HO tGtU MINH CITY"UNiVERSITY Of' FOREIGN LANGUAGES AND
INFORMATION TECHNOLOGY

DEPARTMENT

OF FOREIGN LANGUAGES

GRADUATION PAPER

SOfvIE SUGGESTIONS TO Il\1PR()VE ACTUAL
RECRUITMENT

A.ND SELECTION PROCESS IN

LIEN TI-I.&.NHSEA,FOOD PROCESSINC;

JOINT-STOCK CONIPAN'{

Advisor: Mr. NGUYEN NGOC HUAN, M.B.A.
Student: TRUONG MINH XUAN LAN
Student's number: 0171005
Class: HA0101
TV Dqi Hgc Huflit

1111111111111111111111111111

101000470

ill) Chi Minh City, July 2005

1

HO CHI MINH CITY UNIVERSITY OF FOREIGN LANGUAGES AND
INFORMATION TECHNOLOGY

DEPARTMENT OF FOREIGN LANGUAGES

GRADUATION PAPER

SOME SUGGESTIONS TO IMPROVE ACTUAL
RECRUITMENT

AND SELECTION PROCESS IN

LIEN THANH SEAFOOD PROCESSING
JOINT-STOCK

Advisor:

COMPANY

Mr. NGUYEN NGOC HUAN, M.B.A.

Student: TRUONG MINH XUAN LAN
Student's number: 0171005
Class: HA0101

Ho Chi Minh City, July 2005



Dedicated to my family


ACKNOWLEDGEMENTS
In completing this graduation paper, I have received a lot of help and invaluable
advice from many helpful and respectful people.
First of all, I would like to express my sincere thanks to the Board of Foreign
Languages Department,
sent me encouragement

especially Mr. Vu Quoc Anh, M.A., Vice Dean who has
and help to my work.

In particular, I would like to express special thanks to Mr. Nguyen Ngoc Huan, my
advisor who is always enthusiastic to give me support, ideas and commentaries.
In addition, I would like to express my deepest appreciation
Ho Thi Hoa, Administrative

with the help of Ms.

Manager of Lien Thanh Seafood Processing loint-

Stock Company, Mr. Hua Thuyen, the Chairman of Viet Huong Hai Fish Sauce
Processing Limited Company and Ms. Nguyen Thi Xuan Kim, the Chief Account of
Lien Thanh Company who are willing to provide valuable information and opinions
for my study.
I am also grateful to all the authors whose books I have referred to complete this
paper.
Last but not least, I truly express my heartfelt gratitude to all my friends for their
help, support and encouragement.



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CONTENTS
Page
ACKNOWLEGEMENTS
ABSTRACT
INTRODUCTION

01

CHAPTER 1: OVERVIEW OF HUMAN RESOURCE MANAGEMENT
1.1. Understanding of human resource management

1.2. The importance of recruitment and selection
1.3. Recruitment process
IA.
Selection process

03
04
06
19

I

CHAPTER 2: GENERAL INTRODUCTION OF LIEN THANH SEAFOOD
PROCESSING JOINT-STOCK COMPANY
2.1. The history of the company
29
2.2.
Organizational structure
32
2.3.
Administrative department with human resource function
35
CHAPTER 3: ACTUAL RECRUITMENT AND SELECTION PROCESS IN
LIEN THANH SEAFOOD PROCESSING JOINT-STOCK COMPANY
3.1.
Current recruitment and selection process of the company
39
3.2. Strengths and weaknesses of the current recruitment and selection process
of the company
45

CHAPTER 4: SOME SUGGESTIONS FOR THE CURRENT RECRUITMENT
AND SELECTION PROCESS IN LIEN THANH SEAFOOD PROCESSING
JOINT -STOCK COMPANY
54
CONCLUSION
APPENDICES
REFERENCE

62

.

1


ABSTRACT
"Some suggestions

to Improve actual recruitment

and selection process in Lien

Thanh Seafood Processing Joint-Stock Company" is the subject that Iresearched in
the internship period at Administrative

Department

of Lien Thanh Company. This

study was conducted on theory arid practicality of the observations and interviews

with Lien Thanh and Viet Huong Hai Enterprises'
the recruitment

and selection

personnel managers to analyze

process of Lien Thanh Company.

showed that Lien Thanh Company's

recruitment

The findings

and selection process had some

strengths. However, it also had a number of weaknesses.

Thus, some suggestions

were given to the recruitment

improvements

could meet the requirements

and selection procedure's

of current human resource management.


so that it


INTRODUCTION
For number of years, together with the rapid economIC growth and pressure of
global

competition,

services

trying to effectively

maximize

businesses'

products

supply to their customers is a key task for all companies.

and

It requires

enterprises to devote their time, budget and energy to improve their patterns, price,
products and services
improvement,


quality as well as marketing

these businesses

strategies.

need to have effective

To achieve this

business

strategies focusing on finance, production, accounting, marketing,
management,

and human resource

management

management
administrative

is not an exception.

To any

enterprise, whether it is large or small and "whether it is nationalized or privatized,
whether it is a company, a partnership

or a co-operative"


(Nguyen & Nguyen,

2003), human resource is always a decisive factor. Schermerhorn (1996) asserts the
importance of human resource as follows, "People are our most important asset...
determines

whether our companies thrive or languishes."

Recent observations of

some medium and small businesses in Viet Nam; nevertheless,
most human resource

managers

have shown that

have given little attention to human resource

management.

This research aims at analyzing the recruitment and selection activities to improve
the businesses'

human

resource

managl:ment.


However,

being

restricted

on

graduation paper, the research doer only focuses on the recruitment and selection
process in Lien Thanh Seafood Processing Joint-Stock Company in an attempt to
find out the strengths and weaknesses

of the process so that some suggestions are

given for more efficient human resource management.

The organization
overview

of this study consists of four chapters.

of human resource management.

Chapter

one is the

Introduction to Lien Thanh Seafood


Processing Joint-Stock Company is found in chapter two. Chapter three analyses
Page 1


the current recruitment and selection process in Lien Thanh Company. Some
measures to improve the organization's

recruitment and selection process are

suggested in the final chapter.

Page 2


CHAPTER 1

OVERVIEW OF HUMAN RESOURCE
MANAGEMENT
1.1.

Understanding of Human Resource Management

Previously,

most managers

personnel management.
criteria in effectively

have considered


Recruitment,

human resource

management

as

selection, training, pays and legal are major

managing their employees.

Gradually, the managers have

recognized that these criteria have not been enough for strategic human resource
management in the severe competitive business environment.
Nowadays,

the term "human resource

management"

has become

familiar

to

anyone who involves in business world. However, its definition varies from books

to books. Different comments on human resource management
human resource
"managing
involves

specialists.

people

within

the productive

have been made by

Stone (1995) sees human resource
the employer-employee

utilization

of people

management

relationship.

in achieving

as


Specially,

it

the organization's

objectives and the satisfaction of individual employee needs" while Schuler et al.
(1996) define human resource management
of an organization's

as "the recognition of the importance

workforce as vital human resources contributing to several

functions and activities to ensure that they are used effectively

and fairly for the

benefit of the individual, the organization and society". Also, Nguyen (2004) states
that

human

recruitment,

resource

management

is an overall


selection,

maintaining,

development

brings all convenient

combination
and motivation

of planning,
activities.

It

conditions for human resource through an organization

to

reach strategic objectives and organizational vision orientation. Although the above
ideas come from different

authors, they all have one thing in common: human

Page 3


plays a center role in rea<::hi!1g_~rganiz

the highest positions in the competitive environment of business.
The social development
technologies,

has brought stable life for human. The more developed

the more modernized

equipment

we have to save time for work

operation with high productivity. Moreover, mechanical systems also replace us in
fulfilling some other tasks (Nguyen, 2004). However, machines are only machines,
they cannot work well without human. This means that human resource
important and essential to organizations'

IS

very

survival and development.

1.2. The Importance of Recruitment and Selection
Human Resource

Management

training and development,

describes the wide variety of activities such as:

performance

appraisal, compensation,

etc. Especially,

recruitment and selection are important tasks. There are three main objectives of
human resource management:
To attract potentially qualified job applicants.
To retain desirable employees.
To develop a qualified workforce.
The first objective of human resource management

can only be obtained when the

managers

procedures.

effectively

carry out the recruitment

Human

resource

planning and job analysis are useful tools supporting to recruitment and selection of

each enterprise.

The benefits of recruitment

and selection are expressed

on the

following aspects:
Firstly, the establishment of any corporation requires human resource needs so that
its operation can be smoothly run. This shows that recruitment and selection have
undeniable importance for the first activities to form organizational staff.

Page 4


Secondly,

good performances

of recruitment
....

businesses'

-

.

and selection

are the keys for

_ ....

successes because these companies possess qualified and potential job

applicants who always have good motivation and behavior for the development of
their companies' brand names.
Thirdly, the values of products and services depend heavily on a knowledgeable,
skillful and initiative workforce. Job performance efficiency and job satisfaction of
potential candidates can be devoted to a company's productivity and competitive
advantages improvement.
Last but not least, attracting and recruiting individuals whose knowledge, skills,
abilities and motivation are appropriate to the job requirement
long-term

strategies

and the company's

may help increase the success rate of the recruitment

and

selection process. As a result, budget for training and development programs is also
lowered (Nguyen, 2000).

Page 5

F

1.3.

Recruitment Process

Recruitment

can be effectively

activities provide necessary

conducted

information

once job planning

and job analysis

about job requirements

qualifications.
External Environment
Internal Environment

Human Resource Planning

1

Alternatives to Recruitment

Recruitment

Internal
Source

External
Source

Internal Method

.

External Method

Recruited Individuals

Figure 1.1: The Recruitment Process
Source: Mondy, Noe and Premeaux, 2001, Human Resource Management

Page 6

and employee


"Recruitment is the process of att~~cting individuals on a timely basis, in
sufficient numbers, and with appropriate qualifications, and encouraging them to
apply for the job with an organization. "(Mondy, Noe & Premeaux, 2001). People
whose abilities and skills are most closely related to job description and job

specification can be offered for an employment.
1.3.1. Strategic human resource planning
The leading target of human resource planning is helping the company to choose
the right person in the right position at the right time. Choosing employees with the
required

skills to accomplish

company and its employees.

organizational

objectives

is beneficial

for the

This benefit is only achieved when human resource

managers have good performance of human resource planning.
1.3.1.1.

Definition of human resource planning

In a recent study, Schermerhorn (1996) determines that human resource planning is
"the process of analyzing staffing needs and identifying actions to satisfy these
needs over time. "
Human resource planning is carried out by accessing the supply of internal and
external sources to find out the most appropriate

candidates

to the organization

over a specific period of time.
Human resource planning is important to help both organizations

and employees

prepare for the future. Human resource planning plays a key role in supporting the
organization to anticipate and overcome human resource obstacles that will prevent
the organization from fulfilling its objectives and goals. Effective human resource
planning can be a contribution for the success of other human resource activities,
such as recruitment,

selection,

training

and development.

The efficiency

recruitment and selection process cannot be achieved without careful planning.

Page 7

of

1.3.1.2.

Steps of human resource planning

Step 1: Environmental

scanning

Business

comprises

environment

of all factors which affect an organization's

activities, development and even survival.
i. External factors
Globalization: Nowadays, globalization is a reality that all enterprises should adapt
to. It has both positive and negative features. Regarding to positive feature, greater
globalization

brings more potential markets which contribute to the businesses

profits and opportunities to consolidate their positions in the market places. On the
negative

feature,

competition

becomes

more

and more

severe

in greater

globalization. Organizations have found that in order to survive, they must compete
against businesses around them, and even around the world. The companies, thus,
must try best to encompass global market, and get their missions and visions.
Demographic:

The demographic distribution forming the workforce can powerfully

constrain recruitment strategy of an organization. Therefore, it is better to include
demographic on human resource planning.
Economic: It is another important factor that human resource planners must take
into account. According to Nguyen (2004), in the period of economic crisis, the
company has to maintain qualified employees and decrease labor cost also to deal
with this economic

situation.

On the contrary,

the need

of developing

new

workforce to expand production and enhancing training programs to employees are
required when economic develops. It shows that economic directly and indirectly
impacts on employment

issues, such as: recruitment,

selection, and training and

development.
Legal: Laws and government regulations have major impacts on human resource
management.

They

are

issued

to protect
Page 8

employees'

rights

in terms

of


discrimination,

working

conditions,

health

and

safety...

Undoubtedly,

laws

significantly influence on human resource activities and it is essential to conduct
analysis on laws to ensure the success of human resource planning.
Technology:
human

In recent years, technology has had undeniable

resource.

technological

"The

change

development... "(Stone,

level

of

technological

affect

job

design,

1995).

Therefore,

roles and effects to

advancement

recruitment,

analyzing

and

rate

selection,

technological

of

training,
factor

is

necessary.
ii.

Internal factors

Business strategy: Man has become essential resource for organizational
accomplishment.

The advantages

of human resource

strategy

give organization

opportunities to form and develop long-term business strategy. Therefore,

great
human

resource planners should analyze the firm's business strategy to identify the most
appropriate

employees

for the purpose of fulfilling the organization's

goals and

mIssIOns.
Organizational
management

structure: In order to effectively

implement

a business strategy,

must assure that the design of the organizational

support the achievement

of the company's missions. Organizational

narrow or wide span directly affects employees'

structure well
structure with

productivity and behavior. The

structure of a company has a strong impact on the way the tasks are assigned and
how decisions are made. Consequently,

environmental

combined with the analysis of organizational
employees for the organization's
Environmental
advantages

scanning step should be

structure to choose high-qualified

success.

scanning helps human resource managers identify and foresee the

and disadvantages,

opportunities

Page 9

as well as challenges

that their


organizations

have to encounter so that the. ()rganizations can drive theiLstrategic

plans successfully.
Step 2: Labor demand forecast
Labor

demand

forecast

is the process

of using quantitative

and qualitative

approaches to predict the number and kinds of employee the organization will need
in the future to achieve its goals. If human resource planners fail to identify the
business demand, the number of applicants possessing the skills required for filling

job openings will be difficult to obtain, then the capacity of the organization
fulfill its function will be endangered.

to

There is, thus, a need for a careful labor

demand analysis.
Step 3: Labor supply forecast
Once the company
predicted

openings

has forecasted
depending

labor demand,

the next concern is filling

on two sources of supply: internal and external

supply.
i. Internal supply
Internal supply consists of those individuals presently work for the organization.
They can be promoted, transferred or demoted to fill desired job vacancies.
ii. External supply
External
potential

supply consists of people who do not work for the firm and may be
candidates

for the organization,

such as colleges

and universities,

employees of other organizations and the unemployed.
Human

resource

planners

audit the current

workforce

to have

an accurate

estimation about the quantity of employees. This information will allow planners to
tentatively determine labor supply of how many present employees
filling job openings.
existing employees.

However,

are ready for

not every future opening can be satisfied with

Some jobs require higher level of qualifications.
Page 10

This means

_


that human resource
presently

planners

should look for those individuals

work for the organization

who do not

and they are able to undertake

these job

vacancies.

Step 4: Policies suggestion
After carefully analyzing three previous steps, human resource managers as well
as human resource employees

will suggest some policies, conditions and action

plans to seek, attract and select human resource that are suitable for the situation of
organization's

business operations and financial capacity.

Step 5: Action programming
Action programming

is the step of bringing environmental

scannmg, personnel

need forecast, personnel supply forecast and policies suggestion into action. Most
human resource managers

who wish to get successful action programming

recognize

objectively

and implement

demotion so that the organization

the recruitment,

must

selection, promotion and

always has the right people available for the

required jobs.
Step 6: Control and evaluation
Control and evaluation master the efficiency of human resource plans at all time.
Therefore,

plan and action programming

must be frequently

and adjusted to ensure that they are always compatible
objectives

and goals. The purpose

directions

for human resource

mistakes

between

checked, reviewed

with the organizational

of control and evaluation

is to give right

planning activities, find out the differences

planning and implementation

and

and trace the reasons of these

mistakes to suggest solutions (Nguyen, 2004; Tran, 2001). In addition, control and
evaluation

also

equip

practical

and useful

managers.

Page 11

experience

for human

resource


As illustrated in figure 1.1, when human resource planning indicates the need for
employment,

the organization

should consider

contingent workers, professional

alternatives

employer organizations,

such as overtime,

outsourcing ... to satisfy

this demand. When these alternative~, are not suitable, the recruitment

process

begins.
At first, the process starts when a division has human resource requirement.
division will prepare
department.

and submit an employment

requisition

The form contains job title, department,

This

form to personnel

the number of employees

needed for work and the date the employees are desired to perform the job. This
form, then, is used to compare with job description and job specification to identify
necessary qualifications that an applicant needs to have.
The next step in the process is to determine what recruitment sources are used. An
important decision of this step is whether to utilize internal recruitment sources the candidates

from inside the organization,

or external sources - the candidates

from outside. After having an accurate consideration

about the requirements

of

potential applicants, the appropriate methods for internal or external recruitment
are applied to achieve recruitment's
Recruiting

a person

objectives.

to fulfill the organization's

llliSSlOn IS money and time-

consuming; therefore, the organization should have compatible plans and policies
to get the high effectiveness
1.3.2.

of the recruitment process.

Internal recruitment

Schermerhorn,

Hunt and Osborn (1997) define internal recruitment as "the process

for attracting applicants from those currently working for the firm. "
Successful

recruitment

process

is expressed

sufficient time.

Page 12

on hiring suitable

people

III the


There are many sources inside the company that the recruiters can use to find
applicants for job openings, such as: current employees,
employees'

acquaintances.

former employees

Among these sources, current employees

and

are always

received the first consideration because of the below advantages:
Firstly, employees

chosen inside the company have worked in the business for a

long time. They have already understood the organization's
operation

mechanism.

working environment
job performances,

mission, policies and

They only need a short period of time to adapt to new
and working conditions. Therefore,

the assessment

of their

their job satisfaction will be more accurate and objective than

those from external sources. Furthermore, internal recruitment may be effective on
saving time for orientation and training.
Secondly, recruitment through existing employees is a good approach to carry out
promotion

policy.

advancement,
Although

It provides

those

good motivation

to try their

best

for

to move from satisfaction to more satisfaction about the jobs.

internal

recruitment

has

its own

advantages,

it also

has

some

disadvantages:
Internal

recruitment

limits the influx of new creative

inbreeding in employees.

ideas

and encourages

Doing things with the old ways for job performances

is

not always efficient methods. No contribution can be made to the organization for
achieving missions and visions with inbreeding.
Another disadvantage

is that when conducting a job vacancy, numerous candidates

apply for the job opening but only one of them is chosen. Such recruitment can
impact other qualified employees'

morale. Once dissatisfactions

arise, they easily

feel bored with their jobs, especially when they make their own efforts to express
their abilities and devote their energy and time with the hope that their talents will
be admitted.

.

Page 13


1.3.2.1.

Internal recruitment sources

Present employees: When time is considered as the most important factor, present
employees

are favorable for employment requirement.

serving the organization;

therefore,

These workers have been

they only take a short period of time for

training and adapting to new positions in comparison with outsiders. The strength
of

this

approach

effectiveness
Employees'

expresses

on

the

employees'

loyalty

and

performance

because these current applicants have realized good chances.
acquaintances:

about their friends

Employees

and relatives'

in the organization

knowledge,

usually know clearly

skills, abilities

and personality.

Therefore, when the company has a requirement for employment, these employees
can be good introducers to the firm in recruiting their friends and relatives who
may be qualified candidates. This is an effective internal recruitment source that
the organization can refer to without any advertising expense.
Former employees:
organization.

They are also good job applicants to fill job vacancies of an

These candidates

are very familiar with the working environments

and they also have good relationships with current employees, so cost and time for
orienting and training can be saved. However, former employees'
not create good influence

on present employees

leave the company whenever

recruitment may

since they think that they can

they want and can easily come back without any

barrier (Nguyen, 2004).
1.3.2.2.

Internal methods of recruitment

Organizations
posting...

can use various methods, such as: computerized record systems, job

to determine

whether

qualifications

of current employees

are high

enough to perform new vacancies. Among these methods, perhaps, job posting is
the most well-known
existing employees

approach.

It is the way of notifying job openings to the

in the organization

through the utilization of notice board,

which offers the invitation for employment to all workers and employees working
Page 14


for the company. "Job openings should be prominently posted to ensure that all
employees

are easy to see them" (Mondy, Noe & Premeaux,

2001). A major

purpose of this method is to ensure the fairness and to avoid bad effects on the staff
encouraging

policies. It also gives the organization good opportunities to employ

the most appropriate

and the highest qualified candidates without searching from

outside sources.
1.3.3.

External

recruitment:

relates to attracting potential and qualified

individuals from outside of the organization.
The recruitment of a firm can be significantly influenced by external factors. It is
completely

true. Normally, when the unemployment

rate in labor market is high,

the pool of labor sources is larger than available job vacancies;
recruitment

process of an enterprise

may become

therefore,

the

simpler (Nguyen, 2000). In

addition, organization also has opportunities to choose the most qualified applicants
because there is more and more job seekers apply to these positions. Conversely, if
labor market becomes scare, the organization should find effective ways to employ
suitable candidates.
Another important factor that affects the organization's

recruitment

is its image.

The organization received good point of views from publics and government likely
attracting more and better qualified candidates for the company.
External recruitment has a number of advantages:
One big advantage of external recruitment is that applicants provide the business
new perspectives.
succession

They themselves

of the organization's

can contribute new ideas and thinking to the

objectives

and goals. Furthermore,

these new

applicants have their own effective working method in comparison with the old
ones who maintain old working methods.

Page 15


The second advantage
bigger; therefore,

is that the pool of the talents from external

the organization

sources is

has more choices to choose the best-suited

candidates.
Another advantage is that when carrying out external recruitment, human resource
managers can ensure the smooth running of the organization as they do not need to
be worried about filling any vacancy after an insider is recruited for a new position.
Together with advantages,
disadvantage

external recruitment

also has disadvantages.

is that new personnel from outside the organization

A major

typically take

longer orientation to new jobs and working environment.
Furthermore,

external

recruitment

may create

dissatisfaction

among

existing

employees when outsiders are hired and given opportunities to show their abilities
instead of present members. Moreover, recruiting from outside spends a lot of time
and expensive for attracting and selecting highly qualified candidates.
1.3.3.1.

External sources of recruitment

Depending on the nature of work and its requirements,

desired employees might be

recruited from the pool of outside sources. Colleges, universities and employment
agencies are preferred most by human resource managers.
Colleges and universities:
positions.

Candidates

are attractive sources of the employment of managerial

from those

sources

are

often

young

and have

basic

knowledge

about the jobs they have applied; hence, it is easy to train them.

Moreover,

youth is dynamic and enthusiastic,

the successful rate of achieving

organization's

mission and vision, thus, becomes higher.

Employment

agencies:

employees

are

organizations

having

for the firms which have employment

the

functions

of recruiting

needs and also helping the

applicants to locate jobs. They charge the companies and the job seekers for doing

Page 16


business. Employment agencies are reliable sources as they support the business to
recruit qualified applicants who succeeded in preliminary interview and selection
before being introduced to the organization. Therefore, finding candidates through
these agencies might satisfy the firm's employment in the shortest time.
1.3.3.2.

External methods of recruitment

After having the recruitment

sources analysis,

an organization

will determine

where potential qualified candidates are and then select the most suitable methods
for

conducting

universities

recruitment.

recruitment

Employee

referrals,

advertising,

colleges

and

are effective methods in hiring individuals with different

types of skill.
,Employee referrals: is the method of recommending
department

from the firm's employees.

job seekers to the personnel

It is considered

as the most favorable

method in attracting job applicants for the required positions. Human resource
managers usually choose employee referrals approach for some reasons:
(1) Employees

of the business know clearly about their friends who work in the

same field or closely relate to the business activities. Deep understanding

about

these potential candidates will be good referrals for recruiters to attract the most
appropriate

employees.

Because

of employees'

reputation,

they only introduce

high qualified applicants to their organization.
(2) Information

relating to the organization

has already been provided to these

potential individuals. The information enables them to have suitable selections for
joining the enterprise or not.
However, it is difficult for the company to find enough candidates for filling job

vacancies through employee referrals method.

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