HUMAN RESOURCE STRATEGY PLAN FOR THUAN PHUOC SEAFOOD & TRADE CORPORATION IN NEXT FIVE YEARS Introduction: The Thuan Phuoc Seafood & Trading Corporation was established by IPO the Sea food & trading Thuan Phuoc in the year 2007 After change to Joint stock, during the unstable world economic situation, financial crisis and the downside of world economic during 2008’s has not recover up to now still The difficult economic situation has effected heavily on the business of all Vietnam companies including the Thuan Phuoc Seafood & Trading Corporation Facing that situation, Thuan Phuoc has to relook at how to make the best use of the human resources Thuan Phuoc needs to build up a strategic plan on Human Resources for the next five years Strategy’s mission:  Select clear plan on develop human resources for the organization in theory  Analyze, evaluate the actual current situation of their human resources in tem of quantity, quality, structure and manage the development on human resources of Thuan Phuoc during the recent years  Suggest the plan and come out with a solution to develop their human resources in the near future to fit into the new business situation Objective of the plan: The strategic plan focus on building up the objective related to develop the human resources in the Thuan Phuoc Seafood & Trading Corporation The area of the plan:  The content: Study on theory & practice on develop the human resources in the Company to come out with some solution to develop the human resources until 2015  The areas: The areas to analyze is in all the departments and factories which is operating under the management of Thuan Phuoc company  Timelines: Using the statistic on human resources of the company from 2009 to 2011, come out with suggestion for develop their human resources until 2015 and the vision till 2020 At the company like the Thuan Phuoc Seafood & Trading Corporation, there are no study on development plan on human resources so this strategic plan will put in order, choose the best solution on develop the human resources, analyze the current situation on manage the development of their human resources on last recent time, suggest solution to develop their human resources up to 2015 1) CONCEPT AND THEORY: 1.1 Understand Human resource a What are Human Resources? Human Resources are all the abilities on physical strength and mental power of people use during the working process It also consider as manpower of a person – the most important resources in all the factors when running a business of an organization b The Human Resources: There are different concepts on human resources, some said it is the resources from people, some said it cover all factors like quantity, quality or the structure of the people development in the present and in the future The human resources can be understood in different ways, but it will always include quality, quantity and the mechanism of people c Develop the Human resources: There are many different understanding on how to develop the human resources In fact, to develop the human resources is to improve the quality of the human resource Improve the quality of the human resource is the results of Education, Training and developing employees within the organization To develop the human resources in the organization is to make sure the size of the quantity and quality is suitable to the current situation and the development of the organization in the future d The important of the develop human resources with the organization development To develop the human resources is to improve the skill and knowledge of the employees and it will help to develop the organization Develop the human resources will increase the labour productivities, the effectiveness and increase the labour quality and all these will help to improve the business 1.2 The main content to developing human resources in organization 1.2.1 Make sure the management has the sufficient number of employees required Talking about number of human resources in the organization, the first question we have is to ask is how many employees in the company now and how many more we need in the future To make sure the organization always have enough manpower, they need to have good plan on human resources and well on recruitment a Human Resources Plan: To plan on human resources is a long process which needs to be studied well & carefully implemented to make sure the company has a correct number of employees, the quality of employees and right people for right job That study will require good analyzes to find out the need of the company to fulfill the mission of the organization and build up a good plan to fulfill those needs b Recruitment process: Recruitment is very important part in the human resources management which including: have clear job description, select resume and select right person to make sure that quantity & the quality can fulfill the requirement of company development plan 1.2.2: Improve the quality of human resources: Base on current human resource, organization need to improve the quality of their current human resource by: a Valuating the actual result of every employee: We can evaluate by points, ranking, compare between peers, observation or target management b Training & develop employee’s skill 1.2.3 Maximizing the current human resource: Develop the human resource in the organization is also depends a lot on how they utilize their human resources To use their human resources effectively, the organization will improve the labour productivities & activities a Assign task: For present, assign task in the organization have types:  Assign job base on the job function  Assign job base on industry  Assign job base on how complicated the job is b Collaboration: There are types of collaboration in the organization  Collaboration base on space  Collaboration base on time 1.2.4 Focus on building up a good benefit package for employees to motivation them a Physical benefit: Basic salary, allowance, bonus, benefit… b Visible benefit: promotion, working environment… 1.3 Factors which effect the human resource development process in the organization 1.3.1 External Factors: a The complexity on labors: The current labour market comes from deferent type of people from deferent region all over Vietnam They have deferent religion, level of education, culture, ages The more diversified the labour market is, the more complicated human resource management and development is b Education and Training: The training quality provided to employees before working for the company will decide the human resource development policies of the company in the future c The changing in technologies, industry and sciences: The development of new technologies, industries & science has a big effect on the human resource of organization It will affect the human resource development policy of the organization because employees are the people who must understand and own new technologies to make use of it for the operation of the company they are working for d Challenges on Economic: The economic world is changing rapidly together with global challenges are increasing forcing companies to change to adapt with it They need to come out with right decision to support the business and to be more effective They may need to restructure the company on employees to reduce cost Besides, to attract the highly skilled employees they need to have attractive benefit package with competitive salary offer e The change in training & development policies from government: When new law, decisions from government change then companies also need to change their strategies to adapt to it f The labours market: The labours market situation changes like salary rank, the number of unemployment is how the actual situation of the market This statistic needed to be collected and analyzed to be used effectively in the human resource planning of the company 1.3.2 Internal factors: a Company needs b Company structure and size c The factors on labours and leaders 2) THUAN PHUOC SEAFOOD & TRADING CORPORATION FOUNDING & DEVELOPMENT: 2.1.1 Introduction: Thuan Phuoc Seafood & Trading Corporation was established in 1987 in Danang as Thuan Phuoc Seafood & trading limited company The company started it’s operation with new company structure based on license number 3203001489 issues by Da Nang Planning & investment department on 29/6/2007 The main business operation is focus on production and exporting of frozen seafood 2.1.2 Organization structure At the moment beside the different functioning department, the company also has 03 subcompany and the total employees is 2000 people (at Dec 2011) http://www.thuanphuoc.vn/en/sodotochuc.html 2.1.3 The business result for the period from 2009 to 2011 Table: The business operation and result 2009-2011 No Criteria % Ratio plus/ minus (+/-) Year Year Year Year Year Year 2009 2010 2011 2009/ 2010/ 2012/ 2008 1440,04 +21,52 2009 +56,7 2011 +44 Total Revenue Billion 638 1000 Export VND Million 35 51 69,3 +10,72 +45,71 +35,88 Profit before tax USD Billion 32,98 31,21 40,687 +19,93 (-5,37) +30,94 Total employees Average VND Person Million 1400 2,2 1650 2,9 1855 14.3 22,22 17.86 31,82 12,42 37,93 income/month VND Source: Sales & Marketing Department – Thuan Phuoc Seafood & Trading Corporation 2.2 Analyzing the current human resource situation in Thuan Phuoc Seafood & Trading Corporation 2.2.1 Analyze the current situation of Human resource on quantity & structure a Quantity: Number of employees is increasing year after year from 1,400 people in 2009 to 1,650 people in 2010 and 1,855 people in 2011 The increase amount is around 15.10% per year during 2009 to 2011 b Structure:  Structure by sex: The number of female employees are much higher than male, the number of female employees keep increasing in number but declining in percentage In the year 2009 female employees were 1,260 people covering 90% of the total employees & the year 2011 they have 1,540 female covering 83.02% of total employees  Structure based on job requirement: The employees in this company are mainly direct workers In the year 2009 the company had 1,320 workers (94.29%), year 2010 they had 1,550 workers (93.94%) and year 2011 the number of workers were 1,728 workers covering 93.15% of total employees in the company  Structure by age: Thuan Phuoc employees have wide ranking age group, from 18 years old to 55 years old The number of employees who are less than 24 years old cover the most in the company & keep increasing since 2009 to 2011 In the year 2009 the number of employees who under 24 years old is 882 people cover 63%, year 2010 is 1,132 people cover 68.61% and year 2011 is 1,337 people cover 72.08%  Structure follows the years of service: There are number of employees who have around 20 years of service in the company mainly management team since company start the establishment up to now  Structure by type of work: There are deferent groups of employees in the company and they are: Management team, skilled workers and normal workers Workers cover the most in their human resources Year 2009 there are 1,320 workers cover 94.29%, year 2010 is 1,550 workers cover 93.93% and 2011 is 1,728 workers cover 93.15% 2.2.2 Valuation company human resource base on quality: a Management team: As we can see in the table below the management team mainly graduated from University or higher, this is their strong point In term of quantity, it is increasing year by year but by not much Most of them have not yet gone through management training so in the human resource strategy, we need to have a plan to have good leadership skill training for this team Table: Statistic on management team a b a b Year Education Post graduate University Management skill Have been trained Not yet train Management skill Language a University on 2009 2010 2011 22 24 30 17 19 27 2 b Level A c Other level Computer skill a University b Level A c Level B d Level c e Other level Source: Admin Department b 19 21 27 23 0 0 25 0 0 33 0 Skilled workers: Skilled workers are trained and skilled in the job that they but most of them have never had training in management skill This is a potential group who can be the next management & leader team for the company We will need to have a clear plan to train & develop them c Workers group: The group who graduate high school level cover around 50% on total number of workers 2.3 Valuation the human resource development of the company from 2009 to 2011 2.3.1 Quantity of employees compare to the needs a The number of employees keeps increasing year by year, to adapt to the expansion of the company’s requirement b Plan on human resource for future: The Company has not yet had any plan for long term on human resources The plan mainly focuses on recruiting enough number of workers to fulfill the need when ever a new sales contract is signed c Recruitment:  Job description: The Company has a job description for some management role; however, they don’t have any job description for other roles yet  Recruitment: The new staff who joint in each year are mainly skilled and normal workers However, for the skillful group the recruitment result is enough for 2009 & 2010 but in the year 2011 the number of staff successful recruited only cover 76% of the actual need (19 out of 25) The survey with 230 staff on how they get the job there are; 159 people apply and go through normal process cover 69.1% and other 71 people get the job because of other reason cover 30.9% Source: Thuan Phuoc Seafood & Trading corporation 2.3.2 Improvement Human Resource in the company: a Performance valuation: The Company pays some attention on job valuation however this task is not consistent and mainly focuses on direct workers only The performance valuation is done every quarter and every year, this is used as a base for bonus payment According to one survey conducted, most of the staff who were question believe they did their job quite well or very well in which the amount of staff believe they did their job well is 85.2% Source: Thuan Phuoc Seafood & Trading corporation b Training & development: Although the leaders paid attention on training & developing employees however they did not have good plan and implementation The training mainly focuses on some high senior leaders, for other employees there are some skill improvement courses only There are also no training department in the company  The survey result with 230 people who just started with the company less than months, 203 people said they get proper training and the rest said no  For training there are 174 people said they never been in any training courses cover 75.7% number of people have been asked, 54 said sometime and only said they often attend training Source: Thuan Phuoc Seafood & Trading Corporation 2.3.3 Assigning the right job for right person: During recent years the assigning of job for employees were not done properly, example: not finding the people who studied that specific job, the pressure of deliver goods on time so people from deferent department need to support or internal movement of staff to finish the job which sometime is not the strength of the staff 2.3.4 Benefit package: Salary, allowance, bonus About benefit package, company follows the job grade policies Result from survey show 22% of employees think the benefit is suitable for their performance, 53.9 said not really fit to their job requirement and 43.9% said not fit at all Source: Thuan Phuoc Seafood & Trading Corporation 2.3.5 Valuation and analyze on human resources in Thuan Phuoc Seafood & Trading corporation a Strength  The human resources in Thuan Phuoc develop both by quantity and quality The number of employees is increasing year by year since 2009 to 2011 That means the number of staff in first stage is enough for the business requirement In term of quality, it also keeps improving The education level of employees is better year after year  In the recent years, the understanding on how important the human resource is to the company is improving Company leaders start to focus on clear & fair recruitment process The recruitment process also pay more attention on putting the right person for the right job base on their qualification b Weakness:  The quality of their human resource is not high, they are mainly general workers without proper skills This can provide enough manpower for process in the factory but in terms of development, there are limited especially on training and development on employees career  Do not have a good plan on recruitment or staff skill development  Benefit package is not attractive enough to motivate staff loyalty  Still assigning unqualified staff to skilled required work and most of the time without good training or coaching program c Reason:  The human resource department is under the administration department and don’t have enough people with knowledge to handle the human resource job or to advice to the management team on good human resource management  Have no good human resource management plan  Not yet have good policy to invest on human resources, the salary policy is base on ranking not on actual performance  Not yet have good performance valuation methods  Have no training fund to use to develop employees skill SOLUTION TO DEVELOP THE HUMAN RESOURCE FOR THUAN PHUOC SEAFOOD & TRADING CORPORATION 3.1 Factors which affect the human resource development 3.1.1: Diversified of the labours To develop the human resources of the company, we need to have good a plan & strategy to manage & make best use of the diversified labour and turn it become an advantage for the company 3.1.2 Education & training: Most of direct workers are high school graduated, this can be an advantage Company can have plans to train them on new technologies, implement new process which they can adapt & learn quickly if the training program is clear and easy to understand 3.1.3 The changing of new technologies: With the global trend & the world opening up and together with the rapid development of new technologies, it will good advantage for the management to implement new technologies to the process to produce products and even implement it into the human resource management Thuan Phuoc company should invest in new technologies to support the company business growth & their employees also need to growth together with it 3.1.4 Legal environment: Our policies, labour law is quite complicated Need to understand well when dealing with human resource 3.1.5 Economic environment:  Expand & develop to export market  Expand & develop the local market  Expand the size of factories & increase the processing size 3.1.6 Increasing competitors In Da nang there are 17 Seafood process plants and are Joint stock companies, 09 limited companies & 01 private company In the current difficult situation, the cost of electric, water, transportation increasing, the loan interest rates are all increasing, and it is difficult to get loans, therefore it’s important for all seafood processing companies to workout good plan together to manage to reduce cost, increase sales and to improve their competitiveness in the market 3.2 The need to develop human resource in Thuan Phuoc Seafood & trading corporation Base on the study of current situation & plan to expand business in the future we can clearly see the need to have long term plan to develop the human resources of the company 3.3: Mission & strategy to develop the company from now to 2015, vision to the year 2020 3.3.1: Mission: Continue to grow from difficulty, make the best use of the internal resources, and focus on find new contract to expand the export market to achieve the yearly target Aim to be in the top 10 of the seafood processing & export company 3.3.2: Business plan from 2013 to 2015 The target which company set out for 2012 is almost same as 2011 to try to maintain their business through the difficult economic situation From 2013 to 2014 they must focus on yearly growth of between 20 to 23% Plan 2015 if their plan can work well, focus the revenue will increase to reach 2,700 billion VND 3.3.3: Mission & principle to develop company human resources from now to 2020 Company principle is to implement a comprehensive solution to develop the human resource To study & valuated the abilities and position of each key employees, build up policies to motivate staff for them to have more responsibility, passion and contribution to the company Provide more training to employees especially the high quality employees on new technologies and management skills 3.4.Some solution on human resource development in Thuan phuoc Seafood & trading corporation 3.4.1 Solutions to ensure the quantity of the employees a Create good plan on human resources: use the analyses of the past to focus on the need on number of staff for the future Focus to show the need on number of staff of the company for the year 2013 is 2,050 people, 2014 is 2,200 people and 2015 is 2,400 people b Create a new recruitment process and plan suitable to the recruitment plan of the company First step needed, is to build up a new recruitment process which focuses on improve whatever which is not very good in the old process Base on the need of each department to create a good plan on recruiting new staff to fulfill the departments’ needs 3.4.2: Solutions on career development for current employees in the company Build up a good model on career plan: The principle of good career plan is to match the individual ambition and the opportunities in the company The is good for the linemanagers as they know how to assign task to their staff to give them a chance to improve themselves The career development plan can be followed up in ways:  Development in the long term  Development based deeply & widely on the job itself 3.4.3 Solutions to support improvements the human resources quality in the company a Solutions focused on training to meet the requirement for career development & skill improvement of existing employees  Understand the training needs: To understand the training need, the Human resource department needs to a survey and to study and analyze the results base on the performance valuation table and the actual abilities of employees To create courses based on the valuation of the employees to improve their skill and to support their job  Implement the training courses Improve the job valuation performance for all position within the b company To have good job valuation system, the HR department needs to have a complete statistic on the job requirements, build up a job valuation performance standard to each job grade/ position Good job valuation should have both financial & non financial requirement It also should base on what to achieve & how to achieve c Build a clear training plan for each type of job to make sure employee is ready to their task Base on our survey, most of staff said they need clear training before start their job The plan created needed to be implemented with a strict timetable and should be strictly follow d Create suitable, effective and interesting training program, to improve the trainees skill on their jobs and to create a teamwork environment e Training to improve the management skill for key staff f Create competitive benefit package to keep employees loyal to the company and this can also attract good people from outside the company 3.4.4 Solutions on how to get best use of exiting resources: a Complete the organization chat and make sure to put right person on the right job b Empower the line managers team to manage their own team effectively 3.4.5 Solutions on motivating employees a Complete the benefit package which well reward employees in term of salary, bonus and other benefit b Enhance the working environment to motivate the staff CONCLUTION: The strategy plan is based on the theory on how to develop the human resources in general & in the specific company We also study and analyze the actual situation to point out what is the positive & negative in current human resource management process then suggest the best solutions to develop the human resource plan to meet the requirement of expansion & development for the business in the near future Based on our study we can see the human resource development plan of the company still have some limit & not suitable to the current business requirement The number of employees is increasing since 2009 to 2011 based on expansion of the business, however there is the need to analyze the business requirement to come out with correct number of employees needed for the business, the improvement of employees quality, to this, the recruitment process also need to improve The company also needs to have a good & proper training program to develop employee’s skill and lead them to have clear career plan They also don’t have competitive benefit package, the current package is not attractive enough to attract talent from outside the company & also not attractive enough to keep talent within company They also need to have long term plan for direct workers for them to see the benefit to stay loyal with company and not depend to much on the outside labour market base which before was based mainly on the sales contract From the study above, our strategy plan have come out with some solutions to resolve the issues which company was facing for short term and long term to have a comprehensive plan to develop the human resource of the company These solutions will be implement in the actual practice and will be modify during the implementation if needed to meet the changing of the market when doing business SUGGESTION: For the Board of Director: The Board of Director is the highest level in the company who can decide and implement any decision on behalf of the company However, the Board of Director who are also the leaders position in the company management so the Board of Director need to come out with good strategy & business plan base on the contribute ideas from all department Every year in the share holders meeting the Board of Director need to provide enough information to the share holders and special focus must be on policy & fund to support the development of human resource within the company like training, increase salary, bonus and other benefits Company management: For those who also member of Board of Director need to have clear picture & understand the need for the business to manage company business in the right way and achieve good results They also need to focus and understand what support their employees need from the management team, and also to evaluate the employees fairly Good employees rewarded, like promotions or increase their salary before the regular time to motivate them to contribute their best to the company Continue to have good plan to expand the business & focus to complete the deal to rent 20,000m2 in Tho Quang industrial to build new factory and also quickly start the plan to build apartments for workers from other province to have good & stable residential so they will stay long term with the company  ... 2008 1440,04 +21 ,52 2009 +56 ,7 2011 +44 Total Revenue Billion 638 1000 Export VND Million 35 51 69,3 +10,72 + 45, 71 + 35, 88 Profit before tax USD Billion 32,98 31,21 40,687 +19,93 ( -5, 37) +30,94 Total... quantity & structure a Quantity: Number of employees is increasing year after year from 1,400 people in 2009 to 1, 650 people in 2010 and 1, 855 people in 2011 The increase amount is around 15. 10%... quantity, quality or the structure of the people development in the present and in the future The human resources can be understood in different ways, but it will always include quality, quantity