HO CHI MINH CITY UNIVERSITY OF FOREIGN LANGUAGES
- INFORMATION TECHNOLOGY
FACULTY OF INTERNATIONAL BUSINESS ADMINISTRATION
---------***--------

SCIENTIFIC RESEARCH REPORT

TOPIC:
ANALYZING HUMAN RESOURCE STRATEGY OF
VINAMILK IN VIETNAM FROM 2016 TO 2018

Student’s name: Nguyễn Huỳnh Phúc Thịnh
ID Number: 18DH480818
Class: KN1802
Instructor: Dr. Nguyen Nhat Tan

HCMC, December / 2020

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Abstract
Human resource management always plays an important role in an organization, the
success or failure of the organization is always closely related to this factor. Human
Resource Management is a true art, there is no more difficult management job than people
management. In this research paper, we will look at what that art is through Vinamilk's HR

strategies. Factors that help Vinamilk become the best workplace in Vietnam. The purpose
of the research is to analyze the HR strategies of Vinamilk in Vietnam from 2016 to 2018.
The author analyzes the data collected from companies, magazines, articles, ... later That
compares with two important theories X (Douglas MC Gregor, 1960) and Z theory
(W.Ouchi, 1970) to see the difference. The author approaches the secondary data source to
analyze and evaluate, then give the research results. Find out problems and come up with
solutions for the company to improve and grow more and more.
Keywords:
Vinamilk, human resource management, HR strategies.

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Table of Contents
Chapter 1: Introduction.......................................................................................................................... 7
1.1
1.2
1.3
1.5

Rationale....................................................................................................................................... 7
Aims............................................................................................................................................... 8
Scope.............................................................................................................................................. 8
Structure....................................................................................................................................... 9

Chapter 2: Literature Review............................................................................................................. 10
2.1
Overview of the company......................................................................................................... 10

2.1.1 Brief information............................................................................................................... 10
2.1.2 Historical development...................................................................................................... 10
2.1.3 Mission, vision and strategy.............................................................................................. 11
2.1.4 Scope of operation, product concepts and Competitive advantages:........................... 11
2.1.5 Market share...................................................................................................................... 13
2.1.7 Company’s problem.......................................................................................................... 14
2.2
Concepts and definitions.......................................................................................................... 14
2.3
Theories...................................................................................................................................... 15
2.3.1 Overview of the theories.................................................................................................... 15
2.3.2 The importance of Human Resource Management........................................................ 15
2.4
Previous studies.......................................................................................................................... 16

Chapter 3: Methodology....................................................................................................................... 17
3.1
Research design.......................................................................................................................... 17
3.1.1 Features of secondary methods........................................................................................ 17
3.1.2 Reason for using secondary research method................................................................. 17
3.2
Source of data............................................................................................................................. 18
3.2.1 Book and article................................................................................................................. 18
3.2.2 Company’s website............................................................................................................ 18
3.2.3 The library, proquest......................................................................................................... 18
3.2.4 Reports................................................................................................................................ 18
3.2.5 Other online website.......................................................................................................... 18
3.3
Data collection............................................................................................................................ 18
3.3.1 Google tools........................................................................................................................ 18

3.3.2 Internal library system in school...................................................................................... 18
3.3.3 Data systems on platforms and websites official............................................................. 18
3.4
Data analysis.............................................................................................................................. 19

Chapter 4. Finding and discussion.................................................................................................... 20
4.1
The administrator's behavioral culture with subordinate employees............................... 20
4.1.1 Performance....................................................................................................................... 20
4.1.2 Assessment.......................................................................................................................... 22
4.2
Create awareness for employees.............................................................................................. 23
4.2.1 Performance....................................................................................................................... 23
4.2.2 Assessment.......................................................................................................................... 24
4.3
Middle management issue, who makes the connection between senior management and
employees................................................................................................................................................. 25

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4.3.1
4.3.2

Performance....................................................................................................................... 25
Assessment.......................................................................................................................... 26
Chapter 5: Conclusion and Recommendations..............................................................................27
5.1

Conclusion.................................................................................................................................. 27
5.2
Recommendations...................................................................................................................... 27

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List of abbreviations
HRM

Human Resource Management

VNM

Vinamilk

HR

Human Resource

List of Figures
Figure 2.1: Historical development of Vinamilk________________________________10
Figure 2.2: Milk market share from 2016 to 2018 in Vietnam (%)__________________13
Figure 2.3: Vinamilk revenue (2016 - 2018)___________________________________14
Figure 4.1: Top companies with the best workplace in Vietnam 2016________________21
Figure 4.2: Top companies with the best workplace in Vietnam 2017________________21
Figure 4.3: Top companies with the best workplace in Vietnam 2018________________22


Figure 4.4: Vinamilk revenue (2016 - 2018)___________________________________24
Figure 4.5 Organizational structure and positions of management levels_____________25

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Chapter 1: Introduction
1.1 Rationale
Regarding the potential of the industry, Vietnam is considered to be a worthy dairy
market to exploit with the amazing numbers it shows. In the market "liquid milk", if
customers can meet the demand, it can reach more than 34,000 billion VND, while in the
market "powdered milk" is more than 48,000 billion VND. This is both a great
opportunity for Vinamilk to continue to develop and expand its market share, but it also
shows that Vietnam is a competitive market and competitors will appear constantly. VNM
has to continue to grow because as long as they stand still, they are lagging behind the rest
of the competition and losing their market share. [CITATION VIR20 \l 1066 ]
Vinamilk's full name is Viet Nam Dairy Products Joint Stock Company is the business
activity in Food Manufacturing. A big man in the dairy industry in Vietnam beside
competitors such as: TH True Milk, Tan Hiep Phat, Nutifood and so on. Vinamilk (VNM)
demonstrates its strength by gaining market in turn. 54.5 percent, 58 percent and 55
percent respectively in 2016, 2017 and 2018. [CITATION Tâm19 \l 1066 ]
Human Resources is a very important part of every company. Through the analysis of
the Western theories X, Y, Z we will understand more about human resource management.
However, since management is still an art, not rigid, it is up to each administrator to
combine the above theories. Through theory, we will learn the tips that leaders possess to
apply and bring the company to success.[CITATION sag15 \l 1066 ]
Vinamilk also has its own problems, despite being regarded as one of the places with
the best working environment in the world. A common example is the possibility of not

having a replacement. The explanation is that they did not find qualified talent promptly to
replace former employees who worked at the company. [CITATION Ann19 \l 1066 ]
There have been many researches on VNM in the past. Two of them are "Evaluating
brand openness according to the level of Vietnamese consumers of Vinamilk brand"
[CITATION Phạ14 \l 1066 ] through methods used to analyze the data on looking for
industry potentials to assess the openness and development of Vinamilk. The second

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study is a study on corporate social responsibility performance at Vinamilk [CITATION
ĐỗĐ13 \l 1066 ] with the aim of proving the social contributions of VNM after the
successes of your own.
1.2 Aims
The purpose of this study is to find the art of leadership, the differences in people
management between VNM and other companies and how VNM's strategies operate to
explain the results why they are always choosing Top selection to rank in the top best
working environment in Vietnam from 2016 to 2018. This analysis builds secondary data
from other studies, then through the statistical process and data selection. whether to give
the best results. With the above purpose, at the same time we also want to find gaps and
spread good and successful things that VNM has achieved to many young people and
other company leaders to bring Vietnamese economy men go up.
1.3 Scope
The article focuses on the research and information selection of articles from 2016 to
2018 in Vietnam market. Focus analysis on HR strategy and the successes of HR strategy
for the overall development of the company. There is a bit of a limitation because these are
data obtained from secondary data sources, there is not enough time and opportunity to
approach and get statistical questions directly from VNM staff, so we have not gone into

depth internal problems.
1.4 Significance of the study
This study plays an important role in potential success formulas as well as the
limitations in HR strategy that companies are facing. This analysis helps bystanders like us
have a clearer view of the importance of HR strategy. For VNM, it will help them to
further improve their strengths and weaknesses.
From analyzing VNM's HR strategy from 2016 to 2018, the author has proposed a
number of measures so that VNM can solve the problem of reducing a bit of pressure
when working for its employees, creating in a competitive yet healthy environment.

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1.5 Structure
This research paper consists of five chapters. Chapter 1 is an introduction, in this
chapter, the author introduces the company, some achievements and issues related to the
research such as the purpose, scope and importance of the research. Second, Chapter 2 is a
literature review, this chapter presents an overview of the company such as development
history, market share and competitors, and analyzes the theory of personnel X and Y. In
the chapter 3 is the methodology, this chapter presents the methodology used in the paper
and how to collect the data, the effectiveness of secondary data in scientific research.
Then, Chapter 4 is the findings and discussion written about the situation the company did
in the 3 years 2016 - 2018 for evaluation and comparison with the theory. Chapter 5 is a
conclusion and recommendation, which reaffirms the importance of HR strategy to the
company's overall success and proposed solutions.

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Chapter 2: Literature Review
2.1 Overview of the company
2.1.1 Brief information
Vinamilk (VNM) is one of the largest dairy or dairy products companies in the
Vietnamese market. VNM's living coverage is very large, from the old to the children, no
one knows about this brand. In 2007, VNM was honored to be ranked in the top 15 most
valuable companies in Vietnam. VNM also shows its dominance with over 70 percent
market share in the dairy market. VNM currently has more than 94,000 points of sale
covering 64 cities and provinces across Vietnam. In addition, VNM is also ambitious to
bring its products to export to many countries such as France, USA, Canada, Poland,
Germany, besides some countries in the Middle East, Southeast Asia and so on.
[CITATION Rub20 \l 1066 ]
2.1.2 Historical development

Figure 2.1: Historical development of Vinamilk

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[ CITATION His18 \l 1066 ]
Vinamilk (VNM) is a large dairy company in Vietnam established on August 20, 1976.
After many non-stop efforts, to 1995 Inauguration of the factory in Hanoi. Perhaps VNM
has started to find its right direction by continuously opening more factories in places like
Can Tho (2001), Binh Dinh, Saigon (2003), Nghe An (2004), and so on. Next, VNM
opened a cow farm in Tuyen Quang (2006) and many other establishments were

inaugurated in the following years. During its relentless efforts in business operations,
Vinamilk was awarded many labor medals from the government. In 2014, VNM decided
to take a risky move to foreign investment. They raised their shares in Miraka in New
Zealand with the ambition to step out onto the foreign playground. Vinamilk also launched
its brand in Thailand and Myanmar in 2016. In 2017, VNM was ranked among the 2,000
largest listed companies in the world. Not stopping there until 2018, Vinamilk continues to
be in the Top 200 companies with revenue of over 1 billion USD in Asia Pacific.
[CITATION Vin15 \l 1066 ]
2.1.3 Mission, vision and strategy
Vinamilk (VNM) wishes to continue to maintain its No. 1 position in the Vietnamese
market. Besides, they also have a bigger ambition that is to try to be in the top 30 best
dairy companies in the world in terms of sales. VNM is also ready for other mergers and
acquisitions. This makes VNM stronger and stronger while eliminating some of their
competitors. And VNM continues to show its ambition by entering the export market of
wanting to become the most valuable dairy company in Southeast Asia. The mission of
VNM is "To become the leading symbol of belief in Vietnam about health and nutrition
products serving human life". “Vinamilk is committed to providing the community with
top nutrition and quality with respect, love and high responsibility for human and social
life”. [CITATION Vin152 \l 1066 ]
2.1.4 Scope of operation, product concepts and Competitive advantages:
Vinamilk owns 7 subsidiaries and 3 associates, three of which are overseas. Some
subsidiaries such as Driftwood Dairy Holding Corporation, Angkor Dairy Products Co.,
Ltd and so on. VNM operates two main distribution channels. The first distribution
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channel (traditional channel) has nearly 220 independent distributors and more than
140,000 retail outlets. This channel helps to distribute nearly 80 percent of VNM's output.

Vinamilk has opened 14 product showrooms in major cities such as Hanoi, Da Nang, Ho
Chi Minh City and Can Tho to support the purchase and sale of this distribution channel.
The second distribution channel is (modern channel) as a system of supermarkets large
and small. Vinamilk has the advantage of being a system of dairy factories that are
invested in many localities throughout the country. With more than 1,400 first-level agents
and a distribution network spread across the country, with 5,000 agents and 140,000 retail
outlets selling Vinamilk products as well as other direct distribution channels such as
hospitals and supermarkets, schools and so on. In addition to Vietnam, VNM also
expanded its influence to other countries such as Cambodia, the United States, Poland,
New Zealand and so on. [CITATION Thu19 \l 1066 ]
With strong potential and a sensible strategy. VNM always diversifies its products in
different small markets such as Vinamilk Liquid Milk market share with products such as
100 percnt Vinamilk fresh milk, Super SuSu cocoa barley drink and so on. Market share
Powdered milk Vinamilk with products Dielac Optimum Mama, Dielac Alpha Golda and
so on. Vinamilk Yogurt Market Share with Vinamilk Probi Yogurt, Vinamilk Pasteurized
Drinking Yoghurt, Vinamilk and Vinamilk Su Su and so on. Vinamilk's nutrition products
for children from 6-24 months old. And finally Vinamilk's market share of adult nutrition
products with Vinamilk Sure Prevent, Vinamilk CanxiPro and so on. It is the variety of
products and the small market shares that help create a unique and strong mark of VNM to
consumers in the country and the region. Of course, besides pleasing customers, VNM is
always a fear to its competitors. Depending on each market share, they have separate
competitors. But competitors are strong enough and have them pay attention such as TH
true milk, Tan Hiep Phat, Nutifood and so on. [CITATION Vin151 \l 1066 ]

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2.1.5 Market share


Figure 2.2: Milk market share from 2016 to 2018 in Vietnam (%)
[CITATION Tâm19 \l 1066 ]
As more and more rivals emerge on the market. It makes the rivalry fiercer, but by
maintaining a market share of around 50 percent, VNM still retains its position. In
particular, VNM still shows no sign of stopping and continues to retain its number one
spot in Vietnam and expaining the international market.

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Renvenue of Vinamilk ( VND)
2016

1017

2018

52629000000000
47506000000000
43982000000000
2018

Revenue

2.1.6 Market growth
Figure 2.3: Vinamilk revenue (2016 - 2018) [CITATION Khư18 \l 1066 ]
Statistics show that annual sales have grown as impressively as market share.

Vinamilk have revenue VND 43,982 billion for 2016, VND 47,506 billion for 2017 (up 8
percent ) and VND 52,629 billion for 2018 (increase 10 percent )
2.1.7 Company’s problem
Vinamilk also has its own problems, despite being regarded as one of the places with
the best working environment in the world. A common example is the possibility of not
having a replacement. The explanation is that they did not find qualified talent promptly to
replace former employees who worked at the company.[CITATION Ann19 \l 1066 ]
2.2 Concepts and definitions
Human resources are one of the significant resources that decide the life and growth of
every organization. Management of human resources is understood as one of the essential
roles of the management process, addressing all human-related problems related to their
work in every organization. Management of human resources is an activity that is both
scientific and creative, since management of human resources is a field that is more
connected to the culture of the organization and includes more human values than any

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other field of management any other counselling. Human resource management includes
many activities such as: talent acquisition (recruitment), branding employment, training
and development (organization development), compensation and benefit. Each of these
arrays has links and interactions with each other. Create the success of the HR department
and the overall success of the company. [CITATION Voe \l 1066 ]
2.3 Theories
2.3.1 Overview of the theories
Human resources are one of the significant resources that decide the life and growth of
every organization. The problem of human capital, therefore, is still of primary concern.

Management of human resources is understood as one of the essential roles of the
management process, addressing in every organisation all the human-related problems
connected with their work. Management of human resources is an activity that is both
science and creative, because the management of human resources is an area that is more
attached to the corporate culture and includes more human values than any other field of
management. [CITATION Voe \l 1066 ]
In hr management, there are many different definitions and fields such as: talen
acquisition, branding employment, training and development (organization development),
compensation and benefit, human resources business partner. However, the study will
focus on three main factors are: the administrator's behavioral culture with subordinate
employees, create awareness for employees and middle management issue, who makes the
connection between senior management and employees. [ CITATION Sco15 \l 1066 ]
2.3.2 The importance of Human Resource Management.
We learn more about the management of human capital by the study of the Western
theories X, Y, Z. The importance of managing human resources is to assist in the creation
and orientation and control of the human resources apparatus so that it works in
compliance with the organization's strategic objectives. Moreover, successful management
of human resources has an impact on employees' working environment,

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including inspiring factors to improve labor efficiency on all employees in the enterprise.
It is these factors that will affect the company's growth. [ CITATION AFC18 \l 1066 ]
2.4 Previous studies
There have been many studies on VNM in the past. Three of them are "Evaluating
brand openness according to the level of Vietnamese consumers of Vinamilk brand"
[CITATION Phạ14 \l 1066 ] through the method of analyzing industry potential search

data to evaluate price of the opening and development of Vinamilk. This research helps to
speed Vinamilk's scale expansion and development in the near future. The second study is
a study of corporate social responsibility activities at Vinamilk [CITATION ĐỗĐ13 \l 1066
] with the aim of demonstrating the contribution to society of VNM after the company's
successes. And the last one is the Analyzing Factors Affecting Customers' Loyalty to
Vinamilk's Fresh Milk in Gia Lam, Ha Noi [ CITATION Đặn16 \l 1066 ] with the aim of
finding out the determinants of customer loyalty to Vinamilk. This will be an important
study to help VNM's sales department have the right strategies to increase company
revenue.

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Chapter 3: Methodology
3.1 Research design
3.1.1 Features of secondary methods
In analysis, the selection and collection of data is very critical, influencing the findings
as well as the authenticity of a study. There are many different types of research data, but
there are two prominent ones: primary and secondary data. So, what are primary and
secondary data? How do them different? Secondary data is a type of data collected directly
at a time in response to a research problem of a certain researcher. Each method of
selecting data for research has its own pros and cons, but usually secondary data is always
the priority for researchers to choose. Secondary data also has its advantages. This type of
data has been used by scientists, sometimes ensuring the full professionalism and
authenticity of that data. Secondary data is also collected very easily through websites,
articles, ...[ CITATION Kas19 \l 1066 ]
However, the secondary data has some drawbacks, such as the fact that the sources of
misinformation from websites are not reliable enough. In addition, secondary data also has

a weakness that the information is not updated continuously in each period to match the
time of research. [ CITATION Kas19 \l 1066 ]
3.1.2 Reason for using secondary research method
The use of secondary data in this study has an essential benefit of utilizing the
experience gained through research papers and data available from previous researchers.
There are also three very important benefits that make it a lot easier to use secondary
data in this study. First, data is easily collected through the Internet or public library, ...
Secondly, we can easily recognize false and inaccurate information after consulting
through many data sources. of different researchers. The finally, equally important thing is
to limit the cost of data collection as well as the time that we have to spend. [ CITATION
Que17 \l 1066 ]
Going back to this study, the importance of secondary data collection will help us get
the most accurate figures and assessments of Vinamilk (VNM). These data will show
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different changes from year to year, the sales increase or decrease, the market share
increases or decreases. All of these things have a strong influence on the management
apparatus of the Company and the HR management strategies that are indispensable in this
success.
3.2 Source of data
Secondary data is very diverse. We can easily access and collect them in places but:
articles, data on live websites and especially the official website of the company, in the
library, in books, in reports on the Internet, ...
3.2.1 Book and article: www.sciencedirect.com
3.2.2 Company’s website: />3.2.3 The library, proquest:
3.2.4 Reports: />3.2.5 Other online website
The domestic websites have a high reputation and are widely used by other

researchers.
3.3 Data collection
To save a lot of time and money. The author has done this research through familiar
channels and tools such as data system on Google tools, internal library system in schools
and data systems on platforms and websites official.
3.3.1 Google tools
Easily search and access articles, reports and books to explain definitions of research
problems, solve sales figures, revenue...
3.3.2 Internal library system in school
This is a valuable instrument for secondary data collection. In order to help get the
right details, the data in the library is highly theoretical and diverse.
3.3.3 Data systems on platforms and websites official
This data source allows to find basic facts, development history, and analysis with
secondary data from market rivals without having to go to the company for research.

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Check for relevant data from the company's annual sales and profit figures, as market
share and market growth are more reliably evaluated.
3.4 Data analysis
To obtain data and knowledge, this study uses a secondary research approach. First, the
author wants to get the company information, the author has to search for websites online,
then analyze and filter the data. As for the details, the author also searched, then estimated,
compared, and compared between years through the annual financial statements. Lastly,
the author will analyze the research data.
By examining, estimating, and assessing secondary research methods to explain
Vinamilk's human resource management techniques and related problems. The analysis

seeks relevant data to reliably quantify and assesses data to help clearly see the essence
and importance of the research issue.
In addition, charts, statistics to display the development of history and comparison of
market share, market growth of the business are also included in the research paper. Often,
pictures make ideas and definitions simpler.

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Chapter 4. Finding and discussion
4.1 The administrator's behavioral culture with subordinate employees.
4.1.1 Performance
In an organization, administrators always have a huge responsibility. They are required
to establish a management structure that is consistent with the company's goals, criteria,
finances and orientations. When errors occur in the course of work, employees are often
less responsible than managers. That is why managers must always have the best
calculation, judgment and behavior with their own employees, to help the company run
smoothly and come to the nice results. [ CITATION Mic77 \l 1066 ]
For employees, managers need to take assertive measures, must know how to order,
check and adjust their behavior towards the common good of the company. Managers
need to know and perform well behaviors in dealing with subordinates such as persuading,
reprimanding, rewarding and sometimes being disciplined when there is a problem. This
will help employees have a framework and direction to move forward. Do not cause any
protest that adversely affects the organization's organization and the company's survival.
[ CITATION Lyn07 \l 1066 ]
The leaders of Vinamilk (VNM) are doing their job very well. They create a working
environment that makes all employees work towards a common goal of the company. This
is also a key factor that makes VNM run smoothly and reach unexpected successes.


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2.1.5 Market share

Figure 2.2: Milk market share from 2016 to 2018 in Vietnam (%)
[CITATION Tâm19 \l 1066 ]
Asdownloadmoreandmore rivalsby emerge: fiercer, but by

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maintaining a market share of around 50 percent, VNM still retains its position. In
particular, VNM still shows no sign of stopping and continues to retain its number one
spot in Vietnam and expaining the international market.

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Renvenue of Vinamilk ( VND)
2016

1017

2018

52629000000000
47506000000000
43982000000000
2018

Revenue

2.1.6 Market growth
Figure 2.3: Vinamilk revenue (2016 - 2018) [CITATION Khư18 \l 1066 ]

Statistics show that annual sales have grown as impressively as market share.
Vinamilk have revenue VND 43,982 billion for 2016, VND 47,506 billion for 2017 (up
8 percent ) and VND 52,629 billion for 2018 (increase 10 percent )
2.1.7 Company’s problem
Vinamilk also has its own problems, despite being regarded as one of the places with
the best working environment in the world. A common example is the possibility of not
having a replacement. The explanation is that they did not find qualified talent promptly
to replace former employees who worked at the company.[CITATION Ann19 \l 1066 ]
2.2 Concepts and definitions
Human resources are one of the significant resources that decide the life and growth
of every organization. Management of human resources is understood as one of the
essential roles of the management process, addressing all human-related problems related


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