Luận văn Chiến lược Quản trị nguồn nhân lực tại công ty Moto Yamaha Việt Nam

Setting up a Human Resource Management Strategy for YMVN, expecting to contribute to the success of the Company strategyXÂY DỰNG CHIẾN LƯỢC QUẢN TRỊ NGUỒN NHÂN LỰC CHO CÔNG TY MOTO YAMAHA VIỆT NAM GÓP PHẦN THÀNH CÔNG CHO CHIẾN LƯỢC CÔNG TYChapter I: Theory review to set up a Human Resource Management StrategyChapter II: Setting up a Human Resource Management Strategy in Yamaha Motor Vietnam Co., Ltd. Chapter III: Solutions to implement Human Resource Management Strategy at Yamaha Motor Vietnam Co., Ltd.

XÂY DỰNG CHIẾN LƯỢC QUẢN TRỊ NGUỒN NHÂN LỰC CHO CÔNG

TY MOTO YAMAHA VIỆT NAM GÓP PHẦN THÀNH CÔNG CHO CHIẾN

LƯỢC CÔNG TY SETTING UP A HUMAN RESOURCE MANAGEMENT STRATEGY FOR YMVN, EXPECTING TO CONTRIBUTE TO THE SUCCESS OF THE

COMPANY STRATEGY

PREAMBLE

Reason for choosing the subject:

Today, the modern business environment has been making the strictest challenges ofall in comparison with what the businesses used to cope with Each change in thebusiness environment make further pressure so that the businesses must change,initiatively get familiar with new technologies, new products, new services to meetthe higher and higher demand of the customers The added value of the improvement

in defining competition advantage requires the organizations to attract, train andmaintain the amount of staffs with best quality As time go by, and despite thechange in the environment, the people in the organization themselves have to createthe ability to maintain the competition advantage In the past, strategic competitionadvantage may be reached through seeking better environment, receiving cheaperfinance sources or marketing new products, or discover new technologies which havenot ever been known about Beside the work of approaching cheaper capitalresources, products of higher quality, new technology, since the late 1990s, thechange in business environment has set up many more requirements, which focusmore on the factor of human resource This fact requires new approach to human

resource management, in which the business must have strategies on human resourcemanagement, or, human resource management in strategic direction

Human resource strategy plays a very important role in the success of the overallstrategic target of a business It contributes to the success of the company on theaspects of: work quality, ability to renovate, productivity, etc These are key factorsbringing success to the enterprise However, not every enterprise can succeed inplanning and building up strategies on human resource Success or failure alsodepends on the appropriation of the strategy with the vision The question is that:how to have a human resource strategy appropriate with the general strategy of theenterprise

Yamaha Motor Vietnam Company Limited (YMVN) is one of the major enterprisesoperating in producing motors in Vietnam market In competing with the otherenterprises in Vietnam, the Company has to suffer from a huge competition pressurefrom such competitors as Honda, Suzuki, SYM, etc The Company also has to make

a strategy for itself As a functional department which takes charge of Humanresource management, Personnel Department also needs to build up an appropriatestrategy, meeting the requirements of production, catching the development of theenterprise and help the enterprise achieve the targets set up

The Group chose the subject: Setting up a Human Resource Management Strategyfor YMVN, expecting to contribute to the success of the Company strategy

The target of the research:

Basing on the knowledge obtained through many subjects, especially the subjectStrategy and Human resource Management, the whole group has set up a HumanResource Management Strategy for YMVN There are many issues mentioned onHuman resource Management: recruitment, training, assessment, wages, etc andaccording to the procedure of building strategy, the group has given an overallhuman resource strategy for the Company to ensure:

 The Company has assigned correct work to correct persons

 The Company has personnel with good skills, having good opinionsand attitude in work

 The staffs and officers working here all have chance to develop intheir occupation

Researching method

The methods applied in the subject include:

Study through documents and books to have theoretic analysis on building strategies

in general and in building human resource strategy in detail

Besides, research practically and compare to have reasonable arguments andeffective proposals for building human resource strategies The group has asked forconsultancy by some experts in the field of human resource management who lecture

or work on the field:

1/ Ass Prof Dr Vu Hoang Ngan – Lecturer in Economics and Humanresource Development Faculty of National Economy University

2/ Mrs Nguyen Thi Huyen Chi – HR General Manager - Ford VietnamLimited

3/ Mrs Dinh Nhu Quyen – HR Manager - Toyota Vietnam Company

4/ Mr Nguyen Van Lam – Former HR Manager - Panasonic ElectronicVietnam Company

We have together discussed to find the answer which strategy should be carried outfirst, which one should follow, what is the priority order? The assessment andpriority settings are based on our results of meeting with company leaders andexperts from specialized field Experts and business leaders as well have the commonopinion: the threats and weakness of business should be preferably solved firstly;they are red alerts which the company needs to put at top priority The next priority isthe strategies for taking advantages and upholding the company’s strength And to

have an overall assessment, the scorecard for all strategies should be set for favorablecomparison and selection.

- Award of 1 point for each strategy which eliminates one threat or improvesone weak point of the company

- Award of 0.5 point for each strategy which takes advantage or upholds onestrong point of the company

The total score of the strategy shows its efficiency to affect and support businessstrategies as well as its importance against company’s matters

Project structure:

Beside the preamble, conclusion, list of references, the report includes 3 chapters:

Chapter I: Theory review to set up a Human Resource Management Strategy

Chapter II: Setting up a Human Resource Management Strategy in Yamaha Motor

Vietnam Co., Ltd

Chapter III: Solutions to implement Human Resource Management Strategy at

Yamaha Motor Vietnam Co., Ltd



CHAPTER I THEORY REVIEW TO SET UP

A HUMAN RESOURCE MANAGEMENT STRATEGY

In this chapter, we examine the strategic management & strategic human resourcemanagement This chapter also examines whether it is possible to speak of different

‘models’ of HR strategy and the degree to which these types of HR strategysystematically vary between organizations As for the question of whether there is apositive association between different HR strategies and organizational performance,

we are of the opinion that, given the importance and volume of the researchsurrounding this issue, the topic warrants an extended discussion In the chapter, weaddress a number of questions, some essential to our understanding of what thespecific meanings of strategic management & strategic human resource managementare, how to manage the strategy, which levels of strategy there are…

1.1 Strategic management:

1.1.1 Specific meaning of strategic management:

The word ‘strategy’, deriving from the Greek noun strategies, meaning

‘commander in chief’, was first used in the English language in 1656 Thedevelopment and usage of the word suggests that it is composed of stratus (army)and agein (to lead) In a management context, the word ‘strategy’ has nowreplaced the more traditional term – ‘long-term planning’ – to denote a specificpattern of decisions and actions undertaken by the upper echelon of theorganization in order to accomplish performance goals Somebody defines strategicmanagement as ‘that set of managerial decisions and actions that determines thelong-run performance of a corporation’ The others take a similar view when theydefine strategy as ‘an action a company takes to attain superior performance’ (14,P.38-39) Generally:

Strategic management is a coordinated series of actions which involve the deployment of resources to which one has access for the achievement of a given purpose

1.1.2 Process of strategic management:

In the descriptive and prescriptive management texts, strategic management appears

as a cycle in which several activities follow and feed upon one another Thestrategic management process is typically broken down into five steps:

1 mission and goals

The first step in the strategic management model begins with senior managersevaluating their position in relation to the organization’s current mission andgoals The mission describes the organization’s values and aspirations; Goals are thedesired ends sought through the actual operating procedures of the organization andtypically describe short-term measurable outcomes

Environmental analysis looks at the internal organizational strengths andweaknesses and the external environment for opportunities and threats The factorsthat are most important to the organization’s future are referred to as strategicfactors and can be summarized by the acronym SWOT – Strengths, Weaknesses,Opportunities and Threats

Mission and goals

Management philosophy Values

Environmental analysis

Internal scan External scan

Strategic formulation

Strategic choice Corporate Business Functional

Strategy implementation

Leadership Structure Control systems Human resources

Strategy evaluation

Operating performance Financial performance

Figure 1.1: The strategic management model

Source: Human resource management: theory & practice (John Bratton & Jeffrey Gold , 2003)

Strategic formulation involves senior managers evaluating the interaction betweenstrategic factors and making strategic choices that guide managers to meet theorganization’s goals Some strategies are formulated at the corporate, business andspecific functional levels The term ‘strategic choice’ raises the question of whomakes decisions and why they are made The notion of strategic choice also drawsattention to strategic management as a ‘political process’ whereby decisions andactions on issues are taken by a ‘power-dominant’ group of managers within theorganization Child affirms this interpretation of the decision-making process when

he writes: When incorporating strategic choice in a theory of organizations, one isrecognizing the operation of an essentially political process, in which constraintsand opportunities are functions of the power exercised by decision-makers in thelight of ideological values

Strategy implementation is an area of activity that focuses on the techniques used

by managers to implement their strategies In particular, it refers to activities thatdeal with leadership style, the structure of the organization, the information andcontrol systems, and the management of human resources Influential managementconsultants and academics emphasize that leadership is the most important anddifficult part of the strategic implementation process

Strategy evaluation is an activity that determines to what extent the actual changeand performance match the desired change and performance

The strategic management model depicts the five major activities as forming arational and linear process (14, P.39-41)

1.1.3 Hierarchy of strategy

Another aspect of strategic management in the multidivisional businessorganization concerns the level to which strategic issues apply Conventionalwisdom identifies different levels of strategy – a hierarchy of strategy (Figure 1.2):

1 corporate

2 business

3 functional.

Corporate-level strategy

Corporate-level strategy describes a corporation’s overall direction in terms of itsgeneral philosophy towards the growth and the management of its various businessunits Such strategies determine the types of business a corporation wants to beinvolved in and what business units should be acquired, modified or sold Thisstrategy addresses the question, ‘What business are we in?’ Devising a strategy for

a multidivisional company involves at least four types of initiative:

 Establishing investment priorities and steering corporate resources intothe most attractive business units

 Initiating actions to improve the combined performance of thosebusiness units with which the corporation first became involved

 Finding ways to improve the synergy between related business units inorder to increase performance

 Making decisions dealing with diversification

Human resource management: philosophy, policies, programmes, practices, processes, relationships with managers, non -managers, trade unions, customers

and suppliers

Corporate management

Business unit 3

Business unit 2

Business unit 1

Finance Manu-

facturing

Human resources Marketing

How do we support the business-level competitive strategy?

Figure 1.2: The hierarchy of strategic decision making

Source: Human resource management : theory & practice (John Bratton & Jeffrey Gold, 2003)

Business-level strategy

Business-level strategy deals with decisions and actions pertaining to each businessunit, the main objective of a business-level strategy being to make the unit morecompetitive in its marketplace This level of strategy addresses the question, ‘How

do we compete?’ Although business-level strategy is guided by ‘upstream’,

business unit managementmust craft a strategy that isappropriate for its ownoperating situation In the1980s, Porter (1980, 1985)made a significant contribution

to our understanding of

formulating a framework thatdescribed three competitivestrategies: cost leadership, differentiation and focus

The low-cost leadership strategy attempts to increase the organization’s marketshare by having the lowest unit cost and price compared with competitors Thesimple alternative to cost leadership is differentiation strategy This assumes thatmanagers distinguish their services and products from those of their competitors inthe same industry by providing distinctive levels of service, product or highquality such that the customer is prepared to pay a premium price With the focusstrategy, managers focus on a specific buyer group or regional market A marketstrategy can be narrow or broad, as in the notion of niche markets being verynarrow or focused This allows the firm to choose from four generic business-level strategies – low-cost leadership, differentiation, focused differentiation andfocused low-cost leadership – in order to establish and exploit a competitiveadvantage within a particular competitive scope (Figure 1.3) (14, P.41-43)

Functional-level strategy

Functional-level strategy pertains to the major functional operations within thebusiness unit, including research and development, marketing, manufacturing,finance and HR This strategy level is typically primarily concerned withmaximizing resource productivity and addresses the question, ‘How do wesupport the business-level competitive strategy?’ Consistent with this, at thefunctional level, HR policies and practices support the business strategy goals.These three levels of strategy – corporate, business and functional – form a hierarchy

of strategy within large multidivisional corporations In different corporations, thespecific operation of the hierarchy of strategy might vary between ‘top-down’ and

‘bottom-up’ strategic planning The top-down approach resembles a ‘cascade’ inwhich the ‘downstream’ strategic decisions are dependent on higher

‘upstream’ strategic decisions The bottom-up approach to strategy- makingrecognizes that individuals ‘deep’ within the organization might contribute tostrategic planning Strategic management literature emphasizes that the strategies atdifferent levels must be fully integrated

The need to integrate business strategy and HRM strategy has received muchattention from the HR academic community, and it is to this discourse that we nowturn (14, P.39-44)

1.1.4 Some tools of strategic analysis:

The bellows are some about the analyzing the strength of businesses' position andunderstanding the important external factors that may influence the position Theprocess of Strategic Analysis can be assisted by a number of tools, including:

a/ SWOT analysis:

The vision of a company will rarely, if ever, change However companies exist in aconstantly changing environment, and are themselves constantly changing Thus,despite the constancy of the vision, change must also be monitored and evenharnessed for business success to be possible

As we saw in the introductory example, therefore, one can hardly get to the term action stage of strategy without knowing your internal strengths and weaknessesand external opportunities and threats You need to understand yourself and yourenvironment, and so do companies A SWOT analysis is therefore the next part ofstrategic management It involves scanning the external environment foropportunities and threats and the internal environment for strengths and weaknesses.This can be done for long, medium and short term time frames, leading to differentlevels of planning.

short-Please distinguish between a strength and an opportunity, and between a weaknessand a threat The difference is in the source of the thing being scanned If it stemsfrom some aspect of the organization, it is a strength or weakness If it involvessomething coming from outside of the organization, then it is an opportunity and athreat They can seem confusing and inseparable For example, legislation has beenpassed requiring companies to undertake a certain level of affirmative action This is

an external event, possibly involving aspects both of opportunity and threat Asregards the internal capability for compliance, one organization may find it easy tocomply Their ability to comply (perhaps they already have a multiculturalworkforce, which is in this case a strength) nullifies any threat from the legislation

Do you see how internal and external factors interact? In fact, their heterogeneous workforce may even turn the legislation into an opportunity!

already-Another company, however, may find that it has internal weaknesses in this regardbecause it has a very homogenous workforce and a bad reputation among previouslydisadvantaged communities, making it difficult to recruit The legislation will bemore of a threat than an opportunity for the time being The workforce is in this case

a weaknesses, related to the threat but not stemming from the threat The affirmativeaction legislation did not cause the lack of diversity, it merely turned it into aweakness Although the internal and external factors interact, they are not the same.For the organization as a whole, the external environment includes factors such as theeconomy (interest rates, exchange rates, inflation, productivity, globalization,

potential recessions etc), the labour market (for example, we have high levels ofunemployment, labour surplus, global labour markets and skills retention, inflexiblelabour markets, impact of aids and rising health costs), technology (is the businesscapital vs labour intensive, how much information technology is required etc), thesocio-political and cultural environment (looks at the attitudes, beliefs, values, normsand behavior associated with a given geographic area, how diverse a particularsociety is and the impact of diversity management, government action such aslegislation) etc…

The internal environmental analysis involves an audit of all internal policies andprocedures In so doing, the quality and quantity of resources available are assessed.There are hundreds of resources looked at in the corporate strategy, including:

• skills and ability levels of the workforce

• etc (again, there are hundreds!)

Once the company knows its environments (which is an ongoing process), it is in aposition to make more specific strategies for the company Remember however thatthese are always strongly based upon the more general but central core ideology andenvisaged future Also, it is wise to note that you can’t always have all theinformation you need - sometimes, you just have to go ahead (11, P.14-16)

b/ Value chain analysis:

The value chain is a systematic approach to examining the development ofcompetitive advantage It was created by M E Porter in his book, CompetitiveAdvantage (1980) The chain consists of a series of activities that create and build

value They culminate in the total value delivered by an organization The 'margin'depicted in the diagram is the same as added value The organization is split into'primary activities' and 'support activities (Figure 1.4).

Figure 1.4: Value chain of M.E.Porter (1985)

Outbound Logistics.

The goods are now finished, and they need to be sent along the supply chain towholesalers, retailers or the final consumer

In true customer orientated fashion, at this stage the organization prepares theoffering to meet the needs of targeted customers This area focuses strongly uponmarketing communications and the promotions mix.

Technology Development.

Technology is an important source of competitive advantage Companies need toinnovate to reduce costs and to protect and sustain competitive advantage This couldinclude production technology, Internet marketing activities, lean manufacturing,Customer Relationship Management (CRM), and many other technologicaldevelopments

Human Resource Management (HRM).

Employees are an expensive and vital resource An organization would managerecruitment and selection, training and development, and rewards and remuneration.The mission and objectives of the organization would be driving force behind theHRM strategy

Firm Infrastructure.

This activity includes and is driven by corporate or strategic planning It includes the Management Information System (MIS), and other mechanisms for planning and

control such as the accounting department

(20,http://www.marketingteacher.com/Lessons/lesson_value_chain.htm)

Value chain analysis can be broken down into a three sequential steps:

(1) Break down a market/organization into its key activities under each of themajor headings in the model;

(2) Assess the potential for adding value via cost advantage or differentiation,

or identify current activities where a business appears to be at a competitivedisadvantage;

(3) Determine strategies built around focusing on activities where competitiveadvantage can be sustained

(20,http://tutor2u.net/business/strategy/value_chain_analysis.htm)

c/ Five forces model:

An industry is a group of firms that market products which are close substitutes foreach other (e.g the car industry, the travel industry)

Some industries are more profitable than others Why? The answer lies inunderstanding the dynamics of competitive structure in an industry

The most influential analytical model for assessing the nature of competition in anindustry is Michael Porter's Five Forces Model, which is described below:

Porter explains that there are five forces that determine industry attractiveness andlong-run industry profitability These five competitive forces are

- The threat of entry of new competitors (new entrants)

- The threat of substitutes

- The bargaining power of buyers

- The bargaining power of suppliers

- The degree of rivalry between existing competitors

Threat of New Entrants

New entrants to an industry can raise the level of competition, thereby reducing itsattractiveness The threat of new entrants largely depends on the barriers to entry.High entry barriers exist in some industries (e.g shipbuilding) whereas otherindustries are very easy to enter (e.g estate agency, restaurants) Key barriers toentry include:

- Buyers' willingness to substitute

- The relative price and performance of substitutes

- The costs of switching to substitutes

Bargaining Power of Suppliers

Suppliers are the businesses that supply materials & other products into the industry.The cost of items bought from suppliers (e.g raw materials, components) can have asignificant impact on a company's profitability If suppliers have high bargaining

Figure 1.5: Five forces analysis Source: http://www.marketingteacher.com

power over a company, then in theory the company's industry is less attractive Thebargaining power of suppliers will be high when:

- There are many buyers and few dominant suppliers

- There are undifferentiated, highly valued products

- Suppliers threaten to integrate forward into the industry (e.g brandmanufacturers threatening to set up their own retail outlets)

- Buyers do not threaten to integrate backwards into supply

- The industry is not a key customer group to the suppliers

Bargaining Power of Buyers

Buyers are the people / organizations who create demand in an industry

The bargaining power of buyers is greater when

- There are few dominant buyers and many sellers in the industry

- Products are standardized

- Buyers threaten to integrate backward into the industry

- Suppliers do not threaten to integrate forward into the buyer's industry

- The industry is not a key supplying group for buyers

Intensity of Rivalry

The intensity of rivalry between competitors in an industry will depend on:

- The structure of competition - for example, rivalry is more intense where thereare many small or equally sized competitors; rivalry is less when an industry has aclear market leader

- The structure of industry costs - for example, industries with high fixed costsencourage competitors to fill unused capacity by price cutting

- Degree of differentiation - industries where products are commodities (e.g.steel, coal) have greater rivalry; industries where competitors can differentiate theirproducts have less rivalry

Switching costs rivalry is reduced where buyers have high switching costs i.e there is a significant cost associated with the decision to buy a product from analternative supplier

Strategic objectives when competitors are pursuing aggressive growthstrategies, rivalry is more intense Where competitors are milking profits in a matureindustry, the degree of rivalry is less

- Exit barriers - when barriers to leaving an industry are high (e.g the cost ofclosing down factories) - then competitors tend to exhibit greater rivalry (20,http://tutor2u.net/business/strategy/porter_five_forces.htm)

d/ PEST analysis:

PEST analysis is concerned with the environmental influences on a business

The acronym stands for the Political, Economic, Social and Technological issues thatcould affect the strategic development of a business

Identifying PEST influences is a useful way of summarizing the externalenvironment in which a business operates However, it must be followed up byconsideration of how a business should respond to these influences (20,http://tutor2u.net/business/strategy/PEST_analysis.htm)

The table below lists some possible factors that could indicate importantenvironmental influences for a business under the PEST headings (Table 1.1)

Table 1.1: PEST analysis

Source:http://tutor2u.net/business/strategy/PEST_analysis.htm

Political / Legal Economic Social Technological

- Government spending on research

gender; family size and composition; changing nature

of occupations)

- Government and industry focus on technological effort

- Lifestyle changes (e.g Home working, single households)

- Speed of technology transfer

- Employment law

- Taxation (impact on consumer disposable income, incentives to invest in capital equipment, corporation tax rates)

- Attitudes to work and leisure

- Rates of technological obsolescence

- Government

organisation /

attitude

- Exchange rates (effects on demand

by overseas customers; effect on cost of imported components)

- Education - Energy use and costs

- Stage of the business cycle (effect

on short-term business performance)

- Health & welfare - Impact of changes in

1.2 Process to set up Human Resource Management Strategy:

1.2.1 Specific meaning of Strategic Human Resource Management

The SHRM literature is rooted in ‘manpower’ (sic) planning, but it was the work

of influential management gurus affirming the importance of the effectivemanagement of people as a source of competitive advantage, that encouragedacademics to develop frameworks emphasizing the strategic role of the HRfunction and attaching the prefix ‘strategic’ to the term ‘human resourcemanagement’ Interest among academics and practitioners in linking the strategy

concept to HRM can be explained from both the ‘rational choice’ and the

‘constituency-based’ perspective There is a managerial logic in focusing attention

on people’s skills and intellectual assets to provide a major competitive advantagewhen technological superiority, even once achieved, will quickly erode From a

‘constituency-based’ perspective, it is argued that HR academics and HRpractitioners have embraced SHRM as a means of securing greater respect for HRM

as a field of study and, in the case of HR managers, of appearing more ‘strategic’,thereby enhancing their status within organizations (Figure 1.6) (14, P.45)

Strategic human resource management is the process of linking the human resource function with the strategic objectives of the organization in order to improve performance (14, P37).

What Employees Have

Skills Abilities Competencies

What Employees Feel

Motivation Commitment Engagement

Satisfaction Retention

Operational Outcomes

Productivity Quality Shrinkage Accidents

What Employees Do

Task behavior Discretionary behavior Counterproductive behavior Attendance Turnover

Financial Outcomes

Expenses Revenues Profits

Figure 1.5: HR strategy & performance

Source: Human resource strategy (Patrick M Wright , 2008)

1.2.2 Steps in setting up Human Resource Management Strategy

The organization as a whole will have an overall strategic plan, usually formulated

by the top management team Each of the organization’s parts (departments ordivisions) must both have input into that plan, as well as being shaped by the plan.Thus HR must have a significant input into the overall strategy (factors involvingpeople such as skills levels are, after all, significant strengths or weaknesses) Thus

HR has impact at the strategy formulation stage (11, P.5)

Besides, a comprehensive Human Resource Management Strategy plays a vital role

in the achievement of an organization's overall strategic objectives and visiblyillustrates that the human resources function fully understands and supports thedirection in which the organization is moving A comprehensive HRM Strategy willalso support other specific strategic objectives undertaken by the marketing,financial, operational and technology departments (20, http://www.workinfo.com) Inturn, once a broad corporate strategy has been articulated, the HR function will be anintegral part of the implementation of that strategy Thus the HR strategy must line

up with the corporate strategy (11, P5) This can be seen in the diagram below(Figure 1.7)

The diagram shows us, in just the same way a business requires a marketing orinformation technology strategy it also requires a human resource strategy to supportcorporate strategy

Figure 1.7: Diagram of strategy & HRM

Source: Strategy and HRM (Gregory John Lee)

In developing such a HR strategy two critical questions must be addressed

Corporate strategy formulation

Divisional strategies

Evaluation (Measurement etc)

 What kinds of people do we need to manage and run the business tomeet the strategic business objectives?

 What people programs and initiatives must be designed andimplemented to attract, develop and retain staff to compete effectively?

In order to answer these questions four key dimensions of an organization must beaddressed These are:

o Culture: the beliefs, values, norms and management style of theorganization

o Organization: the structure, job roles and reporting lines of theorganization

o People: the skill levels, staff potential and management capability

o Human resources systems: the people focused mechanisms whichdeliver the strategy - employee selection, communications, training,rewards, career development, etc

Frequently in managing the people element of their business senior managers willonly focus on one or two dimensions and neglect to deal with the others Typically,companies reorganize their structures to free managers from bureaucracy and drivefor more entrepreneurial flair but then fail to adjust their training or reward systems.When the desired entrepreneurial behavior does not emerge managers frequentlylook confused at the apparent failure of the changes to deliver results The fact is thatseldom can we focus on only one area What is required is a strategic perspectiveaimed at identifying the relationship between all four dimensions

If we require an organization which really values quality and service we not onlyhave to retrain staff, we must also review the organization, reward, appraisal andcommunications systems

The pay and reward system is a classic problem in this area Frequently organizationshave payment systems which are designed around the volume of output produced If

we then seek to develop a company which emphasizes the product's quality we mustchange the pay systems Otherwise we have a contradiction between what the chiefexecutive is saying about quality and what your payment system is encouraging staff

to do

There are seven steps to set up a human resource management strategy:

1.2.2.1 Step 1: Get the 'big picture'

Understand the business strategy

• Highlight the key driving forces of business What are they?

e.g technology, distribution, competition, the markets

• What are the implications of the driving forces for the people side of thebusiness?

• What is the fundamental people contribution to bottom line businessperformance?

1.2.2.2 Step 2: Develop a Mission Statement or Statement of Intent

That relates to the people side of the business

Do not be put off by negative reactions to the words or references to idealisticstatements - it is the actual process of thinking through the issues in a formal andexplicit manner that is important

• What do your people contribute?

1.2.2.3 Step 3: Conduct a SWOT analysis of the organization

Focus on the internal strengths and weaknesses of the people side of the business

• Consider the current skill and capability issues

Vigorously research the external business and market environment High light theopportunities and threats relating to the people side of the business

• What impact will/ might they have on business performance?

• Consider skill shortages?

• The impact of new technology on staffing levels?

From this analysis we then need to review the capability of our personneldepartment Complete a SWOT analysis of the department - consider in detail thedepartment's current areas of operation, the service levels and competences of ourpersonnel staff

1.2.2.4 Step 4: Conduct a detailed human resources analysis

Concentrate on the organization's COPS (culture, organization, people, HR systems)

• Consider: Where we are now? Where do we want to be?

• What gaps exists between the reality of where we are now and where wewant to be?

Exhaust the analysis of the four dimensions

1.2.2.5 Step 5: Determine critical people issues

Go back to the business strategy and examine it against our SWOT and COPSAnalysis

• Identify the critical people issues namely those people issues that we mustaddress Those which have a key impact on the delivery of the businessstrategy

• Prioritize the critical people issues What will happen if we fail to addressthem?

Remember we are trying to identify where we should be focusing our efforts andresources

1.2.2.6 Step 6: Develop consequences and solutions

For each critical issue highlight the options for managerial action generate, elaborateand create - don't go for the obvious This is an important step as frequently peoplejump for the known rather than challenge existing assumptions about the way things

have been done in the past Think about the consequences of taking various courses

of action

Consider the mix of HR systems needed to address the issues Do we need toimprove communications, training or pay?

What are the implications for the business and the personnel function?

Once we have worked through the process it should then be possible to translate theaction plan into broad objectives These will need to be broken down into thespecialist HR Systems areas of:

• employee training and development

1.2.2.7 Step 7: Implementation and evaluation of the action plans

The ultimate purpose of developing a human resource strategy is to ensure that theobjectives set are mutually supportive so that the reward and payment systems areintegrated with employee training and career development plans

There is very little value or benefit in training people only to then frustrate themthrough a failure to provide ample career and development opportunities(20,http://www.accel-team.com/human_resources/hrm_08.html)

1.2.3 Some guides to Human Resource Management Strategy:

In essence, an HR strategy should aim to capture the people element of what anorganization is hoping to achieve in the medium to long term, ensuring that:

• it has the right people in place

• it has the right mix of skills

• employees display the right attitudes and behaviors, and

• employees are developed in the right way

If, as is sometimes the case, organization strategies and plans have been developedwithout any human resource input, the justification for the HRM strategy may bemore about teasing out the implicit people factors which are inherent in the plans,rather than simply summarizing their explicit people content

An HRM strategy will add value to the organization if it:

•articulates more clearly some of the common themes which lie behind theachievement of other plans and strategies, which have not been fully identifiedbefore; and

• identifies fundamental underlying issues which must be addressed by anyorganization or business if its people are to be motivated, committed and operateeffectively

The first of these areas will entail a careful consideration of existing or developingplans and strategies to identify and draw attention to common themes andimplications, which have not been made explicit previously

The second area should be about identifying which of these plans and strategies are

so fundamental that there must be clear plans to address them before the organizationcan achieve on any of its goals These are likely to include:

• workforce planning issues

• succession planning

• workforce skills plans

• motivation and fair treatment issues

• pay levels designed to recruit, retain and motivate people

• the co-ordination of approaches to pay and grading across the organization tocreate alignment and potential unequal pay claims

• a grading and remuneration system which is seen as fair and giving properreward for contributions made

• wider employment issues which impact on staff recruitment, retention,motivation etc

• a consistent performance management framework which is designed to meetthe needs of all sectors of the organization including its people

• career development frameworks which look at development within theorganization at equipping employees with employability so that they can cope withincreasingly frequent changes in employer and employment patterns

• policies and frameworks to ensure that people development issues areaddressed systematically : competence frameworks, self-managed learning etc The HRM strategy will need to show that careful planning of the people issues willmake it substantially easier for the organization to achieve its wider strategic andoperational goals

In addition, the HRM strategy can add value is by ensuring that, in all its other plans,the organization takes account of and plans for changes in the wider environment,which are likely to have a major impact on the organization, such as:

• changes in the overall employment market - demographic or remunerationlevels

• cultural changes which will impact on future employment patterns

• changes in the employee relations climate

• changes in the legal framework surrounding employment

• HR and employment practice being developed in other organizations, such asnew flexible work practices

Finding the right opportunity to present a case for developing an HRM Strategy iscritical to ensuring that there will be support for the initiative, and that its initialvalue will be recognized by the organization.

Giving a strong practical slant to the proposed strategy may help gain acceptance forthe idea, such as focusing on good management practice It is also important to buildearly or quick wins into any new strategy (20, www.workinfo.com)

CHAPTER II SETTING UP A HUMAN RESOURCE MANAGEMENT STRATEGY

FOR YAMAHA MOTOR VIETNAM Co., Ltd.

2.1 General about Yamaha Motor Vietnam Co., Ltd (YMVN)

2.1.1 Establishment and Development history of YMVN

Yamaha Motor Company Limited (YMC) of Japan set its official representativeoffice in Vietnam in Ho Chi Minh City since 1993 and in Hanoi since 1995 The bothrepresentative offices of YMC in Vietnam have step by step study the demand and

ability of Vietnam market for their products Regarding this as potential market forproducts with Yamaha brand, YMC has gathered with the partners who areVINAFOR and Long Leong Industries Malaysia (HLI) to set up the Factory here.YMVN has total investment of 80,268,000.00 USD and chartered capital of24,250,000.00 USD, of which:

- YMC contributes : 11,155,000 USD, accounting for 46%

- VINAFOR contributes : 7,275,000 USD, accounting for 30%

Before having license, the Joint Venture parties have researched the market inVietnam carefully In 1994, Yamaha Showroom – Vinafor in HCMC has opened,setting the landmark of start of Yamaha in the Southern region

Then, Yamaha Showroom – Vinafor in Hanoi and Yamaha Showroom – Vinafor in

Da Nang city were opened in 1995

In January 1998, YMVN (YMVN) has been granted with Business License No.2029/GP by the Ministry of Planning and Investment with functions and tasks:produce, assemble and consume motors with Yamaha brand; supply motor parts,spare parts and motor maintenance, repair services

Company name: Yamaha Motor Vietnam Co., Ltd (YMVN)

Head office and Factory: Trung Gia commune, Soc Son district, Hanoi

Branch in Hanoi: 67 Ngo Thi Nham, Hai Ba Trung, Hanoi

Branch in Ho Chi Minh city: 38 Truong Quoc Dung, District 10, Ho Chi Minh

Since the establishment, Yamaha Motor Vietnam has continuously developed andexpanded its operation and achieved many successes That is shown through thefollowing events (Figure 2.1):

Figure 2.1: Landmark of development

Source: Introduction of YMVN

+ Function and tasks of the Company:

According to the license registered, the Company operation field is very expansive:deal in not only products of industrial machines as hydraulic machine, pump, etc butalso in water engines But at the moment, in the first years, the major field ofinvestment of the company is: produce and deal in products of motorbike withYamaha brand: import and produce domestically motor parts, assemble high qualitymotors in Vietnam, meeting the demand of the domestic motor market

2.1.2 Organization structure:

Figure 2.2: Organization chart of YMVN

Source: Organization chart of YMVN (updated on 1 Jan 2009)

YMVN organization structure is in form of direct – function, including ManagementBoard, Board of Directors and functional departments (Figure 2.2):

Director General: Lead the hold Company, be responsible before the State and laws,

is the representative assigned by the Management Board At the moment, the position

of Company General Director is being hold by Japanese

Vice Director General: Include of two persons, representative for the rest two joint

venture partners: one is Vietnamese and the other is Malaysian, support the DirectorGeneral on necessary work, acting on behalf of the Director General when thisperson is absent, being directly in charge of 2 detailed work: one in charge ofAdministration – Personnel and the other in charge of Finance

Production unit: including many departments directly directing the production of the

company:

 Production plan department: Basing on the data given from sales department

to make production plan for the month, year, and give decision on changes in plans

of the month, year

 Purchasing department: in charge of order goods for the Company: materials,tools serving in the Company operations Based on the plans set out by productionand planning department

 Maintenance department: Including technical engineers and managers ontechnique on the Company production line

 Quality Assurance department: control the product quality from input tooutput products

 Design department: give product models appropriate with the customers’demand

 Admin – personnel department: Help the Director General on personnel andadmin management, carry out policies for the staffs

 Marketing department: in order to promote sales by promotion and marketapproach

 Sales department: take charge of control sales to the market and selling todistributing agencies

 Spare parts department: take charge of supplying products to the market, tothe stores and alternative spare parts agencies

 Service department: repair, maintain, guarantee for the Company customersand clients using products with Yamaha brand in the whole country

 Finance – Accounting Department: directly managed by the Company ViceDirector General, advice on finance for the Director General, communicate withother departments on accounting, finance, wage

Besides, there are Committees taking charge of other important issues, such as:Environment Committee, Quality Committee, Safety Committee, and CooperateSocial Responsibility Committee, and Information - Technology Committee.

Figure 2.3: Process of manufacturing

Source: Introduction of YMVN

Above is the diagram of the company production procedure, the flow of materialsthrough all the steps of production and processing to complete a finished motor anddeliver to the customer (Figure 2.3)

From purchasing rude material, painting, welding, etc and assembling into completemotors, and to the final step of strict quality control, a Yamaha motor is accepted forex-work

2.1.3 Production &Business results:

The lines of high quality and good-looking motors have been being in the mind ofthousands of consumers throughout the country of Vietnam

At the moment, the Company is producing the following kinds of motor:

- Moped motors including such models as: Sirius, Jupiter, Exciter

- Scooter motors including such models as: Mio, Nouvo, Taurus

The Company is currently producing many kinds of motor with different styles sothat the customers have various choices It is expected that until 2009, the amount ofYamaha motor used in the market reaches 2.5 million motors (figure 2.4)

Chart 2.4: Yamaha MC Population

Source: Sales report of YMVN

With attractive styles, appropriate with the youths, the amount of motorsproduced by the Company is increasing in days Looking at the followingdiagram, we will see the strong growth of the Company in the process of takingmarket share from other firms (Figure 2.5)

Figure 2.5: Chart of market shareSource: Marketing division ofYMVN

The Company market share isgrowing more and more It can besaid that it is thanks for the correctdirection, and other functionalstrategies, which showed efficiency

in enhancing and supporting theCompany business strategy tosucceed( Figure 2.6)

We must mention not only to theamount of motors sold, the marketshare that the Company holds, butalso the vast amount of agencies thatthe Company is building from the

Figure 2.6: Dealer map

Source: Sales Division of YMVN

agencies, with stores of which the signs indicating

the logo Yamaha have helped the Company be

more and more familiar to the Vietnamese Before,

we usually talk about Honda, but now it changed!

The name of Yamaha has been accompanying with

Honda in the market of Vietnam motors

2.1.4 Human Resource Characterizes

YMVN has been established for 10 years Up to this year 2009, the Company hastotal number of staff of 4066 persons, with personnel structure as below (Table 2.1) Table 2.1: Manpower structure

Source: HR Division of YMVN(updated on 30 Jul 2009)

Details on leadership from chief and above are distributed according to departments

as below (Chart 2.8):

Chart 2.8: Ratio of chiefs & above

Source: HR division of YMVN (updated on July 2009)

The Company has a character of production in time of business, so the Companystaffs do not have to gather all in the Factories, but distributed equally in the regions,branches throughout the country (Chart 2.9)

Chart 2.9: Male & female ratio of locations

Source: HR division of YMVN (updated on July 2009)