Chapter 1

Introduction to Human Resource Management

Learning Objectives (1 of 2)
1-1 Distinguish between human resource management
(HRM) and personnel management
1-2 Identify the functional activities of human resource
management.
1-3 Apply management models to Vietnamese enterprises.
1-4 Recognize the challenges and priorities of human
resource management in the 21st century.
1-5 Understand human resource management in the era of
Metaverse.

Learning Objective 1-1: Distinguish between human resource management (HRM)

and personnel management.

Understand Human Resource Management

Studies issues related to managing people within organizations at the micro level and has two main objectives:
• Effectively utilizing human resources to increase labor productivity and the efficiency of the organization.
• Meeting the increasing demands of employees, creating conditions for employees to:
– maximize their personal abilities,
– be stimulated, and motivated at the workplace, thereby
strengthening loyalty and commitment to the
enterprise.
What Is Human Resource Management (HRM)?
A system of philosophies, policies, and functional activities aimed at attracting, training, developing, and retaining people
within an organization, with the core purpose of aligning with the organization’s strategic goals and meeting the
demands of the workforce
Management and HRM (1 of 2)
• Organization: A group consisting of people with formally assigned roles who work together to achieve the
organization’s goals.
• Manager: Someone who is responsible for accomplishing the organization’s goals, and who does so by managing the
efforts of the organization’s people.
Management and HRM (2 of 2)
• Managing: To perform five basic functions: planning, organizing, staffing, leading, and controlling.
• Management process: The five basic functions of planning, organizing, staffing, leading, and controlling.
HRM Development (1 of 2)
• Worldwide context
HRM Development (2 of 2)
• Vietnam’s Context: Transitioning process
Personnel Management v.s. HRM

Learning Objective 1-2

Identify the functional activities of human resource management.
Basic Functions of HRM
• HRM functions can be classified according to the employee life cycle, the level of strategic impact, or the specialization
and systematic role of the HR department, depending on how HR tasks align with both organizational needs and
employee well-being.

• The functions divided by the labor flow cycle include:

– Attracting labor.
– Training and development.
– Retaining workforce.
• The functions divided by the role and level of impact on the
organization's activities
– Based on the role and impact on the business outcomes, HRM
functions are divided into two groups: operational and strategic.
• The functions is divided according to the specialized and
systematic nature of the HR department.
Modeling HRM Functions

HRM Activities in the Enterprise

Learning Objective 1-3

Apply management models to Vietnamese enterprises.
Adapted Model in Vietnam's
Organizational Context
A. Environmental Issues B. Functional Components
Learning Objective 1-4
Recognize the challenges and priorities of human resource
management in the 21st century.
Priority Areas for Developing HRM
• Current Challenges
1) External environment.
2) Internal environment.
3) Challenges from individuals involved in all decisions related to
the obligations and rights of employees.
Priority Areas for Developing HRM
• Priority Areas
1) Change Management
2) Applying the Achievements of the Information Revolution
3) Knowledge Management and Talent Recruitment
4) Developing Human Resource Strategies
5) Developing a Suitable Cultural Environment
Organizational Structure of HR

Department

Learning Objective 1-5

Understand human resource management in the era of Metaverse.
Metaverse and HRM (1 of 3)
• Metaverse refers to a virtual world that blends physical and digital environments to deliver a more comprehensive flow
of information, enhanced interactivity, realistic experiences, and greater visualization capabilities for production
activities.
• The Metaverse offers HRM the tools to transform traditional processes into dynamic, interactive, and
innovative experiences, redefining how organizations attract, retain, and nurture talent.
• Role of Metaverse

Chapter 2
Chapter 2 Human Resource Planning

Learning Objectives
2-1 Understand the concept and process of human resource (HR) planning.
2-2 Recognize the role of the business environment, strategy, and virtual management in HR planning.
2-3 Analyze the relationship between HR strategy and business strategy.
2-4 Learn how to prepare a budget for the HR department.
2-5 Understand the measures and principles of workforce streamlining
Learning Objective 2-1
HR Planning
• Identifying strategic objectives, assessing workforce needs, developing strategies and policies, and
implementing programs and activities to ensure that an organization has sufficient personnel with appropriate
qualities and skills.
– The aim is to enable employees to perform tasks with high productivity, quality, and efficiency in alignment with the
organization's strategic goals.
HR Planning Process

Learning Objective 2
Recognize the role of the business environment, strategy, and virtual management in HR planning.

Business Environment Analysis

• External Environment: This includes economic conditions, market trends, technological advancements, political and
legal factors, and social/cultural changes.
• Internal Environment: This covers the company’s culture, structure, resources, capabilities, and internal processes.
Strategy Analysis
• Competitive Strategy: How the business intends to compete in the market, including differentiation, cost
leadership, or focus strategies.
• Growth Strategy: Expansion through new markets, products, or services.
• Innovation Strategy: Fostering innovation to stay ahead in the market.
Organizational Objectives
• Define what the company aims to achieve within a specified timeframe.
– Long-Term Goals: Strategic aims that guide the overall direction of the company (e.g., becoming a market leader,
expanding internationally).
– Short-Term Goals: More immediate targets that help achieve longterm objectives (e.g., increasing sales, launching a
new product).
Virtual Management

Social Networking Sites Adoption

Learning Objective 2-3

HR Strategy
• Focuses on:
– Improving performance outcomes.
– Enhancing employee satisfaction and engagement.

Linkages Between Business Strategy

and HR Strategy

Strategy planning and HR planning

Learning Objective 2-4
Analysis of the Current Status of HRM
• Workforce Composition and Structure
• Talent Acquisition and Recruitment
• Training and Development
• Performance Management
• Compensation and Benefits
• Employee Engagement and Satisfaction
• Technology and HR Systems
• Compliance and Legal Considerations
• HR Strategy and Alignment with Business Goals
Forecasting HR Demand
• Organizational Goals and Strategy
• Current Workforce Supply
• Past Workforce Trends
• Quantitative/ Qualitative Methods
• External Factors
• Organizational Changes
• Skill and Competency Requirements
Analyzing Supply-Demand and the
Ability to Adjust HRM Systems (1 of 4)
• HR Supply
– Labor Market Conditions: Availability of skilled workers in the labor market, including local or international talent
pools.
– Internal Workforce: The current employees' skills, experience, and career development.
– Training and Development Programs: HR's role in developing the existing workforce and preparing them for future
needs.
• HR Demand
– Business Strategy and Goals: Strategic objectives, market expansions, product innovations, or new technologies
requiring specialized skills.
– Workforce Planning: The planning process to ensure the organization has the right people with the right skills to
achieve organizational goals.
– Economic and External Factors: Market conditions, economic growth, industry trends, and technological changes can
alter workforce requirements.
• Balancing the Supply and Demand
– Excess Supply (Labor Surplus): Implementing downsizing or retraining programs to repurpose the surplus workforce
– Insufficient Supply (Labor Shortage): Intensifying recruitment efforts, offering competitive compensation packages, or
investing in training and development to build skills internally.

• Adjusting HRM Systems

– Workforce Planning and Forecasting
– Talent Development and Training
– Recruitment and Retention Strategies
– Compensation and Benefits
– Technological Tools and HRIS (Human Resource Information Systems)
– Flexibility and Adaptation to Change
Determining Recruitment Needs by Job Titles/Departments

23
Budgeting for HR Planning
• Estimating a budget for HR activities involves considering all expenses related to workforce planning, recruitment,
training, benefits, and other HR-related activities.
• Categories of HR Expenses

Budgeting for HR Planning (3 of 5)

• Detailed Budget
• Steps to Prepare the Budget
1. Review Past HR Budgets: Analyze historical HR spending data to identify trends and areas requiring adjustments.
2. Align with Business Goals: Ensure the HR budget reflects the company’s strategic priorities and workforce planning
needs.
3. Engage Stakeholders: Collaborate with department heads to forecast recruitment, training, and development needs.
4. Account for Inflation: Include cost adjustments for inflation or market changes affecting HR expenses.
5. Set Contingency Reserves: Allocate a percentage of the budget as a reserve for unforeseen expenses.
• Summary of Estimated Budget

HR Dep. Budget Estimation

HR Dep. Budget Estimation

Learning Objective 2-5
Workforce Streamlining
• The process of optimizing an organization’s workforce to improve efficiency, reduce costs, and adapt to changing
business needs.
– This process can involve layoffs, reorganization, or eliminating
redundant positions.
– The goal is to create a more agile and cost-effective workforce
while maintaining the company's ability to meet its objectives.
Workforce Streamlining Process (1 of 2)
Workforce Streamlining Process (2 of 2)

Monitoring and Evaluating the Implementation (1 of 2)

• To guide HR planning activities, identify discrepancies between the plan and actual performance, determine the
causes of these discrepancies, and propose corrective measures.
– Quantitative evaluations are often more objective and help the business clearly
identify discrepancies in the following areas:
 the number and quality of employees;
 labor productivity;
 employee turnover rate, especially among newly hired employees;
 recruitment costs per employee; and
 employee satisfaction with their work.

Monitoring and Evaluating the Implementation (1 of 2)

• Evaluation Area

Chapter 3
Job Analysis and Departmental Management Documents
Learning Objectives
3-1 Understand the concept, information collection, and the process of job analysis.
3-2 Know the methods of information gathering and data analysis.
3-3 Know how to build job descriptions and job specifications.
3-4 Know how to create departmental management documents.
3-5 Understand the characteristics of job analysis in Vietnam and the trends in job analysis.
3-6 Identify workflow and staffing
Learning Objective 3-1
Understanding Job Analysis
• The process of studying the content of a job to identify the necessary conditions, tasks, responsibilities, authorities
required for performing the job, as well as the qualities and skills that employees must possess to effectively carry out
the job.
– It aims to provide a clear understanding of what the job entails and the
competencies needed to perform it successfully.
Job Analysis Documents
In order to effectively manage employees and ensure that work is carried
out efficiently, businesses need to create two essential documents:

Content and Procedure of Job Analysis

• Contents
– Job Purpose
– Tasks and Responsibilities
– Skills and Attributes
– Working Conditions
– Education and Experience Requirements
– Authority and Accountability
• Procedure
1) Define the Purpose of Job Analysis
2) Collect Job Information:
3) Analyze and Identify Job Elements
4) Prepare Job Description
5) Prepare Job Specification
6) Review and Refine
7) Apply the Job Analysis Results
Learning Objective 3-2
Know the methods of information gathering and data analysis.
Information Gathering

Learning Objective 3-3

Job Description
• A detailed outline of the key duties, responsibilities, and expectations associated with a job.
– It is designed to give both the employee and the employer a clear understanding of what the job entails.

Job Specification
• The qualifications, skills, and attributes necessary for a
person to perform the job effectively.
– It focuses on the candidate's profile, detailing the criteria needed to successfully
fulfill the role.
Learning Objective 3-4
Department Management Documents
• Enterprises need to focus on defining the following for departments/units:
1) Department/Unit Mission
2) Specialized Functions
3) Departmental/Functional Strategy Map
4) Interdepartmental Relationships in Work
5) Main Responsibilities
6) Internal Department Management
7) Required Reports
8) Work Processes
9) KPI Evaluation Criteria
10) Necessary Specialized Equipment and Tools
Business Department’s Strategic Map

Department Job Description vs. Functions and Responsibilities

Learning Objective 3-5
Understand the characteristics of job analysis in Vietnam and the trends in job analysis.
Characteristics of Job Analysis in Vietnam
• Some important documents and materials issued by the state related to job analysis include:
– Industry Classification
– Public Servant Professional Standards
– Technical Job Classification Standards for Various Levels
– Technical Standards for Worker Levels
Characteristics of Job Analysis in
Vietnam (2 of 2)
• Some key criteria that need to be implemented in the job analysis orientation include:
– Assessing job responsibilities.
– Studying similar job positions in related industries.
– Identifying and listing required outcomes (outputs) for each position.
– Clearly defining training, development activities, and necessary skills based on the characteristics of tasks for each
department and job position.
– Providing compensation and benefits that align with job characteristics and the industry sector in which the
organization operates.
– Regularly updating job requirements to attract candidates who are a strong fit with the organization's culture.
Trends in Job Analysis
• Reduction in the number of jobs.
• Jobs will be organized according to integrated processes and carried out by teams or groups.
• The organizational structure will be improved and simplified, with better allocation and arrangement of
human resources.
Learning Objective 3-6
Identify workflow and staffing
Workflow and Staffing

• Workflow
– The sequence of tasks, processes, and activities required to complete a specific
job or function within an organization. It is the movement of tasks from one stage to
another, often involving different departments, teams, or individuals.
• Staffing
– Determining the number of employees and the skill sets required for each position
within an organization. It involves analyzing the workforce needs based on the
tasks and responsibilities outlined in job analysis and ensuring that appropriate
personnel are in place to meet those needs.
Chapter 4 Recruitment Process
Learning Objectives
4-1 Understand the foundation of diversity in recruitment.
4-2 Know the sources of candidates in recruitment.
4-3 Understand the content and sequence of the recruitment
process.
4-4 Know the models for attracting and arranging workforce.
4-5 Know how to evaluate the effectiveness of recruitment
activities.
Learning Objective 4-1
Understand the foundation of diversity in recruitment.
Diversity in Recruitment
• Inclusive hiring processes that recognize and value differences in race, gender, age, disability, sexual
orientation, cultural background, and other characteristics.
– The aim is to foster a workplace that reflects a wide range of perspectives, which can lead to increased innovation,
better decision-making, and improved organizational performance.

Levels of Diversity
• Two levels of diversity that recruiters should be aware of: surface-level diversity and deep-level diversity
• Surface-Level Diversity: The visible, easily identifiable characteristics of individuals, such as:
– Race and ethnicity
– Gender
– Age
– Disability
– Physical appearance (e.g., height, weight)
– Cultural background
• Deep-Level Diversity: The less visible, more complex aspects of diversity, including:
– Personality traits (e.g., introversion vs. extraversion)
– Values and beliefs
– Cognitive styles
– Work styles and preferences
– Educational background
– Life experiences
Generations and Work Values
Generations and Work Values

Learning Objective 4-2

Know the sources of candidates in recruitment.
Internal Recruitment
• Current Employees: Promoting from within or transferring employees to different roles is often a cost-effective and
efficient way to fill positions.
• Employee Referrals: Employees refer people from their networks, which often results in high-quality candidates
who fit the company culture.
External Recruitment:
• Job Portals and Websites
• Recruitment Agencies
• Social Media
• College/University Recruitment
• Professional Networks
• Job Fairs
Direct Sourcing
• Headhunting: Actively searching for candidates who are not actively seeking a job but are identified as high
potential based on their experience or skills.
• Cold Calling/Emailing: Reaching out directly to potential candidates through email or phone calls to gauge their
interest in open positions.
Talent Pools
• Previous Applicants: Candidates who applied in the past for different roles and were not selected can be considered
for new openings.
• Database: Maintaining a database of potential candidates (whether from previous searches, job fairs, or referrals)
allows recruiters to quickly find candidates when positions become available.
Job Matching Platforms
• AI and Recruiting Software: Platforms that use AI and machine learning to match candidates to job descriptions
based on skills, experience, and preferences.
Learning Objective 4-3
Understand the content and sequence of the recruitment process.
Content, Sequence of the Recruitment Process
• Helps companies communicate their brand capital, attract
potential candidates, and build a skilled workforce that
ensures the company's survival and maintains its
competitive advantage.
Recruitment Process

Learning Objective 4-4

Know the models for attracting and arranging workforce.
Talent Pipeline Model
• Building a continuous flow of talent into the organization by engaging with potential candidates even before positions
are open.
– A company might engage with universities, industry conferences, and career fairs
to build relationships with future talent, ensuring a ready pool of candidates when
needed.
Internal Mobility Model
• The movement of existing employees to new roles within the organization.
– An organization offers mentorship programs, job shadowing, and cross-training to
prepare employees for future roles within the company.
Flexible Workforce Model
• Attracting a mix of permanent, temporary, freelance, and part-time workers to create a flexible workforce that can
adapt to changing business needs.
– A tech company may hire full-time developers for core operations while bringing in freelancers or contractors for short-
term projects or specialized skills.
Outsourcing and Offshoring Model
• Focuses on leveraging third-party providers to fulfill business needs.
– A manufacturing company might outsource its customer service operations to a third-party provider in another country
to cut costs, while maintaining core functions like production in-house.
Learning Objective 4-5
Know how to evaluate the effectiveness of recruitment
activities.
Evaluating of the Recruitment Effectiveness

• Conceptual description of the evaluation of recruitment

effectiveness:

Evaluating of the Recruitment Effectiveness

Chapter 5 Testing, Assessment, and Interviews
Learning Objectives
5-1 Understanding the foundation of testing and interview
tools.
5-2 Classifying the types and procedures of testing.
5-3 Knowing how to design an interview process.
5-4 Knowing how to conduct recruitment interviews.
Learning Objective 5-1 Understanding the foundation of testing and interview tools.
Testing and Recruitment Interview
Tools
• Attributes of the tools should include three major issue,
including: reliability, validity, and practicality.

Learning objective 5-2 Classifying the types and procedures of testing.

Testing and Assessment
• Types of testing and assessment

Testing and Assessment

• Procedures of Testing and Assessment
Learning Objective 5-3
Knowing how to design an interview process.
Interview (1 of 2)
• Information to explore about the enterprise

• Information to explore about the candidate

Interview Process Design (1 of 2)

Learning Objective 5-4 Knowing how to conduct recruitment interviews.

Conducting the Recruitment Interview
Chapter 6 Career Orientation
Learning Objectives
6-1 Understanding career orientation.
6-2 Identifying personal abilities and suitability for a
profession.
6-3 Setting career goals and searching for jobs.
6-4 Analyzing the impacts of the environment and the role of
business in career development.
Learning Objective 6-1 Understanding career orientation.
Career Orientation
The process of understanding and planning one's career
path, including identifying personal strengths, interests,
values, and goals, as well as exploring potential career
options.
Theories Related to Career
Career Lifecycle
Career Orientation Model

Learning Objective 6-2

Identifying personal abilities and suitability for a profession.
Personal Attributes

Personality and Career Orientation

• Personality
– Enduring traits of individuality (e.g., uniqueness, preferences, motivations, values,
concepts, abilities, and emotions) that shape personal behavior.
• Five Personality Traits
– Openness to experience, conscientiousness, extraversion, agreeableness, and
emotional stability (neuroticism).
• Typology of personality and congruent occupations

Learning Objective 6-3

Setting career goals and searching for jobs.
Career Goals
• Clearly define your goals: Understand your aspirations in terms of job roles, industries, and work environments.
• Analyze your capabilities: Evaluate your skills, interests, and personal values to determine suitable career options.
Career Goals (2 of 2)
• Set short-term and long-term objectives:
– Short-term goals: Specific objectives within 1–3 years (e.g., acquiring a new skill, getting promoted, or completing a
major project).
– Long-term goals: Career development plans over 5–10 years (e.g., becoming an expert in your field or reaching a senior
management position).
Job Search
Learning Objective 6-4
Analyzing the impacts of the environment and the role of business in career development.
Three Key Factors (1 of 3)
• Parental Influence
– Parents often provide early career guidance, shape values, and set expectations for education and work. However, the
parent's career may also create both opportunities and limitations for their children's career development.
• Spouse's Profession
– The career of one spouse (often the male) takes precedence, leading the other spouse (typically the female) to adapt
their career path to accommodate family needs or the demands of their partner’s work.
• Business Environment
– Factors such as company culture, leadership styles, and career development programs can either facilitate or hinder
career growth. A positive environment that promotes creativity, offers job rotations, and supports employee
advancement leads to better career development opportunities.

Chapter 7 Training and Development

Learning Objectives (1 of 2)
7-1 Understand the concept of employee training and
development.
7-2 Know the methods of training and development.
7-3 Know the priorities in employee training and
development in the 21st century.
7-4 Identify training needs.
7-5 Implement the training process.
7-6 Understand how to evaluate the effectiveness of training.
Learning Objective 7-1
Understand the concept of employee training and
development.
Training and Developing Employees
• The processes an organization uses to enhance the skills, knowledge, and competencies of its workforce.
Role of Training and Developing Talent
Learning Objective 7-2
Know the methods of training and development.
Methods of Training and Development

Learning Objective 7-3

Know the priorities in employee training and development in the 21st century.
Priorities in Employee Training and Development

Learning Objective 7-4 Identify training needs.

Training Needs
1) Analyze Organizational Goals and Objectives
2) Conduct a Job Analysis
3) Review Employee Performance
4) Gather Feedback from Employees
5) Conduct Interviews or Focus Groups
6) Assess Skills Through Self Assessment
7) Observe Work Practices
8) Use Competency Frameworks
9) Monitor Industry Trends
10) Evaluate CustomerFeedback
11) Identify Technological Needs
12) Prioritize Training Needs
Learning Objective 7-5
Implement the training process.
Training Process
1) Define Training Objectives
– Set clear, measurable goals for what the training aims to achieve, ensuring they align with both organizational goals
and employee needs.
2) Design the Training Programs
– Develop a structured plan that includes training content, methods, schedule, and
the necessary resources, ensuring it addresses the identified training needs.
3) Deliver the Training
– Conduct the training according to the planned schedule and format, ensuring that it
is engaging and relevant to participants' roles.
4) Evaluate Training Effectiveness
– Assess participants’ learning through tests, quizzes, or feedback, and measure how well the training has met its
objectives.
5) Provide Follow-up and Reinforcement
– Offer ongoing support after the training to help employees apply what they’ve learned, and make adjustments to
future training programs based on feedback.
Learning Objective 7-6
Understand how to evaluate the effectiveness of training.
1) Set Clear Evaluation Criteria
• Define what success looks like before the training begins.
– Establish measurable criteria such as knowledge gain, skill improvement, behavior
change, or business outcomes that you expect to see post-training.
2-1) Use the Kirkpatrick Model (1 of 4)
• Level 1-Reaction : Measure how participants react to the training.
– This can be done through surveys or feedback forms asking about their
satisfaction, engagement, and whether the training met their expectations.
– E.g., how useful did you find the training material? or did the trainer engage
effectively with the group?
2-2) Use the Kirkpatrick Model (2 of 4)
• Level 2-Learning: Assess the knowledge or skills gained during the training.
– This is typically measured through pre- and post-training assessments or quizzes.
– E.g., knowledge test before and after the training to determine how much information was retained.
2-3) Use the Kirkpatrick Model (3 of 4)
• Level 3-Behavior: Evaluate if the learned skills and knowledge are being applied on the job.
– This can be done through observations, feedback from managers, or follow-up surveys after a certain period.
– E.g., have you applied the skills from the training in your daily tasks? or manager assessments on employee
performance.
2-4) Use the Kirkpatrick Model (4 of 4)
• Level 4-Results: Assess the impact of the training on business outcomes such as productivity, sales, quality, or
customer satisfaction.
– This involves measuring key performance indicators (KPIs) that reflect the organization's goals.
– E.g., Increased sales, reduced error rates, or higher customer satisfaction after training.
3) Gather Feedback from Participants
• Collect qualitative and quantitative feedback directly from the participants through surveys, interviews, or focus
groups to assess their perception of the training’s usefulness and relevance.
4) Monitor Post-Training Performance
• Track employees’ performance over time, either through direct observation or performance data.
– This can help determine if there is a long-term impact on their work habits, efficiency, or overall job performance.
5) Measure Return on Investment (ROI)
• Calculate the return on investment for the training by comparing the training costs against the benefits gained.
– This could involve measuring improvements in productivity, reduced turnover, cost
savings, or increased revenue that can be attributed to the training.
– ROI = (Benefit from Training – Cost of Training) / Cost of Training x 100
6) Conduct Follow-Up Assessments
• Follow up with employees after a set period (e.g., 3 months or 6 months) to check if the training had a lasting
impact and if there are any ongoing challenges that need addressing.
Chapter 8
Performance Management
Learning Objectives
8-1 Understanding performance appraisal management.
8-2 Describing methods of performance appraisal.
8-3 Enhancing the effectiveness of performance appraisal.
8-4 Understanding competency assessment.
8-5 Conducting performance appraisal interviews.
Learning Objective 8-1
Understanding performance appraisal management.
Job Performance
• How well an employee performs their job duties and responsibilities. It is an evaluation of an individual's
efficiency, effectiveness, and quality of work, based on a set of criteria or standards defined by the organization.
Content of Performance Appraisal
• Job Results
• Skills and Competencies
• Job Behaviors
• Personal Development
• Contribution to the Organization
Process of Performance Appraisal

Methods of Performance Appraisal

Learning Objective 8-2
Describing methods of performance appraisal.
BSC-KPI (Balanced Scorecard and Key Performance Indicators)
• Strategic framework used for performance appraisal that combines two key concepts:
– BSC: Evaluates employee performance from multiple perspectives to ensure that goals align with the organization's
strategic objectives. It looks beyond financial results to assess other critical areas.
– KPI: Specific, measurable metrics used to assess the effectiveness of an employee in achieving specific organizational
goals. KPIs are usually linked to individual, departmental, or company-wide objectives.
How the BSC-KPI Method Works?

Procedure of BSC-KPI Establishment and Implementation

OKR (Objectives and Key Results) Method
• A popular performance management framework that helps organizations set goals, track progress, and measure
success.
– The method is designed to align individual, team, and organizational objectives with measurable outcomes.
Operational Mechanism of OKR Methods

Learning Objective 8-3

Enhancing the effectiveness of performance appraisal.
Effectiveness of Performance Appraisal
• Ensuring that the performance management system achieves its goals of improving employee performance,
fostering development, and aligning individual efforts with organizational objectives.
– A well-designed performance appraisal process provides both employees and managers with valuable insights into
strengths, areas for improvement, and potential growth opportunities.
Learning Objective 8-4
Understanding competency assessment.
Competency Assessment
• A process used to evaluate the skills, knowledge, behaviors, and abilities required for a particular job or role
within an organization.
– It involves assessing whether an individual possesses the necessary competencies to perform effectively and meet job
expectations.
– Competency assessments help organizations make informed decisions regarding recruitment, training, performance
management, and career development.
Type of Competency (1 of 2)

Learning Objective 8-5

Conducting performance appraisal interviews.
Performance Appraisal Interviews
• Be objective and fair
• Maintain a balanced approach
• Foster open communication
• Be empathetic
• Listen actively
• Provide actionable feedback
• Stay focused
• Follow up

Chapter 9 Labor Pay

Learning Objectives
9-1 Understand salaries, the objectives of the salary system,
and the various forms of salaries.
9-2 Describe incentive salaries in organizations.
9-3 Understand salaries in labor markets.
9-4 Identify factors influencing salary determination and legal
regulations regarding labor compensation in Vietnam.
9-5 Capture strategies and policies for labor compensation
Learning Objective 9-1
Understand salaries, the objectives of the salary system, and the various forms of salaries.
Salaries, Objectives of the Salary
System, and Types of Salaries
• Salary
– The amount of money an employer pays to an employee as agreed, including the
base salary for the job or position, salary allowances, and other additional
payments. This amount must not be lower than the minimum salary and must
ensure equality for jobs of equal value.
• Minimum Salary
– The lowest salary paid to an employee to ensure a minimum standard of living,
aligned with the socio-economic development conditions. It is determined based on
regions and is specified on a monthly or hourly basis.
• Regulations on Salary Payments
• Nominal Salary
– The monetary amount stated in the labor contract or wage agreement that the employee receives for their work. It is
the gross figure before deductions for taxes, insurance, or other contributions.
• Real Salary
– The purchasing power of the nominal salary, reflecting the quantity of goods and services the salary can buy. It is
affected by inflation, the cost of living, and other economic factors.
 For example, if the nominal salary increases but the cost of living rises at a faster rate, the real salary may effectively
decrease. Conversely, if inflation is low or negligible, an increase in nominal salary leads to a higher real salary.
Income Structure

• Material Compensation
– Basic Salary: The agreed-upon base wage in the labor contract.
– Allowances: Additional payments for specific job-related factors, such as hazardous conditions, seniority, or location.
– Bonuses: Incentives or rewards for achieving performance goals or contributing to organizational success.
– Benefits: Support provided by the employer, such as health insurance, retirement plans, or transportation allowances.
• Non-Material Compensation:
– Opportunities for Promotion: Career advancement and professional growth prospects.
– Interesting Work: Engaging and challenging tasks that promote job satisfaction.
– Working Conditions: A supportive and safe work environment that enhances productivity and well-being.
Objectives of the Salary System in
Organizations
• Attract employees
• Retain talented employees
• Stimulate and motivate employees
• Ensure cost-effectiveness
• Comply with legal requirements
Forms of Salary
• Time-Based Salary
• Skill/Competency-Based Salary
• Performance-Based Salary
Learning Objective 9-2
Describe incentive salaries in organizations
Incentive Salary
• Wage benefits designed to stimulate employee enthusiasm and motivation in their work.
Three Levels of Incentive Pay
• Individual Incentives: Rewards based on the performanceor achievements of an individual employee.
• Team Incentives: Rewards provided to a group of employees for collective performance or team-based
achievements.
• Incentives Based on Overall Business Performance: Rewards linked to the overall success or results of the
company, encouraging employees to contribute to the business's broader goals.
Learning Objective 9-3
Understand salaries in labor markets.
Three Types of Labor Markets
• Labor Market for Workers and Office Staff: The market for manual labor and administrative employees, typically
involving positions in production, clerical work, and other basic roles.
• Labor Market for Professionals and Technicians: The market for skilled workers with specialized technical
knowledge or professional expertise, including engineers, IT specialists, and other technical experts.
• Labor Market for Managers: The market for managerial roles, including those in leadership, decision-making, and
strategic positions within organizations.
Learning Objective 9-4
Identify factors influencing salary determination and legal regulations regarding labor compensation in Vietnam.
Factors Affecting Salary Payment
Compare the Changes in the Minimum Wage
Paid Leave According to Regulations

Learning Issue
Capture strategies and policies for labor compensation
Three Main Contents of Labor
Compensation Strategy and Policy
• Competing with the external labor market;
• Fairness and efficiency within the organization;
• The organization and management of the labor compensation system.
Wage Strategy and Business Strategy

Supplement
Labor Relations
Learning Objectives
S-1 Understand the role of labor relations.
S-2 Describe collective labor agreements.
S-3 Understand workplace rules and labor disputes.
S-4 Understand international labor relations and job
satisfaction.
Learning Objective S-1
Labor relations
• The relationship between employers, employees, and the organizations (such as unions) that represent workers.
– It involves the interactions, negotiations, and processes that occur in the workplace regarding working conditions,
rights, duties, and responsibilities.
Workers
• From the age of 15, individuals are subject to the management, direction, and supervision of employers.
They have responsibilities and rights to work and receive wages according to the terms of the labor contract.
Employers
• Enterprises, agencies, organizations, cooperatives, households, or individuals who hire and utilize labor.
Three Stages of the Labor Relations
Process
1) Acknowledging the rights and responsibilities of the employer (management) and the labor organization
(union).
2) Negotiating labor agreements using appropriate strategies, tactics, and techniques to resolve impasses.
3) Managing the negotiated labor agreement, interpreting, and applying the terms of the labor contract on a daily basis.
Learning Objective S-2
Describe collective labor agreements.
Labor Agreement
• A document signed through collective bargaining, which includes company-level collective labor agreements,
industry-level collective labor agreements, and other types of collective labor agreements, provided they do not conflict
with legal regulations.
Process of Signing a Collective Labor
Agreement
1. The parties present their demands and negotiation topics.
2. Conduct negotiations based on reviewing each side’s demands and content.
3. Each side organizes to gather opinions on the draft agreement.
4. Finalize the draft collective agreement and proceed with signing.
Learning Objective S-3
Understand workplace rules and labor disputes.
Labor Regulations
• Legal Requirements: According to the Vietnam Labor Code, employers with 10 or more employees are required to have
written labor regulations.
• Main Contents: These include working hours, rest periods, workplace order, labor safety, workplace hygiene,
protection of assets, trade secrets, intellectual property, labor discipline violations, and disciplinary actions.
• Notification: The labor regulations must be communicated to employees and posted in relevant areas at the
workplace.
Principles and Procedures for Disciplinary Action
• The employer must prove the employee's fault.
– Disciplinary Actions: These include warnings, extending the salary raise period, or dismissal.
– Prohibited Actions: Physical assault, monetary fines, or disciplinary action against violations not specified in the labor
regulations.
– No Disciplinary Action can be taken against employees who are sick, detained, under investigation, pregnant, or nursing
a child under 12 months old.
Compensation for Damage
• Employees who damage the employer’s property must compensate for the damage according to the value of the
loss.

– Exemptions from Compensation: If the damage is due to natural disasters, fires,

epidemics, disasters, or other unavoidable, uncontrollable events.
Labor Disputes
• Labor disputes are conflicts regarding rights, obligations, and benefits between parties in the course of establishing,
performing, or terminating labor relations.
– Types of Disputes: Individual and collective labor disputes.
– Principles for Resolving Labor Disputes: Respecting the rights of both parties, ensuring transparency, timeliness, and
legality in the resolution process.
Rights and Obligations of the Parties in Labor Disputes
• Rights: To participate directly or through a representative, request a change of the person handling the dispute if
there is concern about impartiality.
• Obligations: Provide full and timely documentation and evidence to support their claim, comply with agreements, and
decisions that have legal force.
Procedures for Resolving Labor
Disputes
• Mediation: Before seeking the involvement of arbitration boards or courts, mediation must be completed within
working days.
– If Mediation Fails: The dispute can be submitted to the Arbitration Council or the Court for resolution.
Guidelines for Management
• Managers are responsible for handling disputes fairly while maintaining leadership authority and following legal
regulations.
– Do's: Listen to and resolve disputes fairly and reasonably.
– Don'ts: Make illegal settlements or refuse to address disputes.
Learning Objective S-4
Understand international labor relations and job satisfaction.
Labor Standards and Regulations
• Each country has its own labor laws and regulations that govern working conditions, wages, working hours, and
employees' rights.
– International organizations, such as the International Labor Organization (ILO), set global labor standards that member
countries are encouraged to follow, aiming to protect workers' rights, improve working conditions, and promote fair
labor practices worldwide.
Labor Unions and Collective
Bargaining
• Labor unions play a significant role in advocating for workers' rights and negotiating collective agreements.
– In some countries, unionized labor is more prevalent, while in others, collective bargaining is less common or heavily
regulated by the government.
Cross-border Labor Mobility
• International labor relations also cover the movement of workers across borders, including migrant workers and
expatriates, and the rights associated with cross-border employment.
– Issues such as fair wages, safe working conditions, and workers' rights are critical for managing a global workforce.
Job Satisfaction
• The level of contentment or happiness employees feel toward their work. It is a critical factor in employee
motivation, productivity, and overall well-being.
– Job satisfaction is influenced by various factors, including work environment, relationships with colleagues,
compensation, job roles, and personal values
Impacts of Job Satisfaction
• Increased Productivity
• Reduced Turnover
• Better Mental Health
• Enhanced Company Performance