UNIVERSITY OF ECONOMIC AND BUSINESS FACULTY OF BUSINESS AMINISTRATION BUILDING STRATEGIC HUMAN RESOURCE MANAGEMENT MODEL OF YUSEN LOGISTICS CORPORATION IN VIETNAM Supervisor: Dr. Long Tien Do Student’s name: Nhuong Nghia Thi Student ID: 09050300 Intake: 2009 — 2013 Hanoi — May, 2013 ACKNOLEDGEMENTS During the time of preparing and completing my report, I was received numerous support and encouragement from many people. And this is hereby to express my sincere gratitude to them. First and foremost, I would like to give my special thanks to my supervisor, Dr.
Do Tien Long for providing me with valuable recommendations and helpful materials. Despite his busy work, he spent much time on reading my draft and helping me correct the mistakes carefully and kindly. Working with him, I gained a deeper knowledge background about how to conduct an internship report. Second, I wish to express my gratefulness to Mrs.
Ngo Ich Truong, my instructor at Noi Bai office — Yusen Logistics Corporation for providing me with important guidance for my work and also necessary data for this report. I also want to show my appreciation to all other staff at Noi Bai office, from whom I have received many support. Last but not least, my sincere thanks are devoted to University of Economic and Business, Vietnam National University, especially the academic board for providing me such a chance to improve myself and gain helpful experiences. Student Nghia Thi Nhuong TABLE OF CONTENTS INTRODUCTION.ssccsccsvsonevssceonesnseesesssensoencesnnennsanstsennssonsnenenasvnstadonsneasenenatascnnsansenwenaseneen 8 CHAPTER T LITERATURE REVIEW ooscncnrssarsconseroxnnesnnsnersossnentacasenentannensnnenosansnenneecine 13 Tall, Homan Resource Mana cen ent teres synwencsnsouesssaencomysensumeresnnunnnnocermcass 13 1.
Concept and Roles of Human Resource Manqg©€Im€PI. Objectives of Human Resource MÍqH4g€€HI. Strategic Human Resource Management Model .-- ---« «<< <-<c+-<<exe+ 14 Ledcls (CNGEDÍÑbinsetsariietatiiavoitiiitiEottniitr2VfiaVös6E1SS\ Characteristics of Strategic Human Resource MianagemeHi. The Strategic Human Resource Model and Its Hypothesis.
Ly CHAPTER II: RESEARCH CONTEXT AND METHODOLOGY. 23 25d RESEAION CONGR o0106000000RSQGGGD DEN EOIIDNGIEEIQIQXHEHASGHENESERNAERAIVMSR 23 old, Fuser LOGishcs COPPOVAtion, gutttqigiit6t§t4llgogevilitsqi@igiasivaiieqavssuae 23 2. Yusen Logistics Noi Bai Branch- Noi Bai OffiCe .ccccccccccecscssesssesecesesessesesesecens 31 Debi CUNO sss tis iMAC DIET 33 371 BHVironmental Analy eis tra 000D HGDEDEOWEDIGREIAGIGRGGGEHIaGRRBqQQiNbagt 34 3. Organization Mission and Goals AnalySis.
Analysis of Organizational Strengths and Culture. Analysis of Organizational Strategies. Choice and Implementation of Human Resource StrategIes. Planning Human Resources.
Attracting Human Ì€SOHFC€S. Placing, Developing and Evaluating Human Resources. Motivating and Rewarding Human ReSOUrCeS .cccccssecsscssesseseseceseesseeescesseeses 63 SK, RAGE FLT PCR ccorcxsccsnserexnwnene seid mia AORTA RASA 64 CHAPIBRELTY FINDINGS AND DIRCUB (N6nh 69 4. Difficulties in Building Strategic Human Resource Management Model in Viétiidini'S lORISHCS GGTTID HH go na 00 4G ames aumeae aNre RS 69 4.
Review and Evaluate the Strategic Human Resource Model of Yusen Logistic Copp Oration 18! V I6RTTfiirssssxayonsstggtist0044343885 007803609G06004E00994530S0E6GI334iE60081995000031038899089938. Proposals to Yusen Logistics Corporation osciscccsssisscasssessceceensscsssansesssaoranesrmearvecsase 75 CO URI eeceerecrneseeren erence ORE 77 RE Ea 2a at diiidGdotttiitgjGiGSGSioataagzsan 78 APPENDIX As INTERVIEW QUESTIONAIRE caee` 80 APPENDIX B: NARRATIVES.ccsssccccossorsseserresssssrsoessocssesessesssssoceeneosonenesesconsonees 81 LIST OF CHARTS Chart 3.1: Vietnam GDP Growth Rate 2006-2012 and estimated in 2013.2: Vietnamese Sectorial Growth from 2007 to 2011:.3: mports- exports and Trade Balance of Goods in Vietnam 2005-2012.4: The Toal Export of Top Ten Goods in 2012 Compared to 2011 0.5: The Total of Top Ten Goods in 2012 Compared to 2011.6: Vietnamese Age Structure in 20 Ï2. -- Ă ch ng ng yey 42 LIST OF FIGURES Figure 1.1: A Model of Strategic Human Resource ManagemenI.1: General Meeting of shareholders at Yusen Log1stics.1: Yusen's Corporate Structure in North of Vietnam.1: Global: Network of Yusen Logistics: .1: The Medium Business Plan of Yusen Logistics.2: The Fusion Stage or Y sen L06ISCSiosacosotvBA0666003660300280100 836608385888 50 Figure 3.2: 3D Management Strategy in Yusen L,oB1StICS.3: Yusen Logistics's Business Strategy. cành He 52 Piguré 5.4: Sales Statens it Xusền LÀE TSHGE daaqqqaaddadaddatddtiidittiijadissauuaosi 53 Figure 3.5: Area Strategy 1n Y usen Logistics s.1: GSEP OV€TVICW.
HH TH nhờn 60 LIST OF TABLES Table 2.1: History of Building and Developing of Yusen Logistics .1: SWOT Analysis of Vietnamese Logistics Industry.--‹- «55+ 44 LIST OF ACRONYMS GSEP: Global Sales Enrichment Program. GDP: Goss Domestic Product HR: Hunan Resource MIL: MSC Institute of Logistics ABSTRACT This thesis finds out how global logistics company like Yusen builds the strategic human resource management model and exam this model in Vietnamese environment, using the strategic human resource model (MrGraw- Hill, Ryerson, 2000). Data used in the thesis was collected by literature, talking with people and personal interview method. Throughout find and exam Yusen’s strategic human resource management model.
The result shows that the strategic human resource management model of Yusen is built carefully and cautious step by step, however, it operates not so effective and still need to change a little to fit to Vietnam’s condition. In addition, based on these findings, the thesis also gives some suggestions for Yusen Logistic Corporation to further improve building strategic human resource management model in Vietnam. INTRODUCTION Background Human resource has always considered as one of main factors that make the success of company. The company cannot remain and get competitive advantage in the long time without labor force even though it has modern technology, good quality service, and robust infrastructure.
The human makes the difference between companies. Thus, improving the contribution of human resources is so ambitious and important; and all companies must create specialized human resource departments to enhance the contributions of people and manage human resource. Managing effectively human resource will help company improve the productive contribution of individuals while simultaneously attempting to attain other societal and individual employee objectives. This means that human resource management is critical to the success- indeed, even the very survival- of the organization.
Knowing the importance of human resource, many Vietnamese organizations have concentrated in human resource. However, there are still many organizations not focus on training personnel. According to the survey of Human Resource Status 2011 of 437 Vietnamese companies, there is nearly 34% of companies have no strategy for training human resource; 43% of companies have been investing for human resource and the human resource department. However, there is 25% companies still stop on thinking without action; 30.86% companies show that human resource management has stopped in administrative personnel.
Thus, the capacity of the company’s management is really weak. Otherwise, there is only 0.3% companies have interaction with the school in recruiting. There are many companies appear indifferent to high quality human resource of new graduated students from school. All above shows that Vietnamese companies have serious problem in human resource in all areas, especially, in economy.
The lack of high quality human resource occurs in all industries that have long time development, and more seriously in new industry such as logistics- a new and hot industry in Vietnam now. Along with the development of the productive forces and the effective support of scientific and technical revolution, volume of material goods and products is produced more and more. Due to the gap in the field of traditional competition about quality of goods or decrease in price, manufacturers have turned to compete in inventory management, speed of delivery, stream of movement process of raw materials and semi- finished products; and in the physical distribution system management of enterprises also. In this process, the development of logistics has more strongly opportunities in all business sectors.
For the first time, logistics is merely seen as a new method provided high efficiency for business. Following the development process, logistics has been specialized and developed to become an important service industry in international trade. In recent years, logistics has developed quickly and strongly contributes to GDP in many countries around the world such as EU, the United States, and Japan, South Korea, China, especially Vietnam. State of Problem Going with the development of economy and increase in import- export activities and investments, logistics service Vietnam has a powerful development and is one of great potential developing industries.
According to Association of Vietnamese Logistics, there are over one thousand companies operating in the logistics field. Vietnamese logistics companies have strong growth in many different types of services, and have significantly contribution to the flow of goods in domestic market and increase import- export. However, in fact, the Vietnamese logistics companies only supply 25% of the market demand and stop on providing individual services. It is result from Vietnamese logistics companies are mainly small and medium enterprises, the size and capacity are limited, the cooperation and competition are very weak, the competitiveness is low, and especially it is the lack of human resource.
Through survey data of the Institute of Economic Research and Development- University of National Economics of logistics activities in ten 10 provinces and cities in the country in 2012 showed that 54.1% of respondents said that there was lack of staff with the expertise and 80.26% labor force had just trained over job. Logistics human resources are in the gap between school’s training and business practices. Many executives of logistics companies admitted that there is over 90% staff had to train again and it took almost a year to new employees can work in proactive. According to information from the MGC Institute of Logistics (MIL), Vietnam is approximately 1.5 million workers employed logistics and it only meets about 40% demand while the growth rate of logistics industry average annual increases 20-25%.
Moreover, in the logistics industry today, there is about 3% professional training workforce. Tran Chi Dung, Head of Training MIL said: Institute Survey of personnel logistics quality showed a 53.3% enterprises are lack of staff expertise and knowledge of logistics , 30% of companies have to retrain employees in the process and only 6.7% enterprises are satisfied with professional staff. This suggests that the logistics workforce quality too low. Purpose and Research Questions These above prove Vietnamese logistics companies as well as all Vietnamese companies are facing with the human resource problem.
Thus, building the strategic human resource management is very necessary to all Vietnamese companies in general and Vietnamese logistics companies in particular. However, it is difficult problem to Vietnamese companies and almost Vietnamese logistics companies do not find an effective strategic human resource management model for their own company. It is reason why the thesis is conducted. The purpose of this thesis is to find how a global logistics company like Yusen builds the strategic human resource management model and exam this model in Vietnamese environment.
Methodology This research is a result of two- month internship in Yusen Logistics, Noi Bai branch, 3 Floor, Office Building of Noi Bai Cargo Terminal- Noi Bai International Airport, Soc Son District. In this period, the author observed employees working in 11 the company, learned from them and directly tool part in some work in the CC & CS section. This research used literature, talking with people and personal interview method to find and exam the strategic human resource management model of Yusen Logistics Corporation in Vietnam. Delimitations and Limitations: - Delimitations: the study confined itself to find about building strategic human resource management model in Yusen Logistic Corporation in Vietnam.
The study was conducted in Hanoi. - Limitations: 6 Outline of the Thesis: Beside this introduction and conclusion part, the thesis is divided into 4 main chapters: se Chapter 1: Literature Review This chapter will provide theoretical framework for the research. It concludes fundamental concepts about human resource and human resource management, strategy as well as the research model and its hypotheses used in this research. ¢ Chapter 2: Research Context and Methodology This chapter will describe the context where the research is conducted.
In addition, it will also provide detail research method from preparing for collecting data to analyzing data. ¢ Chapter 3: Research Analysis and Results This chapter will give description of data collected, and then show analysis results. + Chapter 4: Findings and Discussion 12 This chapter will answer research question by showing the efficiency and the gap in the company’s model. 13 CHAPTER I: LITERATURE REVIEW 11, Human Resource Management 1.