Luận văn thạc sỹ: RECOMMENDATIONS TO IMPROVE RECRUITMENT AND SELECTION IN SSI – HANOI BRANCH

The Hanoi Stock Exchange (HNX) and Ho Chi Minh City Securities Trading Center (HOSE) were officially inaugurated on July 20, 2000. From its beginning, Vietnamese stock market has been developed rapidly. Currently, by the end of 2009, the total market capital is approximate 40 billion US dollar, and total daily trade of both HOSE and HNX is more than 100 million US dollar. According to estimation in 2010 the capital size of the stock market will be increased many times when much more companies have planned to register their stocks to be listed on HOSE and HNX. As a result, Vietnamese stock market will become very promising and challenging in the future. There were two securities companies in year 2000 at the inception of HOSE and HNX, but that number has been added massively years to years. During the last period, the market was shared by several big and old securities companies, such as SSI, BVS, ACBS and ICBS. Because of the boom of stock market in 2006 together with the tendency to post up of joint stock companies there were a wave of new established securities companies and that leads to the lack of qualified human resource working in stock market. Up to now, there are more than one hundred securities companies are operated in the market and gradually seize the market share, and this number will continue to grow in later years. This trails the demand for human resource has been ongoing increased. Most companies have endeavored to recruit and select employees who are qualified and experienced in finance. Because of the intellectual business field, recruitment and selection are very important processes; these are crucial first steps for a company to employ the appropriate candidates for particular jobs. Unless a company selects the right people by using suitable recruitment and selection process, it will lose money and time to fix the consequences. Requirement for employees, who work in securities companies, are more rigorous than in other fields. It requires certificate on practicing professional competence issued by State Stock Committee (SSC) beside other requirements such as experience, knowledge, professional skills. Therefore, in order to minimize the cost and time wasting caused by poor performance of staffs the lack of deliberation in recruitment and selection, securities companies have to set up the reasonable human resource plans which first pays attention on recruitment and selection process. When the Vietnamese Stock market boomed in 2006, securities companies were established with incremental number. At that time, the supply of qualified labor in this field was lack. As a result, most securities companies recruited employees recklessly, a huge number of their workforce didn’t have knowledge and experienced about stock market, they even didn’t have certificates issued by SSC. This lack of deliberation caused serious consequences, poor performance of staffs caused unsatisfactory of customers, companies’ prestige reduction and high turnover. The world financial crisis took place in 2007 and 2008, the workforce in securities companies was tumble reduction and they are fired with huge number. But after suffering the world financial crisis, at the end of 2008 up to now, the Vietnamese stock market has been recovered with moderate speed and the demand for workforce is increasing again. With the new situation, securities companies have been cautious in recruiting and selecting their workforce. According to the results of the survey on website vneconomy.com.vn in 2009 about human resource situation in stock market, 57% of people agreed that the recruitment of fit well talents will be the major challenge in 2010-2015. So 72% of securities companies surveyed said the budget for personnel operations of their company will increase in 2010-2015. At the National Meeting about Finance and Banking human resources, Finance Ministry leaders said the demand for human resource in 2010 in stock market is 5,000 people, but in fact the current human resource is only meet 40% demand. So, the competition between securities companies in recruiting people is getting fiercer. Saigon Securities Inc. was established 2000, with charter capital was 6 billion VND, offering only brokerage and stock investment advisory services. As Vietnam’s premier financial services company, SSI commits to providing unrivaled investment intelligence and opportunities, and consistently superior customer service. With its large scale, SSI is trying to build up a qualified, dynamic and creative workforce to meet customers’ demand and company’s business strategy. The company considers recruitment and selection are the important tasks to bring success to SSI. SSI has recruited more and more staffs recently because of the company’s expansion. But division managers are displeasure about the effectiveness of recruitment and selection of Human Resource Department. According to the result of my survey conducted in November 2011, about 67% of line managers complain about their staffs’ performance, ability and knowledge. Many staffs work with low speed and make mistakes regularly. In some cases, those situations cause serious consequences. The managers have to return staffs to Human Resource Department for retraining, transferring to another departments or even ending the labor contract. As a result, the turnover is quite high, about more than17% in average for four years, from 2008 to 2011, and most staffs leave SSI involuntarily. Therefore, the cost for retraining staffs, terminating contracts and recruiting new people is also really high. On the other hand, I found that many newly staffs in SSI are dispirited and stressful; they have to spend much time to familiarize themselves with the job and the company’s culture, because they are not given concrete job descriptions at the starting time, they are not trained about the job and SSI’s culture either.

TABLE OF CONTENTS

ACKNOWLEDGEMENTS

ABBREVIATION

FIGURES, CHARTS AND TABLES 3

1 Charts 3

2 Tables 3

3 Appendices 3

Chapter 1: INTRODUCTION 5

1 Rational 5

2 Research objectives: 7

3 Research questions: 7

4 Research methodology: 8

5 Scope of research and limitation 9

6 Research contents: 9

Chapter 2: BACKGROUND RELATED TO RECRUITMENT AND SELECTION 10

2.1 Definitions: 10

2.1.1 Human Resource Management 10

2.1.2 Human Resource Planning 11

2.1.3 Recruitment and Selection 11

2.2 Process of Recruitment and Selection 12

2.2.1 Job description and job specification 12

2.2.2 Process of Recruitment and Selection 13

2.2.2.1 Process of Recruitment 13

2.2.2.2 Process of selection 20

2.3 Induction 26

2.4 Role of Recruitment and Selection in Organization 27

2.5 Relationship between Recruitment & Selection and HRM functions in organization 28

2.5.1 Recruitment & Selection and HR planning 28

2.5.2 Recruitment & Selection and Performance evaluations 28

2.5.3 Recruitment & Selection and Compensation & Benefits 28

2.5.4 Recruitment & Selection and Training & development 28

2.5.5 Recruitment & Selection and Employee relations 29

2.6 Factors affecting Recruitment and Selection 29

2.6.1 Factors affecting Recruitment 29

2.6.2 Factors affecting Selection 31

Chapter 3: THE ACTUAL SITUATION OF RECRUITMENT AND SELECTION IN SSI - HANOI BRANCH 33

3.1 Overview about SSI 33

3.2 Overview about SSI – Hanoi Branch 33

3.2.1 SSI – Hanoi Branch’s divisions: 34

3.2.2 Missions and vision of SSI – Hanoi Branch from 2010 to 2015 35

3.2.3 SSI – Hanoi Branch’s Structure: 35

3.2.4 HRD’s functions and responsibilities 35

3.2.5 SSI – Hanoi Branch’s labor force structure 36

3.3 Factors affecting recruitment and selection at SSI - Hanoi Branch 37

3.3.1 Internal factors: 37

3.3.2 External factors: 38

3.4 Finding about recruitment and selection at SSI - Hanoi Branch 39

3.4.1 HR Planning 39

3.4.2 Job descriptions 40

3.4.3 Recruitment 42

3.4.4 Selection 49

3.4.5 Induction 52

Chapter 4: RECOMMENDATIONS TO IMPROVE RECRUITMENT AND SELECTION IN SSI – HANOI BRANCH 54

4.1 Business plans and estimated manpower of SSI – Hanoi Branch in the next period 2012 – 2014 54

4.1.1 Business plans 54

4.1.2 Estimated manpower for the period 2012 – 2014 55

4.2 Recommendations 56

4.2.1 Strengthen recruitment team 56

4.2.2 Improving job descriptions 57

4.2.3 Improving tests and interviews: 58

4.2.3.1 Tests 58

4.2.3.2 Interview: 59

4.2.4 Conduct reference check carefully 63

4.2.5 Use more sources for choosing the best ones 63

4.2.6 Other solutions 64

CONCLUSION 65

LIST OF REFERENCES 66

APPENDIX 1: PERSONEL REQUISITION FORM 67

APPENDIX 2: CANDIDATE EVALUATION FORM 68

APPENDIX 3: FORM OF PROBATION EVALUATION 69

APPENDIX 4: INTERVIEW QUESTIONS FOR LINE MANAGERS AND HR OFFICERS 70

APPENDIX 5: QUESTIONNAIRE FOR STAFFS 75

APPENDIX 6: RESULT OF INTERVIEW QUESTIONS FOR LINE MANAGERS 78

APPENDIX 7: RESULT OF QUESTIONNAIRE FOR STAFFS 82

I would like to express my deep and sincere gratitude to my supervisor, Dr Dao Thi ThanhLam, Business School of National Economics University Her wide knowledge and herlogical way of thinking have been of great value for me Her understanding, encouragingand personal guidance have provided a good basis for the present thesis I also wish toextend my warmest thanks to all those who have helped me with my thesis in EMBA 7Bclass, Business School NEU

My special gratitude is due to my Director, my colleagues at SSI and my friendsworking in financial for their participation in my survey and for valuable information theyprovided

I would also like to thank my family Without their encouragement and understanding

it would have been impossible for me to finish this thesis

Thank you very much

SSC: State Stock Committee

HOSE: Ho Chi Minh City Securities Trading Center

HNX: The Hanoi Stock Exchange

SSI: Saigon Securities Incorporation

SSI – Hanoi Branch: Hanoi Branch of Saigon Securities IncorporationACBS: Asia Commercial Bank Securities

ICBS: Incombank Securities

BOA: Board of Administration

HRD: Human Resource Department

HRP: Human Resource Planning

JDs: Job descriptions

FIGURES, CHARTS AND TABLES

1 Charts

Chart 1: Recruitment process flowchart

Chart 2: Selection process flowchart

Chart 3: Structure of SSI – Hanoi Branch

Chart 4: Recruitment flowchart of SSI – Hanoi Branch

Chart 5: Selection flowchart of SSI – Hanoi Branch

2 Tables

Table 1: Shareholder structure and ownership ratio

Table 2: Personnel requisition form

Table 3: Candidate evaluation form

Table 4: Recruitment and selection report for 2007, 2008 and 2009

Table 5: Form of probation evaluation

Table 6: Turnover of SSI – Hanoi Branch

Table 7: Gap between hiring time and demand fulfillment time

Table 8: Business plan for SSI – Hanoi Branch from 2011 - 2013

Table 9: Manpower plan in period 2011 - 2013

Table 10: Job descriptions

Table 11: Standard mark for transaction officer

Table 12: Interview evaluation form

3 Appendices

Appendix 1: SSI – Hanoi Branch interview questionnaire

Appendix 2: Questionnaire on evaluating the effectiveness of recruitment & selection ofline managers

Appendix 3: Survey for staffs

Executive summary

The Vietnamese stock market has gone through many ups and downs in ten yearsfrom its inception But forecasts to 2020 Vietnam's financial market will thrive, stabilityand integration into international financial markets Vietnamese stock market has greatpotential and favorable conditions to grow However, development opportunities arealways accompanied by challenges The competitors between securities companies willbecome more intense and takes place in all aspects: financial capacity, technological,managerial, market share, human resource, etc… It can be said that the human resource isone of the key factors affect organization’s value, in which recruitment and selection arefirst stages and the decided steps in human resource management Recruitment and plays akey role of HR activities in general and the SSI – Hanoi Branch in particular SSI – HanoiBranch is the oldest and the largest in the whole company It has been the leading branchfor years With over two hundred people work in here, the Branch also has to build aneffective human resource management to ensure all its activities are conducted fluently andsmoothly Therefore, recruitment and selection is very important processes It all boilsdown to selecting the “most qualified and best person” for the job requirements It is thecompany and the Branch's goal to choose the candidate that helps them achieve itsmissions, and gives them the advantage over their competitor's It is not an easy work, but

it is all worth it

Understand about this problem, I would like to focus on analyzing the recruitmentand selection which SSI – Hanoi Branch is used as a minor example Recruitment andselection has been paid attention of BOM and HRD, but for many reasons, it has beenissues and disadvantages in reality Based on my experiences in SSI – Hanoi Branch, Iwish to propose solutions on recruitment and selection to improve and eliminate presentproblems

Chapter 1: INTRODUCTION

1 Rational

The Hanoi Stock Exchange (HNX) and Ho Chi Minh City Securities Trading Center(HOSE) were officially inaugurated on July 20, 2000 From its beginning, Vietnamesestock market has been developed rapidly Currently, by the end of 2009, the total marketcapital is approximate 40 billion US dollar, and total daily trade of both HOSE and HNX ismore than 100 million US dollar According to estimation in 2010 the capital size of thestock market will be increased many times when much more companies have planned toregister their stocks to be listed on HOSE and HNX As a result, Vietnamese stock marketwill become very promising and challenging in the future

There were two securities companies in year 2000 at the inception of HOSE andHNX, but that number has been added massively years to years During the last period, themarket was shared by several big and old securities companies, such as SSI, BVS, ACBSand ICBS Because of the boom of stock market in 2006 together with the tendency to post

up of joint stock companies there were a wave of new established securities companies andthat leads to the lack of qualified human resource working in stock market Up to now,there are more than one hundred securities companies are operated in the market andgradually seize the market share, and this number will continue to grow in later years Thistrails the demand for human resource has been ongoing increased Most companies haveendeavored to recruit and select employees who are qualified and experienced in finance.Because of the intellectual business field, recruitment and selection are very importantprocesses; these are crucial first steps for a company to employ the appropriate candidatesfor particular jobs Unless a company selects the right people by using suitable recruitmentand selection process, it will lose money and time to fix the consequences Requirement foremployees, who work in securities companies, are more rigorous than in other fields Itrequires certificate on practicing professional competence issued by State Stock Committee(SSC) beside other requirements such as experience, knowledge, professional skills.Therefore, in order to minimize the cost and time wasting caused by poor performance ofstaffs the lack of deliberation in recruitment and selection, securities companies have to set

up the reasonable human resource plans which first pays attention on recruitment andselection process.

When the Vietnamese Stock market boomed in 2006, securities companies wereestablished with incremental number At that time, the supply of qualified labor in this fieldwas lack As a result, most securities companies recruited employees recklessly, a hugenumber of their workforce didn’t have knowledge and experienced about stock market,they even didn’t have certificates issued by SSC This lack of deliberation caused seriousconsequences, poor performance of staffs caused unsatisfactory of customers, companies’prestige reduction and high turnover The world financial crisis took place in 2007 and

2008, the workforce in securities companies was tumble reduction and they are fired withhuge number But after suffering the world financial crisis, at the end of 2008 up to now,the Vietnamese stock market has been recovered with moderate speed and the demand forworkforce is increasing again With the new situation, securities companies have beencautious in recruiting and selecting their workforce According to the results of the survey

on website vneconomy.com.vn in 2009 about human resource situation in stock market,57% of people agreed that the recruitment of fit well talents will be the major challenge in2010-2015 So 72% of securities companies surveyed said the budget for personneloperations of their company will increase in 2010-2015 At the National Meeting aboutFinance and Banking human resources, Finance Ministry leaders said the demand forhuman resource in 2010 in stock market is 5,000 people, but in fact the current humanresource is only meet 40% demand So, the competition between securities companies inrecruiting people is getting fiercer

Saigon Securities Inc was established 2000, with charter capital was 6 billion VND,offering only brokerage and stock investment advisory services As Vietnam’s premierfinancial services company, SSI commits to providing unrivaled investment intelligenceand opportunities, and consistently superior customer service With its large scale, SSI istrying to build up a qualified, dynamic and creative workforce to meet customers’ demandand company’s business strategy The company considers recruitment and selection are theimportant tasks to bring success to SSI

SSI has recruited more and more staffs recently because of the company’s expansion.But division managers are displeasure about the effectiveness of recruitment and selection

of Human Resource Department According to the result of my survey conducted inNovember 2011, about 67% of line managers complain about their staffs’ performance,ability and knowledge Many staffs work with low speed and make mistakes regularly Insome cases, those situations cause serious consequences The managers have to returnstaffs to Human Resource Department for retraining, transferring to another departments oreven ending the labor contract As a result, the turnover is quite high, about more than17%

in average for four years, from 2008 to 2011, and most staffs leave SSI involuntarily.Therefore, the cost for retraining staffs, terminating contracts and recruiting new people isalso really high On the other hand, I found that many newly staffs in SSI are dispirited andstressful; they have to spend much time to familiarize themselves with the job and thecompany’s culture, because they are not given concrete job descriptions at the startingtime, they are not trained about the job and SSI’s culture either

2 Research objectives:

The aim of my thesis centers in the idea of improving recruitment and selection process inSSI - Hanoi Branch In order to support this aim there are three objectives of thedissertation:

 To analyze the existing recruitment and selection process of SSI to understand itsstrengths and weaknesses

 To identify root causes of the weaknesses of the recruitment and selection process

at SSI

 To give suggestions for improving recruitment and selection process in SaigonSecurities Inc in order to match the employees and company needs

3 Research questions:

With the objectives above, there are three biggest questions that I attempt to get the

"answers" in this thesis:

 What are strengths and weaknesses of the recruitment and selection process of SSI– Hanoi Branch?

 What factors cause those weaknesses?

 What plausible courses of action to improve the recruitment and selection process

in SSI – Hanoi Branch?

Secondly, the use of survey for qualitative research determines the attitude of staffs, theirreasons for making mistakes and their expectations The questionnaires will be distributed forall the staffs (70 people) of SSI - Hanoi Branch by email All the collected information will besummarized and analyzed to find out the problems in recruitment and selection process in SSI

- Hanoi Branch, and give recommendations to improve these issues

Table 1.1: Feedback result

Result of feedback received

Number of feedback

Secondary data: newspapers, websites, human resources management books, related

researches, reports from SSC, stock magazines and other relevant documents

5 Scope of research and limitation

This thesis focuses on studying recruitment & selection activities within SSI – HanoiBranch in three years (from 2009 to 2011) The information was collected from employees

to realize the reason and current situation of recruitment & selection in SSI – HanoiBranch Comment from leaders of departments and team leaders will help me to givesuggestions to improve recruitment & selection

6 Research contents:

The thesis includes 4 main chapters

Chapter 1: INTRODUCTION

Chapter 2: BACKGROUND RELATED TO RECRUITMENT AND SELECTION

Chapter 2 aims to identify theory of recruitment and selection

Chapter 3: THE ACTUAL SITUATION OF RECRUITMENT AND SELECTION IN SSI

- HANOI BRANCH

Chapter 3 describes and analyzes in detail the fact of recruitment and selection inSSI – Hanoi Branch

Chapter 4: RECOMMENDATIONS TO IMPROVE RECRUITMENT AND SELECTION

IN SSI - HANOI BRANCH

Chapter 4 is some recommendations to improve recruitment and selection in SSI Hanoi Branch based on its realities

-Chapter 2: BACKGROUND RELATED TO RECRUITMENT AND

SELECTION

2.1 Definitions:

2.1.1 Human Resource Management

Human resource management (HRM) is the sense of getting things done through people.It's an essential part of every manager's responsibilities HRM has become more and moreimportant in every organization This term is defined in many different ways In MichaelArmstrong’s handbook of Human Resource Management Practice, 11th edition, he definedthat Human resource management is a strategic, integrated and coherent approach to theemployment, development and well-being of the people working in organizations Otherdefinition about HRM that defined by Ivancevich: HRM is the function performed inorganizations that facilitates the most effective use of people to achieve organizational andindividual goals

Human resource is a core part in organizations Every business is mainly conducted byhuman, although now machines are replacement for human For this reason, in order toobtain goals and missions, every organization nowadays must be aware of the importance

of human resource and they also give and apply appropriate strategies to manage thisresource effectively HRM is considered dead or live issue in modern life

According to David J Cherrington in his book named “The Management of HumanResources”, HRM ‘s function include: staffing, performance evaluations, compensationand benefits, training and development, employee relations, safety and health, andpersonnel research HRM ‘s function is to ensure that at all times the business is correctlystaffed by the right number of people with the skills relevant to the business needs

Staffing is the first step to create a workforce for organization Regardless of size andorganizational structure, staffing is indispensable Staffing involves three major activities:human resource planning, recruitment, and selection

2.1.2 Human Resource Planning

As defined by Bulla and Scott (1994), human resource planning is ‘the process forensuring that the human resource requirements of an organization are identified and plansare made for satisfying those requirements’ Reilly (2003) defined workforce planning as:

‘A process in which an organization attempts to estimate the demand for labor and evaluatethe size, nature and sources of supply which will be required to meet the demand.’(Michael Armstrong, Armstrong’s handbook of Human Resource Management Practice,11th edition, p.486)

The goal of planning is to keep and improve on the human resource assets of theorganization in order to meet their needs and objectives Human resource planningforecasts human resource requirements of an organization such as skills, salaries, hiringneeds, layoffs, and other human resources concerns It also involves finding ways andmeans to reduce the number of employees if there is a surplus On the contrary, if there is ashortfall of personnel then the human resource plan should attract prospective employeesfrom outside of the organization

2.1.3 Recruitment and Selection

After making human resource plans, if there is a shortage of employees, recruitment andselection are next steps to fill the vacancies The purpose of the recruitment and selectionprocess is to hire sufficient and capable staff to assist the entity in achieving its desiredobjectives Generally, the better the applicant's knowledge, skills, and abilities fit the natureand scope of the job, the higher will be individual and organizational productivity

Recruitment refers to organizational activities that influence the number and types ofapplicants who apply for a job and whether the applicants accept jobs that are offered.Thus, recruitment is directly related to both human resource planning and selection (John

M Ivancevich, HRM, eighth edition, p.186) Recruitment is the positive process as itattracts suitable applicants to apply for available jobs The process begins when newrecruits are sought and ends when their applications are submitted The result is a pool ofapplicants from which new employees are selected

Selection is the process by which an organization chooses from a list of applicants theperson or persons who best meet the selection criteria for the position available,considering current environment conditions (John M Ivancevich, HRM, eighth edition,p.211) It is the process of differentiating between applicants in order to identify and hirethose with a greater likelihood of success in a job Selection is negative in its application in

as much as it seeks to eliminate as many unqualified applicants as possible in order toidentify the right candidates

2.2 Process of Recruitment and Selection

2.2.1 Job description and job specification

Job description

A job description identifies the essential functions of the job and provides informationconcerning the duties and responsibilities contained in a job Such a description shouldconsist of accurate, concise statements that indicate what employees do, how they do it,and the conditions under which they do it The major items included in a job descriptionare: Identification, Job summary, Duties & responsibilities and Job specification (David J.Cherrington, The management of Human resources, fourth edition, p.183)

A job description will set out how a particular employee will fit into the organization Itwill therefore need to set out: the title of the job to which the employee is responsible forwhom the employee is responsible a simple description of the role and duties of theemployee within the organization A job description could be used as a job indicator forapplicants for a job Alternatively, it could be used as a guideline for an employee and/orhis or her line manager as to his or her role and responsibility within the organization Inthis step, job analysis is also important consideration to choose employees either from theranks of existing staff or from the recruitment of new staff, set out the trainingrequirements of a particular job, provide information which will help in decision makingabout the type of equipment and materials to be employed with the job, identify and profilethe experiences of employees in their work tasks (information which can be used asevidence for staff development and promotion), identify areas of risk and danger at workand help in setting rates of pay for job tasks Job descriptions can be used as referencepoints for arbitrating in disputes as to 'who does what' in a business

Job specification

A job specification identifies the minimum acceptable qualifications required for anemployee to perform the job adequately The information contained in a job specificationtypically falls into one of three catelogies: general qualification requirements; educationalrequirements; knowledge, skills, and ability (David J Cherrington, The management ofHuman resources, fourth edition, p.185)

A job specification highlights the mental and physical attributes required of theorganization The job specification is developed from the job analysis Ideally, alsodeveloped from a detailed job description, for each job description, it is desirable to have ajob specification The job specification describes the person an organization want to hirefor a particular job It is helpful in preliminary screening in the selection procedure.Candidates who have unsuitable qualifications, educations and skills can be eliminated

2.2.2 Process of Recruitment and Selection

2.2.2.1 Process of Recruitment

Figure 2.1: Recruitment process

(Source: David J Cherrington, The management of Human resources, fourth edition, p.193)

Formulating a recruiting strategy: When vacancies rise, it recommends develop

strategies and procedures for hiring people qualified with the jobs Base on job descriptionsand job specifications, HRD chose the strategies for recruiting

Internal versus external recruiting

Searching for job applicantsScreening applicants

Maintaining an applicant poolFormulating a recruiting strategy

Every organization has the option of choosing the candidates for its recruitment processes

from two kinds of sources: internal and external sources The sources within theorganization itself (like transfer of employees from one department to other, promotions) tofill a position are known as the internal sources of recruitment Recruitment candidatesfrom all the other sources (like outsourcing agencies etc.) are known as the externalsources of the recruitment

The major advantage of a promotion-from-within policy is its positive effect uponemployee motivation Internal promotion acts as an incentive to all staff to work harderwithin the organization They will desire to distribute more for organization because theirperformance is recognized That also raises the loyalty of employees and encourages them

to work long-term in organization Employees who are promoted for upper positions haveknowledge thoroughly about organization and its culture Individuals with insideknowledge of how a business operates will need shorter periods of training and time for'fitting in'

The disadvantages of recruiting from within are that: The organization will have to replacethe person who has been promoted An insider may be less likely to make the essentialcriticisms required to get the company working more effectively Organization doesn’thave fresh new mind from people outside Promotion of one person in a company mayupset someone else, sometime can due to infighting and jealousy In order to take moreresponsibilities, employees who are promoted need to learn and to be trained aboutmanagerial development

The major advantage of external hiring is that people come from outside the organizationbring new mind with new ideas Besides, they easier to see the issues exiting inorganization, they also have objective sight about organization’s strengths and weaknesses

As a result, if they have ideas or opinions to make change without having to pleaseconstituent groups They create diversity and helps achieve equal employment opportunitygoals However, there are some disadvantages of hiring outsiders Their abilities and skillshaven’t been accessed Besides, it will take time and cost to let them join in organization.Other employees in organization will feel dispirit because they don’t have chance to gethigher position and even have to obey new member that they haven’t worked with before

As a result, the relationship within departments and within a department may be stressfuland inconsistent Other disadvantage that quite trouble if the new recruit worked for acompetitor and signed a no competing agreement, the formal employer may sue that newrecruit and new employer, especially both organizations work in same industry and containprofessional secrets.

Recruitment planning

According to employee requisitions, HRD knows how many vacancies need to be filled.With that number of vacancies, HRD has to plan how many candidates will be recruit.Because there is maybe less people accept the job offer for many reasons Yield ratios helporganizations decide how many employees to recruit for each job opening It is the ratiodescribes the relationship between the number of people will go from one step to next step

To select one best suitable person for a vacancy, HRD has to plan how many candidateswill go through the screening applications, how many candidates will pass the interview,etc…

Plan for recruitment process must be done carefully and with the adoption of themanagement and the HR of the organization Base on the budget allocated for recruitment,the organization have to analyze and work out the cost, time, documentation and schedule

to make for recruitment process Besides, defining how to recruit, when and where toobtain applications can not be ignored Analysis and outline of those for recruitmentprocess is extremely important because they must fit the outline recruitment policy andcompany's objectives

Where and when

Base on job descriptions and job specifications, organizations need to choose the areas thathelp them to select the best candidates These areas will “show” them to where to makerecruitment and selection program If an organization chose internal sources, it can be: Jobposting and bidding (vacancies will be announced publicly for employees); Promotionfrom within (the employees are promoted from one department to another with more

benefits and greater responsibility based on efficiency and experience); Contacts andreferrals (friends and relatives of existing employees are inform to apply).

If an organization decides to choose external source, it can be: Direct applications (Manyjob seekers visit the office of well-known companies on their own Such callers areconsidered nuisance to the daily work routine of the enterprise But can help in creating thetalent pool or the database of the probable candidates for the organization); Privateemployment agencies (Several private consultancy firms perform recruitment functions onbehalf of client companies by charging a fee These agencies are particularly suitable for

recruitment of executives and specialists); Public employment agencies (They operateunder the management of local government or even the management of state, they helppeople to get information about job placement, unemployment insurance, labor marketinformation, testing, employer consolation, training programs, and individuals counseling.They support employees to prepare and find jobs), Executive search firms (They alsocalled headhunters They specialize in finding the right candidate to fill open positions forcorporate clients They usually keep an active list of skilled professionals and areconstantly on the lookout for good connections Being on a headhunter's list means access

to job openings a candidate wouldn't likely find alone Plus, just getting an interview for aposition comes with a sort of recommendation from the headhunter If an organizationchoose external source and especially for high positions, it usually use headhunters);School and colleges (Educational institutes (Various management institutes, engineeringcolleges, medical Colleges etc are a good source of recruiting well qualified executives,engineers, medical staff etc They provide facilities for campus interviews and placements.This source is known as Campus Recruitment); Professional associations (They attractemployees and employers through annual meetings, career fairs, career programs Thoseactivities will help connect eployees and employers so that employees will get jobs andemployers will hire suitable staffs), military services (Some organizations recruit peoplewho are discharged from the military, because of their skills taught in military); unions(labor unions is as a intermediary between the employer and the labor force, especially inconstruction and maritime, where turnover are quite high); the disabled (commonly,organizations dislike to hire disabled people because of number of reasons, but in manycases, employers satisfy with disabled people); former employees (employees has worked

for an organization before and they ended the labor contracts for many reasons is also auseful source They know about the organization and still keep relationship with otheremployees Recruiting them can save the cost for induction and training); advertisements

in the media (advertisements of the vacancy in newspapers and journals are a widely usedsource of recruitment The main advantage of this method is that it has a wide reach);special-event recruiting (organizations can find potential candidates through event related

to recruitment, such as job fairs or meeting about career direction, etc ); summerinternship (this source is useful for some organizations have traditionally recruit student forsome simple positions or sponsor internship program)

HRD can conduct recruiting and selecting instantly after receiving requisitions but if therequisitions are not urgent, HRD can wait until receiving more requisitions from otherdepartments to implement to save the cost In many organizations, they conduct recruitingand selecting periodically, once or twice a year

Entry position

According to David J Cherrington, in his book, he stated that most organizations typicallyhave two major starting positions One entry-level position is at the very bottom of anorganization They are hired to fill an operative or production job And they have apotential to be promoted for first-line supervisor The second entry-level position is lowerlevel of management They have a potential to be promoted for advancement into upperlevel of management In order to realize candidates’ potential, their performances have to

be accessed regularly

Searching for job applicants: Base on recruiting plans and strategies that have been

developed, HRD will conduct hiring program to choose the best candidates to fill thevacancies

choose All vacancies will be advertised as widely as needed to attract a reasonable field ofsuitable applicants and to enhance the diversity of the workforce Managers can requestsupplementary advertising elsewhere such as in the press or professional journals Fixedterm vacancies should be advertised for the maximum period to attract the best field ofapplicants Where a continuation of a fixed term position is proposed, the vacancy must beadvertised for a new term of employment with clearly specified commencement andcessation dates A second appointment may be made from the same field of applicants for

an advertised vacancy provided that the manager is satisfied that further advertisementwould not attract a better field of applicants

Screening applicants

After advertising vacancies on picked channel, organization prepares to receiveapplications in schedule Number of resumes are received sometimes exceed estimate ofthe organization, so the panel has to work very careful to ensure every candidates haveequal opportunities In the process of reviewing applications, the panel should determinewhich points fit with requirements for vacancies in terms of experience, education, jobskills This will help organization to quickly identify potential candidates

Maintaining an applicant pool

When an organization has an applicant pool, it has to analyze information delivered inapplications The result of this is choosing candidates who most familiar with the job

requirements In the process, if it takes time, the organization need to inform to candidates

so that they may know their applications are viewed and considered The organization has

to ensure that the applicant pool contains candidates who willing to take the job, andeliminate candidates who are no longer interest in the positions

2.2.2.2 Process of selection

Figure 2.2: Selection process

(Source: David J Cherrington, The management of Human resources, fourth edition, p.226)

Preliminary screening interview

Preliminary screening interview

The decision to invite applicants to attend an interview is based entirely on what is written

on the application form or in the application letter and CVs which is assessed against thecriteria contained in the person specification and must be consistently applied to allcandidates A record of the assessment must be recorded This is especially important in theevent of any subsequent allegation of discrimination The shortlist must be drawn up byminimum of two people, one of whom should be the recruiting manager All panelmembers participating in short listing must be familiar with the job description and personspecification Short listing must be based only on the information given in the application,which is assessed against the criteria contained in the person specification and must beconsistently applied to all candidates If there are large numbers of candidates meeting allthe criteria for the job, it will be necessary to examine the degree to which each candidatemeets the essential criteria, and by short listing those candidates who, in their application,demonstrate the greatest ability to meet the criteria which can be tested at short listingstage Any potentially suitable candidates who have disabilities with skills and abilitieswhich broadly match the job description and person specification should also be shortlisted, whether internal or external candidates

In order to avoid allegations of favoritism, anyone involved in the selection process, which

is connected by close friendship or is related to a candidate In situations where there areinternal candidates only, it is recommended that a third party not involved in the immediatearea should be involved in the selection process and interview process This will help toensure, and be seen to ensure, that fairness is maintained and that a person is selected onmerit

Application blank

Application blank is a useful way for organization to know about candidates Base on jobdescriptions and job specifications, requirements for vacancies are clarified andapplications blank will be designed to obtain meaningful and value information fromcandidates With a carefully application blank, the organization will make accuratedecision Application blank commonly involves filling full information about vitalstatistics, educational background, work history, and background experiences Besides, inapplication blank, candidates have to certify about the accuracy of given information In

many organizations, using of application blanks is really useful for recruitment andselection.

Interview

The purpose of an interview is to elicit information from an applicant to determine his orher ability to perform the job An interview helps in assessing the applicant’s profile andcomparing it with the job profile for suitability Some candidates may provide falseinformation in their applications, just to gain employment The other advantage of aninterview is the employer can sell his organization and the job to the candidate during thecourse of the interview Successful interviewers learn how to ask the right kind questions,how to keep the applicant talking about relevant information, and how to listen Much ofwhat is learned about applicants in an interview is based on their past experience Pastperformance is the best indicator of future performance This does not mean that someonewho had performed poorly in the past cannot improve in skills and attitude Generally,however, interviewers can see a trend in performance through several jobs or assignments.Sometimes interviewers assume that a candidate who has done something has done it well

or that longevity on a position is a sign of success These are not well foundedassumptions! A reference check can verify the quality of the work performance

The interview is used to eliminate those candidates who do not meet the minimumeligibility criteria laid down by the organization The skills, academic and familybackground, competencies and interests of the candidate are examined during interview.Interviews are less formalized and planned than the final interviews The candidates aregiven a brief up about the company and the job profile; and it is also examined how muchthe candidate knows about the company Interviews are also called screening interviews.Such an interview is generally planned by large organizations for short listing the potentialcandidates in order to cut the costs of selection by allowing only eligible candidates to gothrough the further stages in selection A competent executive from the Human resourcedepartment may elicit responses from applicants on important items determining thesuitability of an applicant for a job such as appearance, age, education, training,experience, pay expectations, aptitude, interests, choice etc this courtesy interview as it is

often called, helps the department screen out obvious misfits If the department finds thecandidate suitable, a prescribed application from is given to her or him to fill submit.

Employment testing

Candidate is required to undergo an employment testing to measure their characteristics inorder to realize the handling in many situations of candidates, and their behaviors in somespecific cases These include: paper-and-pencil tests, performance tests, performancesimulations, graphology, and honesty tests The tests measure candidates’ mental ability,physical ability, knowledge, skills, personality, interests, temperaments, and other attitudesand behaviors Employment testing is useful for organization to recognize the candidatehas behaviors and abilities that best match the requirements of job vacancies

Reference check

Reference checks are a tool that can substantiate and validate candidate information andprovide further insight into a candidate’s skills, abilities, and knowledge To avoid hiringmistakes, selection decisions should always be corroborated by checking a candidate’swork related references

Many employers request names, addresses, and telephone numbers of references for thepurpose of verifying information and perhaps, gaining additional background information

on an applicant Although listed on the application form, references are not usuallychecked until an applicant has successfully reached the fourth stage of a sequentialselection process When the labor market is very tight, organizations sometimes hireapplicants before checking references When reference checks are complete an updateshould be provided to the interview panel/selection committee to confirm the topcandidate However, if the reference check were not positive, other alternatives such asrequesting additional references from the top candidate; checking references of the second

or third ranked candidates; or re-posting and starting the recruitment process again willhave to be discussed

Drug testing

Drug testing is a part of selection process; candidates have to pass this test to be selected

To avoid hiring applicants with a history of using drug, this is a fairly important step.Because selecting candidates who have had mental problems may damage the credibility ofthe company Besides, those people will not work as effective as the expectation Physicaltest is also used to make sure candidates qualified for the job There are several objectivesbehind a physical test Obviously, one reason for a physical test is to detect if the individualcarries any infectious disease Secondly, the test assists in determining whether anapplicant is physically fit to perform the work Thirdly, the physical examinationinformation can be used to determine if there are certain physical capabilities, whichdifferentiate successful and less successful employees Fourth, medical check-up protectsapplicants with health defects from undertaking work that could be detrimental to them ormight otherwise endanger the employer’s property

Final interview

Though all the interview rounds are equally important, the selection interview is the mostcrucial It is here that the employer evaluates you in full detail ranging from matters likeyour work history, education background your potential, determination and goals andbasically anything and everything relevant for the particular post The selection interview

is the most detailed interview that one has to go through The selection interview is a greatopportunity for one to create an impression on the interviewer by displaying onespersonality traits to the best advantage

It is a one to one interaction between the interviewer and the potential candidate It is used

to find whether the candidate is best suited for the required job or not But such interviewsconsume time and money both Moreover the competencies of the candidate cannot bejudged Such interviews may be biased at times Such interviews should be conductedproperly There should be an honest communication between candidate and interviewer

Selection decision

Once organization have seen all of the candidates, it will need to assess the extent to whicheach one met your selection criteria, based on evidence they gave from the questioning andany tests or exercises It is very tempting to start comparing the candidates against oneanother; however, it is best practice (and minimizes the risk of discrimination) to try tostick to looking at how they each meet the person specification and selecting the individualwho best fits this profile.

There are three methods that are typically used for making selection decisions: clinicaljudgment (subjective decision to choose these candidates who seem best fit with jobvacancies), weight composite (weighing the information of candidates and combine them

to a composite score), and multiple cutoffs (eliminate candidates not satisfy one level topass and go to next steps)

To assist in evaluating and comparing candidates at a glance, it may be helpful to create agrid or spreadsheet, with the selection criteria and factors listed along one axis and thecandidates’ names along the other Keep in mind that some criteria and factors will be moreimportant than others so avoid giving each element the same evaluation weight Avoidmaking on the spot or quick selection decisions It is important to take the time to considerall of the factors and to ponder the evaluation results over a day or two before proceedingwith reference checks on the final candidate(s) The evaluation results may also indicate aclose match between more than one candidate, therefore requiring a second round ofinterviews and/or checking references on all of the top candidates before a final selectiondecision is made Alternatively, it may become obvious that none of the candidates meetthe requirements and it may be necessary to re-post the job and start the recruitmentprocess over The official note taker should record the outcome of the competition,summarize the evaluation results and list the rationale for the selection decision In theevent the interview panel needs to defend their selection decision they will be able toaccess this information from the competition file The final selection decision shouldalways be confirmed through completing thorough reference checks

Placement on the job

The next step in the selection process is job offer to those applicants who have crossed allthe previous hurdles Job offer is made through a letter of appointed Such a letter generallycontains a date by which the appointee must report on duty The appointee must be givenreasonable time for reporting Those is particularly necessary when he or she is already inemployment, in which case the appointee is required to obtain a relieving certificate fromthe previous employer Again, a new job may require movement to another city, whichmeans considerable preparation, and movement of property.

After the job offer has been made and candidates accept the offer, certain documents need

to be executed by the employer and the candidate One such document is the attestationform This form contains vital details about the candidate, which are authenticated andattested by him/her Attestation form will be a valid record for the future reference

The candidate should also note that, receiving the offer letter and rushing to join theorganization is not viable option for him He must read the contents and should be satisfiedwith the condition, salary and benefits of the company, before offering his candidacy forthe job If he finds any terms, conditions, remuneration, benefit or working hours in theletter, not to his satisfaction, he can refuse to work in the company or courteously negotiatewith the HR department or employer of the organization Such negotiations are valid in thecorporate culture and can be carried out professionally and humbly The reason for thenegotiation lies with the fact that, certain conditions of the company may be detrimental, tohis work performance or future career opportunity

2.3 Induction

Induction is the process of receiving and welcoming employees when they first join acompany and giving them the basic information they need to settle down quickly andhappily and start work (Michael Armstrong, Armstrong’s handbook of Human ResourceManagement Practice, 11th edition, p.486) Employees who have a well thought-outinduction are more likely to stay with the organization However, designing an appropriateand cost-effective induction package is a complex task The induction program has toprovide all the information that new employees need, and are able to assimilate, withoutoverwhelming or diverting them from the essential process of integration into a team The

length and nature of the induction process depends on the complexity of the job and thebackground of the new employee

2.4 Role of Recruitment and Selection in Organization

Staffing is one basic function of management All managers have responsibility of staffingfunction by selecting the chief executive and even the foremen and supervisors have astaffing responsibility when they select the rank and file employees However, thepersonnel manager and his personnel department are mainly concerned with the staffingfunction Every organization needs to look after recruitment and selection in the initialperiod and thereafter as and when additional manpower is required due to expansion andthe development of business activities

Recruitment plays an important role in creating workforce for organizations Recruitingensure the right number of employees at the right position in right time Recruitment is apositive function in which publicity is given to the job available in the organization andinterested candidates are encouraged to summit applications for the purpose of selection.Recruitment represents the first contact that an organization makes with candidates.Recruiting people who are wrong for the organization can lead to increased labor turnover,increased costs for the organization, and lowering of morale in the existing workforce.Such people are likely to be discontented, unlikely to give of their best, and end up leavingvoluntarily or involuntarily when their unsuitability becomes evident They will not offerthe flexibility and commitment that many organizations seek Managers and supervisorswill have to spend extra time on further recruitment exercises, when what is needed in thefirst place is a systematic process to assess the role to be filled, and the type of skills andabilities needed to fill it

The role of selection in an organization’s effectiveness is crucial for at least, two reasons.First, work performance depends on individuals The best way to improve performance is

to hire people who have the competence and the willingness to work Arguing form theemployee’s viewpoint, poor or inappropriate choice can be demoralizing to the individual concerned (who finds himself or herself in the wrong job) and demotivating to the rest of thework-force Effective selection, therefore, assumes greater relevance Second, cost incurred

in recruiting and hiring personnel speaks volumes about the role of selection Here is one instance to prove how expensive recruitment has become Finally, the short-listed persons were flown in and interviewed

2.5 Relationship between Recruitment & Selection and HRM functions in organization

2.5.1 Recruitment & Selection and HR planning

HR Planning is a process of deciding what positions the organization will have to fill, andhow to fill them In practice , HR planning is concerned with the demand and supply oflabor and problems arising from the process of reconciling these factors Plans anddecisions of any system follow the analyses of demand and supply Recruitment &Selection is reality of HR Planning Base on HR Planning, the organization determines theneed for employees in each term If there is any shortage of employees, recruiting andselecting will be conducted HR planning and recruitment & selection are almost cannotseparated

2.5.2 Recruitment & Selection and Performance evaluations

Performance evaluations can be used to evaluate the recruitment & selection Theeffectiveness of these functions can be partially be measured by comparing employees’performance appraisals with their test scores as job applicants If the recruitment &selection chose the high qualified employees, commonly their performances will be better

2.5.3 Recruitment & Selection and Compensation & Benefits

Recruiting employees with high qualifications lead to better wage level, goodcompensation and high benefits Their talents are worth an appropriate reward Therefore,

to let them accept the job, organizations have to offer attractive compensations andbenefits On the other hand, a good compensation and benefit policy announced in jobadvertising will attract applicants to apply to organization

2.5.4 Recruitment & Selection and Training & development

Organization that employs high qualified people will save time and cost for training anddevelopment Because they have enough qualifies to meet the job requirements, theyquickly get acquainted with the work and need less development program to enhance theirabilities Besides, if organization has appropriate training and development program,recruitment & selection will be easier because new employees will be trained anddeveloped to get higher level On the other hand, if employees are trained carefully, theywill meet the requirements of the job, turnover will be reduced and recruitment & selectionwill not be conducted regularly

2.5.5 Recruitment & Selection and Employee relations

With recruiting and selecting suitable employees for suitable positions, they will desire todistribute much for organization and their spirit will high Organization will get highersatisfaction from its employees Employee relations become more simply and higher meet

employees’ expectations On the other hand, if an organization has a good employeerelations policy, more applicants want to apply for a position Its image whereby will beenhanced

2.6 Factors affecting Recruitment and Selection

2.6.1 Factors affecting Recruitment

The recruitment function of the organizations is affected and governed by a mix of variousinternal and external forces The internal forces or factors are the factors that can becontrolled by the organization And the external factors are those factors which cannot becontrolled by the organization The internal and external forces affecting recruitmentfunction of an organization are:

 Human resource planning: Effective human resource planning helps in determiningthe gaps present in the existing manpower of the organization It also helps indetermining the number of employees to be recruited and what qualification theymust possess

 Size of the organization: The size of the firm is an important factor in recruitmentprocess If the organization is planning to increase its operations and expand itsbusiness, it will think of hiring more personnel, which will handle its operations

 Cost: Recruitment incur cost to the employer, therefore, organizations try toemploy that source of recruitment which will bear a lower cost of recruitment tothe organization for each candidate

 Growth and expansion: Organization will employ or think of employing morepersonnel if it is expanding operations.

programs

 Labor market: Employment conditions in the communities where the organization

is located will influence the recruiting efforts of the organization If there is surplus

of manpower at the time of recruitment, even informal attempts at the time ofrecruiting like notice boards display of the requisition or announcement in themeeting etc will attract more than enough applicants

 Image / Goodwill: Image of the employer can work as a potential constraint for

recruitment An organization with positive image and goodwill as an employerfinds it easier to attract and retain employees than an organization with negativeimage Image of a company is based on what organization does and affected byindustry

 Political – Social – Legal environment: Various government regulations prohibitingdiscrimination in hiring and employment have direct impact on recruitmentpractices Also, trade unions play important role in recruitment This restrictsmanagement freedom to select those individuals who it believes would be the bestperformers If the candidate can’t meet criteria stipulated by the union but unionregulations can restrict recruitment sources

 Unemployment rate: One of the factors that influence the availability of applicants

is the growth of the economy (whether economy is growing or not and its rate).When the company is not creating new jobs, there is often oversupply of qualifiedlabor which in turn leads to unemployment

 Competitors: The recruitment policies of the competitors also affect the recruitmentfunction of the organizations To face the competition, many a times theorganizations have to change their recruitment policies according to the policiesbeing followed by the competitors

2.6.2 Factors affecting Selection

 Legal Considerations

Make sure that useful selection tools should also be legally defensible Thus, requiresextensive knowledge of the legal aspects of selection (needs lawyers)

 Speed of Decision Making

Some positions might need to be filled immediately while other can wait If speed isnecessary, there will be more danger to have legal problems

 Organizational Hierarchy

The higher the vacant position is in the hierarchy, the higher will also be the need to givecareful attention to selection (top-level executive vs clerical position)

 Types of Organization

- Private businesses are stricter because selection could affect their profitability

- Government offices are less strict, probably giving only a competitiveexamination

- Non-profit organizations (especially those with low salary levels) seek not onlythe qualifications but also the dedication to the job

- Those with probationary periods can evaluate an employee`s ability based onestablished performance (can substitute certain phases of the selectionprocess)

- Those which do not have should be more careful with the other phases ofselection

Chapter 3: THE ACTUAL SITUATION OF RECRUITMENT AND

SELECTION IN SSI - HANOI BRANCH3.1 Overview about SSI

Saigon Securities Incorporation (SSI) was established in the form of Joint Stock Companywith the license number 056679 issued in December 1999 by Department of Planning andInvestment of Ho Chi Minh City Together with BVSC and ACBS, SSI is one of threecompanies established the longest in Vietnam The company came into operation at the timewhen Vietnamese Stock market was in early years From SSI’s inception up to now, it hasbeen rated as the most prestigious companies in the market Within 10 years, SSI has achieved

a history of showing leadership, especially during times of financial crisis For the future, SSIwill continue to build on that

- Name of the enterprise: Công ty Cổ phần Chứng khoán Sài Gòn

- Name in English: Saigon Securities Incorporation

- Abbreviation name: SSI

- HQ’s Address: No 72, Nguyen Hue Str., Dist.1, Ho Chi Minh City

- Company’s logo:

- Shareholder structure and ownership ratio:

Table 3.1: Shareholder structure and ownership ratio Shareholder type Domestic Foreign Total

Special shareholder 5.34% 28.54% 33.89%

(Source: Annual Report 2010)

3.2 Overview about SSI – Hanoi Branch

Hanoi Branch was established in 2002 with license number 0113000160 issued byDepartment of Planning and Investment of Hanoi in 9 July 2002 Location: No.1C, NgoQuyen Str., Hoan Kiem Dist., Hanoi Although Head Office is in HCMC but GeneralStockholders Meeting, Board of Management and Board of Supervisors are in Hanoi Mainbusiness activities are also token place in Hanoi It is reason why Hanoi Branch plays a veryimportant role in SSI Key functional departments and most of the company's revenue are

come from Hanoi Branch (about 38% - Finance and Accounting Department) In comingyears, the company acknowledges Hanoi Branch continue to be a key branch of SSI

3.2.1 SSI – Hanoi Branch’s divisions:

SSI – Hanoi Branch’s main business divisions are: Securities Services, Asset Management,Investment Banking, Trading & Principal Investments and Research & Investment advisory

Securities Services: provides a full range of services of a leading securitiesfirm in Vietnam covering trades of equities, bonds, unit investment trusts andother equity-linked and bond-linked products We have been continuousoffering of diverse investment opportunities from listed securities, IPOs,private placement to private equity, strategic investment, M&A

Asset Management: provides investment advisory and investment productsprimarily through separately managed accounts and investment funds

Investment Banking: provides a broad range of investment banking services to

a diverse group of corporations, financial institutions, and government.Services include equity and debt capital raising, equitizatizing, IPO, listing,and advisory services based on industry expertise and an informedunderstanding of client strategies and needs

Trading and Principal Investments: facilitates client transaction and takeproprietary positions through market making in trading of and investing infixed income and equity products

Research and Investment Advisory: provides research services which are at thecore of our value proposition to institutional and individual investor clientsand an integral input to the Securities Services, Investment Banking, and AssetManagement businesses SSI Research focuses on fundamental equityresearch, economics research, and investment strategy research

3.2.2 Missions and vision of SSI – Hanoi Branch from 2010 to 2015

In short term, SSI – Hanoi Branch is going to issue and implement many policies tostandardized the business’s processes and maintain the leading position across all businessfields With deeply investment in human resources and administration systems, the Branchpromises to offer to customer variety of products, services and solutions best match themarket conditions In long term, SSI – Hanoi Branch aims to continue developing its corestrengths as consultant, broker, market makers, asset managers and co-investment institutionswith appropriate structure of revenue between customer services, securities brokerage,investment banking and fund management with revenue from self investment trading Thecombination of these models and strategies are the power and the brand of SSI

3.2.3 SSI – Hanoi Branch’s Structure:

Figure 3.1: Structure of SSI – Hanoi Branch SECTION

(Source: Human Resource Department)

3.2.4 HRD’s functions and responsibilities

- Planning: Building the human resource plan for the Branch

- Training and Developing: Holding training programs to enhance and improve employees’skill, including soft skills and knowledge Making chances and encouraging employees todevelop their abilities

INVEST MENT &

UNDER WRITIN G

BUSINE

SS DEVEL OPMEN

T &

EXTER NAL RELATI ON

RY &

CAPITA

L MANAG EMENT

VE DEPART MENT

INFORM ATIONT ECHNO LOGY

LAW

FINACIA

L &

ACCOU NTING

HUMAN RESOU RCE DEPART MENT