Building the strategy for recruiting key employees in th milk food joint stock company the period of 2019 2024

ĐẠI HỌC QUỐC GIA HÀ NỘI KHOA QUẢN TRỊ VÀ KINH DOANH --- NGUYỄN ĐÌNH TUẤN BUILDING THE STRATEGY FOR RECRUITING KEY EMPLOYEES IN TH MILK FOOD JOINT STOCK COMPANY THE PERIOD OF 2019-2024

ĐẠI HỌC QUỐC GIA HÀ NỘI KHOA QUẢN TRỊ VÀ KINH DOANH

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NGUYỄN ĐÌNH TUẤN

BUILDING THE STRATEGY FOR RECRUITING KEY EMPLOYEES IN TH MILK FOOD JOINT STOCK

COMPANY THE PERIOD OF 2019-2024

XÂY DỰNG CHIẾN LƯỢC TUYỂN DỤNG NHÂN LỰC CHỦ CHỐT CHO CÔNG TY CỔ PHẦN THỰC PHẨM SỮA TH GIAI ĐOẠN 2019-2024

Chuyên ngành: Quản trị kinh doanh

Mã số: 60 34 01 02

TÓM TẮT LUẬN VĂN THẠC SĨ QUẢN TRỊ KINH DOANH

NGƯỜI HƯỚNG DẪN KHOA HỌC: TS PHẠM ANH TUẤN

HÀ NỘI - 2019

ABSTRACT

1 Rationale

Recently, the investment into hi-tech agriculture is the potential opportunity for domestic and foreign investors In which, the dairy farming and milk production is one of fields creating a rapid growth in Vietnam

With the process of global integration, Vietnam is considered as a developing country with high urbanization speed and improved living standard that is one of factors to stimulate the consumption of milk and other products made from milk

According to Central Institute for Economic Management’s report, at the workshop on

“Vietnam’s economy: Reform and prospects in a volatile world” shown that, in first 6 months of

2018, Vietnam’s economy has achieved 7.08 %, the highest growth rate since year 2011 Vietnam is

a crowded population country, the rate of population increment is more than 1%, the rate of GDP is 7-8%/ year, and the average income per person is increased day by day The more concern on the nutrition, health and stature of the Vietnamese is one of factors that make the demand of milk consumption be at high growth rate

According to Vietnam Dairy Association, the turnover of milk in 2017 achieved above 100,000 billion VND, 10.5% higher rate than year 2016 The fresh milk gained 1,333.4 million liters, 6.6% increase compared in 2016 Powdered milk reached 127.4 thousand tons that made 10.4% more than in

2016 Imported milk and other products made from milks achieved 868 million USD increasing 1.9% comparing to year 2016 and export turnover is more than 300 million USD The average consumption is

26 liters/year/person This number will be increased to 28 liters of milk/year/person Moreover, the milk market newly started in Vietnam 20 years ago considered as a young market comparing with developed and developing countries It shows that milk market in Vietnam has huge potential for development

Capture this potential area and own outstanding business thinking, TH True Milk has launched new clean & fresh milk products to the market since 2010 With the principle of keeping the essence of nature in each product, TH Group (THG) commits to serve customers with clean, safe, fresh and nutritious products To implement this, TH Group has equipped modern technology

of Israel, applied the advanced management system and completed production process from the stage of farming to the distribution of products to consumers In order to operate this largest scale farm in Southeast Asia, the corporation has invested huge and adequate human resources

The founder of TH Group - Ms Thai Huong shared: "Investing in technology and

production lines is the focus, investing in people is strategic” Being as a young business, going

after the dairy industry in Vietnam, if you want to fulfill your ambition, with modern machinery, advanced process is not enough that THG needs to have human resources are really elite and enthusiastic

Being aware of the important role of human resources in improving the competitiveness, THG has been oriented in the development of human resource management strategy TH Milk Food Joint Stock Company (THMF JSC) is a dairy farm management company, harvesting and processing milk initially for the corporation THMF JSC locates at Phu Quy Plateau, a mountainous area in Nghia Dan District, Nghe An Province This place is far from the center, less densely populated area There are some big competitors nearby the company such as Vinamilk, Masan, and Mavin Ausfeed etc The company has a large number of human resources with diversified and complicated structure so the Group is very interested in improving and improving the quality of human resources here Although the group has long planned to attract, retain, train and develop them, it is not specific for each sub-company Because of the urgent problem mentioned above, after the study and research in the MBA international program - HSB - Vietnam National University, Hanoi, the author decides to choose the topic of " Building the strategy for recruiting key employees for TH Milk Food Joint Stock Company the period of 2019 - 2024" for the graduated thesis In order to complete the research process, the author must understand and clarify the theoretical basis on human resource needs, factors affecting the recruitment, compensation & benefits, training, career pathways, performance evaluation and human resources development for the next 5 years

2 Literature Review

Building the strategy for recruiting key employees plays an increasingly important role in the sustainable development of organizations and enterprises As a result, research on the topic of strategy has become increasingly popular among scholars There are a lot of scientific researches, publications and documents both inside and outside the country to discuss personnel strategy in general as well as recruitment strategies in particular

Oversea research

In the human resources management, to own a talent team who are key members and suitable with the business operation of each company/corporate plays a significant meaning To build this strategy for recruiting key employees/positions, each company bases on their capability, policy and strategy to look for these ones by their own ways

The master thesis of Amin W Mugera about “managing human resources on six dairy

farms in Michigan” (2004) This thesis figured out how dairy farms manages their human resources

and how the farms achieve competitive advantage through the human resource management function The author used the qualitative methods of survey and expert interviews to collect information & data However, this research cannot solve the problem that THMF JSC is facing to

The research “Human Resources Management for Farm Business in Manitoba”, Canada

(January 2013) This research only focused on recruiting, hiring, orientation, training, performance

motivation & employee relation The author figured out the way how to reduce turnover, improve the quality of employees, and run a HR plan that has a positive and direct impact on the business However, this research cannot completely apply for a new dairy company located in a mountainous area and in a tropical country like THMF JSC

The research "Strategic Human Resource Management: Practical implementation?" by Ken

Lovell (2009) Southern Cross University In his research topic, the author has in-depth research and analysis of the theory of human resources strategy that is implemented Specifically, the author has focused on the issues in human resource management in terms of remuneration and compensation, career pathways, performance management and human resource management practices By this research, the administrators and HR Managers can have an overview of HR Practices However, the lessons and shares withdrew from the application of human resource management theory to the reality that is only apply in the construction field in general, cannot be universally applicable to many specific areas and it is characterized by dairy farming and milk production

In the “handbook of human resource management practice” written by Armstrong (page

514), the author has in-depth analyses recruitment plan, recruitment strengths and weakness, identifying the source of candidates and selection methods However, these analyses is common theoretical issue, to be applied into enterprises like dairy farming in TH True Milk, it needs to be practical apply with specific solution and methods

Domestic research

In Vietnam, there are many research topics that address to the completion and improvement

of recruitment strategies and to take measures to improve the effectiveness of human resource management such as:

The Journal of Industry and Commerce published the "Current status of Human Resources

management in Vietnam" by Master Nguyen Thi Huyen (2017) According to the author, human

beings directly and indirectly involve in all activities of enterprises As a result, if an enterprise has

an elite workforce in terms of both quantity and quality, it will have an overwhelming competitive advantage However, not many Vietnamese enterprises could effectively exploit the potential of their staffs The author has focused on the status analyst of farmers, workers and white collars in Vietnam

The research “Analysis of human resource management practices” of Indonesia Labor

intensive light manufacturing industries The result shown three groups of factors:

1 Outside Factors: Labor law; Market conditions; Labor market and characteristics of labor supply

2 Corporate governance factors: Policy; Recruitment; Education; Performance Management and timely Information management

3 Work Environment Factors of Corporate: Workplace, Public Characteristic, factory location and material source

In my thesis, the author has decided to uses “Maslow’s hierarchy of needs" to be the

theoretical basis According to Maslow, human needs are divided into two main groups: basic needs and meta needs Therefore, in this thesis, author conducts an analysis of basic needs and meta needs related to employees Understanding the psychology of employees for leadership is important and necessary because it helps administrators or managers to build a good and loyal team who are willing to devote themselves to the company development and success by using proper recruitment policies to best meet those needs within company’s ability and still bring the highest efficiency for the enterprise

Maslow’s Hierarchy of Needs

Figure1: Maslow’s Hierarchy of Needs Sources: Maslow’s Hierarchy

Esteem needs

Self-esteem, the respect of others, recognition, praise,

achievement, status and responsibility

Protection, security, order, law, limits, stability and familiarity

Biological and physiological needs

Basic life needs - air, food, drink, shelter, warmth, sleep

Therefore, it may confirm that my thesis topic “Building the strategy for recruiting key employees in TH Milk Food Joint Stock Company the period of 2019-2024" is a new, urgent and different topic with previous ones The thesis researches the fundamental and systematic issues in developing the strategies for THMF JSC in order to find a suitable way to utilize and develop the efficient human factors for the company sustainable development Especially in the present period, the world is facing the trend of globalization, economic integration has become an indispensable trend for both of opportunities and challenges Along with the explosion of information, science and technology achievements, the recruitment strategy also needs to be updated, renovated itself accordingly The completion of recruitment strategies for key employees is a significant decision for businesses, helping it grow faster, strengthen their brand and reputation

3 Research Subject

The research aims to clarify the situation, factors have influence on the recruitment for key employees in THMF JSC through the following activities: recruitment planning, analyzing recruitment strengths and weaknesses, analyzing requirement, identify sources and candidates, selection methods, references and offers for the company's recruitment strategy to 2024

4 Research Objectives

Theoretical systems of recruitment

Analyzing, evaluating and clarifying the current recruitment situation of human resources at THMF JSC

Building scientific and practical basis for recruitment strategy for key positions in THMF JSC until

2024

5 Research Questions

The research questions which served as a guide to this thesis are:

1 What factors can affect to the efficiency of key personnel recruitment?

2 What are the challenges associated with the key recruitment of the company?

3 Does current recruitment policy attract the potential candidates from outside?

4 What are the ways to help improve recruitment on key employees of the company?

6 Research Scope

 Scope of Space: The topic does research on THMF JSC

 Scope of Time:

+ For the second data: the research uses actual data of THMF JSC from 2016 to 2018

+ For the primary data: the research collect data from October 2018 to March 2019

 Scope of content:

+ The research only focuses on building recruitment strategy for key positions in THMF JSC the period of 2019-2024

+ Purpose of the interview:

The author chooses this method for the purpose of researching to understand the perspectives of humans, research results by descriptive data through quantitative methods such as in-depth interviews

+ Informant Group: The questionnaire is divided into 3 groups:

• Questionnaire for the managers: 15 Heads of Department will be directly interviewed By using the questionnaires, the author expect these ones will give their comments on current recruitment policy, factors affecting to key employees and some advices to improve the situation at present

• Questionnaire for the internal potential employees: 30 potential employees of 15 departments (2 potential employees per department) will be interviewed The author expect these ones will give their comments on current recruitment policy, factors affecting to them, their expectation to improve this situation and give proposal on current recruitment policies

• Questionnaire for the external potential candidates: 30 potential candidates who has applied in THMF will be interviewed/surveyed via the questionnaire The author expect these ones will give their comments on job posting, employer branding, employees referrals, company websites, headhunters…The interview questionnaire is sent to 30 potential candidates via emails

7.2 Data Analysis Methods

- Comparison, collation, generalization

- Using statistical analysis method: calculate the proportion, density

Besides, the thesis also uses some models for analysis and synthesis of external elements required for recruitment strategy development

8 Contributions of the research

- Theory: The topic analyzes and systematizes the basic theories on recruitment strategy for enterprises

- Practice: The topic will build the scientific and practical basis of recruitment strategy for key employees in THMF JSC Based on the analysis of resources to propose the strategic solutions

9 Proposed Thesis Structure

Apart from the abstract, acknowledgment, content table, abbreviations list, reference, the content of the thesis is structured in 4 chapters:

Chapter 1: Theoretical background on recruitment strategies in enterprises

Chapter 2: Research methods & designs

Chapter 3: Analyzing factors & current situation of the company that affects to the recruitment

strategies for key employees in THMF

Chapter 4: Building a recruitment strategy on key employees in THMF JSC from 2019 to 2024

CHAPTER 1 THEORETICAL BACKGROUND ON RECRUITMENT STRATEGIES

1.1 Definition and concepts

1.1.1 Definition of Strategy

Alfred D Chandler, Jr., author of Strategy and Structure (1962), the classic study of the relationship between an organization’s structure and its strategy, defined strategy as “the determination of the basic long-term goals and objectives of an enterprise, and the adoption of courses of action and the allocation of resources for carrying out these goals.”

In 1994, Henry Mintzberg, an iconoclastic professor of management at McGill University, took the entire strategic planning establishment to task in his book, The Rise and Fall of Strategic Planning In effect, Mintzberg declared strategy did indeed have several meanings, all of which were useful He indicated that strategy is a plan, a pattern, a position, a perspective and, in a footnote, he indicated that it can also be a ploy, a maneuver intended to outwit a competitor

1.1.2 Definitions of Recruitment

Various researchers have contributed to the field of HRM, and have offered intensive and profound knowledge on the branches of HRM especially on recruitment and selection

Pilbeam & Corbridge (2006, 143) have defined the term recruitment as follows:

“A process which aims to attract appropriately qualified candidates for a particular position from which it is possible and practical to select and appoint a competent person or persons.”

1.1.3 Concepts of Recruitment

According to Costello (2006) recruitment is described as the set of activities and processes used to legally obtain a sufficient number of qualified people at the right place and time so that the people and the organization can select each other in their own best short and long term interests In other words, the recruitment process provides the organization with a pool of potentially qualified job candidates from which judicious selection can be made to fill vacancies

1.1.4 Develop and select strategies

In order to develop the organization's human resource development strategy, it is necessary

to carefully analyze the internal and external factors affecting the organization, identify the strengths, weaknesses, opportunities and threats that the company is facing, thereby helping the company to build strategic plans in a specific and effective way, suitable to the conditions of the organization, promoting strengths and overcoming weaknesses to build best human resource development strategy

Tools to build strategies include the following matrices:

* Matrix of external factors (EFE- External Factor Evaluation)

Matrix of external factors allows strategists to summarize and assess economic, social, cultural, political, natural, integration factors that affect organizations

The EFE matrix is implemented in 5 steps:

Step 1: List external factors that primarily affect the organization

Step 2: Classify the importance from 0.0 (unimportant) to 1.0 (very important), the total of assignments assigned to these elements must be 1.0

Step 3: Classify the elements from 1 (least affected) to 4 (most affected)

Step 4: Multiply the weight of the factor with rating point to determine the total of important points for the organization

Step 5: Summary of all factors points to determine the total of important points for the organization The maximum score of the matrix is 4, the lowest is 1 point If the total score> 2.5 indicates that the organization responds well to the external environment, if the total score <2.5 indicates that the organization reacts weakly to the external environment

* The SWOT matrix combines assessed strengths, weaknesses, opportunities and threats from the

EFE and the IFE matrix that forms the strategy

In order to develop the strategy, which can be based on the SWOT analysis model, we must synthesize Opportunities, Threats, Strengths, and Weakness to combine these elements into strategic plan groups for the organization

Strengths and weaknesses are internal factors of the organization, while opportunities and threats are external influencing factors, SWOT allows analysis of various factors that have a relative impact on the company competitiveness SWOT analysis is the assessment of data arranged in SWOT format in a logical order to help readers understand and can present and discuss to make decision easier

1.2 Sources of Recruitment

Figure 2: Internal and External Sources of Recruitment

Source: Sources of Recruitment (Prashant, 2009)

- Low Labor Turnover Rate

- Performance data of applicants is available

- Limited Internal Sources

- No new ideas to the organization

- Competition with co-workers

Table 1: Advantages and Disadvantages of Internal Recruitment

- Bring new ideas into the organization

- Needed skill and talent

- Increase diversity

- Business secret and ideas from competitors

- Slow and expensive

- Time used for training

- New recruits have to get familiar with organization’s operations & cultures

- Internal candidates not selected or promoted may lose their motivation

Table 2: Advantages and Disadvantages of External Recruitment

1.3 Recruitment Analysis & Channels

Recruitment is considered a continuously developing process that needs to be evaluated and modified according to every successful or unsuccessful procedure The recruitment process does not always follow the same structure but in general it consists of a few common phases The process

Source of recruitment

External Internal

commonly starts with assessing the need to recruit which is followed by carrying out a job analysis and defining selection criteria Whether to use internal or external recruitment has to be determined before launching the procedure

Before launching a recruitment procedure, the executive board and human resources department should familiarize themselves with the tasks of the designed vacancy and consider if hiring a new employee is necessary or whether the tasks can be incorporated to other posts Replacing an old employee with a new one is not always required as there are several ways to reorganize work (Österberg 2014, 92)

1.3.1 Job analysis

Job analysis is a continuous process of gathering information about the responsibilities and reviewing the knowledge, skills and competency required for a specific post As a result of the process job descriptions and person specifications are created or updated (Pilbeam & Corbridge

2006, 146-145.) A job description specifies what has to be done in a particular post whereas person specification defines what kind of person is needed to fill the role

 Commercial job board internet sites and social media

 Newspapers and magazines

 Professional journals, trade press and trade unions

 Recruitment fairs

 University career centers

 Employee referral scheme, word-of-mouth

 Recruitment agencies and job centers

 Executive recruitment

 Vacancy boards