Building the strategy for recruiting key employees in th milk food joint stock company the period of 2019 2024

ĐẠI HỌC QUỐC GIA HÀ NỘI
KHOA QUẢN TRỊ VÀ KINH DOANH
---------------------

NGUYỄN ĐÌNH TUẤN

BUILDING THE STRATEGY FOR RECRUITING
KEY EMPLOYEES IN TH MILK FOOD JOINT STOCK
COMPANY THE PERIOD OF 2019-2024
XÂY DỰNG CHIẾN LƯỢC TUYỂN DỤNG
NHÂN LỰC CHỦ CHỐT CHO CÔNG TY CỔ PHẦN
THỰC PHẨM SỮA TH GIAI ĐOẠN 2019-2024

Chuyên ngành: Quản trị kinh doanh
Mã số: 60 34 01 02
TÓM TẮT LUẬN VĂN THẠC SĨ QUẢN TRỊ KINH DOANH

NGƯỜI HƯỚNG DẪN KHOA HỌC: TS. PHẠM ANH TUẤN

HÀ NỘI - 2019


ABSTRACT
1. Rationale.
Recently, the investment into hi-tech agriculture is the potential opportunity for domestic
and foreign investors. In which, the dairy farming and milk production is one of fields creating a
rapid growth in Vietnam.
With the process of global integration, Vietnam is considered as a developing country with
high urbanization speed and improved living standard that is one of factors to stimulate the
consumption of milk and other products made from milk.
According to Central Institute for Economic Management’s report, at the workshop on

“Vietnam’s economy: Reform and prospects in a volatile world” shown that, in first 6 months of
2018, Vietnam’s economy has achieved 7.08 %, the highest growth rate since year 2011. Vietnam is
a crowded population country, the rate of population increment is more than 1%, the rate of GDP is
7-8%/ year, and the average income per person is increased day by day. The more concern on the
nutrition, health and stature of the Vietnamese is one of factors that make the demand of milk
consumption be at high growth rate.
According to Vietnam Dairy Association, the turnover of milk in 2017 achieved above 100,000
billion VND, 10.5% higher rate than year 2016. The fresh milk gained 1,333.4 million liters, 6.6%
increase compared in 2016. Powdered milk reached 127.4 thousand tons that made 10.4% more than in
2016. Imported milk and other products made from milks achieved 868 million USD increasing 1.9%
comparing to year 2016 and export turnover is more than 300 million USD. The average consumption is
26 liters/year/person. This number will be increased to 28 liters of milk/year/person. Moreover, the milk
market newly started in Vietnam 20 years ago considered as a young market comparing with developed
and developing countries. It shows that milk market in Vietnam has huge potential for development.
Capture this potential area and own outstanding business thinking, TH True Milk has
launched new clean & fresh milk products to the market since 2010. With the principle of keeping
the essence of nature in each product, TH Group (THG) commits to serve customers with clean,
safe, fresh and nutritious products. To implement this, TH Group has equipped modern technology
of Israel, applied the advanced management system and completed production process from the
stage of farming to the distribution of products to consumers. In order to operate this largest scale
farm in Southeast Asia, the corporation has invested huge and adequate human resources.
The founder of TH Group - Ms. Thai Huong shared: "Investing in technology and
production lines is the focus, investing in people is strategic”. Being as a young business, going
after the dairy industry in Vietnam, if you want to fulfill your ambition, with modern machinery,
advanced process is not enough that THG needs to have human resources are really elite and
enthusiastic.
1


Being aware of the important role of human resources in improving the competitiveness,

THG has been oriented in the development of human resource management strategy. TH Milk Food
Joint Stock Company (THMF JSC) is a dairy farm management company, harvesting and
processing milk initially for the corporation. THMF JSC locates at Phu Quy Plateau, a mountainous
area in Nghia Dan District, Nghe An Province. This place is far from the center, less densely
populated area. There are some big competitors nearby the company such as Vinamilk, Masan, and
Mavin Ausfeed etc. The company has a large number of human resources with diversified and
complicated structure so the Group is very interested in improving and improving the quality of
human resources here. Although the group has long planned to attract, retain, train and develop
them, it is not specific for each sub-company. Because of the urgent problem mentioned above,
after the study and research in the MBA international program - HSB - Vietnam National
University, Hanoi, the author decides to choose the topic of " Building the strategy for recruiting
key employees for TH Milk Food Joint Stock Company the period of 2019 - 2024" for the
graduated thesis. In order to complete the research process, the author must understand and clarify
the theoretical basis on human resource needs, factors affecting the recruitment, compensation &
benefits, training, career pathways, performance evaluation and human resources development for
the next 5 years.
2. Literature Review.
Building the strategy for recruiting key employees plays an increasingly important role in
the sustainable development of organizations and enterprises. As a result, research on the topic of
strategy has become increasingly popular among scholars. There are a lot of scientific researches,
publications and documents both inside and outside the country to discuss personnel strategy in
general as well as recruitment strategies in particular.
Oversea research.
In the human resources management, to own a talent team who are key members and
suitable with the business operation of each company/corporate plays a significant meaning. To
build this strategy for recruiting key employees/positions, each company bases on their capability,
policy and strategy to look for these ones by their own ways.
The master thesis of Amin W. Mugera about “managing human resources on six dairy
farms in Michigan” (2004). This thesis figured out how dairy farms manages their human resources
and how the farms achieve competitive advantage through the human resource management

function. The author used the qualitative methods of survey and expert interviews to collect
information & data. However, this research cannot solve the problem that THMF JSC is facing to.
The research “Human Resources Management for Farm Business in Manitoba”, Canada
(January 2013). This research only focused on recruiting, hiring, orientation, training, performance
2


motivation & employee relation. The author figured out the way how to reduce turnover, improve
the quality of employees, and run a HR plan that has a positive and direct impact on the business.
However, this research cannot completely apply for a new dairy company located in a mountainous
area and in a tropical country like THMF JSC.
The research "Strategic Human Resource Management: Practical implementation?" by Ken
Lovell (2009) Southern Cross University. In his research topic, the author has in-depth research and
analysis of the theory of human resources strategy that is implemented. Specifically, the author has
focused on the issues in human resource management in terms of remuneration and compensation,
career pathways, performance management and human resource management practices. By this
research, the administrators and HR Managers can have an overview of HR Practices. However, the
lessons and shares withdrew from the application of human resource management theory to the
reality that is only apply in the construction field in general, cannot be universally applicable to
many specific areas and it is characterized by dairy farming and milk production.
In the “handbook of human resource management practice” written by Armstrong (page
514), the author has in-depth analyses recruitment plan, recruitment strengths and weakness,
identifying the source of candidates and selection methods. However, these analyses is common
theoretical issue, to be applied into enterprises like dairy farming in TH True Milk, it needs to be
practical apply with specific solution and methods.
Domestic research.
In Vietnam, there are many research topics that address to the completion and improvement
of recruitment strategies and to take measures to improve the effectiveness of human resource
management such as:
The Journal of Industry and Commerce published the "Current status of Human Resources

management in Vietnam" by Master Nguyen Thi Huyen (2017). According to the author, human
beings directly and indirectly involve in all activities of enterprises. As a result, if an enterprise has
an elite workforce in terms of both quantity and quality, it will have an overwhelming competitive
advantage. However, not many Vietnamese enterprises could effectively exploit the potential of
their staffs. The author has focused on the status analyst of farmers, workers and white collars in
Vietnam.
The research “Analysis of human resource management practices” of Indonesia Labor
intensive light manufacturing industries. The result shown three groups of factors:
1. Outside Factors: Labor law; Market conditions; Labor market and characteristics of
labor supply.
2. Corporate

governance

factors:

Policy;

Recruitment;

Management and timely Information management.
3

Education;

Performance


3. Work Environment Factors of Corporate: Workplace, Public Characteristic, factory
location and material source.

In my thesis, the author has decided to uses “Maslow’s hierarchy of needs" to be the
theoretical basis. According to Maslow, human needs are divided into two main groups: basic needs
and meta needs. Therefore, in this thesis, author conducts an analysis of basic needs and meta needs
related to employees. Understanding the psychology of employees for leadership is important and
necessary because it helps administrators or managers to build a good and loyal team who are
willing to devote themselves to the company development and success by using proper recruitment
policies to best meet those needs within company’s ability and still bring the highest efficiency for
the enterprise.
Maslow’s Hierarchy of Needs

Self-actualization/Self-fulfilment
Achieving one’s potential, personal growth
and development
Esteem needs
Self-esteem, the respect of others, recognition, praise,
achievement, status and responsibility
Social needs
Acceptance, work group, the need to be loved, to feel wanted and to
belong

Safety needs
Protection, security, order, law, limits, stability and familiarity

Biological and physiological needs
Basic life needs - air, food, drink, shelter, warmth, sleep

Figure1: Maslow’s Hierarchy of Needs
Sources: Maslow’s Hierarchy
4

Therefore, it may confirm that my thesis topic “Building the strategy for recruiting key
employees in TH Milk Food Joint Stock Company the period of 2019-2024" is a new, urgent and
different topic with previous ones. The thesis researches the fundamental and systematic issues in
developing the strategies for THMF JSC in order to find a suitable way to utilize and develop the
efficient human factors for the company sustainable development. Especially in the present period,
the world is facing the trend of globalization, economic integration has become an indispensable
trend for both of opportunities and challenges. Along with the explosion of information, science and
technology achievements, the recruitment strategy also needs to be updated, renovated itself
accordingly. The completion of recruitment strategies for key employees is a significant decision
for businesses, helping it grow faster, strengthen their brand and reputation.
3. Research Subject.
The research aims to clarify the situation, factors have influence on the recruitment for key
employees in THMF JSC through the following activities: recruitment planning, analyzing
recruitment strengths and weaknesses, analyzing requirement, identify sources and candidates,
selection methods, references and offers for the company's recruitment strategy to 2024.
4. Research Objectives.
Theoretical systems of recruitment.
Analyzing, evaluating and clarifying the current recruitment situation of human resources at THMF
JSC.
Building scientific and practical basis for recruitment strategy for key positions in THMF JSC until
2024
5. Research Questions.
The research questions which served as a guide to this thesis are:
1. What factors can affect to the efficiency of key personnel recruitment?
2. What are the challenges associated with the key recruitment of the company?
3. Does current recruitment policy attract the potential candidates from outside?
4. What are the ways to help improve recruitment on key employees of the company?
6. Research Scope.
 Scope of Space: The topic does research on THMF JSC.

 Scope of Time:
+ For the second data: the research uses actual data of THMF JSC from 2016 to 2018.
+ For the primary data: the research collect data from October 2018 to March 2019.
 Scope of content:
+ The research only focuses on building recruitment strategy for key positions in THMF JSC the
period of 2019-2024.
5


7. Research Methods.
7.1. Data Collection Methods.
 Secondary Data:
- Collecting available information and documents: financial reports, statistics report of
personnel number in 2015, 2016, 2017 and 2018.
 Primary Data:
Data collection through the quantitative methods used in the research by in-depth interview
techniques for management team, potential employees who are working at THMF JSC and other
candidates who has applied to TH Farm via detailed questionnaire.
+ Purpose of the interview:
The author chooses this method for the purpose of researching to understand the
perspectives of humans, research results by descriptive data through quantitative methods such as
in-depth interviews.
+ Informant Group: The questionnaire is divided into 3 groups:
• Questionnaire for the managers: 15 Heads of Department will be directly interviewed. By
using the questionnaires, the author expect these ones will give their comments on current
recruitment policy, factors affecting to key employees and some advices to improve the situation at
present.
• Questionnaire for the internal potential employees: 30 potential employees of 15
departments (2 potential employees per department) will be interviewed. The author expect these
ones will give their comments on current recruitment policy, factors affecting to them, their

expectation to improve this situation and give proposal on current recruitment policies.
• Questionnaire for the external potential candidates: 30 potential candidates who has
applied in THMF will be interviewed/surveyed via the questionnaire. The author expect these ones
will give their comments on job posting, employer branding, employees referrals, company
websites, headhunters…The interview questionnaire is sent to 30 potential candidates via emails.
7.2 Data Analysis Methods.
- Comparison, collation, generalization
- Using statistical analysis method: calculate the proportion, density
Besides, the thesis also uses some models for analysis and synthesis of external elements required
for recruitment strategy development.
8. Contributions of the research.
- Theory: The topic analyzes and systematizes the basic theories on recruitment strategy for
enterprises.
6


- Practice: The topic will build the scientific and practical basis of recruitment strategy for key
employees in THMF JSC. Based on the analysis of resources to propose the strategic solutions.
9. Proposed Thesis Structure.
Apart from the abstract, acknowledgment, content table, abbreviations list, reference, the
content of the thesis is structured in 4 chapters:
Chapter 1: Theoretical background on recruitment strategies in enterprises.
Chapter 2: Research methods & designs
Chapter 3: Analyzing factors & current situation of the company that affects to the recruitment
strategies for key employees in THMF.
Chapter 4: Building a recruitment strategy on key employees in THMF JSC from 2019 to 2024.

7

CHAPTER 1
THEORETICAL BACKGROUND ON RECRUITMENT STRATEGIES
1.1 Definition and concepts
1.1.1 Definition of Strategy
Alfred D. Chandler, Jr., author of Strategy and Structure (1962), the classic study of the
relationship between an organization’s structure and its strategy, defined strategy as “the
determination of the basic long-term goals and objectives of an enterprise, and the adoption of
courses of action and the allocation of resources for carrying out these goals.”
In 1994, Henry Mintzberg, an iconoclastic professor of management at McGill University,
took the entire strategic planning establishment to task in his book, The Rise and Fall of Strategic
Planning. In effect, Mintzberg declared strategy did indeed have several meanings, all of which
were useful. He indicated that strategy is a plan, a pattern, a position, a perspective and, in a
footnote, he indicated that it can also be a ploy, a maneuver intended to outwit a competitor.
1.1.2 Definitions of Recruitment
Various researchers have contributed to the field of HRM, and have offered intensive and
profound knowledge on the branches of HRM especially on recruitment and selection.
Pilbeam & Corbridge (2006, 143) have defined the term recruitment as follows:
“A process which aims to attract appropriately qualified candidates for a particular position
from which it is possible and practical to select and appoint a competent person or persons.”
1.1.3 Concepts of Recruitment
According to Costello (2006) recruitment is described as the set of activities and processes
used to legally obtain a sufficient number of qualified people at the right place and time so that the
people and the organization can select each other in their own best short and long term interests. In
other words, the recruitment process provides the organization with a pool of potentially qualified
job candidates from which judicious selection can be made to fill vacancies.
1.1.4 Develop and select strategies.
In order to develop the organization's human resource development strategy, it is necessary
to carefully analyze the internal and external factors affecting the organization, identify the
strengths, weaknesses, opportunities and threats that the company is facing, thereby helping the
company to build strategic plans in a specific and effective way, suitable to the conditions of the

organization, promoting strengths and overcoming weaknesses to build best human resource
development strategy.
Tools to build strategies include the following matrices:
* Matrix of external factors (EFE- External Factor Evaluation)
8


Matrix of external factors allows strategists to summarize and assess economic, social, cultural,
political, natural, integration factors that affect organizations.
The EFE matrix is implemented in 5 steps:
Step 1: List external factors that primarily affect the organization
Step 2: Classify the importance from 0.0 (unimportant) to 1.0 (very important), the total of
assignments assigned to these elements must be 1.0.
Step 3: Classify the elements from 1 (least affected) to 4 (most affected).
Step 4: Multiply the weight of the factor with rating point to determine the total of important points
for the organization.
Step 5: Summary of all factors points to determine the total of important points for the organization.
The maximum score of the matrix is 4, the lowest is 1 point. If the total score> 2.5 indicates that the
organization responds well to the external environment, if the total score <2.5 indicates that the
organization reacts weakly to the external environment.
* The SWOT matrix combines assessed strengths, weaknesses, opportunities and threats from the
EFE and the IFE matrix that forms the strategy.
In order to develop the strategy, which can be based on the SWOT analysis model, we must
synthesize Opportunities, Threats, Strengths, and Weakness to combine these elements into
strategic plan groups for the organization.
Strengths and weaknesses are internal factors of the organization, while opportunities and
threats are external influencing factors, SWOT allows analysis of various factors that have a relative
impact on the company competitiveness. SWOT analysis is the assessment of data arranged in
SWOT format in a logical order to help readers understand and can present and discuss to make
decision easier.

9


1.2 Sources of Recruitment

Source of
recruitment

External

Internal

-

Promotion
Demotion
Transfer
Job Posting
Job Bidding

-

Advertisement
E-recruitment
Employee Referrals
Employment Agencies
Labor Offices

Figure 2: Internal and External Sources of Recruitment

Source: Sources of Recruitment (Prashant, 2009)
Advantages

Disadvantages

-

Low Labor Turnover Rate

Limited Choice

-

Performance data of applicants is available
- Implementation of Traditional System
Time Value

-

Costly

-

Motivation and engagement

-

Limited Internal Sources

-

Corporate Culture

-

No new ideas to the organization

-

Competition with co-workers

Table 1: Advantages and Disadvantages of Internal Recruitment.
Advantages

Disadvantages

-

Bring new ideas into the organization

-

Slow and expensive

-

Needed skill and talent

-

Time used for training

-

Increase diversity

-

New recruits have to get familiar with

-

Business secret and ideas from competitors.

organization’s operations & cultures.
-

Internal candidates not selected or promoted
may lose their motivation.

Table 2: Advantages and Disadvantages of External Recruitment.
1.3 Recruitment Analysis & Channels.
Recruitment is considered a continuously developing process that needs to be evaluated and
modified according to every successful or unsuccessful procedure. The recruitment process does not
always follow the same structure but in general it consists of a few common phases. The process
10


commonly starts with assessing the need to recruit which is followed by carrying out a job analysis
and defining selection criteria. Whether to use internal or external recruitment has to be determined

before launching the procedure.
Before launching a recruitment procedure, the executive board and human resources department
should familiarize themselves with the tasks of the designed vacancy and consider if hiring a new
employee is necessary or whether the tasks can be incorporated to other posts. Replacing an old employee
with a new one is not always required as there are several ways to reorganize work (Österberg 2014, 92).
1.3.1 Job analysis
Job analysis is a continuous process of gathering information about the responsibilities and
reviewing the knowledge, skills and competency required for a specific post. As a result of the
process job descriptions and person specifications are created or updated. (Pilbeam & Corbridge
2006, 146-145.) A job description specifies what has to be done in a particular post whereas person
specification defines what kind of person is needed to fill the role.
1.3.2 Recruitment channels
Every recruitment channel offers different benefits and limitations and suits certain
situations better. To prevent limitations and to profit from advantages, several channels can be used
in combination. Many authors introduce the most common channels utilized in external recruitment
as enlisted below:


Organization’s webpage.



Commercial job board internet sites and social media.



Newspapers and magazines.



Professional journals, trade press and trade unions.



Recruitment fairs.



University career centers.



Employee referral scheme, word-of-mouth.



Recruitment agencies and job centers.



Executive recruitment.



Vacancy boards.

11


CHAPTER II

METHODS AND RESEARCH DESIGNS
2.1. Research model and process
2.2. Identify research problems
Through a preliminary assessment of the situation of TH Milk Food Joint Stock Company,
the author realized that the Company has built a development strategy, business strategy, however,
has not yet developed a human resource strategy in general and a recruitment strategy of key human
resources in particular. Sometimes, there are problems such as lack of human resources, or
manpower are not suitable for development orientation, not high quality, paying salary not proper
with work scope, not recruiting potential personnel or failing to retain key personnel ..., so the
research problem of the thesis is determined to be:
Study to propose the development of key personnel recruitment strategy for TH Milk Food
Joint Stock Company in the period of 2019-2024 and propose solutions to implement the strategy.
2.3. Research Methods
The thesis is based on the use of traditional research methods, analysis and synthesis of
secondary data according to the system approach. Secondary data include published statistics and
reports of the Company and Human Resource Management records at the Human Resources,
Accounting Departments and the other departments. Company; Study syllabus and reference
materials; specialized journals to learn about the orientation and policies of the State, learn about
high-tech agriculture, and in-depth studies on human resource management strategies. Find out
information about other milk production and business organizations to understand their strengths,
weaknesses and orientations so that author can propose more suitable solutions for the Company.
In order to collect more primary data with departmental strategic thesis, it is expected to use
the in-depth interview method, direct discussion with the managers of each department, key staff of
department of the company and potential candidates who have applied to the company.
The data is analysed by methods such as: Methods of analysis, synthesis and comparison:
Using descriptive statistical methods combined with synthetic methods, comparing to analyze
secondary and primary data to make judgments about HR development strategy. Depending on the
nature of data and tasks, the study will use different methods to have the valued and reliability
result. The support tools for analysis such as excel software...
2.4. Determine the research objectives

Based on the rationale for the personnel recruitment strategy presented in Chapter I;
Based on the research problem identified in section 2.2,
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The thesis proposes research targets as the content related to the process of building
recruitment strategies, including:
* Indicators for the external environment assessment.
- Analyzing the external environment of the organization
+ Macro environment:
1. Economic factors
2. Legislation on labor and labor market
3. Cultural and social factors of the country
4. Science and technology
+ Industry Environment:
1. Competition attracts key human resources
2. Supply capacity of training schools
3. Customers, partners, competitors.
* Indicators for internal environmental assessment.
- Organization's mission, goals and strategies
- Human resources of the organization, including managers at all levels.
- Organization's human resources policies:
1. Policies to attract human resources.
2. Human resource allocation and use.
3. Training and retraining policy.
4. Remuneration policy.
5. Working environment.
6. Management and administration
2.5. Description of collecting and processing data
2.5.1. The process of collecting the secondary data

Secondary data is pre-compiled, published data that is easy to collect, less time-consuming
and money-consuming during the collection process. For secondary data includes organizational
structure, financial reports, personnel files, plans, regulations, documents of the industry, processes
and rules of the Company...
Results:
- From outsources:
+ Textbooks, written materials on strategy, human resource management, recruiting personnel.
+ Journal of Agriculture and Livestock.
- From internal sources:
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+ The report of production and business activities in 2016, 2017, 2018 of TH Milk Food Joint
Stock Company.
+ The report on the human resource structure of TH Milk Joint Stock Company 2015, 2016,
2017, 2018.
- Development orientation of TH Milk Food Joint Stock Company in the period of 2019-2024.
2.5.2. Primary data collection process
The secondary data source has partly reflected the contents to be studied, however, to gather
information on the evaluation of important indicators to make the strategy, as well as assessing
external, internal factors that affect strategic planning. Accordingly, the author identifies the target
group for primary data collection that will be focused mainly from interviewing the management
team of departments, interviewing key staff of the departments, interviewing potential candidates
who have applied to the company.

14


CHAPTER III.
ANALYZING FACTORS & CURRENT SITUATION OF THE COMPANY THAT

AFFECTS TO THE RECRUITMENT STRATEGIES FOR KEY EMPLOYEES IN THMF
3.1 Characteristics of the company on business and human resources.
3.1.1 Building and developing process of the company
TH Milk Food Joint Stock Company, Asia's largest concentrated high-tech dairy farming
company in Nghia Dan (Nghe An) belongs to TH Group that has been implemented since 2009.
The project has a total investment of 1.2 billion USD, has a self-owned land fund with a total
planning area of 37,000 ha (currently using 8,100 ha), the scale of herd reaching 137,000 cows by
2020.
Constructing farms in Phu Quy plateau (Nghia Dan), the North Central region is sunny and windy,
where there has been a failed model of breeding dairy farms (this is also the context of many dairy farming
areas in all over the country at that time), TH Group used the strategy of natural resources, Vietnamese’
intelligent and the world's terminal technology to build and operate the farm with the support and advice of
Israel experts. After only 14 months, the farm cluster has been operated, developed & expanded.
Up to now, the farm has built and fully operated 2 large farm cluster, 4 dairy farms per
clusters, total herd of 45,000 cows, of which 45- 50% of milking cow (equivalent to more than
22,000 cows). Each month, 1,500 - 2,500 calves are born depending on the season. The distance of
each areas is far from 10km, each cluster has sufficient infrastructure to take care of the cow,
including: Feed Center (capacity of thousands of tons/ day); clean water treatment plant, waste
water treatment plant, compost plant; largest biogas system in Vietnam…
2.1.2 Report on the business results of the company.
For recent 10 years of establishment and development, the company has achieved significant
achievements. The efforts of all employees have been recognized by the Party and the State and
awarded "3rd-class Labor Medal in 2015 and 2nd class Labor Medal in 2018".
That effort and success is also reflected in the company's business results in the last 4 years as
shown in the table below.
Year

Unit

2015

2016

2017

2018

Revenue

Billion VND

2674

2702

3317

7630

Figure 4: Revenue of THMF in 2015, 2016, 2017&2018
2.1.3 Organizational structure & management system of the Company
The organizational structure and operating system of TH Milk Food Joint Stock Company includes
08 farms, 7 service departments, 6 specialized departments.

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BOD

Feed &

Nutrition

Constr.

Garage

Maint.

Vet

HR

Finance

Purchase

IT

Safety

QA

Farm

Agriculture

Table 4: Organization chart of THMF JSC
Source: Human Resources of THMF
3.2 The content of Human Resources Strategy
3.2.1 Vision of TH True Milk

TH Group aspires to become Vietnam’s leading manufacturer which owns in hand clean
natural origin. With serious and long-term investments combined with the most modern technology,
TH True Milk Company is determined to become a world-class brand of food that is likely
everyone’s favorite and national pride.
3.2.2 Mission of TH True Milk.
In the spirit of closeness to nature, TH Group has always tried its best to nourish the
Vietnamese physical and soul by providing the food products derived from nature - safe, clean,
fresh and nutrient.
3.2.3 Analysis of EFE
Opportunities
1. The plentiful Human Resources comes from the
universities: Hanoi & Vinh.
2. The tough compensation in recruiting & retaining egineers
in the labour maket.
3. The quality of training & coaching is being improved to
follow the trend of the world
4. The modern and hi-technology are available in the world.
5. The GDP growth is increasing every day. The growth
speed of fresh milk market in Vietnam

Weight

Rating

Score

0.1

4

0.4

0.1

3

0.3

0.1

3

0.3

0.1

3

0.3

0.1

4

0.4

0.2

3

0.6

0.2

2

0.4

0.1

3

0.3

Threats
1. There are many competitors nearby the company like
Vinamilk, Masan, etc.
2. The far distance from farm to the center of cities such as
Hanoi is 300 km, Vinh is 100km
3. Time to recruit, train, retain technological employees
Total

1
16

3


Table 5: Analysis of EFE
The total score is 3 indicates that the Company responds to changes in the external environment

well.
3.2.4 Analysis of IFE
Weight

Rating

Score

1. The policy on salary, incentive, other bonus, etc.

0.25

4

1

2. The attractiveness of brand name.

0.05

3

0.15

3. The friendly & professional working environment

0.05

3

0.15

4. The modern & hi-tech equipment attracts the employees.

0.1

4

0.4

5. The insurance health care.

0.05

3

0.15

0.05

3

0.15

0.15

4

0.6

resources

0.15

4

0.6

3. The lack of the interest of the management board.

0.2

4

0.8

Strengths

(Furniture, equipment, canteen, natural farms, etc.)

6. The equal employees opportunities & good employees
relation
Weaknesses
1. The lack of detail & long term training program for
technological human resources
2. The limited budget for developing the technological human

Total

1

4

Table 6: Analysis of IFE
The total score of 4 > 2.5 shows that the organization responds well to the internal environment
3.3.3 The strengths, opportunities, weakness & threats of THMF.
In order to have a completive market with other companies in the same field, THMF JSC is
having many strengths and opportunities, but the company still has a lot of weakness and threats.
The below analysis is more clear for this thesis.

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Strengths

Opportunities

S1. Good policy on salary, compensation and O1. Plentiful Human Resources from the
other benefits.

universities.

S2. The modern & hi-tech equipment’s O2. Sharpen growth speed of fresh milk
attracts the employees.

market in Vietnam.

S3. The attractiveness of brand name.

O3. Tough competition in recruiting &

S4. The friendly & professional working retaining engineer in the labor market.
environment (Furniture, equipment, canteen, O4. Modern & hi-tech are available in the
natural farms, etc.)

world

Weaknesses

Threats

W1. The lack of detail & long term plan for T1. Many competitors nearby the company.
key employees on carrier pathway.

T2. The far distance from farms to the

W2. Mountainous location

center of cities

W3. The lack of the interest of TH Group T3. Time to recruit, train, retain key
management board

employees.

W4. New hiring takes time to be familiar T4. The lack of good and skillful candidates
with new machines & technology

in agricultural field.

Table 9: SWOT analysis on TH Milk Food Joint Stock Company

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CHAPTER 4
SOLUTIONS TO COMPLETE THE PROCESS OF KEY HUMAN RESOURCES
RECRUITMENT AT TH MILK FOOD JOINT STOCK COMPANY.
4.1 Factors affecting the recruitment of human resources at the enterprise
4.1.1. Internal Factors of enterprise.
4.1.2 External factors of enterprise.
4.1.3 Criteria for evaluating the effectiveness of human resource recruitment at enterprises.
In addition to the criteria for evaluating the recruitment process or the recruitment
performance as above, we also have criteria to evaluate the effectiveness of resource recruitment,
which can be evaluated through some of the following criteria:
Turnover rate, Retraining costs, Performance results
4.2 Completing the recruitment process
4.2.1. Completing the determination of recruitment needs
In order to accurately identify recruitment needs, it is necessary to develop a specific key
personnel recruitment plan. In the recruitment plan of the Company, only the number of personnel
missing in the Company has been given, and no specific information has been given. The plan
should provide forecasts, key positions, difficult hiring position, fired employees possibility,
training needs… From there, the exact number of personnel recruited will be clear. To do that, it is
necessary to have a good assessment of work performance.
Human resource planning should be carried out periodically, ensuring stability in personnel
arrangement. In particular, it is necessary to have a long-term development orientation, convenient
for the establishment of key personnel plans such as hiring planning, recruitment, and training.
4.2.2. Complete the steps in the recruitment process
4.2.2.1. Plan your recruitment details
4.2.2.2. Develop content of more attractive and detailed recruitment announcements

4.2.2.4. Evaluate the recruitment process
4.2.3. Complete the steps in the selection process
4.2.4. Completing work analysis and assessment to arrange and use human resources in a
reasonable manner
4.2.5. Completing the work of motivating employees to attract and maintain high quality human
resources
4.2.6. Some other solutions
4.3. Some suggestions and recommendations

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In recent years, many companies have invested in high-tech agriculture such as Vinamilk,
Masan, Hoang Anh Gia Lai ... more and more competitors appear on the market, so the company
must have a personnel strategy to recruit and retain key positions and talents.
First of all, the Company needs to complete remuneration, salary, bonus, insurance and
training policies ... to attract highly qualified and skilled employees. Completing this policy also
contributes to perfecting the recruitment of human resources of the Company in general and the
recruitment of key personnel in particular.
Continuously equipping and improving professional knowledge for staff working in
recruitment. In the process of recruitment interview, let candidates can show their full capacity, the
recruitment board does not say too much, taking time to exploit information and capacity of
candidates.
Education in Vietnam still has many shortcomings, learning is still not align with practice, it
is still theorical so after studying in the school, and students still do not meet the requirements of
jobs and careers. From there, it have greatly influenced the quality and efficiency of the recruitment
process.
The government needs to pay more attention to the education and training system to
improve people's intellectual standards, raise social awareness. To ensure this, the education system
must be improved both in terms of facilities and teachers in order to train people both in terms of

quality and professional knowledge.
The government should have policies to support students in contact with the enterprises
from the second year and the third year to soon get familiar with the reality, so that after graduation,
they are not embarrassed and have can easily absorb the work.
In particular, the government should also manage more closely the job centers, so that these centers
are really an effective bridge between employees and enterprises so that when the two sides need,
they do not worry fraudulent centers.... There are many good job centers, besides there are many
fraudulent centers. Therefore, departments of state need to learn and control these centers in the
process of licensing and operation.
4.4 Recommendations
From the study it is realized that recruitment and selection is of great importance to every
organization, though an integral part of human resource planning and development, it application
and operation and challenges makes its practice quite difficult. These recommendations are
therefore made to help make these practices more effective.
4.4.1 Recommendation #1: All applicants must be treated fairly; issues of favoritism should be
avoided while giving the chance to all.
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4.4.2 Recommendation #2: Employee referrals though a good idea should be minimized to cater for
a certain number of people rather than a whole scale opportunity. That gives room to favoritism and
at times employment of individuals who might not contribute meaningfully to organizational
output. The human resource department should appraise employees to help them give off their best
and help improve performance of employees; this will always keep employees on their toes to give
off their best.
4.4.3 Recommendation #3: Refresher courses must be organized for employees to be abreast with
trends in the ever growing market.
4.4.4 Recommendation #4: THMF has a general recruitment procedure for all positions. The
company has not make the separated procedure for key human resources yet, therefore, THMF
should make the new ones for this important part.

4.5 Key Findings
The following are the major findings from the study:
4.5.1 Recruitment and Selection Practices of TH Milk Food JSC.
Miyake, (2002) indicated that advertising is usual for job vacancies, while some applicants are
sometimes recruited by word of mouth, through existing employees (employee referrals). Besides
being cheaper, people recruited by word of mouth stay longer because they have a clearer idea of
what the job really involves. This assertion was shared by most respondents with regards to
recruitment and selection practices at TH Milk Food JSC. The research revealed that TH policy or
practice on recruiting and selection was based on several units; the first is the internal recruitment
and invitations from applicants from the general public. The first is analysis of the various
departments to find out if there are vacancies to be filled. The various departments search within its
staff to find competent members to fill job vacancies. When that fails employee referrals are used
where employees are allowed to recommend potential employees for the various departments.
Where the general public can all apply for the positions available. Shortlisted applicants are
invited for an interview and subsequent selection. Some of the methods used in recruiting and
selection of employees are through employee’s referrals, employment agencies, professional
associations and through adverts in the various dailies. The research also revealed that the company
had structured ways of selecting new employees. The first is that potential employees must have the
necessary or right educational background before they qualify for an interview which is the next
stage once a potential employee is shortlisted. Training and orientation is the next stage if an
individual is selected or recruited.
4.5.2. Recruitment practices and performance
Randall, (1987) believes that recruitment, as a human resource management function, is one
of the activities that impact most critically on the performance of an organization. This is because it
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is understood and accepted that poor recruitment decisions continue to affect organizational performance
and limit goal achievement. The study revealed that recruitment and selection practices have improved
performance of employees and the company. The selection and recruitment process has helped them

improve upon their performance at the company and in what they do. It was also revealed that orientation
and subsequent job training had added to their stock of knowledge of most employees which help them
effectively carry out their duties. Respondents from HR department on the other had stated that the
selection and recruiting method had led to the employment of competent staff while at the same time
selection practices help give the chance to employ qualified candidates. In spite of the above some
respondents were of the view that the recruitment and selection practices have not improved performance
as orientation and job training are general and most often not linked with the job.
4.5.3 Challenges Associated with Recruitment Practices for key human resources in THMF.
A common problem in recruitment and selection is poor HR planning. The key goal of HR
planning is to get the right number of people with the right skills, experience and competencies in
the right jobs at the right time at the right cost. Detailed and robust recruitment and selection
policies, such as recruitment and selection procedures, assessing criteria, talents auditing and
processing the information about the labor market are important in recruiting and deploying
appropriate employees at the right time. (Kaplan and Norton, 2004) despite the above it was
realized that THMF is faced with other challenges in its recruitment and selection practices. The
major challenge facing THMF in its recruiting and selection practices is lack of key talents in the
job market for specialized areas within the company. Competition is another challenge facing
THMF in its recruiting and selection practices. The hi-tech agricultural market in the country is now
very competitive thereby there is a rush for those with the experience and skills to help the various
companies float and have competitive advantage over others. This therefore makes the competition
for skilled labor in the field difficult. Labor turnover of key employees is another challenge faced
by THMF in its recruitment practices. From the survey it was realized some employees immediately
after employment vacate or leave their post and take on a different one leading to a loss to the
company, the challenge is therefore how to retain such employees once they are employed.
4.5.4. Ways to Improve THMF’s Recruitment Practices in general and Key Manpower Recruitment
in particular.
The analysis revealed that THMF has policies and practices with regards to recruiting and
selection of employees, the following were given to help improve upon such practices. Respondents
stated that the procedure for recruiting and selection should be strictly followed in order to ensure
that the right materials are provided for the company. Procedures such as educational or academic

qualification, experience and interviews all help select the best of candidates for the company.
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It was realized that equal opportunities should be given to all applicants who apply for jobs at
THMF to help ensure fairness in the selection procedure and not to hand others undue advantage
over others. Moreover it was realized that to make the selection and recruitment procedure complete
qualifications should be stressed and should also be linked with the job to be done as most
qualifications do not much the job to be done.

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CONCLUSION
Recruitment of human resources is an important activity in human resource management.
Especially when human resources are crucial to the development of a business. Recruitment of
human resources is one of the basic stages of Human Resource Management, in order to provide
input for this process.
It can be affirmed that Human Resource Management is the most important factor to help
businesses survive and develop in the fiercely competitive market. To manage human resources to
promote the effectiveness of their roles, they should be a connection between the links and activities
with each other. Therefore, in the recruitment process, if there are no clear policies and criteria, it
will greatly affect the production and business activities of enterprises.
In this thesis, the author has studied deeply about "the recruitment of key human resources
at TH Milk Food Joint Stock Company" to understand more clearly the importance of recruitment
in an enterprise in general and THMF JSC in particular. By this way, the author analyzes the
situation and proposes some appropriate solutions to build a key personnel recruitment strategy at
the Company.

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