Xây dựng kế hoạch nhân sự tại công ty cp thép nam kim e

“Develop Human Recourse Plan in Nam Kim Steel Joint Stock Company”

Contents
CONTENTS.....................................................................................................................................................3
I.

GENERAL INTRODUCTION ABOUT HUMAN RESOURCE PLANNING..........................3
1.

1. The concept of HR planning.........................................................................................................3

1.1.

Concepts........................................................................................................................3

1.2.

The role of human resource planning..............................................................................3

1.3.

Types of Human resource Planning...............................................................................4

1.4.

1.3.1.

Short plan <= 1 year..........................................................................................................4

1.3.2.

Long Term Plan 3 years and above.....................................................................................4

Factors affecting the Human resource Planning in the enterprise...................................5
1.4.1.

Business Production Strategy..............................................................................................5

1.4.2.

The uncertainty of the business environment that the organization is operating..............5

1.4.3.

The type and quality of information to predict the HR planning........................................5

1.4.4.

The duration of the human resources planning.................................................................5
1


1.5.

The process of human resource planning.....................................................................6
1.5.1.

1.6.

The labor demand estimation..............................................................................................6

1.5.1.1.

Short-term labor demand estimation..............................................................................6

1.5.1.2.

Long-term labor demand estimation...............................................................................9

Predicting the supply of manpower...............................................................................9
1.6.1.
Predicting internal labor supply of organizations (analysis of existing human of an
organization)........................................................................................................................................9
1.6.2.

1.7.

Predicting labor supply from outside................................................................................10

Proposing policies and plans to balance supply and demand........................................11
1.7.2.

When labor demand is greater than labor supply................................................................12

1.7.3.

When labor supply equal labor demand..............................................................................12

II.
SITUATION OF HUMAN RESOURCE PLANNING IN NAM KIM STEEL JOINT STOCK
COMPANY...................................................................................................................................................12

1.

Overview of the Company................................................................................................................12

1.1.

Introduction about the company.................................................................................12

2.

The reality of the Human resource planning process in Nam Kim Steel Joint Stock Company. .14

2.1.

Determination of labor demand....................................................................................14
2.1.1.

Identify short-term manpower needs...............................................................................15

2.1.2.

Identify long-term labor demand.....................................................................................17

2.1.3.

Determination of labor supply.........................................................................................18

2.1.4.

Balance supply and demand and implementing solutions.............................................19

2.1.5.

Evaluating HR planning of the Company.......................................................................20

3.

Developing HR plan at Nam Kim Steel Joint Stock Company..................................................20

3.1.

Forecasting labor demand...........................................................................................20

3.2.

Forecasting labor supply.............................................................................................22
3.2.1.

Forecasting internal labor supply in the enterprise.........................................................22

3.2.2.

Forecasting labor supply outside the enterprise...............................................................23

3.3.

Solutions to balance supply and demand......................................................................23

3.4.

Conduct the human resource planning evaluation.....................................................24

3.5.

Improving the level of expert team..............................................................................24

4.

Other solutions.................................................................................................................................24

4.1.

Work analysis...............................................................................................................24

4.2.

Work performance evaluation.......................................................................................25

III.

Conclusion.........................................................................................................................................25

IV.

References.........................................................................................................................................26
2


CONTENTS
I. GENERAL INTRODUCTION ABOUT HUMAN RESOURCE PLANNING

1. 1. The concept of HR planning
1.1. Concepts
Planning is anticipated, predict or forecast changes or variations, as well as the
prevention of risks in the future. Therefore, planning includes 3 stages:
Stage 1: Setting goals (directions) for organizations such as the increase profitability,
market share …
Stage 2: Identify the resources of the organization to accomplish these objectives.
Stage 3: Decide the necessary activities to achieve the set out objectives.
“Human Resource Planning (abbreviated as HRP) is the process of assessment,
determine the need for human resources to meet the business goals of the
organization and building work plan to meet the need”.
According to the above concept, we can see that HRP includes the following:


Labor demand: Estimate on how many qualified and skilled people to adapt to
perform the set out duties.



Labor supply: estimate how many people will work for organizations



Select solutions to balance supply and demand of labor organizations at the
adaptation time in future.

1.2. The role of human resource planning


Human resource Planning plays a central role in the human resources strategic

management.



Human resource Planning has a great impact on the efficiency of the
organization



Human resource Planning is the basis for the activities of human resource
staffing, training and development of human resources



Human resource Planning is to regulate the activities of human resources

1.3. Types of Human resource Planning

3


Human resource Planning has close relationship with the business plan of the
organization. So when building production plan at any rate, we need to develop a plan for
human resources accordingly.
1.3.1. Short plan <= 1 year
 Business Production Planning: That is the definition of performance targets or
specific operational planning of production and business operations within one
year. Thereby we can see that short term business production plans pay an
extremely important role for the economic successes and the survival of any


organization.
Human resource Planning: is the determination of the number and quality of
human resources to meet the business requirements of production in nearest time.
Solving the problems of human resources must be done urgently because it affects

the fastest and most direct to the business production of the organization.
1.3.2. Long Term Plan 3 years and above
 Business Production Planning: During the next long term, to continue to exist and
develop the business environment produced many changes taking place, the basic


problem that organizations must focus on strategic planning for long-term.
The leader must clearly identify strategic thinking such as: Why does your
organization exist? What to do? ... Organizations need to determine which useful
products and services will be produced, analyze strengths and weaknesses of the
organization ... From that build business philosophy, mission the company's long-



term strategy of production and business operations ...
Human resource Planning: Organizations can not achieve the strategic goals of the
business plan for the long term if they lack the necessary human resources. So
along with the long-term business production planning, we also plan human
resources corresponding to implement the strategic objectives.

1.4. Factors affecting the Human resource Planning in the enterprise
1.4.1. Business Production Strategy
 Business Production strategy is to orient for organizations in all aspects including


long-term planning of human resources to serve production and business plans.
Business Production strategy specify the type of products and services that the
organization provides to society in terms of quantity and quality corresponding to
the amount of labor, occupational structure, qualification and skills as well as
technical skills required of employees.
4


1.4.2. The uncertainty of the business environment that the organization is operating
 The uncertainty of the business environment affects the expected accuracy or
cycle of human resource planning. These economic, political, social and scientific
and technical advances changes affect business operations of the organization.
From there it affects the labor supply and demand of organizations.
1.4.3. The type and quality of information to predict the HR planning
When planning human resources we have to define:
+ What kind of work will be done in organizations
+ Can current Human resources meet the requirements of production and
business activities?
+ Which positions needs to be replaced and supplemented?
+ Human resources are attracted from where
+ Time to draw is short or long, ability to attract is easy or hard ...
In the process of gathering information for predicting human resource planning, we
must classify each type and quality control of information sources to obtain the
most accurate forecast.
1.4.4. The duration of the human resources planning
 The duration of planning of human resources is one of the factors affecting the


planning of human resources because:

If duration for human resources planning is long, factor of the internal and external
environment will be a lot of volatility should be held to the set of circumstances that
may occur as well as remedial measures up time.



If the business organization in an environment with many big changes in
expression is many competitors, demand for products and services unstable nature
of many social movements ... the duration of human resource planning does not
exceed 1 year.

1.5. The process of human resource planning
1.5.1. The labor demand estimation
“Labor demand is the amount and structure of manpower needed to complete the number
of products, services or the workload of organizations in a certain period”.
Thus, when determining labor demand not only determines the amount of needed
labor and we need to pay attention to the quality of labor to ensure the completion of the
set objectives. Moreover, when determining the manpower we need to consider and
calculate the overall relationship with other factors such as economic conditions,
legislation; changes in technology and engineering ... (external factors) the amount of the
5


services that the organization plans to conduct production plan yearly, the number of new
products-services will be provided, the change in prices, changes in spending budget...
(Factors within the organization).
Labor demand estimation is divided into two categories: short-term labor demand
and long-term labor demand.
1.5.1.1. Short-term labor demand estimation
It is anticipated labor demand in less than 1 year duration. In the short term labor

demand must identify the specific human in every profession, every kind of human.
Implementation steps include: 3 Steps:
Step 1: Determine the work volume / mission of the organization to implement in
the plan period (one year, half a year, quarter, month, and week).
Step 2: Using the ratio of the standard exchange or payroll employees will waste
products for 1 unit ... as a basis from which to calculate the total hours of labor change
needed to complete each task / each product.
Step 3: Conduct the exchange of labor hours into the number of workers per job,
per type of work, each product. Then the aggregate number of people needed for the
job we determine the manpower needs of the organization in the coming year.
Estimated demand for direct labor groups:
With this group of workers, when calculating labor demand we often use the
method of calculation directly from workload to implement the plan period and the
conversion rate as well as the criteria to calculate the margin of labor required for each
group.
The used exchange rates:
For the key production workers: the exchange rate is the labor consumption for per main
product unit. Convert the workload into worker needs:
+ Calculate total waste of time needed to perform the job
Formula:

T=
In which:
T: total wasted time necessary to perform the workload
: The total volume of the type of work that needs done
: Amount of consumption labor required for one unit of work or product type i.
6


+ Converting a total wasted time that is necessary to perform the work of the number of

needed workers:
CN =
In which:
: The average time amount of a worker in the plan period
: Coefficient of labor productivity growth in the plan period
For service workers: Using the service, the service time. Without norms can use the
payroll.
The level of service (number of machines are served by one worker in a shift).

=
In which:
: Level of service
: Time for each shift (usually 8 hours)
: Service time per machine
Convert serve rate into the needs of workers:
CN =
The level of service time (the amount of time or cost to serve one machine)
T=M*K*t
In which:
T: total service time (h)
M: amount of equipment needed to serve
K: number of shifts
Convert into the needs of performing workers:
CN =
Use manning levels (needed number)
In which:
: The number of workers needed to serve one machine (to be determined based on
the marginal labor standards of the industry, issued by the State)
Estimated demand for indirect labor groups:
7

To calculate the number of employees for this group we can use two methods:
 Payroll direct method: is regular determination to work, function, and the field.
 The method uses the marginal rate: is to use a certain percentage (to be determined on
the basis of reasonable organization circumstances) to identify critical workforce needs
and figure out some key workers.
 Total demand for short-term labor and employment predictions for enterprise.
1.5.1.2.

Long-term labor demand estimation

Predicting long-term human needs must be based on objective and strategic
planning of production and business organizations in future and the overall level of
prediction depends on the requirements of the organization.
Predicting long-term human needs are complex because it is the predication for a
long time but in that time there are a lot of factors that affect demand. So the
determination of which is the task of the human resource management expert.
Model of overall Human Resource Planning: is general calculation for groups with
large numbers of future.

In which:
CN: the number of workers needed in the planning
Q: current workload
G: workload is expected to increase during the plan period
X: average productivity increasing factor from the current to plan period n
W: Average current labor productivity per worker
Use labor consumption standard per unit of product

In which:

: Labor time consumption standard for the last product unit
: Technological time consumption for a unit of product
: Production service time consumption per unit of product
: Management time consumption per unit of product
8


1.6. Predicting the supply of manpower.
Predict labor supply from two sources: labor supply from within the organization
and labor supply from outside the organization.
1.6.1. Predicting internal labor supply of organizations (analysis of existing human of
an organization)
It is estimation that the ability to meet human needs based on the analysis of current labor
force of the organizing both in terms of quantity and quality.
Objectives: clarify that how many people does the current organization have, the number
of people in each department, which work does each person do... to know the advantages
and disadvantages of each one and determine whether it can meet the manpower team
needs of the organization in the future or not?
For this we need to perform the following issues:
Classification of current employees in the organization
This is fundamental activity that is basis for the calculation of the overall labor
supply due to predict the overall supply, we must estimate for each type of job or
employment for each position.
 Firstly, classify the number of personnel in the organization according to
different criteria, such as:
 According to the requirements of the knowledge and skills needed to
perform the job, work groups.
 According to the degree of responsibility of each position in the
organization: depending on the location that workers assume.
 According to the nature of the work: the nature of management, sales,

technique …
 In addition, we can classify employees according to the criteria: age, gender,
occupation, according to the level of skills …
Analysis of the existing workforce in enterprises: is the method used to compare the
workforce is organized in accordance with the requirements of each criterion of the work
they undertake, or compare the human situation is required to work in the upcoming plan
year.
1.6.2. Predicting labor supply from outside
9


Predicting outside labor supply is reviewing social workers in term of quantity and
quality of labor so that we can employ in case the labor force within the organization
does not meet the requirements. Since it will take measures to attract to maintain and
develop the workforce of the organization.
Predicting external labor supply is very important because the human inside of
organizations often fluctuate. So needs additional manpower and appear to come from
outside the labor market.
External labor supply depends on the social human resources, scope, structure and the
population growth should be considered on a macro level.
When the evaluation and prediction of external human resources should focus on the
following main contents:
 Analyze fluctuations fertility, mortality, size and population structure
 Analyze the size and structure of social workers
 Analyze the quality of human resources
 Analyze the situation of migrants
 Predict labor from abroad
1.7. Proposing policies and plans to balance supply and demand
After predicting labor supply and labor demand for the planning period, we conduct to
compare and balance between supply and demand not only of human in large groups,

but also to carry out the balance in smaller groups to each job.
There are 3 cases occur when comparing the relationship between labor supply and
demand
1.7.1. When labor supply is greater than labor demand
Some solutions:
+ Temporary not replace those who move away.
+ Reduce working hours in a week, month, day, but must be discussed with
the employee and notify the employee in advance to arrange their work.
+ Transfers labor from the surplus to the lack.
+ Leave rotation: it is a form of unpaid leave in a short time. Applied for
novice workers, low skill levels, consciously abide by poor discipline …
+ Share job: two or more employees work together as a work.
10


+ For other organizations to lease employ means putting their workers to
work for organizations wishing to hire first-time workers in certain pressure
to reduce surplus labor in the short term.
+ Mobility early retirement, the incapacity or self resignation: be applied to
the employee who has remaining work time under 5 years
1.7.2. When labor demand is greater than labor supply.
+ Solutions:
+ Recruiting workers from outside the organization.
+ Perform skills training and re-training for workers so that they can
undertake the required work of the organization that do not need to recruit
workers from outside.
+ Mobilize to work overtime in the organization but must have the consent of
the employee and must comply with Labor Code.
+ Planning adjacent and management development …
1.7.3. When labor supply equal labor demand

+ Internal Transfers to arrange a reasonable manpower to maximize the
potential of existing human resources.
+ Implement training and skills development for employees to be able to
apply, but the achievements of science and technology in productions.
+ Recruit additional staff from outside to replace those who retire, transfer
work …
+ Implement nearby plan
II.

SITUATION OF HUMAN RESOURCE PLANNING IN NAM KIM STEEL
JOINT STOCK COMPANY

1.

Overview of the Company

1.1. Introduction about the company


Company name: NAM KIM STEEL JOINT STOCK COMPANY



Address: Street N1, An Thanh production area, Thuan An, Binh Duong



ĐT: 0650 3748 848 - Fax: 0650 3748 868



Website: www.namkimgroup.vn

 History and development
11


Nam Kim Steel Joint Stock Company (Nam Kim Steel) was officially established on
23/12/2002, by the Department of Planning and Investment of Binh Duong Province
certification. Nam Kim Steel headquarter was located in N1 Street, An Thanh
Production Zone, Thuan An District, Binh Duong Province, Vietnam in an area more
than 43.000m2.
For ten years of construction and development, to date Nam Kim Sun brand has come
to the households, the high-rise buildings, workshops ... all over the country. The Nam
Kim Steel Joint Stock Company is one of the group companies of 500 enterprises in
Vietnam and is one of the company's leading steel producers in Vietnam (According
to data reported by the Vietnam Steel Association 2013).
With motto “Commitment to giving the best products with the best customer-care
services and the most competitive prices policy”, Nam Kim Steel always believes in
collaboration and companion with the success of Customers.
2002: Nam Kim Steel was officially established on 23/12/2002; the headquarters was
located in N1 Street, An Thanh Production Zone, Thuan An District, Binh Duong
Province, Vietnam.
2009: Mr. Ho Minh Quang became General Director, and in this year, the total
revenue of Nam Kim Steel achieved over 1.000 billions VND.
2010: On 11/03/2010, Nam Kim Steel held the Groundbreaking Ceremony to launch
construction of Nam Kim 2 Steel Factory in Lot B2.2-B2.3, D3 Street, Dong An 2
Industrial Park, Hoa Phu Ward, Thu Dau Mot Town, Binh Duong Province, Vietnam.
The Nam Kim 2 Steel Factory had the total investment of 1.000 billions VND.
2011: Nam Kim Steel officially listed on HoSE Stock Exchange on 14/01/2011, for

share NKG.
2012: Nam Kim 2 Steel Factory formally active raised the total capacity of Nam Kim
Steel over 400.000 tons/year, with major steel product: hot-dip 55% Zinc-Aluminum
alloy coated steel sheeting coil, pre-painted Zinc-Aluminum coated steel sheet in coil,
hot-dip Zinc coated steel sheet in coil, pre-painted Zinc coated steel sheet in coil, steel
pipes and purlins.
Business fields
With strength in production and distribution of hot-dip 55% Aluminum-Zinc alloy
coated steel, hot-dip zinc coated steel, color coated steel... Nam Kim brand of high
12


quality, Nam Kim Steel has gradually asserted its leading position on steel
galvanizing market in Vietnam. To meet the diverse needs and continuous
development of clients, Nam Kim focuses and promotes trade in steel industry.

13


 Organization chart


2. The reality of the Human resource planning process in Nam Kim Steel Joint
Stock Company
2.1. Determination of labor demand
Labor in the Company is divided into two parts; indirect labors are in the
company, office blocks, board of directors of the subordinate units, head and deputy
head of departments and indirect labor are those who manufacture sales directly.

14

The company determines manpower needs to predict future demand for labor in
the Company that is increased or decreased, the changes that are caused and all
measures to identify needs.
Table of labor statistics by years
Unit: Person
Year

2012

Criteria
Total employees
Direct employees

SL
813
551

Indirect employees
level
University
Intermediate
Unskilled workers

2013
%

67,77

SL
754
549

262

32,23

84
101
628

10,33
12,42
77,24

2014
%

72,81

SL
760
538

%
70,79

205

27,19

222

29,21

83
126
545

11,01
89
11,71
16,71
126
16,58
72,28
545
71,71
Source: Administrative Office

2.1.1. Identify short-term manpower needs
In short term, the company forecasts manpower need with the purpose of determining
the demand for labor in each location, each department based on the business plan in
the short term.

 In term of direct labors
The company identifies the direct labor demand based on business production
plans and according to average labor productivity methods.
In which:

D: direct labor demand
Q: revenue estimates based on the previous year's revenue
W: labor productivity in the plan period is taken under labor productivity in report
year
Advantages: calculate the data quickly and easily
Disadvantages: unintended changes about the objective conditions of the environment
can affect real labor productivity and income is used to calculate is the revenue that does
not eliminate inflation. That led to the incorrect calculation.

 In term of indirect labors
15


The Company forecasts based on age, resign condition by themselves, layoffs,
payroll rate of indirect labor. In 2013 the Company reduced labor to operate the
compact apparatus and more efficient workforce reduction is mainly indirect labor.
payroll rate table of indirect labor over the years (Unit: Person)
Target

2012

2013

2014

Direct employees

551

549

538

Indirect employees

262

205

222

Total employees

813

754

760

Payroll rate (%)

32,23

27,19

29,21

According to the above table shows the payroll rate has fluctuated significantly over
3 years. In 2012 – 2013 is decreased, from 2013 - 2014 is increased; the rate of
increase is less than the reduction rate. This shows that the company is taking steps to

improve its organization to achieve the highest efficiency.
Because indirect labor is payroll labor without deadline, therefore, the change is
relatively difficult, so the company’s labor demand forecast is mainly based on the
age of the employee. Then organization department will base on the age of the
employee to determine how many years of retirement to conduct forecasting labor
demand.
Indirect labor using situation in 2014
Target
Leaders
Staff
Total

Calculation

Number of real

demand 2014

labor 2014

58
147
205

64
158
222

Difference
6

11
17

Currently, the company is applying the labor predication method by age, we can
see the prediction method of the company is not only effective because forecasting based
on age without regard to other factors such as production planning next year, a change of
job in the company, the ability to perform the job, the number of contracts expire staff,
the number of employees resign…
16


If applying the above method, when forecasting based on age can only predict
excess or shortage of labor rather than determine the needs associated with the work,
such as qualifications, ability to do the job, experience years …
So, the next time, to implement well the goal of profitability increasing, market
expansion, rising per capita incomes company should have the change in forecast demand
for indirect and direct labor continue to have a workforce in accordance with the actual
situation of the company.
2.1.2. Identify long-term labor demand
The company expects in the period from 3-5 years, how do production plans
change? But usually, the company set production plans based on the rate of increase in
average output per year that is between 10% and 15%. That is the expected basis for the
number of employees on the basis of the calculation method according to labor
productivity.

In which:
CN: Number of needed workers in plan year
Q0: current revenue
a: average annual sales rate to calculation date
b: productivity growth factor of estimated average labor

w: average labor productivity of existing staff
Administrative organizational department conducts statistical data on average labor
productivity over the years. Since then calculate the coefficient of labor productivity
growth
Specifically, as follow:
The company expects revenue in 2014 will be: 1900000 (million VND)
Revenue in 2012: 1.632 million VND
W = 1632000/813 = 2007, 38 (million VND /person)
a = (1900000-1632000)/1632000 = 0, 16
b = 1, 2
CN = 1632000*(1+0, 16)/2007, 38*1, 2 = 789 (person)
Comment:
17


So after 3 years, expected revenue increases by 16%, but the number of needed
employees decreased, labor productivity rose faster than the growth rate of 20%.
Compared to the actual number of employees in 2014 was 760 people and
turnover is 2,009,945 million and revenue forecast is 1,900,000 million and the number
of employees is 789 people. Through which we see the forecast long-term business plan
and forecast long-term labor supply is not accurate.
The forecasting results are more different dramatically than the actual situation.
This demonstrates that the long-term labor demand forecast of the Company is very
weak; due to the calculation method has not been fully calculated changes that may affect
the forecast results. If the company continues to apply this method, it is inevitably lead to
results are not associated with the actual work of and human resource planning has not
made sense and is not associated with and long term business production strategy of the
Company.
2.1.3. Determination of labor supply

 Internal supply
The motto of the company is to make the most of available resources; therefore, the
company was very interested in supply sources in the Company when having the labor
demand for missing positions.
Based on the number of current employees of the departments through the
employee statistical report of the previous period in term of age for indirect labor, for
direct labor, it is reported on age and the labor productivity implementation situation.
Internal supply is conducted fairly specifically and regularly through Labor
Statistics reported annually of member unit. These reports are prepared correctly and
reflect the workforce in the company. These data are used to synthesize member units and
submitted to the Administrative Organization department. Here, HR planning employees
will evaluate the ability to meet periodically to work in terms of quantity as well as
quality and thereby give specific solutions to these problems. However, there are some
problems as follows:


Company has not estimated yet the number of people who likely leave the

company, and consider the current number of workers is certain numbers in the future.
This is completely false because in the long run there will be a lot of factors that affect
18


the employees that they may decide to leave the company such as: Family moves to other
place, workers can not continue to do the work and must be transferred, the employee
resign to work for other company because maybe that the Company pay higher wages
and better remuneration, employee was fired…


The internal supply forecasts based only on age but do not rely on other factors

such as the level of workers, the ability to advance …


Information System for employees and performance assessment system has not

been widely appreciated, implementation is still quite general, especially evaluation
works are still sketchy and the evaluation is based on the average numbers
Thus, the internal supply determining method of the company does not include all
the elements to predict the company's resources are indeed consistent with the actual
needs of the company in the future? The Company needs to re-evaluate the labor
supply forecast from which to determine the existence and direction of recovery. Only
awareness of the importance of determining the factors affecting the accuracy of the
data forecast labor demand forecast, the results are accurate .

 External supply
Number of management employees in company is relatively stable and the product of
the company is regular products; therefore, the demand for labor in companies is
predictable. The labor of the company is derived from the University, College, vocational
schools... at the place where the Company has branches.
When having demand for recruiting workers from outside the company markets will
proceed as follows:
Notify job opportunities in the mass media such as newspapers, television, internet ... or
through the introduction of staff who are working at the company.
Organization department receives records and refining according to the set standards that
based on the requirement that the set out position.
Organizing contests qualified candidates to select the set out matching requirements.
Submit to the Director for approval those who meet the requirements and directors will
consider and make a final decision upon advice of Administrative Organization
Department.

Maximum probationary period is 2 months
19


Thus, the forecast supply outside was done but incomplete. The Company's assessment of
the external labor market based on the information of the press and other mass media that
no assessment of the market one way realistic.
2.1.4. Balance supply and demand and implementing solutions
Balance table between supply and demand for labor in 2014
Estimated
Target
Supply
demand
Real demand
Indirect labor
205
205
222
Direct labor
549
549
538
Total labor
754
777
760
Through data on the above balance sheet, we can see that when predicting, the
estimated demand is greater than current supply is 23 people. This shows that the
company anticipated in the near future, it will be shortage of labor and therefore plans to
hire more workers. But the fact that labor demand should only more than current supply

is 6 people, including some indirect labor increase 17 persons and decrease 11 direct
employees. Thus the difference between projected demand and actual demand is very
large (17 people) that greatly influence the performance targets set by the Company in the
future.
According to the above table we can see the actual labor demand is greater labor
supply, thus the Company has adopted the following measures:
Increased working hours: Mobilizing employees to work overtime to overcome
the shortage of manpower in the short term to meet the speed of production and business.
But this solution is only applicable in a short time and must be approved by the employee
because overtime would affect directly to the employee's health status and leads to
fatigue and easily cause accidents action. Moreover, the Company plans to work and
proper for workers to recover health.
Hire workers from outside: This is also repressive measures and mostly applied to
seasonal direct labor.
2.1.5. Evaluating HR planning of the Company
Despite of paying attention to the planning of human resources, BOD of the
Company has not regularly monitored and evaluated the work of human resource
planning in each phase; therefore, it does not take the initiative to overcome these
situations.
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3. Developing HR plan at Nam Kim Steel Joint Stock Company
Based on the development direction of the company in the future and research on the
status of human resource planning, implementation in the Company is inadequate. Our
Group would like to offer some solutions to remedy the situation so that the Company
can fulfill its objectives in 2015.
3.1. Forecasting labor demand
3.1.1. Forecasting labor demand in the short term
For direct labor: in the case of products produced in the plan do not change much in

terms of quality, the Company may use the current formula that is calculated according to
the average labor productivity but taking into account the factors that can make changes
in labor productivity.
We use the method of calculation according to labor productivity, taking into
account labor productivity:

In which:
Qi: production of type i.
P0: Product price
Estimate = Report* labor productivity growth rate
For indirect labor: to predict indirect labor demand, we analyze existing work of
departments and combine with the marginal rate of indirect employees of the Company.
Based on the report of the manpower needs of the departments, it is submitted to
Administrative Organization Department. But we must consider is the need are really
necessary?
For indirect labor, when forecasting labor demand, we take into account the
following factors: the transfer rate, promotion possibilities, the age of the employee, the
ratio between the marginal indirect jobs in total labor.
According to the data sheet, payroll rate of indirect employees of the Company in
2014 is 29.21% which is pretty good rate. According to experts of human resources,
payroll rate that company wants to maintain is 30%. To achieve that goal, there must be

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strategic workforce planning thoroughly. In 2015 the company wants to maintain a ratio
of 30% to achieve a compact apparatus and management and optimal.
Combining these factors, we have demand for indirect labor in 2015 as following:
Number of indirect employees = 30%*760= 228 (people)
Compared with 2014, the indirect labor demand that estimates for 2015 needs more

than 6 people. The company needs to have plans to recruit new workers to be able to
timely meet the job set out requirements.
3.1.2. Forecasting labor demand in the long term
There are many methods that can be used to predict labor demand in the long term. But
the methods applied by the Company is not reasonable, in order to continue using the
method applied by the Company that results are accurate and practices associated with
the Company should perform as follows:
 Need to calculate labor productivity regularly and must take into account factors
that affect labor productivity for reasonable adjustments.
 It should provide data on business strategy associated with the fact.
In addition, the Company may apply professional approach and development trend
analysis methodology to determine the needed manpower in the long term:
The development trend analysis method: It is the determination of human needs
based on business plans and objectives to be achieved by the organization during the
period of the plan, such as sales volume, total revenue, estimated labor productivity ...
From that compares with the current period to determine the degree of difference from
that corrective measures to meet the human resources needed to complete the task that
the company has set out.
Experts Method: As the use of expert groups have the knowledge, skills and
experience on issues of human resource planning as well as the business operations of the
Company to be able to calculate and make predictions based scientific evidence and in
accordance with the reality.
3.2. Forecasting labor supply
The company still needs to forecast labor supply internally for the position of senior
management, the workers need one experienced and knowledgeable about the company,
only the long-term commitment to the new company in line co. When the company needs
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human resources in any kind, the Company will select sources, forms and methods of

suitable attraction.
3.2.1. Forecasting internal labor supply in the enterprise
To determine the internal supply in our enterprise, we should base on the
information system of human resources. To get full information, firstly, the company
must build system management of synchronization personnel file for all departments. The
collected information should be accurate:
 The level of skill, qualifications of workers
 The number of current employees of the company
 How much is the income of employees, with such income levels, does it
generate labor motivation and engagement of employees with the company or not?
 Evaluation of the potential of employees: is the consideration skill level of
workers whether they are likely to develop in the future? To determine which
workforce is adjacent to the leading positions in the company being empty.
 Predicting labor mobility within the company: the ability to predict the
movement of employees from department to other departments, between the
member of the company together to master the ability to change and labor
measures promptly arranged.
Analysis methods:
 Compare the number of needed employees according to manufacturing
business demand with existing labor of each sector, excess or shortage departments
view, are workers in accordance with the work that being undertaken or not?
 Compare the use of professional and technical staff by industry training,
qualifications, seniority …
After analyzing the information needed to do HR management planning, it will
make plans to meet the needs for replacing, development, production and business
expansion of the company.
3.2.2. Forecasting labor supply outside the enterprise
The company should conduct employee market research to be able to assess accurately
the structure of external human resources of both quantity and quality of labor. Collect
information on population trends of the industry training, career trends, migration

properties…
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Review the Company's position in the market with the industry and the economy as a
whole to determine the degree of labor market attracted by Company.
3.3. Solutions to balance supply and demand
Balance between supply and demand of HR in 2014 - 2015
Target

2014

2015

Supply

Demand

Demand

1932,48

2012,12

2250

Labor productivity (VND /
person)

3,52

3,74

4,04

Number of Direct Labor
(people)

549

538

557

Number of indirect labor
(people)

205

222

228

Total number of employees
(people)

754

760

785

Revenue (billion VND)

Through the above table, we can see Labor Demand in 2014 is larger than labor supply; it
will happens shortages in labor.
Therefore, to improve the effectiveness of human resource planning, the company needs
to raise awareness of the importance of this work.
3.4. Conduct the human resource planning evaluation
Every year, the company organizes a year-end evaluation in all its activities. The
company evaluates individually as well as the department and review the business and
production activities have not completed the plan, the cause still exists in certain
departments to offer remedies in the following year.
3.5. Improving the level of expert team
Human resource plan building is success or not depends on the ability of planning
staff. In fact the company has not paid much attention to planning a uniform that perform
individually each department should high efficiency.
Planning officers are not trained basically; therefore, their capacity is limited. In the
future there should be training plan to raise the level of staff or invite HR experts as
consultant.
4.

Other solutions
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4.1. Work analysis
This work has not been done at the company, thus to improve the quality of planning, the
company should perform this work because:
 Identify the number of job positions as well as the requirements of each job

 Helping employees to understand the request, duties and powers of job that they
undertake. Since then they know what to do.
4.2.

Work performance evaluation
The work performance evaluation is carried out at the end of each year to serve as

basis for human resource management decisions, but this assessment has not been
interested and very general and average. So the results are not accurate and not helpful
for the HR development. In the future, the company should develop a work performance
evaluation system that is more scientific to promote its advantages.
 Develop evaluation system by conducting the work analysis in all departments
and production units…
 The work performance evaluation must be done on the basis of both parties to
discuss the company leaders and employees.
 Develop feedback from leadership to staff and vice versa.
 Mounting work performance evaluation with the work remuneration, reward,
training and development, promotion, transfer …
 The above is the solution of our group. Our group hopes that it can contribute
something to help the planning of human resources at the company become more
efficient and become a powerful tool to serve the strategic development of the
company during next time.
III.

Conclusion
Nam Kim Steel Joint Stock Company is an enterprise manufacturing and

trading all kinds of steels and purlins in Vietnam. With many years in operation, the
company has large development potential. However, today the company is facing
with a difficult issue that is disturbance in officials, the company is facing with the

situation of “brain drain”, young talent come and go, affecting the production and
trading target of the Company.
Starting from the state of HR management as well as the need to build a team
of officials who have quality that is matching the strategic development objectives
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