Recruitment and Selection activities at Agribank Vietnam – Soc Son branch

RECRUITION AND SELECTION ACTIVITIES AT VIETNAM BANK FOR AGRICULTURE RURAL DEVELOPMENT AGRIBANK VIETNAM – SOC SON BRANCH...12 2.1.. In fact, many enterprises have not been fully aware of

INTRODUCTION 1

CHAPTER 1 LITERATURE REVIEW 2

1.1 DEFINITION OF RECRUITMENT AND SELECTION 2

1.2 THE ROLE OF RECRUITING AND SELECTING EMPLOYEES 3

1.3 PLANNING FOR AND RECRUITING HUMAN RESOURCES 3

1.3.1 Personnel policies 4

1.3.2 Recruitment sources 5

1.3.3 Recruiter traits and behaviors 7

1.4 SELECTING EMPLOYEES AND PLACING THEM IN JOBS 7

1.4.1 Selection process 7

1.4.2 Job applications and résumés 8

1.4.3 Employment tests and work samples 9

1.4.4 Interviews 10

1.4.5 Selection decisions 11

CHAPTER2 RECRUITION AND SELECTION ACTIVITIES AT VIETNAM BANK FOR AGRICULTURE RURAL DEVELOPMENT (AGRIBANK VIETNAM) – SOC SON BRANCH 12

2.1 GENERALS OF AGRIBANK VIETNAM 12

2.1.1 Agribank Vietnam 12

2.1.2 Soc Son branch 13

2.2 RECRUITING AND SELECTING EMPLOYEES AT AGRIBANK SOC SON 14

2.2.1 Organisation chart 14

2.2.2 Job description 19

2.2.3 Recruitment policies 20

2.2.4 Recruitment process 21

2.2.5 Selection methods 23

2.2.6 Labor contract 24

2.3 EVALUATION OF RECRUITMENT AND SELECTION ACTITIVITIES AT AGRIBANK SOC SON 24

2.3.1 Strengths 24

2.3.2 Weakneeses 25

CHAPTER 3 RECOMMENDATIONS TO IMPROVE RECRUITMENT AND SELECTION ACTIVITIES AT AGRIBANK SOC SON 26

3.1 DEVELOPMENT PLAN OF AGRIBANK SOC SON 26

3.1.1 Business plan 26

3.1.2 Human resource management plan 27

3.2 RECOMMENDATIONS PROPOSED TO AGRIBANK SOC SON 28

3.2.1 Pushing up computing training program for officers and employees 28

3.2.2 Concretizing job description 28

3.2.3 Diversifying recruitment sources 29

3.2.4 Diversifying ways of advertising recruitment information 30

3.2.5 Improving selection methods 30

3.2.6 Innovating selection criteria 32

3.2.7 Evaluating recruitment results 32

CONCLUSION 34

REFERENCES 35

FIGURE 1.1 HUMAN RESOURCE MANAGEMENT PRACTICES 4

FIGURE 1.2 HUMAN RESOURCE PLANNING 5

FIGURE 1.3 THREE ASPECTS OF RECRUITING 6

FIGURE 1.4 SELECTION PROCESS 10

FIGURE 2.1 ORGANISATION STRUCTURE 17

FIGURE 2.2 JOB ANALYSIS 21

TABLE 2.1 REPORT IN JUNE, 2014 16

TABLE 2.2 REPORT OF THE NUMBER AND QUALITY OF STAFF IN FIRST SIX MONTHS OF 2014 – SOC SON BRANCH 19

Table 2.3 Recruitment criteria 22

Human resource always plays an important role in operating any organization Anorganization can only function effectively when its employees perform well theirjob, constantly develop their ability to work and try their best for the overalldevelopment of the company To have a high quality workforce, the organizationmust ensure the implementation of good human resource management, strategyincluding from reasonable recruitment, work assignment, performance evaluationand remuneration policies

One of the most important functions of human resource management is recruitmentand selection activities which decide the quality of the staff and the company’sbusiness performance Through recruitment, managers can find out the rightcandidates for the right position To improve the efficiency of business operation,the company need establishing and implementing appropriate recruitment andselection policies

In fact, many enterprises have not been fully aware of the important role of humanresource as well as recruitment and selection activities which lead to lack ofeffectiveness and efficiency in human resource management Therefore, during my

internship, I decided to choose the topic: “Recruitment and Selection activities at

Agribank Vietnam – Soc Son branch” for this report.

The report will be divided into three parts:

CHAPTER 1 LITERATURE REVIEW

CHAPTER 2 RECRUITMENT AND SELECTION ACTIVITIES AT

AGRIBANK VIETNAM – SOC SON BRANCH

CHAPTER 3 RECOMMENDATIONS TO IMPROVE RECRUITMENT AND

SELECTION ACTIVITIES AT AGRIBANK SOC SON

CHAPTER 1 LITERATURE REVIEW 1.1 Definition of recruitment and selection

Human resources is the set of individuals who make up the workforce of

an organization, business sector, or economy "Human capital” is sometimes usedsynonymously with human resources, although human capital typically refers to amore narrow view (Source: Fundamentals of human resource management /Raymond A Noe [et al.].—4th ed.)

The challenges faced by Domino’s are important dimensions of human resource

management (HRM), the policies, practices, and systems that influence

employees’ behavior, attitudes, and performance Figure 1.1 emphasizes that thereare several important HRM practices that should support the organization’s businessstrategy: analyzing work and designing jobs, determining how many employeeswith specific knowledge and skills are needed (human resource planning), attractingpotential employees (recruiting), choosing employees (selection), teachingemployees how to perform their jobs and preparing them for the future (training anddevelopment), evaluating their performance (performance management), rewardingemployees (compensation), and creating a positive work environment (employeerelations)

Figure 1.1 Human resource management practices

Source: Fundamentals of human resource management / Raymond A. Noe . . . [et al.].—4th ed, p. 39

One of the most important steps in HRM is recruiting and selecting employees

Recruiting consists of any practice or activity carried on by the organization with

the primary purpose of identifying and attracting potential employees And through

personnel selection, organizations make decisions about who will or will not be

allowed to join the organization

1.2 The role of recruiting and selecting employees

The role of human resource recruitment is to build a supply of potential new hiresthat the organization can draw on if the need arises In human resourcemanagement, After that, Selection begins with the candidates identified throughrecruitment and attempts to reduce their number to the individuals best qualified toperform the available jobs At the end of the process, the selected individuals areplaced in jobs with the organization

1.3 Planning for and recruiting human resources

Figure 1.2 Human resource planning

Source: Fundamentals of human resource management / Raymond A. Noe . . . [et al.].—4th ed, p.162

The first step in human resource planning is forecasting The primary goal isto

predict which areas of the organization will experience labor shortages or surpluses.The second step in human resource planning is goal setting and strategic planning.The purpose of setting specific numerical goals is to focus attention on the problemand provide a basis for measuring the organization’s success in addressing laborshortages and surpluses The goals should come directly from the analysis of laborsupply and demand For whatever HR strategies are selected, the final stage of

human resource planning involves implementing the strategies and evaluating theoutcomes When implementing the HR strategy, the organization must hold someindividual accountable for achieving the goals That person also must have theauthority and resources needed to accomplish those goals It is also important thatthis person issue regular progress reports, so the organization can be sure that allactivities occur on schedule and that the early results are as expected.

1.3.1 Personnel policies

Figure 1.3 Three aspects of recruiting

Source: Fundamentals of human resource management / Raymond A. Noe . . . [et al.].—4th ed, p. 174

A company’s personnel policies are its decisions about how it will carry out human

resource management, including how it will fill job vacancies Several personnelpolicies are espe- cially relevant to recruitment:

• Internal versus external recruiting—Organizations with policies to “promote

from within” try to fill upper-level vacancies by recruiting candidates internally

• Lead-the-market pay strategies—Pay is an important job characteristic for almost

all applicants

• Employment-at-will policies—Within the laws of the state where they are

operating, employers have latitude to set polices about their rights in an

employment relation- ship.

• Image advertising—Besides advertising specific job openings, organizations may

advertise themselves as a good place to work in general Advertising designed to

create a generally favorable impression of the organization is called image advertising

1.3.2 Recruitment sources

Internal Sources

As we discussed with regard to personnel policies, an organization may emphasizeinternal or external sources of job applicants Internal sources are employees whocurrently hold other positions in the organization Organizations recruit existing

employees through job posting, or communicating information about the vacancy

on company bulletin boards, in employee publications, on corporate intranets, andanywhere else the organization communicates with employees

External Sources

Despite the advantages of internal recruitment, organizations often have goodreasons to recruit externally.37 For entry-level positions and perhaps for specializedupper-level positions, the organization has no internal recruits from which to draw.Also, bringing in outsiders may expose the organization to new ideas or new ways

of doing business An organization that uses only internal recruitment can wind upwith a workforce whose members all think alike and therefore may be poorly suited

to innovation

 Direct Applicants and Referrals

Even without a formal effort to reach job applicants, an organization may hear from

candidates through direct applicants and referrals Direct applicants are people who apply for a vacancy without prompting from the organization Referrals are

people who apply because someone in the organization prompted them to do so

 Advertisements in Newspapers and Magazines

Open almost any newspaper or magazine and you can find advertisements of jobopenings These ads typically generate a less desirable group of applicants thandirect applications or referrals, and do so at greater expense However, fewemployers can fill all their vacancies purely through direct applications andreferrals, so they usually need to advertise An employer can take many steps toincrease the effectiveness of recruitment through advertising.

 Electronic Recruiting

In recent years, employers have shifted using their spending on job advertisementsaway from print ads to online job advertising or a combination of the two A recentsurvey by the Conference Board found that the number of online job ads rose by 24percent over the previous year Online recruiting generally involves posting careerinformation at company Web sites to address people who are interested in theparticular company and posting paid advertisements at career services to attractpeople who are searching for jobs Company’s are also visiting network sites such

as Linked In and Facebook to find job candidates

 Public Employment Agencies

Employers can register their job vacancies with their local state employment office,and the agency will try to find someone suitable, using its computerized inventory

of local unemployed individuals The agency refers candidates to the employer at nocharge The organization can interview or test them to see if they are suitable for itsvacancies Besides offering access to job candidates at low cost, public employmentagencies can be a useful resource for meeting certain diversity objectives

 Private Employment Agencies

In contrast to public employment agencies, which primarily serve the blue-collarlabor market, private employment agencies provide much the same service for thewhite- collar labor market Workers interested in finding a job can sign up with aprivate employment agency whether or not they are currently unemployed

 Colleges and Universities

Most colleges and universities have placement services that seek to help theirgraduates obtain employment On-campus interviewing is the most importantsource of recruits for entry- level professional and managerial vacancies

1.3.3 Recruiter traits and behaviors

Characteristics of the Recruiter

Most organizations must choose whether their recruiters are specialists in humanresources or are experts at particular jobs (that is, those who currently hold the samekinds of jobs or supervise people who hold the jobs)

In general, applicants respond positively to recruiters whom they perceive as warmand informative “Warm” means the recruiter seems to care about the applicant and

to be enthusiastic about the applicant’s potential to contribute to the organization

“Informative” means the recruiter provides the kind of information the applicant isseeking

Behavior of the Recruiter

Recruiters affect results not only by providing plenty of information, but byproviding the right kind of information Perhaps the most-researched aspect ofrecruiting is the level of realism in the recruiter’s message Because the recruiter’sjob is to attract candidates, recruiters may feel pressure to exaggerate the positivequalities of the vacancy and to downplay its negative qualities Applicants arehighly sensitive to negative information The highest-quality applicants may be lesswilling to pursue jobs when this type of information comes out

1.4 Selecting employees and placing them in jobs

1.4.1 Selection process

The process of selecting employees varies considerably from organization toorganization and from job to job At most organizations, however, selection includesthe steps illustrated in Figure 1.3 First, a human resource professional reviews theapplications received to see which meet the basic requirements of the job Forcandidates who meet the basic requirements, the organization administers tests andreviews work samples to rate the candidates’ abilities Those with the best abilitiesare invited to the organi- zation for one or more interviews Often, supervisors andteam members are involved in this stage of the process By this point, the decision

makers are beginning to form opinions about which candidates are most desirable.For the top few candidates, the organization should check references and conductbackground checks to verify that the organization’s information is correct Thensupervisors, teams, and other decision makers select a person to receive a job offer.

Figure 1.4 Selection process

Source: Fundamentals of human resource management / Raymond A Noe [etal.].—4th ed, p.195

1.4.2 Job applications and résumés

Nearly all employers gather background information on applicants at the beginning

of the selection process The usual ways of gathering background information are

by asking applicants to fill out application forms and provide résumés.Organizations also verify the information by checking references and conductingbackground checks

Application Forms

Asking each applicant to fill out an employment application is a low-cost way togather basic data from many applicants It also ensures that the organization has cer-tain standard categories of information, such as mailing address and employmenthis- tory, from each Figure 6.3 is an example of an application form

Employers can buy general-purpose application forms from an office supply store,

or they can create their own forms to meet unique needs Either way, employmentapplications include areas for applicants to provide several types of information:

• Contact information—The applicant’s name, address, phone number, and

• Applicant’s signature—Signature following a statement that the applicant has

pro- vided true and complete information

Résumés

The usual way that applicants introduce themselves to a potential employer is tosubmit a résumé As with employment applications, an HR staff member reviewsthe résumés to identify candidates meeting such basic requirements as educationalbackground, related work per- formed, and types of equipment the person has used

1.4.3 Employment tests and work samples

When the organization has identified candidates whose applications or résumésindicate they meet basic requirements, the organization continues the selectionprocess with this narrower pool of candidates Often, the next step is to gatherobjective data through one or more employment tests These tests fall into twobroad categories:

1 Aptitude tests assess how well a person can learn or acquire skills and

abil-ities

2 Achievement tests measure a person’s existing knowledge and skills For

example, government agencies conduct civil service examinations to seewhether applicants are qualified to perform certain jobs

Before using any test, organizations should investigate the test’s validity andreliability Besides asking the testing service to provide this information, it iswise to consult more impartial sources of information

In some situations, employers may also want to know about candidates’personalities For example, one way that psychologists think about personality

is in terms of the “Big Five” traits: extroversion, adjustment, agreeableness,conscientiousness, and inquisitiveness There is evidence that people who scorehigh on conscientiousness tend to excel at work, especially when they also havehigh cognitive ability For people-related jobs like sales and management,extroversion and agreeableness also seem to be associated with success.28Strong social skills help conscientious people ensure that they get positiverecognition for their hard work

1.4.4 Interviews

Interviewing Techniques

Interview techniques include choices about the type of questions to ask and thenumber of people who conduct the interview Several question types are possible:

 In a nondirective interview, the interviewer has great discretion in choosing

questions The candidate’s reply to one question may suggest other questions

to ask Nondirective interviews typically include open-ended questions aboutthe candidate’s strengths, weaknesses, career goals, and work experience

• A structured interview establishes a set of questions for the interviewer to

ask Ideally, the questions are related to job requirements and cover relevantknowledge, skills, and experiences The interviewer is supposed to avoidasking questions that are not on the list

• A situational interview is a structured interview in which the interviewer

describes a situation likely to arise on the job and asks the candidate what he

or she would do in that situation This type of interview may have highvalidity in predicting job performance

• A behavior description interview (BDI) is a situational interview in which

the interviewer asks the candidate to describe how he or she handled a type

of situation in the past Questions about candidates’ actual experiences tend

to have the highest validity

1.4.5 Selection decisions

How Organizations Select Employees

The usual process for arriving at a selection decision is to gradually narrow the pool

of candidates for each job This approach, called the multiple-hurdle model, is

based on a process such as the one shown earlier in Figure 1.3 Each stage of theprocess is a hurdle, and candidates who overcome a hurdle continue to the nextstage of the process For example, the organization reviews applications and/orrésumés of all can- didates, conducts some tests on those who meet minimumrequirements, conducts ini- tial interviews with those who had the highest testscores, follows up with additional interviews or testing, and then selects a candidatefrom the few who survived this pro- cess Another, more expensive alternative is totake most applicants through all steps of the process and then to review all thescores to find the most desirable candidates With this alternative, decision makers

may use a compensatory model, in which a very high score on one type of

assessment can make up for a low score on another

Communicating the Decision

The human resource department is often responsible for notifying applicants aboutthe results of the selection process When a candidate has been selected, theorganiza- tion should communicate the offer to the candidate The offer shouldinclude the job responsibilities, work schedule, rate of pay, starting date, and otherrelevant details If placement in a job requires that the applicant pass a physicalexamination, the offer should state that contingency The person communicating theoffer should also indicate a date by which the candidate should reply with anacceptance or rejection of the offer For some jobs, such as management andprofessional positions, the candi- date and organization may negotiate pay, benefits,and work arrangements before they arrive at a final employment agreement

CHAPTER2 RECRUITION AND SELECTION ACTIVITIES AT VIETNAM BANK FOR AGRICULTURE RURAL DEVELOPMENT (AGRIBANK

VIETNAM) – SOC SON BRANCH 2.1 Generals of Agribank Vietnam

2.1.1 Agribank Vietnam

In 1988, the Agricultural Development Bank of Vietnam was established by Decree

No 53/HDBT dated 26 March, 1988 of the Council of Ministers (now theGovernment) with the reform of the financial system and the introduction ofcommercial banks in Vietnam

The Agricultural Development Bank of Vietnam was created out of the State Bank

of Vietnam (SBV): from all provincial branches of SBV, Agriculture CreditDivision, funds at different provincial/district branches of SBV; specifically,Agribank was formerly the Agriculture Credit Department of SBV with personnelfrom Commercial Credit Department, Bank for Investment and Construction,Department of Accounting, and a number of functional units

In the context of the world economy and Vietnam in particular facing manydificulties in the economic crisis, Agribank remains sustainable development

Agribank had the total assets of VND 617,859 billion (approximately 20%GDP), rised by 10% compared with 2011 As the biggest commercial bank inVietnam in terms of fund resources, assets, and the bad debts is controled In 2012,Agribank win the title such as: Top 10 biggest enterprises in Vietnam – VNR500;Top Asean Enterprise, Top brand name of Asean; Top Bank for Payment; Top Banks

of Vietnam In 2013, Agribank held the 25 year universal (March 26, 1988 – March

26, 2013)

Agribank is the largest bank in Viet Nam in terms of capital, assets, workforce,operating network and customer base As of October 2013, the leading role ofAgribank has been confirmed by:

+ Total asset: VND 671,846 billion

+ Total fund resource: VND 593,648 billion

+ Equity: VND 29,605 billion

+ Total outstanding loans: VND 523,088 billion

+ Operating network: 2,400 branches and transaction offices nationwide

+ Personnel: 40,000 staffs

Agribank has always focused on the innovation and application of bankingtechnology in favour of business administration and the development of anadvanced banking services network Agribank is the first bank to accomplish theProject “Intra Payment and Customer Accounting System” (IPCAS) funded by theWorld Bank The finalised IPCAS has enabled Agribank to provide local andforeign customers with modern banking products and services with extensive safetyand accuracy At present, Agribank is serving millions of households andenterprises

Agribank is the biggest commercial bank in VietNam with an operating network of2,300 branches and transaction offices nationwide which have been connectedonline In 2010, Agribank has extended the network by opening its first branch inthe Kingdom of Cambodia

2.1.2 Soc Son branch

Vietnam Bank for agriculture rural development (Agribank Vietnam), Soc Sơnbranch was born according to Decree No.51/QĐ-NH dated 27/06/1988 by GeneralDirector of State Bank of Vietnam ( now Governor of State Bank of Vietnam), withinitial name Soc Son Bank for agricultural development which is directly underHanoi Bank for agricultural development In 1990, it was renamed AgriculturalBank of Soc Son In 1996, it was officially renamed Vietnam Bank for agriculturerural development – Soc Son branch

On the very first days, Soc Son branch had to deal with many challenges: the largenumber of employees – up to 107 but only 7 members had university degrees Atthat time, Soc Son was considered a poor district with poor facilities, weak businessnetwork, which led to the difficulties for currency trading activities By the end of

1988, the operation results of branch achieved: total capital was 1,623 million,debit balance was 1.593 million, 85 million overdue loans for 5.3% of the totaldebit balance In this situation, the bank continued to push up the business operation

in conformity with innovative ways that the Party and State selected Soc Sonbranch has solved prolems step by step to be “a mature child” of Agribank Vietnam.The officers and staff at branch always try to innovate working methods to

overcome difficulties, especially in period of economic crisis The latest report ofAgribank Soc Son on business results in first six months of 2014 following: (Unit:Million VND)

Table 2.1 Report in June, 2014

(4)=(3)/(2)Total capital 2,897,490 3,091,402 6,7%

Domestic currency 2,836,373 3,028,357 6,8%

Outstandings loans 1,182,460 1,197,578 1,3%

Outstandings bad debt 36,936 161,205 436,4%

Source: Accounting department – Agribank Soc SonAccording to the figures in the table above, we can easily realize that theoutstanding bad debts of 2014 has experienced a remarkable increase The ratioshows 436,4% This figure indicates that there are some problems with audittingand setting price on quality of borrowers These problems can reduce theeffectiveness of currency activities of Agribank Soc Son Increasing outstanding baddebts means increasing allowance for bad debts which leads to decrease in cashflow

2.2 Recruiting and Selecting employees at Agribank Soc Son

All the recruiting and selecting activities comply with Decree LĐTL dated 28/02/2007 issued by Board of Directors of VIETNAM BANK FORAGRICULTURE RURAL DEVELOPMENT (AGRIBANK VIETNAM)

Source: Human resource department – Agribank Soc Son

Job description of each department

+ Manage information of development plan, plan implementation;

+ Responsible for risk management in caplital;

+ Other tasks assigned by General manager

 Accounting department:

+ Prepares and updates the accounting plan, the balance sheet and thestatements of the Bank; draws up the Bank’s annual budget and follows itsimplementation;

+ Keeps the books as prescribed by law, follows the smooth functioning of the accounting system and makes the necessary arrangements thereof;

+ Repares the reports of extra budgetary funds;

+ Is responsible for the fulfillment of the financial obligations of the Bank;+ Keeps, follows and controls the accounting records of foreign exchange transactions of the Head Office;

+ Gives instructions to the branch offices and to the banks on the related matters

 Foreign exchange department:

+ Purchase and selling all kinds of foreign exchange and banknotes pursuant

to the Law on the Protection of the Value of the Vietnamese Currency;