The recommendations on enhancing the quality of human resource

INTRODUCTION
We all know that human resource is always one of the most important
factors in the business activity, so human resource management is crucial to the
business management. The human resource policy always plays very decisive role
in the development and the success of all companies, Agricultural Material And
Forest – Agricultural Products Import – Export Company (AFORIMEX) is not an
exception. In order to find out the real business situation of the company at present
and make a certain contribution to the company development in the future,
studying the current human resource of the company is an useful approach. That is
the reason why I have decided to choose the subject “Analysis of the
AFORIMEX’s

current

human

resource

development

strategy

and

recommendations for improvement” as the topic of my field study report
My report consists of three main chapters. Chapter 1 describes the general
information about the company and its human resources. Chapter 2 deals with the
real situation of the company’s human resource development. And chapter 3 lists
out some possible recommendations or how to enhance the quality of
AFORIMEX’s human resource.

CHAPTER 1: AFORIMEX AND THE HUMAN RESOURCE OF THE
COMPANY.
1.1 Company overview:
AGRICULTURAL

MATERIALS

AND

FOREST-AGRICULTURAL

PRODUCT IMPORT-EXPORT COMPANY(AFORIMEX)
Address: 68 Truong Chinh Str, Dong Da Dist, Hanoi City, Viet Nam
Tel

: +84.4.868 9353

Fax

: +84.4.868.9354

Email

:

1.1.1 The history and development of AFORIMEX
AFORIMEX

was

established

according

to

the

Decision

No

3329/QD/BBN-DMDN in November 29th 2005 by The Ministry of Agriculture
and Rural Development. The company has officially operated since May, 19th
2006. AFORIMEX is a state owned enterprise directly under the Agricultural
Construction and Rural Development Corporation of the Ministry of Agriculture
and Rural Development The company specializes in manufacturing and exporting
agricultural products.
The products of the company have been exported to many countries such as
China, Russia, Belarus, Bangladesh, Malaysia and so on. The company provides
many Vietnamese specific agricultural products such as:
- Tapioca starch: The company’s tapioca starch products are of good quality,
diversified in types, and abundant in quantity

which can meet customers’

requirements. They are all manufactured from stable and high quality material
resources from the Central Plateau Area.
- Peppercorn: The company has provided both black and white peppercorn with

special taste and flavor.

2


- Soybeans and green peas: They are of high quality and can meet the export
standards.
- Coffee: harvested from many farms in the South. Central, and West Plateau
provinces.
- Tapioca chips and dried corn.
- Rubber latex: The company supplies some kinds like SVR 20, SVR 10…
- Dried coconuts.
1.1.2 The AFORIMEX’s business activities:
a. The function:
- Exporting-importing food, agricultural-forestry products (rubber latex, coffee,
peppercorn, cashew nut, tapioca starch, soybean, processed wood, building
wood…).
- Exporting-importing agricultural materials.
- Exporting-importing construction materials and equipment, and machineequipment serving agriculture and water source.
- Exporting-Importing pottery and marine time products.
b. The business scope:
- Consulting the Management Board and the General Director of the Agricultural
Construction and Rural Development Corporation the business strategy of export
and import.
- Searching and expanding the market for export of the company and the
corporation.
- Actively finding and signing economic contracts for the Corporation and itself.
- Organizing manufacture and exporting food and some agricultural products.
- Managing and using the business capital correctly in accordance with the
Government regulations, enhancing the business capital on the base of achieving

the increasing business results.

3


1.1.3The infrastructure and the business network:
a.Factory and branches:
- Daknong Tapioca starch processing factory: It’s located in Daknong province,
The Western Plateau Area where has been considered having most abundant
material of cassava with the best quality in Viet Nam nowadays. The factory has
been invested in a production site of 20 ha, and equipped the modern technology
imported from Taiwan which has the capacity of processing 100 ton/day. The
factory’s products have met the standards for export. The company has invested in
a cassava material zone where is neighbor the factory, has an area of 3000 ha.
This makes sure that the factory has been supplied with stable and convenient
material source for production.
- Ho Chi Minh City Branch Office: the address is 1/5 Tran Xuan Soan street,
District 7. This is the office which sells farming fertilizer with the biggest quantity
in the South market.
- The Central and West Plateau region Branch office: This office is the one who
purchases the materials such as cassava, coffee, peppercorn, etc for the purpose of
processing and business of the company.
- Mong Cai Branch Office: This is the important place for the company to do
across border business with Chinese partners. The company usually exports and
imports goods such as tapioca starch, fertilizer …
- Hanoi Office: this is the transaction center and the head quarter of the company.
All business activities of the company have been conducted and managed by this
office. Although the geographic distances among the head quarter, the branches,
and the factories always exist, weekly business meetings are organized and all
managers of the departments and branches can participate thanks to the

information technology application. All necessary information and business
situations have been quickly reported to the board of directors, so that the
management and operation of the company is always effective. The company has

4


paid attention to investing in the computer network and other equipment. The
investment has partly contributed to the successful business today.
b.Customers and partnerships:
With the determination of the board of directors and the whole labor force
of the company, so far AFORIMEX has already established good, reliable
business relations with many banks, such as Agriculture And Rural Development
Bank, Laos-Viet Joint Venture Bank, Viet Nam Investment and Development
Bank and so on.
The company also has business relation with many foreign partners in
China, Cambodia, Russia, Laos, Belarus, Ukrein, Bangladesh, and domestic
partners like Thanh Hoa Tapioca Starch factory, Thinh Phat factory, Quan QuanTay Nguyen Factory, Tay Ninh factory, etc.
Many Fertilizer Companies that AFORIMEX has had business doing are
Petroleum Chemical and Fertilizer Company, Sai Gon Agricultural Material
Company, Binh Duong Agricultural Material JSC, Can Tho Agricultural Material
and Technique JSC, Hanoi Agricultural Material and Farming Product Company,
Nghe An Agricultural Material Company…
AFORIMEX has usually maintained close contacts with foreign
representative offices in Viet Nam.
In order to serve import-export business activities, AFORIMEX has many
economic contracts with road transport companies as well as maritime transport
companies.
1.2 The human resource in AFORIMEX’s organizational tructure:
In order to have overview of the company’s organizational structure, we

can study the below figure 1.1

5


DIRECTORING
BOARD

Administrativeorganizational
Department

Planning and
export-import
department

Financing and
accounting
department

Daknong
Tapioca starch
processing
factory

Ho Chi Minh
city Branch

Mong Cai
Branch

Purchasing
department

Central and
West Plateau
region branch

1.2.1The board of directors:
-Mr Nghiem Minh Tien is the director who has the highest responsibility under the
general director. The director delegates the two vice directors to sign economic
contracts in the fields they are responsible. The director is the one that directly
manages the organizational, internal, financial fields as well as the whole business
operation of the company.
-The two vice directors assist the director in organizing, and managing the
business operation of the company. They are in delegate power to some issues and
have responsibility to the director and the law in their appointed work.
+ Mr Cao Viet Cuong is the vice director who is responsible for the business
administration and production in the Southern provinces. He directly manages the
Ho Chi Minh office and the Daknong Tapioca Starch Processing factory

6


+ Mr Pham Vu Ha is the vice director who is responsible for market exploitation
and export-import activities in the Northern provinces. He also controls the
statistic and planning work of the company as well as supervises economic and
technical standards and estimates expenditure of signed contracts.
1.2.2 Administrative organizational department:
The manager of the department is Mr Mai Trong Phuong who graduated
from Hanoi National University. This department’s functions are assisting the

board of directors in the organization of the company, from professional
departments to other parts; making plans and figuring out methods of labor
payment; examining and urging the employees in the company; managing the
employment records; ensuring administrative activities of the company; The
department is also in charge of assisting the board of directors in arranging and
organizing labor allocation in the professional departments and other parts,
selecting staffs who have enough capacity and quality for positions required by the
demands of doing business and production of the company; paying social security
and medical insurance for employees in accordance with the stipulation of the law
and the real situation of the company.
1.2.3 Planning and export-import department:
The department is managed by Mr Phan Thanh Lam who graduated from
Hanoi National Economics University. This is the professional general
department, whose function is to assist the board of directors in keeping track of
the whole operation of the company and situation of member parts, so that the
director board can correctly build up the business and production plan for the
purpose of enhancing effectiveness and gaining benefits; synthesizing, analyzing
and forecasting the market of goods done business by the company and ensuring
the stable material resource for the factory. The department also draws up, and
submits the annual plan for the company to the director for approval. Another
important function of the department is to consult the director board to decide the

7


prices of goods bought and sold by the company and to sign and carry out exportimport contracts as well as liquidate them.
1.2.4The finance and accounting department:
The manager is Ms Tang Quynh Mai who graduated from Finance and
Accounting University. She is the Chief Accountant of the company. This
department’s function is to assist the director in mobilizing and effectively using

the capital sources in the most effective way. Besides keeping record of the
financial situation in the whole company, the department often has to report
correctly and adequately the business and production results under the control of
the director. The department also guides and consults accounting tasks to member
parts of the company and examines their financial reports; Another task of the
department is to allocate flows of goods, materials, and capital in order to meet the
demands of business and production as well as other unexpected requirements.
1.2.5 The purchasing department:
The head of the department’s name is Nghiem Xuan Thao, an Economic
Bachelor. The function of the department is to organize to buy, sell, deliver and
receive goods and products in accordance with the company’s plan. Besides that, it
can find, buy, sell various kinds of fertilizers and agricultural products buy itself at
the company’s stores.
*** The 5 above outlets (The board of directors, the administrative department,
the planning and export-import department, the finance and accounting
department, the purchasing department) are located in Hanoi Office of the
company with the total staff of 26 people.
1.2.6 Daknong Tapioca Starch Processing Factory:
The factory manager is Mr Ngo Tien Quang, 01 factory vice manager, 01
chief accountant, 01 head of the Personnel department, 01 manager of plant
technical part, 01 manager of material department. The total of employees of the
factory is 92.

8


1.2.7. Ho Chi
Minh city branch:
The chief of the office is Mr Nguyen Thai Bang, an Economic Bachelor. There
are 05 staff in this office.

1.2.8. The Central and West Plateau region branch:
The chief of the office is Mr Tran Phuong Minh graduated from Accounting
University, there are 05 employees in this office.
1.2.9. Mong Cai representative office:
The chief of the office is Mr Trinh Duc Long, an Economic bachelor, and there
are 03 employees working here.

9


CHAPTER 2: THE REAL SITUATION OF THE
HUMAN RESOURCE DEVELOPMENT IN AFORIMEX.
2.1 The human resource allocation in the company:
In order to have a general view of the human resource allocation in the
company, we can study the following table:
INDEX
DEPARTMENT
1. Director board
2. Administrative
department

University

Vocational

Manual

graduated

training level

labor

3

Total

3

4

2

6

3. Planning and
export-import

4

4

6

6

department
4. Finance and
accounting
department

5.Purchasing
department

6

1

7

3

29

2

3

5

1

2

3

6. Daknong Tapioca
Starch Processing

60

92

factory
7. Ho Chi Minh City
Branch
8. Mong Cai Branch

1
0


9. Central and West
Plateau Region

3

2

32

39

5

Branch
GRAND TOTAL

60

131

Table 2.1: AFORIMEX’s human resource allocation {The above material is
calculated in September 30th, 2008).
From the above figures, we can recognize that, the total employees of the
company is 131, the number of staff who have bachelor’s degree are 32,
accounting for approximately 24% of the staff, who have vocational training
certificate are 39, about 30%, the remaining are 60 manual labors, occupied 46%.
For the time being, there is no employee who has a master degree in the company
even in the board of directors and this is an issue that needs to be taken into
consideration in the human resource development policy of the company.
2.2 Current human resource policies:
2.2.1 Staff appraisal:
All employees in the company are judged monthly and the results are sent
to the administrative department, the results of judgment are used for calculating
the payment with approval of the director. The employment judgment is carried
out in accordance with the following standards:
2.2.1.1 Responsibility: ready to fulfill responsibility to complete assigned work
and other when needed
Level 1
Level 2
With
the Independently

Level 3
Often

Level 4
Level 5
-Always fulfill -Very effectively

leading and complete

independently

responsibility.

complete

-Actively

assigned work;

guiding
superior.

of assigned work complete
on their own.

assigned work complete work -When

1
1

needed,


and

others, which are out actively carry out

furthermore,

of

the work which are

ready to take responsibility
on extra work but

for

out

of

the responsibility but

when

interest of the for the interest of

required.

company and the
customers’.
Frankly

company,

- customers’

and

give the community.

constructive
comments

-Frankly give
to good advices to

colleagues

colleagues

with

when they are constructive
not

spirit.

responsible
enough.
2.2.1.2 Honesty: Reflecting correctly and fully real events, respecting and
protecting the truth.
Level 1
Level 2
Level 3
Not

Not
having Reflecting

Level 4
Reflecting

reflecting

their own point correctly

events.

of view when and having their events
reflecting

own

events.

view.

event correctly

point

Level 5
Not agreeing
with

actions

and that change or

of having point of hide the truth.
view

in Getting

high

accordance

confidence of

with

other people.

company’s
general ones.
2.2.1.3 Planning: having the ability to identify personal goals, target of market,
identify necessary steps to complete work, figure out necessary demand of
resources

1
2


Level 1
Level 2

Level 3
Level 4
Having no Able to identify Able to establish Establishing

Level 5
Establishing

ability

strategic goals

to necessary work personal goal in the

identify the to
results

do

and accordance with department’s

of achieve results department’s

their

when

having action

the superior.

the

goals, drawing department.

program, up the action Estimating

responsibilit goals put by having the best program
y.

of

method

and and

to estimating and controlling

achieve goals set. using the best, the

use

of

most

company’s

economical

resources

resources

to

to get the best

achieve the set results.
goal.
2.2.1.4 Problem solving: Skill of estimating, identifying and analyzing
problems, considering methods of problem solving, building up methods and
choosing the most suitable method to achieve goals. Carrying out and
controlling to ensure efficiency of method.
Level 1
Level 2
Level 3
Level 4
Solving
Able
to Having ability to Having
problems

participate

in negotiate

within their solving

related

responsibilit problems

consult

y under the relating

Level 5
Having

with capacity

to capacity

people, solve problems solve
the in

in problems

instruction

department’s

and

daily

work decisions.

customers and in

supervision

within

their

suppliers.

of

the responsibility.

very

internal difficult

to superior to make relations,
important

to

relations with internally, and
relations

with
customers,

superior.

suppliers, and

external

1
3


factors

that

can effect the
company.
2.2.1.5 Communication: Ability to exchange information, belief, emotion with
others in words, in writing, in gestures. The result is that receivers can get
exact understanding of the information from the sender
Level 1
Level 2
Level 3
Level 4
Level 5
Unable to Deliver
Having
the Having
the Using many
convey

information

messages

simply, but not simple

express

successfully

always can get communications

complicated

communicate

understanding.

ability to make ability

with

to methods

colleagues issues

to

to in

the

in company and colleagues and company and
customers.

customers

create

effectively
support

to supports from
and customers,

cooperation.

suppliers, and
public
opinion.

2.2.1.6 Creativity: Ability to come up with useful and feasible ideas for the
company
Level 1
Working

Level 2
Level 3
Level 4
Helping
to Applying internal Applying

Level 5
Creating new

under

improve

external

techniques,

instruction

working skills experiences,

advance

new

and

and

knowledge,

methods make the best of knowledge,

supervision. within
responsibility

the

procedures of

company’s experiences to work

present working improve

bringing

techniques,

better

methods
1
4

techniques,
and working

and

performance


procedures.

methods to get to
better

the

company.

efficiency.
2.2.1.7 Dynamism: Good adaptation to changes in working condition.
Level 1
Level 2
Level 3
Level 4
Level 5
Only being Able to deal
Able to adjust
Actively find
Quickly
able to

with changes in personal

work under

working

behaviors to cope knowledge

changes in

instruction

conditions

with different

when there are

micro, macro

and

within

situations in

changes in

environment

order to achieve

new policy of

as well as

personal goals.

the company.

internal one

Provide

and can adjust

immediate

strategic

support for

policy, action

supervision. responsibility.

out, self-equip

identify

other people in program in
changing

time.

situation.
2.2.1.8 Customer Care: Satisfying the demands of both internal (colleagues)
and external customers
Level 1
Level 2
Paying no
Having ability

Level 3

Actively

Level 4
Being able to

Level 5
Carefully

attention to

to satisfy

applying

analyze

paying

customers

demands of

different

demands of

attention to

within

customers

approaches to

customers, use

adopting

responsibilit within

satisfy diverse

efficiently

policies

y.

demands of

company’s

towards

customers within

resources to

customers’

responsibility.

meet those

satisfaction

demands and

and being able

able to make

to forecast

responsibility.

1
5


improvements

future needs

in the future.

of customers,
having
strategies to
deal with

them.

2.2.2 Payment policy :
2.2.2.1 Salary components
- Base on the features of business production, labor organization, the company has
stipulated payment to employees including:
+ Fixed salary: used to pay to indirect labors including managerial staff,
professional employees and others
+ Short term varied salary: paid to employees who are directly participated in
business production. This salary is dependent on the results of short-term
business production.
+ Long term varied salary: paid to employees who are indirectly participated in
business production and it is dependent on the results of long- term business
production.
- The payment employees receive includes 2 types of salary:
+ Basic salary: is paid to employees in accordance with Decision No 206/2005/
ND-CP promulgated on December 14th 2004, and Decision No 07/2005/TTBLDTBXH promulgated on January 5th 2005 by the Government.
+

Varied salary: is paid to employees and it is based on assigned work with

difficulties when carrying out; level of the final results of each employee; the
number of working days or working hours done by each employee and on the
results of business production. The varied salary is not dependent on the Decision
No 206/2005/ND-CP, but on a complicated system of coefficient of work done by
employees and business results.

1
6

2.2.2.2 Salary calculation
- The base of figuring the varied salary:
+ The varied salary is decided based on the contents, features and level of
accomplishing the assigned work, of job titles, and of each department’s business
planning.
+ When an employee is assigned a certain job title, and certain work, he or she
will get their correspondent varied salary. In special case, if an employee is asked
to do special work, for the purposes of business production, by the director,
his/her varied salary will be decided by the director.
- The base of figuring the fixed salary:
The company has paid the basic salary to employee in accordance with the
Decision No 206/2004/BD-CP.
- The resource of forming salary fund:
Based on the result of business production, the company has decided the real
salary fund including:
Vth = (Vdg * Dsxkd ) + Vpc + Vkh + Vdp
*Vth: Total of real salary fund.
*Vdg: Salary unit price (stipulated by the company based on result of
business)
*Dsxkd: Revenue from business activities.
*Vpc: Fringe benefit.
*Vkh: Salary fund from other business activities.
*Vdp: Reserved salary fund transferred from the previous year.
- The salary fund paid directly to employees (Vtt) including:
+ Short-term varied salary fund (V bd): used to pay to employees who belong to
direct business production.

1
7

+ Basic salary fund (Vcb): based on stipulated by the company.
+ The salary fund paid directly to employees (V tt) is calculated according to the
following formula:
Vtt = Vbd + Vcb
-

Time salary (TLtg) paid to employees who receive the time salary includes basic

salary (TLcb) and additional salary (TLbx), this is calculated as follows:
TLtg = TLcb + TLbx
+ The basic salary TLcb is calculated as follows
TLcb = TLmin x hiCi
Cd
 TLmin: the minimum salary stipulated in different periods of time by the
company.


hi

: The salary coefficient and fringe benefit of the employee “i”.

 Ci :The number of real working days with the job title of the employee “i”.
 Cd

: The number of stipulated working days

+ The short-term varied salary paid to employees who are indirectly involved in
business production (TLbd) calculated as follows:

TLbd =

 Vbd
 Cih tl bxki

 Vbd : short-term varied salary fund.


n : The number of employees who receive the time salary.

 htl bd : The short-term varied salary coefficient of the employee “i”.
 ki

: The coefficient that judges the level of accomplishing work of the

employee “i”. This coefficient is decided according to the company’s
monthly salary judgment minutes.
*** The table of short-term varied salary coefficient (h tl bd) of employees who are
indirect to business production:

1
8


BASIC SALARY
JOB TITLE/ POSITION

COEFFICIENT IN

LABOR CONTRACT

Director
5.65
Vice director
3.66
Chief accountant
3.23
Department manager
2.98
Department vice manager
2.50
Senior expert
4.57
Junior expert
2.26
Staff
1.0, 1.18, 1.22, 1.70
Table 2.1: Short-term varied salary coefficient

1
2
3
4
5
6
7
8

*** The standards of identifying the coefficient that judges the level of
accomplishing work (ki) of the employee “i” are stipulated as below:
+ Apply for the director board and department managers:

Level

Interpretation

Coefficient(ki)

- When an individual employee or his/her
department doesn’t accomplish assigned
work for the month.
Level 1

- Work less than 16 working days per

0,7

month.
- Not obey superior’s division of labor and
work.
- Accomplish assigned work for a certain
Level 2

month.

1,0

Level 3

- Work for from 16 to 20 days per month.
- Effectively accomplish assigned work for

1,2

a certain month or achieve from 101% to
105% of business production plan.

1
9


- Work for more than 21 days per month.
- Effectively accomplish assigned work as
Level 4

well as unexpected work arising or achieve

1,3

106%-110% business production plan.
- Accomplish very effectively assigned
work or:
Level 5

- Have good ideals to improve business
production

and

its

result

is

1,5

highly

appreciated.
+ Apply for the other ordinary staff in the company
Level
Level 1
Level 2
Level 3
Level 4

Level 5

Interpretation

Coefficient (ki)

Not accomplishing assigned work
Accomplishing assigned work
Accomplishing rather well assigned work
Accomplishing well assigned work and
taking over sudden work arising in month.
Accomplishing very well assigned work and
having ideal to improving work and its

0,7

1,0
1,2
1,3

1,5

result is highly appreciated,
- Short-term varied salary paid to employees who are directly involved in business
production:
Salary of employees who are directly involved in business production is paid
based on work quality, work efficiency that is achieved by each employee. Salary
payment coefficient is based on the level of contribution to work accomplishment
of each employee and is classified as A, B, C, etc and it is negotiated in
department and decided by department managers:

2
0