organizational human resource analysis report of x bank

Relating to organizational culture, the bank is based on 5 core values: customerfocus, innovation and creativity, cooperation, self-development and effective work.. About the company’s s

HANOI UNIVERSITYFACULTY OF MANAGEMENT AND TOURISM

-oOo -ORGANIZATIONAL HUMAN RESOURCEANALYSIS REPORT OF X BANK

(2485 words)

Lecturer & Tutor: Mr Phan Hoang Quan

Nguyen Thi Kim Anh

Tutorial 6 – Group 3

ID: 1906090009

Hanoi, December 12 , 2021th

This paper focuses on exploring and analyzing X bank's human resourcesystem by using secondary data Its main goal is to use the informationgained in Human Resource Management to assist Vietnam's third-largestbank in recognizing and addressing its existing challenges, as well as to offersome immediate solutions to address the situation This paper is divided intothree main parts In the first section, we discuss the company's history,ownership, strategy, structure, culture, product, and services The nextsection, Diagnosis and Prescription, discusses the company's humanresource condition, as well as current issues with the performance appraisalsystem and employee pay and benefits As a result, the final section containsvarious solutions, such as measures and policies, to meet the demands ofemployees, increase job efficiency, and contribute to the organization'sgrowth.

TABLE OF CONTENTS

ABSTRACT

A Introduction 1

1 Overview 1

2 Structure chart 2 3 Data collection method 2

B Diagnosis and Prescription 3

D Conclusion 10

REFERENCES 11

1.Overview

has become the third-largest bank regarding chartered capital in Vietnam Currently, the bank isoperating through its extensive network of 1 head office, 2 representative offices and 314transaction offices across 45 cities and provinces nationwide The bank’s vision is “change bank,change lives” to uplift people to reach their full potential and achieve the best things And themission is to become a digital transformation leader in the financial bank and follow sustainabledevelopment The bank is providing a wide range of banking products and services Customerscan use a variety of services like domestic and foreign money transfers, savings, loans,insurance, etc Relating to organizational culture, the bank is based on 5 core values: customerfocus, innovation and creativity, cooperation, self-development and effective work At this bank,organizational culture is defined as ''the organization's DNA'' which is the shared values, beliefsand behaviours of businesses contributing to its own personality, creating outstanding productsand the development of the company About the company’s strategy, the bank tailors productbundling with superior service and builds a pricing model based on sharing success and fosteringrelationships with customers Especially, human resources (HR) are the key to the sustainablesuccess of the bank The HR strategy of the organization is about attracting, developing andretaining talent and always taking the lead and aligning with the business plan, while stayingcurrent with the trends to give suitable coaching and competency development programs, as wellas provide a clear career path for each employee.

1.Structure chart

1.Data collection method

In this report, we collected the research data primarily based on secondary data Thebackground information of X bank is gathered from the online journals, magazines and annualreports released on the organization's website as well as some sources from reliable job reviewwebsites that contain essential information for analyzing the development and personnel status.We also utilized the explanations of human resource management theories from the textbook"Fundamentals of Human Resource Management" published by McGraw-Hill Education toenhance the level of reliability for the report

1 Diagnosis:

Every year, X bank will usually have the largest centralized recruitment round of the year,the time usually falls between May, June or July In addition, X bank will have small-scalerecruitment or when there is a need for new retail personnel In terms of recruitment methods, thecompany will use direct recruitment and job postings on its main websites Two main kinds of Xbank’s human resources are new graduates and those who have major-related experiences Theselection process includes 5 steps and 4 rounds In detail, round 1 is to collect application andfilter documents, it takes about 10 days Round 2 is testing knowledge, IQ, EQ and profession.Round 3 is a group interview, depending on the recruitment period, different methods ofinterviewing would be utilized such as critical presentations, case solutions, situations,discussions–presentations The last round is a personal interview with an interview panelconsisting of representatives of Human resource departments, business divisions, and the boardof directors Then, selected candidates would be sent emails and arranged time for work.

According to the Recruitment Director of X bank, the company recruits 1,850 newemployees each year; 65% are new graduates, the remaining 35% are middle managementhuman resources, for those who have experience The leader of the bank's Human ResourceManagement Division said that this is a strategic direction to meet the operating model of amodern bank, service standards Most of the newly recruited human resources are allocated tosales and service departments, which are especially invested by the Bank to serve customers inthe best way (Doan Phong, n.d.)

school" Bank staff are not only trained before entering the workforce but also continuouslyimprove their professional capacity through annual courses in various forms Many trainingmethods are applied such as presentation and group buildings, internship and case studies, etc.Also, the bank tries to organize training courses to improve the quality of human resources,especially key leadership positions The company has invested considerable expenses to attractVietnamese and foreign experts with prestige and capacity to work at the bank Besides, X bankpays great attention to training for new employees Its training program is scientifically built,helping newbies master and improve both professional knowledge and soft skills (VnExpress,n.d.).

In terms of staff development policy, X bank has had the policy to personalize careerpaths for each job position over the past years, which is not limited by positions X bank isfamous for Job Categorization-the ambitious project of job classification and capacitydevelopment for officials and employees started in late 2014 After re-evaluating more than7,000 job positions by using competency tests through the organization staff, X bank planned todesign training and retraining programs for each job position with its own criteria and skillgroups within several months or a year (Hoai Nguyen, n.d.)

1.1.3 Employee relations

X bank has entered the Top 3 best places to work in the banking industry and ranked 24thin the Top 100 best places to work in Vietnam 2014, according to the survey "Vietnam employerbrand health" conducted by Anphabe and Nielsen X bank has met a set of criteria including

secrets to reducing turnover is X bank's policy of attracting and developing human resources tocreate conditions for its officers and employees to succeed and achieve what they want both intheir career and in life, which encourages employees to be dedicated and creative and at the sametime creating conditions for them to learn more and progress in their careers Besides, the bank isone of the leading banks in social activities and member engagement Not only does the bankcelebrate annual activities like birthdays, spring tours but internal competitions and social charityactivities.

performance reviews 2 times per year which are the mid-year and the year-end performancereview But the use of the test results is still not very effective because they only serve as afoundation for the amount of pay increase and bonuses are given to each employee, not tomention human resources distribution and training development or labour discipline Anotherproblem related to the appraisal system is that raters can make distributional errors They areinclined to use the central tendency of a rating scale which will put everyone near the middle ofthe scale because they do not want to disappoint their colleagues.

Employees’ pay and benefits is another problem which results from the low-level salariesof the staff They have not established a pay structure that helps the organization achieve goalsrelated to employee motivation, cost control and the ability to retain talented human resources.Although the company has conducted emulation and commendation based on the results ofpersonnel evaluation, the quality does not really guarantee fairness In addition, the reward doesnot have a significant impact because it is just a formality It does not improve and enhanceemployees' lives and motivates them to work harder to help the company to gain a competitiveadvantage Moreover, the reward and recognition procedure is still complicated and time-consuming, leading to a lack of timely encouragement

Moreover, in order to motivate and encourage staff who have been working in thiscompany for a long time, the Bank's Board of Directors also proposed a policy to reward senioremployees on each of the Bank's birthdays which falls on September 27th every year However,

dissatisfied with this policy.

2 Prescription

In order to develop an effective job performance appraisal, organizations need to create alist of performance standards To do that, they have to understand and match job requirementsand people This understanding requires job analysis, the process of getting detailed informationabout jobs Moreover, all criteria in the performance standard form should reasonably reflect therequired levels of quality of work performance and be appropriate to the characteristics of eachjob And they should use more performance methods like mixed-standard scales or behaviorallyanchored rating scales (BARS), besides graphic rating scales and behavioural observation scales(BOS) After completing a list of performance standards, the organization should create a generalemployee evaluation form They should design not only two types but also 30, even 40 types ofemployee evaluation forms to encompass all job categories Therefore, the results of theseassessments will reflect precisely individual job performance and will be used accurately andreasonably

From an effective performance appraisal process, the organization should completeemployee compensation, wage and benefits policy which is appropriate for employees’competency Firstly, the bank needs to decide an equitable pay level and a pay structure related tojobs which match with market pay and its own goal Secondly, to motivate employees to workharder, organizations need to design incentive pay in the form of a commission or bonus which islinked to employees performance This helps businesses offer competitive salaries to attract and

procedures to promptly motivate employees to work harder

feedback to each level of performance

In implementing the project, several problems may occur The raters may make manyerrors when evaluating employees, and thus, there must be frequent training with experientialcases and specific performances There are also privacy threats when X bank gathers and storesemployee records of ratings and evaluations in electronic databases The employers mustcommunicate the reasons for using them and protect the privacy of performance measurements atall costs

The second project aims to improve the compensation policy

First and foremost, the HR department needs to measure compa-ratios, comparing theactual payment with the pay structure to ensure that current policies and practices align If theresult is close to 1, the pay structure is already well-planned and can contribute to theorganizational goals In this case, the managers should make more communication efforts toshow their employees the justification of this pay structure They can also explain how differentinputs lead to different outcomes, thus balancing employees' perceptions of fairness In caseswhere compa-ratios significantly differ from 1, the HR department and managers may consideradjusting the pay structure or the pay practices Once again, X bank needs a committee forconducting job evaluation, market pay surveys of key jobs, etc., to finally come up withappropriate and equitable pay rates, grades, and ranges

Secondly, the HR department should design a balanced scorecard to assist the mixed

Review, 2007)

For this project, the biggest problem would be the cost of changing the pay structure,raises, and bonuses However, X bank can accept this risk, as it is also an investment for anexceptional and highly-motivated workforce Problems may also arise when employees do notvalue the rewards, perceive them as unfair, or only focus on rewarded job aspects In these cases,the HR department and supervisors should communicate and involve employees in pay-relateddecisions, thus making the rewards more relevant, motivating, and beneficial to organizationalgoals

In conclusion, despite the excellent strategies in recruiting and selecting, training anddevelopment, and employee relations, there remain serious problems in X bank's PerformanceManagement and Compensation Policies, leading to employees' dissatisfaction and ineffectivework After scrutinizing the gaps, we proposed several strategies to develop a more effectiveperformance appraisal process and a highly equitable compensation policy In implementing oursuggested projects, employee empowerment and continual communication are crucial to mitigatethe potential problems

REFERENCES

Harvard Business Review (2007) Using the Balanced Scorecard as a Strategic Management System

Retrieved from

https://hbr.org/2007/07/using-the-balanced-scorecard-as-a-strategic-management-system

Misa Amis (2020) 4 bài học chiến lược nhân sự Techcombank Retrieved from

https://amis.misa.vn/11720/bai-hoc-tu-chien-luoc-nhan-su-techcombank/

Noe, R., Hollenbeck, J., Gerhart, B., Wright, P (6th edition) Fundamentals of Human Resource

Management McGraw-Hill Higher Education Retrieved from

Vietnam Technological and Commercial Joint-Stock Bank (Techcombank) (2020) Business

performance 2019-2020 report Retrieved from

https://www.techcombank.com.vn/file/get/18378

Vietnam Technological And Commercial Joint-Stock bank (Techcombank) (n.d.) Tầm nhìn- Sứ mệnh

& Giá trị Retrieved from

https://www.techcombank.com.vn/about-us/about-techcombank/vision-mission

VnExpress (n.d.). Ngân hàng cải thiện nguồn nhân lực cấp cao. Retrieved from

https://www.techcombank.com.vn/gioi-thieu/goc-bao-chi/bao-chi-noi-ve-techcombank/ngan-hang-cai-thien-nguon-nhan-luc-cap-cao