Xây dựng chiến lược nguồn nhân lực tại công ty cổ phần citicom

Xây dựng Chiến lược Nguồn Nhân Lực tại công ty Cổ phần CitiComBUILDING HUMAN RESOURCES STRATEGY AT CITICOM COMMERCIAL JOINT STOCK COMPANY BASIS OF METHODOLOGY OF BUILDING HUMAN RESOURCE STRATEGYThe concept of human resourceCharacteristics of human resources in commercial enterprisesThe connection between business strategy and human resources strategyThe connection between business strategy and human resources strategy

LUÂN VĂN Xây dựng Chiến lược Nguồn Nhân Lực công ty Cổ phần CitiCom BUILDING HUMAN RESOURCES STRATEGY AT CITICOM COMMERCIAL JOINT STOCK COMPANY ACKNOWLEDGEMENT Through research results and completion of this assignment under Strategic Management subject, we have gained useful knowledge, valuable lessons which help us to supplementing new knowledge, science research methods associated between theory and practices Knowledge and methods that we achieved from subjects of the Program Master of International Business Administration has helped us very much to complete this assignment as well as to settle our tasks in near future TABLE OF CONTENTS LUÂN VĂN BUILDING HUMAN RESOURCES STRATEGY AT CITICOM COMMERCIAL JOINT STOCK COMPANY .1 ACKNOWLEDGEMENT SYMBOL AND ABBREVIATIONS LIST TABLE LIST LISTS OF FIGURES, CHARTS FOREWORDS .5 CHAPTER I BASIS OF METHODOLOGY OF BUILDING HUMAN RESOURCE STRATEGY CHAPTER 27 BULDING HUMAN RESOURCE STAGEGY AT CITICOM .27 CHAPTER III 64 SOLUTIONS OF IMPLEMENTING HUMMAN RESOURCES STRATEGY IN CITICOM 64 CONCLUSION 87 REFERENCE 88 SYMBOL AND ABBREVIATIONS LIST - HR: Human resources - BOD: Board of directors - BOM: Board of managers TABLE LIST Table Table 1.1: Table 1.2: Contents SWOT matrix analysis of the company Evaluation of implementation order of the strategy by Table 2.1: Table 2.2: Table 2.3: Table 2.4: Table 2.5: Table 2.6: Table 2.7: GREAT matrix Capital contribution ratio of Citicom’s founders Business performance report from 2006 to 2008 Summary of real situation in Citicom’s labor Some new active projects in 2009 SWOT Analysis of Citicom Summarizing Table of SWOT Matrix Analysis Selecting order of implementing strategy Page 27 28 31 36 38 49 55 62 68 LISTS OF FIGURES, CHARTS List Figure 1.1: Figure 1.2: Figure 1.3: Chart 2.1: Chart 2.2: Chart 2.3: Chart 2.4: Chart 2.5: Chart 2.6: Chart 2.7: Chart 2.8: Contents Process to formulate strategies External environmental factors The decisive factors of industry competition Labor structure by labor asssignment Labor structure by gender Labor structure by educations Labor structure by professional qualifications Labor structure by age Labor structure by working experience Fluctuating world ingot, ingot steel imported into Vietnam and the domestic price Constructive steel production and consumption in the first months in 2009 Page 21 28 31 40 40 41 42 42 43 46 47 FOREWORDS Why choose this topic: Human resources is an essential issue and is one of key points of production forces Manpower is basic decision because it answers the question: Who manufacture and operate machinery and technology?, Who create products, values? When the economy is growing, investment and business, speed dial quickly, technology is modern, production methods is innovative, social production level is rapidly transferring from the automatic economy to the knowledge economy Those require higher and higher quality workforce Human resources not only meet quantity issue but also ensure quality of production forces And human resources can self-activate and develop itself besides production Therefore human resources management is very important to the existence and development of enterprises One of the duties of Human Resource Management is to build human resources strategy Human resources strategy decides success of business strategy and company strategy Most of failures in business and personnel management are due to lack of a true Human Resources strategy or lack of proper implementation Building human resources strategy brings business more practical benefits: - Define clear goals for each stage of enterprises’ business; help enterprises find clear directions in the future to reach set targets - Assist the business managers, human resource managers to see clearly the opportunities and challenges from outside, the real situation, strengths and weaknesses of enterprises; forecast changes in the future to have the active measures to deal with new environment - Human resources strategy helps enterprises exploit and use up their human resources; maximize the power of enterprises to development - Helps enterprises increase the cohesion and consensus between staff and leaders in implementing company’s common objectives - Helps enterprises increase labor productivity, increase administrative efficiency; avoid risk and increase prevention and stopping difficulties happening to enterprises Study methods: Study methods which were applied in this topic are as following: Research through documents and books about theory analysis of building strategies in general and human resources strategy in particular In addition, our group also conducts a practical research at Citicom and use the comparison method to have rational basis for building human resources strategy Also, we are consulted by some experts in human resources management field, experienced lecturers in human and economics issues and people working in field of human resources Objective study: Through the study of theory, the real situation of the company and proposing solutions to build human resources strategy for Citicom, our group wishes: - Applying the theory to practical activities of enterprises, especially small and medium sized enterprises; - All members of the group gain additional knowledge of advanced science research methods and especially all members of the group can apply the research to handle work in organizations that we are working at - Leaders of Citicom’s Board of Directors has have overview, the latest status of real situation of human resources at the company And finally, through the group's research results, the company has gained valuable and practical human resources strategy Topic: “BUILDING HUMAN RESOURCES STRATEGY AT CITICOM COMMERCIAL JOINT STOCK COMPANY” - Structure subject: Beside forewords, conclusion, reference list, the assignment include parts as following: Chapter I: Basis of methodology of building human resources strategy Chapter II: Building human resources strategy at Citicom Chapter III: Human resources solutions at Citicom CHAPTER I BASIS OF METHODOLOGY OF BUILDING HUMAN RESOURCE STRATEGY 1.1 Some basic issues of human resources 1.1.1 The concept of human resources Human resources is referred to "full professional level which people are accumulating and able to bring income in the future (Beng, Dornhusch & Fischer, 1995) Human resources, according to Pro.Pham Minh Hac (2001) is the overall potential labor of a country or a local willing to join a job somehow As defined by the United Nations, human resources is the level of skilled, knowledge and capabilities of all human life on the reality or potential for social economic development in a community Human resources, on narrow meaning and to be countable in planning is defined a part of population in Vietnam Based on that, some of Vietnamese scientists specified that human resources or resource of human consists labor force and labor reserves The labor force is defined as working labor and people in working age willing to work but got no job (the unemployed) Labor reserves include students in the working age, people in working age but not in need of labor When mentioning about human resources, we talk about the level, structure, capability of meeting the requirements of labor market Quality of human resources reflects in the level of knowledge, skills and attitudes of labor The classification of human resources by industries, fields (industry, agriculture, services) are very popular in our country today But when switching to the knowledge economy, labor classification by accession in their job, career will be more suitable So, we can classify workforce into five categories: knowledge labor, management labor, data labor, services labor and production labor Each type has its different contribution to the creation of products Concentration of knowledge and intelligence high or low in labor product depends mainly on the contribution of knowledge labor, management labor and partially of data labor in our country The proportion of noninformed labor is very high in the structure of labor force, so product contains low intelligence In order to increase competitiveness in international markets, ratio of intelligence in the goods need to be stimulated in the near future 1.1.2 Characteristics of human resources in commercial enterprises In three basic elements of all business processes of enterprises, human and their activities (employees) are the most important factor Not only the manufacturing sector requires physical labor demand but circulation of goods also requires this to circulate goods from production areas to consumption areas As the momentum of development, advancement of social production forces, circulations of goods is expanding and ensuring more and more full, timely, synchronous and civilized goods for consumption Hence, this requires labor force in business sector to be increased This is essential force of the whole social activities This type of labor plays a role of transferring goods from production areas to consumption areas Increasing or decreasing of the proportion of this type of labor depends on the development of production forces in society, labor productivity, the management mechanism of the national economy Like workers in material producing enterprises and one in commercial business take an important position and characteristic in the process of business activities of enterprises The first, labor in commercial enterprises is one of three basic elements and moreover key factor of business activities Without people with specific level of profession, technical profession, the whole machine enterprise couldn’t operate it Elements of capital, assets are only necessary conditions for the process of business activities to be done The second, labor in commercial enterprises which is a key factor creates new value Improving labor productivity in commercial enterprises that is the basic reason, determine business efficiency of the enterprise Scale profit, profit growth of the enterprise depends mainly on management workforce of the enterprise The third, working efficiency in commercial enterprises is also limitedly influenced by factors such as working time, physical, intellectual and other psycho physiological factors However, because of particular characteristics of commercial enterprises, labor here has specific characteristics Those don’t perform the function of creating new products but primarily perform the function of transforming morphological value of the product It is the one who buy goods to business in order to meet the needs of production and consumption In other words, labor in commercial enterprises performs services for manufacturers and consumers Labor in this area is performing the function to continue production process in goods circulation stage, performing the function of original circulation, moving product from the seller (the producer and business) to households (units individual consumer, other commercial business) Studying above mentioned characteristics of labor in commercial enterprises is very important to develop human resource strategies, planning salary policy working regimes, recruitment, training policy and developing human resources in commercial enterprises 1.2 Basic issues of strategy 1.2.1 Concept of strategy and human resources strategy In competitive world, sometimes it’s wondered why some companies succeed but others fail? In fact, each enterprise has their way to survive and grow To find out how companies in different sectors, with various conditions and circumstances, the development of strategies how to win competitive advantage we must understand the concept of strategy first According to the traditional way, strategy is defined as follows: "Strategy is the study to find a competitive suitable position in an industry, a scope where competitive activities are taking place.” by Michael Porter “Strategy, in his point of view emphasizes to competitiveness corner”1 According to Alfred Chandler2 Porter,M.E (1981) The contribution of Industrial Organization to Strategic Management New York: Wiley http://www.news.harvard.edu/gazette/2007/05.17/27-chandler.html (June, 10, 2009) 10 suitably to actual conditions 3.4 Solutions to implement evaluation 3.4.1 Opinion surveys Results from the employee opinion surveys are often used a lot in evaluating human resources strategy First, survey includes questions related to issues of strategy implementing at the company: sharing information system, working environment, training and jobs development Results were compared with ones of previous internal investigation Whether it’s better or less effective, the company has to find the reasons and roots caused the problem to have suitable plan for next steps: maintaining, adjusting or applying and seeking for an alternative solution Next, we need a thorough and profound analysis in the survey If solutions are applied in a long route, this should be done for each specific period to ensure that the new program or policy will be announced timely to improve and guarantee that set up initial competitive strategy achieve the best efficiency Investigation measures: may be paper forms, email or website to access and fulfill In survey form, we can ask for evaluation opinion of the importance of strategic solutions which we are applying besides asking for opinion of efficiency of that strategy Enclosed here is an investigation sheet on the situation of human resources implementation (Appendix 2) which our Group has built based on reference some surveys of consulting companies This sheet is used in investigating situation of human resources at Citicom when we were doing this assignment We hope that this will be a format that the company can refer to apply in human resources investigation 3.4.2 Interview As we know that there are a lot of interview methods such as personal interview, group interview, board interview (this can be called discussion table), stressful interview and behavior description interview Hence, the company can 76 apply different methods relying on its purpose Nevertheless, within our group research scale, we just used personal interview and group interview methods Personal interview means that there’s only one interviewer a staff about situation of human resources Group interview refers that one interviewer ask a few staffs in a discussion table at the same time During this interview, all interviewees are arranged to gather around a circular table to discuss some issues and members of group will be responsible for recording and evaluating By this method, our group will have a chance to observe easily and objectively interviewed members’ opinion without afraid of a lot of arisen mistakes On the other hands, interviewee will feel more convenient and announce their opinion, ideas as well as their remarks List of staff joining our interview is referred at Appendix 77 APPENDIX APPENDIX 01: SCORE TABLE OF EXPERTS Expert Criteria Weight Strategy Score Product Strategy Score Product Strategy Score Product Strategy Score Product Strategy Score Product Strategy Score Product Gain G : Gain Risk R : Risk Expense E: Expense Achievable A: Achivable Time T : Time Total 10 PRIORITY ORDER 27.00 26.00 33.50 30.50 29.00 28.50 Expert Criteria Weight Strategy Score Product Strategy Score Product Strategy Score Product Strategy Score Product Strategy Score Product Strategy Score Product Gain G : Gain Risk R : Risk Expense E: Expense Achievable A: Achivable Time T : Time Total 10 PRIORITY ORDER 29.50 27.00 33.00 30.00 29.50 29.00 78 Expert Criteria Weight Strategy Score Product Strategy Score Product Strategy Score Product Strategy Score Product Strategy Score Product Strategy Score Product Gain G : Gain Risk R : Risk Expense E: Expense Achievable A: Achivable Time T : Time Total 10 PRIORITY ORDER 27.50 27.00 33.50 31.00 29.50 32.50 Expert Criteria Weight Strategy Score Product Strategy Score Product Strategy Score Product Strategy Score Product Strategy Score Product Strategy Score Product Gain G : Gain Risk R : Risk Expense E: Expense Achievable A: Achivable Time T : Time Total 10 PRIORITY ORDER 28.50 32.50 33.50 32.50 31.50 29.50 2 Expert 79 Criteria Weight Strategy Score Product Strategy Score Product Strategy Score Product Strategy Score Product Strategy Score Product Strategy Score Product 28.00 27.00 33.00 33.00 29.50 29.00 1 Gain G : Gain Risk R : Risk Expense E: Expense Achievable A: Achivable Time T : Time Total 10 PRIORITY ORDER APPENDIX 02: FORM OF HUMAN RESOURCE INVESTIGATION (Citicom Commercial Joint Stock Company) 80 The information collected from this survey is used only for human resources research in order to consult for Citicom to build human resource development strategy of Citicom period : 2010-2015 Collected information is committed to protect its confidentiality Therefore, please kindly support us to provide information in the attached form When answers to those questions which were answered, please select the appropriate answer by marking (x) in  or by guidelines Once completed the survey, Please send to your Administrative – Foreign Affairs department before 12/10/2009 Which’s department you are working for?  Board of Directors  Focused business department  Finance Accounting Department  Branch  Administrative – Foreign Affairs  Representative Office Dept  Exporting – Importing Dept Statement of your age?  Age 20 - 30  Age 41 - 50  Age 31 – 40  > Age 51 What’s your professional training? 81  Foreign Trade  Engineer  Foreign Language  Others  Economy Are you proficient in computing office applications?  Excellent  Normal  Proficient  Limited How many years of working experience you get in importing and exporting  Less than 01 year  01- 03 years  03-05 years  Over 05 years How many years of working experience you get working at Citicom?  Dưới năm  Từ đến năm  Từ đến năm  Từ thời điểm thành lập Công ty How you feel about recruitment activities at Citicom?  Very serious  Normal  Serious  Not serious How you feel about the training and development at Citicom?  Focused and logical  Normal 82  Focused but not logical  Not focused and not logical How is your total income per month?  Less than 5mil  15-20 millions  5-10 millions  Over 20 millions  10 – 15 millions 10 Which’s following activity at Citicom make you feel most satisfied?  Recruitment  Evaluation of working performance  Training and development  Labor remuneration 11 Have you ever been usually sent to classes of improving professional?  Never  Once or twice per year  Regular 12 How you think about evaluation of working performance at Citicom?  Very fair  Normal  Fair  Not fair 13 Do you want to work in long-term with Citicom?  Yes  No 83 14 Which things make you want to work in long term with Citicom? ( please priority numbered 1,2,3,4 )  Income  Favorite jobs  Working environment  High appeciation and promotion 15 Is trade union of the company really promoting their role?  Very well  Normal  Not yet 16 How you think about group activities created by Citicom’s trade union  Very interesting and useful  Normal  Useless and waste of time 17 Please list five most difficult problems (by priority of importance) about HR that the company is facing to 1) 2) 3) 4) 5) 84 18 Please list five specific solutions that company need to prioritize implementation to development HR of company in future 1) 2) 3) 4) 5) We would like to thank you for your enthusiastic support and positive cooperation Wish you a good health and happiness 85 GLOBAL ADVANDCED MASTER OF BUSINESS ADMINITRATION APPENDIX 03: LIST OF INTERVIEWED EMPLOYEE (Citicom Commercial Joint Stock Company) STT Full name Lê Phụng Thắng Phạm Viết Vinh 60 10 Trần Quang Bình Phùng Vân Hà Trần Văn Hải Nguyễn Thị Hạnh Phạm Thúy Hiền Ngô Gia Hưng Lê Phụng Hưng Đỗ Thị Hoa 11 Hoàng Thị Hồng Hoa 12 13 Trần Văn Hòe Nguyễn Thu Huyền Position General Director Chairman – Deputy Unit General Director Head of Receiving Sales Hanoi Branch Hai Phong Representative Deputy Manager Assistant Staff Office Focused Business Dept Focused Business Dept Hai Phong Representative Deputy Director Sales Cashier Office Hanoi Branch Hanoi Branch Finance – Accounting Staff Dept Importing – Exporting Sales Deputy Manager Dept Hanoi Branch Finance – Accounting 14 Chu Thu Huyền Staff Dept Administrative – Foreign 15 Lê Huỳnh Đình Khánh Staff Affairs Dept HCMC Representative 16 17 18 Quách Thị Lan Mai Văn Nghiệm Trịnh Ngọc Phương Head of Stock Lái xe nâng hàng Phó trưởng phòng Office Hanoi Branch Hanoi Branch Importing – Exporting 19 Lê Phụng Quang Deputy Manager Dept Hai Phong Representative Director Staff Chief Accountant Office Hanoi Branch Hai Duong Factory Finance – Accounting Staff Dept Administrative – Foreign 20 21 22 23 Phạm Viết Quang Trần Thế Quý Trịnh Thị Thanh Nguyễn Đức Thiện 86 a GLOBAL ADVANDCED MASTER OF BUSINESS ADMINITRATION 24 25 Ngô Văn Thuật Nguyễn Trí Trực Worker Head of Representative Affairs Dept Hai Duong Factory HCMC Representative 26 Hán Minh Tuân Deputy Director Office Hanoi Branch CONCLUSION Citciom company was founded since 2003 In coming time, the organization is still continuing to complete from head office to branches, representative offices and factories Also, it’s the revision, completion of company strategy, business strategy to be suitable withr vision, target of the company To meet these changes, the company needs to take human as the centre; consider development of human resources is one important work to improve the capacity of staff Development of human resources is one of three inseparable parts of capacity development: developing human resources, system organization Inside that, human resource 87 a GLOBAL ADVANDCED MASTER OF BUSINESS ADMINITRATION development is an essential part needs to be focused and solved systematically, as well as to be planned development in the Congress of Shareholder and Board of Directors level It’s affirmed that with right strategy, and unanimity from the Board of Directors to all staff across the company, we believe that the company will succeed in their human resources strategy, using human resources effectively to meet maximum requirements that company’s mission set out With limited time as well as the capacity of group members, this assignment may not thoroughly solve problems of human resources as well as the fact that strategic solutions are not enough and proper We hope to receive comments and editing from teachers and readers Yours sincerely REFERENCE Human resources management – Huong Huy – Transportation Publishing House PhD Tran Kim Dung (2005) – “Human resources management” Statistics Pubishing House Doan Gia Dung “Talking to intergration of human resources strategy with company strategy” – Da Nang Economy University Associate Prof Le The Gioi; PhD Nguyen Thanh Liem, MA Tran Huu Hai (2009) “Strategy management” – Statistics Publishing House 88 a GLOBAL ADVANDCED MASTER OF BUSINESS ADMINITRATION Competitive Strategy , Maichael E Porter 1980 Competitive Advatage, Maichael E Porter 1985 Kramar R., McGraw P & Schuler.R (1998), Human Resource Managemennt in Australia, Longman; Lee Dyer & Richard A Shafer (1998), “From Human Resource Strategy to Organizational Effectiveness: Lessons from Research on Organizational Agility”, Cornell University ILR School John Bratton (2nd edition),” Strategic human resource management”, Chapter II P.38-P.71 10 Rahim Mosahab (2009) ,” Human Resource Management and its application in International Organizations”, Ph D Candidate, School of Management Universiti Sains Malaysia WEBSITE: www.humanresourcesmanagement.co.uk www.hrvietnam.com www.hr.com http://nqcenter.wordpress.com http://www.cemd.ueh.edu.vn http://www.kienthuckinhte.com http://chinhphu.vn http://www.provenmodels.com http://www.marketingteacher.com 10 http://www.workinfo.com 89 a GLOBAL ADVANDCED MASTER OF BUSINESS ADMINITRATION 90 a [...]... of strategies and objectives of the company 26 CHAPTER 2 BULDING HUMAN RESOURCE STAGEGY AT CITICOM 2.1 Overview of Citicom Commerical Joint Stock Co 2.1.1 History: - Type, name and location: Company name: Commercial Joint Stock Company Foreign Trade name: Commercial Joint Stock Company Abbreviation: CITICOM Citicom which is a kind of joint stock run under Enterprise Law and other current regulations... of exporting: main product is cast iron and current exporting market is Taiwan, Malaysia and Spain Citicom s products are competitive price, high quality and highly evaluated by customers Citicom s slogan is: Solidarity – Effeciency– Development 2.1.2 Business characteristics - Major business section: Citicom specializes in exporting and importing industrial steel products; manufacturing and selling... rules • Assigning responsibility and clarifying that responsibility • Detailed training and practicing • Pay by products • Evaluation of working performance aims to • Designing simple products Increase marketing • Job description • Design new products • • Give priority for research and development Supervising staff should not be so detailed • Focus on reputation, quality of products and services Outsourcing... Building, Pham Hung Road, Hanoi Website: www .citicom. com.vn - History: CITICOM was officially founded on 1 June 2003 under Certificate of Business Registration number 0103002300 on 23 May 2003 by Hanoi Authority for Planning and Investment Its major business is exporting, importing and consuming industrial steel products First registered charter capital of Citicom is VND 3.200.000.000 contributed by... increased up to 45 billion VND During that time, Citicom set up more branches and representative officies in some cities, provinces where demand of steel consumption is high and often to serve consumers more options Especially in 2008, Citicom respectively established representative offices in Hai Phong, Ho Chi Minh City and a branch in Hanoi Nowadays, Citicom is building Steel structure and synchronous... Analysis of internal environment The ability of enterprises is a basic factor to decide what companies can do, business strategies and functionality level strategy can be successfully implemented or not To ensure the feasibility of strategy, we have to evaluate real situation, indentify strengths, weaknesses when building strategy Through this, we can identify real ability of human resources of enterprises... company’s authority Researching, analyzing and evaluating potentiality of foreign partners when company intend to joint business with Assisting General Director to welcome guests, negotiate and sign contracts with foreign customers Collecting information in order to expand international market * Citicom branch in Hanoi and Representative office in Hai Phong, HCM: Preservation commodity, assets, materials... Equity 4 Revenue 5 Profit before tax 6 Profit after tax 7 Profit rate/equity Profit 8 rate/revenue Quantum Comparision (+/-) Most of financial targets of Citicom growed obviously from 2006 to 2008 - Charter capital of the company in 2006 was only 24 billion VND, but increased to 32 billion VND by 2007 and 45 billion VND by 2008 The average growth rate of charter capital is 36% Total assets of Citicom. .. after tax / average equity in three years is 24% Economic crisis in the world 32 and Vietnam has caused many losses to enterprises, not Citicom out of them Profit rate / revenue in 2006 was 28.49%, but only remains 21.06% in 2007 In 2008, Citicom tried their best to overcome many difficulties to maintain domestic market share of steel distribution However, profit rate / equity did not increase significantly... 2.3: Summary of real situation in Citicom s labor Type of labor Total Quantity Ratio 44 Details: Allocation by labor assignment + Managers 15 34% + Professional labor 29 66% + Male 27 61% + Female 17 39% 17 39% Allocation by gender: Allocation by age + Age 20 – 30 33 + Age 30 – 40 15 34% + Age 40 – 50 08 18% +Age 50 – 55 or 60 04 9% + Post-graduate 02 5% + University 18 41% + College 15 34% + Intermediate