Human Resource Management is present in every department. Every level of management has employees under them and therefore must manage Human Resources – that is, plan, organize, lead and control their human resources. Therefore, every level of management must know how to manage Human Resources.
Human Resource Management plays a central role in establishing organizations and helping organizations survive and develop in the market. The importance of Human Resource Management in organizations comes from the important role of people. People are the elements that make up the organization, operate the organization and decide the success or failure of the organization. Human Resources is one of the indispensable resources of the organization, so Human Resource Management is an important area of management in every organization. On the other hand, management of other resources will not be effective if the organization does not manage Human Resources well, because ultimately all management activities are performed by people. Researching Human Resource Management helps managers achieve goals and results through others. From there, managers learn how to deal with others, find a common language and be sensitive to the needs of employees, know how to accurately evaluate employees, know how to attract employees to be passionate about their work, avoid mistakes in selecting and using employees, know how to coordinate the implementation of the organization's goals and the goals of individuals, improve the organization's efficiency and gradually be able to make the human resource strategy an organic part of the enterprise's business strategy.
Thus, Human Resource Management studies the issues of human management in organizations at the micro level and has two basic roles:
Firstly, effectively use Human Resources to increase labor productivity and improve organizational efficiency.
Second, meet the increasing needs of employees, create conditions for employees to maximize their personal abilities, be stimulated and motivated at work and be loyal and dedicated to the business.
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Criterion 1 - Human Resource Management in Primary School Education Activities
1.2. Factors affecting Human Resources
1.2.1. External environment
The external environment affects NNL by the following factors:
Economic context: During economic downturns or instability, businesses need to maintain a skilled workforce and reduce labor costs. When the economy is prosperous or stable, businesses need to develop human resources to expand production and enhance employee training.
Population/labor force: Rapid population growth increases the labor force every year. The labor market has a great influence on human resource management because it reflects the labor supply in the market and is an important basis for establishing plans to supplement human resources, especially the local population is the first and main source of supply for businesses.
Law: Law also has a significant impact on human resource management in enterprises. In Vietnam, the Labor Law was promulgated and applied from January 1, 1995. This law aims to govern labor relations in all state-owned enterprises and other forms of ownership.
Culture, society: In a social culture with too many social classes, the social value ladder does not keep up with the development of the times, it clearly hinders and does not provide talent to serve the labor force. Different working attitudes, customs, and resting habits of each country also affect the operation of the business.
Competitors: In a market economy, human resources is also a fiercely competitive field. To survive and develop, businesses must effectively manage human resources. Businesses that want to maintain and develop their human resources in terms of quantity and quality must have strategies and policies to create a competitive advantage in the labor market.
Science and technology: changes in science and technology will facilitate production with less labor, then managers must rearrange the surplus labor force.
Customers: customers are the goal of every business. Customers are a very important factor for the survival of a business, the existence of customers for a business is also the existence of the business. Therefore, management levels must ensure that company employees must produce products and services that meet the needs and tastes of customers. For that reason, human resource management needs to direct employees to the common goal of the business, which is to focus on customers and always satisfy customers.
Government and organizations: government agencies and organizations have more or less influence on human resource management in enterprises. In Vietnam, government agencies and organizations such as the Department of Labor, War Invalids and Social Affairs, trade unions, and women's associations have a certain influence on enterprises, especially when enterprises implement policies related to or affecting the rights of workers.
1.2.2. Internal environment
The internal environment affects NNL by the following factors:
Company mission and goals: each company has its own mission and goals. These missions and goals affect specialized departments such as production, finance, business, human resource management, etc. Each of these specialized departments must base on the mission and goals of the enterprise to set its own goals. Human resource management must base on the mission and goals of the enterprise to develop policies and strategies to support those missions and goals.
Company policies and strategies: Company policies and strategies are the guiding principles for human resource management in enterprises. These policies and strategies represent the human resource strategy in each different enterprise.
Corporate culture: is a system of shared values, assumptions, beliefs, and norms that unites members of an organization. Corporate culture is expressed through the use of concrete expressions such as symbols, stories, rituals, and ceremonies.
A cultural atmosphere that encourages innovation will make members more dynamic, creative, and competitive. Managers can create their own cultural atmosphere through the following steps: setting current standards, suggesting new directions, establishing new standards, identifying cultural gaps, and finally closing the gaps.
Shareholders and unions: Although shareholders are not part of the business's management, they exert pressure and influence in the shareholders' meeting to elect the board of directors, and have the right to question the board of directors or senior leaders in the business. The union is a force of workers, helping to protect the rights and jobs of workers.
1.3. Functions of Human Resource Management
Human Resource Management activities are related to all issues related to the rights, obligations and responsibilities of employees in order to achieve high efficiency for both the organization and the employees. In practice, these activities are very diverse, rich and very different depending on the characteristics of the organizational structure, technology, human resources, finance, and development level of the organizations. Almost all organizations have to carry out basic activities such as: determining employee needs, planning recruitment, arranging employees, training, rewarding and disciplining employees, paying wages, etc. However, the main activities of Human Resource Management can be divided into the following three main functional groups (Tran Kim Dung, 2015, page 13):
1.3.1. Human Resource Attraction Functional Group
This functional group focuses on ensuring that there are enough employees with the right qualities for the business. In order to recruit the right people for the right jobs, businesses must first base on production and business plans and the current state of employee use in the business to determine which jobs need to recruit more people.
1.3.1.1. Human Resource Planning
In terms of Human Resources, planning helps businesses clearly see the direction and method of managing their Human Resources, ensuring that businesses have the right people for the right jobs, at the right time, and flexibly respond to changes in the market. However, Human Resources planning does not simply focus on forecasting and recruiting the necessary number of employees for the business. Human Resources planning is the process of researching, determining Human Resources needs, developing policies and implementing programs to ensure that businesses have enough Human Resources with the appropriate qualities and skills to perform work with high productivity, quality and efficiency.
The Human Resource Planning process needs to be carried out in close connection with the planning and implementation of business strategies and policies of the enterprise. Normally, the planning process is carried out according to the following steps:
1. Analyze the environment, determine goals and business development strategies for the enterprise
2. Analyze the current status of Human Resource management in the enterprise, propose business development strategies.
3. Forecast workload (for long-term and medium-term goals and plans) or determine workload and conduct work analysis (for short-term goals and plans)
4. Forecasting Human Resource needs (for long-term and medium-term goals and plans) or determining Human Resource needs (for short-term goals and plans).
5. Analyze the relationship between supply and demand of Human Resources, the ability to adjust and propose policies, plans and implementation programs to help businesses adapt to new needs and improve the efficiency of using Human Resources.
6. Implement the business's Human Resource management policies, plans and programs in step five.
7. Check and evaluate the implementation status.
The Human Resource Planning process is shown in Figure 1.1 (Appendix
2)
Job analysis : is a basic tool for Human Resource managers.
Competency is a systematic process of determining the conditions for implementation, tasks, responsibilities, and authority when performing work and the necessary qualities and skills that employees must have to perform the job well. Thanks to it, managers create synchronous coordination between departments in the enterprise, correctly assess job requirements to recruit the right person for the right job, correctly assess the ability to perform the job, to pay and stimulate salaries promptly and accurately (Nguyen Thanh Hoi, Phan Thang. 2004).
Conducting a job analysis provides managers with a summary of a particular job's duties and responsibilities; its relationships to other jobs; the knowledge and skills required; and other working conditions.
The content and sequence of job analysis are often different in businesses. According to Dessler (G. Dessler, 1997, page 84), the process of conducting job analysis includes the following six steps:
Step 1: Determine the purpose of job analysis, thereby determining the most appropriate form of collecting job analysis information.
Step 2: Collect basic information available on the basis of the organizational chart, documents on the purpose, requirements, functions and powers of the enterprise and its structural departments, or the technological process diagram and old job description (if any).
Step 3: Select the typical work parts and key points to conduct job analysis to reduce time and save more money in analyzing similar jobs.
Step 4: Apply different methods to collect job analysis information.
Step 5: Check and verify the accuracy of the information
Step 6: Develop job descriptions and job specifications.
1.3.1.2. Employee recruitment process
This is the process of searching and selecting people to meet labor requirements and supplement the workforce for the enterprise. The goal of the recruitment process is to attract new employees with knowledge, qualifications, skills, and motivation that match the requirements of the enterprise. Human resource recruitment includes both recruitment and selection of human resources.
The typical recruitment process includes the following steps:
1. Recruitment planning
2. Identify recruitment methods and sources
3. Determine the location and time of recruitment
4. Search and select candidates
5. Evaluate the recruitment process
6. New employee onboarding
Two sources of recruitment are used: sources from within the organization and sources of candidates from outside the organization.
- Internal sources: Recruiting employees from within the organization is very complicated. For high positions, organizations often use job transfers or promotions. For low positions, businesses often use the method of posting job openings or jobs that are looking for people, called posting job vacancies. This posting is posted in a public place so that everyone knows.
Advantages of recruiting employees from within the organization:
The organization's employees have been tested for loyalty, seriousness, honesty, and sense of responsibility.
Employees of the organization will find it easier to perform their work, especially in the beginning of their new positions.
Direct recruitment from employees working for the business will also create widespread competition among employees, stimulating employees.
work actively, dynamically, creatively, effectively and achieve higher productivity.
However, this form of direct recruitment often encounters difficulties such as:
Recruiting employees to hold a position in the enterprise by promotion can cause lethargy and stiffness because promoted employees are used to old ways of working, lack creativity, and cannot create a new competitive atmosphere in the enterprise.
In an organization, it is easy to form groups of "unsuccessful candidates". They are people who apply for a vacant position but are not recruited, which leads to a mentality of not obeying the leader, easily forming factions, losing unity, and making it difficult to work.
- Sources of candidates from outside the organization: Recruiting candidates from outside the organization requires research on the general economic situation, local labor conditions and the job market. The main sources of recruitment include friends of employees currently working in the organization, former employees, candidates applying for jobs themselves, employees of other organizations, universities, colleges, freelance skilled workers, unemployed people, etc.
Organizations may use one or a combination of the following methods of attracting external candidates:
Through advertising
Through the labor service office
Recruiting graduates from universities and colleges.
Internship students.
1.3.2. Human Resources Training and Development Functional Group
This functional group focuses on improving the capacity of employees, ensuring that employees in the enterprise have the necessary skills and qualifications to complete assigned tasks well and creating conditions for employees to develop their personal capacities to the maximum. Enterprises apply career guidance programs and
Training for new employees is to determine the actual capacity of employees to help employees get familiar with the work of the business. At the same time, businesses also often create plans to train, coach and retrain employees whenever there are changes in production and business needs or technological and technical processes.
The training and development functional group carries out activities such as career guidance, training, practical skills training for workers, improving professional skills and updating management and technical knowledge for managers and professional staff.
1.3.2.1. Integration into the working environment
Onboarding is a program that introduces new employees to the organization, the work unit, and the job they will be doing. The purpose of the onboarding program is:
- Make it easy for new employees to adapt to the organization
- Provide job-related information and performance expectations as expected by superiors.
- Reduce errors and save time
- Create a good impression of the organization emotionally.
For the onboarding program to be effective, it is necessary to train supervisors or direct managers about the importance of the program, to train them to trust the new employee, and most importantly, to know how to introduce the new member to their colleagues so that the new employee can integrate into the work group. This is very important because it makes the new employee not lonely, lost and abandoned.
1.3.2.2. Human Resource Training and Development
Training and development is an indispensable need for any type of organization. Whether a society survives or not depends on its ability to respond to change. Whether a society advances or retreats depends on whether its leaders foresee change and promptly train and develop their workforce.
Training is activities that aim to improve the skills or abilities of employees for current or future jobs. Development includes activities that prepare employees to keep pace with the organization as it changes and grows in the future.
The training and development process includes the following steps: Identify training and development needs Set specific goals Select appropriate methods Implement training and development programs Evaluate training and development programs.
Forms of training and development of human resources:
- According to training content orientation: there are two forms including job-oriented training and business-oriented training.
- According to the purpose of training content: there are the following forms:
Training and instructing employees on work to provide new knowledge and information to employees.
Training and skill training to help employees have the appropriate professional skills to perform required jobs.
Occupational safety technical training aims to instruct employees on how to practice occupational safety, preventing risks and occupational accidents from occurring.
Training to improve professional and technical skills.
Training and development of management skills.
- According to the organization method: there are training forms such as: regular, in-service, on-site tutoring.
- According to a location or a training place, there are forms such as: on-the-job and off-the-job training.
- According to the trainees: there are forms such as: new training and retraining.
Choosing the training method to bring high efficiency depends on the requirements of training scale, complexity, training content and technical equipment conditions, finance, etc. specific to each enterprise.
Principles in training: all training and development processes, whether taking place at work or outside the workplace, are teaching and learning processes, so in any form of training, instructors need to pay attention to the following basic principles:
- Motivating learners: at the beginning of the training process, learners should be provided with general knowledge about the issues to be learned and shown the benefits of the course for the implementation of the goals of the enterprise as well as the goals of individuals. These goals can improve the quality of work performance or prepare for career advancement opportunities for employees. This stimulates learners to have clear motivation in learning, understand the content of the steps in the training process and actively participate in the training process.
- Provide feedback to the trainer. Feedback during training will help the trainee reduce anxiety and know what to do to improve the training results. Providing feedback is also considered part of the training program for on-the-job training methods.
- Course organization: the way the training course is organized also has a very important impact on the quality and effectiveness of the training. To organize good courses, the following issues should be noted:
Divide the training process into many complete parts, studied in certain periods of time. The program content must be sequential, logical and the amount of information provided must be moderate compared to the learner's ability to absorb.
Try to develop and relate new issues and concepts to familiar issues and concepts during teaching.
Note issues of particular importance to students.
Ask many questions to guide and attract students' attention, use many illustrative examples, many different methods of information transmission. Students acquire knowledge by practicing and observing experiments, will remember quickly and forget slowly.
- Application: application measures to reduce the gap between theory and practical work implementation:
Try your best to make training situations similar to reality.
Create conditions for students to practice as many real-life examples as possible.
Practice and review are important methods for learning new skills.
Illustrate as much as possible practical experiences in implementing and solving problems. (both successes and failures).
Outline the training process so that learners can see the ability to apply learning outcomes to practical work solutions.
- Participation: students need to participate in the training process. This participation helps students exchange information and opinions among students and between students and instructors.
1.3.3. Human Resource Maintenance Functional Group
This functional group focuses on maintaining and effectively using Human Resources in the enterprise. It includes two smaller functions: stimulating and motivating employees and maintaining and developing good labor relations in the enterprise and in the organization.
1.3.3.1. Employee performance evaluation
Employee performance appraisal has been widely used since 1980 when market competition became fierce, businesses were forced to focus on and encourage employees to perform well in the goals and requirements of the business.
Employee performance appraisal is a formal system of periodically reviewing and evaluating an individual's job performance.
Employee performance appraisal is the basis for performance improvement and feedback, Human Resource planning, employee recruitment, development, career planning and development, compensation and benefits, internal Human Resource relations and employee potential assessment.
Employee performance appraisal will have an impact on both the organization and the individual, especially those who are self-conscious, those who often have low work performance or those who do not believe that the appraisal is fair and reasonable will feel worried, scared, even unsafe when working in the enterprise. On the contrary, employees who perform their work at an excellent level, are ambitious and progressive will consider performance appraisal as an opportunity to help them affirm their position in the enterprise and increase their chances of career advancement. For enterprises, performance appraisal information will help enterprises check the quality of other Human Resource management activities such as: recruitment, orientation and job guidance, training and compensation.
Content and procedure for implementing employee performance evaluation management (Tran Kim Dung, 2015, page 228):
- Identify the basic goals that need to be evaluated
- Choose the appropriate evaluation method
- Identify evaluators and train them in evaluative skills
- Inform employees about the content and scope of the assessment.
- Conduct performance reviews and set new goals for employees.
Periodic employee performance appraisal: performance appraisal is usually organized formally periodically and informally when necessary. Formal appraisals are usually held at the end of the year or after six months or monthly depending on the company. For probationary employees, appraisals are conducted immediately before the end of the probationary period. New employees are usually evaluated several times during the first year.
Methods of employee performance evaluation (Tran Kim Dung, 2015, page 231):
- Alternate ranking method
- Paired comparison method
- Scoreboard method
- Storage method
- Behavioral observation method
- Management by objectives
- Method of evaluating work performance based on key performance indicators (KPI)
1.3.3.2. Establish and manage the salary system
Compensation and benefits refer to all types of rewards an individual receives in exchange for his or her labor. Compensation and benefits are divided into two parts: financial compensation and non-financial compensation. Financial compensation includes direct and indirect components. Direct components include daily wages, monthly salaries, commissions, and bonuses. Indirect components include insurance plans, benefits, and pay for absences due to vacations, holidays, and illness. Non-financial compensation includes the job itself and the work environment. Is the job itself interesting, challenging, and demanding, and does the work environment stimulate and satisfy the employee's needs?
Compensation is always one of the most challenging issues for managers in every business. Businesses often have many different perspectives and goals when arranging the salary system, but in general, businesses aim for the following four goals:
- Attracting employees
- Retain good employees
- Stimulate and motivate employees
- Cost effective
- Meet the requirements of the law
Factors that determine and affect salary and benefits:
- Company environment: Company policies, Company cultural atmosphere, Company organizational structure
- Labor market: Market wages, Production costs,
Union, Society, Economy, Law
- Employee itself: Job completion, Seniority, Experience, Loyalty, Potential
- The work itself
The process of establishing and managing the salary system includes the following steps: job evaluation, setting the organization's salary level. To set a salary level scientifically, the administrator must conduct a salary survey, refer to and adjust according to the current salary level in society. The company can apply a salary strategy similar to the prevailing salary level in the same industry, or apply a higher or lower salary strategy.
After setting the salary level, the company needs to set reasonable allowances. Even if the salary and allowances are reasonable, the company cannot stimulate production if it does not apply methods of payment to stimulate labor.
To maintain and manage the salary system, the company needs to update the salary structure, have a fixed but flexible salary structure and resolve complaints in an objective and scientific manner.
In addition, the company needs to adjust the salary periodically, according to the company's business level, according to the ups and downs and economic trends. The company needs to promptly adjust to the prevailing salary level in society, adjust according to the cost of living, and adjust according to the company's ability to pay.
1.3.3.3. Welfare and allowances, financial and non-financial incentives
Compensation and benefits are not as simple as we often think. It is not only about direct salaries and bonuses but also indirect compensation through benefits. Benefits are