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Human Resource Management The Case of The X Footwear Company
Human Resource Management The Case of The X Footwear Company
Human Resource Management The Case of The X Footwear Company
Journal of Science, Economics and Business 28, No. 5E (2012) 17‐27
Abstract. The leather and footwear industry in Vietnam is currently faced with a shortage of
human resources (HR). Therefore, HR competition inside the industry is vigorous. The most
important task of managers is how to appeal to talented, skilled workers and limit the number of
skilled workers leaving companies to work for competitors. In order to appeal to and maintain
talented people, companies should pay more attention to reward policies as well as motivation
policies for them. This research focuses on the case study at the X Footwear Company, based on
studying the human resource management (HRM) of the company. A questionnaire was designed
to collect data related to HRM from employees. More specifically, the questionnaires concentrated
on: (1) performance appraisal, (2) wages and rewarding, (3) the working environment, and (4)
training. Results from 350 responses provide a detailed picture about HRM at the X Footwear
Company. We also draw some implications for management, limitations of this study and
recommendations for research about this topic in the future.
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especially while operating in an industry with organizations. The developments are not
many competitors? How can the companies confined to any particular country, being found
utilize HR to encourage business activities and internationally in both developed and
improve employees’ incomes? How can local developing countries. That is not to say that
domestic enterprises adopt some of the HR there is a universal model of HRM applicable to
practices - emphasizing training and incentive all countries. With that caveat in mind, let us
compensation rather than the base wage? briefly review the various theoretical
This study attempts to answer the above approaches to HRM.
questions by using a case study approach (Yin, Fombrun and his colleagues (1984) at
2003) to analyse the HRM activities at X Footwear Michigan Business School launched a model,
Company. The case study is a suitable research which emphasized that organizational
strategy when it is necessary to study the effectiveness depends on achieving a tight fit
phenomenon empirically in its context. The between HR strategy and the business strategy
advantage of the case study method is accurate of the firm. In short, strategic HRM should be
control for all other factors that may influence seen as the overlapping part of both strategic
HRM and a lack of insufficient data. The empirical
and general management on the one hand, and
evidence was collected by personal observation
personnel management on the other. The
through a desk study, on-site visits, and a survey
selection system ensures the deployment of
questionnaire in the X Footwear Company.
individuals with the appropriate aptitudes,
knowledge and experience. The appraisal
2. Theoretical Framework system enables the firm on a regular basis to
assess whether performance is satisfactory. The
In a rapidly changing and competitive reward system distinguishes between different
environment, HRM is seen as a strategic factor levels of performance. Finally, the development
in influencing not only the success of system should be available in those instances
organizations but also that of nations. HRM has where the appraisal system indicates
assumed considerable importance in both the performance shortcomings (Figure 1).
theory and practice of management of
g
In its transition economy, Vietnam, has old HRM model for the Vietnamese context (Dung,
technology and unstable economic conditions. 2001; Gary Dessler, 2003; Diem and Quan,
However, the Government has put HR as a 2007; Thang and Quang, 2011).
priority during the national development To contribute to the theoretical literature, a
progress. In such an economy, HRM is a theoretical framework was developed and
composition of theories, policies and functional proposed to fulfil the requirements for
supporting HR, training and developing as well analysing HRM and firm performance issues,
as retaining employees in an organization to shown in Figure 2. This figure, is based on the
achieve the optimal results for both the fundamental premises of HRM activities and
organization and employees. More specifically, firm performance. HRM activities are
HRM activities encourage employees to predicated on contributing to higher-level group
contribute effectively to the objectives of the and organization objectives, results, and
organization and help them to achieve performance. A number of HRM activities are
individual objectives. Adopting the HRM included - recruitment, training and
model of Fombrun et al. (1984) and applying it development, performance appraisal, benefit
to Vietnam, researchers have developed an and compensation, and working environment.
fairs and ceremonies. The company cooperates The cooperation between the administration
with other organizations to recruit labour department, the HR department and other
including the Job Centre of Vinh Phuc departments, business units, factories is not
Province, in collaboration with the College of coordinated, especially in interviewing
Industry No. 3 and the College of Irrigation. technician candidates. The interviews are
However, recruitment still needs improving in conducted without the participation of a
some aspects, as follows: technical department representative. In addition,
The administration function and HRM HR planning is just simply proposing the
function are combined in one division and that number of employees for recruitment to each
leads to one person being responsible for joint department in a year.
tasks. This person is responsible for Performance appraisal
administrative issues and is also in charge of The result of the survey showed 59 responses
wages and rewarding for employees. The (approximately 16.85%) said the performance
recruitment group is not in charge of HR appraisal is fair and accurate. Fifty-seven responses
planning, therefore, they cannot be active in (approximately 16.28%) believe the upper level
recruitment. The recruitment group is currently managers are not capable to provide an accurate
overloaded due to the large number of labour performance appraisal. Two hundred and fifty
requests with urgent needs, but the company does responses (approximately 71.42%) saw the benefits
not have enough staff to serve this function. of performance appraisal as supporting them with a
The company website is designed with a clear working plan and personal training and
Recruitment tab. However, it is not very development. Only 62 responses (approximately
effective due to a lack of attention. If you click 17.71%) saw no improvement from performance
on the tab, you can see only one form of appraisal. Eighty-one responses (approximately
information to fill in to send to the HR 23.14%) said the current performance appraisal
department. There is no information on vacant method is not suitable. More detail about the results
positions or task information. are in Table 1.
Table 2 shows that the salary system of the (approximately 24.85%) said they are requested
Company is not motivated to the needs of the to work overtime frequently. Two hundred and
employees. Most employees are not satisfied ninety responses (approximately 82.85%) said
with their salary. Employees say they could not equipment at the working stations is clean. Two
maintain a reasonable standard of living with hundred and seventy-one responses
the income they get from their work and so they (approximately 77.42%) said their job is secure
do not contribute passionately to the company. and they are not worried about losing their job.
Many of them see the salary as not equal to More details about the results are in Table 3.
their contribution. Therefore, they are depressed Based on the above figures, we can see that the
and may leave the work at any time to join any working environment is quite good. Most of the
company that can pay them more highly. employees are satisfied with the working
Working environment environment and feel safe to work there.
The survey results show that 137 responses
(approximately 39.14%) said the work is high
pressure. Eighty-seven responses
22 N.N. Thắng / VNU Journal of Science, Economics and Business 28, No. 5E (2012) 17‐27
However, the training department has not that the company not only pays attention to
conducted a job analysis and training need wages and welfare but also develops a suitable
identification survey. Training evaluation also performance appraisal system. Appropriate
needs improving. In addition, the company has performance appraisal will create positive
not implemented career orientation and career competition among employees. Currently,
development programs for employees. On the many companies use terminology such as:
other hand, the leaders of company are all very “staff evaluation” and conduct “staff evaluation
experienced, but they have not shared their process”. Therefore, some managers consider
experience in internal training programs. staff as the target of evaluation, and then they
Recommendations and Suggestions for the evaluate the staff member individually
X Footwear Company (personal characteristics, habits,
communication, relationships and so on)
Recruitment instead of evaluating the contribution of
Complete a job description for each employees to the company. When we use the
position: In order to recruit qualified staff, the term “performance appraisal” we mean the
company needs to not only conduct HR managers will assess what their staff have done
planning effectively to establish a long-term to contribute to the objectives of the company
HR policy and an annual recruitment plan, but and the company should pay them based on
also needs to prepare job descriptions for the their capabilities.
different positions. A job description helps IT application: Information technology in
clarify duties and the tasks of positions and companies is increasing and leads to changes in
departments and to avoid overlaps. This is one of every aspect of a company’s operation. IT helps
the most important factors to improve a company operate more accurately,
management capability and to ensure fairness and scientifically and effectively. The company
transparency in performance appraisal and should apply IT into HRM as per the following
staffing. With the above-mentioned benefits, job recommendations:
descriptions are of the certain request during the - Employee management: store and update
development progress of the company. all information relating to employees from
Rational staffing: Every department should recruitment until they leave the company.
be consistent in staffing, assigning the right - A Finger print enrolment system will store
person to the right place whether they are information on the working time of employees
newcomers or current employees. Heads of while travelling between office, shops, and
divisions or departments should be the person workshops and so on. The system could help
in charge of staffing. In order to conduct the the company manage the working time of
assignment properly, the company should pay employees and support managers in a
attention to the following: list all functions and performance appraisal at the end of each month.
major duties of the department, based on the
- A Reminder application: This application
company regulations/policies; list all functions/
manages the amount of work of each
duties that are currently conducted by the
individual. Tasks include assigned tasks and
department; and compare the practical list of
individual tasks. All tasks are tagged with an
duties to the ones in the policies of the company
to realize additional duties, and to adjust appropriate status: incomplete, be prepared to
policies to avoid overlaps. complete, in progress, rate of completion,
Performance appraisal deadline and so on.
Apply a 360 degree method to assess the Benefit and compensation
capabilities and performance of employees: In Wages are a common concern in the
order to maintain a quality HR, it is required company. The average salary of workers is
24 N.N. Thắng / VNU Journal of Science, Economics and Business 28, No. 5E (2012) 17‐27
quite low and not equal to their contribution (X developing tools for collecting data on training
Footwear Company, 2010). This is considered as needs (individual questionnaires, group
the main reason that many skilled workers have questionnaires, managerial level
left their job. The change in wage structure is a questionnaires). The training department should
critical matter for the company so the company develop training demand identification
needs to establish a project team to conduct this planning, collect information on training needs,
field of work. Based on the organizational and analyse training needs information that has
structure of the company, the author proposes the been gathered.
following solutions to wage structure: Conduct training evaluations: It is
- Develop an internal staff level system. necessary to evaluate training programs and
- Consider and analyse the current wages training activities so that there can be an
paid by the company and compare them to adjustment in time and an improvement in
others in the market. training quality and training effectiveness
- Design and propose a new wage structure through the following methods: multiple
that is fair and competitive. choice, evaluation and conclusions of
experience with participants evaluating the
- Undertake preliminary consulting on
program. With the mode of participants
effective salary calculations for employees.
evaluating programs, the evaluation would be
Working environment
made in the middle and at the end of the
Motivate employees and take care of their
training course. Outsourced training centres
health, safety and life: The company should
would provide the company with an evaluation
cooperate with the Trade Union to develop a summary for each course and for the whole
corporate culture where all members are working program. The training department of the
and helping each other and are being encouraged company would complete a training report
to improve their knowledge, education level, which would be submitted to upper level
professional level and managerial skills through managers.
internal and outsourced courses so that company
becomes a second home of the workers -
especially skilled workers and experienced 5. Conclusion
managers - thereby increasing their commitment
to the company. The company should organize The Michigan model is known as the
parties, group tours, and team building activities “matching model” or “best-fit’” approach to
more frequently to recognize the contributions of HRM. In essence, it requires that HR strategies
employees to the company. Currently, the have a tight fit to the overall strategies of the
company is doing these activities quite well. business. The model identifies five common
However, it needs to be more creative in order to HR processes performed in every organization.
encourage the participation of all employees. These include recruitment, performance,
Therefore, event organizers must be very creative appraisal, rewards, and development. However,
with new ideas to encourage other members. in reality, strategies are often determined and
Training and development operationalized on a more intuitive, political
Training need identification: The training and subjective level. Certainly, the decision-
needs are all the needs that can be fulfilled by making is more complex than the model allows.
imparting training to the participants in a Therefore, we added the working environment
program and that training thereby will improve factor in HRM. More specifically, the X
the productivity of the participants and meet the Footwear Company needs to considers
company objectives. Training needs selection, better rewards, planning and appraisal
identification includes the following activities: as leading to effectiveness. Senior management
N.N. Thắng / VNU Journal of Science, Economics and Business 28, No. 5E (2012) 17‐27 25
Appendix:
Questionnaire on Human Resource Management
3. Working environment
Khoa Quản trị Kinh doanh, Trường Đại học Kinh tế,
Đại học Quốc gia Hà Nội, 144 Xuân Thủy, Cầu Giấy, Hà Nội, Việt Nam
Tóm tắt. Ngành công nghiệp giày da Việt Nam đang đối mặt với tình trạng thiếu hụt nguồn nhân lực. Vì
vậy, các công ty trong ngành công nghiệp này đang cạnh tranh mạnh mẽ về nhân lực. Một trong những nhiệm
vụ quan trọng của các chủ doanh nghiệp là làm thế nào thu hút được công nhân có kỹ năng và hạn chế tình trạng
họ chuyển sang các công ty đối thủ cạnh tranh. Để giữ và duy trì công nhân có kỹ năng, các công ty cần chú ý
đến các chính sách thưởng cũng như tạo động lực cho người lao động. Nghiên cứu này tập trung vào hoạt động
quản lý nguồn nhân lực tại Công ty Giày X. Một bộ câu hỏi đã được nhóm nghiên cứu thiết kế nhằm thu thập
thông tin liên quan đến hoạt động quản lý nguồn nhân lực từ nhân viên. Cụ thể, bộ câu hỏi này tập trung vào các
khía cạnh sau: (1) đánh giá năng lực, (2) lương và thưởng, (3) môi trường làm việc, và (4) hoạt động đào tạo cho
nhân viên. Kết quả thu được từ 350 bộ câu hỏi phản hồi đã cung cấp một bức tranh tổng thể về hoạt động quản
lý nguồn nhân lực tại công ty này. Chúng tôi cũng đưa ra các gợi ý cho hoạt động quản lý, các hạn chế của
nghiên cứu này và những đề xuất cho các nghiên cứu tiếp theo trong tương lai.