Luận văn Chiến lược Quản trị nguồn nhân lực tại công ty Moto Yamaha Việt Nam

XÂY DỰNG CHIẾN LƯỢC QUẢN TRỊ NGUỒN NHÂN LỰC CHO CÔNG
TY MOTO YAMAHA VIỆT NAM GÓP PHẦN THÀNH CÔNG CHO CHIẾN
LƯỢC CÔNG TY
SETTING UP A HUMAN RESOURCE MANAGEMENT STRATEGY FOR
YMVN, EXPECTING TO CONTRIBUTE TO THE SUCCESS OF THE
COMPANY STRATEGY

PREAMBLE
Reason for choosing the subject:
Today, the modern business environment has been making the strictest challenges of
all in comparison with what the businesses used to cope with. Each change in the
business environment make further pressure so that the businesses must change,
initiatively get familiar with new technologies, new products, new services to meet
the higher and higher demand of the customers. The added value of the improvement
in defining competition advantage requires the organizations to attract, train and
maintain the amount of staffs with best quality. As time go by, and despite the
change in the environment, the people in the organization themselves have to create
the ability to maintain the competition advantage. In the past, strategic competition
advantage may be reached through seeking better environment, receiving cheaper
finance sources or marketing new products, or discover new technologies which have
not ever been known about. Beside the work of approaching cheaper capital
resources, products of higher quality, new technology, since the late 1990s, the
change in business environment has set up many more requirements, which focus
more on the factor of human resource. This fact requires new approach to human
resource management, in which the business must have strategies on human resource
management, or, human resource management in strategic direction.

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Human resource strategy plays a very important role in the success of the overall

strategic target of a business. It contributes to the success of the company on the
aspects of: work quality, ability to renovate, productivity, etc. These are key factors
bringing success to the enterprise. However, not every enterprise can succeed in
planning and building up strategies on human resource. Success or failure also
depends on the appropriation of the strategy with the vision. The question is that:
how to have a human resource strategy appropriate with the general strategy of the
enterprise.
Yamaha Motor Vietnam Company Limited (YMVN) is one of the major enterprises
operating in producing motors in Vietnam market. In competing with the other
enterprises in Vietnam, the Company has to suffer from a huge competition pressure
from such competitors as Honda, Suzuki, SYM, etc. The Company also has to make
a strategy for itself. As a functional department which takes charge of Human
resource management, Personnel Department also needs to build up an appropriate
strategy, meeting the requirements of production, catching the development of the
enterprise and help the enterprise achieve the targets set up.
The Group chose the subject: Setting up a Human Resource Management Strategy
for YMVN, expecting to contribute to the success of the Company strategy.
The target of the research:
Basing on the knowledge obtained through many subjects, especially the subject
Strategy and Human resource Management, the whole group has set up a Human
Resource Management Strategy for YMVN. There are many issues mentioned on
Human resource Management: recruitment, training, assessment, wages, etc. and
according to the procedure of building strategy, the group has given an overall
human resource strategy for the Company to ensure:
• The Company has assigned correct work to correct persons
• The Company has personnel with good skills, having good opinions
and attitude in work

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• The staffs and officers working here all have chance to develop in
their occupation

Researching method
The methods applied in the subject include:
Study through documents and books to have theoretic analysis on building strategies
in general and in building human resource strategy in detail.
Besides, research practically and compare to have reasonable arguments and
effective proposals for building human resource strategies. The group has asked for
consultancy by some experts in the field of human resource management who lecture
or work on the field:
1/ Ass. Prof.. Dr. Vu Hoang Ngan – Lecturer in Economics and Human
resource Development Faculty of National Economy University
2/ Mrs. Nguyen Thi Huyen Chi – HR General Manager - Ford Vietnam
Limited.
3/ Mrs. Dinh Nhu Quyen – HR Manager - Toyota Vietnam Company
4/ Mr. Nguyen Van Lam – Former HR Manager - Panasonic Electronic
Vietnam Company
We have together discussed to find the answer which strategy should be carried out
first, which one should follow, what is the priority order? The assessment and
priority settings are based on our results of meeting with company leaders and
experts from specialized field. Experts and business leaders as well have the common
opinion: the threats and weakness of business should be preferably solved firstly;
they are red alerts which the company needs to put at top priority. The next priority is
the strategies for taking advantages and upholding the company’s strength. And to
have an overall assessment, the scorecard for all strategies should be set for favorable
comparison and selection.

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-

Award of 1 point for each strategy which eliminates one threat or improves
one weak point of the company.

-

Award of 0.5 point for each strategy which takes advantage or upholds one
strong point of the company.

The total score of the strategy shows its efficiency to affect and support business
strategies as well as its importance against company’s matters.
Project structure:
Beside the preamble, conclusion, list of references, the report includes 3 chapters:
Chapter I: Theory review to set up a Human Resource Management Strategy
Chapter II: Setting up a Human Resource Management Strategy in Yamaha Motor
Vietnam Co., Ltd.
Chapter III: Solutions to implement Human Resource Management Strategy at
Yamaha Motor Vietnam Co., Ltd.



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CHAPTER I
THEORY REVIEW TO SET UP
A HUMAN RESOURCE MANAGEMENT STRATEGY

In this chapter, we examine the strategic management & strategic human resource
management. This chapter also examines whether it is possible to speak of different
‘models’ of HR strategy and the degree to which these types of HR strategy
systematically vary between organizations. As for the question of whether there is a
positive association between different HR strategies and organizational performance,
we are of the opinion that, given the importance and volume of the research
surrounding this issue, the topic warrants an extended discussion. In the chapter, we
address a number of questions, some essential to our understanding of what the
specific meanings of strategic management & strategic human resource management
are, how to manage the strategy, which levels of strategy there are…
1.1 Strategic management:
1.1.1 Specific meaning of strategic management:

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The word ‘strategy’, deriving from the Greek noun strategies, meaning
‘commander in chief’, was first used in the English language in 1656. The
development and usage of the word suggests that it is composed of stratus (army)
and agein (to lead). In a management context, the word ‘strategy’ has now
replaced the
pattern of

more traditional term – ‘long-term planning’ – to denote a specific
decisions and actions undertaken by the

upper echelon of the

organization in order to accomplish performance goals. Somebody defines strategic

management as ‘that set of managerial decisions and actions that determines the
long-run performance of a corporation’. The others take a similar view when they
define strategy as ‘an action a company takes to attain superior performance’ (14,
P.38-39). Generally:
Strategic management is a coordinated series of actions which involve the
deployment of resources to which one has access for the achievement of a given
purpose
1.1.2 Process of strategic management:
In the descriptive and prescriptive management texts, strategic management appears
as a cycle in which several activities follow and feed upon one another. The
strategic management process is typically broken down into five steps:
1. mission and goals
2. environmental analysis
3. strategic formulation
4. strategy implementation
5. strategy evaluation.
Figure 1.1 illustrates how the five steps interact. At the corporate level, the
strategic management process includes activities that range from appraising the
organization’s current mission and goals to strategic evaluation.

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The first step in the strategic management model begins with senior managers
evaluating their position in relation to the organization’s current mission and
goals. The mission describes the organization’s values and aspirations; Goals are the
desired ends sought through the actual operating procedures of the organization and
typically describe short-term measurable outcomes.
Environmental analysis

looks

at the

internal organizational strengths and

weaknesses and the external environment for opportunities and threats. The factors
that are most important to the organization’s future are referred to as strategic
factors and can be summarized by the acronym SWOT – Strengths, Weaknesses,
Opportunities and Threats.

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Strategic formulation involves senior managers evaluating the interaction between
strategic factors and making strategic choices that guide managers to meet the
organization’s goals. Some strategies are formulated at the corporate, business
and specific functional levels. The term ‘strategic choice’ raises the question of
who makes decisions and why they are made. The notion of strategic choice also
draws attention to strategic management as a ‘political process’ whereby decisions
and actions on issues are taken by a ‘power-dominant’ group of managers within
the organization. Child affirms this interpretation of the decision-making process
when he writes: When incorporating strategic choice in a theory of organizations,
one is recognizing the operation of an essentially political process, in which
constraints and opportunities are functions of the power exercised by decisionmakers in the light of ideological values.
Strategy implementation is an area of activity that focuses on the techniques used
by managers to implement their strategies. In particular, it refers to activities that

deal with leadership style, the structure of the organization, the information and
control systems, and the management of human resources. Influential management
consultants and academics emphasize that leadership is the

most important and

difficult part of the strategic implementation process.
Strategy evaluation is an activity that determines to what extent the actual change
and performance match the desired change and performance.
The strategic management model depicts the five major activities as forming a
rational and linear process (14, P.39-41).
1.1.3 Hierarchy of strategy
Another aspect of strategic management in
organization concerns the

the

multidivisional business

level to which strategic issues apply. Conventional

wisdom identifies different levels of strategy – a hierarchy of strategy (Figure 1.2):
1. corporate
2. business

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3. functional.
Corporate-level strategy

Corporate-level strategy describes a corporation’s overall direction in terms of its
general philosophy towards the growth and the management of its various business
units. Such strategies determine the types of business a corporation wants to be
involved in and what business units should be acquired, modified or sold. This
strategy addresses the question, ‘What business are we in?’ Devising a strategy for
a multidivisional company involves at least four types of initiative:
 Establishing investment priorities and steering corporate resources into
the most attractive business units
 Initiating actions to

improve the

combined performance of those

business units with which the corporation first became involved
 Finding ways to improve the synergy between related business units in
order to increase performance
 Making decisions dealing with diversification.

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Business-level strategy
Business-level strategy deals with decisions and actions pertaining to each business
unit, the main objective of a business-level strategy being to make the unit more
competitive in its marketplace. This level of strategy addresses the question, ‘How
do we compete?’ Although business-level strategy is guided by ‘upstream’,

corporate-level
business

strategy,

unit

management

must craft a strategy that is
appropriate

for

its

own

operating situation. In

the

1980s, Porter (1980, 1985)
made

a

significant

contribution

to

our

understanding of

business

strategy by
framework

formulating a
that

described

three competitive strategies: cost leadership, differentiation and focus.
The low-cost leadership strategy attempts to increase the

organization’s market

share by having the lowest unit cost and price compared with competitors. The
simple alternative to cost leadership is differentiation strategy. This assumes that
managers distinguish their services and products from those of their competitors in
the same industry by providing distinctive levels of service, product or high
quality such that the customer is prepared to pay a premium price. With the focus
strategy, managers focus on a specific buyer group or regional market. A market
strategy can be narrow or broad, as in the notion of niche markets being very
narrow or focused. This allows the firm to choose from four generic businesslevel strategies – low-cost leadership, differentiation, focused differentiation and

focused low-cost leadership – in order to establish and exploit a competitive
advantage within a particular competitive scope (Figure 1.3) (14, P.41-43).

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Functional-level strategy
Functional-level strategy pertains to the major functional operations within the
business

unit, including research and development, marketing, manufacturing,

finance and HR. This

strategy level

is typically primarily concerned with

maximizing resource productivity and addresses the
support

the

question, ‘How

do

we

business-level competitive strategy?’ Consistent with this, at the

functional level, HR policies and practices support the business strategy goals.
These three levels
hierarchy of

of strategy – corporate, business and functional – form a

strategy within large

multidivisional corporations. In

corporations, the specific operation of the

different

hierarchy of strategy might vary

between ‘top-down’ and ‘bottom-up’ strategic planning. The top-down approach
resembles a ‘cascade’
dependent on

in which the

‘downstream’ strategic decisions are

higher ‘upstream’ strategic decisions. The bottom-up approach to

strategy- making recognizes that individuals ‘deep’ within the organization might
contribute to strategic planning. Strategic management literature emphasizes that the
strategies at different levels must be fully integrated.

The need to integrate business strategy and HRM strategy has

received much

attention from the HR academic community, and it is to this discourse that we now
turn (14, P.39-44).
1.1.4. Some tools of strategic analysis:
The bellows are some about the analyzing the strength of businesses' position and
understanding the important external factors that may influence the position. The
process of Strategic Analysis can be assisted by a number of tools, including:
a/ SWOT analysis:
The vision of a company will rarely, if ever, change. However companies exist in a
constantly changing environment, and are themselves constantly changing. Thus,
despite the constancy of the vision, change must also be monitored and even
harnessed for business success to be possible.

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As we saw in the introductory example, therefore, one can hardly get to the shortterm action stage of strategy without knowing your internal strengths and weaknesses
and external opportunities and threats. You need to understand yourself and your
environment, and so do companies. A SWOT analysis is therefore the next part of
strategic management. It involves scanning the external environment for
opportunities and threats and the internal environment for strengths and weaknesses.
This can be done for long, medium and short term time frames, leading to different
levels of planning.
Please distinguish between a strength and an opportunity, and between a weakness
and a threat. The difference is in the source of the thing being scanned. If it stems
from some aspect of the organization, it is a strength or weakness. If it involves
something coming from outside of the organization, then it is an opportunity and a

threat. They can seem confusing and inseparable. For example, legislation has been
passed requiring companies to undertake a certain level of affirmative action. This is
an external event, possibly involving aspects both of opportunity and threat. As
regards the internal capability for compliance, one organization may find it easy to
comply. Their ability to comply (perhaps they already have a multicultural
workforce, which is in this case a strength) nullifies any threat from the legislation.
Do you see how internal and external factors interact? In fact, their alreadyheterogeneous workforce may even turn the legislation into an opportunity!
Another company, however, may find that it has internal weaknesses in this regard
because it has a very homogenous workforce and a bad reputation among previously
disadvantaged communities, making it difficult to recruit. The legislation will be
more of a threat than an opportunity for the time being. The workforce is in this case
a weaknesses, related to the threat but not stemming from the threat. The affirmative
action legislation did not cause the lack of diversity, it merely turned it into a
weakness. Although the internal and external factors interact, they are not the same.
For the organization as a whole, the external environment includes factors such as the
economy (interest rates, exchange rates, inflation, productivity, globalization,

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potential recessions etc), the labour market (for example, we have high levels of
unemployment, labour surplus, global labour markets and skills retention, inflexible
labour markets, impact of aids and rising health costs), technology (is the business
capital vs. labour intensive, how much information technology is required etc), the
socio-political and cultural environment (looks at the attitudes, beliefs, values, norms
and behavior associated with a given geographic area, how diverse a particular
society is and the impact of diversity management, government action such as
legislation) etc…
The internal environmental analysis involves an audit of all internal policies and
procedures. In so doing, the quality and quantity of resources available are assessed.

There are hundreds of resources looked at in the corporate strategy, including:
•

skills and ability levels of the workforce

•

relationship between labour and management

•

finance

•

brand equity

•

company image

•

product portfolio

•

etc (again, there are hundreds!)

Once the company knows its environments (which is an ongoing process), it is in a

position to make more specific strategies for the company. Remember however that
these are always strongly based upon the more general but central core ideology and
envisaged future. Also, it is wise to note that you can’t always have all the
information you need - sometimes, you just have to go ahead (11, P.14-16).
b/ Value chain analysis:
The value chain is a systematic approach to examining the development of
competitive advantage. It was created by M. E. Porter in his book, Competitive
Advantage (1980). The chain consists of a series of activities that create and build

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value. They culminate in the total value delivered by an organization. The 'margin'
depicted in the diagram is the same as added value. The organization is split into
'primary activities' and 'support activities (Figure 1.4).

Figure 1.4: Value chain of M.E.Porter (1985)
Source:
Primary Activities.
Inbound Logistics.
Here goods are received from a company's suppliers. They are stored until they are
needed on the production/assembly line. Goods are moved around the organization.
Operations.
This is where goods are manufactured or assembled. Individual operations could
include room service in an hotel, packing of books/videos/games by an online
retailer, or the final tune for a new car's engine.
Outbound Logistics.
The goods are now finished, and they need to be sent along the supply chain to
wholesalers, retailers or the final consumer.
Marketing and Sales.

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In true customer orientated fashion, at this stage the organization prepares the
offering to meet the needs of targeted customers. This area focuses strongly upon
marketing communications and the promotions mix.
Service.
This includes all areas of service such as installation, after-sales service, complaints
handling, training and so on.
Support Activities.
Procurement.
This function is responsible for all purchasing of goods, services and materials. The
aim is to secure the lowest possible price for purchases of the highest possible
quality. They will be responsible for outsourcing (components or operations that
would normally be done in-house are done by other organizations), and Purchasing
(using IT and web-based technologies to achieve procurement aims).
Technology Development.
Technology is an important source of competitive advantage. Companies need to
innovate to reduce costs and to protect and sustain competitive advantage. This could
include production technology, Internet marketing activities, lean manufacturing,
Customer Relationship Management (CRM), and many other technological
developments.
Human Resource Management (HRM).
Employees are an expensive and vital resource. An organization would manage
recruitment and selection, training and development, and rewards and remuneration.
The mission and objectives of the organization would be driving force behind the
HRM strategy.
Firm Infrastructure.
This activity includes and is driven by corporate or strategic planning. It includes the

Management Information System (MIS), and other mechanisms for planning and

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control such as the accounting department
(20, />Value chain analysis can be broken down into a three sequential steps:
(1) Break down a market/organization into its key activities under each of the
major headings in the model;
(2) Assess the potential for adding value via cost advantage or differentiation,
or identify current activities where a business appears to be at a competitive
disadvantage;
(3) Determine strategies built around focusing on activities where competitive
advantage can be sustained
(20, />c/ Five forces model:
An industry is a group of firms that market products which are close substitutes for
each other (e.g. the car industry, the travel industry).
Some industries are more profitable than others. Why? The answer lies in
understanding the dynamics of competitive structure in an industry.
The most influential analytical model for assessing the nature of competition in an
industry is Michael Porter's Five Forces Model, which is described below:
Porter explains that there are five forces that determine industry attractiveness and
long-run industry profitability. These five competitive forces are
- The threat of entry of new competitors (new entrants)
- The threat of substitutes
- The bargaining power of buyers
- The bargaining power of suppliers
- The degree of rivalry between existing competitors

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Threat of New Entrants
New entrants to an industry can raise the level of competition, thereby reducing its
attractiveness. The threat of new entrants largely depends on the barriers to entry.
High entry barriers exist in some industries (e.g. shipbuilding) whereas other
industries are very easy to enter (e.g. estate agency, restaurants). Key barriers to
entry include:
- Economies of scale
-

Capital

/

investment

requirements

Figure 1.5: Five forces analysis

- Customer switching costs
-

Access

to

Source:

industry

distribution channels
-

The

likelihood

of

retaliation from existing industry
players (Figure 1.5).
Threat of Substitutes
The presence of substitute products can lower industry attractiveness and profitability
because they limit price levels. The threat of substitute products depends on:
- Buyers' willingness to substitute
- The relative price and performance of substitutes
- The costs of switching to substitutes
Bargaining Power of Suppliers
Suppliers are the businesses that supply materials & other products into the industry.
The cost of items bought from suppliers (e.g. raw materials, components) can have a
significant impact on a company's profitability. If suppliers have high bargaining

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power over a company, then in theory the company's industry is less attractive. The
bargaining power of suppliers will be high when:
- There are many buyers and few dominant suppliers

- There are undifferentiated, highly valued products
- Suppliers threaten to integrate forward into the industry (e.g. brand
manufacturers threatening to set up their own retail outlets)
- Buyers do not threaten to integrate backwards into supply
- The industry is not a key customer group to the suppliers
Bargaining Power of Buyers
Buyers are the people / organizations who create demand in an industry
The bargaining power of buyers is greater when
- There are few dominant buyers and many sellers in the industry
- Products are standardized
- Buyers threaten to integrate backward into the industry
- Suppliers do not threaten to integrate forward into the buyer's industry
- The industry is not a key supplying group for buyers
Intensity of Rivalry
The intensity of rivalry between competitors in an industry will depend on:
- The structure of competition - for example, rivalry is more intense where there
are many small or equally sized competitors; rivalry is less when an industry has a
clear market leader
- The structure of industry costs - for example, industries with high fixed costs
encourage competitors to fill unused capacity by price cutting

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- Degree of differentiation - industries where products are commodities (e.g.
steel, coal) have greater rivalry; industries where competitors can differentiate their
products have less rivalry
- Switching costs - rivalry is reduced where buyers have high switching costs i.e. there is a significant cost associated with the decision to buy a product from an
alternative supplier
- Strategic objectives - when competitors are pursuing aggressive growth

strategies, rivalry is more intense. Where competitors are milking profits in a mature
industry, the degree of rivalry is less
- Exit barriers - when barriers to leaving an industry are high (e.g. the cost of
closing down factories) - then competitors tend to exhibit greater rivalry (20,
/>d/ PEST analysis:
PEST analysis is concerned with the environmental influences on a business.
The acronym stands for the Political, Economic, Social and Technological issues that
could affect the strategic development of a business.
Identifying PEST influences is a useful way of summarizing the external
environment in which a business operates. However, it must be followed up by
consideration of how a business should respond to these influences (20,
/>The table below lists some possible factors that could indicate important
environmental influences for a business under the PEST headings (Table 1.1).
Table 1.1: PEST analysis.
Source: />
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Those above are some tools of analysis for strategies. For Human Resource, as a
functional one, how to build it, we can do by starting with the next.
1.2. Process to set up Human Resource Management Strategy:
1.2.1 Specific meaning of Strategic Human Resource Management
The SHRM literature is rooted in ‘manpower’ (sic) planning, but it was the work
of influential management gurus affirming the

importance of the

effective

management of people as a source of competitive advantage, that encouraged

academics to develop frameworks emphasizing the strategic role of the HR
function and attaching the

prefix

‘strategic’ to

the

term ‘human resource

management’. Interest among academics and practitioners in linking the strategy

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concept to HRM can be explained from both the ‘rational choice’ and the
‘constituency-based’ perspective. There is a managerial logic in focusing attention
on people’s skills and intellectual assets to provide a major competitive advantage
when technological superiority, even once achieved, will quickly erode. From a
‘constituency-based’ perspective, it is argued that HR academics and HR
practitioners have embraced SHRM as a means of securing greater respect for HRM
as a field of study and, in the case of HR managers, of appearing more ‘strategic’,
thereby enhancing their status within organizations (Figure 1.6) (14, P.45).
Strategic human resource management is the process of linking the human resource
function with the strategic objectives of the organization in order to improve
performance (14, P37).

1.2.2. Steps in setting up Human Resource Management Strategy
The organization as a whole will have an overall strategic plan, usually formulated

by the top management team. Each of the organization’s parts (departments or
divisions) must both have input into that plan, as well as being shaped by the plan.
Thus HR must have a significant input into the overall strategy (factors involving
people such as skills levels are, after all, significant strengths or weaknesses). Thus
HR has impact at the strategy formulation stage (11, P.5)

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Besides, a comprehensive Human Resource Management Strategy plays a vital role
in the achievement of an organization's overall strategic objectives and visibly
illustrates that the human resources function fully understands and supports the
direction in which the organization is moving. A comprehensive HRM Strategy will
also support other specific strategic objectives undertaken by the marketing,
financial, operational and technology departments (20, ). In
turn, once a broad corporate strategy has been articulated, the HR function will be an
integral part of the implementation of that strategy. Thus the HR strategy must line
up with the corporate strategy (11, P5). This can be seen in the diagram below
(Figure 1.7).
The diagram shows us, in just the same way a business requires a marketing or
information technology strategy it also requires a human resource strategy to support

External competitive environment

Input

Corporate
strategy

Input

formulation
HR
strategy

Corporate
strategy
implementation

Divisional
strategies

Evaluation (Measurement etc)

Figure 1.7: Diagram of strategy & HRM

Source: Strategy and HRM (Gregory John Lee)
In developing such a HR strategy two critical questions must be addressed.

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Other functions

HR FUNCTION

corporate strategy.


• What kinds of people do we need to manage and run the business to
meet the strategic business objectives?

• What people programs and initiatives must be designed and
implemented to attract, develop and retain staff to compete effectively?
In order to answer these questions four key dimensions of an organization must be
addressed. These are:
o Culture: the beliefs, values, norms and management style of the
organization
o Organization: the structure, job roles and reporting lines of the
organization
o People: the skill levels, staff potential and management capability
o Human resources systems: the people focused mechanisms which
deliver the strategy - employee selection, communications, training,
rewards, career development, etc.
Frequently in managing the people element of their business senior managers will
only focus on one or two dimensions and neglect to deal with the others. Typically,
companies reorganize their structures to free managers from bureaucracy and drive
for more entrepreneurial flair but then fail to adjust their training or reward systems.
When the desired entrepreneurial behavior does not emerge managers frequently
look confused at the apparent failure of the changes to deliver results. The fact is that
seldom can we focus on only one area. What is required is a strategic perspective
aimed at identifying the relationship between all four dimensions.
If we require an organization which really values quality and service we not only
have to retrain staff, we must also review the organization, reward, appraisal and
communications systems.
The pay and reward system is a classic problem in this area. Frequently organizations
have payment systems which are designed around the volume of output produced. If

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