Solution to Improve Human Resource Policy of Cargo Service Joint Stock Company


CHAPTER 3: SOLUTIONS TO IMPROVE HUMAN RESOURCE REWARDS POLICY OF CARGO SERVICE JOINT STOCK COMPANY

VIETNAM AIRLINES


3.1. Development orientation of Vietnam Air Cargo Services Joint Stock Company

At Vietnam Air Cargo Services Joint Stock Company, with the orientation of sustainable development, the Company always understands that the success of the enterprise must be associated with the happiness of people and the prosperity of society. Therefore, all activities of the Company are aimed at contributing long-term value to the community and living environment, for the sustainable development of the enterprise and society.

The company always defines its vision: To become a company that serves air cargo according to quality standards as committed to customers, in accordance with the standards and development of the aviation industry.

The main objectives of the company: The company constantly innovates, focuses on improving service quality according to the standards committed to customers; completes facilities and warehouses; develops new types of services based on the Company's core service provision capacity; develops a team of qualified and competent staff to bring added value and optimal convenience to customers, ensures the rights of employees and increases value for shareholders.

The company continues to seek opportunities to expand the market, ensure long-term stability; synchronously implement management solutions, ensure effective production and business operations, improve competitiveness, cooperate in joint ventures with partners in the goods service chain to improve and optimize service capacity; expand investment in developing goods service at


Northern regional airports to exploit new types of value-added services.

In compliance with the Company's development orientation, the Company has continuously strived to develop and achieved remarkable results since its establishment. Specific orientations include:

+ Human resources are valuable and key resources. Build human resources capable of meeting the development process of providing air cargo services. The Company implements a long-term human resource policy through training programs and reasonable job assignments, in order to create the best environment for human resources to develop along with the development process of the Company. Focus on developing internal human resources and successors, and at the same time recruit additional human resources from outside who are capable of participating in training courses.

+ Improve human resource quality: focus on doing human resource work actively, seriously and effectively. Thereby, screening, training, coaching existing human resources and supplementing external human resources selectively and appropriately to meet the Company's goals. At the same time, build a human resource policy of the Company with unique and superior characteristics to adapt to the new era.

+ Human resource management has specific and superior characteristics to meet the requirements of development policies according to production, business and industry sectors to always have a core workforce, committed and loyal to the Company and selectively supplement necessary personnel to ensure the spirit of "disciplined people, disciplined culture" in the Company.

+ Improve business efficiency: find more new customers, access large air cargo markets such as Europe, the Middle East, build service prices as well as appropriate business policies to attract more customers.


+ Improve the quality of professional sales consulting services to increase the efficiency of the Company's business operations. Standardize product training and coaching, continue to train to improve communication skills, professional sales consulting for the sales team, goods service staff, cashiers, etc.

3.2. The perspective of perfection and objectives of the human resource treatment policy of Vietnam Air Cargo Services Joint Stock Company

3.2.1. Perspectives on perfecting the Company's human resource treatment policy

The Company always cares about and implements well the welfare policy for employees; insurance regimes, periodic health check-ups, festival visits, vacations, allowances, etc. are implemented in accordance with regulations. In addition to salaries and allowances paid periodically every month, the Company regularly applies emulation and reward policies for individuals and groups that have completed their tasks well, have innovative initiatives, and make positive contributions to the Company. In 2019, the Company implemented a salary reform policy, increased income for employees, contributing to encouraging employees to increase labor productivity as well as creating a sense of attachment to the Company. The Company always researches human resource welfare policies to encourage employees' motivation to work. Other welfare regimes, benefits and benefits for employees are always guaranteed by the Company: Periodic health check-ups for employees; In particular, at work locations with toxic environmental factors, there is a medical department to support daily; Paying in-kind allowances for hazardous work. The company strictly complies with regulations on occupational safety and hygiene, workplace hygiene, fire prevention and fighting, and explosion prevention are well maintained; Organizing periodic training courses on occupational safety and hygiene, and explosion prevention according to regulations; Organizing activities to improve physical fitness and health for employees.


3.2.2. Objectives of the Company's human resource treatment policy

The Company's human resource treatment policy is aimed at the following goals:

Firstly, it makes employees feel secure at work. When there is a good human resource treatment policy, employees will have additional income to stabilize their lives, thereby feeling secure in contributing to the Company.

Second, good human resource treatment policies will attract more talented people to work for the Company: Employees ultimately work for the purpose of earning income to support themselves and their families, so with good policies of the Company, it will attract quality labor force to work.

3.3. Solutions to improve human resource treatment policy of Vietnam Air Cargo Services Joint Stock Company

3.3.1 Solution to evaluate human resource treatment policy

*) Target

- Build an effective human resource treatment policy at the Company.

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*) Content

Along with compensation planning activities, compensation evaluation

The Company also needs to focus on improving human resource treatment.

The company may apply an assessment process that includes the following steps:

Step 1: Plan the assessment

It is necessary to establish an evaluation plan before conducting an evaluation of the remuneration work in the Company. This establishment must ensure the requirements.

Identify evaluation objectives: For compensation, the purpose of the evaluation process is to find out the reasons for successes or failures.


help leaders make the right adjustment decisions to make the compensation work more complete.

Determine the scope of assessment: Based on the objectives, resources and available information to determine the appropriate scope and time of assessment, the scope of assessment is an important indicator in the assessment process. With a small number of employees, sampling is much simpler, saving time and achieving realistic assessment results.

Select evaluation indicators: The Human Resources department is responsible for establishing a system of indicators that need to be evaluated for compensation, a system that ensures that it covers aspects of both financial and non-financial compensation activities.

Select survey method: Currently, the Company is conducting to evaluate the effectiveness of the treatment work through the issuance of internal newsletters that collect feedback from individuals. This is a very good way to survey the level of satisfaction of employees as well as quickly receive negative feedback on the treatment policy, however, the Company can also combine direct inquiry through employees to understand the opinions and wishes of employees with the treatment policy being applied.

Step 2: Conduct an assessment

The process of data collection needs to be carried out synchronously, choosing a reasonable time. It is necessary to focus on collecting accurate results, avoiding the situation of just meeting the number of employees.

Step 3: Analyze data, use evaluation results

After collecting the necessary information, it must be synthesized to serve the purpose of evaluating activities.

Compare the proposed objectives: the collected results must be compared with the results initially set out in the evaluation plan to determine whether the evaluation process is being carried out seriously or not, and whether the collected results meet the standards for synthesis or not.


Compare with previous compensation policy: this comparison will help leaders see the change in employee satisfaction in the Company between the old policy and the new policy. This is the basis for leaders to select appropriate factors to serve the adjustment of subsequent compensation policies.

Drawing conclusions and the reasons for success or failure, in the issue of evaluating the superior-subordinate relationship plays an important role through understanding the psychology of employees. The satisfaction or dissatisfaction of employees is a factor for managers to review the proposed compensation plan. Leaders can directly learn through employees or managers to understand the opinions and wishes of employees with the applied compensation policy. Comparing the evaluation results with the set goals and previous compensation policies is a necessary issue in order to detect the problem of determining the reasons for success or failure in compensation work, conducting a rigorous evaluation process will help the Company determine the effectiveness of implementing the established compensation plans, thereby recognizing the advantages of the compensation plan to continue to promote and at the same time detect shortcomings to make reasonable adjustments .

*) Conditions for implementing the solution

The company needs to develop a comprehensive and regular evaluation process for compensation activities. Evaluation activities must be conducted before, during and after the implementation of compensation activities. The evaluation process must be specifically planned, with the right objectives and objectivity. The evaluation process is not only based on the results of the work achieved but must be combined with surveys of employee opinions and labor fluctuation indicators during the time of applying the compensation plan. Understanding employee psychology is very important and necessary for managers. Employee satisfaction or dissatisfaction is a factor for managers to review the proposed plan.



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3.3.2. Solutions to improve financial compensation policy

*) Target

Make the company's financial compensation policies complete


*) Solution content:

Perfecting bonus policy to stimulate labor

The company should focus on building a diverse bonus policy because this is

is an effective tool to stimulate workers' ability to work.

+ Bonus based on seniority:

In order to create more goals for employees who have been with the Company for a long time but have not had the opportunity to be promoted, and at the same time encourage these employees to continue to strive and stay with the Company, the Company should develop a seniority-based bonus policy to encourage and motivate their loyalty. The proposed bonus levels are as follows:

Table 3.1: Bonus policy based on seniority



STT


Years of service

Bonus level

(based on current salary)

1

5 – 7 years

5%

2

7 – 10 years

7%

3

10 – 15 years

10%

4

Over 15 years

15%

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Solution to Improve Human Resource Policy of Cargo Service Joint Stock Company


The Company's personnel evaluation policy is implemented quite strictly and mainly focuses on work results. Individuals who do not complete their work will often have their contracts terminated. Accordingly, employees with many years of experience working at the Company are all capable people who have completed their work targets. Therefore, the seniority-based bonus policy will be


a good tool to motivate employees to stick with the company in the face of competitors.

+ Bonus based on work results

The salary increase policy, based on the Company's 6-month employee evaluation, can also be considered a bonus policy. However, a 6-month employee evaluation period will be difficult to encourage employee motivation each month. The Company should develop a bonus policy based on the monthly performance of each employee, so that employees have a goal to strive for each month of the year. This will encourage employees to work hard each month, creating higher sales for the Company. Evaluate employees' monthly performance based on monthly performance and work completion level to have an appropriate bonus level to encourage employees with good performance and motivate employees with poor performance. The proposed bonus policy based on work results is as follows:

Table 3.2: Bonus policy based on work performance



STT


Labor performance

Bonus level (calculated on the level)

salary currently received)

1

Failed to meet monthly work targets

0%

2

Complete 100% of monthly work targets

5%

3

Exceed monthly work targets

10%

+ Extra day off

Working time at the Company is continuous throughout the year, with little time off, on average indirect employees have 2 days off/week, direct employees have 1 day off/week. Therefore, in addition to the material reward policy to encourage employees to work more productively, the Company should also have additional policies.

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