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In this paper, Mobile World Investment Corporation (MWG) is chosen as a distinct example to learn
about the purpose and scope of HRM in terms of providing suitable talents and skills to achieve
business’s objectives, and appraise the efficiency of HRM’s key elements.
Figure. Noble awards and certificates MWG is honored to receive at Vietnam HR Awards 2018.
Company Profile
Overview of MWG
Company Structure
Vision
MWG wants to become the most powerful leader in multidisciplinary retail industry (B2C e-commerce).
Mission
MWG brings wealth to employees, high profits for long-term investors and charitable funds for society.
Main target
Strategy
Core values
MWG’s members all have to assume responsibility, make commitments and create mutual respect in
the work environment.
➢ To achieve the goals and follow the strategy company set out, while still maintaining the mission
and core values, HR department must try its best to fulfill its functions. HR department must
ensure the quality and quantity of personnel necessary for the business to operate so as to create
a competitive advantage in the market. Besides, the company not only focuses on profit but also
cares about employees and society by emphasizing business ethics, associating the interests of
enterprises with those of customers and society, and attaching importance to efficiency
associated with social responsibility. (Armstrong and Taylor, 2014)
➢ This helps the HR department raise the MWG’s brand name and is a strong point to attract talents
because humans are always a valuable resource of the company.
HR Department
HRM purpose and functions (HR functions, HR activities, HR Management)
We know that HR main mission is to contribute to the success of the company by finding, maintaining
and developing its human resources. This is fulfilled by the creation of effective programs, and on the
other, making sure that they follow rules and procedures in the field. (Kenjo Blog, 2021)
MWG's HR department has many different specialized departments with each certain role. They
collaborate to make the success of HR department in particular, and the corporation in general.
- Recruitment and Selection: assumes the role of recruiting employees for all chains.
• Receive recruitment requests from departments in the company.
• Check and consult departments on recruitment requirements in accordance with the actual
situation, plan and budget.
• Post recruitment news, use recruitment channels to attract and create candidate sources,
screen records.
• Conduct interviews and return interview results to candidates.
• Receive new employees, check job records.
• Manage candidate profiles, and transfer profiles to relevant parties.
• Make transfers and promotions.
• Conduct job severance interviews, discuss and solve problems if within the assigned
competence.
• Prepare reports on recruitment when required.
- Compensation and Benefit:
• Register Tax Code and adjust employee's information on Tax Code.
• Register the family background deduction file (dependents) for the employee.
• Report the use of employees periodically according to regulations.
• Make an income statement, confirm the phone.
• Prepare documents upon request from the authorities.
• Set up contract appendix, send it to the employee to sign and revoke.
- Training and Development:
• Directly train soft skills for employees.
• Make training quality reports: before, during and after training.
• Statistic indicators of Training and provide to stakeholders.
• Statistic and consult on fail case alerts for training activities.
• Support training activities through policies, processes and tools.
- Labor relations – Internal PR:
• Make ideas and design programs towards internal employee care activities, community
activities.
• Write media articles on internal communication channels.
• Communicating culture, core values of the business to all employees.
- Administrative responsibilities:
• Sum up registration, order and payment of stationeries.
• Check and pay the courier costs, full – trip truck rental.
• Prepare legal documents, power of attorney, and electricity/water records as required.
• Book accommodation rooms, training rooms.
• Manage office.
• Other arising jobs on request of the Head of Department.
- Performance management:
• Examine internal audit and compliance with the process of departments.
• Examine dishonest and fraudulent issues that cause losses to the company.
• Evaluate and identify risks, losses and damages in operating in departments.
• Propose to improve operating procedures of departments.
• Report detected problems to direct management to complete the process.
(MWG, n.d)
With a vision to 2030, MWG remains the number one retail, e-commerce and related service corporation
in Southeast Asia, trusted by dedicated service and outstanding products and services. Contributing
greatly to social responsibility, is a testament to transparent and humane operations wherever the
corporation is present. MWG aims to increase location coverage, improve profit margins, and ensure the
best operation of the MWG Omni channel (online and offline) in 2020. (MWG, 2020)
The organization's top 50 people will outline the macroeconomic picture of next year. After 2 – 3 days
of the meeting, they will have a list with 5 bullet points - 5 major directions for the organization.
That is the basis for a creative direction for the company in the next year. Because then, each department
will detail their actions according to this major action direction.
Specifically, as at the time of realizing the market has reached saturation stage, the company decides
not to increase the number of stores anymore, but to focus on quality: Not product quality, but
enhancement customer comments. (Duong, 2017)
These business strategies require companies to recruit an enormous resource force. First, HR
department will take over the recruitment requests of other departments and discuss the appropriate
plan and budget. Next, HR department will post recruitment news, filter profiles, interview/test and
return results to candidates. Then, HR department will take in the new employees and transfer them to
the interested parties to fulfill the company’s strategy.
Competence framework helps to balance the organization, save time, and personnel costs. It is used for
recruiting personnel, training regimes, evaluating competencies, arranging salary incentives, or
rewarding employees.
MWG is Retail Corporation whose main business is electricity retail mobile phones, digital equipment,
and consumer electronics with many types of computers, phones, and electronics. This is a commodity
with great potential for exploitation and expansion.
Depending on the job, the business has different requirements. The departments within the company
work together to achieve the goals. Human resources directly creating value for the company are Sales
Consultants – who directly interact with customers.
- Graduated from high school or higher.
- Nice appearance. Height: men 1m67, women 1m56.
- Age from 18 – 27.
- Cheerful, friendly, open-minded.
- Active, modern and progressive.
- Be a good listener, fluent in confident communication.
- Desire to develop and to stick with MWG for a long time.
Knowledge management highlights the process of retaining and sharing the knowledge/experience
within the organization.
There are 3 main areas of knowledge management: accumulating knowledge, storing knowledge, and
sharing knowledge. The target is to boost the efficiency of the company’s collective knowledge. (Valamis,
2021)
MWG has Before – In training courses for all employees working at the company. This not only helps
employees improve their professional skills but also life skills, spirit and life values. All courses are free
and “internally only” privileges. (MWG, 2020)
MWG also recruits training staff (at least 1 year working in the system, graduated from Human
Resources, Education – Training, Pedagogy, Economics,...) to conduct training courses to improve
product knowledge for new/working employees, and soft skills training to help replenish the missing
skills, achieve higher efficiency at work.
Internal source
MWG’s representative shared that it is a waste of time for filtering the records, performing 5 – 6 tests
and getting through 2 interview rounds to select 1000 new managers each year, so the promotion of HR
to manager position is important for MWG.
“Promotion based on data” program will collect data to recommend and appoint managerial staff. This
is completely operated automatically to boost maximum capacity in the performance of employees, and
create a fair environment for mutual development. (Thanh Nien, 2020)
Chairman Tran Duc Tai shared that the top management of MWG does not have any peers because those
transferred from other companies do not have knowledge about the environment, company culture,
business culture, or working style. Senior leaders are appointed with personnel after a long period of
attachment. On the other hand, manager going up from employee will understand and sympathize with
the staff, know how to tutor, and help them quickly grasp the actual work. (Khong Chiem, 2019)
Currently, all store managers of MWG have been promoted internally. Some takes 5 to 7 years, and even
the fastest store manager gets promoted for 6 months. (MWG, 2020)
External source
Steps for recruitment process at MWG:
- Identify the hiring need: point out the vacancies and analyze the competency – based for the role.
- Talent search:
• MWG’s careers site: https://vieclam.thegioididong.com/
• Social networking platform: https://www.facebook.com/tuyendungtgdd
- Screening records > Keep inappropriate records/Announce suitable ones.
- Test: Abstract Essay test.
- Interview: Direct interview with HR director, HR manager, professional interviewer.
- Announce the results.
Chairman of MWG admitted that the organization’s weakest side is welcoming the peer outside
because they hardly integrate with the company culture. However, he also emphasized the
importance of new elements for new ideas at some point. (Nguyen, 2018)
It is highlighted that the company's staff count has been doubled in just 2 years (from 2018).
Smart interviewing
Dozen supermarkets are opened a month and IT has to be used for recruitment. Through online HRM
tools and smart interviews, any candidate across the country can go to this online site and register to
apply for each position.
Online interview interface only takes 18 minutes. Through questions will help evaluate personality, skills
to choose the most 50 excellent candidates. They then applied online, joining MWG home. All data is in
the company software to recruit next positions, saving lots of HRM costs. (Dien dan Doanh Nghiep, 2018)
Impact of HRM on organizational performance
The existence and development of an enterprise depends greatly on the exploitation and efficient use
of resources: capital, facilities, scientific and technical advances, employees. These factors have a close
relationship with each other and interact with each other.
Not only has an absolute voice in recruitment at MWG, HR department is also given full authority in
consulting and handling all human resource issues independently. For example, when the Sales
Department of MWG plans to open a new store in a locality, they only need to provide HR Department
3 basic information: location of new store, estimated revenue, date of expected opening. All that follow
up will be done by HR Department to analyze the needed resources, recruit and train to be ready for the
opening day. (HRS.ULSA, 2015)
➢ It is the new way of doing this, different from the direction of other competitors in the market,
which has brought the MWG’s competitive advantages. It can be seen that the correct
recognition of the functions and duties of HR Department, first of all, has helped MWG to bring
into play its strength, the recruitment quality of the company is homogeneous, and ensures the
employee's convergence core values that the company wants to build.
He also told that an employee works for two purposes only: One is money - Two is fun. In addition to the
working environment, businesses need to have both financial factors, well combined with these two
factors, the good people will come to the business on their own, according to the principle of "low
water". (Phuong, 2019)
HRM requires strategic planning to point out not only the changing needs of employers but also the
constantly changing competitive job market. (Brainly, 2020)
Training department always strives to design specialized courses as well as soft skills courses to suit each
department. In 2019, Training department organized 1.632 courses, attracting 93.240 attendance counts
among all MWG employees (average training time of 10 hours/employee). (MWG, 2020)
➢ HR department of MWG always support the organization by providing right people in the right
position in order to accomplish the operational and strategic goals of the organization. Besides,
they take responsibility for creating conducive environment for employees to develop and utilize
their skills. Moreover, they have to make sure that the human resources of the company maintain
their performance standards and enhance productivity through practical job design, sufficient
orientation, performance-based feedback and ascertaining two-way communication.
Evaluation different approaches to recruitment and selection, PESTLE analysis
PESTLE Analysis
Political
30/06/2019: Vietnam and the EU officially signed EVFTA (EU – Vietnam Free trade Agreement) and IPA
(Investment Protection Agreement). (Bo Cong Thuong, n.d)
Economic
GDP per capita increased 2.7 times (2002 – 2018), reaching $2,700 in 2019.
MWG require its human resources mostly under 40, at least graduating from a college/university, and
having a certain expertise. However, in addition to speeding up the opening of supermarkets, Tet is also
the peak time of manual labor, loading and unloading of goods at the warehouses, central warehouses
of BHX and TGDD. This nature of work only requires good health and good condition, very suitable for
workers without qualifications, but wants a stable job – with income to support their family. (Tuoi Tre
Online, 2019)
➢ Vietnam's human resources are fully qualified to meet the company's requirements, which is a
good sign for the evolution of MWG.
Technology
Some enterprise management software: ERP, Oracle, Microsoft Dynamic… (amis.misa.vn, 2019)
It took MWG 13 years to build a core technology foundation based on Vietnam's own brainpower.
➢ Opportunity.
MWG’s achievement:
Legal
Legal policy:
One of the reasons for internal promotion policy is the company's own history. Mr. Tai once mentioned
the biggest failure in team building of the company was the period 1998 – 1999. At this point, MWG
began to grow rapidly, and needed to strengthen its team. The company chose the direction of hunting
talent at other corporations and even foreign corporations. However, after a period of looking back, they
could not hold it back, but left MWG and mostly returned to foreign businesses. Since then, Mr. Tai found
that this road was not suitable for MWG, and from there on, he focused on internal personnel.
HR practices
Learning and development (how people learn, types of learning, training process)
Learn about corporate culture:
It takes one day for new enter employees to deeply learn about the company culture to understand and
experience core values such as devotion to customers, honesty.
The concept of "integrity" is a special core value that makes the difference of MWG, "integrity" is
understood to respect their words and commitment. Everyone live with this point, company vision also
practice with this point.
In 2017, the company organized the 2nd in – house training course on Agile Project Management for
MWG’s application development team. Participating team came from various departments of the IT
department such as: ERP department, Web programming department, management reporting
department (BI), quality management department, website development team.
The IT system is the heart of all MWG activities. MWG wanted their members to build a more efficient,
flexible, quicker IT system, and have better software quality to complete business goals. (APEX
Learning Content Development Team, 2017)
More than 10,000 PG personnel of financial companies in TGDD and DMX chains cannot meet the
demand of installment purchases. Lack of installment counselors makes up to 40% customers wait and
worse to choose the desired installment program.
PG team installments were invested in at a sizable expense. From 01/07/2020, all installment employees
of financial companies withdrew from TGDD and DMX systems, instead, the 2-chain staff will take over
the entire work.
The savings will be used to invest in more attractive installment plans for customers such as more 0%
installment programs, 0 VND upfront for more products, and so customers can access more products
that they previously could not afford. (Linh, 2020)
Performance management
Two well – known approaches to HRM are the concepts of ‘best fit’ and ‘best practice’. (UKEssays, 2018)
‘Best fit’ approach to strategic HRM emphasizes the familiarity of strategic management and HRM by
studying the effect and nature of vertical integration. Vertical integration, in which leverage is reached
by close alignment of HR policies and business goals practices.
‘Best practices’ explores the relation between various good HR methods and organization's performance,
generally determined by commitment and happiness of employees.
➢ Common set of practices will raise the performance of all adopted organizations.
In just 3 days, MWG lost nearly 2,000 billion VND in market capitalization because the scandal of
revealing 5.4 million information of its customers appeared on social networks (07/11/2018) and fell into
a series of dark days when prices continued to decline sharply, stock prices sank in red. At the end of the
session on 9/11/2018, MWG shares fell by 3.64%, equivalent to the loss of 4,000 VND/share (down to
106,000 VND/share). (Bao Dau Tu, 2018)
➢ MWG immediately sent emails to reassure shareholders and deny the incident right after the
Department of Information Security (Ministry of Information and Communications) announced
the results "there are no signs of attack on components of the information technology system".
Reward management
Mr. Nguyen Duc Tai – Chairman of MWG always emphasizes a message that employees are valued only
after customers, and he believes that the staff makes the business successful.
Retaining talented people with "Big Sea policy": MWG has no employers and employees. MWG has only
a crew of 80.000 who go fishing together and share the achievements.
Over 15 years of operation, MWG has always been the top of mind of candidates when looking for jobs
in the retail industry. The creation of HR policies – Attractive staff remuneration has helped MWG has
a professional working environment, helping the company to maintain its position as one of the desirable
workplace in the eyes of candidates. (MWG, 2020)
- Exciting Year End Bonus: Super Big - Super Huge! In the last 3 years, MWG gives year-end bonuses
up to 3 months of income (for Supermarket staff) and 3–9 months of income (for KPI staff).
- Minimum of 6 months to become Supermarket manager. 100% staff is in a fair field to promote
and develop themselves. Always keep yourself committed to the core values, enthusiastically
working, and serving the customers, promotion opportunities are up to you.
- "Special Offer" when buying goods within the company also for relatives (parents, siblings).
- Special health insurance package. Super preferential prices special health insurance for
employees and relatives. In addition to a number of specialties, MWG also has accident insurance
packages.
- Not only TRAINING, but also DEVELOP. Free courses and privileged "internal only".
- Guaranteed welfare. Full benefits for employees according to the law: signing labor contract,
participating in health insurance, social insurance, sick leave, joining the union. Maternity regime
is attentive and takes special care of the time off – vacation mode and work reservation. Days off
in a month/year, teambuilding 1 – 2 times/year.
- ‘Super utility and modern’ working space: modern and fully equipped building and working area,
open space without partitions, many trees helps employees comfortably work and create. MWG
Headquarters also has many amenities attached to care and improve the spiritual life of
employees such as cafe, gym, game room, and canteen.
- Staff shuttle: bus routes to transport MWG office staff from urban Ho Chi Minh City to the
Headquarters.
- Different company culture: hinge for employees to work, foster and develop personality –
employee spiritual in a positive way.
- Not just work, MWG fills your youth and develops your career. You can completely trust and
convey your youth and career at MWG. Company creates a prosperous material life through
competition, remuneration, fair promotion, and a positive spiritual in accordance with the core
values.
"Everything spent is a fee, but there are 2 non-expenses are expenses for employees and customers" -
Chairman Nguyen Duc Tai.
Figure. MWG Profitability (Blue line: ROE, Red line: ROA). (MWG, 2020)
Figure. MWG widen the gap with other peers in Viet Nam. (MWG, 2020)
With all the efforts of the HR department and all employees, in 2019, MWG won some national and
international awards which are issued by prestigious institutions. (MWG, 2020)
- The only Vietnamese representative in the Top leading 500 Asia – Pacific Retailers.
- The champion in Top 50 best performing companies in Viet Nam in 2019 honored by The Business
Review (Nhip Cau Dau Tu) magazine.
- For the 5th time in a row, to be honored in Viet Nam’s 50 Best Listed Companies in 2019 by Forbes.
- The 2nd largest private enterprises in Viet Nam 2019 (VNR 500) in 2019.
Talent management
"ESOP is the soul, a vital factor, even a secret for the development of MWG", ensured the Chairman of
MWG.
One of the ways the company often uses to retain talent is to issue ESOP shares to the management and
key staff based on the business results of the previous year.
For instance, in 2018, MWG reached 2.880 billion VND of consolidated net profit, the General Meeting
of Shareholders in 2018 approved the plan to issue 3% of ESOP shares. However, this policy also
mentioned that if the share price of Mobile World does not rise higher than the VN-Index by more than
10%, it will be adjusted downward.
In 2018, for the first time, MWG's stock did not rise 10% higher than the VN-Index, so the BOD decided
to reduce the number of shares issued to 2.4%. The issuance is expected to be completed by MWG in
the first quarter of 2020, this ESOP share will be restricted to transfer within 4 years.
Over the past time, many competitors have drawn MWG’s members. However, most of the personnel
reported to Chairman about the incident, not quietly interviewing at other companies, which proved
that the ESOP share issuance policy was effective.
Mr. Tai also shared that MWG keeps talent by paying employees as high as possible. The problem here
is that job performance must go hand in hand with the salary and bonus that employees receive.
Mr. Tai took the example of a director of building a supermarket of Thegioididong.com, who was paid
three times higher than his colleagues in another company. The reason is that the productivity of one
person is 7 times more than the other. Similarly, a Thegioididong.com supermarket previously needed
20 people, with a salary of 7 million VN/month to operate, but if only 7 people could do it, these staff
deserved the least double salary. (Phuong, 2019)
Benefits of those HR practices to the new employee and chosen company
In 2018, MWG issued 10 million ESOP shares to 4.072 employees, which means each employee received
2.584 shares on average.
Participating in ESOP is the pride of MWG's employees, giving employees ownership. Accordingly, the
majority of employees and managers will build and protect the overall success of the business.
Besides, the leaders of MWG said that due to the limited transfer of ESOP within 4 years, it will help
protect the results better. Because in these 4 years, MWG's stock will certainly increase and the
company's employees will recognize it.
ESOP is also the factor that keeps employees in the face of "temptations" from competitors.
If MWG personnel still decide to leave, the receiving company must really have the capacity to be able
to reimburse losses of up to several tens of billions of dong. Obviously, this is a major hurdle for
companies looking to pull out MWG. (Ngoc, 2020)
➢ MWG team has a relatively nice working environment in the current labor market, accompanied
by a financial factor and reasonable remuneration.
In addition, the company's employees will be entitled to health insurance and social insurance in
accordance with the Labor Law. Furthermore, personnel will be prompted to increase their positions if
they finish their jobs excellently. (Hang, 2020)
➢ Hopefully, the company will maintain its performance in the future as it is today.
Conclusion
Human resources department plays a very important role in the operations of each company.
MWG’s HR department has excelled at demonstrating its mission and functionality well.
11/28/2018, MWG was honored to win up to 5 awards at the Vietnam HR Awards 2018 co-organized
by Talentnet and the Labor & Social Newspaper. In which, there are prizes: Attracting talents
effectively, managing work effectively, training and developing human resources effectively, effective
working environment and best business.
In particular, the organizers of Vietnam HR Awards 2018 also said: “MWG possesses resource
management models that are worth learning when being one of the two best enterprises of the two
contest tables.” (Minh, 2018)
Figure. Staff from many departments took souvenir photos at Vietnam HR Awards 2018.
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