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BECAMEX BUSINESS SCHOOL

CAPSTONE PROJECT:
HR STRATEGY ANALYSIS OF
TECHNO COATINGS INDUSTRY COMPANY

HRM 493 – Human Resource Strategy


Lecturer: Hien Pham

Trần Thị Tuyết Trinh 1632300195


Nguyễn Ngọc Đoan Trang 1732300319
Nguyễn Hoàng Bảo 1532300312
Lê Đình Triết 1532300325

Quarter 3, 2021
TABLE OF CONTENTS
INTRODUCTION....................................................................................................................3
1. COMPANY INFORMATION.....................................................................................3
HRM ANALYSIS.....................................................................................................................4
1. WORK ANALYSIS AND DESIGN............................................................................4
2. RECRUITMENT AND SELECTION........................................................................5
3. TRAINING AND DEVELOPMENT..........................................................................5
4. PERFORMANCE MANAGEMENT..........................................................................6
5. COMPENSATION AND BENEFITS.........................................................................6
6. EMPLOYEE RELATIONS.........................................................................................7
7. PERSONNEL POLICIES............................................................................................7
8. EMPLOYEE DATA AND INFORMATION.............................................................8
9. COMPLIANCE WITH LAWS....................................................................................8
10. SUPPORT FOR STRATEGY..................................................................................8
ISSUES IDENTIFICATION & SOLUTIONS....................................................................10
1. POOR COMMUNICATION LIMITATION...........................................................10
2. OLD EMPLOYEES WITHOUT UPGRADING CURRENT INFORMATION..11
3. LACK OF COLLABORATION (TEAM BUILDING)...........................................12
PROJECT SCHEDULE........................................................................................................14

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INTRODUCTION

1. COMPANY INFORMATION

 Name: TECHNO COATINGS INDUSTRY COMPANY LIMITED


 Registered name: CONG TY TNHH TECHNO COATINGS INDUSTRY
 Abbreviation name: TECHNO COATINGS
 Founding year: 2015
 Location: No. 12, VSIP II-A, Hoa Binh Street, Viet Nam - Singapore II-A Industrial
Park, Vinh Tan Commune, Tan Uyen Town, Binh Duong Province, Vietnam
 Core values: Honesty, Boldness, and Loyalty
 Vision
Technological leader in Asia with specializes and innovative coatings
Techno 360 Coatings Brand as the #1 choice of coating solution
TECHNO COATINGS INDUSTRY COMPANY LIMITED is a part of the
development, manufacture, and supply of industrial coatings for the wood, plastics, glass,
ceramics, metals and composites industries.

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HRM ANALYSIS
1. WORK ANALYSIS AND DESIGN

Work analysis is a method for determining what the most essential work activities are,
how they are carried out, and what human characteristics are required to do them
successfully. Work analysis is an attempt to build a theory of human behavior for the task
at hand in order to aid management choices.

According to our observation in the Techno Coating 360 manufacturing company, the
organization structure of this company is divided into 5 departments: Board of Directors,
Finance and Administrative department, Sale and Marketing department, Technical
department, and Operations department.

Techno Coating 360 manufacturing company designs its tasks in many departments
above so that they can control the quality of products. The number of employees in
Techno is about 100 people in which local employment occupies more than 90 percent
and the expatriates from other countries appropriate approximately 10 percent.

Finance and Administrative department plays an important role in the organization,


this department sets the culture and the strategy for the whole company. They are
responsible for all the significant decisions so that the company goes the right way. The
HR department is responsible for labor forces in the organization; this team assists other
departments based on the strategy of the organization. Financial department must be
responsible for every transaction in the organization. This team plays an important role in
the company so that the company avoids wasting money. The Technical department is
responsible for innovating new products and services. This team researches and
expertizes the new type of paint for different types of materials. There is also a quality
control department which is responsible for checking the quality of the products before
delivering to the customers. There are many machines and tools to test the product
samples in the showroom. Besides that, the Sales department plays significant roles in
generating revenue in the organization. They assist and service regularly so that the
customers can go along with the company. Moreover, there are some engineering teams
which work outside to guide the customers using their product exactly.

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Finally, the manufacturing team plays important roles in mixing chemical liquid to
manufacture their special products.

2. RECRUITMENT AND SELECTION

In the recruitment process, Techno Coating 360 Company is not looking for the best
qualified person for each job. They are looking for someone who can do the job well and,
in some cases, for someone who shows promise for being promoted.

There are two sources to recruit new employees: internal and external candidates. It
depends on each type of each situation and the strategy of the organization so that the HR
department decides to recruit from internal or external sources. Generally, most of the
new candidates who work in the manufacturing and sales department are from external
sources.

There are generally two ways of recruiting candidates: direct and indirect methods.
Direct recruiting method is the process of posting the announcement of a job ad in front
of the company and the candidates submit their CV directly to the organization. Another
way is indirect recruiting method which is known as online recruiting. In this method, the
organization posts the job ad on the internet and links with other recruiting websites such
as CareerBuilder, LinkedIn and so on. However, in the situation of covid-19, recruiting
online is the trend of HR. the candidates can find the job and submit CV online so that
they can save time and expense.

3. TRAINING AND DEVELOPMENT

Typically, training is divided into two types: general training, which will make an
employee more flexible and adaptable within the organization and more marketable
outside it, and specific training, which is unique to the organization or even the position.
Employee development involves examining an employee’s career prospects and offering
support in his or her career path.

In general training, new employees in Techno Coating 360 Company will be trained
about the general information of the organization before starting the job. This section
plays an important role so that the new workers can understand the culture and policy of
the organization. Moreover, they can know how to deal with the problems and conflicts

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among members of the organization. Finally, the employees can understand the mission,
the vision and value of the company by following the strategy of Techno Coating 360
Company.

In specific training or on the job training, new workers are guided to be used to the
current task so that the manufacturing process can work effectively. All the employees
must be trained in safety courses because Techno Coating 360 Company is obliged to
ensure that all employees are aware of any safety hazards associated with their jobs or
their work environments.

All employees have opportunities to promote by upgrading their skills and


knowledge. Techno Coating 360 Company has clear policy which has been shown on the
general training. Therefore, all the employees will have their goal to achieve in the future.

4. PERFORMANCE MANAGEMENT

Performance management is a corporate management technique that assists managers


in monitoring and evaluating the performance of their staff. The purpose of performance
management is to create an atmosphere in which individuals can perform to their full
potential in order to accomplish the highest-quality work in the most efficient and
effective manner possible.

Techno Coating 360 Company also has a KPI system to evaluate its employees. Each
department has different types of KPI to evaluate their effectiveness of the tasks. This is
the tool to measure the level of efficiency of the team in the company. Most of the KPIs
in Techno Coating 360 consider the KPI in a team and the leader of the team will be
responsible to encourage and give feedback to their team members so that the skill,
knowledge, and abilities of employees can be improved. If the KPI of the team achieves
the goal or the objective of the company, they will get benefits from the Techno Coating
Company. The evaluation system in Techno is not efficient because this KPI is conducted
annually. Techno Coating is considering updating the quality and the system of
employment evaluation system.

5. COMPENSATION AND BENEFITS


Compensation and benefits are the system in HRM so that the company encourages it
employees to work effectively. Techno Coating 360 Company has the compensation and

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benefit system for its employees so that all the employees are treated fairly. Base salary is
the basic compensation in this company. Besides that, insurance, commission, promotion,
support and so on are other benefits that the Techno Coating 360 Company provides to
their employees. Techno always takes care of their employees by supporting milk for
employees so that they can ensure that the employees have energy to develop themselves.
6. EMPLOYEE RELATIONS

Employee relations refer to an organization's efforts to create and maintain a positive


relationship with its employees. HR helps prevent and resolve problems or disputes
between employees and management. To maintain positive employee relations, an
organization must view employees as stakeholders and contributors.

According to what we observed during our trip, Techno Coating 360 company does
not apply surveys for employees but instead they only use the KPI system to evaluate
team performance. By doing this the company hopes when acting as a team the employee
will provide support to each other so the team might get high performance for the project
they got provided. However, Techno Coating 360 companies still have some problems
among employees in a company. For example, because the employees in the company are
mainly local people, and a small part of them are Malaysian, it is inevitable that there are
differences between languages and cultures.

7. PERSONNEL POLICIES

Personnel policies lay down the criteria for decision making in accordance with the
overall purpose of the organization. The policies for human resources are formulated by
the top management for assisting the executives.

Techno Coaching companies always make sure that the employees are well informed
about the changing of policy. This is to help the employee to understand and adapt so
they can work more effectively to support the company. The company vision and mission
are well written and put at place where most of the employees can see and remind them of
the purpose of their work for the company. 

The company also has strict policy on what the employee has to wear, what they can
or cannot bring to the company. Due to the dangerous equipment and chemicals that the

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employees have to work with, it is Techno responsibility to make sure that the employee
strictly follows the company policy to minimize unforeseen accidents.

8. EMPLOYEE DATA AND INFORMATION

The Human Resources Department is responsible for the collection, development, and
maintenance of centralized personnel records for employees. HR Software includes a
talent management system that enables you to capture and manage all the data
automatically and paperless.

All employees' information is safe so that no employee personal information is leaked


outside the company. The data is easy to manage because the Techno Coaching company
is quite small. The working information of the employees are record detail so that the
company can keep track of the employees working process.

9. COMPLIANCE WITH LAWS

Due to the fact that, Techno Coating companies specialize in dealing with paint and
chemicals they have to follow lots of laws and regulations.

Fire safety: the company is well equipped to prevent fire accidents with fire
extinguishers fully equipped in the company. The company also put sign warning on
products that are flammable and at places that fire can easily start. Cell phones and
potential explosives are not allowed in the company.

Safety equipment: all employees that work directly with the paint must wear safety
equipment to avoid the harmful chemical that they have to work with.

The company also provides each employee with about 3 boxes of milk to keep the
employee healthy in the workplace. 

Furthermore, the company policy also implements allowance and compensation for
the employee.

10. SUPPORT FOR STRATEGY


 Human resource planning and forecasting:

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Currently Techno Coating does not have any problem with planning and
forecasting. The process of forecasting and preparing for demand and supply are well
calculated so that the company has enough manpower to prepare for unexpected
situations.

 Change management
Due to Covid19 pandemic, many companies are forced to change their
working process and Techno Coating Company is not an exception. The company
meetings are now moved to online and unnecessary processes have been cut so that
the employees have less work to do at the company. Safety regulations strictly apply
for the employees who are still working at the company to prevent Covid 19.

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ISSUES IDENTIFICATION & SOLUTIONS

1. POOR COMMUNICATION LIMITATION


A company's capacity to optimize performance is limited by poor communication.
Communication issues can lead to a distrustful culture, low employee engagement,
uncertainty, and unproductive customer interactions.
Currently, there are approximately 100 employees in the company, including 10
Malaysian and the rest of the employees are Vietnamese. During working hours,
Vietnamese employees find it difficult to interact and communicate with other,
particularly expatriate due to the differences of the language.
Since language was used to transfer ideas to other forms, language is crucial in all
types of communication, whether written or spoken. However, certain employees may
have challenges. When employees are at work, they might interact to a lot of people with
different kind of language and different style of speaking even is in same language. As a
result, the message that needs to be sent will be ineffective or completely incorrect.
Therefore, this might be classified as a language barrier. The inability to communicate via
language is referred to as a language barrier.
Currently, Techno 360 has not figured out any solutions for this problem yet.
Therefore, this report will partly suggest possible solutions as well as being a tool to
contribute to objective ideas of solutions. In order to recommend solutions, this report is
going to indicate temporary and permanent strategies to solve the problem.
 Temporary solution: On the other hand, Techno 360 now needs a fast solution to
face the problem to ensure the system operates efficiently. Hence, so as to cope with the
situation, Techno 360 should discuss with Malaysian managers to highlight and give
more details on assigning tasks to their employees. In other words, Techno 360 needs
assistants to interpret and highlight important information and tasks after meetings for
other employees to follow easier. They can also use an outsource interpreter or recruit
employees at the company. Still, the key solution is that Malaysian managers should
give tasks in more detail and highlight vital parts as hiring interpreters cost quite high.
 Permanent solution: regarding permanent recommendation, the supervisors at the
company who play the role as the bridge between Malaysian managers and Vietnamese
employees, are needed to enhance their English level. From this point, it did not only help
supervisors work more smoothly with Malaysian managers but also, they can be more
able to translate and interpret tasks much more exactly to their Vietnamese employees.

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Techno 360 should cooperate with an English centre and have Vietnamese supervisors
schedule to join the classes at the company at least 2 days a week. However, not only
Vietnamese supervisors are joining, but also the rest of Vietnamese employees have to
improve their English skills, which is a revolution of developing implicit knowledge,
which stays as long as the employees work with the company, it cannot easily be erased.
2. OLD EMPLOYEES WITHOUT UPGRADING CURRENT INFORMATION
Currently, if the company recruits new employees with updated new skills, it will
bring some benefits. For one, a new employee can bring on a different perspective. Old
problems can be solved with new solutions, given the fresh set of eyes looking at them
which in turn leads to a more productive, flexible company.
New employees can also bring new skills and technology to the table. They may
know software that helps a company do the jobs faster or maybe they have a different,
more efficient way of doing things. However, the group of old employees ignores
updating new knowledge. Moreover, current employees may feel that their chances to
advance their career in the company are very limited, which causes conflict between the
old and the new ones. These are supposed temporary and permanent solutions:
 Temporary solution: First, the HR department needs to analyse who needs training
and what skills are needed for training. Because Techno 360 has separate sections of its
business, Techno should apply Planday (an application) to create independent schedules
to manage its team. This app helps companies manage employees' availability, vacation
time, absence and have a full overview of their activity easily. Moreover, Techno 360 can
send the old employees to an external training course or social learning, on-the-job
training. In more details, new employees with upgraded high skills coach and give
feedback for old employees. Techno can give them some tasks that require cooperation
and mutual support between these two groups. And of course, the company will give the
deadline from 2 to 3 months and facilitate training support for these employees. After
training, they will be tested and receive feedback.
 Permanent solution: At the same time, Techno 360 also needs to review its KPI to
evaluate the performance of the employees after going to training. For example, if the
employees perform the assigned task excellently/well, their salary in this month will be
multiplied by a rate of 1.1 or 1.05 and if they do not complete it for objective/subjective
reasons, the salary will be multiplied by a rate of 0.8 or 0.5.

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3. LACK OF COLLABORATION (TEAM BUILDING)
There is no doubt that when your workers work together as a team, they are more
efficient and productive than if they worked alone. Therefore, poor collaboration at the
workplace decreases quality, productivity, and revenues. Data must be easily accessible
and shared across the value chain for teams to interact effectively.
Due to the Covid-19 pandemic, the company is not able to plan and organize any trips
or vacations for employees. Moreover, because of the differences in the working place,
engineering groups have to work outside, and they may be allowed to not attend the
company, resulting in a lack of collaboration. Additionally, language barriers may
become one of the most influences on lacking collaboration as there is less interaction and
communication between departments, even members of a team.
Though Techno 360 applied KPI for every department to have them work together for
the same targets, which somehow help them find their own ways to work more effectively
with others, there is still distance even in a team. Put it in another word, they may have
conflicts with others while dealing with monthly KPI, but they never try to talk to solve
the conflicts yet. This is also one of the most reasons that contribute to the lack of
collaboration. Apart from setting KPI for each department, this report also recommends
temporary and permanent solutions.
 Temporary solution: Taking advantage of the small size of the business,
communication issues can be easily solved. Techno 360 can create an internal group chat
inside the company for employees to share stories, current news related to the film
industry, and announcements. This method may help Techno 360 employees to get closer
to each other virtually, which can improve employees’ relationships. Furthermore, so as
to build the team spirit, Techno 360 can also organize some events seasonally and get
every member of every department to join the activities. For example, Techno 360 can
create a decorating competition for the Tet holiday or Christmas holiday among
departments, during this activity member and groups have a chance to discuss and
together get the ideas at the same time increasing the team-building skills.
 Permanent solution: Techno 360 should build trust in the organization. To be more
specific, they should create a common understanding of the operational activities within
the organization. They also have to create a common context of the work to be
accomplished and the goals of the group that will help to set up a shared language and
shared view of how work is accomplished. It is also essential that Techno360 employees
see their managers model the actions that are expected of them. Starting with actively

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listening to others and encouraging employees to discuss and discuss their problems, this
is a good place to start. Before workers may feel safe talking with others, they must
believe their managers are trustworthy.

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PROJECT SCHEDULE

Project Team Members Role Responsibilities

Trần Thị Tuyết Trinh Leader Introduction & Issue


identification and solution

Nguyễn Ngọc Đoan Trang Team member

Nguyễn Hoàng Bảo Team member HRM Analysis

Lê Đình Triết Team member

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