SCHOOL OF PSO MBA

GROUP ASSIGNMENT COVER SHEET

STUDENT DETAILS

Student name: DANG THI NGOC ANH Student ID number: 22004125

Student name: NGUYEN PHU QUOC HUY Student ID number: 22003990

Student name: CAO MINH NHAN Student ID number: 22004190

Student name: LE TAN TAI Student ID number: 22004223

UNIT AND TUTORIAL DETAILS

Unit name: Contemporary People Management Unit number:

Tutorial/Lecture: Class day and time: Saturday afternoon
Lecturer or Tutor name: Dr. Xuan Le

ASSIGNMENT DETAILS

Title: Assignment 2 – Topic 1 HOW HR CONTRIBUTE TO COMPANY PERFORMANCE

Length: Due date: 13/05/2023 Date submitted: 13/05/2023
Home campus (where you are enrolled): ISB – Tran Quang Khai, Ho Chi Minh City

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Student’s signature: DANG THI NGOC ANH
Student’s signature: NGUYEN PHU QUOC HUY
Student’s signature: CAO MINH NHAN
Student’s signature: LE TAN TAI
Note: An examiner or lecturer / tutor has the right to not mark this assignment if the above declaration has
not been signed.
TOPIC 1: HOW HR CONTRIBUTE
TO COMPANY PERFORMANCE

GROUP 1:
1. DANG THI NGOC ANH – 22004125
2. LE TAN TAI - 22004223
3. CAO MINH NHAN – 22004190
4. NGUYEN PHU QUOC HUY - 22003990
 Table of Contents

HR Function
Company performance
01 Brief and overview 02
Aspects and measures

Effect of HRM How HR create

03 on turnover, productivity,
04 Competitive advantage
knowledge sharing,
financial performance
1. HR Functions

What are HR FUNCTIONS in an organization? List out these functions.

Strategic Human Resources Management
Analysis and
design of work

Employee relations HR Planning

Compensations HR Functions Recruiting

Performance
Selection
management

Training and
development
 1. HR Functions

Analysis and design of work HR planning

● Systematically considering tasks, duties and ● Developing systematic plan to achieve optimum

responsibilities of a certain position and also use of an organization workforce (quality

essential skills, knowledge, qualifications and employees)

characteristics of a person to adequately perform ● Based on company strategic and business

this job planning

● Giving assistance to all HRM activities

 1. HR Functions

Recruiting Selection

● Attracting qualified applications ● Identifying and selecting the right candidate for that

● Screening candidates for a job role job in the light of knowledge, skills and abilities

● Other supports of hiring suitable candidates

 1. HR Functions
Training and development Performance management

● Helping employees increase their knowledge ● Monitoring and evaluating employees’ work (performance)

and update their skills ● Promotion, salary raise, and career plans
● Engaging employees stay longer, actively involve
themselves in the workplace and produce better results.
 1. HR Functions
Compensation Employee relations

● Including payments like bonuses, profits sharing, ● Building and maintaining a positive relationship

overtime pay,...(monetary/ financial) and also with employees

company-paid car, company-paid housing,

vacations,... (non-monetary/ indirect financial)
● Ensuring that employees are paid lawfully and
equitably for their work, attracting and retaining
the best talent.
 1. HR Functions
Analysis and design of work Examining and identifying relevant aspects (duties, tasks, skills and knowledges,
essential qualifications,…) for a certain position needs hiring

HR planning Developing systematic plan to achieve optimum use of an organization workforce

(quality employees)
Recruiting Attracting applications, screening candidates and other supports of hiring the
suitable ones
Selection Helping choosing and hiring appropriate employees

Training and development Instructing employees to increase their knowledge and update their skills

Performance management Monitoring and evaluating employees’ work (performance)

Compensation Ensuring that employees are paid lawfully and equitably for their work, attracting
and retaining the best talent.
Employee relations Building and maintaining a positive relationship with employees

Contributing to Company Performance

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 Group discussion

Which function is the most important one in HRM? Why?

Get access to Padlet and post your group opinions
 2. Company performance:
Aspects and Measures

Definition: COMPANY PERFORMANCE

Company performance can be defined as the creation process highlights the importance of creating

alignment as a basic condition for an efficient use of resource an an effective trend towards the

fulfillment of strategic intent (1)

=> Performance management is process of creating alignment

2. Company performance: Aspects and Measures

● Financial Performance

● Operational Performance

● Innovation

Aspects ● Market Share

● Corporate Social Responsibility

● Human Resource Management

 ASPECTS INDICATORS

Financial Performance Revenue, Profit, ROI, Cash Flow,..

Productivity, Efficiency, Quality, and

Operation Performance
Customer Satisfaction

New products or services, Improvement of

Innovation
existing products,

Market Share Total marketing company control

Reducing environment impact, Promoting

Corporate Social Responsibility (CSR) diversity and inclusion, supporting social
activities

Employee engagement, Turnover Rate,

Positive Working environment, Employee
Human Resource Management (HRM)
Satisfaction, Time to fill a vacant position,
Training hours per FTE
 Performance Measurement Framework

The most popular of the performance measurement frameworks has been the balanced
scorecard proposed by (2).

The balanced scorecard identifies and integrates four different ways of looking at
performance (financial, customer, internal business, and innovation learning perspectives)
 Principle of measurement

● Performance should be clearly defined

Performance
Measurement ● Performance should be accurately measured

● Rewards should be contingent on measured performance

The Balanced Scorecard
Balanced Scorecard Strategy Map (3)
Example: Measure Marketing Performance (4)
The SMART (Strategic Measurement and Reporting Technique) pyramid developed
by Doran (5) also supports the need to include internally and externally focused
measures of performance.

It adds the notion of cascading measures down the organization so that measures at
department and work-center level reflect the corporate vision as well as internal and
external business unit objectives
SMART MODEL
MEASUREMENT METRICS
PARAMETERS
TECHNIQUES (7)
 3. Effect of HRM on turnover, knowledge
sharing and financial performance
What is Human resource management?

Human resource management (HRM) is defined as the practices, policies, and

systems that influence employee’s behavior, attitude, and performance.
Noe, Hollenbeck, Gerhart, & Wright, 2007, p. 5
3. Effect of HRM on turnover, knowledge
sharing and financial performance
There are some researches about show the relationship between HRM
practice and Firm’s performance
3. Effect of HRM on turnover, knowledge
sharing and financial performance

HR value chain: it is one of the best-known models in HR. (Paauwe and Richardson, 1997).
3. Effect of HRM on turnover, knowledge
sharing and financial performance

Source: Ruzic (2015)

 Group discussion

1. What is the link between HRM practices and their effect on company performance?

2. From your perspective, How HR functions affect on Growth rate? Or financial

performance? Or employee engagement?

3. Could you please give some example about current HRM practice at your company that
you think it will affect to individual performance?
 CASE STUDY: SAMSUNG
Goal: We aim to make a positive contribution to people’s everyday lives by
offering products and services of great quality build with our innovate technology
by our talented workforce.

With philosophy “People first” and strive to reflect our respect for human
rights, diversity, and inclusion in all our day-today activities.
Provide comprehensive support for our employee to develop their skills and
reach their potential

In 2022, Samsung achieved a revenue of $234 billion, indicating a growth of

over 8% compared to the previous year.

(Samsung Electronics Sustainability Report 2022).

 SAMSUNG
Labor & Human rights Human Resource Development
● Conduct Operation of Labor and Human rights ● Career development training
training for all employees (2020) ● External fostering & In-house school
● Develop an Anti-discrimination and Anti- ● Opportunities to change jobs
Harassment Policy (2022) ● Regional expert program
● 50 employees overseas mainly personnel, Labor- ● Talent cultivation system
management relations
● Continue to update the internal wage policy to
better support the basic living needs of our
employee and their families.
● 32 labors union representing around the world.
● Equal pay policy
(Samsung Electronics Sustainability Report 2022).
 SAMSUNG
Organizational Culture
● Horizontal structure
● Internal communication
● Programs to ensure a healthier work-life balance
● Welfare benefits (Healthcare, support for congratulations and
condolences, education, entertainment and recharging, other.)
● Work efficiency improvement
● Samsung culture index survey
● Metal health promotion programs for employees

(Samsung Electronics Sustainability Report 2022).

4. How HRM create competitive advantage
What is Competitive advantage?

● To succeed, an organization must gain and maintain an edge over its competitors. (8)
● Firms can accomplish this aim in one of two ways: through cost leadership or product differentiation. (9)
 Cost leadership
• A firm provides the same services or products as its competitors, but produces them at a
lower cost. By doing so, the organization earns a better return on its investment in capital and
human resources. (10)

• A per unit cost is the cost of producing one unit of product or service. It can be reduced by
increasing the number of units produced relative to the total cost of producing them. A firm
can reduce its per unit cost by increasing the value of the following ratio:
Number of units produced/Total cost of production

• The key question is “How could a firm accomplish this aim?”

 Product Differentiation

Product differentiation occurs when a firm produces a product or service that is preferred by
buyers. A firm can accomplish this aim by: (11)

• Creating a better quality product or service than its competitors

• Providing innovative products or services that are not offered by its competitors
• Choosing a superior location — one that is more accessible to its customers
• Promoting and packaging its product to create the perception of higher quality
 Evidence linking HRM practices to
Competitive Advantage
• Study 1: The effectiveness of each company’s set of HRM practices was rated based on the
presence of such things as incentive plans, employee grievance systems, formal performance
appraisal systems, worker participation in decision making. (12)

• Study 2: Improving HRM practices from average to highly effective leads to a five percent
productivity increase. (13)

• Study 3: evaluated the impact of a broad range of HRM practices on shareholder return. They
concluded that 15–30 percent of the total value of a company could be attributed to the quality of its
HRM practices. (14)
 The direct impact of HRM practices on
competitive advantage

• Firms can achieve cost leadership through the use of effective HRM practices. HRM-related costs
associated with recruitment, selection, training, compensation, and so forth comprise a significant
portion of a firm’s expenditures.
 The direct impact of HRM practices
on competitive advantage
A Model Linking HRM Practices to Competitive Advantage

• HRM practices -> Employee-centered outcomes

• Employee-centered outcomes -> Organization -

centered outcomes

• Organization-centered outcomes -> Competitive

advantage
 HRM Practices and Sustained
Competitive Advantage
• Creating a competitive advantage is one thing, but maintaining it over the long term is another. Many of the
strategies used to gain a competitive advantage are difficult to maintain because they can be easily imitated.

• Human Resource Management is less likely to be imitated, so the competitive advantage gained through HRM
activities can be more sustainable than the advantage gained by other means. (8)

1. Competitors rarely have access to the company's human resource management activities; that is, these practices
are not conspicuous to outsiders and, therefore, cannot be easily imitated.

2. Even if these methods are visible, their impact may be unfavorable when used by competitors. HRM practices
represent an interrelated system. A particular HRM practice can only be successful when used in conjunction with
other HRM practices.
 Google

• The secret of Google’s success is its

innovative work culture. Its culture
drives innovation and performance
which is exemplary and a source of
inspiration for others.

• At the centre of its smart culture and

structure is the strategic role of the HR.
 Group discussion

1) What are HR competitive advantage that contribute to the organizations?

2) What is The Manager’s HRM Role?
3) Could you please give some other examples that HR practices contribute to build the
advantage to the firm?
 Team discussion recap HR Functions
Question: Which function is the most important one in HRM? Why?
Team discussion recap HR Functions
Question: Which function is the most important one in
HRM? Why?
 References
1) Austin RD. Business performance measurement: theory and practice. Cambridge University Press; 2002 Mar 7.
2) Kaplan RS, Norton DP. Balanced Scorecard Success: The Kaplan-Norton Collection (4 Books). Harvard Business Review Press;
2015 Dec 22.
3) Kaplan RS, Norton DP. Transforming the balanced scorecard from performance measurement to strategic management: Part 1.
Accounting horizons. 2001 Mar 1;15(1):87-104.
4) Ambler T, Kokkinaki F. Measures of marketing success. Journal of Marketing Management. 1997 Oct 1;13(7):665-78.
5) Doran GT. There’sa SMART way to write management’s goals and objectives. Management review. 1981 Nov;70(11):35-6.
6) Parmenter D. Key performance indicators: developing, implementing, and using winning KPIs. John Wiley & Sons; 2015 Apr 13.
7) Brudan A. Production and Quality Management KPI Dictionary. KPI Institute; 2015.
8) Reed, R., and Defillippi, R.J. Causal ambiguity, barriers to imitation, and sustainable competitive advantage. Academy of
Management Review. 1990; 15 (1): 88–102.
9) Ibid
10) Steffy, B.D., and Maurer, S.D. Conceptualizing and measuring the economic effectiveness of human resource activities. Academy
of Management Review. 1988; 13(2): 271–286.McConnell, C.R., and Brue, S.L. Economics: Principles, Problems, and Policies
(12th ed.). New York: McGraw-Hill; 1993.
11) Huselid, M.A. Documenting HR’s effect on company performance. HR Magazine. 1994 Jan. 79–85
 References
12) Huselid, M.A., Jackson, S.E., and Schuler, R.S. Technical and strategic human resource management effectiveness as determinants of
firm performance. Academy of Management Journal. 1997; 40 (1): 171–188.
13) Caudron. How HR drives profits
14) Absar MM, Nimalathasan B, Jilani MM. Impact of HR practices on organizational performance in Bangladesh. International Journal of
Business Insights and Transformation. 2010 Apr 1;3(2):15-9.
15) Mansour M. The relationship between human resources management practices and job engagement: The mediating role of psychological
capital. Management Science Letters. 2020;10(13):3047-56.
16) Yang W, Alves JC. Impact of HRM Practices on employee turnover intentions through organizational climate: A social identity perspective.
International Journal of eBusiness and eGovernment Studies. 2021 Dec 1;13(2):260-80.
17) Camelo-Ordaz C, Garcia-Cruz J, Sousa-Ginel E, Valle-Cabrera R. The influence of human resource management on knowledge sharing
and innovation in Spain: the mediating role of affective commitment. The international journal of human resource management. 2011 Apr
1;22(07):1442-63.
18) Boselie P, Paauwe J, Richardson R. Human resource management, institutionalization and organizational performance: a comparison of
hospitals, hotels and local government. The International Journal of Human Resource Management. 2003 Dec 1;14(8):1407-29.
19) Ružić MD. Direct and indirect contribution of HRM practice to hotel company performance. International Journal of Hospitality
Management. 2015 Aug 1;49:56-65.
THANK YOU