F11-019 Le Thi Thuy Ha - Assignment 1

OPENING A NEW BRANCH OF VIETINBANK IN MY DINH 1
Explains and assesses all issues related to human resource function and workforce
planning in VietinBank
Table of Contents
Overview of Vietinbank 4
1.0 Business Type and Purposes of Vietinbank 4
2.0 The size and scope of different types of organization 8
3.0 The interrelationship between different types of organization 17
4.0 Purpose of Human Resource Function 19
5.0 Critical issues related to Workforce Planning 22
6.0 Assessment of the Approach to Recruitment and Selection 24
Development and Training, Performance Management and
Rewards Systems
Recommendation 26
References 27
Appendix 35
Opening a New Branch of Vietinbank in My Dinh
Overview of Vietinbank
Viet Nam Joint Stock Commercial Bank for Industry and Trade stands for VietinBank, which is
one of the largest bank of Viet Nam. After separating from the State Bank of Viet Nam in 1988,
it grew up significantly and had a wide branch network with more than 23,000 employees, 155
local branches and more than 950 transaction offices nationwide, seven subsidiaries in Viet Nam,
an overseas subsidiary, two foreign branches in Germany and one joint venture bank
(VietinBank.vn). One of the most important VietinBanks’ milestones is that it officially listed its
shares on Ho Chi Minh City Stock Exchange on 16 July 2009. Overtime, the value of this bank
has been rising considerably. As at 31 December 2017, VietinBanks’ total asset is 1,095,061
VND billion and its total number of shares is 3,723,404,556(Annual Report of VietinBank,
2017). Recently, Vietinbank plans to expand its activities in Hanoi opening new branch in My
Dinh.
This analysis will explain about business type and purposes of VietinBank, comparing it to an
international bank in Viet Nam as well as showing the interrelationship between different
functions within VietinBank and how they connect to objectives and structure of organization.
Additionally, this analysis also explains and assesses all issues related to human resource
function and workforce planning.
1. Business Type and Purposes of Vietinbank
1.1 Background information about different types and purposes of organizations:

There are three main types of organization, including private, public and voluntary sector. In
terms of private sector enterprises, they are usually owned and operated by private individuals.
The aim of this sector is making profits for the owners, increasing market shares as much as
possible and maximizing revenue (Scott, 2018). They can be classified into three legal structures
as follows.
 Sole traders: they are usually possessed by one person who has overall responsibility for
the business. It means that they operate the company and receive all profit from business
activities. Besides this, when the company shuts down, they are accountable for all debts
with private assets (Berk et al., 2013).
 Partnerships: they are set up when two or more persons collaborate to finance and carry
on a business for personal gain. Like sole traders, all partners of these companies are
overall in charge of all obligations incurred during business lifecycle. Additionally, all
decisions about business activities are only made when they are approved by all partners
(Business Essentials, 2010).
 Limited companies: “In law, a company is a corporate association having a legal identity
in its own right.” (W. Ian and B. Chris, 2015). The owners have limited personal liability.
When it comes to public sector, it is owned and operated under the authority of government. The
purpose of public sector is to supply necessary public services as well as to serve people. It has
two legal forms, consisting of public corporations and municipal enterprises. (Flynn, 2007)
 Public corporations: these companies belong to the Central Government. Normally,
chairperson and board of directors are appointed by a government minister to operate the
company on the government behalf. Apart from the main source of finance of public
corporations from Government, public corporations also raise finance from the public.
(Flynn, 2007)
 Municipal enterprises: these companies are managed by local authorities. They provide
public services such as health service, education and so on (Flynn, 2007).
Regarding voluntary sector, these organizations are usually managed by individuals and
survived by source of funding from donating from public and helping from supporters. The
primary aim of these organizations is helping community without making money.
1.2 Activities of VietinBank in the respects of legal structure and its activity type and
purpose
VietinBank is a public corporation. According to annual report 2017 of VietinBank, the State
Bank of Viet Nam has majority of stocks of VietinBank, approximately 64%. Its second largest
shareholder is Mitsubishi UFJ Financial Group, with about 20%.
VietinBank has numerous business activities, including full range of financial services which
licensed by the State Bank of Viet Nam such as capital trading, card services and so on. In
particular, targeted customers of the bank are individual and corporate customer. With personal
customer, VietinBank provides services such as opening different types of bank accounts.
Customers can use these bank accounts to use non-cash services of the bank such as payment,
remittance and so on. In addition, VietinBank also supplies individual customers with personal
loan, deposit, mobile banking. With corporate customer, the bank offers loans, payment and cash
management, international payment and trade finance and so on. Besides this, the bank
implements modern technology in providing convenient services like iPay Mobile, VietinBank
eFAST, Bank Plus and etc (VietinBank.vn).
1.3 The current vision, mission, core values, goals, and objectives of Vietinbank
According to VietinBank Annual Report (2016),
 Vision: to be ranked number one in banking system of Viet Nam and region. A bank has
a wide range of functions and operates effectively.
 Mission: to be the largest bank in Viet Nam, which provides all of financial services with
high professional standards.
 Core values
- Customer orientation: Clients is the first priority of business. The bank commits
clients to providing products and services with the most attentive attitude and tries
desperately to meet all the needs of customers.
- Oriented perfection: the bank puts effort into achieving perfection.
- Consecutive innovation towards modern and professional direction
- VietinBanks’ staffs are reliable for protecting and developing the brand of
VietinBank as well as commit to working responsibly.
 Goals: to become the leading financial corporation, which has the largest scale and works
the most effectively in the banking system of Viet Nam. Additionally, VietinBank puts
effort into developing sustainably as well as improving social security environment.
 Objectives: In 2018, VietinBank set a specific target of achieving a growth rate of total
asset at 12% as well as that of gross loans at 14%. Besides this, VietinBank will continue
to implement restructing project within four years from 2016 to 2020(VietinBank Annual
Report, 2017). Based on the growth rate of previous years and the current business
situation of VietinBank, these targets are fully attainable and completed on time.
1.4 The performance of VietinBank
According to annual report of VietinBank in 2017, as at December 31, total assets of the bank
increase 15.4% compared with that in 2016 and obtaining 101% the goal set at General Meeting
of Shareholder(GMS). This growth helped the bank strengthen the first position in commercial
bank system of Viet Nam in terms of assets. Besides this, total funding went up by 16.2% and
total loan outstanding increased by 18% compared to these figures of 2016(Annual report, 2017).
The successful of VietinBank in 2017 was recorded by many awards. For example, VietinBank
held the first place among banks of Viet Nam listed in the Top 1000 World Banks 2017. It also
was named in Fobes Global 2000 with many another awards (Annual report, 2017). Clearly,
VietinBank had strong performance in 2017.
1.5 Assess the future direction of VietinBank
For the future direction, VietinBank always expects to develop sustainably, constantly improve
quality of services and products. It concentrates on diversifying products and services to increase
source of turnover as well as widen market share. VietinBank commits to the Government in
improving social security environment and reducing poverty sustainably. Moreover, by 2020,
VietinBank orients to establish subsidiary banks in the USA and some countries in Western
countries such as UK, and France (Vietinbank.vn, 2018). It can be clearly seen that the bank
focuses on widening branch network in markets where many Vietnamese lives and works in
those countries. It helps VietinBank reduce risks when establishing and operating new branch
because VietinBank’s reputation attracts a certain number of Vietnamese customers. This source
of customers will make it easier to promote initially.
2. The size and scope of different types of organizations
2.1 Comparison between VietinBank and an international bank in Viet Nam
Viet Nam’s banking system includes the Central Bank, state-owned commercial banks, private
banks, joint-venture banks and international ones (export.gov, 2018). One of the largest
international banks in Viet Nam is Hong Kong and Shanghai Corporation (HSBC). It officially
entered the Vietnamese market in 1870 with head office located at Ho Chi Minh city
(hsbc.com.vn, 2018). Over 150 years of development in Viet Nam, HSBC reached many
achievements and became one of the most notable names in Viet Nam’s banking system.
 The similarities between VietinBank and HSBC
According to hsbc.com.vn (2018) and VietinBank.vn (2018), these banks have several
characteristics in common as follows.
- They consider customer as top priority. They respect their clients and commit to provide
fast and reliable services.
- Their long-term goal is to develop with the sustainable growth rate.
- They provide full range of financial services such as deposits, loans, foreign exchange, e-
banking and so on to 2 targeted customers, including individuals and businesses.
- In parallel with sustainable development, they commit to accompany the Government and
some organizations in contributing to supporting new companies, protecting
environment.
 The differences between VietinBank and HSBC
Comparative Aspect VietinBank HSBC Viet Nam
(Vietinbank.vn, 2018) (hsbc.com.vn, 2018)
Legal structure a public corporation with the a Single-Member Limited
majority invested capital Liability Company with
from the Government 100% foreign invested

capital
Total asset as at 31/12/2017 About 1,095,061 billion Approximately 87,786,108
VND million VND
Size A wide brach network ( A smaller branch network,
which is refered in the with about 14 local branches.
overview of VietinBank) HSBC’s transaction offices
are only located in any big
cities like Ha Noi, Ho Chi
Minh City, Da Nang and
Binh Duong.
Most of them are Vietnamese Most of customers are
customers foreign enterprises and

Customers
foreign individuals.
2.2 Explain stakeholders approach of VietinBank and HSBC
In general, VietinBank and HSBC have relatively similar components of stakeholders, which
includes customers, managers, employees, suppliers, the Government, competitors, shareholders
and community. With each stakeholder, these banks have a corresponding approach based on its
interest and influence.
 The similar in interest, power and conflict of any stakeholders of VietinBank and HSBC
are listed as follows.
Stakeholders Interest /aspiration Power/Influence The banks’ actions to

satisfy stakeholder’s
interest ( name, date)
-The quality of the -Major customers play -Constantly enhance
products and services. core role in all business the quality of the
-Competitive price decision making of the products and services
corresponds to the best banks such as developing with reasonable price.

Customers
quality compared to new financial service, -Focus on customer
other banks. considering price of service.
-Preferential treatment service and so on.
for long-term customers. -
-Employment and -The role of managers -Pay competitive
authority assurance. has a big impact on the compensation.
-Salaries are success of the banks -Provide opportunities
commensurate with through investment for advancement and
Managers responsibilities. decisions, price development of the
-Opportunity for decisions, staff management skills.
promotion. management and so on.
-Competitive salary -They have little -Pay appropriate wage
level compared to other influence on the banks’ level.

Employees
banks. decision making. -Concern about the
-Good working life and aspiration of

environment. employees.
-To be interested in life. -Create a safe and fair
working environment.
-Annual dividends. -They hold all voting -Pay dividends on
-Cost of shares going up rights in the bank’s time.
over time. decision. -Consider carefully

Shareholders
-The assurance of investment decision
investment deals. -Expand continuously
the business.
-The value and -Their level of influence -Pay invoices on time.
frequency of orders. on the banks is low. -Negotiate appropriate
Suppliers -Speed of payment. price to bring benefit
to both banks and
suppliers.
-Banks’ activities -They have no influence -Support for local
Community contribute to community on the banks’ decisions. activities.
development. -Avoid pollution.
-Targeted customers - They have influence on -Understand
Competitors -Market share the price, marketing competitors.
-Association decision of the banks
 Stakeholders conflict:
Because of different interests leads to conflict between stakeholders of these banks. Some
conflicts are listed as follows.

Business decision Opponents Proponents
Using interest to reinvest They are shareholders. They can be managers
instead of paying dividends. Because the reinvestment because business activities
may delay the payment of can be expanded.
dividends to the
shareholders.
Increasing cost of services to They can be customers They are shareholders and
get more profits. because of negative managers because of
implication on price. increasing profitability.
Negotiating the price of The price negotiation Managers are happy because
stationery as low as reduces suppliers’ profit so they always want to
possible. they are opponents minimize the business’s
expenses.
-Paying lower salary to They are employees because They can be shareholders
employees to improve profit. they are reduced profit, even because their profitability
-Cutting job to reduce losing job. may increase.
expense
 The difference in interest, power of any stakeholders of VietinBank and HSBC are listed
as follows.
Stakeholders Comparative VietinBank HSBC
aspect
-Revenue -Taxes paid
-Responsibilities for -Operating in
community. accordance with
Interest -Taxes paid regulations.
- Operating in
accordance with
regulations.
-The Government play -HSBC operate and
a big role in all make decisions
The Government Influence important decisions of without the
the bank Government’s
intervention.
-Operate efficiently to -Pay full taxes.
generate a large -Operate legally.

The banks’
revenue for the
actions to satisfy
Government.
stakeholder’s
-Support for improving
interest
macroeconomic, the
social security.
 Stakeholder mapping of VietinBank and HSBC

VietinBank’s stakeholder mapping
Interest/Aspiration
Power/influence Low High
Low Minimal Effort Keep informed
-Competitors - Suppliers
- Employees
- Community
High Keep satisfied Key player
-Large institutional - Major customers
shareholders - The Government
- Managers
HSBC’s stakeholder mapping:
Interest/Aspiration
Power/influence Low High
Low Minimal effort Keep informed
-Competitors -Suppliers
-Employees
-Community
High Keep satisfied Key player
-The Government -Major customers
- Shareholders -Managers
2.3 Analyzing how the banks meet the stakeholders’ interests and expectations highlighting
similarities and differences of the two firms
Based on the level of stakeholder’s aspiration and power, VietinBank and HSBC implement
different strategies to each stakeholder group. For the stakeholder groups having similar effects
to VietinBank and HSBC, the banks apply relatively same actions to satisfy them. For example:
 Customers: According the HSBC Holding Plc Strategic Report (2017) and VietinBank
Annual Report (2017), they have committed to providing their clients with reliable and
effective financial services as well as focusing on customer service. They deploy
incentive programs for loyal customers, big business customers and so on. Apart from
these actions, VietinBank also applies the policies of reducing interest rate of lending.
 Employees: Both these banks aim to create dynamic and professional working
environment. They respect their employees and give them a voice and promotion
opportunity. Moreover, HSBC focuses on building equal working environment in terms
of gender(LGBT+), age, culture and so on (HSBC Holding Plc Strategic Report, 2017).
As can be seen from two stakeholder’s mapping above, the Government has different influence
and aspiration level on two banks. So, the actions of these bank applied to satisfy the
Government are different.
 VietinBank: The Government plays key role on operating and managing VietinBank
(Vietinbank.vn, 2018). So all business actives of this bank must be submitted to the
Government for approval. VietinBank committed to supporting the Government in
developing macroeconomic and improving the social security of Viet Nam (VietinBank
Annual Report, 2016).

 HSBC: HSBC needs to operate in the framework of the Government and fulfills its tax
obligation. Additionally, it should accompany with the government in some community
activities such as protecting environment.
3. The interrelationship between difference functions within VietinBank
3.1 Analysing the structure of VietinBank:
It can be seen clearly from the VietinBank’s organization chart (see appendix), its structure is
functional organization. The structure has some below strengths and weaknesses.
Regarding the strengths, functional specialization groups the people who have the same capacity
into the same department. Obviously, one who focuses on developing a skill will be faster and
more in-depth than one who has to develop many skills at the same time. Employees with in-
depth skill will handle the job more effectively and minimize the errors arising in that
professional work. Another strength of function specialization is that it avoids overlapping of
activities. Each functional component only deals with a certain subject matter, so there is no
problem with duplicate problem.
In terms of the weaknesses, the problem of managing and operating departments is more
complex. For example, in a large company, the system of specialize department is much. This
requires senior managers to understand the operating rules of each department as well as how to
evaluate their performance. Without understanding the above, the problem of loss will
inevitably. Besides this, the coordination between specialized departments is also a matter worth
considering. Despite the high performance of the division, the degree of cooperation between
them can be reduced due to personal conflicts. This leads to delay the project schedule.
Despite some limitations, the functional structure is the optimal choice for large enterprises like
VietinBank. Because this model maximizes the performance of the components as well as
allocates clear mission to each department. If VietinBank applies a different structure, when
errors occur, it will be difficult to find and fix that error immediately. It does not even show what
part of responsibility it is.
3.2 The interrelationship between various functions within VietinBank
To operate smoothly and achieve all targets, all the functions of VietinBank have close
interrelationship to each other.
When the Retail Banking Division of VietinBank wants to introduce a new financial product to
customers on a large scale, they cannot do it by themselves. They will need support from the
Communication Division (CD). Then the Communication Division conducts advertising
activities on television, the internet and so on so that the customer can know about the new
banking product widely. However, these advertising activities need a considerable amount of
money to implement. So the Communication Division must send a request to the Finance
Division for the budget. Additionally, when implementing these advertisement, the CD needs a
number of employees. The Human Resource Management(HRM) Division will help it in terms
of recruiting and training employees as required. To recruit and train the new employees for the
CD, the HRM Division needs a fund and they also connect to the Finance Division for
supporting. Like these, all the divisions of VietinBank are interconnected in order to increase the
bank’s efficiency.
An effective interaction between the CD and other functions plays an important role for the
brand development of VietinBank with positive consequences on its reputation. As a result, this
increases the customer’s loyalty and retention. Based on this, KPIs increase with positive
implications on profitability of the bank. The development of the bank’s network is fostered
including both local branches and foreign ones. This helps VietinBank to achieve its overall
objectives with the main purposes to become a leading bank in Viet Nam. The close interaction
among different functions in VietinBank fosters the development of VietinBank overtime in
terms of profitability, growth among other.
4.1. Purpose of Human Resource Function
Human resource management(HRM) is about how to manage and boost personal performance to
obtain organizational targets (Amstrong and Taylor, 2017).
HRM orients to two objects, including personnel management and the relationship of
employment. In terms of personnel management, HRM focuses on individual performance,
connecting managerial policies to business strategy. With employment relationship, HRM
concerns with the motivation and development of people to achieving their collaboration so that
they can contribute the best performance (Murugan, 2017).
4.2. Key roles and responsibilities of Human Resource Function
HRM department copes with issues related to employees from recruitment to retirement.
According to Lussier and Hendon (2017), it has six functions as follows.
 Staffing: is the process which helps organizations have enough proper employees to
operate most effectively. It relates to activities such as job analysis, recruitment, selection
(Mondy and Martocchio, 2016).
 Training and development: HRM orients to enhancing skill and knowledge of
employees to improve adaptability in changing environment (Lussier and Hendon, 2017).
 Performance management: is activities, including managing, assessing and reviewing
performances of individuals and teams to ensure that all employees work well and
effectively (Phillips and Gully, 2013)

 Compensation: includes core compensation, employees benefits and nonfinancial
compensation. These reward systems aim to encourage employees’ contribution to
organizations (Mondy and Martocchio, 2016).
 Employee relations: HRM department creates activities to connect labor, organization
and any staff associations (Mondy and Martocchio, 2016).
 Safety and health: HRM is accountable for managing work environment, practice
courses to make sure that labor are protected from accidents as well as supplying services
such as catering and supporting for illness, retirement and individual health problem
(Phillips and Gully, 2013).
4.3 Best fit approach or best practice:
Different organizations implement different HRM models, including best fit approach and best
practice one, to operate organizations most effectively. The term “Best Fit’’ means that there is
no certain benchmarked “good practices” for all contexts of firm. It depends on the needs of
organization and its employees. Whereas, Best Practice approach refers to implement certain
broadly- applicable HRM to achieve the best performance in all circumstances of firm (Boxall,
2015). For example:
 An example of best practice could be selective hiring. When company recruit employees,
manager not only assesses candidates through degree, but also evaluates through IQ, EQ,
personality test to check real ability, trainability and commitment.
 An example of best fit could be recruiting new employees through referrals from
relationships such as family, friends.
4.4 Hard and soft models of HRM

Based on object oriented, HRM divides into two versions, consisting of soft HRM and hard
HRM. Vietnamese companies usually implement hard HRM, which concerns with individual
performance. While, international companies tend to use soft HRM, which orients to the
motivation and quality of working life of their staffs (Wilkinson and Johnstone, 2016).
 An example of hard HRM: there is less reward systems. Manager only pays enough to
recruit.
 An example of soft HRM: Manager rewards employees who exceed their KPIs within the
specified time frame.
For hard HRM, this model reduces labor costs. However, the company must face turnover and
difficulty in recruiting staffs because of little care to the interests of employees. When it comes
to soft HRM, this model creates a good working environment for employees. Therefore, they are
motivated and have better performances. However, it leads to increase expense for employees.
This expense is charged to the cost of goods sold so the production is less competitive on the
market.
4.5 Workforce planning:
My Dinh is an area at which many companies located so we will focus on corporate customers.
To operate smoothly and serve the customer thoughtfully, we will need the following staff
members: manager, assistant manager, sales manager, customer service staff and cashiers.
Security and janitorial will be outsourced.

4.6 Branch Organization Chart
Manager
Assistant Manager
Transaction
Customer Services
Sales Manager Processing Cashiers
Staff
Supervisor
5.0 Critical Issues Related to Workforce Planning
Labor market always fluctuates and changes constantly, which is a big challenge for the
recruitment process of Human Resource Management(HRM). To help organizations meet their
targets and operate effectively, the HRM needs to consider careful strategic workforce planning
based on any factors like demographics, labor market trends and so on.
5.1 Types of labour market, labour market trend
Some notable features of the Vietnamese workforce are listed as follows.
 Population – approximately 96 million (worldbank.org, 2017).
 Unemployment rate – about 2,01% (tradingeconomics.com, 2018).
 Total workforce – about 55,92 million (manpowergroupsolutions.com, 2018).
 Estimated about 5% of the total workforce with working English proficiency
(manpowergroupsolutions.com, 2018).
 About 10,04 % of the total workforce skilled highly (manpowergroupsolutions.com,
2018).
 Employees in banking and finance – about 408,900 and its annually growth rate –
approximately 8,5% (nld.com.vn, 2016).
In general, the Vietnamese labour market has a plentiful supply. However, the percentage of
employees, who has high skilled and English proficiency is low. This shortcoming poses a big
challenge for HRM in selecting high quality personnel and retaining great staffs.
On the other hand, in Viet Nam, banking and finance sector has a big attraction for employees,
with 8,5% growth rate annually. Besides this, The State Bank of Viet Nam commits to keeping
interest rate stable in the near future (sbv.gov.vn, 2018), which creates favorable condition for
banks to establish and operate new branches. With VietinBank, it is one of the largest
commercial banks of Viet Nam, so it has a good reputation and attracts a high-quality workforce.
So it could be a definite plus in the recruitment of VietinBank’s new branch.
5.2 The internal labour market
With a network of 23,000 current employees, VietinBank has many advantages in internal
recruitment. Compared with new candidates, internal ones have many experiences in working,
solving the problem and caring customers. The internal employees understand the corporate
culture so they can operate the new branch in accordance with the bank’s criteria (Jex and Britt,
2014). Moreover, HRM can reduce the risk of employing the wrong person. However, with
internal recruitment, VietinBank can face with some problems like missing better candidates
from outside or lack of new ideas (Fisher, Houghton and Jain, 2014).
5.3 Analyzing turnover, stability and retention:

One of the biggest challenges for HRM is turnover. Saridakis & Cooper (2016) pointed out that
it is necessary to understand turnover measurement. Often organizations measure turnover rate
according to the following formula: “number of leavers in a year / number of staff in post”. For
instance, a company has 100 employees. If 30 left in a year, the wastage rate would be 30%.
According to Braham (2012), the major causes of labor turnover are poor employee treatment,
lacking of advancement opportunity, work-life imbalance and job-hopping trend.
Another significant figure is stability rate, which is calculated by: “number of employees with
one or more years’ service / number of employees employed at the beginning of the year”
(Marchington et al., 2016).
Based on the turnover rate and stability rate in a period, HRM proposes the more appropriate
retention planning to keep the great employees. Some methods can be considered such as
interviewing leaving staffs and doing attitude surveys (Das and Baruah, 2013).
5.4 The impact of Legal and Regulatory Frameworks
On Jun 18th 2012, Congress has promulgated The Labour Code, specifying the labour rights,
standards and obligations of the employees, other departments and organizations related to
employees(antlawyers.vn, 2013). All policies and regulations related to employees of
Vietnamese organizations must base on the provision of this code and the new branch of
VietinBank is no exception.
About wages, the salary level for employees is prescribed as follows:
 Common minimum wage: 1,390,000 VND/month (vietnam-briefing.com, 2018)
 Region II: 3,530,000 VND/month (vietnam-briefing.com, 2018)
Based on these salary levels, HRM of VietinBank My Dinh can adjust its salary policies to suit
its employees.
5.5 Advances in technology
Technology considerably supports HRM in some activities like recruitment through apps and
social media, managing personal data through cloud-based HR program (DeCenzo, Robbins and
Verhulst, 2016). Many businesses post jobs on Facebook, Twitter, Linkedln and so on instead of
traditional papers. This helps businesses save time, money and interact with potential candidates
more easily (DeCenzo, Robbins and Verhulst, 2016). About managing personal data, HRM data
management also becomes more scientific and easier thanks to cloud-based HR program. All of
the employee’s information stored on a server and the server automatically allocates data based
on the criteria of the manager (Odun-Ayo et al., 2017).
6.0 Assessment of the Approach to Recruitment and Selection, Development and Training,
Performance Management and Rewards Systems.
In order to operate HRM effectively, employers need to have appropriate human resource
planning based on the consideration and evaluation of recruitment and selection, development
and training, performance management and rewards system. This helps managers choose the
method that best fits their business.
6.1 Recruitment
The recruitment method has changed considerably over the years. With traditional methods,
businesses have to post recruitment information on newspaper or hire recruitment agencies at an
expensive cost. It also has many limitations in the interaction between employers and candidates
or even potential candidates may miss due to lack of access to information (Tyagi, 2016). In
contrast, online recruitment can overcome the disadvantage mentioned above. Because of the
explosion of social networking sites, businesses can connect to candidates quickly and easily.
Additionally, applicants also proactively create online profiles, which helps employers to reach
the appropriate candidates more effectively (Tyagi, 2016).
6.2 Job analysis, Job descriptions, Personal Specifications and Competency Frameworks
selection
- Job analysis is the process of evaluating and describing all aspects of a job in detail, including
the tasks and requirements of the job. The purpose is to develop appropriate recruitment criteria
(Fisher, Houghton and Jain, 2014). According to Mondy and Martocchio (2016), the common
job analysis methods consist of survey, observation, and meeting. However, each method has
some different weaknesses. For example, with questionnaires method, if staffs have the poor
speaking skill, this method would be less effective. To reduce the weaknesses of the above
methods, the combination of these methods is a possible solution to consider. Another effective
solution is outsourcing HR function. It helps companies reduce expense, increase HR delivery
and supply better candidates (Price, 2011).
- Job description (JD):
Based on the results of job analysis, employees doing the work or the employees’ direct
manager fulfil JD (hr.berkeley.edu, 2018). The JD provides a detailed summary of the duties and
responsibilities of the person performing the job. It helps the manager to evaluate the
performance of the employees so that he can determine the right salary and measures to improve
employee performance (Clark, 2013). It also provides information with employees about what
they need to do, which necessary skills for their job and so on (DeCenzo, Robbins and Verhulst,
2016).
-Competency framework is the set of basic criteria, including performance, attitude and
behaviour of employees for each type of work. Based on this competency framework, manager
can develop training strategies, which meets the company needs in the future (Gupta, 2011).
6.3 On-boarding and induction
On-boarding is the process which helps new staffs integrate into the company culture and their
new colleagues through meetings, field trip, video and so on. And induction is a fundamental
activity of on-boarding (Leatherbarrow and Fletcher, 2018).
On-boarding helps the new employees reduce the feeling of embarrassment, confusion and
quickly into the work. It also reduces the turnover rate (Leatherbarrow and Fletcher, 2018).
Otherwise, if induction training is not skillful, negative effects may arise. For example, an HR
employee gives a new staff too much the hard copy of the company, such as books, regulations
and so on. Then the HR employee does not guide him whole-heartedly. It can put pressure on the
new staff and make them want to out of the company (Clark, 2013).
Recommendation
To: Head of Retail Banking
From: Le Thi Thuy Ha
Date: November 6, 2018
Ref: Opening New Branch
 Workforce plan will include six positions: manager, assistant manager, customer service
staff, sales manager, transaction processing supervisor and cashier.
 For managerial positions, the recommendation is to post internal recruitment with a
preference for staffs who have at least five years of experience and two terms considered
to be excellent performers.
 For staffs, the recommendation is to post external recruitment with a preference for staff
with 3 years’ experience.
Thank you for your consideration.

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Appendix
Vietinbank Organizational Chart
(Vietinbank.vn, 2018)

F11-019 Le Thi Thuy Ha - Assignment 1

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OPENING A NEW BRANCH OF VIETINBANK IN MY DINH 1

1.0 Business Type and Purposes of Vietinbank 4

2.0 The size and scope of different types of organization 8

3.0 The interrelationship between different types of organization 17

4.0 Purpose of Human Resource Function 19

5.0 Critical issues related to Workforce Planning 22

6.0 Assessment of the Approach to Recruitment and Selection 24

Development and Training, Performance Management and

Opening a New Branch of Vietinbank in My Dinh

function and workforce planning.

1. Business Type and Purposes of Vietinbank

1.1 Background information about different types and purposes of organizations:

with private assets (Berk et al., 2013).

(Business Essentials, 2010).

 Public corporations: these companies belong to the Central Government. Normally,

public services such as health service, education and so on (Flynn, 2007).

primary aim of these organizations is helping community without making money.

shareholder is Mitsubishi UFJ Financial Group, with about 20%.

eFAST, Bank Plus and etc (VietinBank.vn).

According to VietinBank Annual Report (2016),

a wide range of functions and operates effectively.

high professional standards.

desperately to meet all the needs of customers.

- Oriented perfection: the bank puts effort into achieving perfection.

- Consecutive innovation towards modern and professional direction

VietinBank as well as commit to working responsibly.

effort into developing sustainably as well as improving social security environment.

1.4 The performance of VietinBank

VietinBank had strong performance in 2017.

1.5 Assess the future direction of VietinBank

of customers will make it easier to promote initially.

2. The size and scope of different types of organizations

2.1 Comparison between VietinBank and an international bank in Viet Nam

 The similarities between VietinBank and HSBC

characteristics in common as follows.

fast and reliable services.

- Their long-term goal is to develop with the sustainable growth rate.

banking and so on to 2 targeted customers, including individuals and businesses.

some organizations in contributing to supporting new companies, protecting

 The differences between VietinBank and HSBC

Comparative Aspect VietinBank HSBC Viet Nam

(Vietinbank.vn, 2018) (hsbc.com.vn, 2018)

Legal structure a public corporation with the a Single-Member Limited

majority invested capital Liability Company with

from the Government 100% foreign invested

Total asset as at 31/12/2017 About 1,095,061 billion Approximately 87,786,108

VND million VND

Size A wide brach network ( A smaller branch network,

which is refered in the with about 14 local branches.

overview of VietinBank) HSBC’s transaction offices

are only located in any big

cities like Ha Noi, Ho Chi

Minh City, Da Nang and

Most of them are Vietnamese Most of customers are

customers foreign enterprises and

2.2 Explain stakeholders approach of VietinBank and HSBC

includes customers, managers, employees, suppliers, the Government, competitors, shareholders

interest and influence.

are listed as follows.

Stakeholders Interest /aspiration Power/Influence The banks’ actions to

interest ( name, date)

-The quality of the -Major customers play -Constantly enhance

-Competitive price decision making of the products and services