Chuyên đề tốt nghiệp: A study on recruitment process at vietmedical distribution joint stock company from 2018 to 2019

Bui Thị Hué_11162089_ Business English 58BNATIONAL ECONOMICS UNIVERSITY FACULTY OF FOREIGN LANGUAGES ENGLISH FOR BUSINESS DEPARTMENT BUI THI HUE A STUDY ON RECRUITMENT PROCESS AT VIETMED

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Bui Thị Hué_11162089_ Business English 58B

NATIONAL ECONOMICS UNIVERSITY

FACULTY OF FOREIGN LANGUAGES ENGLISH FOR BUSINESS DEPARTMENT

BUI THI HUE

A STUDY ON RECRUITMENT PROCESS AT VIETMEDICAL DISTRIBUTION JOINT STOCK COMPANY FROM 2018 TO 2019

Supervisor: Assoc Prof Dr Pham Thi Thanh Thuy

Hanoi, 2020

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ACKNOWLEDGEMENT During the period when I carried out “A study on the recruitment process at Vietmedical Distribution Joint Stock Company from 2018 to 2019”, I received a

lot of help This research was partially supported by online information sourceson the Internet as well as supported by real and reliable information collected at

Vietmedical Distribution Joint Stock Company

Firstly, I would like to express our sincere gratitude to my advisor Assoc Prof.Pham Thi Thanh Thuy for her continuous support of my study and relatedresearch with her composure, inspiration, and intimate knowledge Her guidancehas assisted me in all the time of the research and writing of this thesis I couldnot have imagined having a better mentor who always assisted and guided meenthusiastically

Secondly, I would also like to thank our colleagues in Vietmedical Distribution

JSC who provided insight and expertise that greatly assisted the research I also

want to give my deepest thanks to Ms Hoang Hai Yen — Recruitment Managerwho always creates the best conditions for me to have the most preciseinformation to complete my thesis

Last but not least, I would like to show my gratitude to my families and myfriends who always stand by to support and encourage me during my internship

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ABSTRACT

In this paper, the writer is going to do the research on the issues of therecruitment process at Vietmedical Distribution Joint Stock Company in theperiod 2018-2019

Based on the finding of this research, the writer is proposing optimal solutions toimprove the effectiveness of the recruitment process in the future

The research applies various methods; especially is quantitative method Besides,the research will use statistics and comparative methods to analyze figures viaeach year to give an accurate conclusion about the effectiveness of therecruitment process of Vietmedical Distribution JSC in the period 2018-2019

The report includes four main chapters which respectively go into details on thefollowing topics

Chapter 1: Theoretical framework: Overview of Human Resources managementand recruitment In particular, this chapter shows the definition and basic contentof Human resources management, recruitment, as well as the recruitment process

Chapter 2: Introduction of Vietmedical Distribution Joint Stock Company.Particularly, this chapter is an overview of Vietmedical Distribution JSC, alongwith the recruitment process of the company

Chapter 3: Analysis and Finding: Real recruitment situation in Vietmedical JointStock Company in the period from 2018 to 2019 In this chapter, situation of

Vietmedical’s recruitment process is exhibited Therefore, advantages and

disadvantages of the recruitment process at Vietmedical Distribution JSC areclearly formulated

Chapter 4: Recommendation: Solutions to improve the recruitment process ofVietmedical Distribution Joint Stock Company The last chapter illustrates

solutions to advance the recruitment process in Vietmedical depended onfindings from chapter 3

il

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TABLE OF CONTENTS

ACKNOWLEDGEMENTT, - - - G9 SH HH ng nh 1ABSTRACT, Q0 9 HH HH TT kh ilTABLE OF CONTIENTTS LH HH ng TH KH Hit iilINTRODUCTION 000 eecccesseecesneeesseecsseecsseecssaeecssaeesssaeecesaeeessaeesssaeeessaees 1

CHAPTER I: THEORETICAL FRAMEWORK Ăn re 6

1.3.1 The source of F€CTUITNTIE - SG 1S 111.3.2 The process of T€CTUI(I€TI( c5 113333511111 Ekrreersee 121.4 Some criteria to evaluate an effective recruitment prOCesS 18

CHAPTER II: INTRODUCTION OF VIETMEDICAL DISTRIBUTION JOINT

STOCK COMPANYY ng nọ ni 20

2.1 Overview of Vietmedical Distribution Joint Stock Company 20

2.1.1 General InÍOTImafIOHN - - - - << cv ng re 202.1.2 Mission, Vision, Core Values «<< << ss++<<ces 212.1.3 Typical prodUCS - G11 21

2.1.4 Organizational structure and function of departments in VietmedicalDistribution Joint Stock Company c1 1n vn ve rry 222.2 Income statement of Vietmedical Distribution Joint Stock Company in

the period from 2018 to 2019 Error! Bookmark not defined

2.2.1 Finance «« «- Error! Bookmark not defined.2.2.2 Business Error! Bookmark not defined.2.3 Recruitment Process at Vietmedical Distribution Joint Stock Company25

2.3.1 Purpose of the process ccceeessccceesssneeeeeeesneeeceeesneeeeeeeenneeeesenaaes 252.3.2 General policy LH ng kh 252.3.3 Recruitment f€TIM cv 25

2.3.4 Recruitment PTOC€SS - - Gv re 27

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CHAPTER III: REAL RECRUITMENT SITUATION IN VIETMEDICALDISTRIBUTION JOINT STOCK COMPANY IN THE PERIOD FROM 2018TO 2019 oo 29

3.1 Features of Human Resources at Vietmedical Distribution Joint StockCOMPANY eeeecesescecssncccssneeceseecescecesaeeeseaeecesaeeessaeecssaeecsaeeesaeeesnaeensaeesenaees 29

3.1.1 Labor structure of VietmediCaÌL - <s se 293.1.2 Labor qualIfiCafIOn - - c 1 S31 1H v1 ng ng ve 313.2 Analyzing the status of the recruitment process at Vietmedical

Distribution Joint Stock Companyy cv ng kh 31

3.2.1 Identifying recruitment demands - - - - «+ + x+++sseess+ 32

3.2.2 Announcing RÑ€CTUItIe€TI( - - < + 1s 1 kg re 32

3.2.3 S@Ï@CHION HH ng nh 353.2.4 Factors affecting recruitment in Vietmedical JSC 403.2.5 Analyzing the results of recruitment over the two years from 2018 to2010 QQ LH HH nu HH Hà 42

3.2.6 Evaluating recruitment effectiveness at Vietmedical JSC 43CHAPTER IV: SOLUTIONS TO IMPROVE RECRUITMENT PROCESS OF

VIETMEDICAL DISTRIBUTION JOINT STOCK COMPANY 47

4.1 Completing the assessment of candidates throughout the recruitment919911 474.2 Establishment of recruitment COUnICIÏ ‹ -s«< + ++svssseeess 47

4.3 Participating in career orientation events organized by universities 474.4 Innovating the content of recruitment announcemernI - 484.5 Informing the interview T€SUÏ(L - - 5 111kg key 480 9))/9)01813I9))0015 49REFERENCES 0 ccccccesececesseeeeeceeceeaeeceaeecesaceceaeeseaeesseaeeceaeesenaeeseaaeesesaeeneaas 51

APPENDICIES eccceesscceeseeeesseeeseaeecesaeecesaceceaeesesaeesseaeeceaeecenaeeseaeeesnanensaes 53

1V

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LISTS OF TABLE AND FIGURES

Figure 1.1: Factors Affecting Recruitment and Selection Process of the

fØ2ñ1ZAfÏOTN Gv SH HH nh 8

Table 1.1: Advantages and disadvantages of two sources of recruitment 14

Table 2.1: Financial situation of Vietmedical Distribution JSC Error! Bookmarknot defined.Table 2.2 Net revenue structure during 2018-2019 Error! Bookmark notdefined.Table 2.3: Recruitment period of each DOSIfIO - 511 1s vvesseses 26Table 3.1: Labor structure of Vietmedical Distribution JSC « - 29

Table 3.2: Statistics of the number of candidates via each source 33

Table 3.3: The proportion of candidates passing the first-round interview 37

Table 3.4: The proportion of candidates passing the second-round interview 37

Table 3.5: The proportion of passing probation - «5c sseesseee 40Table 3.6: The result of recruitment during the period 2018-2019 oo 42

Table 3.7: The fill rate of reCTUIẨIN€TIE 5 1 1112111133 1E kkrkkrrrekre 43Table 3.8: The recruitment COSfS c1 HH ng, 43Table 3.8: The selection ratio during the period 2018-2019 «<+ 44Table 3.9: The turnover rate of Vietmedical - «s5 series 44Diagram 1.2: Recruitment Process of Vietmedical Distribution JSC 27

Chart 3.1: The qualification proportion of labor in Vietmedical - 31

Chart 3.2: Assessment of candidates about the content of recruitmentannouncement at Vietmedical - «c1 set 34Chart 3.3: Factors affecting application decision of candidates - 35

Chart 3.4: Assessment of the candidate’s satisfaction in receiving interview result

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VI

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INTRODUCTION

1 Proposed research topic

A study on the recruitment process at Vietmedical distribution joint stock

company in the period 2018 — 2019

2 Background

In the process of renovation and international economic integration trend,especially when Vietnam has participated in a number of new free tradeagreements with higher levels of liberalization such as Trans-Pacific Partnership

Agreement (TPP), EU-Vietnam Trade and Investment Agreements, etc,

Vietnamese enterprises in general and Vietnamese private enterprises inparticular are facing with development opportunities as well as new challenges.Thus, they are required to constantly renovate and improve themselves Anumber of enterprises have improved their business efficiency as well asstrengthened their position, enhanced their reputation, and developed in acompetitive market by rapidly adapting Simultaneously, many companies are sopassive that they cannot respond promptly to economic fluctuations Therefore, ifVietnamese enterprises fail to develop their strength and overcome theirweaknesses, they will be gradually eliminated from the market economy

There are many resources that affect the development of companies both directlyand indirectly, such as financial resources, human resource, etc However, it isundeniable that human resource is the most important resource of all for thefollowing reasons Firstly, humans are seen as the basis for economic, cultural,and social progress Besides, human resource is also a decisive factor of anyproduction process as well as a driving force of the socio-economic development

process Finally, organization’s activities are always associated with the human

factor Consequently, if enterprises use their human resource effectively, they

will have more advantages than other businesses in the market

Human resource management of organization includes a number of activitiessuch as recruitment, training, human resource development, etc In which,recruitment of the human resources department is seen as an important role.Because recruitment is an input activity affecting directly not only the quality ofhuman resources, but also training activities as well as other activities in humanresource management However, not all businesses especially Vietnamesecompanies know how to find, use, and exploit this resource effectively

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According to the above background, the author researches this topic to make theproblem clear and offer some suggestions

3 Rationales

Human resources are the most crucial assets of society as well as an organization

Only when the recruiting activities are well completed, will a company has

qualified as well as experienced staff helping businesses accomplish businessgoals easily and create sustainable competitiveness

In order to survive and thrive in a seriously competitive environment, along withthe rapidly accelerating evolution of science and technology, it is necessary forenterprises to improve their workforce in terms of both quality and quantity

Therefore, hiring appropriate employees for enterprise becomes the first priority

So how to attract as many qualified candidates as needed? One of the mosteffective solutions is that the recruitment of human resources must be completedto find candidates meeting all qualifications, to adapt the fluctuations ofenvironment

During the internship at Vietmedical Distribution Joint Stock Company, the

author realized that the company not only faced with rivalries among companiesin the same field, but also dealt with competitions from subsidiaries of foreign

manufacturing companies in Vietnam In additional, the company has to expand

constantly its scale to meet the needs of all hospitals throughout the country.Therefore, the recruitment is extremely essential Thus, the author chooses thetopic “A study on Recruitment Process at Vietmedical Distribution Joint StockCompany from 2018 to 2019” The research is implemented with an expect tofind the optimal solutions to improve existing limitations and completerecruitment

4 Purposes of the research

The Study aims at finding out the situation of recruitment at VietmedicalDistribution Joint Stock Company through theoretical basis of recruitment,human resource management in enterprise; drawing out the existing limitationsin recruitment; proposing directions to improve the existing limitations to helpthe organization to have stable and dynamic human resources for the company toaccomplish the goals

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5 Research questions:

This research is offered to answer two following questions:

Question |: What is the recruitment situation of Vietmedical Distribution JointStock Company in the period 2018 — 2019?

Question 2: What are some solutions for further improvement the current processof Vietmedical (if any)?

6 Scope of the research

6.1 Objective of the research: recruitment process at Vietmedical Distribution

Joint Stock Company

6.2 Scope of the research

e Content: Human resource recruitment in Vietmedical Distribution

Joint Stock Company

e Time: the study focuses on human resource recruitment in the period

from 2018 to 2019

e Space: Vietmedical Distribution Joint Stock Company (89 Luong Dinh

Cua, Dong Da, Ha Noi)

7 Methodology

7.1 Sampling

For the survey, about 58 employees of Vietmedical Distribution JSC might beselected to participate in the process (including female as well as male staff) Thesubject of this survey will be employees joining Vietmedical from February 15 to

April 15, 2020 The reason why the author chooses them is that they have

recently participated in the recruitment process that will give the most accurateresults for the survey Besides, there is no departmental discrimination or

hierarchical distinction in this survey so that the result will be certainly objective

7.2 Research methods

7.2.1, Data source

e Secondary data sources

Secondary sources of information are documents published via mass media suchas: books, Internet, websites, etc.; collected from income statement of the

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company during 3 years from 2018 to 2019, figures and information of Human

Resources Department

e Primary data source:

Primary data is collected from the response of employees in questionnaire andinterview

7.2.2 Instrumentation

The survey instrument for this study is a set of questionnaires A total of 58 setsof questionnaires will be distributed to 58 employees to gain information aboutthe recruitment process The questionnaire is divided into two sections Part A

consists of items which elicit the staff's background information, namely their

department, qualification, experience, which aims to ensure objectivity and

fairness among all departments as well as hierarchy within the company ascollecting comments on the recruitment process Part B includes 8 inquiries

focusing on assessing the effectiveness of recruitment process as well as Basedon the participants' answers to these eight questions, the author will draw aspecific view on the real recruitment situation of Vietmedical A copy ofquestionnaire is enclosed in the Appendix

Another instrument for the study is interviewing the manager of recruitment and

a recruiter who have the most insight into recruitment of Vietmedical to help the

author draw a clear conclusion relating to hiring situation as well as suggestseveral reasonable solutions

7.2.3 Method of collecting data

The data was collected by the researcher at Vietmedical Distribution Joint Stock

Company A number of 58 respondents will be involved in this survey The data

collection comprises four phases First, the questionnaire was designed onGoogle Forms by the author Second, the researcher distributed the questionnaireand ensured that the respondents have grasped the purpose of this research inadvance Lastly, the phase collected staff's answers and made an analysis

This method has both advantages and disadvantages In terms of advantages, it islow cost, less time, and it approaches a large number of participants becausenowadays, most people make use of internet and social media By contrast,

questionnaire makes up low rate of return of duly filled it Respondents just filled

short and easy questions and filled randomly with long questions Through these

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points above, we considered carefully in every aspect to apply this method in thebest effective way

7.2.4 Other methods

e Statistical method — comparison:

Statistical method and comparison are used to compare the secondary dataand the primary data from which to draw conclusions relating to laborefficiency of the company

e Observation method:

Having a deep knowledge of what employees actually do by observation, anddirect recognition of relationships between decision makers and othermembers of the organization

e Method of aggregating data

Secondary data is collected, processed, and flexibly applied to prove researchissues Thus, there is an overview of the Company's employment situations,1n particularly successes, limitations, and causes Then severalrecommendations are suggested for future recruitment

8 Research structure

Besides Introduction and Conclusion, the research includes 4 main chapters:

Chapter 1: Theoretical framework: An overview of Human _ Resources

Management and Recruitment

Chapter 2: Introduction of Vietmedical Distribution Joint Stock Company

Chapter 3: The chapter figures out real recruitment situation in VietmedicalDistribution Joint Stock Company in the period from 2018 to 2019

Chapter 4: Recommendations: The chapter provides some solutions to improverecruitment process of Vietmedical Distribution Joint Stock Company

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CHAPTER I: THEORETICAL FRAMEWORK

1.1 Definitions

1.1.1 Human Resource

Human resource is a special form of resources, studied by a large number ofauthors in the world from multiple perspectives Therefore, there will be variousconcepts and different opinions about human resource

According to the United Nations: "Human resource includes knowledge, skills,experience, competence, and creativity relating to the development of eachindividual and the country" In a while, the World Bank defined that humanresource is the entire human capital, including physical strength, mental power,and occupational skills of an individual

In Vietnam, Pham Minh Hac (2001) wrote in his research: “Human resource isall potential labor of a country or a locality, that is, the labor sources areprepared at different levels to willingly engage in any jobs It means that theskilled workers can meet the requirements of mechanism in terms of laborrestructuring and economic restructuring towards industrialization andmodernization” Therefore, human resources should be understood as populationand human quality, including physicality and mentality, health and intellect,competence, quality, and morality of workers which are always ready toparticipate in the socio-economic development of a country or a locality

According to Hoang Chi Bao, he supposed that human resource is considered asa combination of physical strength and mental power, showing the ability ofhuman creativity, quality, performance, and new prospects of humandevelopment It means that the internal structure of human resource includesphysical strength and mental power; the combination of the above two factorsconstitutes the creative capacity of human in the improvement process

In conclusion, although human resource is defined by various authors, thesedefinitions are unified following basic content: human resource is not only the

totality of the quantity and human quality but also the combination of criteria of

mental power, physical strength, moral-spiritual qualities creating the capacity

that human and society themselves have been always mobilizing into the creativelabor process for the development and progress of society

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1.1.2 Recruitment

Recruitment is an activity relating to the process of discovering, maintaining, andcontacting the sources of manpower as the company has demand (Chaudhari,2016) The recruitment has been variously defined by many outstanding authors

as following: According to Dale (1975), “Recruitment is a process to discover

the sources of manpower to meet the requirement of the staffing schedule and toemploy effective measures for attracting that manpower in adequate numbers to

facilitate effective selection of an efficient working force.”

In the word of Decenzo and Robbins, recruitment is identified as "the process ofdiscovering potential candidates for actual or anticipated organizationalvacancies Or, from another perspective, it is a linking activity-bringing togetherthose with jobs to fill and those seeking jobs."

Recruitment is also defined as activities carried on by an organization for the aim

of determining and appealing to talented candidates (Barber, 1998; Costello,

2006; Jovanovic, 2004) It helps in placing the right person in the right vacancy,which is the indication of a high-performing organization Therefore, Tyson andWickramasinghe (2007) supposed that recruitment plays a core part of activitiesin human resource management because the quality of human resource decidesthe success and failure of an organization

In short, recruitment is the process of searching for prospective employees(inside and outside the organization) and stimulating them for application to the

organization; then selecting among them those who best fit the job requirements;along with helping them get acquainted with new businesses and jobs Thisprocess is intended to supplement the necessary workforce to achieve the

company’s goals The recruitment process is considered complete when it

includes staff orientation activities, guiding new employees to integrate into theorganization Recruitment is an important stage determining the quality of laborresources of enterprises

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1.2 Factors affecting employee recruitment in the enterprise

Factors AffectingRecruitment Process

Internal Factors: External Factors:

1 The reputation 1 National Human

2 The financial capacity

3 The Human resources

1.2.1.1, National human resource development policy

The National Human Resource Development Policy is clearly stated in the

Decision No 579 / QD-TTg issued by the Prime Minister on April 19, 2011,approving the Vietnam Human Resource Development Strategy for the periodfrom 2011 to 2020 pointed that: “The overall objective of Vietnam's humanresource development in the period from 2011 to 2012 is to make Vietnamesehuman resources the most important foundation and advantage for the country'ssustainable development, international integration, and social stability; to raisethe level of competitiveness of our human resources to the level of advancedcountries in the region, in which some aspects reach the level of developedcountries in the world "

In this decision, the Prime Minister also highlighted solutions for human resourcedevelopment in the period from 2011 to 2020, aiming to improve the quantityand quality of the national human resources This will bring more advantages aswell as challenges for human resources in general and recruitment activities fororganizations and enterprises in particular

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Educational levels, as well as professional skills, have been improved, moretraining institutions and schools have cooperated with foreign traininginstitutions, colleges, universities which have training program from vocationalto university level All will help recruitment activities to be more favorable inrecruiting high quality, professional and well-trained human resource whichbrings benefits for enterprises

Additionally, the above advantages, there are also major difficulties that require

organizations to invest and improve recruitment When the trained labor force

increases, it also means that unskilled labor will be harder to recruit than before.Besides, labor competition in the labor market will be more and more difficult.Thus, to attract and recruit a large number of excellent candidates, organizationsand enterprises must have large-scale human resource policies and strategies,together with the highly qualified, specialized, and experienced recruitment

apparatus.

1.2.1.2 The labor markets

Recruitment depends greatly on the supply-demand relationship in the labormarket When the supply is higher than the demand, there will be the number ofpeople applying for the same job at the same time, so the manager will havemore opportunities to choose the most suitable candidates for the vacant position.In contrast, when the supply is smaller than the demand, the quality ofrecruitment will be decreased; the employer will deal with various difficulties tofind suitable candidates (Sajedur and Shajedul, 2012)

1.2.1.3 The competition of enterprises in the labor market

The labor competition among organizations hinders the recruitment of good

employees which creates a share of the recruitment market, especiallycompetition among enterprises in the same industry

All organization desires to own both quantity and quality workforce Whether ornot this will be implemented depends significantly on the strength of theorganization's competitiveness Sajedur and Shajedul (2012) reported that the

more competitive an organization is, the more candidates are attracted to, and the

greater the efficiency of recruitment is On the contrary, if the organization is notreputable in the market, it will be difficult for employers to attract excellent

candidates

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1.2.1.4 Factors related to the legal, the change of technology

e Legal environment for enterprises

In VnResource website, the author Ngan Tran (2018) wrote that not only humanresource recruitment, but also all activities of enterprises are limited by theframework of legal documents of the state When hiring employees enterprises

and organizations must comply seriously with the provisions of the State

e The progress of science and technology

Science and technology have been making great strides, creating a new face forhuman life Life is more and more civilized as well as modern Science andtechnology development lead to higher requirements for workers’ qualifications.Simultaneously, the expansion and construction of new technology lines will also

result in recruitment demand more in the enterprise (Ngan Tran, 2018)

1.2.2 Internal factors

Nguyen Ngoc Quan and Nguyen Van Diem have pointed out the internal factorsthat affect the recruitment and selection process as follows: the reputation of theorganization, the financial capacity of the organization, the human resourcespolicy and the competence of the recruitment specialist These factors areexplained as below:

1.2.2.1 The reputation of the enterprise

The reputation of the organization is considered as one of the most influencing

factors It is evaluated through commitment to customers of the quality ofproducts and services, and through community activities of the business “Jf theimage of the organization is not good, employees may not care to apply for thejob and if the image of the organization is good, candidates may wait longer time

to call” (Balasubramanian, 2014)

1.2.2.2 The financial capacity of the enterprise

The financial capacity has directly impacted on the cost of the recruitment andthe attractiveness of talented candidates As having strong financial potential, theenterprise can apply a high remuneration policy for good performers to promoteenthusiasm for work Simultaneously, many recruitment measures can be appliedto inform the recruitment demand to the public

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1.2.2.3 Human resource policies of the enterprise

Employees are exceedingly interested in the training, promotion, andemployment of policies so if these policies are composed appropriately, they willhelp the enterprise attract more candidates Employees are also more confidentand more loyal to the organizations

1.2.2.4 The competence of the recruitment specialist

The competence of the recruiting specialist also directly affects the quality ofrecruitment, such as recruitment expertise and experience, the right level ofawareness relating to the role of recruitment to flexibly use recruitment methods

1.3 Content of the recruitment process

1.3.1 The source of recruitment

Recruitment relates searching for the right candidates and inspiring them to apply

for the vacancies in the organization The candidates may be available inside oroutside the organization Thus, since 2001, Gatewood has indicated that the

sources of recruitment basically include two major sources which are internal and

external sources

1.3.1.1 Internal source

Prach (2018) claimed that internal sources of recruitment refer to motivating theemployees from within the organization to apply for the vacant position It isconsidered as a great option because it is cost-effective, and they tend to hireemployees having a better knowledge of the organization and its policies

Internal sources of recruitment cover three method which are presented as below

e Transfer

The employees of the organization are transferred from present jobs to thesimilar jobs of other departments (Smriti, 2017) It may not involve any changein rank, responsibility, or salary Besides, it not only helps in reducing theboredom and monotony of the employees, but also gives an opportunity foremployees to understand comprehensively the business of company by

experiencing various roles and tasks

e Promotion

According to Sujatha (2020), promotions refer to shifting of persons to higherposition, better prestige, higher responsibilities, and larger salary The enterprise

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considers this method as a reward which aims to encourage employees toimprove their performance as well as reduce employee turnover by creating theexpectation of getting higher positions

about the skills, qualifications, behavior and experience of their acquaintances aswell as of the job requirement Thereby, they can make a suitable match betweenthe vacancy and the most prospective candidate

13.12 External source

Although internal source is priority method of several organizations when theirvacancies need to be fulfilled, all organizations have to use external sources forrecruitment when existing employees are not suitable

Smriti (2017) detailed in his article various methods of external source, includingadvertisement, educational institutions recruitment, employment agencies, etc

1.3.2 The process of recruitment

According to Nguyen Ngoc Quan and Nguyen Van Diem (2010), the recruitmentand selection process include several basic steps as below:

1.3.2.1 Identifying recruitment demands

The Human Resources Department is the advisory body for all levels of the

organization in planning recruitment policies such as: Determining recruitment

needs, etc The identification of recruitment demands aims to determine thecurrent and long-term human resource needs for enterprises Based on productionand business demands as well as development orientations, the enterprise canidentify recruitment demands appropriately

The results of determining the recruitment demands are expressed by twoimportant documents serving the recruitment of enterprises: job descriptions and

job standards Tran Kim Dung (2011) defined that job description is “a document

which provides information related to the specific tasks and responsibilities ofthe job The job description includes the main contents such as the name of the

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Job, job code, rank, the function of the job, the rights of the person performingthe job, conditions” While, Job Performance Standards is considered as astatement of acceptable minimum standard conditions that a person must have tocomplete a job It lists all the main requirements for employees such as educationlevel, foreign language level, experience, health, character, etc

1.3.2.2 Drawing a recruitment plan

Planning plays an essential role in effective recruitment A definite plan willguide recruitment through specific implementation steps and avoid incidents thatare difficult to control Therefore, it is necessary for drawing a specific planincluding recruitment sources, recruitment method and recruitment timelines

e Recruitment sources:

To increase recruitment efficiency for the vacant positions, the organization

needs to consider and choose which job they should take people inside the

organization and which positions they should use external source Theorganization considers selecting recruitment sources for positions based on theadvantages and disadvantages of each recruitment source, shown in Table 1.1

Internal source External source

- It gives staff opportunities to|- It is plentiful in bothadvance in their jobs as well as

creates a competitive

environment stimulating them

to work better, more creatively,

more enthusiastically and more

dedicatedly

quantity and quality which

helps the company have

various opportunities to find

highly qualified workers tomeet job requirements

- It creates a new working

Advantages

- It saves recruiting time as well | style In particular, if

as new employee’s integration | employees from the rival are

time recruited, it is inclined that the

- It minimizes recruitment costs | 0£An1zation will learn

for the company numerous valuable

experiences from the

competitors

Disadvantages |- It limits the attraction of | - The recruitment cost for this

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talents to the organization as | source will be more enormouswell as ignores opportunities for | than the recruitment cost of

seeking highly qualified | the internal source

candidates For small and} _ The organization will take a

medium-sized organizations, if long time for new employees

the only internal source 1s to get acquainted with the job

utilized the quality of labor will | „+ wel] as a new environment.not be improved

- Recruiting from outside- It causes employees to lack sources for leadershipinitiative and creation in new as

positions will lead to a

jobs because they are familiar decrease in the motivation of

with the working style of their employees in the

former jobs organization; together with

- It causes psychological | that, there will be manydisturbance such as | complex issues arising in thesectarianism or internal conflict | process of production andby people who are not | business activities

promoted

(Source: According to Tran Kim Dung, 2011)

Table 1.1: Advantages and disadvantages of two sources of recruitment

e Recruitment methods:

Different sources of recruitment can use distinctive recruitment methods Basedon the selected recruitment source, the Human Resources department needs todecide which recruitment method is optimal to attract the most talented and

suitable candidates for the vacancies

e Recruitment timelines:

After determining recruitment demand, it is necessary to select proper areas torecruit To draw the high-quality employee's attention, the organization shouldconcentrate on urban labor market; universities, colleges, and vocationalinstitutes; industrial and service centers with foreign investment Besides, therecruitment timeline needs to be arranged Nguyen Ngoc Quan and Nguyen Van

Diem (2010) emphasized that the recruitment timeline must be based on the

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objectives of the organization that has been formulated, such as business size,

growth rate and technology

1.3.2.3 Establishing a recruitment committee

It is necessary to set up a recruitment committee to ensure that the recruitment

proceeds in the right order to choose the best candidates The recruitment

committee comprises those who are capable of recognizing and evaluatingcandidates as well as have professional skills and experience in terms ofinterviews and selection to ensure that the chose people are assigned the rightjobs

1.3.2.4 Looking for job applicants

After the recruitment strategy and the recruitment plan are completed, it isnecessary to carry out the activities to find applicants In the highly competitivelabor market, the organization is advised to provide stimulating factors to attractpotential candidates Firstly, the image of the organization is considered the firstelement that attracts attention to employees Therefore, employers need toconvey the positive image of the organization along with the development

potential of the organization in the future In addition, Assoc Dr Nguyen Ngoc

Quan shared that candidates are often attracted by high salaries and bonuses.Thus, he suggested that the organization should pay attention to this factor

1.3.2.5 | Assessing the recruitment process

After finishing the recruitment, the organization needs to evaluate the recruitmentprocess according to these criteria, such as the quality of employees andrecruitment costs

1.3.2.6 Receive and screen

This is the first step in the selection process The recruiting staffs are responsiblefor welcoming candidates, observing the candidate's behavior, examiningcandidates’ profiles which begin with a study of their curriculum vitae and jobapplication letter, then making comparison to the job performance standard Therecruiting officer prepares analysis and evaluation reports for each candidatebased on the results of the investigation, thereby eliminating inappropriate

candidates

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1.3.2.7 Preliminary interview

This step aims to establish the relationship between the applicant and theemployer, to determine the qualifications and capabilities of the candidate toidentify whether they are suitable for the organization's work or not After the

preliminary interview, if the recruiting committee finds that the candidates are

not qualified or not able to take up the job, they will be removed

1.3.2.8 Selection interview

The selection interview is the process of verbal communication betweenrecruiters and job applicants, which is one of the methods of collecting

information for selection decisions In the interview, the candidate will answer

the questions given by the recruiter Besides, the candidate will also give severalquestions for the employer

The goals of the interview can be divided into four main objectives Firstly, theinterviewers aim to find out more information or to check information aboutapplicants Secondly, they indirectly advertise for their organization Then, theemployers want provide applicants with sufficient as well as specific information

relating to job Finally, it helps establish good relationships with candidateswhich enhance the communicating ability of the recruiters

1.3.2.9 Health examination

The goal is to assess the health of the candidate to select people who meet thehealth requirements to be able to work for the organization in the long-term.Physical standards are set by the organization The human resources departmentis responsible for providing standards for the health department as a basis forevaluating the strength of candidates

1.3.2.10 Negotiate the conditions

The process of discussing salaries and remuneration is a negotiating process, so it

depends on the situation and the candidate that the employer chooses the right

solution In addition to salaries, employees work for different goals: to be shown,affirmed, respected, promoted, etc If there is a good initial agreement, the newemployee will work long term with the business The employer will state theconditions and requirements for candidates when being admitted to the companywhich will help candidates make the right decision for themselves

1.3.2.1I Reference check

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To avoid that candidates will provide untruthful information in their curriculumvitae; the organization may check the information provided by the candidate.There are many ways to verify information, such as contacting with the formercompany that the employee previously worked on, or the place where the

employee’s qualifications were issued The re-checked information is the exact

basis for the employer to make the final decision whether or not to accept

1.3.2.12 Welcome and orientation

e Welcoming new employee

Immediately after the decision to probation, the organization will welcome newemployees The purpose is to make new employees feel like a crucial member ofthe organization, be proud of the organization, clearly aware of their roles andresponsibilities to the organization and gain excited to work in an organization

e Orientation training

Employee orientation is intended to help new employees get acquainted with theorganization and start work with high performance Employee orientationprograms often include general information that workers need to know, mainly

information about their rights, benefits, and obligations

1.3.2.13 Probation

This is the period for employees to demonstrate their ability to perform their jobsto sign an official employment contract with the organization Specificrequirements for the probationary process include complying with the provisions

of current law, such as signing of probationary labor contracts, etc The company

must state specifying the tasks that employees are responsible during theprobationary process Finally, managers have to recognize the probationer’spotentials during the probationary period to have an effective employment policyas official recruiting

1.3.2.14 Official recruitment decision

After completing all the recruitment steps, the recruitment committee will issue ahiring decision for the applicant The rationale for this decision is based on the

subjective assessment method in the form of gradual screening, as well as theevaluation results of the interviews, and the candidates' wishes

After making the hiring decision, the employer and the employee need to enterinto a labor contract under the current provisions of the labor law The signed

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labor contract must be compiled based on a contract form set by a competent

state management agency.

1.4 Some criteria to evaluate an effective recruitment process

To analyze the effectiveness of recruitment activities, it is necessary to base onthe criteria, including average cost per hire, fill rate, selection rate, and turnover

rate (Tran Kim Dung, 2011)

AIHR Analytics has given formulas to calculate these ratios as follow:

e Average cost per hire:

(total internal costs + total external costs)Cost per hire =

Total number of hires

The low average recruitment cost associated with the good quality of applicantwill confirm that the expense of recruitment is worthy

e Fill rate

Total position filled

Fillrate =

Total job openings

This ratio is as close to 1 as possible which indicates that the HR Department hasrecruited enough people to fill the vacancies

e The selection ratio

Number of hired candidatesSelection ratio =

Total number of candidates

e Turnover rate

Number of employees who left during a year

Turnover rate =

Average number of employees during a year

The number of employees who left during a year includes voluntarily leavers and

involuntarily leavers The lower the turnover rate is, the more efficient therecruitment of organization is and vice versa

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e Applicant satisfaction

In addition to the criteria listed above, Jennifer (2015) asserts that candidates'satisfaction with the recruitment process is also an important criterion inmeasuring the organization's recruitment efficiency The satisfaction ofcandidates can be mentioned as fairness to the recruiting subjects, the reliabilityof the information obtained, etc To evaluate the effectiveness of recruitmentbased on this criterion, the author has to use a questionnaire

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CHAPTER II: INTRODUCTION OF VIETMEDICAL DISTRIBUTION

JOINT STOCK COMPANY

2.1 Overview of Vietmedical Distribution Joint Stock Company

2.1.1 General information

e Name: VIETMEDICAL DISTRIBUTION JOINT STOCK COMPANY

e Short name: Vietmedical

e Logo

| iM VIETMEDICAL

e Da Nang Brand Office:

- Address: 12 Chi Lang Street, Hai Chau 2 Ward, Hai Chau District, Da

Nang

- Telephone Number: 0236 3898 399

e Ho Chi Minh Brand Office:

- Address: 7th Floor, Thien Nam Building, No 111, Ngo Gia Tu, Ward

No 2, District No 10, Ho Chi Minh City

- Telephone Number: 028 5404 5640 - 028 5404 5642

- Fax: 028 5404 5643

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e Website: www.vietmedical.com.vn

e The process of formation and development

- 12/2006: The company was founded under the name of Viet Medical

Trading and Services Joint Stock Company (Vietmedical)

- 2010: A branch of Vietmedical was established in Ho Chi Minh City

- 2013: A representative office Vietmedical was set up in Da Nang

- 2015: The largest showroom system in Southeast Asia with an area of 400

square meters was inaugurated, including smart operating room and

modern simulation training system

- 11/2017: An international service center was set up which provides 24/7

technical services

- 2019: Viet Medical Trading and Services Joint Stock Company was

merged and became a member of Vmed Group with another name of

Vietmedical Distribution Joint Stock Company

2.1.2 Mission, Vision, Core values

Vietmedical Distribution Joint Stock Company is active in the field of trading

medical equipment and providing medical services which is a special business

field that directly affects the health and well-being of people Therefore, since theestablishment, the management of Vietmedical has determined their vision is “tobecome a leader in providing best solutions and services in health care inVietnam with premium and worldwide brand-name products and systems’,together with their mission is "for the health and happiness of people" Besides,Vietmedical identifies their core values, including Passion - Integrity —Innovation — Discipline - Result — focused

2.1.3 Typical products

2.1.3.1 Distribution of medical equipment

The main business of the company is on Surgery, Intensive Care Unit, PediatricHospital and Sterility Center Vietmedical is currently the exclusive distributor

and official nationwide distributor of the leading global medical brands such as

GE Healthcare (USA), Covidien (USA), Fresenius Kabi (Germany), AniosLaboratoires France, etc The company is always proud of being the leadingcompany in the market share of mechanical ventilation and anesthesia machine in

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Vietnam which overcome the total market shares of Newport and Bennet

Currently, Vietmedical has become a priority partner of more than 500 hospitalsand approximately 100 agents spreading across 63 cities and provinces

2.1.3.2 Technical service

Vietmedical is the first medical equipment company in Vietnam to own aninternational service center 24/7 Therefore, technical service becomes one of theoutstanding products of Vietmedical With a team of well-trained, highlyspecialized, and experienced engineers, the company is always proactive inassisting customers as required instead of waiting for engineers frommanufacturers Currently Vietmedical also provides services such as designconsultancy, technical advice, technical support, supply of components, repair,

and maintenance of equipment, etc.2.1.3.2 Training center

Not only providing customers with high quality and prestigious products butVietmedical has also been recognized and appreciated for how to organize and

implement training programs from the faculty to the inter-hospital conferences.Along with training courses to update equipment knowledge, Vietmedical also

has organized various machine demo programs for many hospitals at both centraland local levels to help medical staff practice on the machines In 2018,Vietmedical inaugurated a training center with a capacity of about 100 people

and since that the company has been selected by a number of Medical

Associations and Ministry of Health to coordinate to organize a number ofprofessional training courses for doctors, nurses, hospital’s engineers

2.1.4 Organizational structure and function of departments in Vietmedical

Distribution Joint Stock Company

2.1.4.1 Organization chart

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Bùi Thị Hué_11162089_ Business English 56B

INFRASTRUCTURE ULTRASOUND

BU HEAD BU HEAD BU HEAD BU HEAD BU HEAD BU HEAD PM PM PM PM PM PM

PS PS PS PS PS PS APP APP APP APP APP APP Sales Support Sales Support Sales Support Sales Support Sales Support Sales Support

KEY ACCOUNT MANAGERS

North Sales Manager South Sales Manager

BACK OFFICE

SUPPLY CHAIN FINANCE & MARKETING DEPT ADMINISTRATION LEGAL DEPT HUMAN RESOURCE

DEPT ACCOUNTING DEPT DEPT

Country Service Supply Chain Chief Financial Marketing

Manager Manager Officer Manager Admin Manager Legal Manager HR Director

Figure 2.1: Organizational structure of Vietmedical Distribution JSC

2.1.4.2 Functions of departments in Vietmedical Distribution JSC

e Board of Directors:

The Board of Directors performs the tasks of managing the finance of institution

according to the provisions of law; deciding on a company's medium-term development strategy, and annual business plan so that its competitiveness and

profitability are improved

e Business UnitsBusiness Units include Infrastructure Unit, Ultrasound Unit, Intensive Care Unit,Surgery Unit, CSSD Unit, and Orthopedics Unit All BUs implement business

plans to achieve revenue according to the target set by the Board of Directors Besides, they advise and propose to the Board of Directors to handle the problems related to the activities of Business Unit or products under the management of Business Unit In addition, they play a supporting role for Key Account Manager terms of presenting their products to customers as well as

advising the solutions for customer’s issues

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e Key Account Manager:This department acts like finding new customers and selling all products owned

by six Business Units to achieve revenue Along with finding new clients, theyalso take care of old customers to keep long-term relationships to sell moreproducts

e Service Department:

The function of Service Department is organizing and implementing services andtechnical activities to support business activities; finding new customers andkeeping contact with old customers to sell service packages

e Supply Chain Department

This department takes responsibilities relating to performing the purchase, import

procedures, delivery, and management of goods

e Finance and Accounting

The Finance and Accounting Department has function of advising the Board ofDirectors to organize the following tasks of accounting all assets, equity,liabilities, financial revenue and expenditure activities timely and fully; buildingbusiness plan and financial plan as well as inspecting and supervising themanagement and compliance with the financial - accounting regime

e Legal Department

Legal department is responsible for maintaining, preventing legal issues that arise.Besides, hey play critical roles in reviewing and drafting contracts, employeepolicies, and handling court cases

e Human Resource Department

Human Resources Department takes responsibilities in hiring and firingemployees, training workers, maintaining interoffice relationships, andinterpreting employment laws

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2.2 Recruitment Process at Vietmedical Distribution Joint Stock

Purpose of the process

Outline a unified structure processes to apply to both internal and externalrecruitment activities, which assists the company to have the most suitablecandidates within the prescribed time as well as approved budget andensures diversity

Define the roles and responsibilities of stakeholders more clearly throughdetailed steps of process

General policy

The company only employs candicates over the age of eighteen

Recruitment process is applied to all employees including both officialand temporary staffs at Vietmedical Distribution JSC All employees arerequired to follow the steps of the process to ensure that the best

candidates are available for all vacancies

If there are any exceptions, it is necessary to be approved in writing by the

Board of Directors

Recruitment term

The recruitment term is only applied to hiring external candidates

The Company applies the estimated deadlines for recruiting activities asspecified in the table 1.1 An extension of this period will only bepermitted if there is agreement with the Head of Business Unit/or

Manager and the Board of Directors

Position Hiring term Note

Officer Within 30 Counted from the date of receipt of

working days | Recruitment Request Form and Job

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