ANALYSIS OF HUMAN RESOURCE MANAGEMENT ACTIVITIES OF pg VIETNAM COMPANY TRAINING AND DEVELOPMENT

UNIVERSITY OF TECHNOLOGY AND EDUCATION FACULTY FOR HIGH QUALITY TRAINING 🙦🙦🙦🙦🙦 COURSES: HUMAN RESOURCES MANAGEMENT TOPIC: ANALYSIS OF HUMAN RESOURCE MANAGEMENT ACTIVITIES OF P&G VIETNAM COMPANY - TRAINING AND DEVELOPMENT LECTURERS: LÊ THỊ KIM KHANG STUDENTS STUDENT ID HO CHI MINH 2022 UNIVERSITY OF TECHNOLOGY AND EDUCATION FACULTY FOR HIGH QUALITY TRAINING 🙦🙦🙦🙦🙦 -JOB BOOKING SCHEDULE Major: Industrial Management Course: 2019 School year 2021 – 2022 TABLE OF CONTENTS CHAPTER 1: PREFACE 1.1 1.2 The reason for choosing the topic Research objectives 1.3 Research Methods 1.4 Object and scope of the research 1.5 Content CHAPTER 2: LITERATURE REVIEWS 2.1 Overview of multinational companies 2.1.1 Definition of the multinational company 2.1.2 Operational characteristics of multinational companies 2.2 Basic theories of international human resource management 2.2.1 The concept of international human resource management 2.2.2 Components and constitutive elements of international human resource management CHAPTER 3: OVERVIEW OF P&G COMPANY 3.1 Formation and development process 3.2 Business culture of P&G Vietnam company 3.2.1 P&G's view of employees 3.2.2 Basic Values 3.3 Functions and tasks of P&G Vietnam CHAPTER 4: THE CURRENT SITUATION OF HUMAN RESOURCES OF P&G COMPANY 4.1 Human resource recruitment policy of P&G Vietnam company 4.2 Training and development program 10 CHAPTER 5: CONCLUSION 15 REFERENCES 16 CHAPTER 1: PREFACE 1.1 The reason for choosing the topic Human resources play an extremely important role in the development of any organization In international business, we have to pay more attention to this issue because international businesses operate in national environments with differences in labour or market, culture, legal system, economic system, and political system Therefore, human resource management plays a particularly important role in contributing to the success of businesses, especially multinational companies With a passion for the field of human resource management, the group chose the topic "Analysis of human resource management activities of P&G Vietnam company - Training and Development" This subject is a study of how multinational companies around the world have applied to implement international human resource management The issue of training that multinational companies conduct, and how different from domestic human resource management, will be discussed in detail in the topic In addition, the topic also reflects the current situation of human resource management of a world-famous multinational company - Procter & Gamble (P&G) in the Vietnam market Because of the limited resources, the topic only delves into the policies that P&G implements toward Vietnamese employees 1.2 Research objectives Based on the theoretical and cognitive synthesis of knowledge about international business administration along with research methods which approach scientific and the guidance of lecturers, I have conducted research on human resources management issues in multinational companies As you know, from the perspective of an administrator, we need to grasp and come up with policies that are suitable for our employees This study also helps those who aspire to become employees of a multinational company better understand the policies offered by the parent company and boldly give suggestions if there are policies that are not really suitable for them From the analysis of human resource management activities of P&G Vietnam company, we will see more clearly the role, positive and negative effects of international human resource management policies 1.3 Research Methods The topic is researched through data collected from the official website of P&G and other websites On that basis, using dialectical materialism, analysis, synthesis, deduction, and application of knowledge learned about human resource management to make recommendations and solutions to improve human resource policies in the Vietnamese market of this multinational company 1.4 Object and scope of the research ● Object: Learning and analyzing human resource management activities of P&G Vietnam company ● Scope: Policies for employees working for P&G Vietnam Co., Ltd 1.5 Content ● Chapter 1: Preface ● Chapter 2: Literature Reviews ● Chapter 3: Overview of P&G company ● Chapter 4: The current situation of human resources of P&G company ● Chapter 5: Conclusion CHAPTER 2: LITERATURE REVIEWS 2.1 Overview of multinational companies 2.1.1 Definition of the multinational company A multinational corporation (MNC) has operations and assets in more than one country(Kalyanee Deshmukh, 2021) A multinational corporation typically has offices and factories in several locations and a centralized headquarters where worldwide management is coordinated Some of these corporations, often known as international, stateless, or transnational commercial entities, may have budgets that exceed those of some small countries 2.1.2 Operational characteristics of multinational companies Here are some common characteristics of MNCs in the world: ● Very high assets and turnover: To become a multinational corporation, the business must be large and must own a huge amount of assets both physically and financially The company's goals should be very high and they can generate substantial profits ● Network of affiliates: Multinational companies maintain production and marketing activities in different countries A head office in the home nation is in charge of the administration of offices in other countries ● Growth: Multinational corporations are constantly evolving Even while operating in other countries, they strive to grow their economies of scale by continuously upgrading and conducting mergers and acquisitions ● Modern technology: When a company goes global, they need to ensure that their investment grows significantly To achieve significant growth, they need to leverage modern technology, especially in their manufacturing and marketing activities ● Highly specialized skills: Multinational companies aim to hire only the best managers who can handle large sums of money, use advanced technology, manage workers and operate a huge business organization ● Focus on Marketing and Advertising: One of the most effective survival strategies of multinational corporations is to spend a lot of money on marketing and advertising This is how they market all of their products and brands ● Good product quality 2.2 Basic theories of international human resource management 2.2.1 The concept of international human resource management International human resource management is a part of the human resource management process, especially because of international factors, "International" represents the diversity of nationalities in personnel and personnel from many different backgrounds being foreigners whose nationality is not Vietnam Because of that diversity and complexity, the component functions and human resource management also become more complicated(B.Elango, 2004) 2.2.2 Components and constitutive elements of international human resource management ● Components of international human resource management: Functions of international human resource management: Attracting human resources, training and developing, and maintaining human resources.(Milan et al., 2014) Countries participating in the operating process: Home country, host country and the third country Sources of human for the company by origin: Employees from Home country, host country or a third country ● Elements of international human resource management Cultural Education - human capital Economic system The political and social system CHAPTER 3: OVERVIEW OF P&G COMPANY 3.1 Formation and development process P&G Vietnam Company was established from a joint venture between P&G and Ordesco in 1995 After that, the company upgraded the old line and installed new lines such as soap, shampoo, and washing powder, The company officially entered the Vietnamese market on July 1, 1995 In addition to selling products in the domestic market, P&G Vietnam also exports some products to other countries such as the US, Canada, EU, ASEAN, Australia, New Zealand, India and Japan Currently, P&G Vietnam has about 950 employees In addition, the company also creates indirect jobs for about 1,500 people through its distribution system across the country Every year, P&G Vietnam spends a fairly large budget, about 800 million VND, for social and charity activities in Vietnam (Procter & Gamble Company, n.d.) 3.2 Business culture of P&G Vietnam company 3.2.1 P&G's view of employees Procter & Gamble's talent recruitment criteria must follow "8 standards": Leadership ability, good professional skills, honesty, straightforwardness, ability to develop, willingness to accept challenges, creativity, quick to solve problems and having a high team spirit These requirements not distinguish which is first, which is later and all are equally important 3.2.2 Basic Values People of P&G: The company always attracts and selects the most qualified people so that it can build a strong organization from within The promotion and reward of members are not discriminatory but only based on work results The company operates on the unwavering belief that all P&G employees – male or female – are always the company's most valuable asset Leadership: Leaders who are responsible in their field with a deep determination to deliver high results They centralize resources, remove organizational barriers, and develop every employee's ability to achieve top goals and strategies Ownership: P&G accepts personal responsibility for meeting business needs, constantly improving work systems and helping other members improve work efficiency Everyone is the owner of the company, considers the company's assets as their own, and tied their survival to the success of the company Integrity: P&G employees must always the right thing, and be frank and honest with each other Working on databases, acting in accordance with the content and spirit of the law Uphold the company's values and principles in every action and decision Aspiration to win: P&G is determined to lead in key areas of operations Therefore, the company is not satisfied with what it already has Each member aspires to rise, perfect and win in the marketplace Trust: As P&G employees, we must always respect our colleagues, customers, and consumers and treat them the way we want to be treated, trust each other's ability and goodwill, and trust each other that people will work best on the basis of trust 3.3 Functions and tasks of P&G Vietnam The company's strategy is to diversify the consumer goods industry and export markets with the support of the parent company to utilize the capacity of the production lines Concentrate on a number of domestic key products Producing high-quality goods at competitive prices Use resources effectively through training and coaching the necessary skills Invest human and material resources for innovations to help reduce production costs CHAPTER 4: THE CURRENT SITUATION OF HUMAN RESOURCES OF P&G COMPANY 4.1 Human resource recruitment policy of P&G Vietnam company The first days of the company's establishment tend to recruit employees with a university degree or higher into different positions in the company There are a few things worth noting during this recruitment phase: ● The salary difference between intermediate technical and university graduates, according to the company, during this period is not much ● Key positions are usually reserved for people who have graduated from abroad or are very experienced in the field in which they will be in the company ● Many new graduates are recruited during this period ● Many former workers of the Vietnamese joint venture partner have left for the reason that the output has decreased and this team does not meet the requirements of technological innovation Advantages: For young employees who have not been influenced or influenced by the old company culture, it will be easier to adapt to the company's culture and way of working Besides, it is easy to apply the job change model because they have certain basic knowledge In the early days, the company needed to build many programs and systems related to management according to the company's standards such as personnel management, safety, product quality and meeting the standards of the company The management requirements of the parent company have just served as the basis for the company's future development Disadvantage: At the highest, the percentage from university and above is over 80% and this is the burden factor later on: training costs, salary costs, there are many employees with university degrees who are not satisfied with their current roles and responsibilities, so they should leave This is even more evident when investing in Vietnam in this industry with modern, highly automated lines with few operators, which is not as economical as a lower investment but uses more manual labour Therefore, the cost of compensating former workers for their departure is quite high In later years, due to the focus on increasing output more than on humans, the shortcomings began to manifest in recent times: ● There are stages when new hires go into production right away Certain necessary awareness about the chain, quality management, safety, etc has not been guided, leading to a series of problems and incidents ● Always try to recruit enough people according to the calculation to reduce production costs, so the old people only have enough time to their jobs, not enough time to train new people ● Due to a lack of people with the necessary skills, management is burdened with too much work to do, to handle rising quality or safety incidents, to has no time to train, support employees, motivate, guide their employees in their work, help them feel developed, to be mature Therefore, new employees with real ability quickly leave the company to find another place with more opportunities to learn and develop ● Not focusing on employee evaluation, especially implementing the W&DP (Work & Development Plan), but moving to a smaller form of evaluation that only considers and evaluates employees based on their achievements in the year through the IC system (Individual Scorecard - list the jobs that employees have been assigned and done in the year as well as the results of those jobs: part of W&DP), not much attention to the direction of skill development and the employee's commitment to the organization 4.2 Training and development program 10 Each year employees will work with their line manager to review and evaluate their performance over the past year and develop a work plan as well as a training and training plan to meet the requirements of the assigned work for the coming years The training not only provides the necessary knowledge and skills for employees to confidently perform the assigned work but also the necessary skills to work with others, making it easier for them to integrate into the company and masterwork and self-improvement (Gospel, 2010) There are two types of training: providing theory in class or practice Subjects that provide skills or knowledge can be divided into three categories: ● The type of profession the employee is doing All departments have subjects from overview to in-depth to improve professional skills for employees in the department ● Types of general skills that employees need to help employees work with others or in groups effectively ● The form of management skills is usually reserved for potential managers or employees In general, departments must list the types of work in their department, and the knowledge and skills requirements required to perform that job Compare these requirements with the current status of employees in the department to guide training and training for employees in the department There are levels to evaluate the level of performance of certain job employees: ● Level 1: Only watch or assist skilled workers to ● Level 2: Allowed to the work with the supervision of skilled personnel ● Level 3: Allowed to the work without supervision ● Level 4: Be eligible to train and sign to recognize the people they train to achieve level for the jobs they are skilled at 11 Employees not only their job, but they also need to join a certain group of activities These small groups are tasked with providing knowledge, skills and tools to departments to increase their work efficiency Particularly for the Product Supply block, there are all groups, including: The Foundation Team supports its own organizational assessment departments Point out the strengths that need to be maintained, and the weaknesses that need to be overcome, creating a favourable environment for employees to work ● The Foundation Team supports its own organizational assessment departments Point out strengths to maintain, and weaknesses to overcome, and create a favourable environment for employees to work ● The Quality Management Team helps the departments understand and comply with QA regulations Provide tools to prevent product quality problems, and ways to deal with quality problems ● The Maintenance group is mainly for the production block (workshops) Suggest ways to prolong the use time and increase the reliability of the equipment to reduce production costs, and increase the reliability of supply to the market ● The Project Management Team provides tools to get a project on track; minimize errors in the design, construction and acceptance of the project, thereby reducing investment costs ● The Improvement Management Team provides tools for assessment and gives directions to focus on solving the main problems of an existing system or process but helps the system or process improve the quality of work significantly ● The Training & Training Management Group arranges and organizes classes according to the requirements of the departments; provides tools to 12 help the department plan, and track the training progress and results of the employees in its department ● The Safety Management Team helps departments understand and comply with the company's safety policies; provides tools to help the department analyze risk situations in order to take preventive measures ● The Records Management Support Group helps departments manage systems, records, documents, etc in a systematic and unified manner In the process of supporting other departments through the activities of the support group, employees also have the opportunity to learn from the work of other departments This understanding of each other's work is very favourable for working cooperation between departments as well as an opportunity for employees to review and find jobs that are interesting and suitable for their abilities These groups will be evaluated on an annual basis Team scores will influence approximately 20% of an employee's total contribution score for the past financial year General comments of the authors about the training program of P&G company: Advantages: In addition to formal classroom attendance, employees can find the courses they need to supplement their skills through the company's library, online public directory, or on the company's global intranet (intranet): a way to motivate employees in the company when they have the opportunity to learn and improve their skills: the need for Self-Perfection Many subjects are written in software in a way that helps employees train themselves after installing them on computers (learning in the form of CBT - Computer Based Training) or will learn directly on an intranet to satisfy the needs of Self-Performance Besides, there is a team of lecturers who are also company people: both satisfy the need to be respected and help the company reduce training costs from outside support Whether employees are trained or self-trained will be part of the evaluation of the work process and 13 promotion Therefore, this will be the driving force to help them always strive to learn more knowledge and skills such as Create an environment for employees to satisfy the needs of Respect and Self-Perfection In addition, employees equipped with more knowledge and skills will be more confident when dealing with their own work and more open to cooperating with others and other departments to solve common tasks for the same purpose of the company, helping them to easily integrate with other parts of the company such as Satisfying safety needs (more confidence in work), Social needs (knowing how to cooperate with team members and different group) Disadvantage: Firstly, the training cost is large, especially in the beginning because not all employees have their own computers so that it can be more convenient for selfstudy Second, Employee self-training is very good but if employees spend a lot of time sitting in front of the computer to learn knowledge, it means the number of time employees work to generate profits for the company reduction Third, Training not the right person, at the right time, due to business requirements is a huge waste Fourth, Training but not arranging jobs corresponding to what they are trained for will easily generate thoughts of leaving due to feeling unsatisfied with their current position Finally, not all employees want to be trained due to some limitations (especially manual labour) such as limited qualifications, fear of change, fear of learning more, etc 14 CHAPTER 5: CONCLUSION As we all know, multinational companies when investing in a certain country often bring the parent company's work management model to apply to the host country, and P&G Vietnam is no exception That helps the company to be consistent in management, data collection, and evaluating and comparing the activities of subsidiaries with each other But it is necessary to reconsider the level of adaptation that the company has applied in Vietnam P&G's human resource policies are based on the parent company's research and are applied to its subsidiaries, including P&G Vietnam At P&G Vietnam, the human resource situation in recent years has improved and innovated day by day The strong and bright points mentioned in the essay are young, dynamic and creative human resources and the company has built many management systems such as training personnel Human resources always build and develop following the company's values and working principles Employees are managed, and trained regularly and encouraged employees to train themselves more to improve their knowledge However, the company's strengths in human resources also lead to disadvantages such as spending too much on new employee training, compensation and benefits expenses Therefore, finding solutions to overcome the above situation is extremely necessary for a company with people-oriented business philosophy, values and operating principles like P&G 15 REFERENCES B.Elango (2004) Geographic Scope of Operations by Multinational Companies: An Exploratory Study of Regional and Global Strategies European Management Journal, 22(4), 431–441 Gospel, H and M Sako (2010) “The unbundling of corporate functions: the evolution of shared services and outsourcing in human resource management.” Industrial and Corporate Change 19.5, 1367–1396 Kalyanee Deshmukh (2021, October 25) What Is An MNC Aishwarya Sandeep Milan, R., Milan, B., Marko, C., Jovanovic, V., Dalibor, B., Bojic, Z., & Avramovic, N (2014) Implementation of Business Process Reengineering in Human Resource Management In Inzinerine Ekonomika-Engineering Economics (Vol 25, Issue 2) Procter & Gamble Company (n.d.) Procter & Gamble Company 16 ... field of human resource management, the group chose the topic "Analysis of human resource management activities of P&G Vietnam company - Training and Development" This subject is a study of how... elements of international human resource management ● Components of international human resource management: Functions of international human resource management: Attracting human resources, training. .. theories of international human resource management 2.2.1 The concept of international human resource management 2.2.2 Components and constitutive elements of international human resource management