The recommendations on enhancing the quality of human resource

INTRODUCTION We all know that human resource is always one of the most important factors in the business activity, so human resource management is crucial to the business management The human resource policy always plays very decisive role in the development and the success of all companies, Agricultural Material And Forest – Agricultural Products Import – Export Company (AFORIMEX) is not an exception In order to find out the real business situation of the company at present and make a certain contribution to the company development in the future, studying the current human resource of the company is an useful approach That is the reason why I have decided to choose the subject “Analysis of the AFORIMEX’s current human resource development strategy and recommendations for improvement” as the topic of my field study report My report consists of three main chapters Chapter describes the general information about the company and its human resources Chapter deals with the real situation of the company’s human resource development And chapter lists out some possible recommendations or how to enhance the quality of AFORIMEX’s human resource CHAPTER 1: AFORIMEX AND THE HUMAN RESOURCE OF THE COMPANY 1.1 Company overview: AGRICULTURAL MATERIALS AND FOREST-AGRICULTURAL PRODUCT IMPORT-EXPORT COMPANY(AFORIMEX) Address: 68 Truong Chinh Str, Dong Da Dist, Hanoi City, Viet Nam Tel : +84.4.868 9353 Fax : +84.4.868.9354 Email : aforimex@vnn.vn 1.1.1 The history and development of AFORIMEX AFORIMEX was established according to the Decision No 3329/QD/BBN-DMDN in November 29th 2005 by The Ministry of Agriculture and Rural Development The company has officially operated since May, 19th 2006 AFORIMEX is a state owned enterprise directly under the Agricultural Construction and Rural Development Corporation of the Ministry of Agriculture and Rural Development The company specializes in manufacturing and exporting agricultural products The products of the company have been exported to many countries such as China, Russia, Belarus, Bangladesh, Malaysia and so on The company provides many Vietnamese specific agricultural products such as: - Tapioca starch: The company’s tapioca starch products are of good quality, diversified in types, and abundant in quantity which can meet customers’ requirements They are all manufactured from stable and high quality material resources from the Central Plateau Area - Peppercorn: The company has provided both black and white peppercorn with special taste and flavor - Soybeans and green peas: They are of high quality and can meet the export standards - Coffee: harvested from many farms in the South Central, and West Plateau provinces - Tapioca chips and dried corn - Rubber latex: The company supplies some kinds like SVR 20, SVR 10… - Dried coconuts 1.1.2 The AFORIMEX’s business activities: a The function: - Exporting-importing food, agricultural-forestry products (rubber latex, coffee, peppercorn, cashew nut, tapioca starch, soybean, processed wood, building wood…) - Exporting-importing agricultural materials - Exporting-importing construction materials and equipment, and machineequipment serving agriculture and water source - Exporting-Importing pottery and marine time products b The business scope: - Consulting the Management Board and the General Director of the Agricultural Construction and Rural Development Corporation the business strategy of export and import - Searching and expanding the market for export of the company and the corporation - Actively finding and signing economic contracts for the Corporation and itself - Organizing manufacture and exporting food and some agricultural products - Managing and using the business capital correctly in accordance with the Government regulations, enhancing the business capital on the base of achieving the increasing business results 1.1.3The infrastructure and the business network: a.Factory and branches: - Daknong Tapioca starch processing factory: It’s located in Daknong province, The Western Plateau Area where has been considered having most abundant material of cassava with the best quality in Viet Nam nowadays The factory has been invested in a production site of 20 ha, and equipped the modern technology imported from Taiwan which has the capacity of processing 100 ton/day The factory’s products have met the standards for export The company has invested in a cassava material zone where is neighbor the factory, has an area of 3000 This makes sure that the factory has been supplied with stable and convenient material source for production - Ho Chi Minh City Branch Office: the address is 1/5 Tran Xuan Soan street, District This is the office which sells farming fertilizer with the biggest quantity in the South market - The Central and West Plateau region Branch office: This office is the one who purchases the materials such as cassava, coffee, peppercorn, etc for the purpose of processing and business of the company - Mong Cai Branch Office: This is the important place for the company to across border business with Chinese partners The company usually exports and imports goods such as tapioca starch, fertilizer … - Hanoi Office: this is the transaction center and the head quarter of the company All business activities of the company have been conducted and managed by this office Although the geographic distances among the head quarter, the branches, and the factories always exist, weekly business meetings are organized and all managers of the departments and branches can participate thanks to the information technology application All necessary information and business situations have been quickly reported to the board of directors, so that the management and operation of the company is always effective The company has paid attention to investing in the computer network and other equipment The investment has partly contributed to the successful business today b.Customers and partnerships: With the determination of the board of directors and the whole labor force of the company, so far AFORIMEX has already established good, reliable business relations with many banks, such as Agriculture And Rural Development Bank, Laos-Viet Joint Venture Bank, Viet Nam Investment and Development Bank and so on The company also has business relation with many foreign partners in China, Cambodia, Russia, Laos, Belarus, Ukrein, Bangladesh, and domestic partners like Thanh Hoa Tapioca Starch factory, Thinh Phat factory, Quan QuanTay Nguyen Factory, Tay Ninh factory, etc Many Fertilizer Companies that AFORIMEX has had business doing are Petroleum Chemical and Fertilizer Company, Sai Gon Agricultural Material Company, Binh Duong Agricultural Material JSC, Can Tho Agricultural Material and Technique JSC, Hanoi Agricultural Material and Farming Product Company, Nghe An Agricultural Material Company… AFORIMEX has usually maintained close contacts with foreign representative offices in Viet Nam In order to serve import-export business activities, AFORIMEX has many economic contracts with road transport companies as well as maritime transport companies 1.2 The human resource in AFORIMEX’s organizational tructure: In order to have overview of the company’s organizational structure, we can study the below figure 1.1 DIRECTORING BOARD Administrativeorganizational Department Planning and export-import department Financing and accounting department Daknong Tapioca starch processing factory Ho Chi Minh city Branch Mong Cai Branch Purchasing department Central and West Plateau region branch 1.2.1The board of directors: -Mr Nghiem Minh Tien is the director who has the highest responsibility under the general director The director delegates the two vice directors to sign economic contracts in the fields they are responsible The director is the one that directly manages the organizational, internal, financial fields as well as the whole business operation of the company -The two vice directors assist the director in organizing, and managing the business operation of the company They are in delegate power to some issues and have responsibility to the director and the law in their appointed work + Mr Cao Viet Cuong is the vice director who is responsible for the business administration and production in the Southern provinces He directly manages the Ho Chi Minh office and the Daknong Tapioca Starch Processing factory + Mr Pham Vu Ha is the vice director who is responsible for market exploitation and export-import activities in the Northern provinces He also controls the statistic and planning work of the company as well as supervises economic and technical standards and estimates expenditure of signed contracts 1.2.2 Administrative organizational department: The manager of the department is Mr Mai Trong Phuong who graduated from Hanoi National University This department’s functions are assisting the board of directors in the organization of the company, from professional departments to other parts; making plans and figuring out methods of labor payment; examining and urging the employees in the company; managing the employment records; ensuring administrative activities of the company; The department is also in charge of assisting the board of directors in arranging and organizing labor allocation in the professional departments and other parts, selecting staffs who have enough capacity and quality for positions required by the demands of doing business and production of the company; paying social security and medical insurance for employees in accordance with the stipulation of the law and the real situation of the company 1.2.3 Planning and export-import department: The department is managed by Mr Phan Thanh Lam who graduated from Hanoi National Economics University This is the professional general department, whose function is to assist the board of directors in keeping track of the whole operation of the company and situation of member parts, so that the director board can correctly build up the business and production plan for the purpose of enhancing effectiveness and gaining benefits; synthesizing, analyzing and forecasting the market of goods done business by the company and ensuring the stable material resource for the factory The department also draws up, and submits the annual plan for the company to the director for approval Another important function of the department is to consult the director board to decide the prices of goods bought and sold by the company and to sign and carry out exportimport contracts as well as liquidate them 1.2.4The finance and accounting department: The manager is Ms Tang Quynh Mai who graduated from Finance and Accounting University She is the Chief Accountant of the company This department’s function is to assist the director in mobilizing and effectively using the capital sources in the most effective way Besides keeping record of the financial situation in the whole company, the department often has to report correctly and adequately the business and production results under the control of the director The department also guides and consults accounting tasks to member parts of the company and examines their financial reports; Another task of the department is to allocate flows of goods, materials, and capital in order to meet the demands of business and production as well as other unexpected requirements 1.2.5 The purchasing department: The head of the department’s name is Nghiem Xuan Thao, an Economic Bachelor The function of the department is to organize to buy, sell, deliver and receive goods and products in accordance with the company’s plan Besides that, it can find, buy, sell various kinds of fertilizers and agricultural products buy itself at the company’s stores *** The above outlets (The board of directors, the administrative department, the planning and export-import department, the finance and accounting department, the purchasing department) are located in Hanoi Office of the company with the total staff of 26 people 1.2.6 Daknong Tapioca Starch Processing Factory: The factory manager is Mr Ngo Tien Quang, 01 factory vice manager, 01 chief accountant, 01 head of the Personnel department, 01 manager of plant technical part, 01 manager of material department The total of employees of the factory is 92 1.2.7 Ho Chi Minh city branch: The chief of the office is Mr Nguyen Thai Bang, an Economic Bachelor There are 05 staff in this office 1.2.8 The Central and West Plateau region branch: The chief of the office is Mr Tran Phuong Minh graduated from Accounting University, there are 05 employees in this office 1.2.9 Mong Cai representative office: The chief of the office is Mr Trinh Duc Long, an Economic bachelor, and there are 03 employees working here CHAPTER 2: THE REAL SITUATION OF THE HUMAN RESOURCE DEVELOPMENT IN AFORIMEX 2.1 The human resource allocation in the company: In order to have a general view of the human resource allocation in the company, we can study the following table: INDEX DEPARTMENT Director board Administrative department University Vocational Manual graduated training level labor Total Planning and export-import 4 6 department Finance and accounting department 5.Purchasing department 29 Daknong Tapioca Starch Processing 60 92 factory Ho Chi Minh City Branch Mong Cai Branch factors that can effect the company 2.2.1.5 Communication: Ability to exchange information, belief, emotion with others in words, in writing, in gestures The result is that receivers can get exact understanding of the information from the sender Level Level Level Level Level Unable to Deliver Having the Having the Using many convey information messages simply, but not simple express successfully always can get communications complicated communicate understanding ability to make ability with to methods colleagues issues to to in the in company and colleagues and company and customers customers create effectively support to supports from and customers, cooperation suppliers, and public opinion 2.2.1.6 Creativity: Ability to come up with useful and feasible ideas for the company Level Working Level Level Level Helping to Applying internal Applying Level Creating new under improve external techniques, instruction working skills experiences, advance new and and knowledge, methods make the best of knowledge, supervision within responsibility the procedures of company’s experiences to work present working improve bringing techniques, better methods techniques, and working and performance procedures methods to get to better the company efficiency 2.2.1.7 Dynamism: Good adaptation to changes in working condition Level Level Level Level Level Only being Able to deal Able to adjust Actively find Quickly able to with changes in personal work under working behaviors to cope knowledge changes in instruction conditions with different when there are micro, macro and within situations in changes in environment order to achieve new policy of as well as personal goals the company internal one Provide and can adjust immediate strategic support for policy, action supervision responsibility out, self-equip identify other people in program in changing time situation 2.2.1.8 Customer Care: Satisfying the demands of both internal (colleagues) and external customers Level Level Paying no Having ability Level Actively Level Being able to Level Carefully attention to to satisfy applying analyze paying customers demands of different demands of attention to within customers approaches to customers, use adopting responsibilit within satisfy diverse efficiently policies y demands of company’s towards customers within resources to customers’ responsibility meet those satisfaction demands and and being able able to make to forecast responsibility improvements future needs in the future of customers, having strategies to deal with them 2.2.2 Payment policy : 2.2.2.1 Salary components - Base on the features of business production, labor organization, the company has stipulated payment to employees including: + Fixed salary: used to pay to indirect labors including managerial staff, professional employees and others + Short term varied salary: paid to employees who are directly participated in business production This salary is dependent on the results of short-term business production + Long term varied salary: paid to employees who are indirectly participated in business production and it is dependent on the results of long- term business production - The payment employees receive includes types of salary: + Basic salary: is paid to employees in accordance with Decision No 206/2005/ ND-CP promulgated on December 14th 2004, and Decision No 07/2005/TTBLDTBXH promulgated on January 5th 2005 by the Government + Varied salary: is paid to employees and it is based on assigned work with difficulties when carrying out; level of the final results of each employee; the number of working days or working hours done by each employee and on the results of business production The varied salary is not dependent on the Decision No 206/2005/ND-CP, but on a complicated system of coefficient of work done by employees and business results 2.2.2.2 Salary calculation - The base of figuring the varied salary: + The varied salary is decided based on the contents, features and level of accomplishing the assigned work, of job titles, and of each department’s business planning + When an employee is assigned a certain job title, and certain work, he or she will get their correspondent varied salary In special case, if an employee is asked to special work, for the purposes of business production, by the director, his/her varied salary will be decided by the director - The base of figuring the fixed salary: The company has paid the basic salary to employee in accordance with the Decision No 206/2004/BD-CP - The resource of forming salary fund: Based on the result of business production, the company has decided the real salary fund including: Vth = (Vdg * Dsxkd ) + Vpc + Vkh + Vdp *Vth: Total of real salary fund *Vdg: Salary unit price (stipulated by the company based on result of business) *Dsxkd: Revenue from business activities *Vpc: Fringe benefit *Vkh: Salary fund from other business activities *Vdp: Reserved salary fund transferred from the previous year - The salary fund paid directly to employees (Vtt) including: + Short-term varied salary fund (V bd): used to pay to employees who belong to direct business production + Basic salary fund (Vcb): based on stipulated by the company + The salary fund paid directly to employees (V tt) is calculated according to the following formula: Vtt = Vbd + Vcb - Time salary (TLtg) paid to employees who receive the time salary includes basic salary (TLcb) and additional salary (TLbx), this is calculated as follows: TLtg = TLcb + TLbx + The basic salary TLcb is calculated as follows TLcb = TLmin x hiCi Cd  TLmin: the minimum salary stipulated in different periods of time by the company  hi : The salary coefficient and fringe benefit of the employee “i”  Ci :The number of real working days with the job title of the employee “i”  Cd : The number of stipulated working days + The short-term varied salary paid to employees who are indirectly involved in business production (TLbd) calculated as follows: TLbd =  Vbd  Cih tl bxki  Vbd : short-term varied salary fund  n : The number of employees who receive the time salary  htl bd : The short-term varied salary coefficient of the employee “i”  ki : The coefficient that judges the level of accomplishing work of the employee “i” This coefficient is decided according to the company’s monthly salary judgment minutes *** The table of short-term varied salary coefficient (h tl bd) of employees who are indirect to business production: BASIC SALARY JOB TITLE/ POSITION COEFFICIENT IN LABOR CONTRACT Director 5.65 Vice director 3.66 Chief accountant 3.23 Department manager 2.98 Department vice manager 2.50 Senior expert 4.57 Junior expert 2.26 Staff 1.0, 1.18, 1.22, 1.70 Table 2.1: Short-term varied salary coefficient *** The standards of identifying the coefficient that judges the level of accomplishing work (ki) of the employee “i” are stipulated as below: + Apply for the director board and department managers: Level Interpretation Coefficient(ki) - When an individual employee or his/her department doesn’t accomplish assigned work for the month Level - Work less than 16 working days per 0,7 month - Not obey superior’s division of labor and work - Accomplish assigned work for a certain Level month 1,0 Level - Work for from 16 to 20 days per month - Effectively accomplish assigned work for 1,2 a certain month or achieve from 101% to 105% of business production plan - Work for more than 21 days per month - Effectively accomplish assigned work as Level well as unexpected work arising or achieve 1,3 106%-110% business production plan - Accomplish very effectively assigned work or: Level - Have good ideals to improve business production and its result is 1,5 highly appreciated + Apply for the other ordinary staff in the company Level Level Level Level Level Level Interpretation Coefficient (ki) Not accomplishing assigned work Accomplishing assigned work Accomplishing rather well assigned work Accomplishing well assigned work and taking over sudden work arising in month Accomplishing very well assigned work and having ideal to improving work and its 0,7 1,0 1,2 1,3 1,5 result is highly appreciated, - Short-term varied salary paid to employees who are directly involved in business production: Salary of employees who are directly involved in business production is paid based on work quality, work efficiency that is achieved by each employee Salary payment coefficient is based on the level of contribution to work accomplishment of each employee and is classified as A, B, C, etc and it is negotiated in department and decided by department managers: