HANOI UNIVERSITY

FACULTY OF MANAGEMENT AND TOURISM

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HUMAN RESOURCE MANAGEMENT REPORT

ORGANIC FASHION CLOTHES
Group 4, tutorial 2
Students ID: Nguyễn Hoàng Anh 2004050004
Đinh Minh Anh 2004050002
Phạm Thu Hà 2004050017
Nguyễn Mỹ Hương 1904010048
Nguyễn Thị Thu Thủy 2004050051
Mai Thị Kiều Trang 1807070130
Contents
Introduction ................................................................................................................................ 3
Environmental Forces and Business Strategy ............................................................................ 3
Market and Industry Analysis ................................................................................................. 3
Legal and Ethical Issues .......................................................................................................... 3
Aligning HRM with Business Strategy ..................................................................................... 4
Talent Acquisition ....................................................................................................................... 7
Need Assessment ................................................................................................................... 7
Recruitment Strategies – Channels, methods ........................................................................ 7
Selection – Creteria, methods ................................................................................................ 8
Training and Skill development .................................................................................................. 9
Training programs – Types and methods ............................................................................... 9
Performance and Growth ......................................................................................................... 11
Performance Metrics – KPIs and evaluation methods ......................................................... 11
Compensations and Incentives................................................................................................. 12
Pay structure – Salary, wages and other financial incentives .............................................. 12
Benefits – Health, other non-financial Incentives ................................................................ 14
Implementation Plan ................................................................................................................ 15
Timeline for implementing the HRM strategy...................................................................... 15
References ................................................................................................................................ 16

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 1. Introduction
This report is designed to provide an in-depth examination of our company's HRM practices,
elucidating the crucial link between our HRM strategies and our broader business goals. The
report encompasses six key sections: Environmental Forces and Business Strategy, Talent
Acquisition, Training and Skill Development, Performance and Growth, and Compensations
and Incentives and Implementation Plan. The overarching goal of this report is to offer a
HRM plan for our fashion company which align with our business strategy.

2. Environmental Forces and Business Strategy

Market and Industry Analysis

Figure 1: Workforce from 15 years old in 2020-2023

The labor force aged 15 and over in the second quarter of 2023 is 52.3 million people, an
increase of more than 100 thousand people compared to the previous quarter and 0.7
million people over the same period last year. In 2022, the labor force growth rate tends to
gradually decrease from 0.9% (first and second quarters of 2023) to 0.5% in the third and
fourth quarters of 2022. By 2023, the number This rate continues to decrease and remains
at 0.2%.
Mr. Nguyen Xuan Son - Operations Director of Manpower Group Vietnam - said that
Vietnam's skilled labor force currently only reaches 11.6% and needs to improve many soft
and professional skills.
The majority of workers in the textile industry are unskilled, performing product processing
steps, while stages requiring technical qualifications such as dyeing, fabric finishing, and
product design are still lacking and weak. According to statistics from the Ministry of
Industry and Trade, about 75% of workers in this field have not been trained or have only
been trained for less than 3 months
Legal and Ethical Issues
In this industry, there is currently a lack of a specific legal framework. According to Vietnam
legal, employees work 8 hours per day and have a minimum wage of 4.160.000 VND in Ha

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Noi ( according to Decree 38). Besides, both employees and employers need employment
contracts that include: wages, benefits, Termination Conditions,....
Employees have rights such as the Right to free consent; Right to privacy, Right to freedom
of conscience, Right of freedom speech, and Right to due process when working anywhere
Aligning HRM with Business Strategy

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 Figure 2: Workflow of our company
Based on the preceding workflow model, the organizational structure is subsequently
formulated. Furthermore, the job analysis is systematically developed by drawing upon the
inputs and work processes outlined in the workflow model.
At present, our organization is in the early stages of introduction and preparation. Our
company is gearing up for the initial product launch and the inaugural sales opening.
Therefore, it is crucial to identify potential leaders and core members who will work closely
with our co-founders to ensure a well-prepared and successful first milestone.

Figure 3: Our organization structure

CEO (Chief Executive Officer)
o Job analysis: Setting the overall strategic direction of the company, overseeing key
partnerships, and ensuring the long-term vision is achieved, decision-making,
leadership, and coordination across all departments.
R&D and Production Department
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Justification: Our clothing designs prioritize material quality and simplicity, eliminating the
need for a product design role. For the “Product Concept/Design” work unit, we can
outsource. Instead, the R&D and production team assumes a crucial role.
 R&D Manager
o Job Analysis: Leads the research and development efforts, ensuring the use of
sustainable and eco-friendly practices in clothing production. This role
requires knowledge of sustainable materials, eco-friendly processes, and a
commitment to quality.
o Work units related: "Product Concept," "Material Selection," and "Receive
Feedback and Enhance Performance."
 Production Manager:
o Job Analysis: Oversee the manufacturing and production processes,
maintaining the quality and sustainability of clothing. This role involves
efficient production management, quality control, and meeting production
targets.
o Work units related: "Production" and "Quality Assurance."

Marketing and Sales

Justification: In the Vietnamese market, organic fashion represents a blue ocean
opportunity, as it is a relatively unfamiliar concept in the country.

At this juncture, the main focus of the marketing manager revolves around strategic
planning. Tasks that require practical implementation, such as content creation and website
design, can be outsourced, and therefore, we do not plan to hire in-house personnel at this
time.
 Marketing Manager
o Job Analysis: Accurately define brand positioning, ascertain the competitive
advantage of the product, and establish a well-structured go-to-market plan.
Creating brand awareness and educating the Vietnamese audience about
organic materials. Exhibit creativity, deep knowledge in communication and
education market trends, and a passion for eco-friendly products. Especially, a
sharp and strategic mindset in positioning products effectively within the
market.

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 o Work units related: "Marketing Campaigns" and "Receive Feedback and
Enhance Performance."
 Sales manager
o Job Analysis: Actively seek potential customers and prepare sales strategies,
relationship management. Penetrates both B2C and B2B markets. They must
possess deep knowledge of the fashion industry, of the products to provide
effective guidance to customers, the ability to persuade (S), and the
fearlessness to sell innovative items (A).
o Work units: “Sales and Promotion”, “Customer Support”, "Receive Feedback
and Enhance Performance."
HR & Finance
 Human Resources Specialist:
o Job Analysis: Focuses on HR-related tasks, including recruitment, onboarding,
employee relations, and development. Additionally, supports the CEO in HR
matters.
o Work units: “Resources Allocation”
 Finance Manager:
o Job Analysis: Handles financial planning, reporting, and budgeting.
o Work units: “Budget Planning”, “Financial Report”
 Accounting executive
o Job analysis: Manages financial transactions, bookkeeping, and financial
record-keeping
o Work units: “Budget Planning”, “Financial Report”

3. Talent Acquisition
Need Assessment
To prepare for our inaugural sales campaign, we are in the process of recruiting the
following key positions: 1 R&D Specialist, 1 Production Manager, 1 Marketing Manager, 1
Sales Manager, 1 Sales & Customer Support Representative, 1 HR Specialist, 1 Finance
Manager, and 1 Accounting Executive.
Recruitment Strategies – Channels, methods
As a newly established organization, our human resources recruitment is all from external
sources: referrals and direct applicants; job search and networking platforms, especially give
them the opportunity for attractive advancement. Optimizing the cost, we use Facebook

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pages and our networking to post applicant forms besides platforms like TopCV and
VietnamWorks to attract talented candidates. But for important positions at the manager
level, we prefer the referrals and networking to ensure the quality screening of candidates.
In the beginning, the co-founder and CEO directly recruit candidates but after having a
managerial level, the recruitment will be held by the HR department and the leader of the
department. It is important to make sure that the recruiter has an equitable and fair view,
gives candidates a realistic job preview, and is professional from the beginning till the end
even if the candidates are not selected for the next step. Sending them emails and giving
them thank you and feedback. Recruitment criteria are based on job
descriptions/specifications and “company spirit”.

Selection – Creteria, methods

To find suitable employees for our company, they need to meet our criteria about mindset,
skills, and knowledge. About mindset, we look for candidates who have a growth-oriented
mindset, dare to experience, act sustainably, have fast adaptability, resilience, and 100%
conscientiousness to work. They are valued in the startup environment, especially forward
sustainability in fashion. Besides, candidates need to have enough skills and knowledge
related to the JDs they apply for.
Normally, we conduct the selection following the five stages:

Figure 4: Selection stages

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 4. Training and Skill development
Training programs – Types and methods

Figure 5: Stages of Instructional Design

In the very first stages, our company takes the action learning method and team leader
training, to be suitable for tasks achieved by managers. Specifically, good managers will lead
to the well-performing of staff so we train the skills necessary for effective leadership.
Furthermore, action learning lets managers and staff learn simultaneously while tackling real
issues and real consequences. Employees take on-the-job training for actual experience,
time-saving since we are a start-up, we need experienced ones rather than freshers. It is
necessary to do online training, just a short lecture introduction about the company, so
employees understand and feel the “spirit” of the brand.
Since our products are not common in Vietnam, regarding the nature and values they bring,
our organization offers R&D and Production a training courses. This training helps employees
to understand what they will do. The Sales and Marketing Department also joins the training
to understand the process and products to create appropriate and strategic plans. It's
imperative to understand and love the brand, and the products to be successful.
We base on the Instructional Design stages
 Need assessment
Determine the needs for training in the context of a new production, a new employee,
product launching, R&D and Production Sales and Marketing Department need to be

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trained. The task is to help them understand products and how to implement them with
“company spirit”. We can base on the Competency Framework Design to assess the training
needs of managers and leaders

Figure 6: Competency Framework Design

 Readiness for training
Ensure readiness for training by creating a positive environment and explaining how this
training benefits them in work, which can motivate and encourage their favorable attitudes
to learn as they own their ability to obtain skills and knowledge.
 Planning
Setting specific objectives of the training course and the content. HR takes charge of
connecting with departments and preparing. We conduct the in-house training but also
combine the contracted out as providing some lectures with the professionals in organic
fashion/fabric. The company's main method is on-site training so employees can really
implement and improve skills.
 Implementing
The managers need to communicate the learning objective with performance
demonstrating. At the very first stages, the CEO will guide and provide feedback as, this
period the employees are mainly managers. But having the stable system, we will have a
tracking system and let HR check it for feedback. It’s a good idea for community practicing,
allowing staff to learn from each other.

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  Evaluation
Trainees have surveys to evaluate but in the very first stage, evaluation based on the
achievement of companies (sales, KPI). If the employee can achieve the objective will be
evaluated as “effective”. The measure for following periods will base on the following 5
criterias and obtain through survey and performance after training:

Figure 7: Measures of traning success

In the near future we focus on manager training and development so we will do sabbatical
development for manager and leader level, sending them to renew and develop skills.

5. Performance and Growth

Performance Metrics – KPIs and evaluation methods
Following the below process, our organization can identify proper performance
management for each department:

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 Figure 8 : Performance management process
For front offices such as Sales and Marketing, specific KPIs related to sales volume and sales
revenue become the standard for evaluating management performance. Due to the
responsibility of selling products and bringing core value of our products to customers, the
number of sales can visualize the fulfillment and success of these two functions.

For departments related to production management (R&D and production), those who
directly produce the final product to deliver to customers, and directly work with delivery
suppliers, will take total quality management as the in-process management measurement.
Managers, colleagues, and customers will provide these departments with subjective
evaluation regarding the employee's personal qualities, such as initiatives and cooperation.

Internal management results about organizational finance and human resources can reflect
back offices’ performance. For the accounting department, ensuring sustainable finance is a
compulsory responsibility, which can be shown through financial reports, budget planning
and how to manage cash flow in our organization. Besides, employee development is the
duty of the HR function. It can be shown via employee turnover rate and their feedback.
In addition, 360-degree performance appraisals may be used to combine information from
the majority or all of the potential sources without interrupting the working process.
Employee performance reviews prior to the feedback session are a popular strategy. The
best source of performance information may be the customer, who is frequently the only
one to personally see service performance, including: response time, responsiveness of
messages, on-time delivery, product quality, etc. Other sources for the most thorough
evaluation of organizational performance include managers, peers, subordinates, and
employees themselves

6. Compensations and Incentives

Pay structure – Salary, wages and other financial incentives
To develop a pay structure, we have to consider 3 elements: legal requirements, market
forces, and the organization’s goals

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 Figure 9: Issues in developing a pay structure
In terms of legal requirements, the minimum wage of employees in Region 1 of Vietnam is
4,68 million VND/ month. Regarding market forces, there are two main factors: product
markets and labor markets. It is clear that the competition in the organic fashion market in
Vietnam is relatively low at this time. However, the product, organic clothes experiences
increased demand due to consumer interest in sustainable shopping, and the labor supply in
this industry is limited because of the high expertise requirements. Additionally, the labor
market in the organic fashion industry is competitive for attracting employees with special
skills in producing organic clothes. Given the technical requirements of the job, such as
knowledge of organic materials, sustainable production techniques, and high-quality
craftsmanship, employees in the organic fashion industry require higher levels of education
and skills. Moreover, our organization’s goal is to seek for high-quality workforce, so we aim
to offer a higher-than-average salary.

Figure 10: Salary for each position in Labor Market in Viet Nam

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 Figure 11: Salary for each position in our company

Benefits – Health, other non-financial Incentives

Figure 12: Benefits for positions in our company

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Implementation Plan
Timeline for implementing the HRM strategy

Figure 13: Timeline for implementing HRM strategy

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 References
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Nga T. N. (2022, August 4). Thách thức nguồn lao động ngành dệt may. Copyright (C) by Công
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20220802162844843.chn

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