The recruitment selection process of viendong assurance corporation (vass)

ACKNOWLEDGEMENT *)\.*)\.* I would like to express my profound gratitude to Professors of Ho Chi Minh City University of Foreign Languages and Information Technology for providing precious knowledge and giving valuable experience in the school year 2002-2006 Special thanks to Dr Nguyen Huu Than, my advisor, for his whole-hearted guidance, valuable advices and encouragement throughout my research I thank Dr Truong Quang Tuan, who helps us enthusiastically in regulating programs and supplying necessary materials so that we can finish the course successfully I especially appreciate the help of Viendong Assurance Corporation (VASS), who helped me in exchange information and experience, in supplying relative materials Finally, I would like to express my deepest appreciation to my family and classmates for their support and encouragement during the time I attended at this course June 25,2006 t:"~ LY HUYNH KIEU TRANG ADVISOR'S COMMENTS Advising Ly Huynh Ki€u Trang to write the topic "The Recruitment and Selection Process of Vien Dong Assurance Corporation" I have some following remarks: ABOUT THE STUDYING ATTTITUDE Ly Huynh Ki€u Trang has had a serious working attitude She has been serious about correcting her thesis many times and has contacted the advisor regularly With all of her enthusiasm she has successfully completed her paper in compliance with HUFLIT requirements ABOUT THE FORM • The research paper cover is designed in accordance sample • The paper layout is arranged clearly, elegantly, and the chosen font is easy to read; the colored paper at the beginning of each chapter helps readers distinguish different chapters easily with the school • The "table of content" pages are laid out clearly and brightly and the numerical codes are set in line with the school regulations • The figures list page is set after the "table of content" pages for ease of reference • The paper has introduction at the beginning of each chapter to introduce the main headings of individual chapter In addition, there is a summary paragraph at the end of each chapter so that it can cover the whole chapter • The paper has enough illustrated figures and charts with notes and quotations of the reference materials coded scientifically (the initial number is the chapter ordinal number, and next number is figure and chart ordinal number) • The top, bottom, left, and right margins of the paper sheets are appropriate to the international standards • The paper consists of "footnotes" cited from II references that are arranged alphabetically in accordance with the international standards II • The style is concise sometimes long and clear-cut However, the sentences are • The introduction chapter meets the requirements of a research paper including the purpose, the scope of the paper, research methods, and its contents ABOUT THE CONTENTS The research paper is logically structured In addition to the introduction chapter, the paper begins with Chapter I "The Literature Review" to provide the readers with some basic concepts of HR management, HR planning, job analysis, Recruitment and Selection Next, the author presents "Introduction to Vien Dong Assurance Corporation" in Chapter The main parts are in the next two chapters Chapter analyzes the company recruitment and selection activities In this chapter she has analyzed some advantages and disadvantages of recruitment and selection activities in VASS Based on this analysis, she concentrates on "Some Suggestions to Enhance the Recruitment & Selection Activities of Vass" in Chapter All of her suggestions are feasible CONCLUSION Considering the seriousness of the author in her preparation of the research paper as well as the seriousness in the scientific approach, I appreciate highly the research paper and recommend that the Board of Examination allow Ly Huynh Ki€u Trang to defend and pass this research paper with a very good grade (10 marks) Hochiminh City, July 5, 2006 Dr Nguy~n Huu Than III COMMENTATOR'S ASSESSMENT I I IV ABSTRACT Enteling 215t century, when discussing to the success or failure of an entrepreneur, people don't mention more to the capital or business strategies Instead of that, people often praise for good performances or blame bad results on the manager and his staff Thus, the role of human resource is most likely become more and more important In reality, if one company wants to be successful and famous, it depends on the competitive advantages that it owns such as: personnel, new technology, capitaL Every company can have the same capital, business scale; the same high technique but can not own the same human resource So the human resource not only is the most special competitive advantage but also creates a difference among those companies The company which owns a competent, skillful and creative staff shall hold 90% of the success One of many crucial roles of an excellent manager is "making a relevant recruitment decision on 4R: on the right number, of the right people, at the right time, at the right place" Thus, these managers have to create HR policies and developing strategies which are based on practical requirements of the company Recruiting right people and placing them on suitable position can help the company profitability save money, time, increase productivity and It is very necessary for the developing and survival of the entrepreneur It's also the reason why the author chooses the field of the recruitment & selection for her graduation paper entitled "The Recruitment and Selection Process of Viendong Assurance Corporation (VASS)" Choosing this area to discuss, the author wants to have the practical experiences of the current recruitment and selection process at VASS As the result of this research, the author can understand and find out these advantages and disadvantages that VASS has faced to And the author then will give some suggestions to build this current process more efficiently and effectively v The research is divided into Chapters: • Chapter 1: Literature related information Review- glvmg some basic definitions and of HRM, recruitment and selection which will support to the research • Chapter 2: Introduction to Viendong Assurance Corporation (VASS)- the information which helps the readers have an overview of VASS's backgrounds, business activities, and services such as: the establishment, development, organizational structure and so on • Chapter 3: Analyzing the Recruitment and Selection process of VASS- this Chapter analyzes the current recruitment & selection process of VASS Thus, the reader will know how this process is conducted and some remaining drawbacks All information which concern to this process is gotten with the permission of Human Resource Department and Administration Department • Chapter 4: Some Suggestions to Enhance the Recruitment and Selection Activities - the author will suggest some ideas to improve the current activities of recruitment & selection and the management of human resource VI CONTENTS Page • Acknowledgment • Advisor's Assessment 11 • Commentator's Assessment IV • Abstract V • Contents Vll • Figures Xl • Abbreviations Xll INTRODUCTION The Purpose of the Research 2 Scope and Limitation of the Research Research Methodology 4 Structure of the Research CHAPTER 1: LITERATURE REVIEW I AN OVERVIEW OF HUMAN RESOURCE MANAGEMENT A Definitions and Main Functions B The Importance of Recruitment & Selection II SUPPORTING ACTIVITIES 10 A Human Resource Planning 10 B Job Analysis 13 III RECRUITMENT 14 A The Recruitment Process 16 B The Recruitment Sources 16 Internal Source 16 Vll External Source IV SELECTION 18 19 A The Selection Process 20 B The Selection Methods 24 Interview 24 Methods ofInterviewing 25 Selection Test 25 CHAPTER 2: INTRODUCTION TO VIENDONG ASSURANCE CORPORATION (VASS) AN OVERVIEW OF VASS 29 A Establishment Process 30 B The Objectives ofVASS 31 C Some Remarkable Activities 31 II BUSINESS ACTIVITIES 32 A Business Field 32 B Business Analysis 32 The Growth Speed of VASS in the Insurance MarkeL 32 Investment and Financial Activities 34 The Results of Business Activities 35 C Some Remaining Disadvantages 36 III THE STRUCTURE OF ORGANIZATION 37 A VASS's Organizational Structure 37 B The Functions of VASS's Departments 37 Vlll The Functions, Duties and Authorities of President, Vice- President, Managers, Supervisors 37 The Functions, Duties and Authority of Every Department C Some Disadvantages 39 42 CHAPTER 3: ANALYZING THE RECRUITMENT & SELECTION THE LABOR FORCE'S SITUATION 45 A The Number of Employees 45 B Producti vity 46 C The Distribution of Labor Force 48 By Age & Gender 48 By Education 49 D The Labor Force Demand in 2006 II ANALYZING THE RECRUITMENT & SELECTION 51 52 A The Recruitment and Selection 52 Human Resource Planning 52 The Recruitment Process 54 The Selection Process 55 a Selection Activities 56 b Probationary Period 60 c Official Contract 61 B General Remarks on the Practical Recruitment & Selection at Viendong 62 IX III SOME REMAINING PROBLEMS 62 A The Job Orientation Program ofVASS 63 B Lacking of Specialist in the HR Department 64 C The Recruitment & Selection Process 64 D Finding an Effective Method to Manage the Human Resource Activities 65 CHAPTER 4: SOME SUGGESTIONS RECRUITMENT TO ENHANCE THE &SELECTION ACTIVITIES OF VASS I ORGANIZING THE JOB ORIENTATION DAy 68 II IMPROVING THE STRUCTURE OF HUMAN RESOURCE DEPARTMENT 73 III DIVERSIFYING THE SOURCES OF RECRUITMENT & SELECTION 77 A Executive Search Firm 77 B College Recruiting 79 C Work Samples or Simulations 81 IV APPLYING INFORMATION TECHNOLOGY INTO THE HUMAN RESOURCE MANAGEMENT 82 CONCLUSION 86 APPENDIX 88 REFERENCES 92 x Chapter 4: Some Suggestions to Enhance the Recruitment and Selection candidates Using the executive search firm, the Company not only can reduce the time-consuming but also can increase the recruiting effectiveness Many considerable advantages will be available when conducting the employment process with the helping of the executive search firms such as: The search firm reduces the screening of unqualified candidates The search firm eliminates those candidates uninterested in making the change The search firm handles all interviewing and scheduling logistics and manages the Company and candidates concerns throughout the process The search firm conducts professional referencing The search firm assists in negotiating the offer and reaching closer with the final candidate of choice There are just some of many advantages that the Company can benefit from the using of executive search firm In order to get the best results, the Company also needs to cooperate with the search firm by providing as much related information of the position and company's requirements as possible Thus, the executive search firm can know the recruiting position's requirements thoroughly and apply the most effective strategy for the Company Moreover, the Company should consider these below guidelines before choosing the executive search firm.4 Make sure that the firm is capable of conducting a thorough search Meet the individual who actually handle the company assignment If this person hasn't the ability to seek out top candidates and sell them on your company, it's unlikely you'll get to see the best candidates In wooing you as a new client, the search firm may send someone with Garry Dessler, Human Resource Management, Gp Cit., p1G8 78 Chapter 4: Some Suggestions to Enhance the Recruitment and Selection • record of successfully signing new clients This may not be the person who will the actual search Ask how much the search firm charges Search firm fees range from 25% to 35% of the guaranteed annual income of the position They are often payable one-third as a retainer at the out-set, one-third at the end of 30 days and one-third after 60 days Get the agreement in writing Choose the search firm you can trust with privileged information This person will find not only your company's strengths, but also its weaknesses Talk to some of the firm's clients Get the names of two or three companies for whom the firm has recently completed assignment Ask such questions as: "Was the recruiter's appraisal of the candidate accurate?" "Was the placement a success?" "Did the finn conduct a search, or just fill the job from its files?" "And did the recruiter accurately craft the job specifications?" In general, with the rapid development of VASS, it's very necessary to pay more attention to the source of executive candidates And the most qualified executive will be attracted effectively by using the executive search firm The Company can consider its situation or budget carefully before using the executive search firm method B COLLEGE RECRUITING For recruiting to be effective, it must not only attract the source of experienced candidates, but those of new graduated students They still have the enthusiastic, creative and energetic of youth and will be the potential resource of VASS in future The college recruiting method is also very suitable to apply because of the good and ongoing relationship of VASS with many Universities such as: Economic University, Banking University and Open-University Moreover, the Company can train these students fit to its needs over the next several years 79 Chapter 4: Some Suggestions to Enhance the Recruitment and Selection At first, the Company sends an employer's representatives to interview candidate, introduce to the Company and choose the qualified ones Of course, the Company will bear all associated expenses of this recruiting process If ineffective screening of these student candidates occurs, the Company will take loss and time-consuming Thus, the Company recruiter plays an important role in this attracting process The recruiter is seen as the primary and strong impression of the Company to students Therefore, the recruiter must be professional ones and chosen carefully Some factors should be considered by the Company in order to choose the effective college recruiter are:5 The good recruiters must be outgoing, self-motivated, and obviously good salespeople They also possess well-developed interpersonal skills because part of their responsibility should be to determine the job offers are accepted or rejected by candidates They should be very familiar with the company they represent because applicants want to discuss opportunities with someone they perceive to be knowledgeable about the Company And the recruiters need to be able to determine whether the applicant will fit into the value system of the organization Last but not least, the students prefer recruiters who have work experience in their specialties and have some personal knowledge of the university they are visiting If the Company can take full advantage of the on-going relationship with these Universities and well organize the college recruiting, the candidate's sources will be improved both on quality and quantity It is also a good opportunity for Company to strengthen its current and potential human resource And the requirements of development will be fully satisfied John M.Ivancevich Op Cit., p206 80 Chapter 4: Some Suggestions to Enhance the Recruitment and Selection C WORK SAMPLES OR SIMULATIONS The type of current selection tests should also be diversified Every position has its own requirements of skill, experiences and knowledge If the recruited candidate couldn't satisfy these requirements due to lacking of professional test, the Company has to spend more time and money for re-recruitment Thus, the suitable and specific test is truly required for each recruiting position And using work samples or simulation is seen as the more effective method In the author's opinions, the applying of simulations and work samples on selection tests is feasibility Because of almost every manager of VASS has the good knowledge and experience of work These managers know exactly what simulations and work samples are needed for the specific requirements of recruiting position A great part of the future practical work will be these simulations and work samples They should also participate in the designing of selection tests in addition to job providing of descriptions and specifications Their expertise will support for the efficiency of final recruiting decision Simulations and work samples are rapidly emerging as the future of occupational assessment Their use is based on the principle that the best way of predicting job success is to give individual tasks to That are representative of the types of thing they might have to in a particular job (simulations) or direct samples of the activities that are carried out in that job (work samples) Simulations or work sample tests are exercised that reflect actual job responsibilities and tasks The Company will place applicants in a simulated job situation and require them to handle tasks, activities or problems that resemble those found on the job The purpose of simulations or work sample test is to allow the applicant to demonstrate their job-related competencies in as realistic situation as possible Tests are conducted under controlled conditions for the purposes of consistency and faimess and can be developed using a number of different formats 81 Chapter 4: Some Suggestions to Enhance the Recruitment and Selection For instance, at VASS, with the underwriting position, the candidate is required to show how he or she will persuade customer to buy the services of Company Or on the position of marketing department, the candidate has to specify the target customer's needs and wants of travel insurance service And financial auditors are asked to review a set of records, interpret related legislation or regulations, identify issues and make recommendations From these work samples and simulations, Company can carefully re-evaluate the communication problem-solving, skills, negotiation, coping with pressure persuasiveness, decision of candidate making, These factors will solidify the final recruiting decision of the Company In order to have suitable and professional test, the Human Resource Department should cooperate with the recruiting department in researching, developing the specific job descriptions and job specifications This information provides a base of data which, if analyzed correctly, will help creating the practical simulations or work samples effectively IV APPLYING INFORMATION TECHNOLOGY INTO THE HUMAN RESOURCE MANAGEMENT Nowadays, thanks to the supporting of modem technology and computers, people can doing work faster and more effective Heavy tasks have been done by hi-tech machines and assembly-line technology It saves much time and cost for doing some important things else On the other hand, having the ability to make faster and better business decisions, the Company has owned one of many competitive advantages on global competition As you known, in the human resource management field, there are many activities have to be done such as: recruiting and selecting, training and developing, motivating employees to high quality, controlling the labor costs Moreover, with more than 500 employees and 2000 agents, the human resource management's activities of VASS are seem to be more complicate So, if don't have the logical system of HR management, the Company must 82 Chapter 4: Some Suggestions to Enhance the Recruitment and Selection spend more time and effort to control those activities Nevertheless, when using HR information system (HRIS) which has been designed to analyze information related to human resource, the Company can manage its manpower with ease The HRIS is used to engage in better planning and then making better decision These also are a major contribution to Company's competitive advantages on doing business Additionally, the human resource management's activities will be simpler and more convenient with the existence of human resource management software (HRMS) These HRMS serve as a computerized tracking system which provides numerous benefits such as: retaining the information for future use, controlling the recruitment and selection activities, recording payrolls From recruitment to retirement, let manage the most valuable assets "people" more effectively with HRMS solutions for human resource management and now the Company can fulfill the potential of workforce while minimizing administrative costs and complexity There are many forms of HRMS that Company can consider to choose the most suitable ones HRMS offers powerful, time-saving tools for managing every aspect of employee resources Attracting the best new employees, managing all personnel-related processes, implementing and tracking meaningful benefit programs, managing payroll, offering employee self-service capabilities, and delivering the information the Company managers and executives need to make better informed decisions faster Moreover, HRMS integrates with leading payroll service providers so employee information and payroll data can be easily shared In addition to its HR management functions, HRMS offers integrated capabilities for financial management, relationship project accounting, management business analytics, and HRMS also offers an agile human customer resource development system that supports a full range of HR needs from core administrative functions, such as tracking employee profile, payroll and benefits information to staff recruitment, career development and training 83 Chapter 4: Some Suggestions to Enhance the Recruitment and Selection In addition to these great advantages that HRMS will bring to the effective management, the Company should also consider the cost of setting up and maintaining this HRMS In the author's opinion, it is not too costly fee for the current scale of employee's number And the future potential benefits which the Company receives will be larger Summary The aim of recruitment and selection is to attract, retain and deploy people in roles that maximize their potential and contribution to the company objectives Improving recruitment & selection's activities is also a way to maintain the smooth operation of the human resource management Moreover, in order to enhance the effectiveness of human resource management, VASS's managers should regularly update their knowledge and experiences The author hopes that these presented suggestions will be feasible and successful applied in VASS in the near future Therefore, more and more qualified candidates will be attracted and the Company can take full advantages of this human resource effectively 84 CONCLUSION Conclusion Since the human society formed, people gathered together into groups, the need of management has been considered The higher the social-economic development is, the more complicated the management requires One of the management crucial matters is Human Resource Management entrepreneurs have plentiful capital and material resource, Even the modem technologies; it is also useless if they not apply efficient way to the management of their manpower Effective Human Resource Management enables organizations to enhance the quality of work, the profitability, the employee's morale and loyalty and so on The deciding factor of all managerial processes is employees, or now we have called it as: human resource Human is never exhausted resource Human resource is an integral pati of any organization The role of human resource is most likely become more and more important in every organization Its role is becoming more complex and vital as organizations seek ways to increase their competitive advantage Among these recruitment numerous activities of human resource management, and selection play a vital role Because whether a pool of qualified candidates can be hired or not, it depends on this recruitment and selection process Recruiting unqualified and incompetent employees will directly make many bad effects not only on managerial effectiveness and the quality of performance but also on the corporate culture Effective recruitment is pivotal to the successful day-to-day operation of any organization Moreover, the recruitment process is often the first experience the potential employee has of organization The candidate's ability can be matched to the abilities required by the job after the selection process Common selection process often includes obtaining completed application forms, interviewing candidates, testing and checking references and background Good selection will reduce the turnover, training and developing costs, and thereby produce stability, consistency, low operating costs and an ability to increasingly 86 Conclusion reward desired behavior By choosing the most suitable candidate is always better than the best ones The objective of the research is to analyze the recruitment and selection of VASS In order to make an easier following of the reader, some sound concepts of human resource management, recruitment and selection are introduced in the first chapter Next, the author introduced the overview of VASS in Chapter two Then, the current recruitment and selection process of the Company is analyzed by the author in the third Chapter Some suggestions to enhance the effectiveness of this process are presented at the last Chapter Having good knowledge of effective human resource management is vital for anyone who is working for any organization Thus, the aim of the research is to help the readers knowing more about the functions and activities of human resource management, especially of recruitment and selection Additionally, the author's expertise in this field has also been increased after finishing this research " 87 I I ~ APPENDIX Appendix • JOB DESCRIPTION Position Department Work Location Report to Human Resource Manager Human Resource Department Head Quarter, HCMC President A Duties and Responsibilities / Manage and execute the overall HR function and programs in the areas of training and development, compensation and benefits, selection and recruitment, succession planning and organization development / Support and advice management on effective and local best practices for HR policies, operations and admin / Implement and deliver HR consultation with local management to support business in achieving business objectives / Manage staffing activities, development plans as well as compensation matters or Vietnam operations ensuring alignment with company objectives / Ensure proper HR administration, in line with defined HR policies in order to meet the relevant legal obligations and business needs / Assist employees in attaining the highest level of health and productivity, eliminating occupational injuries and illness by providing high quality occupational and preventive health care B Requirements: / Bachelor Degree in Law / Foreign Trade / Administrative Business / Minimum years experience in similar positions / Good knowledge of Vietnamese labor laws and regulations / Willing to travel sometimes / Strong communication skills and organization skills c • Salarv and Bonus Range: • Salary: is paid according to payroll's regulation ofVASS • Bonus: bases on the length of time working and job performance • Benefits: health insurance, social insurance Human Resource Department President 89 r Appendix , I I " ~ CANDIDATE'S CHECKLIST Candidate's Name: Date of Birth: Job Position: Introduced by: Level Preliminary Interview Deep Interview Date: / ./200 Date: / ./200 Average Interviewer's Name: Interviewer's Name: Good Position: Position: Excellence Department: Department: l Bad Evaluation 4 Appearance Characteristics Self-Confidence Communication Knowledge Experience Language IT skills Reason for applying Understanding about VASS /40 Total Comment Ejected D Deep Interview Agreement ./40 Signature Starting day HRManager U Employment : / ./200 Probationary period: months President Ejected Signature D Probation salary: Official salary Department Manager • 90 Appendix r l APPLICATION FOR EMPLOYMENT Position: Introduced by: FuIl Name: Date of Birth: Place of Birth: Nationality: Marital status: ID Card No: Date of issue: Issued by: Contact Address: School Department r Language: English French Others A A A • IT skills: Win Word Excel Power Point Average Average Average II • D D D • From to : Male Female D EDUCATION AND SKILL Years • Sex Tel: Email: I Employer B B B D D D Degree D D D Good Good Good C C C D D D D D D ExceIlence ExceIlence ExceIlence D D D WORK EXPERIENCE Position Skills Experience • Reason for leaving: • Reason for applying • Expected Salary: HCMC, ./ /200 Signature • 91 Reference ,, REFERENCES I Balderson, D Wesley Small Business Management University of Lethbridge / Dessler, Garry Human Resource Management Prentice Hall, 9th edition, / Documents from Human Resource Department Dolan Simon L and Randall S Schuler Human Resource Management Nelson Canada, 1994./ "Executive Search Firm", Human Resource Management, accessed 12 June 2006] URL: http://www.Google.com "Human , Resource Management," Human Resource [Online, _ Management, [Online, accessed 16 March 2006] URL: http://www.Yahoo.com l Ivancevich, John M Human Resource Management New Jersey: / McGraw- Hill, 2003 Mondy, R.Wayne, Robert Resource Management M.Noe and Shane Premeaux Human New Jersey: Prental Hall, 2002 Oglivy, David "Hiring & Keeping the Best People ", Ho Chi Minh City, Vietbook, 2006 10 "Orientation", Human Resource Dictionary, [Online, accessed June 2006] URL: http://www.SHRM.org II Tran Kim Dung Human Resource Management Ho Chi Minh City, Thong Ke, 2003 92