SCIENTIFIC RESEARCH REPORT TOPIC ANALYZING HUMAN RESOURCE STRATEGY OF VINAMILK IN VIETNAM FROM 2016 TO 2018

HO CHI MINH CITY UNIVERSITY OF FOREIGN LANGUAGES - INFORMATION TECHNOLOGY FACULTY OF INTERNATIONAL BUSINESS ADMINISTRATION -*** SCIENTIFIC RESEARCH REPORT TOPIC: ANALYZING HUMAN RESOURCE STRATEGY OF VINAMILK IN VIETNAM FROM 2016 TO 2018 Student’s name: Nguyễn Huỳnh Phúc Thịnh ID Number: 18DH480818 Class: KN1802 Instructor: Dr Nguyen Nhat Tan HCMC, December / 2020 Abstract Human resource management always plays an important role in an organization, the success or failure of the organization is always closely related to this factor Human Resource Management is a true art, there is no more difficult management job than people management In this research paper, we will look at what that art is through Vinamilk's HR strategies Factors that help Vinamilk become the best workplace in Vietnam The purpose of the research is to analyze the HR strategies of Vinamilk in Vietnam from 2016 to 2018 The author analyzes the data collected from companies, magazines, articles, later That compares with two important theories X (Douglas MC Gregor, 1960) and Z theory (W.Ouchi, 1970) to see the difference The author approaches the secondary data source to analyze and evaluate, then give the research results Find out problems and come up with solutions for the company to improve and grow more and more Keywords: Vinamilk, human resource management, HR strategies Table of Contents Chapter 1: Introduction .7 1.1 1.2 1.3 1.5 Rationale .7 Aims Scope Structure .9 Chapter 2: Literature Review 10 2.1 Overview of the company 10 2.1.1 Brief information .10 2.1.2 Historical development 10 2.1.3 Mission, vision and strategy 11 2.1.4 Scope of operation, product concepts and Competitive advantages: 11 2.1.5 Market share 13 2.1.7 Company’s problem 14 2.2 Concepts and definitions 14 2.3 Theories 15 2.3.1 Overview of the theories 15 2.3.2 The importance of Human Resource Management .15 2.4 Previous studies 16 Chapter 3: Methodology 17 3.1 Research design 17 3.1.1 Features of secondary methods .17 3.1.2 Reason for using secondary research method 17 3.2 Source of data 18 3.2.1 Book and article .18 3.2.2 Company’s website 18 3.2.3 The library, proquest .18 3.2.4 Reports 18 3.2.5 Other online website 18 3.3 Data collection 18 3.3.1 Google tools 18 3.3.2 Internal library system in school 18 3.3.3 Data systems on platforms and websites official 18 3.4 Data analysis .19 Chapter Finding and discussion .20 4.1 The administrator's behavioral culture with subordinate employees .20 4.1.1 Performance .20 4.1.2 Assessment 22 4.2 Create awareness for employees .23 4.2.1 Performance .23 4.2.2 Assessment 24 4.3 Middle management issue, who makes the connection between senior management and employees 25 4.3.1 4.3.2 Performance .25 Assessment 26 Chapter 5: Conclusion and Recommendations 27 5.1 5.2 Conclusion 27 Recommendations 27 List of abbreviations HRM Human Resource Management VNM Vinamilk HR Human Resource List of Figures Figure 2.1: Historical development of Vinamilk 10 Figure 2.2: Milk market share from 2016 to 2018 in Vietnam (%) 13 Figure 2.3: Vinamilk revenue (2016 - 2018) _14 Figure 4.1: Top companies with the best workplace in Vietnam 2016 21 Figure 4.2: Top companies with the best workplace in Vietnam 2017 21 Figure 4.3: Top companies with the best workplace in Vietnam 2018 22 Figure 4.4: Vinamilk revenue (2016 - 2018) _24 Figure 4.5 Organizational structure and positions of management levels _25 Chapter 1: Introduction 1.1 Rationale Regarding the potential of the industry, Vietnam is considered to be a worthy dairy market to exploit with the amazing numbers it shows In the market "liquid milk", if customers can meet the demand, it can reach more than 34,000 billion VND, while in the market "powdered milk" is more than 48,000 billion VND This is both a great opportunity for Vinamilk to continue to develop and expand its market share, but it also shows that Vietnam is a competitive market and competitors will appear constantly VNM has to continue to grow because as long as they stand still, they are lagging behind the rest of the competition and losing their market share [CITATION VIR20 \l 1066 ] Vinamilk's full name is Viet Nam Dairy Products Joint Stock Company is the business activity in Food Manufacturing A big man in the dairy industry in Vietnam beside competitors such as: TH True Milk, Tan Hiep Phat, Nutifood and so on Vinamilk (VNM) demonstrates its strength by gaining market in turn 54.5 percent, 58 percent and 55 percent respectively in 2016, 2017 and 2018 [CITATION Tâm19 \l 1066 ] Human Resources is a very important part of every company Through the analysis of the Western theories X, Y, Z we will understand more about human resource management However, since management is still an art, not rigid, it is up to each administrator to combine the above theories Through theory, we will learn the tips that leaders possess to apply and bring the company to success.[CITATION sag15 \l 1066 ] Vinamilk also has its own problems, despite being regarded as one of the places with the best working environment in the world A common example is the possibility of not having a replacement The explanation is that they did not find qualified talent promptly to replace former employees who worked at the company [CITATION Ann19 \l 1066 ] There have been many researches on VNM in the past Two of them are "Evaluating brand openness according to the level of Vietnamese consumers of Vinamilk brand" [CITATION Phạ14 \l 1066 ] through methods used to analyze the data on looking for industry potentials to assess the openness and development of Vinamilk The second study is a study on corporate social responsibility performance at Vinamilk [CITATION ĐỗĐ13 \l 1066 ] with the aim of proving the social contributions of VNM after the successes of your own 1.2 Aims The purpose of this study is to find the art of leadership, the differences in people management between VNM and other companies and how VNM's strategies operate to explain the results why they are always choosing Top selection to rank in the top best working environment in Vietnam from 2016 to 2018 This analysis builds secondary data from other studies, then through the statistical process and data selection whether to give the best results With the above purpose, at the same time we also want to find gaps and spread good and successful things that VNM has achieved to many young people and other company leaders to bring Vietnamese economy men go up 1.3 Scope The article focuses on the research and information selection of articles from 2016 to 2018 in Vietnam market Focus analysis on HR strategy and the successes of HR strategy for the overall development of the company There is a bit of a limitation because these are data obtained from secondary data sources, there is not enough time and opportunity to approach and get statistical questions directly from VNM staff, so we have not gone into depth internal problems 1.4 Significance of the study This study plays an important role in potential success formulas as well as the limitations in HR strategy that companies are facing This analysis helps bystanders like us have a clearer view of the importance of HR strategy For VNM, it will help them to further improve their strengths and weaknesses From analyzing VNM's HR strategy from 2016 to 2018, the author has proposed a number of measures so that VNM can solve the problem of reducing a bit of pressure when working for its employees, creating in a competitive yet healthy environment 1.5 Structure This research paper consists of five chapters Chapter is an introduction, in this chapter, the author introduces the company, some achievements and issues related to the research such as the purpose, scope and importance of the research Second, Chapter is a literature review, this chapter presents an overview of the company such as development history, market share and competitors, and analyzes the theory of personnel X and Y In the chapter is the methodology, this chapter presents the methodology used in the paper and how to collect the data, the effectiveness of secondary data in scientific research Then, Chapter is the findings and discussion written about the situation the company did in the years 2016 - 2018 for evaluation and comparison with the theory Chapter is a conclusion and recommendation, which reaffirms the importance of HR strategy to the company's overall success and proposed solutions Chapter 2: Literature Review 2.1 Overview of the company 2.1.1 Brief information Vinamilk (VNM) is one of the largest dairy or dairy products companies in the Vietnamese market VNM's living coverage is very large, from the old to the children, no one knows about this brand In 2007, VNM was honored to be ranked in the top 15 most valuable companies in Vietnam VNM also shows its dominance with over 70 percent market share in the dairy market VNM currently has more than 94,000 points of sale covering 64 cities and provinces across Vietnam In addition, VNM is also ambitious to bring its products to export to many countries such as France, USA, Canada, Poland, Germany, besides some countries in the Middle East, Southeast Asia [CITATION Rub20 \l 1066 ] 2.1.2 Historical development Figure 2.1: Historical development of Vinamilk 10 and so on Chapter 3: Methodology 3.1 Research design 3.1.1 Features of secondary methods In analysis, the selection and collection of data is very critical, influencing the findings as well as the authenticity of a study There are many different types of research data, but there are two prominent ones: primary and secondary data So, what are primary and secondary data? How them different? Secondary data is a type of data collected directly at a time in response to a research problem of a certain researcher Each method of selecting data for research has its own pros and cons, but usually secondary data is always the priority for researchers to choose Secondary data also has its advantages This type of data has been used by scientists, sometimes ensuring the full professionalism and authenticity of that data Secondary data is also collected very easily through websites, articles, [ CITATION Kas19 \l 1066 ] However, the secondary data has some drawbacks, such as the fact that the sources of misinformation from websites are not reliable enough In addition, secondary data also has a weakness that the information is not updated continuously in each period to match the time of research [ CITATION Kas19 \l 1066 ] 3.1.2 Reason for using secondary research method The use of secondary data in this study has an essential benefit of utilizing the experience gained through research papers and data available from previous researchers There are also three very important benefits that make it a lot easier to use secondary data in this study First, data is easily collected through the Internet or public library, Secondly, we can easily recognize false and inaccurate information after consulting through many data sources of different researchers The finally, equally important thing is to limit the cost of data collection as well as the time that we have to spend [ CITATION Que17 \l 1066 ] Going back to this study, the importance of secondary data collection will help us get the most accurate figures and assessments of Vinamilk (VNM) These data will show 17 different changes from year to year, the sales increase or decrease, the market share increases or decreases All of these things have a strong influence on the management apparatus of the Company and the HR management strategies that are indispensable in this success 3.2 Source of data Secondary data is very diverse We can easily access and collect them in places but: articles, data on live websites and especially the official website of the company, in the library, in books, in reports on the Internet, 3.2.1 Book and article: www.sciencedirect.com 3.2.2 Company’s website: https://www.vinamilk.com.vn/ 3.2.3 The library, proquest: http://lib.huflit.edu.vn 3.2.4 Reports: http://CafeF.vn/doanh-nghiep.chn 3.2.5 Other online website The domestic websites have a high reputation and are widely used by other researchers 3.3 Data collection To save a lot of time and money The author has done this research through familiar channels and tools such as data system on Google tools, internal library system in schools and data systems on platforms and websites official 3.3.1 Google tools Easily search and access articles, reports and books to explain definitions of research problems, solve sales figures, revenue 3.3.2 Internal library system in school This is a valuable instrument for secondary data collection In order to help get the right details, the data in the library is highly theoretical and diverse 3.3.3 Data systems on platforms and websites official This data source allows to find basic facts, development history, and analysis with secondary data from market rivals without having to go to the company for research 18 Check for relevant data from the company's annual sales and profit figures, as market share and market growth are more reliably evaluated 3.4 Data analysis To obtain data and knowledge, this study uses a secondary research approach First, the author wants to get the company information, the author has to search for websites online, then analyze and filter the data As for the details, the author also searched, then estimated, compared, and compared between years through the annual financial statements Lastly, the author will analyze the research data By examining, estimating, and assessing secondary research methods to explain Vinamilk's human resource management techniques and related problems The analysis seeks relevant data to reliably quantify and assesses data to help clearly see the essence and importance of the research issue In addition, charts, statistics to display the development of history and comparison of market share, market growth of the business are also included in the research paper Often, pictures make ideas and definitions simpler 19 Chapter Finding and discussion 4.1 The administrator's behavioral culture with subordinate employees 4.1.1 Performance In an organization, administrators always have a huge responsibility They are required to establish a management structure that is consistent with the company's goals, criteria, finances and orientations When errors occur in the course of work, employees are often less responsible than managers That is why managers must always have the best calculation, judgment and behavior with their own employees, to help the company run smoothly and come to the nice results [ CITATION Mic77 \l 1066 ] For employees, managers need to take assertive measures, must know how to order, check and adjust their behavior towards the common good of the company Managers need to know and perform well behaviors in dealing with subordinates such as persuading, reprimanding, rewarding and sometimes being disciplined when there is a problem This will help employees have a framework and direction to move forward Do not cause any protest that adversely affects the organization's organization and the company's survival [ CITATION Lyn07 \l 1066 ] The leaders of Vinamilk (VNM) are doing their job very well They create a working environment that makes all employees work towards a common goal of the company This is also a key factor that makes VNM run smoothly and reach unexpected successes 20 2.1.5 Market share Figure 2.2: Milk market share from 2016 to 2018 in Vietnam (%) [CITATION Tâm19 \l 1066 ] As more and more rivals emerge on the market It makes the rivalry fiercer, but by maintaining a market share of around 50 percent, VNM still retains its position In particular, VNM still shows no sign of stopping and continues to retain its number one spot in Vietnam and expaining the international market 13 Renvenue of Vinamilk ( VND) 2016 1017 2018 52629000000000 47506000000000 43982000000000 2018 0 Revenue 0 0 1017 2016 2.1.6 Market growth Figure 2.3: Vinamilk revenue (2016 - 2018) [CITATION Khư18 \l 1066 ] Statistics show that annual sales have grown as impressively as market share Vinamilk have revenue VND 43,982 billion for 2016, VND 47,506 billion for 2017 (up percent ) and VND 52,629 billion for 2018 (increase 10 percent ) 2.1.7 Company’s problem Vinamilk also has its own problems, despite being regarded as one of the places with the best working environment in the world A common example is the possibility of not having a replacement The explanation is that they did not find qualified talent promptly to replace former employees who worked at the company.[CITATION Ann19 \l 1066 ] 2.2 Concepts and definitions Human resources are one of the significant resources that decide the life and growth of every organization Management of human resources is understood as one of the essential roles of the management process, addressing all human-related problems related to their work in every organization Management of human resources is an activity that is both scientific and creative, since management of human resources is a field that is more connected to the culture of the organization and includes more human values than any 14 other field of management any other counselling Human resource management includes many activities such as: talent acquisition (recruitment), branding employment, training and development (organization development), compensation and benefit Each of these arrays has links and interactions with each other Create the success of the HR department and the overall success of the company [CITATION Voe \l 1066 ] 2.3 Theories 2.3.1 Overview of the theories Human resources are one of the significant resources that decide the life and growth of every organization The problem of human capital, therefore, is still of primary concern Management of human resources is understood as one of the essential roles of the management process, addressing in every organisation all the human-related problems connected with their work Management of human resources is an activity that is both science and creative, because the management of human resources is an area that is more attached to the corporate culture and includes more human values than any other field of management [CITATION Voe \l 1066 ] In hr management, there are many different definitions and fields such as: talen acquisition, branding employment, training and development (organization development), compensation and benefit, human resources business partner However, the study will focus on three main factors are: the administrator's behavioral culture with subordinate employees, create awareness for employees and middle management issue, who makes the connection between senior management and employees [ CITATION Sco15 \l 1066 ] 2.3.2 The importance of Human Resource Management We learn more about the management of human capital by the study of the Western theories X, Y, Z The importance of managing human resources is to assist in the creation and orientation and control of the human resources apparatus so that it works in compliance with the organization's strategic objectives Moreover, successful management of human resources has an impact on employees' working environment, 15 including inspiring factors to improve labor efficiency on all employees in the enterprise It is these factors that will affect the company's growth [ CITATION AFC18 \l 1066 ] 2.4 Previous studies There have been many studies on VNM in the past Three of them are "Evaluating brand openness according to the level of Vietnamese consumers of Vinamilk brand" [CITATION Phạ14 \l 1066 ] through the method of analyzing industry potential search data to evaluate price of the opening and development of Vinamilk This research helps to speed Vinamilk's scale expansion and development in the near future The second study is a study of corporate social responsibility activities at Vinamilk [CITATION ĐỗĐ13 \l 1066 ] with the aim of demonstrating the contribution to society of VNM after the company's successes And the last one is the Analyzing Factors Affecting Customers' Loyalty to Vinamilk's Fresh Milk in Gia Lam, Ha Noi [ CITATION Đặn16 \l 1066 ] with the aim of finding out the determinants of customer loyalty to Vinamilk This will be an important study to help VNM's sales department have the right strategies to increase company revenue 16 Chapter 3: Methodology 3.1 Research design 3.1.1 Features of secondary methods In analysis, the selection and collection of data is very critical, influencing the findings as well as the authenticity of a study There are many different types of research data, but there are two prominent ones: primary and secondary data So, what are primary and secondary data? How them different? Secondary data is a type of data collected directly at a time in response to a research problem of a certain researcher Each method of selecting data for research has its own pros and cons, but usually secondary data is always the priority for researchers to choose Secondary data also has its advantages This type of data has been used by scientists, sometimes ensuring the full professionalism and authenticity of that data Secondary data is also collected very easily through websites, articles, [ CITATION Kas19 \l 1066 ] However, the secondary data has some drawbacks, such as the fact that the sources of misinformation from websites are not reliable enough In addition, secondary data also has a weakness that the information is not updated continuously in each period to match the time of research [ CITATION Kas19 \l 1066 ] 3.1.2 Reason for using secondary research method The use of secondary data in this study has an essential benefit of utilizing the experience gained through research papers and data available from previous researchers There are also three very important benefits that make it a lot easier to use secondary data in this study First, data is easily collected through the Internet or public library, Secondly, we can easily recognize false and inaccurate information after consulting through many data sources of different researchers The finally, equally important thing is to limit the cost of data collection as well as the time that we have to spend [ CITATION Que17 \l 1066 ] Going back to this study, the importance of secondary data collection will help us get the most accurate figures and assessments of Vinamilk (VNM) These data will show 17 different changes from year to year, the sales increase or decrease, the market share increases or decreases All of these things have a strong influence on the management apparatus of the Company and the HR management strategies that are indispensable in this success 3.2 Source of data Secondary data is very diverse We can easily access and collect them in places but: articles, data on live websites and especially the official website of the company, in the library, in books, in reports on the Internet, 3.2.1 Book and article: www.sciencedirect.com 3.2.2 Company’s website: https://www.vinamilk.com.vn/ 3.2.3 The library, proquest: http://lib.huflit.edu.vn 3.2.4 Reports: http://CafeF.vn/doanh-nghiep.chn 3.2.5 Other online website The domestic websites have a high reputation and are widely used by other researchers 3.3 Data collection To save a lot of time and money The author has done this research through familiar channels and tools such as data system on Google tools, internal library system in schools and data systems on platforms and websites official 3.3.1 Google tools Easily search and access articles, reports and books to explain definitions of research problems, solve sales figures, revenue 3.3.2 Internal library system in school This is a valuable instrument for secondary data collection In order to help get the right details, the data in the library is highly theoretical and diverse 3.3.3 Data systems on platforms and websites official This data source allows to find basic facts, development history, and analysis with secondary data from market rivals without having to go to the company for research 18 Check for relevant data from the company's annual sales and profit figures, as market share and market growth are more reliably evaluated 3.4 Data analysis To obtain data and knowledge, this study uses a secondary research approach First, the author wants to get the company information, the author has to search for websites online, then analyze and filter the data As for the details, the author also searched, then estimated, compared, and compared between years through the annual financial ... still retains its position In particular, VNM still shows no sign of stopping and continues to retain its number one spot in Vietnam and expaining the international market 13 Renvenue of Vinamilk. .. Drinking Yoghurt, Vinamilk and Vinamilk Su Su and so on Vinamilk' s nutrition products for children from 6-24 months old And finally Vinamilk' s market share of adult nutrition products with Vinamilk. .. operate to explain the results why they are always choosing Top selection to rank in the top best working environment in Vietnam from 2016 to 2018 This analysis builds secondary data from other