Human resource Executive

Executive summary

The report shows general understanding about operation and performance of HR functions in

Phuong Nam Corporation, This report will analyze their existing issues and suggest some

recommendations for corporation.

Phuong Name Corporation is established in 1982. Their business focuses on stationary,

bookstore, film and printing as well as to provide service for Vietnamese in education field

and environment field. Phuong Nam has opened 6 branches which are located in Hanoi, Hue,

HCMC and Danang, around 20 major distribution centers through Vietnam.

Team has conducted interview with Mr. Tu, an employee in HR department to gain overall

understanding about HR functions of Phuong Nam. HR department of Phuong Name has

twenty people which perform sevens process of HR functions. This report will focus on four

functions including planning, recruitment, performance management and development and

training.

The first function being analyzed is planning. In planning function, HR team is responsible to

conclude the correct amount of employee needed for corporation. The process is including

collecting information of other department and analyzing the external environment.

The next function is recruitment. There are four steps in recruitment which are recruitment

requisition, position analysis, position evaluation and sourcing. Phuong Name’s recruitment

aims to recruit a number of qualified candidates from internal and external sources.

In performance management function, evaluation of performance is applied by Performance

Appraisal Management at the end of midyear. The purpose is to evaluate feasibility about

Phuong Nam’s agents. Two methods are used as Behaviorally Anchored Rating Scate and

self-feedback of manager.

Development and training is analyzed finally. HR department will combine the business

strategy with used of learning to enhance the competences of individual to archive

corporation goals. The process is beginning from analyze the requirements from others

department to hold training programs

There are five issues with four HR function. At planning stage, there are mismatch between

required skills and applicant’s skills and situation of growing unemployment in labour

market. Recruitment faces issue of policy of focusing on internal way which leads to limited

candidates. The other issue is high spending in time and cost which caused by outnumber of

applicants and overstatement in competences of applicant. For performance management,

bias and bureaucratic from manager in self-evaluation and dishonesty from self-ability of

employee caused incorrectness about their real performance. Low credibility of performance

system causes challenge for recruitment decision. Because of change in using new

equipment and technology in Phuong Nam, HR department has to consider seriously training

program in type and content to fix organization goal.

This report will give some recommendation related to each issue to assist HR department of

Phuong Nam.

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Table Contents

I. Introduction________________________________________________________________3

1. Company profile:___________________________________________________________3

2) Phuong Nam organization chart:______________________________________________4

3) The HR department chart:___________________________________________________4

II. Four HR functions_________________________________________________________5

1. Human Resource Planning:__________________________________________________5

a) Definition:______________________________________________________________________________5

b) Process:________________________________________________________________________________5

c) Issue:__________________________________________________________________________________6

d) Recommendation:________________________________________________________________________6

2. Human Resource Recruitment________________________________________________7

a) Definition:_____________________________________________________________________________7

b) Process:_______________________________________________________________________________7

c) Issues:________________________________________________________________________________8

d) Recommendations:_______________________________________________________________________9

3. Human Resource Performance Management:____________________________________9

a) Definition:______________________________________________________________________________9

b) Process:_______________________________________________________________________________10

c) Issue:_________________________________________________________________________________11

d) Recommendations:______________________________________________________________________11

4. Human Resource Development and Training:___________________________________12

a) Definition:____________________________________________________________________________12

b) Process:______________________________________________________________________________12

c) Issue:_________________________________________________________________________________13

d) Recommendation_______________________________________________________________________13

III. Conclusion:______________________________________________________________15

IV. Reference:_______________________________________________________________16

V. Appendix:_________________________________________________________________17

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I. Introduction

1. Company profile:

Phuong Nam Corporation is a national organization

which is establish in 1982. Phuong Nam

organization had built 6 branches which located in

key region Hanoi, Hue, HCMC and Danang, and

they also opened around 20 major distribution

centers on Vietnam. Phuong Nam’s business

includes stationary, bookstore, film and printing in

order to provide the best service for Vietnamese in education field and environment field

(Phuong Nam 2013).

Human Resource department is as the most important group of Phuong Nam organization

because it helps the company to catch up the business’s objective. For more detailed about

information of HR department, our team had interviewed Mr Nam Tu – the subsidiary of

Phuong Nam’s Bookstore in district 11. This distribution provides all of education items to

their client. The distribution has about 200 employees while HR department has 6

professionals including manager, subsidiary and peers. HR department is divided into 4 main

functions such as planning, recruitment, performance management and training. The key

performance indicator (KPI) of Phuong Nam Corporation includes:

Recruitment cost per employees

Number of training hours per employees

The percentage of low performing employees (and for high performing)

Health safety cost per year.

The purpose of this report will describe four main framework of HR department of Phuong

Nam Company including planning, recruitment, performance management and training.

Besides that, we will outline an issue that could happen in HR department and give some

recommendations for these problems.

3

2) Phuong Nam organization chart:

3) The HR department chart:

There are 6 employers in HR department of Phuong Nam bookstore in district 11

Finger 2: Adapted from Mr. Tu (2013)

4

CEO and

Board

Of Director

CEO and

Board

Of Director

Phuong Nam

Bookstore

Phuong Nam

Bookstore

HR

Department

HR

Department

Financial

Department

Financial

Department

Sale

Department

Sale

Department

IT

Department

IT

Department

HR

Recruitment

HR

Recruitment

HR

Performance

HR

Performance

HR

Training

HR

Training

HR

Planning

HR

Planning

Purchase and

Sale online

Purchase and

Sale online

Sale

Person

Sale

Person

Marke“ng

Department

Marke”ng

Department

Produc”on

Promo”on

Finger 1: Adapted from Phuong Nam Company (2013)

HR

Manager

Subsidiary

Supervisor

HR

Execu”ve

Training and

Developer

HR

Recruiter

II. Four HR functions

1. Human Resource Planning:

a) Definition:

Planning is the essence a process of ensuring that the correct numbers and kind of human

resources were available at the right time at the right place. It is ability of effectively and

efficiently missions that will help the organization achieve the long term objectives (Parker

Brain 1996).

b) Process:

This is a process of HR planning in Phuong Nam Corporation. When other departments

require CEO to hire more employees, then CEO and Board of Director not only consider to

the company’s objectives for expanding the business. They also work with financial

department in order to know the limitation budget of company to recruit workers. Then, HR

department has translated the organization’s goal and plans into how many employees needed

to meet these objectives. Firstly, HR manager does the internal analysis the human resource

in company. Secondly, HR department continue to analysis workforce supply outside the

company in order to fill the right employees at the right position (Mr Tu 2013).

Finger 3: Adapted from Mr. Tu (2013)

5

Other

Departments

Other

Departments

Financial

Organiza”on

Objec”ve

Organiza”on

Objec”ve

CEO and Board

Of Director

CEO and Board

Of Director

HR

Department

HR

Department

Internal

External

Applicants

c) Issue:

As a large organization, many companies including Phuong Nam Company are influenced by

environment force such as globalization, new technologies, the economic conditions and

changing work force (Mr. Tu 2013). All of these factors are environmental uncertainly in

which the new technologies and changing work force are very important so that HR

department has to deal with difficult mission in order to balance the labour demand and

labour surplus for company. The most difficult impact of environment force is a mismatch

between applicant skills and skilled required in the workplace.

“Because there is more demand in the organization than there is in available talent in the job

market and the organization’s recruiting strategies aren’t attracting the right talent.

Therefore, it is not able to fill positions that are critical to achieving operational goals leaves

the organization in a weak business position” (Adura Bianca)

Phuong Nam is known as a developing organization very fast and, their strategies are

expanding their business into the market share so that they need a lot of talent employer.

However, the Vietnamese human resource has a rapidly increase in recent years but the skill

labour is also very low. It leads to the growth up of unemployment rate because workers

cannot adapt to the skill required of company, according to Mrs. Mai (2013), the number of

unemployment in Vietnam is significantly increase up to 11.45%. This is the most difficult

problem that HR department has to solve to find out talent and right employees for company.

d) Recommendation:

HR department should do more than one technique for forecasting human resource. First

technique is a HR demand forecast because it provides the quality and quantity of people

required. In addition, HR department also need to consider some internal factors such as

budget constraint, organizational structure and services. The second thing is HR supply

forecast in which it supports the number and kind of employees in the future. After analysis

these factor, HR department should balance HR demand and HR supply to make a plan for

short term and long term strategies (Narimal Kasim 2012)

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2. Human Resource Recruitment

a) Definition:

According to Nankervis at al 2011, ‘recruitment is the process of attempting to locate and

attract a pool of suitably qualified and experienced people to apply for existing or anticipated

positions within an organization.’

b) Process:

Applicants

Finance IT Sale

Recruitment

Agents