigned time, creating flexibility and flexibility in employment

Principles of division of labor:

When performing the division of labor, must be based on the forte, capacity, qualifications and aspirations of the employee

Ensuring a sufficient supply of working conditions for employees;

Must clearly define the rights and responsibilities of workers

Forms of labor division:

Division of labor according to technology;

Division of labor by function;

Assign labor according to the complexity of the job

1.3.5 Performance Appraisal

Assessing employees' performance is an important activity in personnel

management, which helps the Company have the basis for planning, recruiting, trainingand developing personnel to help businesses know the status of human resources , identify gaps in qualifications and job requirements to provide timely remedies

Content and order of implementation:

Step 1: Set up evaluation criteria

Based on the information system board: description, job copy and standard work Businesses rely on job performance, measure work performance and feedback.Step 2: Select the appraisal method

Enterprises select and use a combination of the following evaluation methods: Assessing graphic scales; Checklist; Record important events; Compare; the report; Evaluated by a scale based on behavior; Management by objectives; Review 3600.Step 3: Select people and practice assessment skills

Participants in the assessment can be direct supervisors, colleagues,

subordinates, self-assessers, customers or work computer The assessor should be trained in perspective, awareness and assessment skills, providing guidance documents,organizing training sessions

Step 4: Give criteria and content of the evaluation scope

The administrator must notify the employee as soon as the employee receives the job on the criteria and scope to be assessed

Step 5: Conduct an appraisal

Perform comparisons, analyze the actual results performed by employees

against the sample standards, avoiding the affection of the leadership to influence the results Based on the criteria to compare the performance of employees with the job standards

Step 6: Discuss the appraisal results

Leaders should discuss with the staff the assessment plan, learn more about what is unanimous and disagreeable in the assessment, thereby pointing out the good points and the points that need to be overcome in the implementation of the employee'swork tablets

Step 7: Adjust and publish new results for employees

It is important in the evaluation of work performance to outline the direction, how to improve the performance of the work, setting new targets for employees.

Diagram 1.5 : Summary of employee appraisal process

1.3.6 Training and developing human resources

Training and development are activities to maintain and improve the quality of the organization's human resources, which is a crucial condition for organizations to stand firm and succeed in a competitive environment Therefore, in organizations, the training and development of human resources should be carried out in an organized andplanned manner Human resource training is a systematic process that fosters the

accumulation of skills, conceptual rules or attitudes that lead to a better correspondencebetween employee characteristics and the requirements of Work

Human resource development is all the collective activities organized by

businesses and businesses for workers Activities can be provided over hours, days or even years, depending on the content and learning goals Human resource development

is a long-term process aimed at improving the capacity and motivation of employees toturn them into valuable future members of the organization Development includes not only training but also career and other experiences

There are many reasons to say that training and development is important and needs proper attention in organizations In which there are 3 main reasons are:

To meet the organization's work requirements;

To meet the learning and development needs of labor;

Training and development is a strategic solution to create a competitive

advantage for enterprises

Currently there are many training and development methods, generally the

names of each method may be different but the training method and content are

relatively similar It is possible to choose practical training (on-the-job training) or practical training

non-Evaluate the performance

Discuss the assessment with staff

Set job expectations

Check out the work done

Define goals,

evaluate work

performance

1.3.7 Labor compensation

Diagram 1.6 : Remuneration structure (Xuân Tiến, 2020)

Labor remuneration is all financial and non-financial payments an employee receives through the employment relationship between them and the organization.1.3.7.1 Financial remuneration

Salary:

Salary is the amount paid to employees on a fixed and regular basis in a unit of time (day, week, month, year) The employees' wages are agreed upon by the two parties in the labor contracts and are paid according to labor productivity, quality and work efficiency In addition, employees also receive allowances and different

preferential treatment for each enterprise to encourage employee morale

1 The role of salary:

Salary for enterprises is one of the inputs of the production process, constituting the product price One the other hand, for employees, salary is the main source of income, a means to maintain the existence and development of them and their families to some extent It is evidence of the value, prestige and position of

employees

2 Method of salary payment:

Labor remuneration

Financial remuneration

Non-financial remuneration

Work environment

The welfare

The recommended

work Basic

salary

Time-based payment: Time-based wages paid to employees are calculated onthe basis of the working time salary and the wage unit price in a unit of time (unit ofcalculation of time: hour, day, week, month or year) Time wages are widely used forcertain types of unskilled labor or the task of making accurate norms due to the nature

of the job

Note :

Lgt: Salary calculated over time

Ttt: The actual number of working days and hours the employee has done

L: Daily wage (hour)

Daily wage = Monthly salary / 22

Hourly pay = Daily salary / 8 + Pay by product

With this form of payment, employees are paid based on the results of their work

Note :

Lsp: Salary paid by product

Ntt: Number of completed products that guarantee quality

Đg: Unit price of product salary

Equation 1: Salary calculation formula 1 (Đăng Thịnh, 2011)

Lgt = Ttt*L

Equation 2: The payroll formula is based on the number of products the employee sells (Đăng Thịnh, 2011)

Lsp = Ntt*Đg

The welfare

Benefits are indirect remuneration paid in the form of workers' life support.Welfare is a part of income earned by employees outside of the salary and bonusregimes such as health insurance, social insurance, support for housing, transportation, sports activities, etc to help employees improve life, attached to businesses and ready

to devote labor, high productivity for businesses

Workers must believe that their efforts will be rewarded appropriately;

The reward must satisfy the needs of the employees Not all people are the sameand one person may need different things at different times;

General remarks: Rewards must be fair: Employees in the organization want to

be treated equally, they tend to compare their contributions and rewards with others.1.3.7.2 Non-financial remuneration

Non-financial remuneration has been paid more attention by enterprises inrecent years because the living standard of workers has been increasing, leading to anincrease in spiritual demand applied to satisfy the increasing demands of workers

1.4 Factors affecting human resource management in enterprises

1.4.1 Factors belong to businesses

1 Strategy and policy of the business

Each company has its own strategy and policy , each management department needs

to study clearly the strategic content of its company Strategy and policyof thecompany are an internal environmental factor affecting the performance departmentsuch as production, sales, marketing, finance These departments must set their owndepartment's goals by taking a look at the company's strategy

2 Potential finance

Financial strength is reflected in the total amount of capital that an enterprise canmobilize in its personnel management department, it is also reflected in its ability topay employees only through salary One of the main goals of employees is to work forthe right compensation So wages attract the attention of everyone, it is a tool to attractworkers In order for human resource management to be carried out effectively, salaryissues must be given due attention

3 The attention of the company leaders to human resources

Duties and challenges are constantly changing every day, so administrators mustconstantly be interested in creating an atmosphere of intimacy, openness in thebusiness, to make employees proud of the business and spirit and responsibility to thejob Administrators must collect and process information in an objective manner,avoiding unreasonable injustices that cause confusion and hatred within the enterprise

4 Characteristics of the company's production and business activities

Each company has a plan to maintain operations for its production and business division, the number of employees will be affected by the production and business results in different periods Managers must constantly adjust and research

time off temporarily, or to take time off work On the contrary, when the economy develops and there is a stable trend, the company needs to develop new workers to expand production and increase training of staff This expansion of production requiresthe company to recruit more qualified people, require a raise to attract talent, increase welfare, and improve working conditions.

2 Population / labor force

The number of employees and the labor classification in Vietnam are very important, suggesting that businesses will benefit or disadvantage from this trend, for example in Vietnam, women account for 52% of the labor force This will negatively affect

factories, in terms of maternity, child care

3 The law

The law greatly affects the human resource management of the company In Vietnam, the Labor Law is enacted to manage and govern labor relations in all state-owned enterprises and other forms of ownership

4 Socio and cultural

In a social culture with so many caste, a few cases where the region did not keep up with the development momentum of the times, clearly affecting the structure of

organizations Workers move from the manufacturing sector to the service sector, which is transportation, communications, and business services

5 Competitors

In a market economy, managers do not just focus on market competition, product competition but neglect human competition Human resources are at the core of

governance, today's companies are influenced by a competitive and challenging

environment Companies sometimes have to compete for human resources by creating reasonable human resources policies, must know how to lead, motivate, promote and reward, create an atmosphere of attachment In addition, the company must have a salary policy to keep employees working with them, to improve the working

environment, and to improve the welfare regime

6 Scientific and technical progress

The progress of general science and technology in the world is increasing the pressure

of competition among businesses Therefore, it is necessary for businesses to pay

adequate attention to constantly improving and innovating techniques and technologies

to increase quality and lower production costs

7 Customer

Customers are the goal of every business Customers who purchase a company's products or services are part of the outside environment Sales are an important factor for a company's survival Therefore, executives must ensure that their employees produce products that match the needs and tastes of their customers

We can get a better overview of the factors affecting the company through the

Chapter 2: Analysis of the situation of managing sale staffs

at H&M Hennes & Mauritz Vietnam Co., Ltd.

2.1 Overview of H&M Hennes & Mauritz Co.,Ltd.

2.1.1 Introduction about H&M Hennes & Mauritz Co., Ltd.

H&M in the eyes of clothing shoppers, it is the 2nd most famous fashion brand

in the world after Zara With more than 1 thousand retail stores, covering nearly 100countries, HM is expanding its branches in other countries not only developedcountries but even in undeveloped countries, At present, there are 12 stores in Vietnamand about 13, Hanoi has 3 major branches: Royal City, Vincom Nguyen Chi Thanh andVincom Times City, HM is currently only expanding its stores in the upcomingshopping centers of Vin Group, but later it is possible that shopping centers like Aeon

of Japan will also have the presence of H&M Superior design and quality, keeping upwith modern trends and affordable product prices, designs for men and women, Theelderly, the elderly, and the young are all interested and favored by customers.Currently, H&M is paying nearly 1500 employees in Viet Nam

H&M, starting its first store in Sweden in 1947, currently represents about 40markets In Vietnam, H&M also has online collections, for those who do not have time

to shop, just a smartphone, they can order the clothes they like , update newcollections right on their phones H&M's layout creates a variety of fashion styles formen, young people, women and young people Similar to cosmetics, complementaryproducts and domestic fabric products are all H&M products that can be supplied tocustomers Fashionable products provide customers with a special combination of time

- less and more unique trend, for every man and woman From first-class costumes topaintings and party time, carefully decide on accessories All with style sensitivity rightdown to the smallest element H&M also provides lovely and comfortable models forgrowing children

Fashion and quality at the best price" - that is the basic business concept ofH&M And that is the direction that leads to the creative process of H&M designers,from the conceptualization step Original design, both production and all the way tocomplete the product on display Behind each product is a continuous creative process

2.1.2 The birth and development process of H&M company globally

H&M was founded as Hennes in 1947 by Erling Persson

Persson discovered a new clothing retailer concept during a trip to the UnitedStates Persson He came up with a bold idea, started raising capital to open his first

fashion stores with the criteria, achieve the highest sales at the lowest prices from thefirst Hennes stores, The store is primarily focused on selling women's clothing,specifically for women's clothing, called Hennes, which opened in Stockholm in 1952.-Hennes also began exporting the concept of cheap clothing, starting with its neighborNorway in 1964, and the Danish participation in 1967.

1968 - Men's and children's sales of clothing start to appear and the companyname is changed to Hennes & Mauritz

1974 - H&M made its first stocks appear on the Stockholm Stock Exchange

1976 - The first store outside Scandinavia will open in London, UK 1977 - TheImpuls store was launched The company started its "Global Fashion" cosmeticsbusiness for the 1990s A new generation was H&M's main when Erling Persson moved

on to the position of director of his son management company Stefan Persson.According to young Persson, with strong and rapid development, H&M continues toexpand its market to other countries, but despite integration with multinational, H&Mhas always focused on maintaining its identity and image After developing to Asiancountries, H&M has adjusted the size to fit Asian styles but the image has not changed

1980- H&M expanded its stores to famous countries like Germany and theNetherlands, marking a big development step

1998 Immediately after that H&M continued to expand into a market of anequally large country, France itself Not only that, H&M also developed an advertisingsystem, replacing the advertisements with the presence of famous people

2000 - Next is the United States in New York City H&M has also come toSpain, and in the following years, several European markets

2004 - H&M started design cooperation with many major fashion brands andstarted with Karl Lagerfeld Cooperation in the following years included StellaMcCartney, Viktor & Rolf, Madonna, Ro berto Cavalli, Comme des Garcons, MatthewWilliamson, Jimmy Choo, Sonia Rykiel, Lanvin, Versace, Marni and David Beckham

2006 - Started selling online with the Dutch market The first store in the MiddleEast opened through a franchise agreement

2007- The first Asian shops opened in Hong Kong and Shanghai 2008- H&Mopened its first store in Tokyo, Japan

2009 - The first H&M stores open in Russia and North

2010- The first H&M stores to open in Korea and Turkey and Israel H&M will open in Romania, Croatia and Singapore, Morocco and Jordan

2011-2.1.3 Perspectives, Mission, Strategies

2.1.3.1 Perspective

“Our Sustainability Vision: H&M’s business operations aim to be run in a way that is economically, socially and environmentally sustainable By sustainable, we mean that the needs of both present and future generations must be fulfilled ”

H&M in Viet Nam is gradually modernizing its business idea by producing and

creating the best designs with high-tech equipment to increase quality but their

apparatus is cut down on unnecessary expenses The equipment has helped to make theprice of the product cheaper, making the price also improved to suit all types of

customers The quality here that I mention is the raw materials and materials in each product of H&M, they use cotton fabrics torn from recycled materials, to produce new goods, which sounds very difficult to do but in return is environmentally friendly, and this has been H&M continuous improvement H&M is answerable for the individuals who add to their prosperity including the individuals who are not workers of H&M H&M is focused on guaranteeing that human privileges of laborers are not disregarded,and it does as such with laborers of providers and other helpful accomplices and

clients

Decisions are based on careful consideration, in which the benefits for the environment

in the short and long term are increased to ensure environmental friendliness in the long run Businesses, regardless of how big or small, work in the field, need a

commitment in the idea of their responsibility for business relationships H&M has taken a lot of actions against corruption by putting the idea of "feedback" into their workplace, every employee at every level, no matter the manager or employee, seeing your partner doing something wrong compared to what they should do, they can have adirect conversation with the person so that they can be frank with each other, without animosity, build trust in the workplace

If at ZARA, they always update with the latest styles, build a team ofprofessional designers, take the lead in the fashion industry, with models increasinglybeing updated quickly but changing again, customers are paying them to do so becausetheir product costs are pushed too high At H&M, their creative ability is alwaysupdated in time, but they often do not stick to famous models, but only focus ondeveloping the trend with their own style, while buying raw materials from reputablemarkets to improve product quality and the process of purchasing, transporting,manufacturing, and selling to the market, all stages are significantly reduced costs.

H&M tried to put many different forms into operation to choose the mostsuitable and optimal one By doing so, they have successfully affirmed their brand andproved their class in the fashion market

They always keep for themselves a team of cash office responsible for havinghigh accuracy in their work, helping them to control the amount of money coming inand out of all forms of payment, currently they have two payment method Onepayment method is by card and another is cash Their working environment is alsoquite specific and dangerous, but H&M has turned these hazards into safety by offeringsecurity audits to help their employees feel safe at work

2.1.3.3 Strategic action of H&M

Although the economic province of Vietnam in particular and the globaleconomy in general is in the recovery stage, H&M still promotes the design of moreproduct models and continuously introduces customers to new collection That hashad a significant impact on the psychology of customers as well as showing that, withH&M, customer needs are always guaranteed, regardless of any period The reason to

be able to make such a decision, because H&M found that, in the period of 2018-2019

in Vietnam, the purchasing power of the people did not decline with the difficulties of

the economy, so continuously launching collections and promoting the design of new

products is the correct adjustment, At the same time, due to the negative impact of the

world economic recession, unemployment in Sweden as well as In other countries, the

life of the people in H&M Vietnam has increased, and the people's lives have a lot of

difficulties.That is why H&M has increased the salaries and working conditions for its

employees, thereby ensuring life for employees, so employees can rest assured to

devote themselves to the company

2.1.4 Organizational structure and management apparatus

H&M in Vietnam is based at: Metropolitan Building, No 235, Dong Khoi

Street, Ben Nghe Ward District 1 Ho Chi Minh City The corporate governance

structure of the company includes positions such as Account Responsible, Inspection

Committee (the group is established to check and correct errors in the company's

operations, executive groups) main, shops, workers 'and workers' associations - see

below, below is the corporate governance structure of the entire corporation.All parts

are worked and supervised by Country Manager - Ms JanneEinola.With the strict

organization, the large investment, along with the division of many specialized

departments, helps H&M operate in the most professional way.Reasonable, decision

making is done quickly and consistently All departments and units are detailed in the

Financial Responsible IT Responsible

Production Responsible Human Resources Responsible

Sale and Marketing Responsible

Communication Responsible

Sustainability Responsible Re Logistic Responsible Director

H&M organization have decided on three basic objectives to include in thier marketingplan The three main objectives are: to make the H&M brand name more well-known

by advocating more advertising, to focus on the fact that H&M’s average sale pricesare often lower than their competitors, and to use the economic slowdown as anopportunity to expand by securing more low-cost locations and prepare for futuregrowth

Combination

We must first acknowledge what H&M is well known, consumers find H&M retailstores very convenient, as they can buy different types of products at a store (Shoes,clothes, bags can all be selected at the same time and a same place) The company hasexpanded at a fairly fast pace on websites that are easily accessible at reasonableproduct prices They have also taken advantage of the slower economy to secure somehigh positions and favorable locations at very realistic prices The designers of H&Mdesign fashionable and trendy garments of remarkable quality There are product linesincluding T-shirts, fashionable shirts, sweaters, jeans, pants, underwear, skirts, jackets,shoes, wallets, jewelry and other trendy accessories H&M is able to offer theirconsumers good quality garments at an economical friendly price Hennes & Maurtizare able to offer excellent quality products at low prices because they reduce 16

Store Operation Manager

Security Manager Store Manager

Department Manager

Sale Staffs

Visual Responsible

Visual Merchandise

Diagram 2 2: The store operating structure in Viet Nam (provided by Store Manager-Lan Anh of Select City

Store)

middlemen to buy materials for the company and sell them at higher prices H&Mpurchases their apparel fabrics in large quantities directly from suppliers (H&MClothing, 2009).

H&M has placed its stores in highly profitable cities around the world to gain the mostbenefits from the company Hennes & Mauritzs advertising strategies, includingmobile marketing via SMS text messages, celebrities, charities and famous musicartists (Butcher, 2009)

H&M likewise has assets to do cautious and viable quality control Notwithstandinggreat quality items, the quality idea likewise necessitates that attire items be fabricatedwithout the utilization of synthetic compounds, unsafe condition, destructivesubstances and they are created in great working conditions

Cost in H&M Marketing Mix

H&M has applied a more extensive valuing methodology to suit all zones of purchasersand merchants So as to keep up the normal value procedure, they have kept a ton oftheir offers in the rebate As indicated by the arrangement, their business volume willkeep on expanding prompting more prominent deals What's more, strategistsadditionally utilize the numerical impact on the left Costs finishing in 9, 99 or 95 arecalled 'dazzling costs They are viewed as less expensive: VND 499,000 contrastedwith VND 500,000

The promotions in the Marketing mix of H&M

H&M always recognizes the potential of advertising and marketing and therefore paysspecial attention to all of its advertising activities Their ads focus on the image ofquality clothing as well as reasonable prices Called TPP- Top priority product,products with large quantities to help customers can easily choose the right size andstyle suitable for yourself with a reasonable price They have used gorgeous electronicmedia by sponsoring many popular and trendy shows

2.1.6 Financial statements

Table 2.1: Group income statement of H&M Company in Viet Nam

Table 2 1: Group income statement of H&M Company in Vietnam between 2017 and 2018

For the 2017/2018 financial year the H&M group’s net sales increased by 5percent to VND 210.400 billion (200,004) Sales increased by 3 percent The group’sonline sales made up 14.5 percent (12.5) of the group’s total sales at the end of thefinancial year

Gross profit increased to VND 110.887 billion (108,090) This corresponds to agross margin of 52.7 percent (54,0) The gross profit and gross mar- gin are a result ofmany different factors, internal as well as external, and are mostly affected by thedecisions that the H&m group takes in line with its strategy to always have the bestcustomer offering in each individual store based on the combination of fashion, quality,price and sustainability

Selling and administrative expenses increased by 9 percent during the2017/2018 financial year compared to the previous year

-80,427 -7,094

interest income and similar items

Interest expense and similar items

292 -146

281 -41

PROFIT AFTER FINANCIAL ITEMS 15,639 20,809

All profit for the year is attributable to the shareholders of the

company

H & M Hennes & Mauritz AB.

Profit after financial items amounted to VND 15,639 billion (20,809) 2018 was

a challenging year for the whole industry, and thus also for the H&M group The profitdevelopment for the year must be viewed primarily against the backdrop of the rapidtransformation of the fashion retail sector and a tougher market than the company hadinitially expected, as well as issues in connection with the implementation of logisticssystems in some important markets which led to higher costs To secure upcomingtransitions of logistics systems and the replacement of the online platform in Viet Nam,there were additional costs in the fourth quarter Although these costs had a negativeimpact on earnings, they will result in a range of improvements for customers After adifficult first half, however, the group’s transformation work started to take effect inthe second half of the year Improved collections generated better full-price sales andlower markdowns towards the end of the year

2.1.7 SWOT analysis

Diagram 2 3: SWOT analysis of H&M