Xây dựng chiến lược nguồn nhân lực tại công ty cổ phần citicom

LUÂN VĂN

Xây dựng Chiến lược Nguồn Nhân Lực tại công ty Cổ phần CitiCom

BUILDING HUMAN RESOURCES STRATEGY AT CITICOM
COMMERCIAL JOINT STOCK COMPANY

ACKNOWLEDGEMENT
Through research results and completion of this assignment under Strategic
Management subject, we have gained useful knowledge, valuable lessons which
help us to supplementing new knowledge, science research methods associated
between theory and practices. Knowledge and methods that we achieved from
subjects of the Program Master of International Business Administration has helped
us very much to complete this assignment as well as to settle our tasks in near
future.

1


TABLE OF CONTENTS
LUÂN VĂN......................................................................................................................................1
BUILDING HUMAN RESOURCES STRATEGY AT CITICOM COMMERCIAL JOINT
STOCK COMPANY.......................................................................................................................1
ACKNOWLEDGEMENT..............................................................................................................1
SYMBOL AND ABBREVIATIONS LIST....................................................................................3
TABLE LIST...................................................................................................................................4
LISTS OF FIGURES, CHARTS....................................................................................................5
FOREWORDS.................................................................................................................................5
CHAPTER I
BASIS OF METHODOLOGY OF BUILDING HUMAN RESOURCE STRATEGY
..........................................................................................................................................................8

CHAPTER 2..................................................................................................................................27
BULDING HUMAN RESOURCE STAGEGY AT CITICOM.................................................27
CHAPTER III................................................................................................................................64
SOLUTIONS OF IMPLEMENTING HUMMAN RESOURCES STRATEGY IN CITICOM
........................................................................................................................................................64
CONCLUSION..............................................................................................................................87
REFERENCE................................................................................................................................88

2


SYMBOL AND ABBREVIATIONS LIST

- HR: Human resources
- BOD: Board of directors
- BOM: Board of managers

3


TABLE LIST
Table
Table 1.1:
Table 1.2:

Contents
SWOT matrix analysis of the company
Evaluation of implementation order of the strategy by

Table 2.1:

Table 2.2:
Table 2.3:
Table 2.4:
Table 2.5:
Table 2.6:
Table 2.7:

GREAT matrix
Capital contribution ratio of Citicom’s founders
Business performance report from 2006 to 2008
Summary of real situation in Citicom’s labor
Some new active projects in 2009
SWOT Analysis of Citicom
Summarizing Table of SWOT Matrix Analysis
Selecting order of implementing strategy

Page
27
28
31
36
38
49
55
62
68

4

LISTS OF FIGURES, CHARTS
List
Figure 1.1:
Figure 1.2:
Figure 1.3:
Chart 2.1:
Chart 2.2:
Chart 2.3:
Chart 2.4:
Chart 2.5:
Chart 2.6:
Chart 2.7:
Chart 2.8:

Contents
Process to formulate strategies
External environmental factors
The decisive factors of industry competition
Labor structure by labor asssignment
Labor structure by gender
Labor structure by educations
Labor structure by professional qualifications
Labor structure by age
Labor structure by working experience
Fluctuating world ingot, ingot steel imported into Vietnam
and the domestic price
Constructive steel production and consumption in the first
6 months in 2009

Page

21
28
31
40
40
41
42
42
43
46
47

FOREWORDS
Why choose this topic:
Human resources is an essential issue and is one of key points of production
forces. Manpower is basic decision because it answers the question: Who
manufacture and operate machinery and technology?, Who create products, values?
5


When the economy is growing, investment and business, speed dial quickly,
technology is modern, production methods is innovative, social production level is
rapidly transferring from the automatic economy to the knowledge economy. Those
require higher and higher quality workforce. Human resources not only meet
quantity issue but also ensure quality of production forces. And human resources
can self-activate and develop itself besides production.
Therefore human resources management is very important to the existence and
development of enterprises. One of the duties of Human Resource Management is
to build human resources strategy. Human resources strategy decides success of
business strategy and company strategy. Most of failures in business and personnel

management are due to lack of a true Human Resources strategy or lack of proper
implementation. Building human resources strategy brings business more practical
benefits:
- Define clear goals for each stage of enterprises’ business; help enterprises
find clear directions in the future to reach set targets.
- Assist the business managers, human resource managers to see clearly the
opportunities and challenges from outside, the real situation, strengths and
weaknesses of enterprises; forecast changes in the future to have the active
measures to deal with new environment.
- Human resources strategy helps enterprises exploit and use up their human
resources; maximize the power of enterprises to development.
- Helps enterprises increase the cohesion and consensus between staff and
leaders in implementing company’s common objectives.
- Helps enterprises increase labor productivity, increase administrative
efficiency; avoid risk and increase prevention and stopping difficulties happening to
enterprises.
Study methods:
Study methods which were applied in this topic are as following:

6


Research through documents and books about theory analysis of building
strategies in general and human resources strategy in particular.
In addition, our group also conducts a practical research at Citicom and use the
comparison method to have rational basis for building human resources strategy.
Also, we are consulted by some experts in human resources management field,
experienced lecturers in human and economics issues and people working in field of
human resources
Objective study:

Through the study of theory, the real situation of the company and proposing
solutions to build human resources strategy for Citicom, our group wishes:
- Applying the theory to practical activities of enterprises, especially small and
medium sized enterprises;
- All members of the group gain additional knowledge of advanced science
research methods and especially all members of the group can apply the research to
handle work in organizations that we are working at.
- Leaders of Citicom’s Board of Directors has have overview, the latest status
of real situation of human resources at the company.
And finally, through the group's research results, the company has gained
valuable and practical human resources strategy.
Topic:
“BUILDING HUMAN RESOURCES STRATEGY AT CITICOM
COMMERCIAL JOINT STOCK COMPANY”
- Structure subject:
Beside forewords, conclusion, reference list, the assignment include 3 parts as
following:
Chapter I: Basis of methodology of building human resources strategy
Chapter II: Building human resources strategy at Citicom
Chapter III: Human resources solutions at Citicom

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CHAPTER I
BASIS OF METHODOLOGY OF BUILDING HUMAN RESOURCE
STRATEGY
1.1. Some basic issues of human resources
1.1.1. The concept of human resources
Human resources is referred to "full professional level which people are

accumulating and able to bring income in the future (Beng, Dornhusch & Fischer,
1995). Human resources, according to Pro.Pham Minh Hac (2001) is the overall
potential labor of a country or a local willing to join a job somehow.
As defined by the United Nations, human resources is the level of skilled,
knowledge and capabilities of all human life on the reality or potential for social economic development in a community.
Human resources, on narrow meaning and to be countable in planning is
defined a part of population in Vietnam. Based on that, some of Vietnamese
scientists specified that human resources or resource of human consists labor force
and labor reserves. The labor force is defined as working labor and people in
working age willing to work but got no job (the unemployed). Labor reserves
include students in the working age, people in working age but not in need of labor.
When mentioning about human resources, we talk about the level, structure,
capability of meeting the requirements of labor market. Quality of human resources
reflects in the level of knowledge, skills and attitudes of labor. The classification of
human resources by industries, fields (industry, agriculture, services) are very
popular in our country today. But when switching to the knowledge economy, labor
classification by accession in their job, career will be more suitable. So, we can
classify workforce into five categories: knowledge labor, management labor, data
labor, services labor and production labor. Each type has its different contribution to
the creation of products. Concentration of knowledge and intelligence high or low
in labor product depends mainly on the contribution of knowledge labor,
8


management labor and partially of data labor in our country. The proportion of noninformed labor is very high in the structure of labor force, so product contains low
intelligence. In order to increase competitiveness in international markets, ratio of
intelligence in the goods need to be stimulated in the near future.
1.1.2. Characteristics of human resources in commercial enterprises
In three basic elements of all business processes of enterprises, human and
their activities (employees) are the most important factor. Not only the

manufacturing sector requires physical labor demand but circulation of goods also
requires this to circulate goods from production areas to consumption areas. As the
momentum of development, advancement of social production forces, circulations
of goods is expanding and ensuring more and more full, timely, synchronous and
civilized goods for consumption. Hence, this requires labor force in business sector
to be increased. This is essential force of the whole social activities. This type of
labor plays a role of transferring goods from production areas to consumption areas.
Increasing or decreasing of the proportion of this type of labor depends on the
development of production forces in society, labor productivity, the management
mechanism of the national economy.
Like workers in material producing enterprises and one in commercial
business take an important position and characteristic in the process of business
activities of enterprises.
The first, labor in commercial enterprises is one of three basic elements and
moreover key factor of business activities. Without people with specific level of
profession, technical profession, the whole machine enterprise couldn’t operate it.
Elements of capital, assets are only necessary conditions for the process of business
activities to be done.
The second, labor in commercial enterprises which is a key factor creates new
value. Improving labor productivity in commercial enterprises that is the basic
reason, determine business efficiency of the enterprise. Scale profit, profit growth of
the enterprise depends mainly on management workforce of the enterprise.
9


The third, working efficiency in commercial enterprises is also limitedly
influenced by factors such as working time, physical, intellectual and other
psycho physiological factors.
However, because of particular characteristics of commercial enterprises,
labor here has specific characteristics. Those don’t perform the function of creating

new products but primarily perform the function of transforming morphological
value of the product. It is the one who buy goods to do business in order to meet the
needs of production and consumption. In other words, labor in commercial
enterprises performs services for manufacturers and consumers. Labor in this area is
performing the function to continue production process in goods circulation stage,
performing the function of original circulation, moving product from the seller (the
producer and business) to households (units individual consumer, other commercial
business).
Studying above mentioned characteristics of labor in commercial enterprises is
very important to develop human resource strategies, planning salary policy
working regimes, recruitment, training policy and developing human resources ... in
commercial enterprises.
1.2. Basic issues of strategy
1.2.1. Concept of strategy and human resources strategy
In competitive world, sometimes it’s wondered why some companies succeed
but others fail? In fact, each enterprise has their way to survive and grow. To find
out how companies in different sectors, with various conditions and circumstances,
the development of strategies how to win competitive advantage we must
understand the concept of strategy first.
According to the traditional way, strategy is defined as follows: "Strategy is
the study to find a competitive suitable position in an industry, a scope where
competitive activities are taking place.” by Michael Porter “Strategy, in his point of
view emphasizes to competitiveness corner”1. According to Alfred Chandler2
1
2

Porter,M.E. (1981). The contribution of Industrial Organization to Strategic Management. New York: Wiley.
(June, 10, 2009)

10

"Strategy is the determination of the fundamental goals in long-term of companies,
the action plan with the allocation of necessary resources to achieve those goals.
James Quinn of the Darmouth University defines: "Strategy is a sample or plan of
an organization to coordinate the decisive targets, policies and order of actions in a
overall unity”3.
Building strategy by planning method is not suitable anymore. In that context,
modern points of strategy were born and gradually replaced traditional ones.
Strategy by modern point attempted to return to the nature of the term strategy and
to ensure the adaptation of this term with changeable business environment.
Therefore, the strategy modern point doesn’t emphasize on calculation and planning
but on the selection of proper strategies with established objectives of the
organization.
Johnson and Scholes define strategies in the conditions that environment has a
lot of fast changes "Strategy is the direction and scope of an organization to gain
long term competitive advantage for organizations through its resources in
changeable environment changes, to meet market needs and meet expectations of
germ stakeholders "(Johnson, G. Scholes, K. (1999) Exploring Corporate Stratery,
5th Ed.Prentice Hall Europe).
Not only includes many different aspects, definition of strategy is also various
by level. The exact definition of strategies by level depends on point of view. There
are 3 levels of strategy at least need to be identified:
+ Company strategy level (or general strategy): This strategy is built for
overall company’s system in all areas that company involved in. Objectives in this
strategy show company’s goal on entire operation that company pursued in
overview and the direction and measures to reach that goal as well.
+ Business strategy level (field): Built for a narrow specialized business. In
case that company business just involved in a field that we can say business strategy
level is called strategic for the company strategy level.

3

Quinn, J., B. (1980). Strategy for change: Logical Inscrementalism. Homewood, Illois, Irwin.

11


+ Functionality strategy level: This is the strategy of each individual function
in the company such as finance, marketing, human resources ... it can be seen as
supporting strategy in order to successfully implement the company strategy level
and business strategy one.
Human resources strategy of enterprises is one of functionality strategy level.
It’s an important strategy which decides success of other company’s strategies.
1.2.2 The connection between business strategy and human resources
strategy.
For small and medium size companies, quality of employees plays an essential
role to decide success in business. It’s the human factor that creates productivity
and working efficiency which makes quality performance of whole enterprise
improved. Moreover, “successful candidates” of an enterprise or any organization
will create business culture that can make their own difference and highlight
position compared wit their competitors.
Unlike other resources such as financial or property, human resources is what
creates the enterprise and lead development direction of the enterprise, while
financial resources is still only a means to achieve goals set up.
Business strategy of any enterprise also shows objectives to make and it is the
parameters to evaluate the performance of enterprises. Business strategies can be
defined as many different forms and be measured by various indicators such as
targets for production, marketing and implementation of financial functions which
have been coordinated. In most cases, enterprises often did not notice to consider
the connection between business strategy and human resources strategy, between

plans and performance.
We all recognize that managing people is much harder than operating the
machine with buttons and switches. On the other hands, people are not robots; each
one has different advantages, disadvantages of themselves, how to handle different
jobs and different abilities. If selected carefully and well managed, human factor of

12


enterprise can be a key to success in business. Otherwise, it will be the biggest
potential risk.
Below is a summary table of the relationship between business strategy and
human resources policies. Through this table, we can see cursory interaction
between business strategy and human resource policy:

Business Strategy
Competitiveness
based on low cost

Characteristics of enterprise
• Long term investment
•

•

Clear job description

•

Required to have

detailed reports

•

Focus on regulations
and rules

•

Assigning
responsibility and
clarifying that
responsibility

•

Detailed training and
practicing

•

Pay by products

•

Evaluation of working
performance aims to

•

Designing simple
products
Increase marketing

•

Job description

•

Design new products

•

•

Give priority for
research and
development

Supervising staff
should not be so
detailed.

•

Focus on reputation,
quality of products and
services.

Outsourcing some
jobs

•

Attract intelligent and
skilled

Assigning jobs for
group, not for each
individual.

•

Pay by ability and
profession of each
employees

•

Evaluation of working
performance aims to

•

Competitiveness
based on the
difference (high
quality, customer
service, customer

care…)

Low cost for
distribution channels

•

Human policies
Closely supervise
employee’s activities

•

•

13


develop.
1.2.3. Some strategy analysis tools
Building process and analysis strategies can be supported by some following
tools:
1.2.3.1. SWOT analysis
Model SWOT analysis is a useful tool for comprehension and decision making
in every situation of any business organization. It’s abbreviated by 4 letters:
Strengths, Weaknesses, Opportunities and Threats. SWOT provides a strategic
analysis tool, review, evaluate position and orientation of a company or a business
proposal. SWOT which is suitable to working and analysis group, is used in
business planning, building business strategy, human resources strategy, evaluates
competitors, marketing, product and service development ... Literally speaking,

SWOT is a theory framework which we base on to review stated strategies, specify
position and direction of an organization or a company, to analyze any business
proposal or any ideas related to interests of enterprises. In fact, the application of
SWOT in building a business plan, evaluating competitors, market surveys, product
development and in research reports are chosen by more and more enterprises.
Strengths: What is your advantage? What’s the work you do best? Which
resources do you need to use? What’s the most advantage that others can see in
you? You must consider problems from your own view and others’. Advantages are
usually formed when compared with competitors.
Weaknesses: What things could you improve? What’s the work you do
worst? What should you avoid doing? You must consider problems based on inside
and outside. Others may see weaknesses that you aren’t seen by yourself. Why
competitors can do better than you? At this moment, you should have a realistic
acknowledgement and face the truth.
Opportunities: Where are good opportunities? What interested trend that you
knew? Opportunities can stem from changes in technology and market that
whatever is international of or even in narrow spaces, from changes in state policy
14


related to company’s business field, from changes in social patterns, population
structure or fashion structure ..., from events taking place in the region.
Threats: What obstacles you’re facing? What are competitors doing? Is there
any change in specific requirement of work, products or services? Changes in
technology cause any risk with your company? Is there any problem with your
company’s overdue debt or cash flow? Is there any weakness threatening your
company?
1.2.3.2. PEST Analysis
Meanwhile, PEST model research impact of all factors in macroeconomics.
They are Political (Politics; institution, law); Economics (Economy); Sociocultural

(Culture – Society); Technological (Technology
Here are four factors that directly influence on economic sectors. These are
external factors of enterprises and industries, and that industry has to suffer its
impact provide as an objective factor. Enterprises make their policies, business
operations accordingly based on those impacts.
In business strategy analysis as well as human resources strategy, we often use
combination of SWOT analysis and PEST analysis.
1.2.4. The meaning of strategic human resource
Human resources is an essential issue and is one of key points of production
forces. Manpower is basic decision because it answers the question: Who
manufacture and operate machinery and technology?, Who create products, values?
When the economy is growing, investment and business, speed dial quickly,
technology is modern, production methods is innovative, social production level is
rapidly transferring from the automatic economy to the knowledge economy. Those
require higher and higher quality workforce. Human resources not only meet
quantity issue but also ensure quality of production forces. And human resources
can self-activate and develop itself besides production.
Therefore human resources management is very important to the existence and
development of enterprises. One of the duties of Human Resource Management is
15


to build human resources strategy. Human resources strategy decides success of
business strategy and company strategy. Most of failures in business and personnel
management are due to lack of a true Human Resources strategy or lack of proper
implementation. Building human resources strategy brings business more practical
benefits:
- Define clear goals for each stage of enterprises’ business; help enterprises
find clear directions in the future to reach set targets.
- Assist the business managers, human resource managers to see clearly the

opportunities and challenges from outside, the real situation, strengths and
weaknesses of enterprises; forecast changes in the future to have the active
measures to deal with new environment.
- Human resources strategy helps enterprises exploit and use up their human
resources; maximize the power of enterprises to development.
- Helps enterprises increase the cohesion and consensus between staff and
leaders in implementing company’s common objectives.
- Helps enterprises increase labor productivity, increase administrative
efficiency; avoid risk and increase prevention and stopping difficulties happening to
enterprises.
Hence, "Human resource strategy is a process that combines the function of
human resources with strategic goals of an organization to improve performance"
(John Bratton - Human resource management strategy).
Especially when the company focused on business strategy of high-quality
specialized steel products in mechanical manufacturing industry high strength steel
used in the hydropower plants, shipbuilding industry…
1.3. Process of building human resource strategy.
Normally, the strategy is understood as the result of a reasonable planned
process which is arrangements carefully. Until now, scientists in management,
scientific strategies and administrators have proposed many models of strategic
planning. Each model has a format for the entire strategic management process
16


based on some concepts mentioned above. However, the revision of planning
process as a starting point is useful for our journey into the world of strategy.
Process of building strategies can be divided into seven steps (Figure 1.1),
including:

Function, Duties and strategic objectives of

enterprises
Analysis of internal
enterprises (S, W)

Analysis of external
environment (O, T)

Selecting strategies.
Company strategy
Business basis strategy and functional
department.
Implementation of strategies.
Examination and evaluation performance

Feedbacks

Figure 1.1: Process to formulate strategies

- Step 1: Common situation of markets;
- Step 2: Choose mission and main objectives of the company;
- Step 3: Conduct SWOT analysis of human resources (analyzing external
environment to identify opportunities and threats; analyzing internal environment to
identify strengths and weaknesses of the company);
- Step 4: Conduct detailed analysis of human resources;

17


- Step 5: Selecting of human resources strategy (based on searching for
resources, possibilities and core capabilities then develop it to neutralize threats,

take advantage of opportunities from inside and outside environment);
- Step 6: Develop solutions to implement the strategy;
- Step 7: Examining and evaluating th implementation.
Strategic plans which are created by this process usually covers the period of 5
years, and is updated annually. Thus, planning strategy is orienting resources
allocation in an organization. Detailed steps of building human resources strategy
are as following:
1.3.1. Common situation of the market
- Need to mention on some issues: technology, products, distribution,
competition in market in general and of industries in particular sectors.
- What factors affect to company’s business operation?
- What factors determine company’s business?
When considering the panorama of the market, how company's human
resources will be to meet operation requirement of the company. To get strong
competitiveness, human resources is required to have management qualification,
professional qualifications, skills... Also, working environment of the company has
enough attraction to keep talented staff... This will be a premise for company’s
competitiveness.
1.3.2. Mission and main objectives
In the context of fierce competition, business strategy of each company must
also be changed to be suitable and adapt to each different stages.
Company's mission is a concept used to define purposes of the company, the
reason of establishment and existence basis, development of that. In fact, the
mission statement of the company only focuses on clarifying an important issue
"What does company’s business aims to?". Scope of the mission statement often
relates to products, markets, clients, technology and philosophy that other
companies are pursuing. So it can be said that it’s the mission statement that shows
18

the meaning of an organization’s existence, that they want to become, customers
they want to serve, that methods they want to work…
Objectives of an organization can be considered as the reason for the existence
of such organizations. Therefore, the approach of strategy makers with objectives
will create orientation for forming strategy process and impact to contents of
strategy.
Target show clearly specific direction to pursue, it affects all kinds of business
activities. Target is also a driving stimulating force. Target is used as a tool of
evaluation and controlling. It allows company to check out proposed results whether
they are suitable with set out requirement or not, allows to act properly to achieve
desired results, consolidate responsibilities in the job.
Target with a central role is the result of the comparison. For each enterprise,
objectives can be long term, medium term or short term. Economists assume that
companies set up their objectives in eight following major areas: market reputation;
Innovation; Productivity; Source of finance and logistics; Profit, Developing and
Employee’s performance; Attitude and workers’ performance; Responsibility
towards society.
Since then, Personnel Department will orientate specific requirements,
strategies of their own departments based on each aspect, function that department
are responsible for, will analyze through different analysis tools to build a
harmonious human resources strategies to meet business strategy of the company.
1.3.3. Conducting SWOT analysis of organizations
Analysis of external environmental is to identify opportunities and threats;
analysis of internal environmental is to identify strengths and weaknesses of the
company.

19


1.3.3.1. Analysis of external environment

Economics
factor

Technology
factor

Politics
factor

Enterprises’
internal
environment

Nature
factor

Socio-culture
factor

Figure 1.2: The external environmental factors
External environment is the main factors could affect the implementation of
enterprises’ objectives to achieve. The objective of external analysis is to aware of
opportunities and threats from outside environment. Analysis of external
environment includes macro-environmental analysis and industry environment. The
analysis of these factors help enterprises to identify their position and characteristics
of environment, but current age that they are living, forming effects external
environment on enterprises, enterprises’ targets and especially human resources.
Since then, enterprises can have decision in planning human resources strategy in
order to exploit opportunities and minimize threats.
Macro-Environment: consists of many different factors that impact indirectly

or directly to operation and human resources of enterprises through its impact on
industry environment factors. Of these, there are five factors are evaluated as the
20


strongest factors such as: economics factor, institution factors, law factor,
technology, society and nature factor.
Industry environment: is the one attached with business operation of
enterprises. These factors will decide investment environment, competitive intensity
and industry’s profit as well as decide labor structure by age, professional
qualifications, skills of human resources of enterprises. According to Professor
Michael Porter, context of working environment is influenced by five competitive
pressures: threats by potential competitors’ penetration, competition intensity of
other companies in the industry, strength of purchasing power, of sellers and threats
of substitute products (Figure 1.3)

Potential competitors
Threats of new
competitors
Possibility of
pressurizing of
providers

Competitors in
industry

Possibility of
pressurizing of
customers
Customers

Providers
Competition between
enterprises in
industry

Threat of substitute of
product and service

Substitute product

Figure 1.3: The decisive factors of industry competition

21


1.3.3.2. Analysis of internal environment.
The ability of enterprises is a basic factor to decide what companies can do,
business strategies and functionality level strategy can be successfully implemented
or not. To ensure the feasibility of strategy, we have to evaluate real situation,
indentify strengths, weaknesses when building strategy. Through this, we can
identify real ability of human resources of enterprises. They are professional
qualifications, experience, skills and ethics of employee; etitive advantages of
enterprises, personnel policies, balancing ability between using workers at
maximum and minimum level; capability, concern level and management ability of
superior leaders. Also, we need to analyze other factors such as: evelopment
research, production, finance, marketing; how they affect human resources
management of the company
1.3.4. Conducted detailed analysis of human resources.
Based on analysis of external factors: strengths, weaknesses, opportunities and

threats, we will focus on analyzing internal elements of enterprises (CORP). They
are corporate culture, working organization in enterprises, people and operating
systems in enterprises. From here, we can consider whether personnel work of the
company is in which position; and how company wants to have their human
resources and what company needs to do with current human resources.
From analyzed four aspects of culture, organizations, human and human
resources systems, we can make human resources strategy which is able to fulfill
shortcomings to contribute to common company’s success in their business
strategy.
1.3.5. Selecting human resources strategy.
Before deciding to choose which human resources strategy, we need to
consider business strategies that business department is building, examining SWOT
analysis and CORP to make connection between business strategy and human
resources strategy and building a table summarizing issues which managers and
Personnel department need to reform their human resources.
22


From the SWOT analysis of company’s human resources, the company exploit
strengths to focuses on analysis of the human resources of the company, take
advantage of strengths to optimize company’s business objectives, to limit their
weaknesses to successfully implement targets set out first, using all opportunities to
reach the final objective and nullifying threats so that company’s success is full.
At the same time, company pointed out different threats and weaknesses
which made specific affection on human resources management strategies that
companies are expected to build.

Table 1.1: SWOT matrix analysis of the company
Opportunities (O)

Threats (T)

(Listing major)

(Listing major threats)

1.

1.

2.

2.

Strengths (S)

Combination S/O

Combination S/T

(Listing major strengths)

(Using strengths to
exploit other
opportunities)
1.

(Using
strengths
overcome threats)

2.

2.

Weakness (W)

Combination W/O

Combination W/T

(Listing major
opportunities)

(Taking opportunities to
overcome weaknesses)
1.

(Minimizing weaknesses and
threats)

SWOT MATRIX

1.
2.

1.
2.

2.

to

1.

1.
2.

23


S-O Strategy: To pursue opportunities consistent with the strengths of the
Company, this strategy should be well maintained.
W-O Strategy: To overcome weaknesses to pursue and seize opportunities.
S-T Strategy: To identify measures that the Company can use up her strengths
to reduce the damage dangers due to the external risks.
W-T Strategy: To form a defense plan to prevent the Company’s main
weaknesses from vulnerability by the outside dangers.
From above analysis, the company needs to choose which strategy to carry
out first and then, how is priority? Strategy is a system of big policies and solutions
to carry out and combine with action programs. Enterprises need to select optimal
strategies because all strategies can not be implemented at the same time or each
strategy can not be implemented in careless order as it’s a waste of time, material,
human. Hence, enterprises need to have good choice to gather the most optimal
strategy to develop and consider advantage or disadvantage that company can gain
from this strategy.
On the basis of gathering strategy which is pointed out by combination of
factors: strengths – weaknesses; strengths – opportunities; weaknesses –
opportunities; weaknesses – threats; using matrix by Great criteria to sketch basic
features for the selection of human resources strategy that enterprises are pursuing.

Table 1.2: Evaluation of implementation order of strategy by GREAT matrix.

Critiria

Weight

Strategy

Strategy

Strategy

Strategy

1

2

3

…

Mark Product Mark Product Mark Product Mark Product
Gain
G : Gain
Risk
R : Risk
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Expense
E:
Expense
Achievable
A:
Achivable
Time
T : Time
Total

1.00

Step 1: Identify main categories need to be analyzed or criteria in column 1.
Step 2: Evaluating impact level of factors (criteria) to overall strategy, using
the impact coefficient regarding importance level and influence of these factors to
the strategy (coefficient is calculated by the score from 0 to 1 so that the total
weight is 1).
Step 3: Evaluating and marking points for each analysis point in each
strategy, evaluating point from 1 to 5 with levels: Weak, medium, pretty medium,
pretty, good.
Step 4: Changing coefficients as result of two columns (column two and
evaluating column in evaluating points in each strategy) and then plus all partiall
results to total at the last row.
Last: choose from 1 to 3 highest total score and it’s central strategy should be
focused on implementation
1.3.6. Implementing strategy solutions
For each important issue, we need to highlight implementing solutions. Also,
we have to consider the combination of functional division within the company to
give out solutions and how to implement them. Solutions to improve culture

corporate environment, communication at offices, recruitment, training and
development or payoff mode, human resource planning...

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