TABLE OF CONTENT

EXECUTIVE SUMMARY.......................................................................................8

1. INTRODUCTION ......................................................................................... 9

2. GENERAL COMPANY INFORMATION OF HOA SEN GROUP ..................... 10

2.1. Basic information: ...........................................................................................................10

2.2. History of development: .................................................................................................11

2.3. Company’s vision and mission: .......................................................................................12

2.4. Purpose and core business objectives: ............................................................................12

2.4.1 Purposes: ...................................................................................................................12

2.4.2 Core business objectives: ...........................................................................................13

3. THE PURPOSE OF THE HR FUNCTION ...................................................... 13

3.1 The HRM functions ................................................................................................14

3.2 Key roles and responsibilities of the HRM ..............................................................16

3.2.1. Key roles of the HRM:........................................................................................16

3.2.2. Responsibilities of the HRM: .............................................................................17

4. STATUS OF HUMAN RESOURCE MANAGEMENT AT HOA SEN GROUP ... 17

4.1. Introduction on HR department at Hoa Sen Group: .....................................17

4.2. Description of major HR functions: ...............................................................18

4.3. Workforce planning of Hoa Sen Group: ........................................................19

4.4. Recruitment and Selection: ..........................................................................23

4.5. Training and Development of Hoa Sen Group: .............................................28

4.6. Performance management of Hoa Sen Group: .............................................29

4.7. Reward system of Hoa Sen Group: ...............................................................30

6
5. EVALUATION OF THE STRENGTHS AND WEAKNESSES OF THE POLICIES AT
HOA SEN GROUP ........................................................................................... 32

6. CONCLUSION ........................................................................................... 34

REFERENCES ....................................................................................................35

7
EXECUTIVE SUMMARY

As a human resource advisor at the selected company which is Hoa Sen Group, the
main task of the HR consultant is to design the company's human resources. Some of the
main functions of the human resources department are organizing the development,
implementation and control of mechanisms and policies related to the management of
human resources of the Group, Organizing the implementation of recruitment, labor,
salary, training and human resource development of the Group. Besides this, this report
will provide details on the purpose of HR and the main HR functions within the organization
with an overview of different HR practices.

This report will show some the important element as follow: mission statement,
purpose and core business objectives of Hoa Sen Group; an explanation of the purpose of
the HR function; the key roles and responsibilities of the HR function are discussed; shown
the significance that HR plays in acquiring talent to meet business objectives; workforce
planning, recruitment and selection, development and training are described, performance
management and reward systems that are proposed to apply in Hoa Sen Group; and
evaluations of the strengths and weaknesses of the policies shown in final section.

8
1. INTRODUCTION

Hoa Sen is one of the most developed steel companies in Vietnam. With the role is
employee of company’s HR consultant, I have mission to design a HR system for Hoa Sen
Group. In this report, the document will provide details on the purpose of HR and the main
HR functions within the organization with an overview of different HR practices. Moreover,
one can see this HR system that can be done the aim business for Hoa Sen Group.

This report consists of 4 main sections that are analyzed specifically: Section 1,
General introduction about Hoa Sen Group as Basic information, History of development,
company's Vision and Mission, Purpose and Core business objectives. Section 2, the
purpose of the HR functions includes the HRM function, Key roles and responsibilities of
HRM. Section 3, Status of HRM at Hoa Sen Group will show about Introduction on HR
department at Hoa Sen Group, Description of major HR function, Workforce planning of
Hoa Sen Group, Recruitment and Selection, Training and Development, Performance
management and Reward system of Hoa Sen Group. In this final section is Evaluation of the
strengths and weaknesses of the policies at Hoa Sen Group.

9
2. GENERAL COMPANY INFORMATION OF HOA SEN GROUP

General information of Hoa Sen Group will show basic information, history development,
company’s vision and mission. Besides that, this section exposes also purpose and core
business objective of Hoa Sen Group as below:

2.1. Basic information:

Name, head office, address, phone number, website address and basic information of Hoa
Sen Group are listed below:

Figure 1: General Information of Hoa Sen Group in 2018-2019

Sources: (hoasengroup.vn)

By the end of 2019, the Group has a total of 536 distribution locations nationwide,
including 55 Provincial Branches, 10 Warehouses and 471 Stores. With an extensive
distribution system from North to South, the Group continues to consolidate and promote
core competitive advantages, perfecting the supply chain. At the same time, the export
market has been expanded to 80 countries / regions, the export products are increasingly
diversified (Hoa Sen Group, 2019).
10
 Hoa Sen Group has built a governance system based on the corporate culture of 10 T-
letters: Trung Thuc - Trung thanh - Tan tuy - Tri tue - Than thien. This is an important factor
contributing to the rapid and sustainable development of Hoa Sen Group over the past 18
years (Hoa Sen Group, 2019).

Honesty: Honesty and transparency in all activities;

Community: Always sharing with the community her achievements are the very human
beauty of Hoa Sen Group that has gone into the minds of many Vietnamese people;

Development: Continuously developing, bringing the Hoa Sen brand name to new heights
(Hoa Sen Group, 2019).

2.2. History of development:

Hoa Sen Group is the no.1 company in the field of manufacturing and trading steel
sheet in Vietnam and the leading exporter of steel sheet in Southeast Asia. Founded on
August 8, 2001, over 19 years of establishment and development, Hoa Sen Group is
constantly rising its position in both domestic and international markets, affirming the
stature of a global growth company of World Economic Forum, etc. (Hoa Sen Group, 2020).

History development of Hoa Sen Joint Stock Company, precursor of Hoa Sen Group Joint
Stock Company, this company was established with an initial charter capital of USD 30
billion and 22 employees on August 2001. After that, inaugurating Hoa Sen Group
headquarters is established in 2004. Next, Hoa Sen Group Established Hoa Sen Steel Sheet
Join Stock Company with charter capital of VND 320 billion (2006), Inaugurating Hoa Sen
Cold Rolling Mill with capacity of 180,000 tons/year (1/2007), Hoa Sen Joint Stock Company
renamed to Hoa Sen Group Joint Stock Company and merged 3 companies: Hoa Sen Steel
Sheet Joint Stock Company, Hoa Sen Building Materials Joint Stock Company and Hoa Sen
Building Mechanical Joint Stock Company (12/2007). In 2008, Stocks of Hoa Sen Group
(code: HSG) were listed on Ho Chi Minh City Stock Exchange. Becoming the leading
exporter of steel sheets in Southeast Asia with export sales achieve USD 180 million. And by
October 2019, Hoa Sen Group continues to be honored for the third consecutive year in the

11
 List of 1,000 largest corporate income tax payers in Vietnam in 2018 announced by the
General Department of Taxation (Hoa Sen Group, 2019).

2.3. Company’s vision and mission:

Hoa Hen Group's vision is to become a leading economic group in building material field in
Vietnam and in the region. In the region, in which the Company sustainable development
strategy focuses on production and distribution of building materials based on the chain of
core competitiveness advantages, parallel with the goal of community development,
environmental protection, environmental protection, bringing the highest value
shareholders, employees, consumers and society (Hoa Sen Group, 2019).

Hoa Sen Group's missions:

 To provide products and services with international quality, reasonable

price, diversified and environmentally friendly designs under the Hoa Sen
brand in order to meet customers’ needs and contribute to changing the
country’s architectural landscape and developing the community (Hoa Sen
Group, 2019).
 To constantly innovate and develop to affirm the stature and mission of a
dynamic and innovative Vietnam enterprise in both business and community
activities, to reach a high position in the international market (Hoa Sen
Group, 2019).

2.4. Purpose and core business objectives:

2.4.1 Purposes:

The policy of Hoa Sen Group is to implement the upcoming medium and long-term
strategies. Specifically, HSG will continue to maximize the advantages of the distribution
system, improve the efficiency of consumption channels; exploiting well the customer
system; product diversification; increase market coverage and enhance the position and
class of Hoa Sen brand name in domestic and international market.

12
 This policy helps to achieve the business purpose of Hoa Sen Group which is to increase
the revenue and profit of Hoa Sen Group, maximize the operational efficiency and value of
the existing distribution system (Phuc, 2020).

2.4.2 Core business objectives:

Hoa Sen Group has chosen for itself the branding path based on the core business
philosophy: "Honesty - Community - Development". During 18 years of establishment and
development, in addition to focusing well on production and business activities, Hoa Sen
Group has always been a pioneer and active in practical community activities through
sponsorship programs. Various charities such as: Vietnamese Family Home, Ton Hoa Sen -
With children to go to school, Sponsor Futsal football tournament for children with special
circumstances, VTV International Bicycle Race - Ton Hoa Sen Cup, Prize VTV International
Women's Volleyball - Ton Hoa Sen Cup; Giving honor to people in flood areas, etc. (Hoa Sen
Group, 2019).

For Hoa Sen Group, product quality is also the prestige and the survival of the
brand. Through strict implementation of 4 commitments: "Selling at the right price, right
standards, right quality, warranted", Hoa Sen Group has brought to consumers products
"meeting international standards, price reasonable price, fast delivery time, good after-
sales service.” (Hoa Sen Goup, 2019).

With continuous efforts in improving the quality of products and services, Hoa Sen
Group has become a successful brand associated with core and sustainable competitive
advantages. In the past year, Hoa Sen Group has consecutively received many noble
awards such as: Second Class Labor Medal awarded by the State President; National brands
for all 3 product groups: Ton Hoa Sen, Hoa Sen Plastic Pipe and Hoa Sen Zinc Pipe; Top 50
best listed companies in Vietnam, etc. (Hoa Sen Group, 2019).

3. THE PURPOSE OF THE HR FUNCTION

Human Resource Management is the process of getting, training, assessing, and

compensating employees, and maintaining labor relations, health and safety, and fairness

13
 concerns (Tabiu & Nura, 2013; Shaukat & et al, 2015; Armstrong, 2006). In a related
fashion, “Human Resource Management is the utilization of individuals to achieve
organizational objectives” (Hayton, 2005). Managing human resources is very challenging
as compared to managing technology or capital and for its effective management, and
organization requires effective HRM system (Shaukat & et al, 2015). So it could be said here
that HRM is such a process that focuses to get the best output from employees by focusing
on the policies, practices, and systems that influence employee performance (Tabiu &
Nura, 2013).

3.1 The HRM functions

The functions of HRM hold great significance in the growth and overall development of the
organizations. After all, when the employees grow and develop their skills, the organisation
will automatically experience growth and expansion. Some of the primary functions of
HRM include job design and job analysis, recruitment/ hiring and selection, training and
development, compensation and benefits, performance management, managerial
relations and labor relations (Shalini, 2020).

 One of the foremost functions of HRM is job design and job analysis. Job design
involves the process of describing duties, responsibilities and operations of the job.
To hire the right employees based on rationality and research, it is imperative to
identify the traits of an ideal candidate who would be suitable for the job (Shalini,
2020).
 Recruitment is one of the primary functions of human resource management. HRM
aims to obtain and retain qualified and efficient employees to achieve the goals and
objectives of the company. All this starts with hiring the right employees out of the
list of applicants and favorable candidates (Shalini, 2020).
 Imparting proper training and ensuring the right development of the selected
candidates is a crucial function of HR. After all, the success of the organization
depends on how well the employees are trained for the job and what are their
growth and development opportunities within the organization (Shalini, 2020).

14
 Benefits and compensation form the major crux of the total cost expenditure of an
organization. It is a must to plug the expenses, and at the same time, it is also
necessary to pay the employees well (Shalini, 2020).
 The next activity on HR functions list is effective employee performance
management. Effective performance management ensures that the output of the
employees meets the goals and objective of the organization. Performance
management doesn’t just focus on the performance of the employee. It also focuses
on the performance of the team, the department, and the organization as a whole
(Shalini, 2020).
 Relationships in employment are normally divided into two parts — managerial
relations and labor relations. While labor relations are mainly about the relationship
between the workforce and the company, managerial relations deals with the
relationship between the various processes in an organization (Shalini, 2020).
 Cordial labor relations are essential to maintain harmonious relationships between
employees at the workplace. At the workplace, many employees work together
towards a single objective. However, individually, everyone is different from the
other in characteristics. Hence, it is natural to observe a communication gap
between two employees. If left unattended, such behaviors can spoil labor relations
in the company (Shalini, 2020).

In perhaps the most popular model of the organization of the HRM function to
emerge to date, HRM activities are structurally split into three sub-units, typically a
Shared Service Center (SSC), Centers of Expertise/Excellence (COE), and a Business
Partner (BP) unit (Reilly, Tamkin & Broughton, 2007; Boglind et al., 2011). This model –
often referred to as the three-legged stool model and widely associated with the
original work of Ulrich (1997) – identifies sub-units that differentiate administrative
execution, policy-making and strategic HRM tasks. The purpose of the stool’s three legs
is to enable the HRM function to cope effectively with the requirement for both
strategic and operational tasks, and to enable a more strategic role for HRM
practitioners (Keegan & et al, 2018).

15
 Splitting the function into three distinct sub-units should allow HRM practitioners to focus
on customer intimacy towards the business (BP Unit), quality and innovation in policy
development (COEs), and operational excellence regarding administrative and operational
tasks (SSCs). According to the model, the HRM function should be structured to ensure a
strategic role is possible by differentiating administrative tasks from strategic tasks.
Administrative tasks are often captured in SSCs which are in- or out-sourced, as well as
devolved to line managers and employees (Keegan & et al, 2018).

3.2 Key roles and responsibilities of the HRM

3.2.1. Key roles of the HRM:

HRM has 3 key roles that is Administrative, Operational and Employee Advocate,
and strategic (Armstrong, 2006).

 Administrative includes Clerical administration, recordkeeping, legal paperwork and

policy implementation; Major shifts - Use of technology and outsourcing
(Armstrong, 2006).
 The Operational and Employee Advocate roles are Cooperate with managers and
supervisors; Identify and implement needed programs and policies in the
organization (Armstrong, 2006).
 The strategic has roles to be Address business realities; Focus on future business
needs; fit between human capital and business plans and needs (Armstrong, 2006).

The role of HRM also is to attract and select qualified job applicants, to develop
performance management and compensation systems that align employee behaviors with
organizational goals, and to assist in the development and retention of a diverse work force
to meet A New Imperative for Human Resource Management 13 current and future
organizational requirements. Although a narrow, functionalist perspective of HRM served
organizations well during the industrial era, it will not serve organizations as well in the
knowledge economy. This is not to say that organizations will no longer perform traditional
HRM functional activities—they will continue to do so. However, to manage HR in the
future, HRM will also have to adopt new roles to address new challenges (Lengnick-Hall &
Lengnick-Hall, 2002).
16
 3.2.2. Responsibilities of the HRM:

Specific areas of responsibility for HRM include: job and organizational design,
recruitment and selection, performance management, compensation and benefits,
employee development and training, HR planning, labor relations, diversity management,
and compliance with legal and governmental guidelines (Huselid, 1997). In fact, to become
a certified HR professional, the Society for Human Resource Management (SHRM) requires
competency testing and job experience in all of these areas. Consequently, HRM has
evolved into a highly efficient employment bureaucracy with a clearly defined body of
knowledge and accepted practices (Lengnick-Hall & Lengnick-Hall, 2002).

4. STATUS OF HUMAN RESOURCE MANAGEMENT AT HOA SEN GROUP

4.1. Introduction on HR department at Hoa Sen Group:

Right from the first days of its establishment, Hoa Sen Group has focused on investment in
human resource management. These activities are assigned to the Internal Affairs
Department. In addition to human resource management, training and development of
human resources; Internal Affairs Department also handles logistics, ISO and
Representative office administrative activities (Hoa Sen Jobs, 2020).

Figure 2: GENERAL ASSEMBLY OF SHAREHOLDERS OF HOA SEN GROUP IN 2019

Sources: (hoasengroup.vn)
17
 The clear and specific arrangement of personnel in departments by function shows, that
the company's HR department works effectively, helping the company operate in a
seamless way. Besides, all problems will be solved quickly and improve work efficiency.

4.2. Description of major HR functions:

Internal affairs department includes the human resource management task and this
task has the following functions: Advising the Board of Directors on human resource
management matters of the Group; Developing and organize the implementation of the
Group's human resource management strategy in accordance with the Group's overall
development strategy; Organizing the development, implementation and control of
mechanisms and policies related to the management of human resources of the Group;
Organizing the implementation of recruitment, labor, salary, training and human resource
development of the Group; Building and developing cooperative relationships with
universities, colleges, and human resource training and consulting centers (Hoa Sen Group,
2019).

The Board of Directors also elected a human resource and restructuring committee
led by Mr. Tran Ngoc Chu - Standing Vice Chairman of the Board of Directors - Standing in
charge of the Committees to coordinate and handle the expertise and profession of the
Commission. This Committee has the function of researching, completing and
implementing plans for restructuring and developing human resources of the Group,
including: Strengthening the organizational structure and structure; Planning, training and
appointing management staff; Establishment of remuneration mechanisms, policies,
remuneration for the Group's employees and other restructuring plans, etc. (Hoa Sen
Group, 2019).

The purpose of the establishment of the HR department of Hoa Sen Group is to

help manage human resources effectively, attract talents for the company and develop
human resources in the company in a timely manner.

The functions of the HR department bring both strengths and weaknesses of the
company. Human resources department gives clear orientations on human resource
development, attracting talented people due to clear training and development
18
 orientations if trying to stick with the company and especially having specific plans, training
to develop the skills of employees in the most complete way. And the functions of the
human resources department aim to common objectives that are to complete all the goals
that the Group has set out. However, in the company there are overlapping functional
departments, creating risks in the process of solving work, leading to disagreements. And in
addition, these weaknesses increase the cost of paying employees.

4.3. Workforce planning of Hoa Sen Group:

Workforce planning is the strategic alignment of an organization’s human capital

with its business direction. It is a methodological process of analyzing the current
workforce, identifying future workforce needs, establishing the gap between the present
and the future, and implementing solutions so the organization can accomplish its mission,
goals, and objectives (Cotton, 2007).

Realizing the importance of workforce planning, because it has clear links between
organisation and HR plans; Better control over staffing costs and ensuring appropriate
numbers employed to meet current and future needs; Enables better judgements to be
made about the skills and attitude mix in the organisation. In these problems above, Hoa
Sen Group has implemented the workforce planning according to the following steps:

First step, Define the organization’s strategic direction: In the annual report of
Hoa Sen Group 2018-2019, the orientation of human resource development activities in
the period of 2019-2020 is raised and this orientation raises the following two issues: first,
try to improve the quality, profession, qualifications, skills and responsibilities of the
human resources, to ensure that the human resources are arranged in a streamlined,
efficient, professional manner, suitable to Hoa Sen culture. Second, Ensuring the mental
stability and working motivation of the employees, especially during the current unstable
market situation.

Second step, Scan internal and external environments: Hoa Sen Group's internal
human resource environment is very large with the number of employees of 6,637 as of
September 30, 2019. However, that number is less than impressive, with a decrease of 425
employees compared to 7.062 in 2018. The number of employees is reduced because the
19
 process of reducing employees to restructure and develop human resources of the
corporation (Hoa Sen Group, 2019).

Figure 3: CHART ON EMPLOYMENT IN HOA SEN GROUP OF THE PAST 06 FISCAL YEARS

Sources: (hoasengroup.vn)

Although the number of employees has decreased, the expertise and technique of
the employees in the group have not decreased because the qualifications structure of
employees is very diverse as the figure 4 below (Hoa Sen Group, 2019).

Figure 4: STRUCTURE BY EDUCATION AT SEPTEMBER 30, 2019

Sources: (hoasengroup.vn)

20
 Vietnam's steel and corrugated iron industry is facing major barriers in terms of
scale and internal capacity that reduce competitiveness and hold businesses back. The
weakness in both capital and human resources makes it impossible for Vietnam's steel and
corrugated iron enterprises to invest in modern technology in production. Outdated
production technology is just one of a series of problems facing the steel and corrugated
iron industry today (Trang, 2015). Besides, Hoa Sen Group is very stressful about human
resources because many competitors in this industry are very strong competitors, either at
home or abroad. Thereby, External human resources environment is very fierce
competition for many years now and the following years for businesses.

Third step, Model the current workforce: The main model the current workforce of
Hoa Sen Group is Contract workers. And sometimes the company will hire part-time job
employees when the demand for products is high. Furthermore, part-time jobs are often
applied to salespeople.

Fourth step, assessing future workforce needs and project future workforce
supply: Hoa Sen Group - the No. 1 enterprise in the field of galvanized steel sheet in
Vietnam and the leading steel sheet exporter in Southeast Asia continues to be honored in
the Top 100 Most Favorite Employers for many years, at the same time, maintaining the
leading rank in the field of Construction - Building Materials in Vietnam (Recruitment &
Training Department of Hoa Sen Group, 2020). Moreover, in the annual report for the
2018-2019 periods, personnel with business functions account for 55% (Hoa Sen Group,
2019). From there, it can be seen that the largest workforce that the company needs are
qualified and skilled employees heading to the business sector. On the current labor
market, the employment demand rate of the Business - Trade sector in 2019 is 18.16% (up
4.9% compared to 2018). And in addition to the job demand, the demand for human
resources in enterprises of the Business-Trade sector also increases with a low figure in
2019 of 23.31% (up 0.21% compared to 2018) (Manpower forecasting center of Ho Chi
Minh city, 2019). This shows that the young human resource is in danger of increasing
rapidly and leading to an excess of human resources in the market. Therefore, this is an
advantage for the corporation in recruiting personnel in an external environment.

21
 Fifth step, Identify gaps and develop gap-closing strategies: Company's human
resources are in redundancy and the functions of the parts are overlapping. Therefore, in
order to shorten the distance, the company implemented the policy of leaning, reducing
the organizational structure, the organizational structure and reducing the staff of the
whole corporation.

Sixth step, Implement gap-closing strategies: The policy of HR reduction of Hoa Sen
Group is implemented as follows:

 For management levels: Lean, rearrange the system of titles, management ranks of
the whole Group; Reducing intermediate management levels; Reset the system of scales,
payroll, policies for management at all levels according to the new situation.
 For the Group Office: Rearranging and streamlining the Regional Executive Offices
and the Functional Block level units to reduce the intermediate levels; Merging and
consolidating functional departments / boards with similar professional skills.
 Employee reduction of the whole Group: In the fiscal year 2018 - 2019, the Board
of Directors approved the total staffing ratio of the Group to a maximum of 6,800 people;
The Board of Directors directs and works to reduce the staffing staff to ensure stable
production and business activities, efficient operation of the units, and to ensure the
targets of output and quality. At the same time, it is necessary to ensure the mental
stability and working motivation of the employees of the Group.

Seventh step, Evaluate the effectiveness of gap-closing strategies: The process of

implementing the policy has been implemented seriously and quickly, completing the goal
of reducing staff on the right schedule and bringing unexpected results. This result
exceeded the plan as the Company decreased from 7,062 employees to 6,637 employees in
September 2019 (the plan is 6,800 employees).

In summary, the implementation of step-by-step and clear workforce planning

helps Hoa Sen Group easily respond to unexpected human resource situations and manage
personnel effectively. The group's streamlining policy helps optimize employee
productivity, does not disagree due to overlapping functions of departments, helps reduce

22
 the burden of salary payments for employees in the present difficult economic situation,
help the company achieve its goals quickly and with high results.

4.4. Recruitment and Selection:

Recruitment is the process of having the right person, in the right place, at the right
time and it is crucial to organizational performance. A process of finding and attracting
capable of the applicant for employment, the process begin when new recruits are sought
and end when their applications are submitted. The result is a pool of applicants from
which new employees are selected. It is the process to discover sources of manpower to
meet the requirement of staffing schedule and to employ effective measures for attracting
that manpower in adequate numbers to facilitate effective selection of an efficient working
force (Ekwoaba et al, 2015).

Before deciding to recruitment, potential options are: Reorganize the work, Use
overtime, Mechanize the work, Stagger the hours, Make the job part-time, Subcontract the
work, Use an agency worker (Armstrong, 2006).

With the core value of "Honesty - Community - Development" and the typical
culture "10 T's: Honesty - Loyalty - Dedication - Wisdom - Friendly", consider people as an
important factor to create. Therefore, the sustainable development of the Group, during
the past years, the resource development policy has always been the top priority for Hoa
Sen Group. Therefore, recruitment activities at Hoa Sen Group always follow closely and
focus on building and developing high-quality human resources to meet the production and
business process of the whole Group (Hoa Sen Group, 2019). Hoa Sen Group has adopted
two recruitment approaches that are Rational Process and Processual Approach to
Recruitment.

Rational Process: The HR Department of Hoa Sen Group uses this approach and
they post recruitment information on the Group homepage, on websites and on social
networking sites to reach a wide range of young candidates. Strengthen to expand and
develop more online Recruitment pages such as Facebook, LinkedIn, etc. Besides the
official recruitment website of the Group is https://hoasenjobs.com/. Candidate records
are expected to grow to more than 50,000. Since then, the group has expanded its source
23
of qualified and diversified candidates to meet the human resource demands of
Departments / Departments / Divisions and its subsidiaries / factories.

Process approach to recruitment has created considerable interest in employer

branding, which advocates competing for staff by borrowing techniques long used in
marketing goods and services to potential customers. As Recruitment Approach of Hoa Sen
Group does not only looking for young, dynamic and creative human resources through
participating in the program “Job festival day" at Colleges and Universities nationwide. The
Group also promotes cooperation with reputable recruitment sites and expands online
recruitment channels, in order to proactively build a database of potential candidates. In
addition to the traditional form of interviewing, the Group has organized online interviews
and assessed candidates through personality analysis, professional tests, foreign languages,
etc. From there, a team of new personnel was recruited quickly and with high quality
nationwide (Hoa Sen Group, 2019).

The Selection is the process of choosing the most suitable candidate for the vacant
position in the organization. In other words, selection means weeding out unsuitable
applicants and selecting those individuals with prerequisite qualifications and capabilities
to fill the jobs in the organization (Yaro, 2014).

The process from Recruitment to Selection of Hoa Sen Group goes through 7 steps
which are described in detail as follows:

Step 1, Recruitment planning: where the vacant positions are analyzed and described. It
includes job specifications and its nature, experience, qualifications and skills required for
the job, etc. A structured recruitment plan is mandatory to attract potential candidates
from a pool of candidates. The Recruitment Plan is detailed as below:

 Identifying Vacancy: The first and foremost process of recruitment plan is

identifying the vacancy. This process begins with receiving the requisition for recruitments
from different department of the organization to the HR Department, which contains
Number of posts to be filled, Number of positions, Duties and responsibilities to be
performed, Qualification and experience required.

24
Job analysis: Job analysis is a process of identifying, analyzing, and determining the
duties, responsibilities, skills, abilities, and work environment of a specific job. These
factors help in identifying what a job demands and what an employee must possess in
performing a job productively. The following steps are important in analyzing a job:
Recording and collecting job information; Accuracy in checking the job information;
Generating job description based on the information; Determining the skills, knowledge
and skills, which are required for the job; The immediate products of job analysis are
job descriptions and job specifications. Below is the recruitment announcement for
Plastic pipe salesperson of Hoa Sen Group, which will synthesize the analyzed
information and design the job description.

Figure 5: Recruitment announcement salesperson of Hoa Sen plastic pipes

Sources: (hoasengroupjobs.vn)

25
Step 2, Determine recruitment strategy: Hoa Sen Group used both the recruitment
methods that are internal recruitment and external recruitment. In there, internal
recruitment methods promote for employees in organization, invite applications form
internal candidates before they look for external labor markets for new staff, etc. External
recruitment methods are Company websites, online Recruitment pages, websites, social
networking sites, etc. The reasons of Hoa Sen Group chosen two methods are it bring a lot
of advantages for the Group. Advantages of internal recruitment are: The morale of
promote is usually high; The Group can better assess a candidate’s abilities on the basis of
priors work performance; The process is a motivator for good performance by employees;
The process can aid succession planning, future promotions, and career development; And
recruitment costs are lower. External Recruiting brings the advantages as: New employees
bring new perspectives that can be applied to business opportunities and challenges;
Training new hire may be cheaper and faster because of prior external experience; New
hires may bring new industry insights and expertise; And potentially larger applicant pool
generated by search efforts.

Step 3, Recruitment announcement: Post job vacancies on the Group's website, social
networking sites, websites, etc. Next is to wait for the applicants to apply.

There are 5 ways for applicants to apply: Option 1. Apply at the Group's recruitment
website: https://hoasenjobs.com/; Option 2. Send application file to the Group's
recruitment email; Option 3. Apply online at Hoa Sen Group's Recruitment page; Option 4.
Apply online at the recruitment websites where the Group posts recruitment information
(Careerbuilder.vn, Timviecnhanh.com, Vieclam24.vn, Vietnamworks.com, etc.); Option 5.
Apply directly at the TP Representative Office Ho Chi Minh City and Subsidiaries / Factories
of Hoa Sen Group.

Records include: Application form (in the form of the Group); Curriculum vitae, ID card /
CCCD, household registration book (certified copy within 06 months); Relevant diplomas
and certificates (certified copy within 06 months); Health certificate (original within 06
months); Photo Card size 3x4cm (4 sheets).

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Step 4: Receipt and Selection of Resumes: Human Resources Department will review and
select candidates matching recruitment criteria, in case: Suitable records: The Department
of Recruitment and Training will contact the application by phone. And Unsuitable records:
The Department of Recruitment and Training will keep and contact for future vacancies.

Step 5: Invite candidates to take part in the test: After the telephone interview, the
Department of Telematics will send an email inviting suitable candidates to take the test for
the vacancy (if any, depending on the requirements of each job position).

Step 6, Interview: Depending on the vacancy, there may be more than one interview.
Interview at Hoa Sen Group has a 3-round process as follows:

Round 1: Staff in charge of Recruitment interview for basic assessment of knowledge,

skills and suitability of the Group's culture and job requirements.

Round 2: The Head / Division / Division of the Group interviews to test the
candidate's professional qualifications and experience.

Round 3 (depending on the nature of the job and job title): Candidates will be
interviewed by the Board of Directors of Hoa Sen Group.

Step 7, Announcing interview results to candidates: Candidates who pass the interview
will be required to add a full profile to the Recruitment and Training Department (if the
profile is missing) to submit a recruitment proposal to the Board Group review and
approval. After the Board of Directors approves, the Recruitment and Training Department
informs the candidate recruitment result within 7 working days, in case:

Candidate to be recruited: The Department of Recruitment and Training will send an

invitation letter to the candidate.

Candidates who have not passed the interview: The Recruitment and Training
Department will send a letter of thanks to the candidate.

In short, Hoa Sen Group's recruitment and selection have both strengths and
weaknesses. The strengths are that the human resources department has done a fairly
good job of completing the recruitment process, making plans, strategies and planning
everything clearly. In the recruitment approach, the group has also applied very well both
27
 recruitment methods to diversify the number of job applicants, attract talent and also
make an impression on all segments of consumers in the recruitment process according to
the process. Regarding weaknesses, it can be said that the human resources department
has not yet organized well departments in the company because the functions are quite
overlapping despite the reduction and restructuring in the last 2 phases. In addition, when
implementing many approaches, it is easy to have holes in the recruitment process and
can cause shortages and neglect of talents.

4.5. Training and Development of Hoa Sen Group:

Training and Development is a subsystem of an organization which emphasize on

the improvement of the performance of individuals and groups. Training is an educational
process which involves the sharpening of skills, concepts, changing of attitude and gaining
more knowledge to enhance the performance of the employees. Good & efficient training
of employees helps in their skills & knowledge development, which eventually helps a
company improve (Gould, 2009).

Hoa Sen Group always focuses on training and developing human resources for the
organization. The total training budget of the Group in the year 2018 - 2019 reached more
than 3 billion. The Group has successfully organized 355 training courses with more than 10
thousand participants. When that, Hoa Sen Group applied 4 training methods as follows:

 Off-job methods: Off-the-job training is conducted in a location specifically

designated for training. It may be near the workplace or away from work, at a
special training center or a resort conducting the training away from the workplace
minimize distractions and allows trainees to devote their full attention to the
material being taught- However, off-the-job training programs may not provide as
much transfer of training to the actual job as do on-the-job programs (. With Hoa
Sen Group, in addition to periodic training courses as prescribed by law, the Group
also regularly organizes skills and skill improvement courses for current employees
as well as capacity development for employees at the Representative Office Group,
Branches / Stores under Distribution - Sales system and production units of
subsidiaries / Factories.

28
  Learning on the job: This is the most common method of training in which a trainee
is placed on a specific job and taught the skills and knowledge necessary to perform
it (Gallagther et al, 2005). In Learning on the job of Hoa Sen Group includes: Self-
development is the Group Reprinting the Standard-Standard visual training material
to provide self-study materials for new employees to timely integrate the
environment and work at the Branch / Store. And Peer relationship is mostly for
newly trained workers.
 E-learning: The delivery of a learning, training or education program by electronic
means. E-learning involves the use of a computer or electronic device (e.g. a mobile
phone) in some way to provide training, educational or learning material (Strother,
2002). Hoa Sen Group trains personnel in branches through online sessions and is
held at the main company.
 Simulations and Training: Simulation training is the creation of a true-to-life
learning environment that mirrors real-life work and scenarios. Trainees can put
real knowledge and skills into practice not just by reading books on theory or
listening to lectures, but through physical, hands-on activity (Bell et al, 2008). HR
Department of Hoal Sen Group applies new construction the set of training clips for
current employees, making learning more vivid and attached to the real work.

4.6. Performance management of Hoa Sen Group:

Performance management is defined as the process of continuous communication and

feedback between a manager and employee towards the achievement of organizational
objectives (Kloot & Martin, 2000).

Hoa Sen Group not only carries out the processes of recruiting, training and developing
employees, but the group also manages employee performance. Hoa Sen Group manages
employees' performance by a relative evaluation system and uses 180-degree feedback
collection. Besides that, the relative evaluation system can understand to be Compares
employees with one another (Bowen and Ostroff, 2004). In the 180-degree feedback just is
feedback only from manager and colleagues (Armstrong, 2006). The higher the productivity
rating an employee is, the better an employee must perform factors such as: The employee
29
 must complete the assigned work well; comply with the working regulations and internal
rules of the Group; take initiatives to contribute to production and business activities of the
Group; commitment to work after training depending on the funding for training; strictly
comply with the regulations on labor safety and hygiene, fire prevention and fighting.
Besides that, the corporation always creates the connection between employees and the
organization through activities such as: Periodically organize dialogues with employees; All
employees are signed labor contracts in accordance with the law; To periodically report on
the situation and results of production and business activities; Clearly explain the purpose
and meaning of the evaluation and grading of employees; Answering questions and
recommendations of employees in meetings; All employees are treated equally and with
adequate protection from any discrimination in employment or occupation.

Through assessment activities, the corporate comments showed that the performance
evaluation opinions were only evaluated by the management and colleagues in the
corporate. These things bring strengths and weaknesses for Hoa Sen Group. Hoa Sen
Group's strengths in productivity management is being able to assess employee
productivity, helping the company to come up with development strategies for each
employee in the group. The weaknesses of the productivity management process is that all
the criteria for employee productivity have not been assessed, has not yet created a
competitive element in the business environment, has not yet come up with a staff
development plan in the most accurate way and there is no equity factor in the evaluation.

4.7. Reward system of Hoa Sen Group:

The reward infrastructures of modern organizations are comprised of two major

categories of rewards: financial and non-financial. The former includes fixed (i.e. salary and
benefits) and variable rewards (i.e. incentives contingent upon individual, group, or
organization performance). The latter also includes tangible rewards provided and
controlled by firms. However, in contrast, these do not benefit employees in a monetary
sense. Examples include recognition, alternate work arrangements, and training and
development opportunities (Chiang and Birtch, 2012). Financial rewards consist of job-
based pay, which provides pay related to the value of the job, and person-based pay, which

30
provides rewards that recognize the individual’s contribution (Armstrong, 2010). Non-
financial rewards are very different in terms of their motivational attributes. Training and
development, for example, is used to enhance human capital and other non-financial
performance outcomes, such as knowledge/skill acquisition and innovation (Chiang and
Birtch, 2012).

Hoa Sen Group always focuses on human resources, specifically all employees of the
group, so the group always offers policies on salary, bonus, benefits and other
remuneration for its employees.

Salary policy: Each employee has a code, salary grade, salary coefficient depending
on the job position and professional qualifications. When an employee is recruited into the
company or appointed according to the assigned tasks and competencies, the recruitment
committee and the director will consider the employee's rank and salary grade on the basis
of the general salary scale of the public. The basic salary level is determined by the salary
coefficient of the employee and the basic salary according to the State regulations. The
fiscal year 2018 - 2019 is a challenging economic year not only for the global economy, the
Vietnamese economy and the building materials industry in general, but also for Hoa Sen
Group in particular. However, the Board of Directors has had practical and effective
solutions to bring the Group through the most difficult times. One of the effective solutions
is to issue, amend, and supplement a number of salary policies to suit the business
situation from time to time to ensure the income of employees of the whole Group.

Other support amounts: The support money such as fuel, housing, travel,
telephone support, support for difficult branches, remote areas, maternity support, etc. are
still maintained as in the previous years. These allowances are an addition to the monthly
income, creating motivation, helping employees feel secure to work.

Insurance regime: Employees, when becoming official employees of the Group, are
entitled to fully participate in social insurance, health insurance and unemployment
insurance in accordance with the law, ensuring all public employees. Employees are fully
entitled to the insurance regime. Hoa Sen Group has adjusted the minimum salary for
employees in accordance with the Government's regulations in January 2019. In addition,

31
 Hoa Sen Group maintains a 24/24 accident insurance policy for all employees of the
Company (including probationary employees) with a maximum insurance rate of
200,000,000 VND / person / service.

Hoa Sen Group also applies other welfare regimes such as: organizing cultural,
cultural, and sports activities to improve the spiritual life of employees on anniversaries
and homes. daily meals for officers and employees, allocation of uniforms for employees,
adequate labor protection equipment in accordance with the law; shuttle bus for
employees, supporting female staff on International Women's Day and Vietnamese
Women's Day, supporting maternity, support employees when getting married, mourning,
etc. In association with the grassroots Trade Union, Hoa Sen Group also cares about the
lives of employees in difficult circumstances, supports vehicles to bring employees back
home to celebrate Tet, presents gifts to employees' children every year on the National
Children's Day, etc.

Salary, bonus and welfare policy for employees has always been paid special
attention and concern by Hoa Sen Group. This is also the strength of the Reward system of
Hoa Sen Group, creating motivation for all employees of the company to work with the
highest productivity, sticking for the longest time and towards the common goal that is
huge profits for corporations.

5. EVALUATION OF THE STRENGTHS AND WEAKNESSES OF THE POLICIES AT HOA SEN

GROUP

Hoa Sen Group is a corporation with a history of development for nearly 20 years and since
its inception, the group has made a great investment in the company's human resources.
However, through this report, we can see the strengths and weaknesses in the policies of
Hoa Sen Group as follows: The first are the strengths in corporate policies: Personnel
structure is arranged in an orderly manner and there is a specific division of the functions
of each department; Human resource policy is focused and renewed each year; Human
resources department makes clear policies towards human resource development; Provide
specific and comprehensive step-by-step policies on workforce planning from the Group's
internal environment to the outside environment; Reducing human resources to help the
32
company to rise in difficult economic times; Recruitment The Group offers a variety of
practical approach policies and gets closer to the majority of customers through its
outreach policy; The recruitment process and well-planned strategies help diversify the
number of candidates and attract talent. The Group also introduced a meticulous selection
policy in accordance with the process to bring the group of talents in accordance with the
proposed policy; The Group also has human resource training and development policies to
attract talent for Hoa Sen Group, develop the talents of excellent employees and perfect
the skills needed at work for employees. Besides, the employee performance assessment
policy helps to identify the shortcomings of each member and make effective training plans
to develop employees of the corporation. And finally the reward policy with good
treatment for employees in both material terms such as salary, bonus and spiritual value
such as organizing vacation, entertainment activities, etc. and many other incentives for
employees. Besides the strengths of the policies, it is indispensable that mistakes in those
policies cannot be lacking. And the weaknesses of the policy can be seen such as: The
functions of the departments are duplicated, leading to disagreements, errors in job
handling and increased costs of paying salaries for employees. Step-by-step HR planning
will be limited in some departments due to inappropriate policies such as sales
departments and accounting departments that have their own particularities and
characteristics. The extensive recruitment process with many ways to receive documents
makes it difficult for the HR department to control good and bad records. Therefore, the
choice policy will be limited, take a long time to choose, and there is a high possibility of
missing talents. The company's training and development policy still has many flaws in the
selection of courses for employees, not giving employees proper training in the skills that
employees are lacking. Employee performance evaluation policies still have many flaws
because they have not evaluated employees comprehensively, there is not a highly
competitive factor in the working environment and it is important that employees have not
been evaluated fair way. Bonus policies are ineffective due to lack of clear distribution of
rewards and have not created great motivations for employees during their work and
development efforts.

33
6. CONCLUSION

In short, through this report can be seen purpose of human resources departments is to
manage the numerous needs of company employees. From financial to legal matters,
human resources departments of Hoa Sen Group help in maximizing the efficiency of an
organization. Besides, there are some main functions of Human Resources Department
such as: workforce planning, recruitment and selection, training and development workers,
maintaining interoffice relationships and design reward system. As an HR consultant of Hoa
Sen Group, with main task is to design a HR system for the company. Although the policies
introduced by the group have strengths and weaknesses, all of those policies are aimed at
the common goal of the company: attract talents, develop the workforce of the
corporation, fulfill the set plans and bring great profits to the Group.

34
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