Organizational Structure of Son Ha Garment Joint Stock Company

When negotiating with customers about product designs and types, the company must spend a large amount of capital to import raw materials for production. This is an activity that, if done well, will be more effective than simple processing, but if the quality of the goods is not guaranteed or the delivery is not on schedule, the financial loss is not small.

Previously, when starting to search for the market, the Company had to do outsourcing for some other Companies such as: Chien Thang Garment, Vinatex... so the import and export work of the Company was done by consignment. In recent years, the Company has directly signed contracts with customers, doing import and export procedures by itself. Especially now, the Company has many large customers with the quantity of each order from 600 to 800 thousand products.

2.1.4. Company organization

Son Ha Garment Joint Stock Company is an independent economic accounting unit, the company's management apparatus is directed uniformly from top to bottom according to the online - functional model and is divided into two levels: company level and workshop level. Based on the functions and tasks of production and business activities, Son Ha Garment Joint Stock Company has established its apparatus according to the following diagram:

Chairperson

Board of Directors

Board of Control

Manager

Import-export business department

mouth

Next room

math - finance

Administration Department

human resources

Room

technique

Workshop I

Workshop II

Workshop III

Cutting Team 1

Sewing team (1-8)

Cutting Team 2

Sewing team (9-16)

Cutting team

Sewing team (17-22)

Note:

Online Relationship Functional Relationship

Supervision and inspection relationship

Diagram 2.1: Organizational structure of Son Ha Garment Joint Stock Company

Source: Administration and Human Resources Department

Chairman of the Board of Directors: Manages and has full authority on behalf of the Company to decide on issues related to the Company's purposes and interests, and performs the function of supervising the Company's business and management activities.

Board of Supervisors: is responsible for checking the company's financial activities, reporting the accuracy, legality and honesty of business, management and operation activities to the Board of Directors.

Director: is responsible for all company activities before the Board of Directors. The Director directly directs functional departments and workshops.

The functional department has 4 departments including: Administration - Human Resources Department, Accounting - Finance Department, Technical Department, Import-Export Business Department. Each department has a department head, whose task is to monitor, propose, inspect, and advise the director but does not have the right to make decisions for the production workshops. The workshops receive orders directly from the director, the decision-making power belongs to the director after consulting with the functional departments.

The production workshop consists of 3 workshops, corresponding to 3 cutting teams and 22 sewing teams. The organizational structure in the production workshops includes: 1 foreman who is responsible for all aspects, 1 deputy foreman who assists the foreman and is responsible for the assigned management area, economic, statistical and technical staff are responsible for assigned tasks.

The organizational structure of Son Ha Garment Joint Stock Company is quite scientific, reasonable and is increasingly improved to meet the production and business needs of the company.

2.1.5. Company's human resources

Labor is an extremely valuable asset, a decisive factor, affecting the efficiency of the production and business process of each organization/enterprise in general and of Son Ha Garment Joint Stock Company in particular. The company's leadership increasingly focuses on a young, enthusiastic, dynamic, and highly qualified workforce.

The company's labor characteristics are shown through the size and structure of human resources in the table below:

Table 2.1: Company size and human resource structure in the period 2017-2019

Criteria

2017

2018

2019

Quantity

(People)

Rate (%)

Quantity

(People)

Rate (%)

Quantity

(People)

Rate (%)

Total number of employees

2196

100

2168

100

2123

100

1. According to the nature of labor

 Direct labor

 Indirect labor

1605

591

73.09

26.91

1588

580

73.25

26.75

1550

573

73.01

26.99

2. By age

 18 – 30 years old

 31 – 45 years old

 > 45 years old

330

1208

658

15.03

55.01

29.96

350

1186

632

16.14

54.70

29.15

382

1150

591

17.99

54.17

27.84

3. By gender

 Male

Female

488

1708

22.22

77.78

452

1716

20.85

79.15

403

1720

18.98

81.02

4. By level

 General labor

 Secondary, College

 University, post-graduate

1150

890

156

52.37

40.53

7.10

1072

926

170

49.45

42.71

7.84

1012

932

179

47.67

43.90

8.43

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Source: Administration - Human Resources Department

According to Table 2.1, we can see that the total number of employees of Son Ha Garment Joint Stock Company in the period of 2017 - 2019 tends to decrease slightly. Specifically: In 2017, the company's human resources were 2,196 people, by 2018 the total number of employees decreased to 2,168 people, down 28 people (equivalent to 1.28%) compared to 2017; in 2019 the total number of employees was 2,123 people, down 45 people (equivalent to 2.08%) compared to 2018.

Labor structure by nature of work:

The majority of the company's workforce is direct labor, due to the nature of the company's main operations requiring many direct workers to carry out production stages. The number of indirect workers accounts for a small proportion, including office staff.

Directly under the departments, perform specialized tasks, contribute to promoting the overall development of the company.

In the past 3 years, the number of direct employees of the company has tended to decrease slightly. In 2018, the number of direct employees was 1,588 people, a decrease of 17 people compared to 2017 (equivalent to 1.06%); in 2019, this number was 1,550 people, a decrease of 38 people compared to 2017 (equivalent to 2.39%). The number of indirect employees in the company accounts for only nearly 1/3 compared to the number of direct employees and the data of the past three years shows that this number of employees also tends to decrease, specifically: in 2018, the number of indirect employees was 580 people, a decrease of 11 people compared to 2017 (equivalent to 1.86%); in 2019, this number decreased by 7 people compared to 2018 (equivalent to 1.21%).

The reason is that in recent years, the company's machinery and equipment have been upgraded, purchased with more diverse and modern types, so fewer direct production workers are needed. In addition, the company's management staff is relatively old, so the number of employees reaching retirement age is high. At the same time, due to the company's downsizing policy, a number of employees whose contracts have expired and who are incompetent have been cut, so the number of indirect workers has also tended to decrease slightly in recent years.

Labor structure by age:

The company's workforce is mainly between the ages of 31 and 45. This age group accounts for the highest proportion in the entire company, remaining quite stable and without many major fluctuations in the past three years.

In 2017, the number of employees aged 31-45 was 1,208 people. In 2018, this number decreased to 1,186 people, a decrease of 22 people (equivalent to 1.82%) compared to 2017. By the end of 2019, this number was 1,150 people, a decrease of 36 people (equivalent to 3.04%) compared to 2018. Employees in this age group are mainly distributed in large departments and at the general management level, department heads, team leaders, and deputy team leaders of workshops.

The two age groups 18 - 30 and > 45 account for a smaller proportion of the total number of employees in the company. However, in the past three years, the number of employees aged 18 - 30

tends to increase gradually, specifically as follows: in 2018, the number of these workers was 350 people, an increase of 20 people (equivalent to 1.06%) compared to 2017; in 2019, the number of these workers increased to 382 people, an increase of 32 people (equivalent to 1.09%) compared to 2018. On the contrary, the number of workers > 45 years old tends to decrease gradually over the years, specifically: in 2017, the number of workers > 45 years old was 658 people, in 2018 this number decreased to 632 people, a decrease of 26 people (equivalent to 3.95%); in 2019, the number of these workers was 591 people, a decrease of 41 people, equivalent to 6.49%) compared to 2018.

The number of employees aged 18-30 tends to increase while the number of employees in other age groups tends to decrease. This shows that the company's workforce is gradually getting younger, which is a factor that helps the company develop and keep up with modern trends.

Labor structure by gender:

Female workers in the company account for the majority of the total workforce because the nature of production and business in the garment industry requires a lot of female workers, requiring dexterity, meticulousness, and carefulness. Male workers are mainly concentrated in departments such as ironing, warehouse, and technical departments, which are suitable for the requirements of good physical strength, ability to withstand pressure, work progress, and technical work characteristics. Currently, the gender distribution of labor in the company is considered quite reasonable, ensuring smooth and effective coordination of work between departments/divisions.

According to the collected data, we see that the number and proportion of male and female workers in the company have fluctuated. The number and proportion of male workers tend to decrease sharply, specifically, the number of male workers decreased from 488 people (in 2017) to 452 people (in 2018), a decrease of 36 people (equivalent to 7.38%); in 2019, it decreased by 49 people compared to 2018 (equivalent to 10.84%). Meanwhile, the number and proportion of female workers tend to increase slightly. In 2017, the number of female workers was 1,708 people; In 2018, this number was 1,716 people, an increase of 8 people compared to 2017 (equivalent to 0.47%) and by 2019, the number of female workers was 1,720 people, an increase of 4 people compared to 2018 (equivalent to 0.23%).

Labor structure by labor level:

Unskilled workers account for the highest proportion of the total number of employees in the company. In 2017, this group accounted for 52.37%, but in the following two years, there was a downward trend in both quantity and proportion. Specifically: In 2018, the number of unskilled workers was 1,072 people, a decrease of 78 people compared to 2017 (equivalent to 6.78%). In 2019, the number of these workers was 1,012 people, a decrease of 60 people compared to 2018 (equivalent to 5.60%).

In addition, the number of workers trained from intermediate level and above tends to increase. The number of workers with intermediate and college degrees accounts for the second largest proportion after the group of unskilled workers. This group has tended to increase in the past 3 years, from 890 people in 2017 to 926 people in 2018 and 2019.

is 932 people.

The number of employees with university and post-university degrees accounts for a low proportion and has also tended to increase gradually in the past 3 years, specifically: from 156 people in 2017 to 170 people in 2018 and 179 people in 2019.

Thus, the company's workforce is gradually improving in terms of professional qualifications. The number of unskilled workers has been significantly reduced over the past three years, while the number of workers trained at intermediate, college, university and post-graduate levels has been gradually increasing.

2.2. ANALYZE AND ASSESS THE CURRENT STATE OF EMPLOYEE MOTIVATION AT SON HA GARMENT JOINT STOCK COMPANY

2.2.1. Current status of tools to motivate employees at Son Ha Garment Joint Stock Company

Nowadays, when society develops in the integration trend, competition becomes increasingly fierce, creating motivation for employees has become an inevitable issue, both a driving force and a development goal of the enterprise. Son Ha Garment Joint Stock Company increasingly focuses on creating motivation for employees through financial and non-financial tools.

2.2.1.1. The current situation of creating work motivation through financial tools

a. The current situation of creating work motivation through salary at Son Ha Garment Joint Stock Company

In any organization/enterprise, salary is always the main source of income for employees, so high or low salary has a great influence on work productivity as well as their attitude and awareness.

Table 2.2: Average salary at Son Ha Garment Joint Stock Company

Unit: VND

Part

2017	2018	2019
Management block	15,450,000	15,980,000	16,955,000
Office department	7,675,000	7,950,000	8,700,000
KCS Department	4,250,000	4,700,000	4,900,000
Production workers department	4,150,000	4,400,000	4,750,000
Repair department, electromechanical	3,625,000	4,200,000	4,500,000
Security, warehouse, janitorial, house kitchen..	3,365,000	3,800,000	4,350,000

Source: Accounting and Finance Department

Based on Table 2.2, we can see that the average salary at Son Ha Garment Company in the period of 2017 - 2019 is increasing for all departments in the company, which creates financial attraction for employees. The corresponding salary of each department is different, however, the difference between the department with the highest salary

- The management block with the lowest salary department shows that the company's salary paid to employees is based on the qualifications, abilities and experience of the employees but still ensures a relative level compared to other departments. This shows that the labor of employees is paid appropriately and encourages employees to stick with and strive to achieve better results at work.

Currently, Son Ha Garment Joint Stock Company is using two forms of salary payment for employees: time-based salary payment and product-based salary payment.

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