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Employee Relations and HRM Practices: A Case Study of Vinamilk, Thesis of Business Management and Analysis

Business Management and Analysis

Typology: Thesis

2018/2019

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ASSIGNMENT 2 FRONT SHEET
Qualification
BTEC Level 4 HND Diploma in Business
Unit number and title
Unit 3 Human resource management
Submission date
25/06/2020
Date Received 1st
submission
Re-submission Date
29/06/2020
Date Received 2nd
submission
Student Name
Nguyen Hoang Thao Nguyen
Student ID
GBS190157
Class
GBS0805B_NX
Assessor name
Truong Anh Tuyet
Student declaration
I certify that the assignment submission is entirely my own work and I fully understand the consequences of plagiarism. I understand
that making a false declaration is a form of malpractice.
Student’s signature
Nguyen Hoang Thao Nguyen
Grading grid
P5
P6
P7
M4
M5
D3
pf3
pf4
pf5
pf8
pf9
pfa
pfd
pfe
pff
pf12
pf13
pf14
pf15
pf16
pf17
pf18
pf19
pf1a
pf1b

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ASSIGNMENT 2 FRONT SHEET

Qualification BTEC Level 4 HND Diploma in Business Unit number and title Unit 3 Human resource management Submission date 25/06/2020 Date Received 1st submission Re-submission Date 29 /06/2020 Date Received 2nd submission Student Name Nguyen Hoang Thao Nguyen Student ID GBS Class GBS0805B_NX Assessor name Truong Anh Tuyet Student declaration I certify that the assignment submission is entirely my own work and I fully understand the consequences of plagiarism. I understand that making a false declaration is a form of malpractice. Student’s signature Nguyen Hoang Thao Nguyen Grading grid P5 P6 P7 M4 M5 D

Summative Feedback:Resubmission Feedback: Grade: Assessor Signature: Date: Internal Verifier’s Comments: Signature & Date:

You are assigned to design a training package for a specific position in one year. You can freely choose a position in a company. You are required to present to the leadership team of the chosen company to get funds for the training plan. Accordingly, the training plan should cover following contents: (1) Job specifications of the chosen position (2) Identify and critically evaluate key elements of employment legislation which may have an impact on your training plan proposal (i.e. labor regulations, regulations related to a specific profession if related, etc.) (3) A description of the proposed training which includes different elements of your training design and evaluation (4) Critically provide the rationale for your proposal and potential benefits that staff may achieve after participating into your proposed training Grading criteria LO3 Analyse internal and external factors that affect Human Resource Management decision-making, including employment legislation P5 Analyse the importance of employee relations in respect to influencing HRM decision-making. P6 Identify the key elements of employment legislation and the impact it has upon HRM decision- making. M4 Evaluate the key aspects of employee relations management and employment legislation that affect HRM decision-making in an organizational context.

LO3 & 4

D3 Critically evaluate employee relations and the application of HRM practices that inform and influence decision- making in an organizational context. LO4 Apply Human Resource Management practices in a work-related context P7 Illustrate the application of HRM practices in a work-related context, using specific examples. M5 Provide a rationale for the application of specific HRM practices in a work-related context.

LO3 & 4

D3 Critically evaluate employee relations and the application of HRM practices that inform and influence decision- making in an organizational context.

Table of Contents I. INTRODUCTION. ................................................................................................................................. 6 II. THEORY AND APPLICATION. ............................................................................................................... 6

1. Job specification of the chosen position. ......................................................................................... 6 2. Analyze the importance of employee relations in respect to influencing HRM decision-making (P5). ........................................................................................................................................................... 7 3. Identify the key elements of employment legislation and the impact it has upon HRM decision- making (P6)****. ............................................................................................................................................. 10 4. Illustrate the application of HRM practices in a work-related context, using specific examples (P7). ......................................................................................................................................................... 12 _ A description of the proposed training_*. ............................................................................................. 14 a. Workforce planning .......................................................................................................................... 14 b. Recruitment ...................................................................................................................................... 14 c. Selection ........................................................................................................................................... 15 d. Learning and development ............................................................................................................... 16 e. Performance management ............................................................................................................... 17 f. Reward management ........................................................................................................................ 18 5. Evaluate the key aspects of employee relations management and employment legislation that affect HRM decision-making in an organizational context (M4). ............................................................. 19 6. Provide a rationale for the application of specific HRM practices in a work-related context (M5). ........................................................................................................................................................ 19 7. Critically evaluate employee relations and the application of HRM practices that inform and influence decision-making in an organizational context (D3). ................................................................. 22 III. CONCLUSION. ................................................................................................................................... 24 IV. REFERENCES. ..................................................................................................................................... 25

  • Balance and plan revenue and expenditure to pay domestic and foreign currencies; submit foreign currency trading plan to the Bank.
  • Deploy supplementary services of banks, advancing the quality and utility of payment.
  • Working with banks on procedures, regulations, update bank fee schedule.
  • Guide the relevant departments on payment procedures and vouchers following regulations.
  • Make reports related to payment and other related work as assigned by management. Qualification:
  • University degree in Accounting, Finance, Banking, or Auditing. Experience:
  • Minimum of 2 - 3 years of experience in accounting work, or in the same position at large-scale companies. 2. Analyze the importance of employee relations in respect to influencing HRM decision-making (P5). To operate a thriving company is not only about selecting the right people, and giving your employees the support to accomplish those objects, but also talking about the significance and role of participation and interaction of staff. Employee relations (ER) relate to concerns of overarching employment or collective workforce policy, especially where it involves extensive matters from bargaining, the governance of the employment relationship by social actors, and organizations for the distillation also appearance of the voice of the worker (Brewster et al ., 2016). Employee relation notes to a firm's attempts to handle relationships among employers and employees. They include the procedures and methods used by managers to deal with employees either collectively within their trade unions or personally (Armstrong and Taylor, 2014). Employee relations policies represent a business's perspective on what kind of links among directors and workers and their unions are required, and how to handle pay–work bargain. The divisions comprised of employee relations policies are trade union recognition, collective bargaining, employee relations procedures, participation, and involvement, cooperation harmonization also working organizations (Armstrong and Taylor, 2014). The employee relation strategy sets out how to accomplish employee relationship policy goals. The purposes meant by employee relations strategies may guide the business towards any of the following. Firstly, change forms of recognition, including each union identification or identification. Next, it modifies the information and content of the procedural agreement. Moreover, employee relations strategy creates new bargaining structures, including decentralization or single-table bargaining. Furthermore, the attainment of raised levels of engagement by involvement either participation. Intentionally neglecting trade union delegates to interact undeviatingly with workers. Increasing the degree to which management control operations in such fields as adaptability. Growing a ‘partnership’ with trade unions, knowing that employees are stakeholders and that it is to the benefit of both parties to work together. Employee relations strategy also

generally enhancing the employee relations climate to produce more harmonious and cooperative relationships. Unions are existing collective organizations of employees with the widespread aim of guaranteeing that the benefits of workers also respected and advanced (Brewster et al ., 2016). The trade union is an organization of members of a company whose members must be made up primarily of workers. One of the main aims of the trade union is to defend also enhance the gains of its employees at the business. Most unions are self- governing of any employer. Nevertheless, the union attempts to promote a close-knit working connection with the employer. Employee voice is how individuals talk their viewpoints to their employer as well as power elements that influence them at work. Boxall and Purcell (2003, p. 162) explain voice as a full variety of processes and structures which permit, and at times empower employees, immediately as well as indirectly, to provide to decision-making in the company. Employee voice outlines organizations for a two-way conversation to occur that enables employees to influence issues at business and involves the processes of engagement, participation, uphill problem-solving, and higher interaction (Armstrong and Taylor, 2014). The openness of the interaction of employees not only enhances the correctness and efficiency of work but also seems to be able to solve most other obstacles. It encourages individuals to be more active in cooperation also problem solving, increase the creativity and intelligence of concepts, and quickly handle violations of corporate discipline. Employee participation applies to company projects that employees join in mutually to reach a general goal. Employee participation (EP) requires workers to exert a countervailing and higher pressure on management direction, which obligation does not mean the union of purpose within managers and employees (Bratton and Gold, 2007, p. 451). By contrast, Employee involvement (EI) perceived to be a ‘softer’ form of participation, implying a unity of interest among workers and managers, and emphasizing that involvement should be focused on the workforce as a whole rather than being restricted to trade union channels (Bratton and Gold, 2007, p. 451). The employee involvement determining is totally about the chances for employees to help produce decisions at their workplace. The employee involvement definition refers to the straightforward interaction among management and employees that promotes workers to take ownership of the outcome of a plan.

3. Identify the key elements of employment legislation and the impact it has upon HRM decision-making (P6). Essential employment law includes discrimination law, equal pay law, health, and safety law, family-friendly employment law, the national minimum wage. Many employment legislation that changes the decision- making of HRM will be analyzed. Firstly, the main protected characteristics of discrimination law are sex, race, ethnicity, sexual orientation, religion or belief, age, disability, pregnancy and maternity, marital status, transsexuality. In Vietnam, an employee is a person who is full 15 years or older, able to work, works under a labor contract, gets paid, and is subject to the management and administration of an employer (Thuvienphapluat.vn, 2019). Ensuring the principle of gender equality; stipulate the labor regimes and social policies to protect female workers, disabled laborers, elderly laborers, and young workers. According to the provisions of the 2012 Labor Code, employees have the right to work, to deliberately choose careers, occupations, vocational training, develop their professional qualifications, and not be discriminated against. Decree 95/2013 provides a fine of VND 5 - 10 million for discriminating against gender, ethnicity, color, social status, marital status, beliefs, religion, HIV infection, disability in employment, employment, and labor management (Nguyen, 2017). The second law is the equal pay law. There are three main types of works that need to have equal pay. A woman and a man are doing the same or similarly at work. Work-related as equivalent: both sexes are doing various work in nature but with the likewise raking under a job evaluation scheme. Work of equal value: women and a man are doing different work but with the same demands. For instance, ability, purpose, type of decision making. Next, health and safety law is to support individuals who have suffered an injury as a result of their work to seek damages against their employers. Criminal law has the objectives are to ensure the health, protection, and welfare of personalities at business. Law is to protect the society from jeopardies resulting from workplace activities, manage the application and storage of hazardous substances, and check the probability of critical environmental emissions. Employers will arrange a medical exam at least once a year for workers, and twice a year for employees doing heavy, dangerous or threatening occupations or jobs, employees with disabilities, underage, and elderly employees. The work accident and occupational disease insurance fund is a sub-fund of the social insurance fund. The premium rate will be calculated based on the employees’ monthly salary (Vietnamlawmagazine.vn, 2015). Moreover, family-friendly employment law is the right for pregnant workers to receive consistent time off work to serve ante-natal medical appoints without missing any payments. The right for a mother to take time off before, during, and after her infant is born. In Vietnam, female employees are entitled to 6 months of maternity leave before and after giving birth; Prenatal leave not exceeding two months. In case a female

employee gives birth to twins or more, from the 2nd child onwards, each additional child is allowed to an extra month of leave for each mother (Thuvienphapluat.vn, 2019). During maternity leave, female employees are entitled to maternity interests according to the law on social insurance. Male workers when their wives give birth, employees who adopt children under 06 months of age, female workers surrogacy, and employees who are mothers requesting surrogacy are entitled to take leave for maternity benefits according to the provisions of the law on social insurance. Finally, the National Minimum wage means employers are required to pay salaries to employees more than the national minimum wage. Deductions from wages: some deductions are legally regulated. Others could be considered as unlawful and can lead to action in the employment tribunal. The minimum wage is the lowest wage paid to employees who perform the most uncomplicated jobs under normal working conditions to ensure the minimum living standards of workers and their families, following the conditions for payment, socio-economic development. The minimum wage is established by region, install by month, and hour. The raised rates of the monthly minimum wage in Vietnam in 2020 are described as follows, based on the expense of living in each area. Source: Samuel, ( 2019 ). _Application_* Vinamilk strictly and thoroughly complies with laws of Labor Law and Law on Occupational Safety and Health. At the systems, Vinamilk sets the grassroots functional safety and hygiene councils, assigns the staff in charge of the health works, sets up the teams for safety and hygiene. Vinamilk makes annual programs on industrial safety and health, risk judgment linked to occupational accidents and occupational health (Vinamilk.com.vn, 2018). Vinamilk provides sufficient individual protective devices and mandatory compliance during the implementation of the work. The company directs periodic health checks and tests for functional disease risk detection for workers. HRM carries out periodic evaluation programs (every six months) on occupational safety and health of the company level for Units (Vinamilk.com.vn, 2018). HRM of Vinamilk ensures an attractive salary, reward, and revenue. They maintain optimized working conditions. Vinamilk makes sure minium wage and designs jobs that pay good salaries, give welfare management, take care of material and

Source: Kantarworldpanel.com, ( 2020 ). Assessing the results of Vinamilk, in the Brand Footprint report on the Vietnam market, Kantar Worldpanel commented that Vinamilk has once again been recognized as the most chosen manufacturer in Urban (4 main cities) in 8 consecutive years. This domestic manufacturer has reached over 80% of Vietnamese households thanks to advertising and media activities emphasizing the nutritional value of their products as well as regularly innovating images with many the new product was launched to meet the new needs of consumers (Kantarworldpanel.com, 2020). From that, it shows that consumption of Vinamilk products increases and is popular among Vietnamese people. Vinamilk increased the market share of milk consumption in the United States. In December 2013, Vinamilk bought a 70% stake in Driftwood Dairy Holding Corporation ("Driftwood"). Then, in May 2016, Vinamilk expanded its ownership in this company to 100%. Driftwood currently trades a broad range of products such as fresh milk, yogurt, fruit juice. It has been a supplier of milk to approximately 100 schools in the last 50 years in Southern California. With a great deal in the US market, Driftwood's total revenue is more than USD 116. million, equivalent to VND 2,674 billion (vietnambiz, 2019). In 2019, Driftwood's total revenue reached $ million. Moreover, Vinamilk was officially granted the export code to China at the end of February 2020, after less than two months, in the condition of Covid-19 epidemic, it must strictly comply with regulations on disease prevention and social isolation. But on April 16, 2020, Vinamilk completed production steps to export the first batch of Ong Tho condensed milk to China, while the country is still applying strict epidemic control measures. This will be an opportunity for Vinamilk to increase export revenue in China, and strive to make Vietnam one of the five largest dairy exporters to China in terms of output. In the context, Vinamilk increasingly develops markets and exports to other countries. HRM recognizes that human resources need to be supplemented positions suitable for the working environment.

HRM recognizes that the market is expanding, so it requires a number of qualified employees. It is imperative that human resources managers provide strategic resourcing, learning, and development programs appropriate to the international market. In particular, accounting and finance departments must operate regularly and need extremely qualified human resources. Therefore, HRM assesses the need of a company in balancing and creating revenue and expenditure plans to pay foreign currencies, submitting foreign currency transaction plans to the Bank, making reports related to payments, and payment orders for domestic and external suppliers. HRM researches and employs payment accountant to handle this work. _ A description of the proposed training_*. a. Workforce planning In the year 2019, Vinamilk restructured offices and divisions to be more in line with their assigned purposes and duties and to guarantee efficiency workers for the arising job (Vinamilk.com.vn, 2019). Organization during the year were maintained at a steady level, without extensive or unexpected changes. The position from senior administrator to the middle manager and expert is always complemented recruitment needs. In 2020, based on the labor demand plan and the production and business situation of Vinamilk as well as the growth, it is necessary to add two more payment accountants in the Ho Chi Minh city. It helps the company have more human resources to organize financial matters, make payment orders for internal and external suppliers, etc. b. Recruitment High-quality human resources are the grounds for the sustainable development of Vinamilk today. Hence, Vinamilk always attaches significance to quality, clearness, and fairness in recruitment. Vinamilk recruits through multiple methods include:

  • Post recruitment on the mass media: Vinamilk website, in combination with the prestigious recruitment co-workers in the market with Vietnam’s diverse candidate data such as Vietnam works, Jobstreet, Anphabe, Indeed, Linkedin.
  • Vinamilk makes recruitment meetings at top universities nationwide. That is an opportunity for learners to employ and have more details about Vinamilk to determine their career path. Recruitment activities occur inside the university campus, especially in universities about Accounting, Finance, Banking, or Auditing, which helps students be confident to show their abilities in front of the recruiter.
  • Vinamilk builds the Internship Program creates opportunities for students to have practical experience. At Vinamilk, students will be thoroughly facilitated to practice with our talented and professional staff. They will have a chance to support a lot of knowledge, practice skills. HRM also views this program as an opportunity for Vinamilk to contact potential and passionate future candidates. Talent students who succeeded from the Internship Program will be selected to operate permanently for Vinamilk.

d. Learning and development Newcomers will learn through joint training programs in Vinamilk company. Firstly, soft skills training for workers: communication skills, planning, teamwork skills, influencing skills, thinking and problem-solving skills, presentation and conferencing skills, contract negotiation skills, communication in English, and time management skills, etc. Secondly, employees will be training to update legal provisions on labor, tax, and accounting, professional medical knowledge updating. Next, employees will be aiming to update legal provisions on labor, tax, accounting, and professional medical knowledge updating. Moreover, employees are trained to update legal provisions on labor, tax, and accounting; professional medical knowledge updating. Program dates: August 20, 2020: Mrs. Bui Thi Huong, Executive Director - Human Resources Administration & PR. Begin August 21, 2020: VMP Global Training. Time on Sundays, 8-10 a.m. Tuition : $ 4500 Vinamilk also provides online course for employees. Firstly, Financial Accounting Principles. Be it a well-known and prosperous company holding a solid knowledge of financial accounting principles is necessary for producing decisive company decisions. The program includes crucial accounting principles, such as how to record transactions using journal entries, and how to arrange a trial balance, balance sheet, revenue statement, and cash flow statement (Extension.harvard.edu, 2020). Other subjects include financial statement investigation, predictions, and pricing. Learners emerge with a more extensive understanding of accounting methodology and its application in various market conditions. Program terms: Begin August 10, 2020: V. G. Narayanan, Ph.D. and Thomas D. Casserly, Jr. Professor of Business Administration, Harvard Business School. Time on demand. Begin August 27, 2020: James F. White, MS. Assistant Vice President for Finance and Controller, Berklee College of Music. Time : on Wednesdays, 8-10 p.m. Tuition: Graduate: $ 2900 Next, Cost Accounting course. This course explores the concepts and processes that underpin the expansion of cost accounting systems for management determinations, cost administration, and performance recording. Cost accounting can have a straight impression on product pricing, planning final profits, and generating value for the firm and its consumers. Topics involve cost analysis and cost control, cost-volume-profit study, work costing, activity-based costing, tools for outlining and direction, master budgeting also responsibility accounting, flexible budgeting, and variance analysis, and capacity analysis cost information for decision making, relevant information, cost management, profitability analysis, cost allocation and revenues, measurement and control of overhead costs, and sales variances. (Extension.harvard.edu, 2020).

Program terms: Begin August 28, 2020: James F. White, MS. Time : on Mondays, 8:10-10:10 pm. Tuition: Graduate: $ Finally, International Corporate Finance courses are organized for employees. To develop personal staff and create opportunities for employees to work abroad. In a fast-developing and increasingly complicated global business, most significant financial selections cover investments in operations, capital acquisitions, distribution to capital suppliers, mergers, acquisitions, and risk management whole have global perspectives (Extension.harvard.edu, 2020). This course dissolves the company's financial decisions of an international prospect, connecting global diversity in commercial, legislative, and institutional environments. Program term: Begin November 5, 2020: C. Bulent Aybar, Ph.D., and professor of International Finance, Southern New Hampshire University. Time on Mondays, 7:40-9:40 pm. Tuition: Graduate: $ 3100. The total amount the company spends on training and development for an employee is $ 13,400 in a year. There are also some other expenses incurred during the learning process. e. Performance management Vinamilk uses several methods for appraising the effectiveness of employees. As a result, the Company has enhanced the efficiency of employees and the contribution of each member. The overall employee evaluation system in terms of ability appraisal and performance productivity of employees (Performance Appraisal - PA, Management by Objective - MBO) are implemented and more upgraded to heighten performance effectiveness at work. The evaluation makes connections among the Vinamilk’s target and the objective of each unit and leading to the staff level. Employee evaluation relates and contributes useful information for other areas. Employees have self-assessment on their results and improvement in their work. Evaluation builds interactive tools among workers and managers and gives valuable data for expanding training programs. As a basis for a salary and promotion raise for workers who have well done during the year. Employees will force to fill out yearly self-assessment forms and present them to the manager. Through self-assessments, staffs grasp how much they fit expectations associating to work. HRM will base on observing and assessing each employee's productivity monthly, plus the self-assessment of employees, which gives the employee's working scale. HRM presents personnel evaluation with the board from which to decide on reward or promotion.

5. Evaluate the key aspects of employee relations management and employment legislation that affect HRM decision-making in an organizational context (M4). Human resource management is all about making decisions. The role of decision making in personnel is a complicated issue, and using available technology and recruiting software, you will be able to make decisions based on the assessment of all the parts. It includes employment relations and employment legislation. The goals of employee relations policies cover keeping healthy connections with workers as well as unions, strengthening collaboration, guiding labor expenses, and supervising employees, and developing an enthusiastic and trustworthy workforce. When these policies are strongly aligned, HRM presents the foundation for preparing the fitness and logical choices for the advancement of the company with its employees, thereby increasing productivity, the quality of producing works to obtain the company develop fast. Without an employment relationship in the company, things can easily be confused, conflicts between employees and management are not clear, which makes the company easy to get into a struggle. Employees are not satisfied with what they want, working in a state of frustration affecting company productivity. Labor laws and procedures exist to guarantee that everyone knows, which makes HRM's decision understandable and acceptable to staff. In the process of making a labor contract, employees have the right to study their rights and interests. HRM decision-making practices make sure that a logical, honest, and careful approach is applied to address HRM issues. Work time, education, insurance, benefits sections receive HRM based on Employee laws. Over the years, Vinamilk has performed well its human resource management tasks. In parallel with the "hunting" of outside talents, the development of programs to nurture and develop human resources of Vinamilk is highly specialized, meeting the development needs. HRM always allows employees to express their opinions and suggestions through many methods. Vinamilk has not had demonstrations of its employees or contradictions. That is proven when Vietnamese dairy giant Vinamilk continued the best company to work in the nation for the second year in a row as per the 2018 "Best Places to Work" survey, which listed the 100 best workplaces in Vietnam (VnExpress International, 2019). The company's labor relations comply with Vietnam's labor laws, ensuring no use of child labor, no forced or forced labor. All employees shall be established labor contracts under the law and the requirements of the position. A collective working agreement is applied to all employees. Vinamilk supports its employees in many areas. For example, Vietnam Dairy Products Joint Stock Company (VNM-Vinamilk) has announced the information of issuing 9.4 million shares under the ESOP program at a price equal to a quarter of the market price for employees in 2016 (Vuoncaovietnam.com, n.d.). 6. Provide a rationale for the application of specific HRM practices in a work-related context (M5). Vietnam is growing a market with the potential consumption of food and beverages in the region (Vietnamreport.net.vn, 2018). Vietnam Report said that the food and beverage industry currently accounts

for approximately 15% of GDP and tends to increase. At the same time, it accounts for the highest proportion of the monthly expenditure structure of customers, accounting for roughly 34% of the spending level. Source: Vietnamreport.net.vn, (2018). Not only is the domestic market, but Vietnam also has the potential to export food and beverage products, and there are now relatively powerful companies such as Vinamilk that are well-known, competitive, often leading in the domestic market. There is a sufficient basis for export abroad. Vinamilk's development opportunities in Vietnamese food and beverages are high, but when foreign enterprises are actively present in the Vietnam market, on the one hand, there are numerous chances for investment also production cooperation, contributing to diversification goods and utilities, but also pushing expanded competition. However, the profit of the largest dairy company in Vietnam - Vinamilk has stalled in 2018 after three years of achieving double-digit growth. The company recorded more than 10,227 billion dongs, down slightly by 1%. For the whole year, Vinamilk fulfilled 95% of the profit plan and 94.6% of the revenue plan. In a report explaining Vinamilk's business results in previous quarters, the company said that the increase in prices of some main raw materials has reduced gross profit. Source: Bui, (2019).