The purpose of this study is to evaluate the current human resource management of the case company KGroup Joint Stock Company, Ho Chi Minh City. The objectives of this research paper is to identify and analyze the problems with KGroup HCMC’s recruitment and selection, using data and information provided by the company’s HR department, and to provide the case company with suggestion on how to improve its human resource management for further development. This research is focus in recruitment sources and methods, and selection methods used by KGroup HCMC. Secondary data would be gathered from internal data and records provided and used with permission of KGroup HCMC; secondary data will also include various research studies and internet based sources. Primary data would be collected via survey questionnaires and an interview; which would provide both qualitative and quantitative data.
Ho Chi Minh city - 2019 GRADUATION THESIS Major Business Administration Topic THE IMPORTANCE OF HUMAN RESOURCE MANAGEMENT AT KGROUP JSC, HO CHI MINH CITY Instructors: NICOLE BAUDISCH, MBA Student: TON THAT VU LUAN Student ID: 94011500973 FOREWORD First, I would like to give my sincere thank you to the Administration and the Staff of the Saigon International University During my 04 years of studying, SIU have created the best environment and conditions for students to study in a dynamic, professional academic environment, and specialized theoretical lessons and helpful life experiences, which has become a key helping me to access into real life Secondly, I would like to thank Ms Nicole Baudisch – my supervisor, for guiding me during my process in completing my internship, this report and my Graduation Thesis Thank you for your dedication and guiding me through each lesson at school and providing me with practical knowledge and valuable life experiences for my career development Finally, I would like to give my sincerely thanks to the entirety of K-Group Joint Stock Company for providing me with the experiences in real working environment by participated in the office, engage events and for sharing work experience and willing to help me improving this report Sincerely, Ton That Vu Luan i COMMITMENT I guarantee that this Thesis is accomplished by myself All collected data and analysis results that are presented in this report are the truth This Thesis does not coincide with any other scientific research Ho Chi Minh City, July 14th, 2019 Student Ton That Vu Luan ii SIU SUPERVISOR’S COMMENTS iii TABLE OF CONTENTS EXECUTIVE SUMMARY CHAPTER I INTRODUCTION CHAPTER II LITERATURE REVIEW Human Resource Management 1.1 What is Human Resource Management? 1.2 Human Resource Management functions and activities 1.3 Roles of Human Resource Management Recruitment 2.1 Definition 2.2 Goal of Recruitment 2.3 Sources and methods of Recruitment 10 2.4 Advantages and Disadvantages of Recruitment methods 11 2.5 Recruitment process 13 Selection 15 3.1 Definition and Selection objectives 15 3.2 Importance of Selection 16 3.3 Selection process and methods 17 iv Performance 19 4.1 Key Performance Indicator 19 4.2 Organizational Performance 21 CHAPTER III THE CASE COMPANY 23 CHAPTER IV RESEARCH DESIGN 27 Research objectives and question 27 Research methodology 28 2.1 Quantitative research method 28 2.2 Qualitative research method 29 Data collection 31 3.1 Primary data 31 3.2 Secondary data 32 3.3 Sources of data 33 CHAPTER V ANALYSIS AND EVALUATION 34 Results from secondary data 34 1.1 Recruiting process and selection methods 34 1.2 Recruitment sources and methods 37 1.3 Organizational performance 44 Results from primary data 47 v 2.1 Results from interview 47 2.2 Results from survey 49 CHAPTER VI CONCLUSION AND RECOMMENDATIONS 58 Addressing the research questions 58 1.1 “To what extent does K-Group JSC Ho Chi Minh City’s Recruitment and Selection practices are effective to meet its Human resources needs?” 58 1.2 “To what extent does K-Group JSC Ho Chi Minh City’s Recruitment and Selection practices are effective toward its Organizational performances?” 59 1.3 Addressing the main research question 60 Recommendations for K-Group JSC HCMC 61 REFERENCES 63 APPENDIX 67 vi LIST OF ACRONYMS CV – Curriculum Vitae HCMC – Ho Chi Minh City HR – Human Resource IT – Information technology JSC – Joint Stock Company KSA – Knowledge, Skills and Abilities vii LIST OF FIGURES – TABLES FIGURE 2.6.1 – The recruitment and selection process (Dessler, 2013) TABLE 1.2.1 – Number of candidates screened in accordance to recruitment sources over the years TABLE 1.2.2 – Number of candidates interviewed in accordance to recruitment sources over the years TABLE 1.2.3 – Number of candidates passed the selection process in accordance to recruitment sources over the years TABLE 1.2.4 – Number of candidates took the job offer in accordance to recruitment sources over the years TABLE 1.2.5 – Number of candidates applied and qualified in accordance to recruitment sources over the years TABLE 1.3.1 – K-Group HCMC’s Revenue and Net Profit (in billion VND) from 2017 to June 2019 TABLE 1.3.2 – Total number of employees working at the company and resigned from the company TABLE 1.3.3 – Annual employee turnover rate TABLE 2.2.1 – Recruitment request criteria and the extent of clarity of each as perceived by the HR members TABLE 2.2.2 – Internal obstructions and number of HR member agreed that it effect the recruitment process viii TABLE 2.2.3 – External obstructions and number of HR member agreed that it effect the recruitment process TABLE 2.2.4 – Response time from the HR Department to interviewed candidates TABLE 2.2.5 – Responses from employee survey on K-Group HCMC’s Recruitment and Selection works TABLE 2.2.6 – Responses from employee survey on results for each recruitment requests TABLE 2.2.7 – Responses from employee survey on the source of hiring information about their job TABLE 2.2.8 – Responses from employee survey on selection tests that respondents have taken TABLE 2.2.9 – Selection test in accordance to positions TABLE 3.1.1 – Responses from employee survey on additional information received during interviews ix x EXECUTIVE SUMMARY The purpose of this study is to evaluate the current human resource management of the case company - K-Group Joint Stock Company, Ho Chi Minh City The objectives of this research paper is to identify and analyze the problems with K-Group HCMC’s recruitment and selection, using data and information provided by the company’s HR department, and to provide the case company with suggestion on how to improve its human resource management for further development This research is focus in recruitment sources and methods, and selection methods used by KGroup HCMC Secondary data would be gathered from internal data and records provided and used with permission of K-Group HCMC; secondary data will also include various research studies and internet based sources Primary data would be collected via survey questionnaires and an interview; which would provide both qualitative and quantitative data Data gathered including insights from interview with K-Group HCMC’s HR Manager as well as opinions from the rest of HR Department and employees via online survey on the case company’s human resource management Data would be gathered from the HR department and employees from various department at K-Group HCMC Conclusions for this research will be presented at the final chapter of this paper, which would include answers for the research questions as well as suggestions for the case company regarding human resource management The results for this paper would include additional methods for each recruitment sources and additional selection methods, which would assist KGroup HCMC in order to improve its organizational performance CHAPTER I INTRODUCTION Human Resource Management can be agreed as one of the most widely discussed topic, and one of many major concerns among organizations; for it is made of individuals, in other words, people who contribute for its sustainability and growth Manpower is crucial for any establishment in order to accomplish necessary tasks to meet its goal; Therefore, organizations constantly looking for the most suitable people to fill in the right job to keep itself running and fulfill its vision Recruitment and selection can be agreed as a crucial task in human resource management These tasks’ primary objective is to bolster any organizations’ workforce, by create a large pool of potential individual and choose the best, most suitable one in order to accommodate said organizations’ growth and development needs In Vietnam, where Recruitment and talent acquisition in the corporate world is becoming a growing trend Both Vietnamese organizations and foreign companies alike are competing for the best people, in order to fulfill their respective missions and visions, as they reach out to the labor market through every mean possible in order to acquire the best people The case company for this paper is K-Group Joint Stock Company, a Vietnamese investment and management firm operating in a wide variety of industries including: Construction, Real-estate, advertisement-PR, Technology, Export The company has been growing steadily over the time and have expanded across the nation, and is now present in the north and central region of Vietnam The company’s initial branch in Ho Chi Minh city would be the main subject for this research This paper would examine the case company’s Recruitment and selection practices, as to what extent it affects the company’s overall performance Therefore, this thesis paper would answer the research question: “To what extend should K-Group JSC Ho Chi Minh City improve its Recruitment and Selection in order to improve its Overall performance?” In order to answer the afore-mentioned research question, this paper would answer the two following questions: To what extent does K-Group JSC Ho Chi Minh City’s Recruitment and Selection practices are effective to meet its Human resources needs? To what extent does K-Group JSC Ho Chi Minh City’s Recruitment and Selection practices are effective toward its Organizational performances? The paper would achieve its objective to answer the research question through the mean of collecting and analyzing primary and secondary data, which would be provided by the case company in question As well as providing practical suggestions to the case company The aim of this thesis paper is to assist K-Group Joint Stock Company, Ho Chi Minh City in their improvement of Human Resource Management, specifically in the field of recruitment and selection CHAPTER II LITERATURE REVIEW Human Resource Management 1.1 What is Human Resource Management? Robert L Mathis and John H Jackson define in their book Human Resource Management (12th edition), is that Human resource management is “designing management systems to ensure that human talent is used effectively and efficiently to accomplish organizational goals” (Mathis & Jackson, 2008, p 4) Dessler defines Human resource management as a “process of acquiring, training, appraising, and compensating employees, and of attending to their labor relations, health and safety, and fairness concerns” (Dessler, 2013, p 4) To consolidate from the above definitions, Human Resource Management can be understood as the effective and efficient utilization of an organization’s workforce through acquiring, training, appraising and compensating them in order to accomplish organizational goals In general, it is widely understood that the Human Resource department are responsible for the well-being of any organization’s workforce, hence ensuring organizational performance and productivity To be more specific, Dessler (2013), Mathis and Jackson (2008) respectively stated the four main responsibilities of HRM including: - Recruitment, staffing, and talent management - Training and developing human resources - Compensating human resources - Employee relations management 1.2 Human Resource Management functions and activities Dessler states that human resource management involves five primary functions, which are (Dessler, 2013, p 4): - Planning: to establish goals and standards; developing rules and procedures; and developing plans and forecasting - Organizing: to give each subordinate a specific task; establishing departments; delegating authority to subordinates; establishing channels of authority and communication; coordinating subordinates work - Staffing: Determining what type of people you should hire; recruiting prospective employees; selecting employees; training and developing employees; setting performance standards; evaluating performance; counseling employees; compensating employees - Leading: Getting others to get the job done; maintaining morale and motivating subordinates - Controlling: Setting standards such as sales quotas, quality standards, or production levels; checking to see how actual performance compares with these standards taking corrective action, as needed Also in his book, Dessler states Human Resources Management include six specialties, that are in accordance with the main responsibilities of HRM (Dessler, 2013, p 8): - Recruiters: Search for qualified job applicants - Equal Employment Opportunity (EEO) coordinators: Investigate and resolve EEO grievances; examine organizational practices for potential violations; and compile and submit EEO reports - Job analysts: Collect and examine information about jobs to prepare job descriptions - Compensation managers: Develop compensation plans and handle the employee benefits program - Training specialists: Plan, organize, and direct training activities - Labor relations specialists: Advise management on all aspects of union management relations Mathis and Jackson’s (2008) take on Human Resource management activities are mostly coincide with Dessler, with some additional activities are as follows: - Strategic HR Management: As part of maintaining organizational competitiveness, HR effectiveness can be increased with the use of HR measurement and HR technology Through HR planning, managers anticipate the future supply of and demand for employees An additional strategic HR concern is the retention of employees - Equal Employment Opportunity: Compliance with equal employment opportunity (EEO) laws and regulations affects all other HR activities The diversity of a workforce creates additional challenges For instance, a company must have sufficient diversity to meet affirmative action requirements - Staffing: The aim of staffing is to provide a sufficient supply of qualified individuals to fill jobs in an organization Job analysis lays the foundation for staffing by identifying what people in their jobs These analyses are used when recruiting applicants for job openings The selection process is concerned with choosing qualified individuals to fill those jobs - Talent Management and Development: Beginning with the orientation of new employees, talent management and development includes different types of training In addition, HR development of employees and managers is necessary to prepare for future challenges Career planning identifies paths and activities for individual employees as they move within the organization Assessing how well employees perform their jobs is the focus of performance management - Total Rewards: Compensation in the form of pay, incentives, and benefits rewards people for performing organizational work To be competitive, employers develop and refine their basic compensation systems and may use variable pay programs such as gainsharing and productivity rewards - Risk Management and Worker Protection: Employers need to address an increasing number of workplace risks to ensure worker protection It is a requirement for employers to meet legal requirements and be more responsive to concerns for workplace health and safety Also, workplace security has grown in importance along with disaster and recovery planning - Employee and Labor Relations: HR must address the relationship between managers and their employees, and also employee rights and privacy issues effectively It is important to develop, communicate, and update HR policies and procedures so that managers and employees alike know what is expected Some organizations also address issues regarding union/ management relations as well 1.3 Roles of Human Resource Management Robert and Mathis said that there are three roles in every organization human resource management, which are (Mathis & Jackson, 2008, p 10): - Administrative role: Focusing on HR clerical administration and recordkeeping - Operational and employee advocate roles: Managing most HR activities in keeping with the strategy that has been identified by management and serving as employee “champion” - Strategic roles: Helping to define the strategy relative to human capital and its contributing to organizational results Recruitment 2.1 Definition In Business Essentials Human Resource Management, the definition of recruitment “is a process whereby an organization communicate opportunities and information to the labor market in order to attract the quantity and quality of potential employees it requires to fulfill its human resource plan.” While Robert L Mathis and John H Jackson define in their book Human Resource Management (12th edition): “Recruiting is the process of generating a pool of qualified applicants for organizational jobs” (Mathis & Jackson, 2008, p 194) Dessler in his book Human Resource Management (2013), simply put the recruitment as process to find and attract a pool of applicants for open positions Recruitment is also defined as “The process of attracting individuals on a timely basis, in sufficient numbers and with appropriate qualifications, to apply for jobs with an organization” (Gusdorf, 2008, p 1) Opatha also define recruitment as “the process of finding and attracting suitably qualified people to apply for job vacancies in the organization” (as cited in Gamage, 2014, p 41) Similarly, Kumari defines recruitment as “a process of attracting prospective employees and stimulating them for applying job in an organization”, the author also added that it is the process of hiring the right candidate for the right job (Kumari, 2012) In general, recruitment can be understood as a process where companies try to attract a quantity of potential workers from the labor market by advertising their needs for filling particular vacant jobs and what opportunities they can provide in return to said potential workers in order to achieve their human resource plan, and their organizational plan as a whole 2.2 Goal of Recruitment The general purpose of recruitment is to provide the organization with a pool of potentially qualified job candidates (Gamage, 2014) According to Kumari (2012), the goals and benefits of the recruitment process are: - To create a talent pool of potential candidates for the benefits of the organization - To increases the pool of job seeking candidates at minimum cost - Help increasing the success rate of selection process by decreasing the number of visits qualified or over qualified job applicants - Helps in identifying and preparing potential job applicants who will be the appropriate candidature for the job - Helps in increasing organization and individual effectiveness of various recruiting techniques and for all the types of job applicants Henry and Temtime see recruitment as the entry point of manpower into an organization and the path an organization must follow from there on in order to make sure that they have attracted the right individuals for their culture and vibes so that the overall strategic goals are achieved (as cited in Ekwoaba, Ikeije, & Ufoma, 2018) Base on above statements, it can be seen that the goal of the recruitment process is to create a pool of potentially qualified candidates that could possibly fill in a particular position within an organization, and to attract the right individuals who can fit in with the organization’s culture and have the requirements that would meet its strategic goals ... LITERATURE REVIEW Human Resource Management 1.1 What is Human Resource Management? Robert L Mathis and John H Jackson define in their book Human Resource Management (12th edition), is that Human resource. .. talent management - Training and developing human resources - Compensating human resources - Employee relations management 1.2 Human Resource Management functions and activities Dessler states that... Roles of Human Resource Management Robert and Mathis said that there are three roles in every organization human resource management, which are (Mathis & Jackson, 2008, p 10): - Administrative