Detailed HRM Report: Analyzing HR Practices at Vinamilk JSC

This report examines the Human Resource Management (HRM) practices of Vinamilk Joint Stock Company, a leading dairy producer in Vietnam. The report begins with an introduction to Vinamilk, outlining its mission, purpose, core business objectives, and core values. It then explores the purpose of the HR function, detailing key roles, responsibilities, and its significance in acquiring talent to meet business objectives. The report evaluates Vinamilk's approach to workforce planning, recruitment and selection, development and training, performance management, and reward systems, including different methods used in HR practices. The report includes tables and figures to illustrate key concepts, such as strategic statements, HR functions, recruitment approaches, and performance management methods. The analysis highlights the importance of talent management in achieving Vinamilk's business goals, supported by statistics on market share and financial performance. Overall, the report provides a comprehensive overview of Vinamilk's HRM strategies and practices.

TABLE OF CONTENTS:
INTRODUCTION..........................................................................................................................1
1. An introduction to the chosen oganisation including mission statement, purpose and core
business objectives........................................................................................................................2
2. An explanation of the purpose of the HR function and the key roles and responsibilities of
the HR function, highlighting the significance that HR plays in acquiring talent to meet
business objective.........................................................................................................................4
3. An assessment of the approach to workforce planning, recruitment and selection,
development and training, performance management and reward system...................................6
4. Inclusion of case study examples to examine the different methods used in HR practices.. .10
CONCLUSION:............................................................................................................................13
REFERENCE LIST

INTRODUCTION
Nowadays, there are many people who want to be rich and they choose to begin by creating a
company. According to the General Statistic Office (2019), Vietnam has 131.1 thousand
established businesses in 2018, while there are 12.5 thousand businesses which are collapsed
each year. Therefore, before starting a business, it is advisable to understand human resource
management to maintain a sustainable organization. Firstly, we need to determine what human
resources is. Will Kenton (2020) defined that'' Human resources (HR) is the division of a
business that takes responsibility for finding, screening, recruiting, and training job applicants, as
well as administering employee-benefit programs. HR plays a key role in helping companies deal
with a fast-changing business environment and a greater demand for quality employees in the
21st century.' In terms of Human Resource Management, ARMSTRONG (2020) appointed that
it has strongly taken over it’s “personnel management’’. Personnel management is understood
that relating to all activities of humans are employed, trained, and managed in organizations.
HRM is extremely important if you consider a company as a royal ship, so the HRM department
is the captain.
As an assistant human resource officer for ''Vinamilk Joint Stock Company''. I take on the task of
producing an employee induction manual for new staff being recruited into the HR department.
The report aims to provide more information about the purpose of HR and the main HR functions
within the organization with an overview of different HR practices.
This article will describe an introduction to the Vinamilk JSC; give clear information about the
HR function and the reason why HR needs the talent to achieve business objectives; evaluate
some type of approaches and write few examples to clarify the different methods used in HR
practices.

1. An introduction to the chosen oganisation including mission statement, purpose and core
business objectives.
(*) The company's strategy is communicated by A Strategy Statement. It shows clearly the
business objectives of the enterprise and steps to achieve its goals. Following table demonstrates
the vision, mission, goals, and objectives of Vinamilk JSC.
To become a world grade
brand in food and beverage
industry, where people put
all their trust in nutrient and
health products.
Vision
To deliver the
valuable nutrition to
community with our
respect, love and
responsibility
Mission
- Maintaining
the No.1
position in
Vietnam
market.
- Aiming to
reach the Top
30 of World’s
Largest Dairy
Companies in
terms of
revenue .
Goals
- Marketing
productcs
- Research
the business
environment
Objective
Figure 1:
Strategic Statement.

(*) Purposes Of Vinamilk JSC.
(*) Core Value.
Vinamilk's core values are evaluated based on 5 aspects, including:
 Integrity : transparency in actions and transactions.
 Respect : cooperate with respect, respect for everyone (clients, colleagues, managers).
 Fairness : fair behavior at work.
 Ethics : to respect the established ethical standards.
 Compliant : to comply with legal regulations.
2. An explanation of the purpose of the HR function and the key roles and responsibilities of the
HR function, highlighting the significance that HR plays in acquiring talent to meet business
objective.
(*) According to research from Bersin by Deloitte, driven by increased competition for talent and
a shortage of critical skills in the United Kingdom, so many American companies had paid 4,000
dollars for each talented person to create a competitive advantage. Karen O’Leonard (2015)
appointed that: “At a cost of nearly $4,000 on average to fill an open position, US companies are
spending nearly three times the amount spent on training per employee."
That is an extremely expensive price, especially for Small businesses have tight budgets. If you
hire the wrong person and he cannot afford to do the job requirement, you lost all the money.
The purpose of HRM prevent these problems in the first place, maximize a company's
performance by investing in the right people for the right work.
The given picture demonstrates clearly vision, mission, goals and objective of Vinamilk
Joint Stock Company. From there, it shows that Vinamilk's purposes do pioneer the
leading dairy sector in Vietnam, their products must reach top quality and become a
famous brand in all the world.

(*) Based on my ideas and opinions of Alexis Croswell (2019), The table below will list some of
the job’s activities related to HR and the administrator's management.
The key roles and responsibilities of HR functions. HR Functions
Human Resources Generalist: assume the responsibility for
managing daily operations.
Recruiter: pre-screen and present qualified candidates to the
hiring manager.
Human Resources Assistant: support the overall employee
experience and ensures legal compliance.
Human Resources Director: responsible for operating a
company’s human resources department
Human Resource Business Partner: align business
objectives with management in designated business units.
HR Specialist: take responsibility for negotiating with
unions, resolving disputes within the organization, and
managing employee health, train, and safety programming.
Resources Manager: take on the task of the management and
allocation of various types of resources, including a budget,
technology, time, and people.
 Employee selection: provide staff to
departments
 Training Employees: improve the
quality of employees to ensure job
requirements
 Employee performance assessment:
the purpose is to deliver the right job
 Strategy development : develop a plan
to adjust workers
 Manage Compensation and Benefits
Programs: support employee’s life.
 Handle Employsee Issues: sole
problems to ensure organizational
structure.
=> Manage all the function tasks.
Figure 2:
HR functions and key roles with responsibilities of HR Functions

2, HR plays in acquiring talent to meet business objectives.
The company always would like to boost revenue and productivity. Bosses expect that staffs are
hard-working and catch up with changes. Finally, they are asking more from HR to make an
effort to find talent. The talent was defined by Michaels et al (2001, xii) as the total of a person's
capabilities including: knowledge, skill, experience, ability to learn, and grow. Talent is what an
organization does need to meet the business objectives.
Vinamilk will be an example to demonstrate this. Ms. Bui Thi Huong is a talent in Vinamilk
company and the chief human resource officer. She will be responsible for managing human
resources and making reward policies suitable for employees to motivate staff's orientation. She
has talent management skills. This thing has retained more than 10,000 employees at Vinamilk,
providing about 750 tons of raw fresh milk to produce over 3,000,000 (3 million) glasses of
milk/day. According to the Vietnam Report, in 2018, the liquid milk segment of Vietnam Dairy
Products Joint Stock Company (Vinamilk - code: VNM) continued to lead the industry with
about 55% market share. Besides, Vinamilk holds more than 80% market share of yogurt, more
than 80% of condensed milk market share, and more than 30% market share in powdered milk.
Net sales achieved 15.5 trillion in Quarter 2/2020. With these achievements, the talent has helped
the company achieve goals which are to dominate the dairy market in Vietnam.
Unit: Million Dong
(Source:https://finance.vietstock.vn/VDN-ctcp-vinatex-danang.htm)

3. An assessment of the approach to workforce planning, recruitment and selection, development
and training, performance management and reward system.
(*) Workforce planning.
Alyson Taylor (2020) argued that: ''Workforce planning is the process of analyzing and
strategizing for a company’s current and future workforce needs based on their goals and vision
for the future''.
Workforce planning plays an essential role to drive the business objectives of the company.
Because workers are the foundation in which every successful company is built. For example, if
you are a business owner of a shoe factory but you don't have workers, you probably won't have
shoes for sales. This is a huge problem when large companies with many positions to fill.
Workforce planning ensures that companies are positively hiring and maintaining a staff of
skilled employees.
(*) Recruitment and selection.
Recruitment and selection are two different functions of Human Resource Management. Firstly,
Surbhi (2015) announced that Recruitment is a process of finding potential applicants and giving
them more energy to apply for the actual or anticipated vacancy. On the flip side, the selection is
a process of hiring people among the shortlisted candidates and give them a job in the company.
 In term of Recruitment Approaches, including: job analysis, job description and job
specification.
+) Job analysis: identify knowledge, skills, abilities, attitudes and behaviours associated with
successful performance in the role.
+) Job description: Detail for the job's requirements.

+) Job specification: the type of candidate is being sought to match specific to the job.
The following table will explain the advantages and disadvantages of different approaches to
recruitment.
Aspects Advantages Disadvantages
Job Analysis - Identify the needed skills for the job.
- Formulate effective hiring strategies.
- Time consuming for
researching labor market.
Job Description - The job demands are clearly defined and
specific for candidates.
- Discourages innovation
Job specification - Candidate will know what skills are
required for the job.
- candidates do not have
enough ability to do the job
requirements
 In term of Selection Approaches, including: reliability and validity.
Reliability refers the quality of being able to be trusted and it has both sides. The Advadtages
reduces time consumption in preparing and the cost will be fallen. The disadvantages are that
efficiency will be reduced due to time and it must to be changed.
Validity refers the state of being acceptable and it has benefits and drawbacks, The benefits are
that changes over time can be understood and the effectiveness of the selection techniques are
determined. The drawbacks are delayed to determine the effectiveness of current techniques or
lost time to evaluate the techniques.
There are 4 popular methods of recruitment. The table below provides 4 different methods with
their characteristics
Figure 3:
Benefits and Drawbacks of various approaches to recruitment.

Recruitment methods Advantages Disadvantages
Internal recruitment. - Low costs to recruitment.
- Motivating internal staff
- Limited talent.
- Time-consuming for training
employees.
External recruitment. - Diversity applicants.
- Find out more talent
people.
- Expensive costs (advertising).
- Internal employees lose a lot of
recruitment rates.
E-recruitment. - Convenient and time-
saving (Checking
Curriculum vitae online).
- Fake curriculum vitae make
difficult to appraisal.
- Too many unreliable applicants.
Overseas recruitment. - Access international talent. - Exhibited costs.
Face to face recruitment. - Reliability and validity. - Time-consuming.
Each method has different uses depending on the purpose of the organization. If the organization
is on a small scale, they will choose low-cost methods such as E-recruitment or face to face. In
contrast to large organizations like Vinamilk, they will be willing to spend much money to recruit
talents through the Overseas recruitment method.
(*) Performance Management.
Carla Tardi (2019) wrote a post that Performance management is a corporate management tool
helping managers monitor and evaluate employees' work effectively and It’s purpose create
suitable conditions for workers to perform their full capacity to meet job requirements. In
performance management, many managers focus on “KPI” as a performance management tool,
which enables them to do performance appraisal of staff. KPI stands for Key Performance
Indicator, it is a tool showing how well you are performing in your organization.
Figure 4:
Different methods with their characteristics.

The Board of Directors with the direct managers will determine the appropriate KPI for each
department, each person. These things create small stepping to help achieve the company's set up
goals. Vinamilk will be a typical example, the manager assigns the service workers on the farm
with KPI to milk a cow. Then, his KPI is 10 liter of cow's milk and must be completed in a day.
That helps the organization manage all subordinates.
(*) Reward System.
Wendelien Van Eerde (2015) defined that A reward system is the policies and mechanisms by
which organizations administer employee rewards. The reward package is the bonus offered to
employees in return for their labor. The reward package has 2 financial and non-financial
rewards.
Bonuses for employees include: bonuses, salary increases, job vacancies and so on. These gifts
can increase employee’s motivation and retention. Reward depends on the development of the
whole business, if the company grow up, the salary of the employees will be high. The salary and
bonus system at Vinamilk is extremely good. According to information from Vinamilk, the salary
and bonus of members of the Board of Directors and Board of Management in 2012 was 56
billion VND. 8 members of the executive board have a salary and bonus fund of nearly 52 billion
dong. On average, each member receive 6.5 billion VND / year.
4. Inclusion of case study examples to examine the different methods used in HR practices.
(*) Explain and evaluate the benefits of different HRM approaches.
There are many fields in HRM practices. HRM practices consists of: Providing security to
employees, Selective hiring, Self-managed and effective teams and so on. This report will give
information about 2 HRM practice namely: Human relations approach and recruitment approach
which are discussed considering the case of Vinamilk JSC.
Human Relations Approach.

In the early 1920s, the framework for the human relations movement was being built by Elton
Mayo. He is an organizational psychologist who was the father of the human relations movement.
He was the first to realize that output and worker satisfaction were linked to social factors, as the
way employees were treated on the job. Hawthorne (1927) experiment further proved the
relationship between the understanding of workers' psychology and output in this experiment
psychologists developed a theory that additional lighting would have a positive effect on worker
factory output. They increase the lighting and they were correct as production soared.
Surprisingly production increased even more, and this led to the discovery that the factory
workers were overperforming because they know they were being watched as the art of study.
Later, the company realized that a monetary incentive was not the only factor in increasing
production. The solution is human relation approach focusing on the social well being of the
employees in an organization.
Three key elements of the human relation approach:
- Key work groups: are an important aspect of the human relations movement the teams are
workers placed together and the overall socialization of the in dividual provides motivation and
productivity.
- Excellent upward communication: is a necessity of the movement as it allows employees to
offer feedback and communication to upper management. This allows the employees to fee that
they can be vocal and valuable to the company's decision making process
- Superior leadership: through excellent communication and decision-making. Employees will
feel motivated by having leaders who can offer mentorship and direction. The company should
focus on the behavior side of employee dynamics to ensure a successful workplace.
=> This approach motivates work and retains employees.
Case Study – Vinamilk JSC.
Vinamilk had an extremely smart approach strategy. Every year, Vinamilk organize recruitment
programs at famous universities in Viet Nam such as: Foreign Trade University, National

Economics University and Diplomatic Academy of Vietnam. They have found a lot of talented
young people who have the ability, enthusiasm and new vision of the world . This recruitment
has created achievements in renewing thinking. Vinamilk's way of establishing human relations
is very suitable. In the cow's milk farm, the workers were shown how to make the products by the
team leaders (their relationship is pretty good). The workers had lights, uniforms, and tools to
assist in working via technology. That made the person very comfortable and excited about the
job. They have done it with an enthusiastic attitude and created products for the company. It can
be seen that Vinamilk JSC has used well the human relations approach that they mainly focus on
employee's feelings and the company makes more products than they expected.
Science Management Approach.
The concept of the scientific approach was introduced by Fredrick Winslow Taylor. Scientific
management is concerned with knowing exactly what you want staff to do and then see in that
they do it in the best and cheapest way (focus on results).
Components of Management Science Theory:
The management science approach identifies a process within a business’s operations. It then
develops possible how the problem developed and designs solutions. Scientists develop models
from which to gather data from the Results and Analysis of the data. Finally, provides practical
solutions for solving the organization's problem.
Case Study - Daewoosa Garment Company.
Contrary to Vinamilk, Company Daewoosa applied the scientific management approach. They
just focus on the performance of the workers and do not care about the status of the workers, even
when they violate the labor law. According to the Vietnam Youth Newspaper (2005), Daewoosa's
Factory is not bright enough, has no protective tools, does not guarantee the working
environment or even lack of employee's salary, delay in wages, and labor exploitation of workers.
As a result, 200 Vietnamese workers quit their jobs and sued the company's director, Li Xu Kin.
Honolulu Court tried him on 14 counts (including impeaching labor) on 2/2013. The court puts
him in jail for 40 years.