HRM Final: I. Short Answers
HRM Final: I. Short Answers
I. SHORT ANSWERS
1. Discuss the nature of Job analysis, including what is it and how it is used (179
words)
Job analysis is the procedure through which you determine the duties of the
positions and the characteristics of the people to hire for them.
Job analysis produces information for writing job descriptions and job (or person)
specifications. The supervisor or human resources specialist normally collects one or more
of the following types of information via the job analysis:
- Work activities. First, he or she collects information about the job’s actual work activities,
such as cleaning, selling, teaching, or painting. This list may also include how, why, and
when the worker performs each activity.
- Human behaviors. Information about human behaviors the job requires, like
sensing, communicating, lifting weights, or walking long distances.
- Machines, tools, equipment, and work aids. Information regarding tools used, materials
processed, knowledge dealt with or applied (such as finance or law), and services
rendered (such as counseling or repairing).
- Performance standards. Information about the job s performance standards
(in terms of quantity or quality levels for each job duty, for instance).
[- Job context. Information about such matters as physical working conditions, work
schedule, incentives, and, for instance, the number of people with whom the employee
would normally interact.]
- Human requirements. Information such as knowledge or skills (education, training, work
experience) and required personal attributes (aptitudes, personality, interests).
2. Describe the main internal and outside sources of candidates - 205
INTERNAL SOURCES :
a. Transfers
Employees may be transferred from one department to another wherever the post
becomes vacant.
b. Promotions
The promotion policy is followed as a motivational technique for the employees who work
hard and show good performance.
c. Demotions
Based on the performance, managers can make decisions in lowering the positions of few
employees. These employees can act as a source of recruitment to the lower positions.
d. Retirements
The retired employees may be given the extension in their service in case of the non-
availability of suitable candidates for the post.
OUTSIDE SOURCES :
a. Advertisement and e-recruitment
Through print media and available electronic sites, we can give publicity to the
vacant posts and the details about the job in the form of a job description and job
specification are made available to the public in general.
b. Campus interviews:
It is the best possible method for companies to select students from various
educational institutions. It is easy and economical to personally visit them.
c. Competitors:
By offering better terms and conditions of service, the human resource managers
try to get the employees working in the competitor’s organization.
d. Placement agencies:
A databank of candidates is sent to organizations for their selection purpose and
agencies get a commission in return.
3. Explain the key points to remember when conducting a background
investigation ( 120 words)
There are some key points in conducting background investigations :
1) Reference checks
2) Background employment checks
3) Criminal records
4) Driving records
5) Credit Checks
Because:
1) To verify factual information provided by applicants
2) To uncover damaging information
The background check is often a final step taken by employers to help
ensure a sound hiring decision and protect the employer from a number of
potential risks. For many employers, a background check is a reliable way of
verifying claims made by job seekers during the hiring process. Commonly verified
data include legal eligibility for employment, dates of prior employment, military
service, education, identification , county criminal records, motor vehicle record,
credit, licensing verification, social security number, and reference check.
4. Summarize the purpose and the process of employee orientation 127
PURPOSE :
Orientation helps new employees:
● Feel welcome and at ease
● Understand the organization
● Know what is expected in work and behavior
● Begin socialization process
It is also helps the company to:
● Create good first impressions of the company.
● Engaging the new employees.
● Helping reduce employee turnover as the orientation shows that the
organization values the employee, and provides them with necessary
resources needed for them to do their jobs.
PROCESS :
Employee orientation is an event that is conducted by the HR team to make sure
that the employees know what is expected of them.
The orientation takes place in classrooms or conference halls where the HR
manager provides only general information the new employee needs to know, such as
employee benefits information, personnel policies, daily routine, company organization
and operations, safety measures and regulations, facilities tour,...
5. Explain each of the 4 steps in the training process (194 words)
Step 1: Needs analysis
Training needs are the differences between standard performance and actual
performance. Hence, it tries to bridge the gap between standard performance and actual
performance. The gap clearly underlines the needs for training of employees. Therefore ,
under this phase, the gap is identified in order to assess the training needs.
Step 2: Instructional Design
The design should include summaries of how you plan to set a training environment that
motivates your trainees both to learn and to transfer what they learn to the job. It is also at
the design stage that the manager reviews possible training program content (including
workbooks, exercises, and activities), and estimates a budget for the training program.
Step 3: Program implementation
After the selection of an appropriate method, the actual functioning takes place. Under
this step, the prepared plans and programs are implemented to get the desired output.
Under it, employees are trained to develop for better performance of organizational
activities.
Step 4: Evaluation
It consists of an evaluation of various aspects of training in order to know whether the
training program was effective. In other words, it refers to the training utility in terms of
the effect of training on employees’ performance.
6. Describe the appraisal process and illustrate the problems to avoid in
appraisal performance ( ~ 180 words)
PROCESS:
1. Reflect on what is required of the employee to do their job well (including
behaviour and results)
2. Set goals that will benefit the individual and the business
3. Share feedback on great work as well as areas for improvement
4. Identify opportunities to develop performance through ongoing education, training
and learning
5. Formally review performance after a specific period
6. Reward a job well done
PROBLEMS :
1. Unclear standard
It would probably result in unfair appraisals, because the traits and degrees of merit
are ambiguous. For example, different supervisors might define good performance, fair
performance, and so on differently. The same is true of traits such as quality of work or
creativity.
2. Central tendency
Some supervisors stick to the middle when filling in rating scales. Central tendency
means rating all employees average. Doing so distorts the evaluations, making them less
useful for promotion, salary, or counseling purposes.
3. Halo effect
Experts define halo effect as the influence of a rater's general impression on ratings
of specific rate qualities. For example, supervisors often rate unfriendly employees lower
on all traits, rather than just on getting along well with others.
Other problems include: leniency or strictness, recency effects, bias,...
7. List the basic factors determining pay rates (149 words)
Employee compensation includes all forms of pay going to employees and arising
from their employment. It has two main components, direct financial payments (wages,
salaries, incentives, commissions, and bonuses) and indirect financial payments (financial
benefits like employer-paid insurance and vacations).
In turn, there are two basic ways to make direct financial payments to employees:
based on increments of time or based on performance. Time-based pay is still the
foundation of most employers' pay plans. Blue-collar and clerical workers receive hourly or
daily wages, for instance. Others, like managers or Web designers, tend to be salaried and
paid weekly, monthly, or yearly.
The second direct payment option is to pay for performance. For example,
piecework ties compensation to the amount of production (or number of pieces) the
worker turns out. Sales commissions are another performance-based (in this case, sales-
based) compensation. Other employers devise pay plans that combine time-based pay
plus incentives.
8. How would you motivate trainees? How would you apply 5 motivation theories
in formulating an incentive plan
1. Hierarchy of Needs
People are motivated first to satisfy each lower-order need and gradually to each of
the higher-level needs.
-> Supporting them in other aspects of their lives outside work: offer flexible
working hours for them to focus on their families and a fair wage to help them feel
financially stable.
2. Herzberg's Hygiene - Motivator Theory
→ Make sure they feel appreciated , supported and treated right by :
● Giving plenty of feedback ,
● Showing what they will gain through the company
● Offering them the best possible working conditions and fair pay.
3. Demotivator and Edward Deci
→ Offering an extrinsic reward for an intrinsically-motivated act can conflict with the
acting individual‘s internal sense of responsibility.
→ Some behaviors are best motivated by job challenge and recognition, others by
financial rewards.
4. Victor Vroom’s Expectancy Theory
→ Employee confidence building and training, accurate appraisals and knowledge
of workers‘ desired rewards can increase employee motivation.
5. Behavior Modification/ Reinforcement Theory
→ Behavior that leads to a positive consequence tends to be repeated, while
behavior that leads to a negative consequence tends not .
→ Behavior can be changed by providing properly scheduled rewards (or
punishments).
9. Describe the main incentives for managers and executives ~ 147
Compensation for a company's top executives usually consists of four main
elements. Base pay includes the person s fixed salary as well as, often, guaranteed
bonuses such as 10% of pay at the end of the fourth fiscal quarter, regardless of whether or
not the company makes a profit. Short-term incentives are usually cash or stock bonuses
for achieving short-term goals, such as year-to-year increases in sales revenue. Long-term
incentives aim to encourage the executive to take actions that drive up the value of the
company's stock and include things like stock options; these generally give the executive
the right to purchase stock at a specific price for a specific period. Finally, executive
benefits and perks include things such as supplemental executive retirement pension
plans, supplemental life insurance, and health insurance without a deductible or
coinsurance. With so many complicated elements, employers must also be alert to the tax
and securities law implications of their executive compensation decisions.
10. List the HR challenges of international business ( 177 words)
With the globalization of the world economy, even small firms are discovering that
success depends on marketing and managing abroad.2 But expanding abroad requires
putting in place management systems to control overseas activities. These systems
include managerial controls, planning systems, and, of course, human resource
management systems for recruiting, selecting, training, appraising, and compensating
workers abroad.
Managing human resources internationally creates challenges. For one thing,
differences in cultures and economic and legal systems influence employer HR practices
from country to country. For example, how should we appraise and pay our local
employees? How should we deal with the unions in our offices abroad?
Challenges like these don't just come from the vast distances involved (though this
is important). The bigger issue is coping with the cultural, political, legal, and economic
differences among countries. In China, for instance, government-backed unions are
relatively powerful, and in Europe, firing an employee could take a year or more. The
bottom line is that it's impossible to effectively manage human resource activities abroad
without understanding how countries differ culturally, economically, and legally.
c. Recruitment (CLC1)
i. Goals
- Find the best talents for the vacancies
- Manage the recruitment sources
- Manage the vacancies in the organization
- Run the internal recruitment process
- Build the strong HR Marketing platform
- Cooperate with the local and international universities
- Provide feedback about the trends in the job market
ii. Method of recruitment: direct methods, indirect methods, third party
methods
iii. Process
- Step 1: Commence Recruitment The Director of Human Resources at Apple
Headquarters completes the following documents before there is an announcement for a
position:
• Recruitment request form • Job description
• Job classification and suggested salary range
• Interview questions • Test/Skill evaluation tools
• Criteria for evaluating candidates
- Step 2: Announcement of positions
- Step 3: Advertising is a prominent source to build a pool of candidates
- Step 4: Receiving complete Application/Resume and begin the review process
•Applicants are accepted or rejected on the basis of their qualifications and
experience in the field of engineering and management.
•The criterion for selection is determined before the actual screening takes place.
•Once the screening is complete using the criteria of performance and experience,
the Hiring Unit interviews at least three applicants.
- Step 5: Committee/Face to Face interviews
- Step 6: Reference check
iv. Apple’s selection attributes
- Vision minded: Everyone joining the company must have a clear picture of its
management vision – and fully agree to fight for it, to defend it and to live with it every
day. Applicants who do not seem to get it are systematically rejected. When you hire
people who don’t seem to agree with, or care about your company vision, you are
potentially employing future enemies.
- Innovation minded: Steve Jobs always emphasized the vital importance of hiring
people who are innovative – willing to create something from nothing. Applicants are first
chosen for their ability and willingness to constantly create, rather than for their technical
competence.
- Future minded: Employees at Apple are driven by their leader’s vision of the future and
they contribute everyday to creating the future, more than just beating the competition.
Each of them owns the future of the market because they know they can contribute to
creating it. The eagerness to create, not follow the future is a vital attribute observed in top
players, no matter the industry.
- Passion minded: Steve Jobs’ first principle is: “Do what you love.” People are hired
because they love the product, the company and its vision. Applicants who do not
demonstrate a genuine passion and “love” for the company’s purposes and business
philosophy will never make it.
- Contribution minded: A statement given by an Apple recruiter is clear enough: “We
didn’t want someone who desired to retire with a gold watch. We wanted entrepreneurs,
demonstrated winners, high-energy contributors who defined their previous role in terms
of what they contributed and not what their titles were.”
- Engagement minded: Over two thirds of Americans are not engaged in their workplace.
Apple management is strict on employees’ level of commitment. Committed individuals
who are inspired by a grand purpose make the whole difference in the most competitive
conditions.
- Excellence minded: Steve Jobs was known for his passion of perfection. The company
always tries things out until they are perfectly done. The same attitude is expected of every
collaborator. Applicants who do not share that passion for excellence do not have a
chance.
d. Compensation and benefits (CLC2)
i. A competitive method of care: Encourage competitiveness and
dedication
- Offer higher pay than average.
- Benefits package: healthcare, contributions and chance to buy Apple’s stock and
products.
- Packages depend on position, location and time at work, flexibility built for employees
and their families.
ii. Tying economic rewards to company success
- Economic rewards at Apple are significant, but largely tied to the company’s valuation.
- Purpose is to reduce selfish behaviors .
- The primary monetary motivator at Apple: “the opportunity for wealth creation” as a -
result of stock ownership.
- Individual accomplishments are important.
- RSUs (Restricted Stock Units) is one popular economic rewards at Apple.
iii. Equity awards: RSUs
- Attract and retain an outstanding executive team.
- Ensure a strong connection between executive compensation programs and long-term
interests of shareholders.
- Defer issuing shares until the vesting schedule is complete, which helps delay the
dilution of its shares.
iv. Fairness in compensation
- Evidences of unfairness:
+ Apple is paying its CEO the maximum that it can afford, while paying its retail employees
the minimum possible for Apple, resulting in the leave of many employees.
+ Whether this will prove to be wise in the long term remains to be seen.
→ Apple believes their executive compensation program has driven the executives to take
the company this far.
v. Lessons
- Teamwork is a unique approach from Apple. The work of each team would be reviewed
and one best would be chosen.
- Apple reinforces the employees to have strong self-reliance and develop their skills on
their own.
- The important retention factor of Apple is economic reward. Employees will get stock
grants periodically if they could contribute something big to the company.
- Apple’s executive compensation strategy has been the critical tool towards its
achievement. It so far has enticed exceptionally talented and creative employees.
- Unless the company and employees are in a broad agreement, it will result in the ill
frustration of the employees causing a conflict in the relationship between the employer
and employees.
2. VINAMILK
a. Background
- Vinamilk is the largest dairy company in Vietnam. Based on the UNDP 2007 Top 200
largest firms in Vietnam report, it is also the 15th largest company in Vietnam. In 2010, it
was the first company in Vietnam to be included in the Forbes Asia's 200 Best Under A
Billion list that highlights 200 top-performing small- and mid-sized companies with
annual revenue under US$1 billion.
- The company was established in 1976 as the state-owned Southern Coffee-Dairy
Company, to nationalize and take over the operations of three previously private dairy
factories in South Vietnam: Thống Nhất (belonging to a Chinese company), Trường Thọ
(formerly owned by Friesland Foods, best known for its production of condensed milk that
was widely distributed across the South) and Dielac (Nestlé). It was renamed United
Enterprises of Milk Coffee Cookies and Candies in 1978. It became the Vietnam Dairy
Company, formally established in 1993. In 2003, following its IPO to the Ho Chi Minh Stock
Exchange, the company legally changed its name to Vietnam Dairy Products Joint Stock
Company (Vinamilk).
- The principal activities of the Vinamilk are to produce and distribute condensed milk,
powdered milk, fresh milk, soya milk, yogurts, ice-cream, cheese, fruit juice, coffee and
other products derived from milk.
- Major brands: Vinamilk, Dielac, VFresh (juice & soya milk)
- Main competitors: Dutch LadyVietnam (a division of Friesland Foods), Nestlé Vietnam,
Abbott, Mead Johnson, Friso and Nutifood.
b. Recruitment
i. Grounds for construction
- Based on the plan of labor demand and the situation of production and business
activities of enterprises. On that basis, determine the human resource needs of
enterprises: how many people, qualifications, skills, quality, etc.
- Analyze the labor supply in the labor market to determine the sources of recruitment
and potential recruitment in order to recruit the most qualified and qualified laborers.
- Comparing forecasts of current and future human resource needs with the supply of
recruiting labor forces in the market to make the most reasonable recruitment plans.
- The selection of human resources from outside the organization depends on the
complexity of the job, the nature of the type of workforce to be recruited.
- When designing the steps in the recruiting process, we need to design to obtain the
most specific and reliable information from which to base the recruitment.
ii. Object
All applicants who have butt in their place wanting to apply for positions in which the
company hires both internal and external sources.
Recruitment is considered based on views regardless of race, religion, sex, and age
iii. Scope of application
Encourage applicants to come from inside and outside sources of the business
iv. The goal of the selection process:
It is to select the qualified person to work, the quality of work through an impartial
selection process.
v. Performance content
Labor recruitment process of Vinamilk:
This process is to guide and allocate responsibilities in labor recruitment, ensure the
supply of resources in accordance with the company's planning and policies.
Current recruitment policy:
Vinamilk's goal is to be a multidisciplinary group, a global brand with a professional
workforce. Therefore, the recruitment policy is geared towards diversifying the sources of
candidates for leadership, management and staff.
• Step 1: Make a recruitment request
- The unit needs to recruit the report to the Human Resources Department to submit to
the General Director for approval
- Once the Human Resources Department has been approved, it will start recruiting
• Step 2: Recruiting
- Planning recruitment
- Establish a recruitment committee
- Searching for candidates from internal and external candidates
- Select profile
- Selection
- Verification of candidate information
- Final evaluation and selection
• Step 3: Integration, trial and probation
- Integration: In order for the new staff to understand the working environment and
culture of the company, the Human Resources Department will implement the
integration work including the introduction of new staff and related departments through
Forms of exchange meet, email introduction ..., disseminate to the staff policies, content
and regulations of the company.
- Trial and Appraisal: Depending on the position of the recruiter, the qualifications and
the experience of the new employee, the recruiting unit will coordinate with the Human
Resources Department to apply appropriate assessment methods. in a probationary
period. Qualified employees will be officially recruited by signing a contract of
employment.
vi. Recruitment programs of Vinamilk:
- Business Internship Program: It is one of Vinamilk's recruiting programs aimed at
dynamic, energetic, ready-to-work and enthusiastic students. The program is a great
opportunity for young potential candidates to join and grow with the professional and
strong team of Vinamilk. Students will be trained in the necessary skills alongside practical
work experience.
- Recruitment program at universities: Every year, Vinamilk companies hold recruitment
programs at major universities nationwide. This is not only a great opportunity for
students to participate in the application but also an opportunity for you to learn,
exchange experience.
- For managers: Priority will be given to children of staff who have graduated and are
directly recruited into the company.
- Some limitations: Vinamilk has established a reasonable recruitment process. However,
there are still some limitations such as:
+ Process steps are often not fully implemented, especially in the recruitment
planning process. It is forecasted that the demand for human resources and the analysis
of the current situation of human resources, which are required to be continuous and of a
permanent nature, shall be carried out only when there is a change in the human
resources. relocation or expansion of production.
+ Reduce and eliminate important stages of recruiting new employees, paying
attention to the costs of recruiting and employing employees, but forget that each step of
the process is of equal importance.
+ The process is reduced to the maximum "select and use", lost the training period
to guide employees, new workers while the training level of Vietnam is not close to the
reality of each enterprise
+ Human resources tend to be taken from the bottom to the top, rarely transverse
or cross, leading to
c. Training
- Vinamilk always maintains, promotes and improves staff development environment
because it is one of the key factors to build a strong workforce.
- Vinamilk’s training activities continued being focused on improvement of training
quality and effectiveness. The training activities aimed to meet both short-term and long-
term demands. Also during the year, Vinamilk continued implementing training programs
to enhance capability of the management team: “Master of Business Administration”,
“Executive Director”, “Enhancing Capacity Management for middle-class management
team”... Indicators of training activities (data from Vinamilk, excluding subsidiaries):
- The above indicators show that the implementation of practical training in 2019 was
better than the plan. The number of participants and number of hours of training in 2019
increases, by the reasons of:
+ Enhancing training activities for staff at new factories (Vietnam Powdered Milk
Factory and Vietnam Milk Factory) to meet the needs of operating new machinery.
+ Enhancing training activities for supervision staff of distributors to improve
supervisory skills and sales management.
EMPLOYEE EVALUATION
Comprehensive employee evaluation system in terms of capability assessment and
performance efficiency of employees (Performance Appraisal - PA, Management by
Objective - MBO) continues being applied and more improved to enhance performance
efficiency in practice. The evaluation makes links between the Company’s target and the
target of each department and reaching to the staff level; between the performance
efficiency of the Company and the achievement of each department or individual.
Employee evaluation connects and provides useful information for other areas:
- Helping employees have self-assessment on their results and improvement on their
work;
- Creating interactive mechanisms between staff and manager;
- Providing useful information for developing training programs;
- As a basis for salary increase for employees who have well done during the year;
- As a basis for promotion for employees.
Particularly, Vinamilk stopped Management by Objective – MBO program to aim at
the orientation that the objectives in the MBO should be set up sufficiently and
appropriately and reach to necessary challenging level with reference to the world’s
standards and practices in order to ensure completion of the overall objectives of the
Company. The 2015 MBO has been set on this orientation and will be implemented to
comprehensively promote effectiveness of the program.