Analyzing human resource management of viethoa holding corporation and suggestions

MINISTRY OF EDUCATION AND TRAINING HO CHI MINH CITY UNIVERSITY OF FOREIGN LANGUAGES AND INFORMATION TECHNOLOGY DEPARTMENT OF INTERNATIONAL BUSINESS ADMINISTRATION GRADUATION PAPER ANALYZ

.

MINISTRY OF EDUCATION AND TRAINING

HO CHI MINH CITY UNIVERSITY OF FOREIGN LANGUAGES

AND INFORMATION TECHNOLOGY DEPARTMENT OF INTERNATIONAL BUSINESS ADMINISTRATION

GRADUATION PAPER

ANALYZING HUMAN RESOURCE MANAGEMENT OF VIETHOA HOLDING CORPORATION

r-

ACKNOWLEDGEMENTS

First of all, I would like to express my sincere thanks to my parents and

my younger sister for their spiritual encouragement and support to finish thisgraduation paper

I would like to show my special gratitude to Mr Nguyen Ngoc Dean of International Business Administration Department and Mr NguyenQuoc Hung - Associate Dean of this department for giving me the opportunity

Huan-to do this graduation paper

I would like to gratefully acknowledge and give my special thanks to myadvisor Mrs Tran Tuy Nga because of her useful advice, wonderful supportand, sincere guidance I am heavily indebted to her instruction and greatencouragement to complete this graduation paper

In addition, I would like to show thank to all lectures at HUFLIT whohave taught and provided me much necessary and valuable knowledge, skillsand reality experience during the past four years In particular, Mr NguyenQuoc Hung who gave me a lot of helpful knowledge and skills during writing-

up subject

Finally, I am grateful to all staffs and supervisors of VIETHOAHOLDING CORPORATION who give me necessary documents as well assupport much essential opinions and information to complete this research

ADVISOR'S COMMENTS

Student : Vii Thj Thanh Thao Student Code: I1DH490584 Class: KQ 11-03 Advisor: Trftn Tuy Nga ,MBA

PRACTICALITY: Human resource plays important role in any enterprises and VIETHOA Company is not exception The writer would like to analyze human resource management of VIE THO A HOLDING CORPORATION in order to help board of management run company effectively and build goodwill.

CONTENT

The graduation paper has live chapters

Chapter One: Introduction

Chapter Two: Literature Review

Chapter Three: Method and Material

Chapter Four Discussion

Chapter Five Conclusion and Suggestions

Conclusion

PRESENTATION

The paper contains 6 tables,13 figures, 2 photos, 4 appendices with relevant notes and References to tell us how hard and enthusiastic the writer is The paper is well- presented.

GENERAL ASSESSMENT

In term of applying Department of International Relations knowledge learnt at the university, the writer with ambition and diligence is capable of studying individually and scientifically In the process of completing this graduation, she always shows us her self-confidence The paper is really a success at the BA level The presentation is well-illustrated, and the content is arranged logically with rather feasible suggestions.

I appredate highly this graduation paper.

SUGGESTED GRADE: Excellent

Ho Chi Minh City, June 9th, 2015

TRAN TUY NGA MBA

To grow and to thrive in today's competitive environment both local andforeign competitors, enterprise must deal with several major challenges tosurvive and the key to solve the challenges are aspects of human resourcemanagement (HRM) - a precious asset of business Employees are a vitalelement of organizational success In other words, company cannot developand exist without the efforts from its members An effective human resourcedepartment is able to help enterprises to gain competitive advantages and createvalue chain

Most of studies from past to present only focus on motivatingemployees in company but it does not strongly concentrate on analyzing HRMand giving an effective HRM model for intrinsic company As a result, most ofreaders cannot know the way to create an effective human resource (HR)model Contributing to share HR field, I spend five months on finding andanalyzing infonnation to create a graduation paper with analyzing of HRM inVIETHOA HOLDING CORPORATION and suggestions This research is notonly summarized from much available information such as news, books,journals, magazines and newspapers, ProQuest Central database and scholarGoogle but also gathered practical information through primary research inVIETHOA HOLDING CORPORATION and perfonned logically in order tounderstand clearly and easily This thesis brings useful value and helpsreceivers to know HRM situation in company Through this study, the readerscan get much practical information to learn and apply for this enterprise Inaddition, this research provides some suggestions to develop HR in VIETHOAHOLDING CORPORATION, improve performance, build goodwill, retainexcellent staffs and attract potential workforces

Although I try to study and compile systemically, this research cannotavoid many limitations and faults Hopefully, the readers will contributecomments to help the writer to get practical knowledge

TABLE OF CONTENTSTitle

2.2.1 Job analysis and human resource planning (HRP) 4

2.2.3 Training and development (T&D) 4

2.3.1 Establishing and administering personnel policies 52.3.2 Ensuring compliance with labor laws 52.3.3 Supporting the organization's strategy 6

2.4.3 Recruitment and Selection 8

3.3.4 The HR situation in VIET HOA Holding Corporation 21

3.3.4.5 Human resource T & D 24

5.4.1 Creating a convenient working environment 4 75.4.2 Building the relationship between managers and employees 48

APPENDICES

Training and developmentTotal quality management

v

LIST OF TABLES

Table 2: Types of data collected through job analysis 7

Table 5: Income statement of company from 2012 to 2014 27Table 6: Some results of income statement in company from 2012 to 2014 27

LIST OF FIGURES

Figure 4: Training and Development process 9Figure 5: The stages of performance management process 10Figure 6: Components of a total compensation program 12Figure 7: Organization chart of VIET HOA GROUP 19

Figure 10: The reasons of applying into VIETHOA Company 30Figure 11: The time of employees working in VIETHOA Company 31Figure 12: The reasons of working in VIETHOA Company 31Figure 13: The satisfaction of training course 32

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CHAPTER 1.

Chapter 1: Introduction

INTRODUCTION

, .

As soon as the thorough economic reform, the implementation of anopen-door practices and the change from a planned economy to a marketeconomy, it is necessary to have the latest knowledge of HR so as to createinnovative HR practices and policies which can engage employees and drivecompetitive advantage for the business and organization HR is a successfulkey for business and organization HR activities are gaining tremendousimportance in modem enterprises because HR will run all elements in companyfollowing cash, equipment, machinery, plant, property, computer software,non-financial assets and financial assets Therefore, HRM policies andpractices are crucial in managerial job of enterprise

However, the reality is that businesses are facing many problems Thebiggest difficulties and challenges not only lack capital, access advancedtechnology but also find the way to manage HR effectively The causes ofthose difficulties are misunderstanding the role of HRM, lacking of expert inthis field, being hard to find the appropriate way of encouraging qualifiedcandidates to apply for vacancy and not creating a professional HRM system toadapt to competitive environment Those difficulties require a competent HRMpolicy and practice Therefore, companies should build a long-term HRstrategy about recruitment, selection, training, development, performanceappraisal and compensation dramatically in order to compete with fiercecompetition in market

Understanding the HRM role, VIETHOA HOLDING CORPORATIONsucceeds in HRM about recruitment, selection, training, development,performance appraisal and compensation but they have many limitations

Therefore, as for the personal preference, this graduation paper wasselected to analyze HRM of VIETHOA HOLDING CORPORA nON deeplyand offer recommendations

Chapter 1: Introduction

This graduation paper aims at analyzing, evaluating, developing HRMsituation in VIETHOA HOLDING CORPORATION to be relied on theconceptual and theoretical development, and providing some solutions in order

to create competitive advantage through HRM policy and practices Besides,this thesis can contribute to general benefits, promote organizationaldevelopment, help company to build goodwill, improve performance, retainexcellent staffs and attract potential employees

With limitation of time, this thesis encompasses analyzing HRM ofVIETHOA HOLDING CORPORATION and offering suggestions

The value of this graduation paper would be reference for furtherresearch, contributing a better theoretical understanding of HRM, providingVIETHOA HOLDING CORPORATION with strengths, weakness,opportunities and threats, and suggesting recommendations for takingcompetitive advantage to compete with their competitors

The content of this graduation paper consists of five main sections Thefirst chapter concentrates on Introduction, the second chapter is aboutLiterature review, the third chapter presents Material and Method, the fourthchapter puts forward Discussion, and the final chapter will highlightConclusion and Suggestions

2

of their working relationship, and secondly make sure that the agreement isfulfilled.

Similarly, Kramer (2002) pointed out HRM consists of all managerialpractices and decisions that strongly influence HR in business

Mondy, Noe, and Premeaux (2002) demonstrated that HRM is the maximalutilization of individual's strength to attain organizational goals and objectives

It seems best, following Krumm, Noe, Hollenbeck, Gerhart, Wright (2007),HRM presented that the HR practices, systems, and policies influence employees'behavior, and performance

2.2 The functions of HRMDavid Beebe and Colorado (2009) addressed that HRM plays an importantfunction affecting to an organizational performance because enterprise's operationextremely relies on the performances and actions of its members The appropriatemanagement can lead to skilled and productive labor forces In addition,competent and professional HRM can help ensure all staffs to be equity and obeythe regulations or rules

Noe, Hollenbeck, Gerhart and Wright (2008) found that the field of HRincludes any functions detailed below:

Table 1: The functions ofHR department

Job analysis and Human Job analysis, job descriptions and job design,resource planning (HRP) HRP

Recruitment and selection Recruiting, job postings, interviewing, testing,

coordinating use of temporary labor

Chapter 2: Literature Review

Training and development Orientation, skills and knowledge training,

career planning and career developmentprograms

Performance management Performance evaluation and performance

appraisal preparation

Compensation and benefit Wage and salary administration, incentive pay,

paid vacations, sick leave, holiday, insurance,retirement, stock plan and non-financialrewards (workplace environment)

Employee and labor Behavior surveys, labor relations and labor law

(Sources: Bureau o/National Affairs Policy and Practice Series)

2.2.1 Job analysis and human resource planning (HRP)Mondy, Noe, Premeaux (2002) stated that job analysis and HRP helpenterprise to operate effectively a.nd attain workforces with the appropriatequalifications in the right position to achieve the company's goals

2.2.2 Recruitment and selectionDung, T K (2005) pointed out that the function of recruitment andselection concentrate on attracting candidates on right qualifications, timely basis,encouraging qualified applicants to apply for vacancy and then choosing the best-suited candidate from group of candidates

2.2.3 Training and development (T &D)Noe, Hollenbeck, Gerhart and Wright (2007) showed that althoughenterprises base on employee's existing qualifications, most enterprises provideinnovative T & D methods for expanding their skills, knowledge and abilities tokeep up with the fierce competition environment Therefore, company provides T

& D instructions Similarly, Dung, T K (2005) presented that T & D focused onenhancing employee's capacity to complete tasks and developing their own ability

in company

2.2.5 Compensation and benefits

Noe, Hollenbeck, Gerhart and Wright (2007) addressed that the function ofcompensation and benefits have a vital role because they motivate employees byproviding direct financial compensation (salary, wage, bonuses and commission)and indirect financial compensation Gob environment)

2.2.6 Employee and labor relations

Noe, Hollenbeck, Gerhart, Wright (2007) showed that companies rely onprofessional HRM to aid them in maintaining positive relations with staffs Thisfunction consists of distributing and preparing employee handbooks that providedetailed policies If employees are dissatisfied with their supervisor, they mayrequire HR department for help In company, employees belong to a union The

HR department keeps closely communication with union to ensure that problemsare solved when they arise

Dung, T K (2005) found that the role of HRM department stated clearlybellowing

2.3.1 Establishing and administering personnel policies

Companies depend on their HR department to help set up policies related topromotions, rules, recruitment and benefits Those policies not only promotedecision-making fairly but also create workplace safety

HRM information always record keeping carefully from job applications toperformance appraisals This information must be accurate and easy to accesswhen needed

2.3.2 Ensuring compliance with labor laws

The government has many rules paying attention to protect the right ofemployees These regulations contain employee safety and health, employment

Chapter 2: Literature Review

opportunity, employee perquisites and job security Government requirementsconsist of reports and posters in order to prevent unlawful behavior Mostmanagers depend on HR department to help them implement these requirements

2.3.3 Supporting the organization's strategy

Nowadays, HR departments have taken on a crucial role in supportingorganization's strategy HR department assists company in identifying the types,the numbers of employees to meet company's objective and handling employeeturnover or lay-off

2.4 TheHRM

2.4.1 HRP

Mondy, Noe, and Premeaux (2002) demonstrated that HRP is the process

of reviewing HR requirements to ensure that the required skills with the number ofemployees are available when needed

The HRP process is illustrated in figure I:

Figure 1: The HRP process

Strategic planning

Forcasting HR

requirements

Comparingrequirements andavailabili

Restricted hiring,reduced hours,early retirement,layoffs,downsizing

Forecasting HRavailability

Shortage ofworkers

Recruitment

(Source: Mondy, R W, Noe, R. M, &Premeaux, S.R (2002) HRM ( 8 th ed.).

New Jersey: Prentice Hall)

6

Chapter 2: Literature Review

2.4.2 Job analysis

Noe, Hollenbeck, Gerhart, Wright (2007) stated that gaining high-qualityperformance, company must match job requirements and skills of individual socompany need job analysis Analyzing job provides job's duty, requiredknowledge and skills, and working environment

Mondy, Noe, and Premeaux (2002) pointed out that job analysis is used toprepare both job descriptions and job specification Job description is a list ofduties of a job Job specification is list of skills, knowledge, and other traits that aperson should possess to perform a particular task

According to Marvin, there are seven types of data collected through jobanalysis shown in table below:

Table 2: Types of data collected through job analysis

Work activities Work activities

Procedures usedActivity recordsPersonal responsibilityWorker-oriented activities Human behavior

Elemental motions for methods analysisPersonal job demand, such as energy expenditureMachines, tools,

equipment and work aids

Financial and nonfinancial incentivesPhysical working conditions

Chapter 2: Literature Review

Personal requirements for Personal attributes such as interests and the job

below

characteristics Education and training requirements Work experience

(Source: Marvin D Dunnette)

Dung, T K (2003) said that the content of the job analysis are detailed

Figure 2: Job analysis: A basic HRM tool

Job descriptions

H Recrui- T&D Perform Compen Safety Job

tion

(Source: Dung, T.R (2005) HRM (4/ h ed.) Vietnam: Thong Ke)

2.4.3 Recruitment and Selection

Curnow (1989) found out various methods of external recruitment following advertisements, job centers, employment agencies, recruiters, special events, professional associations, employee referrals, recruitment consultants, career conventions, open days, recruitment fairs, university 'milk round', radio advertising and other forms of recruitment Mondy, Noe, and Premeaux (2002) pointed out that internal recruitment methods have job bidding and job posting.

8

Chapter 2: Literature Review

Mondy, Noe and Premeaux (2002) illustrated a selection process detailedbelow

Figure 3: The selection process

Selection decision

Preliminary interview

Reference and Background checks

Review of applications and CV

Physical examinationEmployment interviews

New employee

(Source: Mondy, Noe and Premeaux (2002) HRM ( 8 th ed.).

New Jersey: Prentice Hall)

Mondy, Noe and Premeaux (2002) demonstrated T&D below

Figure 4: Training and Development process

Determine

T&D

needs • Establish

specificobjectives • , - Select

_' T&Dmethods • Implement

T&Dprograms • Evaluate

T&Dprograms

(Source: Mondy, Noe &Premeaux (2002) HRM ( 8 th ed.).

New Jersey: Prentice Hall

Chapter 2: Literature Review

Appraiseperformance

ProvideperfOlmancefeedback

Problem solving

Rewards

(Source: Noe, Hollenbeck, Gerhart, Wright (2007) Fundamentals of

Noe, Hollenbeck, Gerhart, Wright (2007) stated that there are manymethods for measuring performance

The first method is making comparisons It reqUires comparingindividual's performance with the other person The techniques for makingcomparisons are forced distribution, simple ranking and pared comparison

The second method is rating individuals The method used for rating is thegraphic rating scale This method provides a rating scale for each trait Manageruses this method to indicate something which employees show each feature Toget this problem, company use mixed-standard scales for describing each trait tooffer a final score One way to overcome the advantage of rating is to measurestaffs behavior The way to rate behavior is critical-incident method (based onmanagers' records about effective or ineffective action of staffs Another method

is behaviorally anchored rating scale (BARS) The BARS method measures

10

Chapter 2: Literature Review

different levels of performance A behavior observation scale (BOS) is a variation

of BARS BOS uses attitudes of effective performance to rank a task Applied tobehavior in organization, organizational behavior modification (OBM) IS astrategy for managing behavior of employees through a system of feedback

The third method is measuring results The first method is management byobjectives (MBO) MBO is system that employees set goals and business use thisgoal to evaluate employee's performance The second method is productivity

The final method is total quality management (TQM) TQM combinesmeasurements of results and attributes

2.4.6 Compensation

Mondy, Noe, and Premeaux (2002) demonstrated that components of a totalcompensation program detailed below

Chapter 2: Literature Review

Figure 6: Components of a total compensation program

Legally Required Social securi ty Unemployment insurance Worker's compensation Family and Medical Leave Voluntary

Payment for time not worked (e.g: vocations, sick pay) Health Benefits

(health, dental, and vision care) Security benefit

(retirement, disability, life insurance)

Employee services (e.g, relocation, child care, educational assistance, food

Co-Congenial workers

Job environment Sound policies Competent employees

• Compressed workweek

• Job sharing

• Flexible compensation

• Telecommuting

Feedback Appropriate Status

Symbols Comfortable working conditions Workplace flexibility

• Flextime

significance Autonomy

The Job Skill variety Task identity Task

cafeterias, service/subsidized

(Source: Mondy, Noe & Premeaux (2002) HRM( 8 th ed.).

New Jersey: Prentice Hall)

12

CHAPTER 3.

3.1.1 Reasearch process

Chapter 3: Method and Material

METHOD AND MATERIAL

IdentifY the purpose of research

Ask commentfrom advisor

There are six steps in this thesis The first step is building an idea,identifYing the purpose and writing a brief outline about content The secondstep is accessing multiple sources of available information and figure, andchoosing useful and detailed information to meet the research's needs Thethird step implements to design questionnaire The fourth collects information

Chapter 3: Method and Material

through interview, observation and survey in VIET HOA HOLDINGCORPORATION The fifth step synthesizes rationale infonnation, analyzesdata by charts and software The final step offers recommendations andconclusion

This model is used for questionnaire and employee's interview

3.1.3 Reasearch theory

Theory for dependent variables is Ho Elements do not increase effectiveHRM

Theory for independent variables:

The first is labor recruitment:

Ho: labor recruitment does not affect to effective HRM

HI: labor recruitment affect to effective HRM

The second is labor training:

Ho: labor training does not affect to effective HRM

HI: labor training affect to effective HRM

The third is labor maintain:

14

Chapter 3: Method and Material

Ho: labor maintain does not affect to effective HRMHI: labor maintain affect to effective HRM

The fourth is labor layout:

Ho: labor layout does not affect to effective HRMHI: labor layout affect to effective HRM

The fifth is facilities:

Ho: facilities does not affect to effective HRMHI: facilities affect to effective HRM

The final is culture-society:

Ho: culture-society does not affect to effective HRMHI: culture-society affect to effective HRM

3.1.4 Building scale and questionnaire

I. Labor recruitment Ordinal scale

2 Labor training Ordinal scale

3 Labor maintain Ordinal scale

4 Labor layout Ordinal scale

5 Facilities Ordinal scale

6 Culture - Society Ordinal scale

7 Effective HRM Ordinal scale

3.2.1 Secondary research

The instrument employed in this research was taken from reports,

studies that individual or company has already carried out In addition, search

engine, SPSS 16.0 lesson in market research book, ProQuest Central databasefrom HUFLIT library online, books and graduation paper about HRM fromHUFLIT library and luanvan.net on the Internet, newspaper, news, press,journals, magazines and online newspaper were summarized Besides, theinformation was collected from VIET HOA HOLDING CORPORATION such

as job analysis, job description, interview process, HR structure, and incomestatement

Chapter 3: Method and Material

3.2.2 Primary research

3.2.2.1 Survey (questionnaire)

To obtain much detailed information from staffs in VIET HOAHOLDING CORPORATION and a better understand in their HR activities, asurvey (questionnaire) was carried out A standard questionnaire was deliveredrandomly to employees in VIET HOA HOLDING CORPORATION andVIETHOA Transport service and Trading CO., LTD (a branch of VIETHOAGroup) during the time period from April 4th to April loth, 2015 including 121forms through 10 questions delivered to all employees

The questionnaire includes two parts personal information and researchinformation The personal information part includes 3 questions, which weremade to collect private information of employees, particularly age, job andgender The research information part consisted of 9 questions and divided intothree groups following:

Group A (question 1 - 7) was designed to take a look at the reason ofapply into company

Group B (question 8) measured satisfaction of recruitment and training

In addition, all pictures relating to topic were captured when internship incompany

3.2.2.3 Interview

Due to shortage of time, the author has just interviewed two staffs inimport - export department Note-taking skill plays an importance in interviewand completes survey information The first appointment was made with Mr LeHong Duong - import employee of VIETHOA HOLDING CORPORATION

~ ,-<, cr,' "4' V~!i" ,,',,",,''"''-''-''.-'',",'','''''';:;;-'-''''',_:,c-,'''C,',:,,",-.,',_,.",,,?,,,,_o,,;,','x'''x,:,~,",,,,,,.'.,'"'",",,"4""'.' -, "~',~"',"".,"""~",Y"""''c_,~"",'."o. :,.,,,=,' ~::;: ,,,,::N".:':-':'""~,.>"":"'" ': H

16

Chapter 3: Method and Material

on March 4 th, 2015 This interview was implemented in CAT LAI Port - Ho Chi Minh City when he and the author went to there for clearing customs to import products from MITSUBA PHILIPPINES CORPORATION - WAREHOUSING DIVISION One week later, Mr Tran Thanh Hoa-export employee and the author went to TAN SON NHAT port to export a bulk of cloths At that time, the author could fulfill many questions that were confusing

in author's mind.

The purposes of these interviews are to complete specific information belonging to training and development in company Moreover, the author collected their practical opinions supporting to suggestions of research.

3.2.2.4 Analysis

The time to data-processing is from April 11 th to April 30 th, 2015 The results of obtained data were analysed in Frequency, Statistic, Mean, Cronbach Alpha, One - Way Anova in SPSS 16.0 Besides, the writer used Miscrosoft Excel to calculate, draw column charts and tables to illustrate the survey results.

3.3 Overview of VIET HOA HOLDING CORPORATION

3.3.1 Introduction about VIET HOA GROUP

Website: www.viethoagroup.com

Capital: USD 5,000.000.00

Employees: over 300 staffs

Manager: Duong Thanh Khuan

Chapter 3: Method and Material

VIET HOA GROUP (VIETNAM) have 3 companies and 4 BranchOffices in Vietnam

3.3.1.2 Development process

In September 1995, VIET HOA Transport Service & Trading CO., LTD(Head office) was established It is the member of Global Freight GroupNetwork (United Kingdom)

CO., LTD was established (HCM Branch)

In June 2001, VIET HOA Global Joint-Stock Company was established

It is the member of multi transport group network (Singapore)

enterprises, which is organized by Vietnam chamber of commerce andindustry

In November 2006, VIET HOA Hai Phong Branch was established.

In December 2006, company was awarded Certificate Of Approval Of

International Quality Standard- ISO 9001 : 2008 by BVQI organization

In April 2008, VIET HOA Holding Corp was set up It is the member

of worldwide cargo network association

In October 2008, VIET HOA Da Nang Branch was set up.

In September 20 I 0, company became The Ordinary Member Freight

Forwarders Association (VIFF AS)

Chapter 3: Method and Material

3.3.1.3 Organization chart of VIET HOA GROUP

Figure 7: Organization chart of VIET HOA GROUP

VIETHOA Group

"

Board Of Management

I

Board Of Director

I

Auditing The Member Of Company Belong To

I

Joint-stock Transport Service & HOLDING

Company Trading CO., LTD Corp~ration

Chapter 3: Method and Material

3.3.2 The establishment

CORPORAnON

In 2008, VIET HOA HOLDING CORPORA nON was established,which is the member of Worldwide Cargo Network Association With about 50staffs, company provides customers with high quality logistics in order to beable to fulfill customer's specific requirements

Address: 60, 17 Street, An Phu Ward, District 2, Ho Chi Minh CityCapital: USD 1,000.000.00

Tel No.: (84-8) 62810240 (20 line)

Fax No : (84-8) 62810239

E-mail: general@viethoaholdingcorp.com

Website: www.viethoagroup.com

20

Chapter 3: Method and Material

3.3.3 The organization chart

Figure 8: The organization chart

(Source: HR department in VIET HOA HOLDING CORPORATION)

CORPORATION

3.3.4.1 HR situation in company

Table 3: HR situation in departments of VIET HOA HOLDING CORPORATION during 2014-present

Unit: one person

Structure relation The gap

2014 2015

2014 (%) 2015 (%) (person) General director 1 1 2.777777778 2.04081633 0

Chapter 3: Method and Material

Export Department 3 4 8.333333333 8.16326531 1Import Department 3 4 8.333333333 8.16326531 1

Department of company is unbalanced because the functions and tasks

of every department are different and a number of jobs increase substantiallyyear-on-year Therefore, every year, the increases of staffs are necessary In

20 12, the amounts of employees increase 8 people against the period year

3.3.4.2 Planning for HR

Company applies some methods following:

The first method is analyzing environment, setting goals and strategies.The second method is forecasting quantity of jobs in long-term andconducting job analysis

The third method IS forecasting HR, identifying HR demand andplanning HR program to help company adapt new tendency and use HReffectively

The fourth method is carrying out HRM policy and program

3.3.4.3 Job analysis

Depending on job description, company conduct to build a jobspecification including educational requirements, experience, personality traits,physical abilities, certificate of computer and English, skills, health andgenders

22

Chapter 3: Method and Material

• Advantages: abundant labor

• Disadvantages: hard to find a standard employee

External candidates

• Advantages: attracting qualified applicants, providing new ideas,increasing diversity, bringing new insights from other companies and biggertalent applicants

• Disadvantages: recruitment is more costs and longer, currentmembers may fight new ideas, break current employee loyally and morally

Internal employees

• Advantages: easily assessing job and improving staffs loyal

• Disadvantages: narrowing of creative ideas and being difficult towork with rapid growth

General comment: Nowadays, recruitment sources have limitations andare not flexible Although company try to find workforce costly andeffectively, company need to expand more and more sources

Chapter 3: Method and Material

Recruitment process:

Table 4: Recruitment processResponsibility Tasks

Manager Recruitment requirement

HR department Considering recruitment requirement

Board of director Accepting

HR department Establishing recruitment planning

HR department Recruitment announce

HR department Receiving application form

HR department Checking and interviewing

HR department Training

HR department Offering job

(Source: HR department in VIET HOA HOLDING CORPORATION)

3.3.4.5 Human resource T & D

Company does not celebrate a big training program but they focus onusing on-the-job or short-term classroom training

On-the-job training: employee learns job tasks by performingthem actually

• Advantages: training many employees in the same time, time training, and can work in learning process

short-• Disadvantages: instructor works closely with new employees,which easily occurs angry or tired because he or she does not increase income

• Short-term classroom training (5-6 days): this method focuses onenhancing major, level and expertise for staffs

• Advantages: employees are trained systematically and the effect

to job is limited because of the short training period of time

24

Chapter 3: Method and Material

• Disadvantages: The numbers of staffs are limited because there isone instructor to coach limited staffs (one instructor trains ten staffs)

General comment: T & D is carried out carefully Company alwayscreates advantage condition for staffs to learn and enhance their knowledge andexperience However, the last time, the amounts of employees were trainedaccounted for low rate Therefore, company should establish many trainingprograms

3.3.4.6 Performance appraisal

Company has a quarterly appraisal system After a quarter, alldepartments hold a meeting to appreciate staffs depending on appraisalstandard and then the results are brought to managers Appraisal standardincludes:

The first one is level A Employees do not violate regulations andcomplete tasks Those kinds of employees receive the completed salary (1.0)

The second one is Level B, C, D Relying on the regulations andbreaking rules The total of employees' salary multiply 0.9, 0.8, and 0.5 (or90%,80%,50%)

There are many advantages and disadvantages of appraisal method.Firstly, advantage of appraisal method is that company builds standardsfor employees to regulate

Secondly, disadvantage of method is that it only focuses on employee'sincome Employees do not consider this method as a way to accumulateachievements in tasks Therefore, this method cannot encourage staffs to createnew idea In addition, appraisal method is viewed as a procedure in company

3.3.4.7 Compensation and benefits

Company is compliance with regulations and policies in pay salary andwages depending on level, position and base salary from Government

Salary is depended on factors such as skills, experience, seniority andcapacity of employees

On special occasion including 30thApril, IstMay, Lunar New Year,birthday and others public holiday, company will celebrate party In addition,

Chapter 3: Method and Material

each employee receive VND 200,000.00 on birthday as a small gift and thirteenmonth at the end of year

32.5% of employees' base salary is used to pay security (socialinsurance, medical insurance and volunteer insurance) However, company pay22% and each staff only pay 10.5%

Every year has twenty-seven off-days for each staff including 1 day offevery month, 12 days off-holiday and 3 days sick

Beside financial of compensation, company creates a comfortableworkplace All offices are equipped with air conditioners, printers,photocopiers and refrigerators

Each staff is provided with a telephone, a computer and necessarystationery to perform tasks well

CHAPTER 4.

Chapter 4: Discussion

DISCUSSION4.1 The analyze of secondary research figures

4.1.1 Income statement of company from 2011-2014

Table 5: Income statement of company from 2012 to 2014

(Source: Accounting department)

Appreciate some results of income statement

Table 6: Some results of income statement in company from 2012 to 2014

(Source: Accounting department)

This table 6 shows that the revenue of company in 2014 is worth VND55,289 million, increasing by VND3,619 million over the same period last year.Because the profit after ta~.iecr@~"'Js'''y61iro9-year, the corporate tax decreases

Chapter 4: Discussion

from VND2,588 million to VND1,676 million The profit before tax is atVND4,288 million in 2014, decrease by VND 1,025 million compare with theperiod year last year Although the profit is down, the average income of staffsincrease from VND3,450 million to VND3,650 million

Appreciate results of revenue

Firstly, revenue 2013/2012: The total turnovers in 2013 increase 8.61 %against 2012 with VND4, 096 million

Secondly, revenue 2014/2013: The total sales In 2014 increase 6.91%against 2013 with VND3,569 million

The growth rate during 2012 - 2014 is substantial stable

Appreciate results of profit

Profit tends to decrease detailed below:

Firstly, profit before tax in 2013 accounts for 72.30% compare with 2012.Secondly, profit before tax in 2014 rates 57.54% against 2013 and is about79.57% compare with 2012

4.1.2 The analyze of SWOT about company

Each staff has a specific task There are 8 employees and 1Almost employees are graduated manager In customs brokerfrom university so company can train department Everyone is responsiblethem to adapt to dynamic and for one task (import declaration incompetitive environment easily seaport, export declaration In

HR is young from the age of 25 to seaport, import declaration Inthe age of 35, which is competitive airport, export declaration in airport,advantage because employees can apply LCL consolidation or LCLnew software into job effectively and container) As a result, when ancatch up with new process of job employee cannot solve problemMoreover, they contribute many creative arising in port, he will not know askand new ideas to job to whom in company He must learn

Customs Broker Department with by himself and take experience

9 employees can declare custom quickly during task processing In addition,

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Chapter 4: Discussion

Sale staffs increase dramatically staffs of this department only workyear-on-year and they always look after when company has customers Onexisting customers and find new the other hand, they often play gamecustomers to make profits or log in Facebook or Skype to chat

Recruitment sources are with their friends when company

Many benefits are provided to Many new employees are

Company is member of many According to EnterpriseWell-known Professional Association Association, Vietnam has overworldwide and locally such as: FIATA 1,200 enterprises providing logistics(company will be protected and service but 40% HR adapt the HRdeveloped the benefits of forwarders in demands of major and the rate ofair transport) and lATA (company will specialized HR is at low (from 5%

be promoted to develop about aIr to 7%) In addition, a survey of Hotransport safe, supported to solve Chi Minh Institute for developmentregulaitons, finance, technical field and studies showed that 53.3%adjust cost) enterprises are lack of logistics

According to General Department expertise, 30% enterprises train

of Vietnam Customs, the total of export- employees after recruiting Becauseimport turnover in March 2015 rates of low specialized HR, companyUSD56,76 million, increase by 13.7% always hunts for talented HR.compare with 2014, which is a big Therefore, VIETHOA Companyopportunity for logistics enterprise to must compete with the othersprovide export-import service enterprises to recruit excellent staffs

With SWOT analysis, VIET HOA HOLDING CORPORATION can offeroperation strategy and choose business strategy to adapt to actual situation

Chapter 4: Discussion

Questionnaires are n=121 variables to be analyzed by SPSS 16.0

4.2.1 The Frequency analyze

4.2.1.2 Integration training

Figure 10: The reasons of applying into VIETHOA Company

The pretigious company The high salary and good benefits

The dynamic working

The convenient location

The others

16.50%

.• The reason applying into VIETHOA Company

According to survey, 9.1 % employees answered that they apply VIETHOA Company because they wish to Jom a professional and dynamic working

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