Human Related Issues to Create Core Business

In order to ensure the sustainability of a business, people are crucial. The human resource management department was created to handle and manage human-related issues in order to create core business values. SABECO's HRM functions will be clearly analyzed in the following research paper   

ASSIGNMENT 1 FRONT SHEET
Qualification BTEC Level 4 HND Diploma in Business
Unit number and title Unit 3 Human resource management
Submission date 7 April 2021 Date Received 1st submission
Re-submission Date Date Received 2nd submission
Student Name Nguyen Tuan Anh Student ID GBD20
Class GBD0902 Assessor name Vo Thi
Student declaration
I certify that the assignment submission is entirely my own work and I fully understand the consequences of p
making a false declaration is a form of malpractice.
Student’s signature
Grading
P1 P2 P3 P4 M1 M2 M3

 Summative Feedback:  Resubmission Feedback:
Grade: Assessor Signature: Date:
Internal Verifier’s Comments:
Signature & Date:

1

2
TABLE OF CONTENT
A. INTRODUCTION .......................................................................................................................... 3
B. ANALYSIS THE REPORT ............................................................................................................ 3
I. COMPANY’S PROFILE ................................................................................................................... 3
1. About SABECO .......................................................................................................................... 3
2. Vision – Mission – Core value – Objective ................................................................................ 3
II. OVERWIEW ABOUT HUMAN RESOURCE MANAGEMENT (HRM) IN SABECO ........................... 5
1. Function and purpose of HRM .................................................................................................. 5
2. Roles and responsibilities of HRM ............................................................................................ 5
a. Workforce planning ............................................................................................................. 5
b. Recruitment and selection ................................................................................................... 5
c. Development and training ................................................................................................... 7
d. Performance management .................................................................................................. 7
e. Reward system ..................................................................................................................... 8
3. The benefit of different HRM practices for both employers and employees .......................... 8
4. The effectiveness of different HRM practices in term of organization profit and ................... 9
productivity ............................................................................................................................... 9
III. Assess HRM function in the SABECO organization .................................................................. 10
1. Providing talents and skilled people to the organization ......................................................... 10
2. The strengths and weaknesses of different approaches to recruitment and selection .......... 10
3. Different methods used in HRM practices ............................................................................... 10
C. CONCLUSION .............................................................................................................................. 11
REFERENCE ....................................................................................................................................... 11
TABLE OF PICTURE
Picture 1: Core value of SABECO ......................................................................................................... 4
Picture 2: The net sales and profit of SABECO in 2019 ....................................................................... 9

3
A.INTRODUCTION
People play a crucial role in the sustainable development of a business. That is why human resource
management is born to manage and train human-related issues to create core business values. The
following research paper will clearly analyze how HRM works in the SABECO organization
B. ANALYSIS THE REPORT
I. COMPANY’S PROFILE
1. About SABECO
No. Category Company details
1. Company name Trade name : SAIGON BEER – ALCOHOL – BEVERAGE
CORPORATIONJoint Corp
Native name: Tổng Công ty Cổ phần Bia – Rượu – Nước giải
khát Sài Gòn
Abbreviation: SABECO
2. Established year April, 1875
3. Legal
representatives
Mr. Koh Poh Tiong – Chairman of the Board of Directors
Mr. Neo Gim Siong Bennett – General Director
4. Corporation’s main
operation officer
5th Floor, Vincom Center Building, 72 Le Thanh Ton, Ben Nghe
Ward, District 1, Ho Chi Minh City, Vietnam
5. Enterprise
Registration
Certificate
0300583659 issued by Ho Chi Minh City Department of Planning
and Investment on April 17, 2008. The 9th amendment was
made on August 7, 2018
6. Business lines Producing and trading Beer-Wine and Beverage
7. Contact number ([phone] – 3829 4083 – 3829 6342
8. Website https://www.sabeco.com.vn/trang-chu.
2. Vision – Mission – Core value – Objective
2.1. Vision
The company’s continued success is due to the whole BoM's efforts – both its Vietnamese and
foreign members – and their shared focus on SABECO’s seven strategic pillars: sales, brand,
production, supply chain, cost, human resources, and board. Despite their differences in
background, knowledge, and expertise, each BOM member shares the same vision for SABECO –
to become a continually evolving company. SABECO has been finding strategies to become the
leading beverage group in Vietnam, having a firm foothold in regional and international markets
in 2025 (Annual report 2019, p.12)
2.2. Mission (Annual report 2019, p.12)
i. Develop Vietnam’s beverage industry to maintain its integration into the global economy.
ii. Honor and promote Vietnam’s culinary culture.
iii. Provide safe, high quality, and healthy beverages while satisfying the needs and wants of the
consumers.
iv. Comply with the rules of international food safety standards.
v. Deliver value and bring benefits to their own shareholders, employees, customers,
communities, friends and family, and even competitors.
vi. Actively participate in community activities.

4
vii.Continue to develop a strong economic position.
2.3. Core value
Picture 1: Core Values of SABECO (Annual report 2019, p.13)
➢ Heritage brand: The superiority of a traditional brand. Having been formed for more than 100
years, affirming a long-standing brand. Customers are always taken care of and have many
choices about the services that SABECO has proposed. Because of its long-standing reputation,
SABECO has become the "top of mind" in the heart of customers - always the top choice product.
➢ Continuous improvement: Continuous learning, innovation, and improvement are the mottoes
that SABECO has set. With the desire not to stand in one place, SABECO always dreams of rising,
learning, and creativity to meet the ever-changing needs of customers.
➢ Coherence: SABECO has been striving every day to create a friendly working environment. A place
where everyone can share and exchange to learn, create and contribute knowledge to lead to
SABECO's success.
➢ Cooperation for development: SABECO build "equally beneficial" partnerships as the basis for
sustainable development. SABECO develops appropriate policies for a long cooperation to
partner.
➢ Social responsibility: Social responsibility development is a tradition of SABECO. In addition to
bringing the best products to the market, SABECO also has the mission of taking responsibility for
social work and environmental protection through practical actions.
2.4. Objectives
SABECO aims to become a partner of the government and other stakeholders in promoting
responsible alcohol consumption while enhancing consumer drinking experience; contributes to
preserving and protecting the environment; helps power Vietnam’s overall development through
its work in the beverage industry, and increases appreciation for Vietnamese cuisine and culture.

5
With its goal of becoming the pride of Vietnam, the company seeks to continue leveraging both
local and international experts to preserve the values of SABECO and its brands while constantly
adapting to the evolving market and business environment. (Annual report 2019, p.98)
II. OVERVIEW ABOUT HUMAN RESOURCE MANAGEMENT (HRM) IN SABECO
1. Function and Purpose of HRM
a. The function of HRM
Human resource management has a crucial function in an enterprise. The first is the attraction,
selection, and arrangement of personnel to ensure a sufficient number of employees with
appropriate qualifications, skills, and qualities. Second, training and development help to
improve employee skills, skills, and new perceptions. Third, maintain and use human resources
to effectively use human resources to maximize the employee's working ability. Personnel
information and services is a function to provide relevant information to employees so that they
feel satisfied with the working environment.
b. The purpose of HRM
Recruiting people with the talents, skills, and loyal that the organization needs; creates positive
working relationships between management and employees and an atmosphere of mutual trust.
Use human resources effectively, constantly improve labor productivity, and improve the
organization's overall efficiency. Take the application of an ethical approach to people
management.
2. Roles and responsibilities of HRM
a. Workforce planning
Workforce planning is the process of converting an enterprise's goals into human resource data
to meet the fulfillment of those goals. Sufficient quantity and types of workers for the right job
at the right time and the flexibility to cope with changes in the market are the main goals.
With the targets set to 2025, SABECO has managed the group's system very well, especially
human resource management. SABECO is always looking for talented, dedicated, and
hardworking employees who align with its culture. As a large corporation with more than 8,000
employees, SABECO puts its staff quality training plan first in parallel with recruiting sufficient
employees.
b. Recruitment and Selection
i. The definition
Recruitment is a company that devises policies to find potential employees and encourage them
to apply for work within the organization. This is a stepping stone for the selection of suitable
personnel.
Selection is the process of identifying individuals with the necessary qualifications and
competencies from a group of people recruited to perform tasks within an organization. This is
the process of choosing the right people for the right job. (Devaro and Morita, 2013)
Advantages Disadvantages
Recruitment Internal + The cost is cheaper and does
not take much time.
+ The organization has full
+ Create a workforce shortage
when the organization is on the
rise. Staff will not be ready

6
information of candidates and
thence to evaluate effectively
+ Employees quickly adapt to
the job and working
environment
+ Stimulate current employees
to work actively and creatively
to achieve high performance
and create strong bonds
between employees and the
corporation
when promoted because
experience is limited
+ The ripple effect will
continue, and vacant positions
are created
+ Limiting diversity in the
workforce, creating
sluggishness and delay for
employees in the old-fashioned
way of working
+ Bias can happen when a good
candidate is not promoted to a
new position
External + Employees are equipped with
advanced and systematic
knowledge; they often have a
new perspective on the
organization and are highly
likely to change the
organization's old way of
thinking
+ Avoid sectarian division and
employee conflicts in the
company, especially eliminate
the ripple effect
+ Recruiting experienced staff
helps businesses avoid setting
up a costly training program
+ Recruitment costs are high
and spend a lot of time training
new employees
+ Create frustration for current
employees because promotion
opportunities are reduced
+ Job hopping rate is high
among qualified employees
when the company's
remuneration is poor
Selection Testing + Reduce the risk from
subjective judgments, increase
the objectivity of the selection
process.
+ Save time and effort for both
candidates and employers
+ Improve efficiency in the
selection, ensure a better
group of quality candidates for
the next round of interviews
+ No single test is perfect or
comprehensive to evaluate a
candidate accurately.
+ There is a risk of candidates
answering
Interview + Ensure interviewers have
similar information in
candidate profiles.
+ Employers can easily observe
a candidate's attitude and
agility in answering questions.
+ Make candidates have
cautious preparation and
skilled in problem-solving
+ The recruiter may be
impressed by the candidate's
speaking skills, while some
competent people are not good
at speaking.
+ There may be negativity
between the candidates and
the interviewers

7
ii. The recruitment and selection plan of SABECO
Recruitment is organized according to the objectives and requirements of the Corporation's
business development strategy and annual plan. SABECO's recruitment principle is a public
announcement to ensure fairness, equal opportunity for all candidates and strictly comply with
the Corporation's recruitment regulations and procedures.
In terms of the recruitment method, candidates will be recruited and interviewed directly with
the Human Resources Department and the unit leader. SABECO has recruited and appointed
local and global experts to key roles. Local professionals contribute to their in-depth
understanding of local culture, corporate heritage, and strong local networks. On the other
hand, foreign experts converge on multi-market experience, global professional standards, and
international working styles. Recruitment information is shown through the Corporation's
Website and on the mass media such as "timviec365". The website will provide full information
about vacancies, social benefits to help potential external candidates have more knowledge and
peace of mind to apply to SABECO. (Annual report 2019, p.112).
c. Development and training
Training is a program that helps employees learn the specific knowledge or skills needed to
improve their current job performance.
Learning and development focus on diversifying the skills of the employee to apply in different
situations. Learning and development toward the future.
SABECO organizes annual training courses to improve the service skills of employees. In 2019, the
corporation implemented a marketing specialist training program to improve marketers' sales
skills. They were provided with essential product-related knowledge, sales techniques, problem-
solving skills, and service attitude through the latest marketing specialist training and manuals.
(Annual report 2019, p.66)
Several technical staff attended the Brew Masters course in Germany, among 51 Brew Masters
were trained in the period 2012-2019. SABECO also invites many prestigious organizations and
experts to provide in-depth training on managers' factory techniques and operations to improve
skills. Besides, technicians also participate in advanced training courses on yeast, physicochemical
and microbiological analysis techniques, beer sensory, maintenance and maintenance of
equipment, and management systems—international standards. (Annual report 2019, p.109)
d. Performance management
Performance management is the process of continually identifying, measuring, and developing
individuals and groups' performance. Minimize risks in employee's job performance. This is also
how the organization recognizes and communicates, promoting positive behaviors to achieve its
goals.(Armstrong, 2006)
SABECO introduces new performance-based salary structure. SABECO implements a regular and
periodic work performance assessment management system for employees. If the company
members create more value than the job they do, the manager will consider raising wages.
Research shows that managers ensure a clear performance measure makes employees aware that
the effort they put in is worth it. Therefore, not a single employee wants to be undervalued,

8
which is the motivation for them to grow and meet the employee retention goal. (Sabeco
restructuring for the future, 2021)
e. Reward system
Bonus regime in the enterprise is the process of taking care of employees' material and spiritual
life to complete their assigned tasks, contributing to the completion of the enterprise's goals.
SABECO attaches importance to creating a management culture based on competence. A new
salary structure based on job position and performance has been applied to motivate employees
to work well. Employees are supported in career development such as promotion or voting in the
company. Recognize and evaluate the employee's contributions and achievements to have an
appropriate rewarding regime. In addition to the benefits for employees such as insurance,
SABECO also organizes many activities such as tourism and gift-giving to improve employees'
working spirit in the company. Besides, the company also cares about the employees' relatives,
such as giving children gifts on holidays and rewarding them with good academic achievements.
The program "Going home for New Year" is an annual warm program for employees; the program
has awarded 1,000 air tickets and 1,000 tickets, and many gifts to employees with excellent
achievements. SABECO wishes to inspire employees with enthusiasm, passion, and enthusiasm at
work. (Annual report 2019, p.112-115)
3. The benefits of different HRM practices for both employers and employees
i. Workforce planning
Workforce planning helps an organization clearly define the gap between the present and the
future direction of its workforce needs. Retaining excellent staff, addressing the
organization's human resources needs, ensuring quality staff recruitment, ease in the staff
training process, and easily coping with change are benefits of workforce planning for
employers.
Besides, when there is a workforce plan, employees will have a specific direction, they will be
trained methodically, thereby creating higher working efficiency.
ii. Recruitment and selection
The company's growth comes with its need for people. Recruitment contributes to ensuring
the number of personnel for an enterprise, seeking new talent. Selection will help businesses
choose the right qualified people for the vacancy, increase work efficiency and reduce risks.
Company recruitment is an opportunity for potential candidates; employees will have the
opportunity to advance, and recruiting will make employees feel fair.
iii. Training and development
Training and development improve labor productivity, achieve high work efficiency, reduce
supervision due to self-consciousness. Training programs help maintain and improve the
quality of the labor force, creating favorable conditions for applying advanced technologies
and techniques in management. Create competitive advantages for businesses.
Besides, it helps employees have a new outlook, new thinking to promote creativity in work.
Create professionalism and high skills for your employees. Besides, this activity also increases
the relationship between employees and businesses when they feel interested in training and
learning.

9
iv. Performance management
Performance management is the assessment process to identify the shortcomings of the
business and the employees to provide solutions in the future. This process has a positive
effect on workforce planning, evaluated to come up with a perfect plan.
One study found that 69% of employees work more efficiently when their efforts are
recognized, which is the job of performance management. Recognizing and evaluating the
employee's effort process both makes the employer determine the work efficiency and
creates a development environment for employees
v. Reward system
The benefit that the reward system brings is the retention of employees in the organization.
Employees' satisfaction and morale uplift are given changing salary scales, incentives, and
rewards. Besides, it also attracts talented outside candidates to apply to the organization
without spending hiring costs they find tempting policies. When they realize that their efforts
are paying off, they will strive to achieve both themselves and the organization. Furthermore,
free training courses help employees feel important in the company, boosting morale and
driving productivity.
4. The effectiveness of different HRM practices in term of organization profit and productivity.
HRM activities play a crucial part in the development of the business. Thanks to the
management of the leaders' productivity and the working spirit of all employees, SABECO has
outperformed the previous years and recorded a record after-tax profit of 5,370 billion VND in
2019, an increase of 22% compared to 2018. Planning, recruitment, training, management, and
rewarding have made SABECO's work productivity skyrocket even though 2019 was a year full of
turmoil as the influence of COVID. (Annual report 2019, p.18)
Picture 2: The net sales and profit of SABECO in 2019 (Annual report 2019, p.18)

10
III. Assess HRM functions in the SABECO organization.
1. Providing talents and skilled people to the organization.
In business, people play a key role in the success and sustainable development of a business. With
a huge human resources system, SABECO is gradually developing human resources to consolidate
a solid foundation for the comprehensive transformation of the Corporation. Building the human
resources "WARM" (Willing – Able – Ready – Motivated) is a necessary and correct step in
asserting Vietnam's leading position and reaching out to the world.
To have a sustainable foundation, SABECO has established a highly qualified and specialized board
of directors. This makes it easier and more accurate to recruit qualified people into the company.
A range of regimes and benefits are offered to employees working at SABECO, which will allow
knowledgeable and talented candidates to join the company as they see their future growth.
Moreover, employees are working and trained to improve their skills through training programs
organized by SABECO every year; many of them are also sent to overseas training. It can be seen
that this is the strategy that SABECO implements to have key staff who are not only qualified with
expertise but also professional. With the staff's management ability and talent, and skilled
employees, SABECO always achieves the set targets and creates new challenging ones. Therefore,
SABECO always maintains its leading position in the Vietnam industry and aims to have a position
in the region and the world by 2025.
2. The strengths and weaknesses of different approaches to recruitment and selection
Based on the requirement, the beverage group SABECO uses both techniques to fill vacancies. For
example, when HR employees recognize an employee's efforts (goal fulfillment and long-term
commitment to the organization), they will promote the employee. Such a step motivates the
employees and saves the company costs in implementing the recruitment process. Since promoted
employees are already part of the company and are clearly aware of its policies and rules, a
detailed introduction process is not required. Also, when human resources management realizes
the need to instill new talent in the company, they adopt an outsourced recruiting approach,
providing them with plenty of options even if it takes up a lot of time.
One of SABECO's values is the sourcing of raw materials and labor. Therefore, the corporation
conducts an external recruitment process—especially the position of sales staff. The outside
recruitment process provides employees with new ideas that lead to innovation. For example, the
newly graduated employees will be enthusiastic young people who work hard, suitable for the
beverage business environment. Searching and taking care of customers, going to the market,
actually introducing products need a young and dynamic staff; it shortens the achievement of
goals. However, the process consumes time and money for the organization's recruitment
advertising and interviewing processes. In the case of internal recruitment, if the HR department
finds that employees are frustrated and frustrated with their work, they will use the division's job
transfer option to retain and grow in their careers. Although internal hiring is fast and cost-
effective, it creates vacancies at SABECO and needs to be filled, making the process lengthy and
ultimately dependent on outside recruitment.
3. Different methods used in HRM practices

11
The first approach used in various HRM practices is to use a person-centered soft model and help
employees achieve high commitment. The model emphasizes the needs and interests of employees
for which training and development sessions are planned. Another best practice approach to HRM
is a best practice approach. At SABECO, the leaders' meetings are held periodically; however, they
should have weekly discussions to investigate their needs, resolve their problems and make
suggestions. This creates a friendly relationship with employees and reduces absenteeism.
Reward management is the most effective tool for employee motivation and retention. It not only
includes financial incentives and bonuses but also includes recognition and appreciation and salary
structure. With a new salary structure and performance-based reward system, productivity and
profits are high.
Employee training and development programs appear to be a blocked investment for SABECO.
However, it is a matter of time; after employees are compensated for their knowledge, they will
make profits to compensate for the training costs.
C. CONCLUSION
In this section on human resource management, it is necessary to strictly follow human resource
practices to operate and effectively carry out business activities. SABECO's human resources
department has built a perfect direction from workforce planning, recruitment, selection, training,
evaluation, and reward. SABECO has done a great job since its inception 146 years ago and
maintained its growth until it is at the forefront of the beer industry in Vietnam.
REFERENCE:
[2020]. Performance Based Compensation Plan. Available at: https://gbewbenefits.com/performance-based-
compensation-
plan/#:~:text=Typically%20in%20a%20performance%2Dbased,rate%20and%20consider%20compensation%20
increases. [Accessed 5 April 2021].
AIHR Analytics. [2019]. A Guide to Strategic Workforce Planning | AIHR Analytics. Available at:
https://www.analyticsinhr.com/blog/strategic-workforce-planning/ [Accessed 5 April 2021].
Armstrong, M., [2006]. A Handbook of Human Resource Management. 10th ed. London: Kogan Page,
p.88-90. [Accessed 5 April 2021]
Available at: https://www.sabeco.com.vn/en-US/media/company-news/sabeco-transformation-a-
strategy-combining-global-and-local-expertise [Accessed 5 April 2021].

12
Bianca, A., [2021]. The Role of Human Resource Management in Organizations. Small Business -
Chron.com. Available at: https://smallbusiness.chron.com/role-human-resource-management-
organizations-21077.html [Accessed 5 April 2021].
DeVaro, J. and Morita, H., [2013]. Internal promotion and external recruitment: a theoretical and
empirical analysis. Journal of Labor Economics, 31(2), p.227-269. [Accessed 5 April 2021]
En.thesaigontimes.vn. [2021]. SABECO invests in human capital, looks to remain leading homegrown
brewer. Available at: https://en.thesaigontimes.vn/tinbaichitiet/81208/ [Accessed 5 April 2021].
Euromonitor, [2021]. Beer in Vietnam. Available at: https://www.euromonitor.com/beer-in-
vietnam/report [Accessed 5 April 2021].
Harrison, R. [2002]. Learning and Development. 1st ed. London: Kogan Page, p.70-71. [Accessed 5
April 2021].
SABECO. [2019]. Sabeco transformation: a strategy combining global and local expertise.
Sabeco.com.vn. [2021]. Available at:
https://www.sabeco.com.vn/Data/Sites/1/media/co%20dong/bao%20cao%20thuong%20nien/04-
05-2020/Sabeco_BCTN_2019_ENG.pdf [Accessed 5 April 2021].
stockbiz.vn. [2021]. SAB: 'Sabeco giờ đã khác'. Available at:
https://www.stockbiz.vn/News/2020/10/17/876528/sab-sabeco-gio-da-khac.aspx [Accessed 5 April
2021].
Thị trường - Báo Người lao động online. [2019]. SABECO trả lương theo năng lực lao động. Available
at: https://thitruong.nld.com.vn/doanh-nghiep-doanh-nhan/sabeco-tra-luong-theo-nang-luc-lao-
dong-2019041018060764.htm [Accessed 5 April 2021].
Timviec365.vn. [2021]. [Công ty Bia Sài Gòn] – Kinh nghiệm ứng tuyển tại Sabeco. Available at:
https://timviec365.vn/company-vip/tong-cong-ty-cp-bia-ruou-nuoc-giai-khat-sai-gon.html [Accessed
5 April 2021].
Van Dooren, W., Bouckaert, G. and Halligan, J. [2015]. Management in the Public Sector. 2nd ed. New
York: Routledge, p.62. [Accessed 5 April 2021].
Vietnam Investment Review - VIR. [2021]. SABECO invests in human capital to remain leading
homegrown brewer. Available at: https://www.vir.com.vn/sabeco-invests-in-human-capital-to-
remain-leading-homegrown-brewer-83429.html [Accessed 5 April 2021].
Vneconomictimes.com. [2021]. Sabeco restructuring for the future. Available at:
https://vneconomictimes.com/article/business/sabeco-restructuring-for-the-
future?fbclid=IwAR1P5WZIECIlJFPpfRlIXcea5QWLGoQK-45Z0yXYY1uk9wGISM22TZx2jcc [Accessed 5
April 2021].

13