HRM Strategies for MWG Students
HRM Strategies for MWG Students
SUNDERLAND COLLEGE
HUMAN RESOURCE MANAGEMENT
Date:
Table of Contents
AN OVERVIEW OF THE COPMPANY....................................................................................................2
General introduction...............................................................................................................................2
Organizational chart................................................................................................................................3
Product range of company......................................................................................................................3
Development strategy.............................................................................................................................4
LO1: Explain the purpose and scope of Human Resource Management in terms of resourcing an
organisation with talent and skills appropriate to fulfil business objectives............................................5
1.1 Human Resource Management (HRM).............................................................................................5
1.2 Role and responsibilities of Human Resource Management...........................................................5
Role..............................................................................................................................................5
Responsibilities............................................................................................................................6
1.3 Purpose of Human Resource Management of Mobile World Group................................................7
1.4 Functions of Human Resource Management.....................................................................................8
1.5 Factors impact of Human Resource Management.............................................................................8
General introduction
Mobile World Investment Corporation (MWG) is the No.1 Retailer in Vietnam by revenue and
net profit after tax with ~4,000 stores nationwide. MWG operates the following concepts:
“thegioididong” mobile phone retail chain, “Dien May Xanh” consumer electronics retail chains,
“Bach Hoa Xanh” grocery retail chain. Also, MWG has expanded to regional markets with the
phones and consumer electronics retail chain in Cambodia. The company has recently developed
a new high-tech agricultural project named “4KFarm” to offer consumers safely-grown fresh
produce of “4 No” policies (zero pesticide, non-GMO seeds, zero preservatives, and zero growth
substances).
MWG concentrates on developing excellent customer services that are in line with the
corporate culture of putting customers as the first priority in all actions.
MWG was proudly named in TOP 50 best big public companies in Asia (voted by
Forbes) and the only Vietnamese representative in Top 100 Asia-Pacific Retailers voted
by Retail Asia Magazine and Euromonitor
MWG has been the Champion in TOP 50 best-performing companies in Vietnam (The
Business Review – Nhip Cau Dau Tu). MWG’s success story was considered as an
interesting case study for researchers at Harvard University, UC Berkeley, Tuck Business
School (US).
Not only be acknowledged as a top-performing company by investors and professional
organizations, but MWG also gains trust from employees given the fact that the Company
has been 4 times consecutively in the TOP 50 Best Places To Work in Vietnam and won
the “Best Winner” in HR Award for Effective Human Resource Policies.
Organizational chart
Product range of company
MWG's item range is long and assorted with various sorts of items, straightforwardly tending to
the requirements of shoppers. The fundamental regions of action of the organization incorporate
exchanging and fixing cell phones, advanced gadgets, and internet business-related fields. From
that point onward, the cross country electronic retail framework is dienmayxanh in 2010 and the
advanced wet market in 2015.
Thegioididong set up in 2002 to turn into the main cell phone corporate store in Vietnam by a
piece of the pie with in excess of 2000 retail locations from one side of the country to the other. It
deals with a cell phone, tablets, workstations, extras, wearables gadgets, and worth-added
administrations
Dienmayxanh dispatched in 2010 with the underlying name "dienmayxanh.com" and afterward
renamed Dienmayxanh in 2015, Dienmayxanh.com has become the main purchaser gadgets
corporate store in Vietnam by a piece of the pie with in excess of 1,000 stores cross country. It sells
telephones, gadgets (earthy colored merchandise), white products, and little machines
Bach Hoa Xanh is a minimart chain work in new food varieties and everyday essential necessities.
In excess of 1,600 stores in Southern and South-Central territories offers a wide scope of new food,
top caliber, and detectable birthplace items, at a serious value contrasted with the conventional wet
market and mother-and-pop supermarkets. All Bach Hoa Xanh stores with cleanliness space are
situated in open areas for homemakers.
Development strategy
One of the advanced methodologies of MWGis firmly control and improve client support
quality
With a jam-packed populace of around 90 million, Vietnam has a solid ability to spend.
As indicated by the data given by MWG, from 2013 to 2014, the quantity of cell phone
clients aged going from 16 to 24 developed by 31% while the number of clients aged
from 25 to 34 saw an expansion of 13%.
The market for shopper gadgets in provincial territories is still generally abandoned.
MWG center to altogether upgrade its essence in this market in 2015.
In 2014, income predominantly comes from fast extension and solid development of the
retail commitment framework. Augmenting the scope of items to exploit its far and wide
retail organization
The execution of online deals has brought gigantic development for MWG. Depend on its
present stable innovative foundation, all-around contributed site, MWG works forward an
Omnichannel model that objectives retailers which have enormous disconnected clients.
In dispatching new items, MWG likewise evaluated another advertising technique. The
retailer held an outside rebate offer of little family items before the store to draw
consideration from close by housewives and suburbanite
Human Resource Management has some specific purposes for recruiting the best employees to
holding them to the company for a longer period of time. Human resource management
facilitates actions for developing the level of skills and capacities of the employees (Mondy and
Gowan, 2005). Human resource management contributes to increasing the value generation
capacity of the employees so that they can help the organization to create value. Some specific
functions of human resource management are: recruitment function, hiring and selecting
function, training and developing function and managing function. In order to complete these
functions appropriately, the management has to do some other functions.
Human resource management is concerned with the development of both individuals and the
organization in which they operate. HRM, then, is engaged not only in securing and developing
the talents of individual workers, but also in implementing programs that enhance
communication and cooperation between those individual workers in order to nurture
organizational development.
The primary responsibilities associated with human resource management include: job analysis
and staffing, organization and utilization of work force, measurement and appraisal of work
force performance, implementation of reward systems for employees, professional development
of workers, and maintenance of work force.
Role
Recruitment
This is the one function which is hand in glove with HR. Recruitment has been one of the major
responsibilities of the HR team. It is the job of HR personnel to plan and devise strategic
campaigns and guidelines for recruiting suitable candidates for a required job description. They
also have to serve as a mediator between the employer and the candidate and communicate
company policies and terms of the contract to the candidate before he is hired. This is the first
pillar of HR management that every HR manager starts with. It’s probably one of the most
important aspects of any HR professional’s career. The recruitment function comprises 2 main
objectives:
Attract Talent
Attracting talent starts with first planning the requirement of manpower in the organization.
Gauging needs of the organization’s human resource requirements, and accordingly putting a
plan of action to fulfill those needs with the placement of “talented professionals”. That’s
followed by creating an “employer brand” which will be representative of the organization’s
good image and portray an attractive impression in the minds of potential candidates.The
employer branding aspects have become very important owing to the new-age media and
awareness of employee rights. Putting the best foot forward is no longer enough, it needs to be
followed through with honest actions in favor of the employees. And finally… the HR manager
needs to create detailed recruitment strategies to carry out the hiring process.
Hire Resources
This is where the recruitment strategies are put into action. In the current age, there’s a ton of
competition vying for the attention of the best talent in the market. The HR manager needs to run
all possible engines to go out there in the market and find that one suitable gem. This part of the
role includes things like finding relevant locations to look in, reach out to maximum potential
candidates using mass communication mediums, aggregate all responses, filter out irrelevant
applications, judge suitable incumbents and coordinate internally to get them interviewed. Once
the finalists are decided, the HR manager turns into a ‘negotiator’ of sorts, working as a mediator
between the company and the candidate to find that win-win ground.
Training
Not all is done once you’ve recruited a suitable candidate for the job. Many organizations
perform tasks a tad differently. Training employees is important to help the new hires get
acquainted with the organization’s work pattern. It is imperative for the HR department to
incorporate a training program for every new employee based on the skill set required for their
job. It will further also contribute to employee motivation and retention
Responsibilities
Some of the responsibilities of an HR Manager:
Training and developmentTraining and development are the indispensable functions of human
resource management. It is the attempt to improve the current or future performance of an
employee by increasing the ability of an employee through educating and increasing one’s skills
or knowledge in the particular subject.Maintaining good working conditionsIt is the
responsibility of the human resource management to provide good working conditions to the
employee so that they may like the workplace and the work environment. It is the fundamental
duty of the HR department to 2 motivate the employees. The study has been found that
employees don’t contribute to the goals of the organization as much as they can. This is because
of the lack of motivation.Managing Employee relationsEmployees are the pillars of any
organization. Employee relationship is a verybroad concept and it is one of the crucial functions
of human resource management. It also helps to foster good employee relations. They have the
ability to influence behaviours and work outputs.
One of the foremost functions of HRM is job design and job analysis. Job design involves the
process of describing duties, responsibilities and operations of the job. To hire the right
employees based on rationality and research, it is imperative to identify the traits of an ideal
candidate who would be suitable for the job. This can be accomplished by describing the skills
and character traits of your top-performing employee. Doing so will help you determine the kind
of candidate you want for the job. You will be able to identify your key minimum requirements
in the candidate to qualify for the job.
Job analysis involves describing the job requirements, such as skills, qualification and work
experience. The vital day-to-day functions need to be identified and described in detail, as they
will decide the future course of action while recruiting.
Recruitment is one of the primary functions of human resource management. HRM aims to
obtain and retain qualified and efficient employees to achieve the goals and objectives of the
company. All this starts with hiring the right employees out of the list of applicants and
favourable candidates.
An HRM helps to source and identify the ideal candidates for interview and selection. The
candidates are then subjected to a comprehensive screening process to filter out the most suitable
candidates from the pool of applicants. The screened candidates are then taken through different
interview rounds to test and analyse their skills, knowledge and work experience required for the
job position.
Once the primary functions of HRM in recruitment are completed, and the candidate gets
selected after rounds of interviews, they are then provided with the job offer in the respective job
positions. This process is important because these selected employees will, after all, help the
company realise its goals and objectives.
Imparting proper training and ensuring the right development of the selected candidates is a
crucial function of HR. After all, the success of the organisation depends on how well the
employees are trained for the job and what are their growth and development opportunities
within the organisation.
The role of HR should be to ensure that the new employees acquire the company-specific
knowledge and skills to perform their task efficiently. It boosts the overall efficiency and
productivity of the workforce, which ultimately results in better business for the company.
HRM plays a very crucial role in preparing employees for bigger tasks and responsibilities,
which leads to the holistic development of employees at work. And an organisation which
provides ample growth and development opportunities to its employees is considered to be a
healthy organisation.
Benefits and compensation form the major crux of the total cost expenditure of an organisation.
It is a must to plug the expenses, and at the same time, it is also necessary to pay the employees
well. Therefore, the role of human resource management is to formulate attractive yet efficient
benefits and compensation packages to attract more employees into the workplace without
disturbing the finances of the company.
The primary objective of the benefits and compensation is to establish equitable and fair
remuneration for everyone. Plus, HR can use benefits and compensation as a leverage to boost
employee productivity as well as establish a good public image of the business.
Therefore, one of the core HR department functions is to lay down clear policies and guidelines
about employee compensation and their available benefits. One of the functions of HR manager
is to ensure the effective implementation of these policies and guidelines. This creates equality
and builds transparency among the employees and the management within the organisation.
After all, the level of employee satisfaction at work is directly proportional to the compensation
and benefits they receive.
Relationships in employment are normally divided into two parts — managerial relations and
labour relations. While labour relations is mainly about the relationship between the workforce
and the company, managerial relations deals with the relationship between the various processes
in an organisation.
Managerial relations determine the amount of work that needs to be done in a given day and how
to mobilise the workforce to accomplish the objective. It is about giving the appropriate project
to the right group of employees to ensure efficient completion of the project. At the same time, it
also entails managing the work schedules of employees to ensure continued productivity. It is
essential that HR handles such relations effectively to maintain the efficiency and productivity of
the company.
7. Labour relations
Cordial labour relations are essential to maintain harmonious relationships between employees at
the workplace. At the workplace, many employees work together towards a single objective.
However, individually, everyone is different from the other in characteristics. Hence, it is natural
to observe a communication gap between two employees. If left unattended, such behaviours can
spoil labour relations in the company.
Therefore, it is crucial for an HR to provide proper rules, regulations and policies about labour
relations. This way, the employees have a proper framework within which they need to operate.
Therefore, every employee will be aware of the policies which will create a cordial and
harmonious work environment.
Such a structured and calm work atmosphere also helps with improving performance and aching
higher targets.
Human resource teams know the ‘humans’ of the organization better than anyone else. This
gives them an upper hand in planning engagement activities. Although such activities might not
fall under the direct functions of HRM, they are indeed required for the organizational welfare
and employer branding.
Every employer should mandatorily follow the health and safety regulations laid out by the
authorities. Our labour laws insist every employer to provide whatever training, supplies, PPE,
and essential information to ensure the safety and health of the employees. Integrating the health
and safety regulations with company procedures or culture is the right way to ensure the safety of
the employees. Making these safety regulations part of the company activities is one of the
important functions of HRM.
HRM assists employees when they run into personal problems which may interfere with the
workflow. Along with discharging administrative responsibilities, HR departments also help
employees in need. Since the pandemic, the need for employee support and assistance has
substantially increased.For example, many employees needed extra time off and medical
assistance during the peak period of the pandemic. For those who reached out for help, whether it
may be in the form of insurance assistance or extra leaves, companies provided help through HR
teams.
Succession planning is a core function of HRMs. It aims at planning, monitoring, and managing
the growth path of the employees from within the organizations.
What usually happens is that promising and bright employees within the organization who have
excelled in their roles are handpicked by their supervisors and HRs, and their growth paths are
developed.
This, of course, becomes quintessential as those employees who recognize the fact that the
company is investing in their growth and development, and therefore, will stay loyal in the long
run. However, while developing such employees towards a higher role, companies must keep in
mind several aspects, such as improving employee engagement, assigning challenging tasks and
activities.
An employee leaving the organisation can prove to be disruptive and expensive. Therefore,
succession planning is a saviour of some sorts, as it helps identify the next person who is just
right to replace the outgoing individual.
It’s usually the production lines and manufacturing units where this HR function is mostly used.
You see, Unions exist in factories and manufacturing units. And their responsibility is towards
the goodwill about the workers — in fact, they’re always vocal and upfront about.
Now, for a company, especially into manufacturing and production, the HRs must have ongoing
Industrial Relations practices. They must also continuously engage with the Unions in a friendly
and positive manner to maintain amicable relations.
The true motive of Industrial Relation touches on a lot of issues within the company. For
instance, Industrial Relations may be in place to meet wage standards, reduce instances that call
for strikes and protests, improve working and safety conditions for employees, reduce resource
wastage and production time and so on.
Workforce planning
Overview : Workforce Planning is the process of analyzing, forecasting, and planning workforce
supply and demand, assessing gaps, and determining target talent management interventions to
ensure that an organization has the right people - with the right skills in the right places at the
right time - to fulfill its mandate and strategic objectives.
Right number of individuals: Companies ought to have accessible the vital individual hours to
meet the business expectations.
• Right time: Customers these days require prompt adjusting continuously. Thus
organizations should make accessible assets right when they are required, immediately.
• Right abilities: Companies ought to have promptly accessible the right-gifted individuals
for quick just as future expected necessities.
• Right contract: The work status of the representative should fit with the organization's in
general resourcing and ability system.
'Hard' labor force arranging is about numbers. Making expectations of things to come utilizing
recorded information, doing a quantitative investigation of the work market to coordinate with
supply with request. Such quantitative investigation and activities are remembered for this
methodology. This is the conventional way to deal with labor force arranging, with restricted
setting and comprehension of the inner mind factors that go into ideal asset the board.
- Lower compensation
Strengths :
The employees of MWG become motivated when they see that better skills really pay-off
to them. So, they are trying to increase their current level of skills to achieve this.
The employees do their best on the job. As a result, better performance may come from
the employees.
The return from the training program can be significant as the employees of MWG take it
seriously.
Weaknesses:
Most of the elderly people from MWG don’t like this approach as the chance of getting a
promotion is lower for them.
Sometimes the biased and subjective judgemental approach of management may hinder
the chance of getting promotion of the talented employees.
Strengths are:
Employee referrals provide the right employees for the right job as the current employee
already know the required skills and knowledge for the job.
As the current employee is liable for the new employee’s performance on the job, the
human resource management department can ask the existing employee if any gap
created.
Weaknesses are:
The current employees may be biased for recruiting their near and dear ones. So,
unskilled employees may be hired for the vacant position.
The benefits from the diversification of the workforce may be reduced by this approach.
In this approach, MWG can get the best employees for the current job from a diverse
source of the workforce.
In this approach, the employer can get the right employee for the right job.
Weaknesses are:
Under direct cost recruitment, the cost of the selecting the best employees is high.
The employees are not familiar with the current tradition of the organization. For this
reason, the management has to waste some time for giving practical knowledge to them.
Strengths are:
The new employees collected from campus recruitment are technically advanced. So,
they don’t have to incur that much cost for training them.
Huge level of employees can be collected at a little time. So, it requires fewer efforts for
the company.
Weaknesses are:
The employees do not have practical experience about the organization. So, proper
training facilities are required for them.
The new employees may shift from one job to another job. So, the cost of training of the
employees may lose.
Conflicts Solution: Conflicts may arise in the course of business. The practices of HRM reduces
the potential conflicts among the employees. For example, the human resources of MWG are
compensated on an objective basis so that any conflicts related to compensation can be
minimized.
Reduce Employee Turnover: The human resource management of MWG follows some policies
for minimizing the Employee turnover by proving them better care and support. If the employee
turnover ratio is high, the cost of firm related to hiring and training the employees will be high
and the performance of MWG will be low.
Improve Employee Performance: The performance of the employees is a vital source of
competitive advantage of MWG. Ongoing training facilities and feedback increase the overall
job performance of the employees. The human resource management provides newer and
updated information and training facilities to its employees so that their contribution to the firm
increases.
Help to Control Budget: A proper Human resource management policy also contributes to
controlling the budget. The budgetary plans of MWG are finally executed by the employees. As
the employees control other resources, they are provided with better facilities so that they use
these resources perfectly.
The Effectiveness of Different HRM Practises in Terms of Raising Organizational Profit and
Productivity are given below:
MWG provides ongoing training facilities and supports in different forms so that the
employees can do their best in the respective jobs. For example Tesco provides real-
world scenario of the current problem, simulation training using sophisticated tools, the
information about the test and preference of the customers and the business environment,
new ways for increasing the productivity. These facilities increase the organizational
productivity and profitability.
MWG provides different varieties of compensation plans and benefits so that it can retain
the employees in the organization for a longer period of time. So, the cost of hiring new
employees and providing training to them can be minimized which will actually increase
the company’s profits by minimizing the cost.
The human resource management of MWG set goals to the individual employees and
team members. The compensation packages are updated from to time by analyzing the
current scenario of the business environment. The employees of the organization become
motivated to work hard and follow the training program seriously.
In MWG, the human resource management manages and organize the employee in such a
way that in enhancing the relationship among the employees . As the employees share
their ideas to others, it creates an opportunity to increase the knowledge in the related
fields.
Internal factors (also known as organizational factors) lie within the organization and affect
human resource management practices. In an organization, human resource management works
within the overall perspective provided by the organization.
Overall perspective for the functioning of human resource management is provided by numerous
organizational factors, the more relevant being the following- organization’s strategy,
organizational culture, trade unions, and organization’s financial position.
Besides the above organizational factors, organization’s technology also affects human resource
management practices by defining nature of jobs.
Employee relation is crucial for MWG as the employee finally execute the plans. However,
before making any final HRM decision, the human resource management should contact with
employees so that the execution of the decision become successful. A proper environment of
trust and care should be developed between the employer and the employee to engage them in
the decision-making process. The employees will be motivated to take part in the execution of
different HRM practices if they understand that they are considered in the decision-making
process.
As employee relation management has a lot of complex issues, the management always focus on
these issues because it will increase the working environment in the organization. The workers
are coming from different sources, so the probability of miscommunication and conflict is very
high. So, the management should work on this are so that there is a peaceful environment in the
business. If the level of relation among the employees increase, they will help one another in any
cases. And, the overall performance of the business will be increased from this practice.
Work laws are the assemblage of decisions relating to working individuals and their associations.
Singular work laws include worries for representatives' privileges in the working environment.
Work laws have a uniform reason, they ensure representatives' privileges and presented
managers' commitments and obligations. They additionally have numerous capacities, the
essential elements of work laws are to give equivalent freedom and pay, guarantee
representatives' physical and mental prosperity and security, and working environment variety.
Business enactment
Social security, government assistance, wellbeing, and medical care, all things
considered,
Receive pay rates reliably with the professional abilities and grade based on the
concurrence with the business; get work assurance, work in safe clean conditions; take
official leave, paid yearly leave and appreciate aggregate advantages;
Establish, join and take part in exercises of the Union, proficient associations, and
different associations as endorsed by law; demand and partaking in conversations with
the business, practice the majority rule guideline, and get consultancy at working
environments to secure the legal and get consultancy at working environments to ensure
the legal rights and interests; take part in the administration under the guidelines of the
business
Observe the work discipline, work guidelines and comply with the legal administration of
the business
Employ, orchestrate and oversee work as per the interest for creations and business; laud
and discipline for infringement of work disciplines
Establish, join, take an interest in the exercises of expert associations and different
associations as endorsed by law
Request the work altogether to examine, arrange and close the aggregate work
understanding; take an interest in settling work debates and strikes; talk about with the
Union about the issue in labor relations improve the material and mental existence of the
representatives
Perform the work contract, aggregate work understanding, and different concurrences
with representatives, regard the honor and pride of representatives
Establish the component and talk about it with the work aggregate at the undertaking and
carefully notice the interior majority rule guidelines
Make the work the executives book, compensation book and present them in line with
capable organizations
Declare the work inside 30 days as from beginning the activity, intermittently make and
send gives an account of the adjustment in the work status during the activity to
neighborhood state work the board organizations, carry out the law arrangements on
friendly protection and law arrangements on clinical protection
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