Recruitment and selection in saigin shoes joint stock company and recommendations to improve the situation

I I HO cm MINH CITY UNIVERSITY OF FOREIGN LANGUAGES AND INFORMATION TECHNOLOGY SCHOOL OF FOREIGN LANGUAGES GRADUATION PAPER Theme: Advisor : Mr.DANG THANH BINH,M.E.M Student : DANG NHU TRANG Class : HA0201 Student No.: 0271145 TV 09; HQc Huflil 1111111111111111111111111111 101000662 HO CHI MINH CITY, JULY 2006 RECRUITMENT AND SELECTION IN SAIGON SHOES JOINT-STOCK COMPANY AND RECOMMENDATIONS TO IMPROVE THE SITUATION Acknowledgement Abstract Index Page INTRODUCTION: CONTENT: Chapter 1: Literature review 1.1 Overview of human resource management 1.1.1 Human resource management 3 1.1.2 Support activities a) Human resource planning b) Job analysis 1.1.3 The importance of recruitment and selection process 1.2 Recruitment 10 11 1.2.1 Alternatives to recruitment 11 1.2.2 Internal recruitment 13 a) Internal sources ofrecruitment 13 b) Internal methods ofrecruitment 14 1.2.3 External recruitment 16 a) External sources ofrecruitment 16 b) External methods ofrecruitment 17 1.3 Selection 18 1.3.1 Environmental factors affecting the selection process 19 1.3.2 The selection criteria 20 1.3.3 The selection process 21 Chapter 2: Introduction to the Saigon Shoes Joint-stock Company 2.1 The history of Saigon Shoes Joint-Stock Company 29 2.2 Functions, tasks and objectives of the company 30 2.3 The organizational structure of the company 31 2.4 Future goals and tasks of the company 34 2.5 Business activitives: 2.5.1 Advantages 2.5.2 Disadvantages 34 , 35 Chapter 3: Analyzing the current recruitment and selection processes in the Saigon Joint-stock Company 3.1 The personnel situation: 3.1.1 The characteristics of the labor force 36 a) The educational level of the labor force 36 b) The age of the labor force 38 c) The sex of the labor force 39 d) The turnover rate of the labor force 40 3.1.2 The selection criteria 41 3.1.3 Employees database keeping procedure 42 3.1.4 Alternatives to recruitment 42 3.2 The current recruitment process: 3.2.1 Internal recruitment 44 a) Sources 44 b) Methods 45 3.2.2 External recruitment 45 a) Sources 45 b) Methods 46 3.3 The current selection process: 3.3.1 Indirect employees , 49 3.3.2 Direct employees 51 A Some strengths and weaknesses of the current recruitment and selection process 304.1 Strengths 53 304.2 Weaknesses 55 Chapter 4: Some recommendations 4.1 Human resource planning 59 4.2 The use of internal sources 60 4.3 The use of employment agency 61 404 The use of alternatives to recruitment 61 4.5 The recruitment process 61 4.6 The selection process CONCLUSION REFERENCES ~ 62 64 ADVISOR'S COMMENTS • .• • • • • ••••••.•• •••••• ••••••.• ••.••••••• .•••••• • •• EXAMINER'S COMMENTS • • • •• •.•• • • .• • • .• .•• •••• •••••••••• •••••• •.••••••• •••••.• .•••••••• • .• ••• •• .••••••••.• •••••• • • ••••••••• • • •••••• .••.•• • •••••••• ••••••• • .•••••••••••.•• • • ACKNOWLEDGEMENTS In order to complete this graduation paper, I have received a lot of help and invaluable advice from many helpful and respectful people First of all, I would like to send my special thanks to the School Management Board and teachers of Ho Chi Minh City University of Foreign Languages and Information Technology Especially, I would like to express my sincere thanks to Mr Dang Thanh Binh, M.E.M, my advisor who read through this paper with enthusiatic to give me support and valuable advice Without his helpful guidance, this research would not be finished I am very grateful to Department of Personnel and Administration of Saigon Shoes Joint-stock Company, who helped me in exchanging information and experience, in contributing opinions and supplying relative materials Last but not least, I truly express my gratitude to my family and my friends for their support and encouragement July 14,2006 Dang Nhu Trang ABSTRACT "Recruitment and selection in Saigon Shoes Joint-Stock Company and recommendations to improve the situation" is the subject of my graduation paper through the internship period at Department of Personnel and Administration of Saigon Shoes Joint-stock Company This study was conducted on theory and praticality of the observations and interviews with Saigon Shoes Joint-stock Company personnel managers to analyze the recruitment and selection processes of the Company The findings showed that Saigon Shoes Joint-stock Company's recruitment and selection processes had been doing their tasks well However, it also had a number of weaknesses Thus, some recommendations were given to the recruitment and selection activitives so that it could meet the requirements of current human resource management INDEX Figure 1: The human resource planning process Figure 2: The recruitment process 12 Figure 3: The selection process 22 Figure 4: The sex of the labor force in SSJ Company 39 Figure 5: The chart ofIncreasing and Decreasing of employees 40 Figure 6: A summary of the recruiting process 62 Table 1: Education level of the labor force in SJJ Company 36 Table 2: Age of the labor force in SSJ Company 38 Table 3: Increasing and Decreasing of employees : 40 Diagram 1: Indirect selection process in SSJ Company 49 Diagram 2: Direct selection process in SSJ Company 51 Graduation Advisor: paper DANG THANH BINH, M.E.M INTRODUCTION In recent years, together with the rapid economic growth and pressure of the global competition, the key task of all companies all over the world is try to maximize business's products and services supply to their customers effectively.In Vietnam, with the investment of many foreign enterprises, the competition is more and more severe Besides, identifYing challenges and planning a long-term strategy for human resource are essential if businesses try to expand their scale and increase their competitiveness Therefore, an enterprise focuses not only on finance, marketing, administrative management but also on human resource management because "Career is successful or fail due to men" (Konosuke, 1997) Human resource management includes recruitment and selection, training and development, performance appraisal Nevertheless, recruitment and selection processes are important tasks because when recruitment and selection are well done, an enterprise can attract qualified job applicants to increase the organization's effectiveness Therefore, this research analyzes the recruitment and selection processes in the Saigon Shoes Joint-stock Company This company is an enterprise who produces and outsources cloth shoes and bags for many foreign countries, so the Company always needs a large number of employees However, the company is usually in short of workforce and the recruitment and selection processes have to be carried out regularly Therefore, having an effective human resource management is an important factor in order to help the company achieve its goals This research aims at analyzing the recruitment and selection activities to improve human resource management in Saigon Shoes Joint-stock Company Moreover, after analyzing the current recruitment and selection process in the Saigon Shoes Joint-stock Company, this research will help human resource managers recognize that employees are important resources Therefore, human resource management must have a strategic visibility and must be considered as the most important task Student: DANG NHU TRANG Page Graduation • paper Advisor: DANG THANH BINH, M.E.M Step 4: Deep interview The managers of the departments having employment demands will be the recruiters These managers are people who have enough professional knowledge and experiences to evaluate whether this applicant is suitable for their business activities Meanwhile, this is also an important step for the interviewer investigates the applicants' feeling and aspiration if they are selected • Step 5: Selection decision After deep interview, the qualified applicant will be set up the name list to propose the Board of Directors to receive their selection decision The Director will make a decision based on the results deep interview That is the indirect selection process of the company It includes steps However, it is just a formality because for the indirect positions, most of applicants are introduced by current employees of the company Therefore, these five steps of selection process are carried out unspecifically This is a considerable problem of the company 3.3.2 Direct employees Application receipt Interview Physical examination Diagram 2: Direct selection process in the SSJ Company Source: Department of Personnel and Administration of the SSJC Student: DANG NHU TRANG Page 51 Graduation paper Advisor: DANG THANH BINH, M.E.M Direct employees selection process is quite different from indirect employees' one • Step 1: Application receipt This step is same as step of indirect employees' selection process • Step 2: Interview To direct employees, the interview is only occurred one time Ms Nga is the interviewer Regarding this position, the company does not require the applicants so much about their qualifications, professional skills and even experiences The applicant who has a hard-working attitude and the ability to accomplish his or her assigned tasks will be recruited In the interview, the interviewer only asks some common questions about candidates' personal, working experiences( if they have) and then introduces them to the supervisor of the workshop where they will work • Step 3: Physical examination In this step, the chosen applicant must pass through the physical examination The basic purpose of this step is to determine whether an applicant is physically capable of performing the work This step is carried out by the company's bureau of public health However, because of urgent labor needs, this step sometimes is skipped or delayed The company even accepts for a heart patient to work at the workshop of the company This matter is very dangerous because it can cause accident surprisingly According to the selection process in the Human Resource Management book of Mondy, Noe & Premeaux (2001), it must have eight steps However, this process in the SSJC has only steps for recruiting indirect employees and steps for recruiting direct employees This mistake makes the recruitment and selection processes of the company insufficiency It also leads to the situation of short of employees at all time Because the recruitment and selection processes are not carried out sufficiently, the company can not understand that the candidates whether Student: DANG NHU TRANG Page 52 Graduation paper Advisor: DANG THANH BINH, M.E.M suit the job, and the candidates also think that they can their jobs, so after working at the company for a short time, they recognize that they can not complete jobs or not like these jobs Consequently, employees are off work easily Then, the company is in short of employees, they must carry out the recruitment and selection everyday It costs time and money Therefore, having an appropriate recruitment and selection processes is a considerable problem of the company 3.4 SOME STRENGTHS RECRUITMENT AND AND SELECTION WEAKNESSES OF THE CURRENT PROCESS: 3.4.1 Strengths: In general, the recruitment and selection at SSJ Company can contribute well to the operation of the company With a large number of employees recruited every year, but the recruitment and selection still satisfY this demand The location of the company also gives an advantage to recruitment and selection tasks As a result, recruitment and selection in SSJ Company can recruit many qualified candidates for the company The development of Human resource management science also provides modern techniques for Department of Personnel and Administration to carry out recruitment and selection tasks To the specific tasks of recruitment and selection processes, there are some strengths that need to be stated out First, the utilization of internal sources of recruitment helps the company recruit employees quickly and effectively Recruitment with internal sources also encourages current employees to work harder and be more productive The internal sources for recruitment of the company are present employees and employees' acquaintances These sources are very useful to the company's recruitment and selection process with the lowest cost • Present employees: As we already know, the present employees have clearly understood the whole activities of the company and they had working experiences which they learnt from the superior and co-workers On the other hand, the company has more knowledge of their present employees' Student: DANG NHU TRANG Page 53 Graduation paper Advisor: DANG THANH BINH, M.E.M strengths and weaknesses Therefore, it is easy for the company to promote or transfer these employees at the suitable positions • Employees' acquaintances: Attracting and recruiting job applicants through the introduction of the company's employees are helpful in time and money saving The employees who are working in the firm often understand their friends are looking for ajob and have suitable conditions which the company is requiring Therefore, the employees want to introduce to the firm the qualified candidates This is an effective method because the company can refer to without any advertising expense Next, the use of employment agency is also an advantage of the Department of Personnel and Administration When transferring recruitment tasks to employment agency, Department of Personnel and Administration staff can save much time to other tasks Moreover, it is less expensive for the company to pay the employment agency than for the advertising fee The use of alternatives to recruitment is another strength in Department of Personnel and Administration Outsourcing is the solution for the company when work is overloaded and the company does not need to open more workshops or hire more people Overtime is another way to use the present workforce to operate tasks without hiring more people or slowing down the progress Different workshops sharing workforce is also a way to utilize the human resource in the company Through the use of alternatives to recruitment, a lot of money has been saved for the company In short, the recruitment and selection at SSJ Company has done their jobs well to help the company in the aspect of human resource management The criteria has been approved, recruitment framework has been set up that help the Department of Personnel and Administration work smoothly and effectively Student: DANG NHU TRANG Page 54 Graduation paper Advisor: DANG THANH BINH, M.E.M 3.4.2 Weaknesses: Beside the strengths in recruitment and selection that has been stated above, these are still some weaknesses that are worth to be drawn out in order to improve the situation in Department of Personnel and Administration of SSJ Company a The human resource planning at SSJ Company: Through interviewing and examining documentation, it shows that there is no long term human resource planning at SSJ Company As a result, recruitment and selection has no long term and short term planning The recruitment and selection tasks are carried out as the situation demands Usually the tasks have been done so passively because the Department of Personnel and Administration control the situation through their planning Consequently, when in short of workforce, the company depends on whether the recruitment and selection can perform well their functions or not Through interview and observation, it could be seen that the recruitment and selection were carried out everyday without estimating the situation for the future It can be said that without the long term and short term planning for the Department of Personnel and Administration, especially for the recruitment and selection functions, it negatively affects the productivity and performance of the company b The use a/internal sources/or recruitment: Even though the utilization of internal source has brought many advantages for the company, it also exposed some weaknesses First, because of having no long term planning, the Department of Personnel and Administration cannot help the employees plan their careers, therefore they cannot contribute their best to the development of the company Furthermore, the company policy for promotion is not clear, so it usually causes confuses for the employees not only the ones who are promoted but also the ones who are not Last but not least, the promotion in the Student: DANG NHU TRANG Page 55 Graduation paper Advisor: DANG THANH BINH, M.E.M company sometimes could not use the right persons for the right positions because of having no specific plan and criteria for the promotion tasks c Tit e use of employment agency: It has been proved that employment agency helped the company much in saving time and money as the company transferred the recruitment and selection to the agency However, recruitment and selection from employment agency also shows some weaknesses The new employees from employment agency sometimes cannot satisfY the company requirements The job requirements and criteria for recruitment and selection are not clear and specific enough for the agency to operate the task well d Tlte use of alternatives to recruitment: Though the use of alternatives to recruitment helped the company a lot when recruitment and selection at sometimes could not cover all the demands, it also caused some problems in business operating of the company Overtime for a long time made the employees exhausted and their productivity and performance could not be guaranteed Utilizing and exchanging employees from different workshops sometimes caused offends not only from the employees but also from the supervisor ranks especially at the time when all the workshops were busy e.Tlte recruitment process: The recruitment at SSJ Company could not attract all sources for recruiting qualified candidates for the company The main method used by the Department of Personnel and Administration was just the announcement in front of the company Other methods were rarely used or were underestimated Another reason that was discovered when carrying out the research at the company was that the Department of Personnel and Administration staff had little knowledge and experience of doing the recruitment and selection functions The situation became worse if looking at the turnover rate of labor force and education level at the SSJ Company The turnover rate and educational Student: DANG NHU TRANG level show that the company could not attract Page 56 Graduation qualified paper candidates Advisor: DANG THANH BINH, M.E.M and retain its current employees Besides, the database employees and recruitment sources were not well kept, so it had little help through the process of recruitment at SSJ Company f The selection process: There are some weaknesses of the selection process at SSJ Company that have been specified First, the job criteria for selecting are not clear and are always lowered even though they had been set up For productive workers, the company does not require candidates must have working experience However, a person with job experience can be a prospective candidate who is believed can fulfill his or her job with high efficiency Moreover, the company requires productive candidates must graduate from secondary schools and above However, there are still some productive workers of the company who had just studied in primary school In addition, the criteria were not followed when the company carried out the selection process Because the company usually needs direct employees, so when the applicants come to the company, they not have skills or working experience which related to the future jobs, but they are still recruited And of course, their salary will be paid accordance with their level However, it makes the company spending time and money for training and development program to improve these employees' skills Next, Management according to the selection process in the Human Resource book of Mondy, Noe & Premeaux (2001), it must have steps However, the selection process of the company has fewer steps It is even not strictly followed The company has skipped an important step in the selection process of direct employees: physical examination Because of continuous turnover rate of the labor force, the company wants to recruit as more employees as possible As the author witnessed, when having an applicant come to the company for an interview, the interviewer only asks him some common questions and then introduces him to the production line immediately without physical examination This is a serious mistake because the physical exam is an important step in the Student: DANG NHU TRANG Page 57 Graduation paper selection process Because of the job's Advisor: DANG THANH BINH, M.E.M requirements, especially technical and machinery jobs, are that the workers must be healthy and like their jobs, so they can work at the company for a long time This is the reason why after working several days or months at the company, the new employees often quit their jobs It makes the company is always in the lacking of employees Student: DANG NHU TRANG Page 58 Graduation paper Advisor: DANG THANH BINH, M.E.M CHAPTER SOME RECOMMENDATIONS Organizations improve through the more effective and efficient use of their resource, especially the use of human resource and the Saigon Shoes Join Stock Company is not an exception Effective means producing the goods and services that society deems appropriate Efficient means using the resources in the best way to produce the highest quantity of products With other tasks, human resource department contribute to improve the effectiveness and efficiency of its organization by recruit and select the right and best persons for the company Through the examination of the recruitment and selection tasks in Saigon Shoes Join Stock Company, the strengths and weaknesses have been explained From the explanations of the strengths and weaknesses and through the study of literature in the literature review section, some actions must be carried out in order to improve the situation Therefore, in this chapter, from the strengths and weaknesses that has been explained, from literature review that has been studied, and also fr0111the writer points of view, there are some recommendations that are needed to be pointed out Human resource planning: Human resource planning is the task to systematically forecast an organization's future demand for, and supply of, employees Through the estimating the number and types of employees that will be needed, the human resource department can better plan its recruitment, selection, training, career planning, and other activities Saigon Shoes Joint-stock Company does not have the long-term human resource planning Therefore, there is no recruitment and selection planning and the recruitment and selection tasks are carried out just by demands To have a fully made human resource plane, some factors should be considered First, planners Student: DANG NHU TRANG Page 59 Graduation paper Advisor: DANG THANH BINH, M.E.M must find out the causes of demands These causes are very useful for short-range and long-range employment plans and they become very important in carrying out the recruitment and selection tasks Some main causes of demands for a human resource planning are external challenges, organizational decisions, and work-force factors Second, human resource requirements should be considered in the human resource plan These requirements are taken through the process of forecasting the causes of demand and are translated into short-range and long-range statements of needs Human resource plan is very important for the Department of Personnel and Administration, especially for the ones who carry out the recruitment and selection tasks The human resource plan outlines which jobs should be filled by recruiting outside the company and which are to be filled internally In other words, human resource plan enables the ones who perform the recruitment and selection functions to view the organization's overall hiring needs so that individual job openings can be placed in perspective with other employment needs The use of internal sources for recruitment Once the plan of company, the Department of Personnel and Administration projects the future demand for human resource, its next major concern is filling projected openings There are two sources of supply: internal and external The internal supply consists of present employees who can be promoted, transferred, or demoted to filled expected openings To perfonn the tasks well, recruiter should have the estimates of internal supply Estimates of the internal supply involve more than merely counting the number of employees To have these, there must be the specific information about the capabilities of workers This information allows recruiters to estimate which openings can be filled by present employees Furthermore, the criteria and the promotion policy should be inform to all present employees so that they are always in the situation of ready to be promoted and trying their best to contribute to the company Student: DANG NHU TRANG Page 60 Graduation paper Advisor: DANG THANH BINH, M.E.M The use of employment agency Using employment agency should be related to human resource planning That is, the estimates for the future demand for human resource, the job criteria and requirements must be stated clearly in the plan and should be inform the employment agency With clear and specific infonnation, the employment agency can help the company to recruit and select the right persons The use of alternatives to recruitment The use of overtime in the company should be carefully considered Working overtime may lead the condition that employees cannot work with high performance Therefore, it is suggested that the Department of Personnel and Administration should plan how to use overtime in its best way, how much time for overtime in a period is suitable, and how to avoid objections from employees in overtime using Beside, the use of utilizing and exchanging employees from different workshop should also be planned and inform the employees and their supervisors so that they are always in good mood for the exchanging The recruitment process Recruitment is the process of finding and attracting capable applications to apply for employment Much of the recruitment process is the responsibility of the Department of Personnel and Administration staff Recruiters should be aware of the recruitment process before they undertake to find suitable applicants At a minimum, recruiters should be familiar with the organization's policies, human resource and affirmative action plans, environmental conditions, job requirements, cost, possible incentives that can be used to induce recruits to become applicants Recruiters at Saigon Shoes Join Stock Company should consider various methods of recruitment available so that all possible qualified applicants can be recruited Student: DANG NHU TRANG Page 61 Graduation paper Advisor: DANG THANH BINH, M.E.M The following is the recruitment process that the writer of this paper suggests to improve the recruitment situation at the Saigon Shoes Join Stock Company Human Resource planning JOB Job analysis information SATISFACTORY RECRUITS Affirmative action plans JOB REQUIREMENTS OPENING MAKE FORMAL IDENTIFIED APPLICATION Manager's comments Specific requests of managers EMPLOYER SOURCES • Walk-ins • Employee referrals • Advertising REFERRAL SOURCES • State agencies • Private agencies • Search firms OTHER INSTITUTIONS • Educational institutions • Professional associations • Labor organization • Military operations • Government programs • • • • • MISCELLANEOUS Temporary help firms Leased employees Departing employees Open house International recruiting Figure 6: A summary of the recruiting process Source: William, B W Jr., & Keith D (1993, 4th ed.) Human resources and personnel management Singapore: McGraw-Hill The selection process While the recruitment tasks are to seek to create a pool of suitable applicants, the selection tasks are to validate applicants as to their potential suitability Making valid hiring decisions requires several important steps that cannot be overlooked The selection process at Saigon Shoes Join Stock Company could not show their effectiveness in carrying out its functions as stated in previous chapters Therefore, some improvements should be taken at Personnel Department of Saigon Shoes Join Student: DANG NHU TRANG Page 62 Graduation paper Advisor: DANG THANH BINH, M.E.M Stock Company so that the selection functions can contribute their best to the development of the company First, the criteria for selection should be established and approved These criteria are extracted derived from the job analysis Gob description and job specification) that the Department of Personnel and Administration has to carry out These criteria should be stated clearly and followed strictly, so that the selection process can perform well their functions and select the right person for the company Second, the selection process should be scientifically established and approved so that it will be carried out correctly and strictly The Department of Personnel and Administration should understand all the necessary factors that could affect on the selection process like environment factors, labor demand forecast and labor supply forecast, etc The selection process suggested is the one that has been explained in chapter There are some steps that can be carried out quickly but lacking one of those steps would bring some weaknesses in the process of selecting the right applicants for the company Student: DANG NHU TRANG Page 63 Graduation paper Advisor: DANG THANH BINH, M.E.M CONCLUSION The world of human resource management has changed a lot through the development of society, politics and economic The effect of global competition and rapid development of technologies has always encouraged Human Resource officers to find new and effective ways to fulfill their tasks Saigon Shoes Joint-stock Company like other company, must have qualified individuals in specific jobs at specific places and times to accomplish its goals Obtaining such people involves human resource planning, recruitment, and selection, Saigon Shoes Joint-stock Company must make sure that their workforces are productive both today and in the future Through the time carrying out the research, some strengths and weaknesses in performing the recruitment and selection functions at Saigon Shoes Joint-stock Company has been discovered and explained in chapter Those strengths and weaknesses were found in human resource planning, the use of internal sources for recruitment, the use of employment agency, the use of alternatives to recruitment, and the recruitment and selection processes From the finding of those strengths and weaknesses, some recommendations have been made to improve the situation Because this study has been done by a student who does not have enough experience in human resource management and the study has been finished in a very short time and covered a very limited scale, so the research could not consider and study all the aspects of the problem specifically and scientifically Anyway, with the very scale that covered in this research, the writer of this paper hope it would be a useful source of information to the company the Saigon Shoes Jointstock Company, especially the Personnel Department staff to improve the situation Therefore, it is worth to carry on a further research in the future at the company on human resource management, especially recruitment and selection process so that the situation would be detailed studied and more scientific adaptations could be made Student: DANG NHU TRANG Page 64 REFERENCES Documents from Department of Personnel and Administration Harris,M (2000) Human Resource Management, 2nd edition, US: Harcourt Brace College Publishers Hilb,M (2003) Quan Tri Nhan Su Tong The, stranlated by Le Viet Thai.et aI,Vietnam: Thong Ke Publishing House Konosuke, M.(1977) Nhan Su - Chia Khoa Cua Su Thanh Cong, stranlated by Tran Quang Tue(2000), Vietnam: Ho Chi Minh City Publishing House Mondy, Noe, and Premeaux (2001) Human Resource Management, New Jersey: Prentice- Hall Nguyen, H T (2001) Quan Tri Nhan Su, 5th edition, Vietnam: Thong Ke Publishing House Nguyen, T H (2000) Quan Tri Nhan Su, Vietnam: Thong Ke Publishing House Nguyen, T T T (2000) Worker Recruitment and Selection in The Garment and Footwear Companies in Dong Nai Industrial Zones, thesis Tran, K D (2001)Quan Tri Nguon Nhan Luc, 2nd edition, Vietnam: Giao Duc Publishing House Werther, W.et al (1993) Human Resources and Personnel Management, 4th edition, US: McGraw-Hill