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Table of Contents
I. Introduction: Honda background 3

II. Factors affecting HRM 4

1. External factors 4
2. Internal factors 8

III. HRM practices: Honda 11

1. Recruitment and selection documentation 11
2. Recruitment and selection process 13
3. Reward management 14

IV. Reference list 16

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 I. Introduction
The aim of this report is to advance understanding about factors influencing on HRM decision-
making within organizational development, both externally and internally. Besides, strengths and
weaknesses in HRM practices throughout training program would be thrown some light on and
then recommendations and considerations to help corporate continuous improvement might be
presented to help corporate continuous improvement. To epitomize, the selected commissioner
of this study is HONDA Automotive Corporation taking place in Vietnam, one of the most
robust manufacturing corporations in the automobile industry.

(1) Established in 1996, Honda company is a joint venture between Honda Motor Company
Japan (42%), Asian Honda Motor Company Thailand (28%) and Vietnam Engine and
Agricultural Machinery Corporation (30%) with 2 main industries: motorcycles and cars
manufacturing. Honda has had firm foothold in numerous nations all around the world such
as Africa, America, etc and created a large buzz in each country that it has penetrated, one
of which is Vietnam.
Having set foot in Vietnam for more than 20 years, Honda Vietnam is constantly affirming
its reputation and becoming one of the first powerful companies in the field of motorcycle
manufacturing and a reputable car manufacturer in the Vietnamese market.

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 II. Factors affecting HRM decision making
1. External factor
1.1. Economics

There is no doubt that the shape of the economy plays a paramount role in influencing HRM.
Consider Vietnam’s economy as a salient example. Vietnam is a developing country which has
experienced increased economic growth leading to higher disposable income. During complex
period of Covid-19 with deleterious damage in numerous nations, it can be reported that GDP
per capita in 2020 had an upward trend by 2.91% is a great success of Vietnam. During this time,
the poverty rate indicated a sip from around 32 percent in 2011 to approximately 2 percent in
2020. This figure has indicated that whether Vietnam has a strong economy might largely impact
on its human resources. This evidence can be with the healthily growing economy, human capital
can be given attention through education, wellbeing, and so on, thereby boosting productivity.
Therefore, during this period, numerous companies in Vietnam have a greater chance to get
access to the talent pool as well as the ability to offer support for current employees, even
monetary rewards. Besides, one of the most important ways to immediately adapt to changeable
economic conditions is to not only be aware of current situations around the world, but also to
devise a plan for when there is an economic crisis.

1.2. Social

Globalization

At the outset, it can be undeniable that the advent of globalization might spark remarkable
breakthroughs in the growth of businesses in which HRM would be largely affected. This
evidence can be that globalization contributes to the expanding diversity of employees from all
walks of life, which is similar to more competitiveness and challenges. Therefore, it is necessary
to put forward employee-centric policies to attract new talents as well as retain old ones. This
report sets focus on analyzing external factors affecting HRM that Honda should pay attention to
enhancing corporate improvement.

To begin with the recruiting process, when the business has a myriad of choices, Honda should
re-organize recruiting and hiring stages with more strictness, more standards, and requirements,

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thereby meticulously selecting potential staff. Moreover, under the influence of globalization and
diverse cultures, whether Honda ensures fairness throughout the selection process plays a crucial
role.

Subsequently, organization support in several aspects from support from managers to rewarded
amenities for foreign staff takes full advantage to enhance HRM areas as well as Honda’s
growth. To exemplify, the HRM department might take action to provide more guidance and
assistance for new employees during their apprenticeship and probationary period. Support with
visas, work permits, and accommodation should be offered, along with cultural training and
language acquisition. It does wonders for attracting talent as well as motivating potential and
skillful staff.

In addition to that, facing globalization, it might be a manager’s responsibility to widen

knowledge about cultural differences or even undergo new training that Honda can require,
thereby enhancing adaptability with foreign employees, personally developing as well.

Besides, during the era of globalization, to overcome distance in socialization, the HR unit
should indeed set up communication policies or strategies that help for synchronized
coordination without disrupting their remote staff' s time zone. Indeed, the prime example can be
Honda's adjustment to allow remote working without distorting employee benefits or work
effectiveness. Honda is planning to introduce "virtual" and "hybrid" work models that associates
can apply for depending on their roles.

Competition

It can be said that globalization might have both advantages and disadvantages. Globalization is
the cause of fierce competition between businesses, in addition to having a positive impact on
hiring talent. Therefore, during the decision-making process in Honda, the HR department
should direct special attention to employees’ benefit programs such as financial incentives, day-
off, and so on, which enhance their positions as well as job satisfaction. Besides, whether Honda
might organize training programs is conducive to motivating and developing employees in a
more effective way.

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 Volatility of environment

Flexible working links to the practice of requiring flexible working patterns and has the potential
to cover a variety of situations, altering the workplace and how employees are managed.
Flexibility in a professional environment is one of the most prevalent methods applied in HRM
to maximize employees’ motivation, thereby improving organizational growth. To illustrate, to
overcome the volatility of the environment, there are a myriad of useful policies that Honda
should use such as location flexibility, management changes, schedule flexibility, etc. For
instance, in management, Honda might make managers exchange programs among offices to
build innovation and practice employee adaptability in workplace. What perks of flexible
working is allowing for business continuity during emergency circumstances such as a weather
disaster or pandemic. Moreover, these adjustments create a greater condition to boost
productivity as well as a better work-life balance for employees, which directly links to job
satisfaction and employee loyalty, leading to corporate development.

Arguably, transforming conventional work to a flexible one can breed several downfalls.
Foremost, safety and security cannot be ensured. Besides, work output might be partly affected
because flexibility in working might allow people more rest, more day-off which leads to late
submission, reducing high concentration on assignments. Consecutive changes, especially in
management or circumstances, might pressurize employees, so that it might not ensure work
effectiveness as conventional methods do.

Aside from policies about change, Honda should draw up backup plans for unintended and
unforeseen consequences to minimize risks.

Labour market

Vietnam's labor force accounts for 57 percent of the country's population of over 96 million
people, a steadily increasing proportion of trained workers, and competitive costs compared to
neighboring countries. Manufacturing (16% of GDP), services (51%), and agriculture (14%)
employ a sizable portion of the country's labor force. As a result, Honda may benefit from
having a large number of skilled employees in various specializations, particularly in services
and manufacturing. Companies penetrating into the market must consider workforce availability

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and adequate strategies to achieve an appropriate workforce as well as attract and retain top
talent as Vietnam grows into a popular regional manufacturing center. Concerning the aging
population, the working age for the labor force in Vietnam ranges from around 18 to 60 at
maximum. However, following the COVID-19 explosion, the younger generations face negative
consequences such as job losses and reduced income, resulting in business turnover and talent
loss. Consequently, it might be a real struggle for Honda to approach and retain young talents, so
they need to put forward more heartily support and privileges for current workers and even
potential candidates through reasonable benefit programs in job descriptions and assistance
during the recruiting and training process. Besides, there might be a sharp distinction among
generations within an organization, which would require Honda to have separated policies and
reward benefit programs suit for each generation.

he quality of labor is low

Scale of Honda
(Motorcycle): At present,
Honda has more than
10,000
employees, whose Honda's
motorcycle labor force is the
majority.
he quality of labor is low
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Scale of Honda
(Motorcycle): At present,
Honda has more than
10,000
employees, whose Honda's
motorcycle labor force is the
majority.
1.3. Technology

Undoubtedly, technology growth plays an indispensable role in large businesses, even SMEs.
Vietnam is also a developing country in which trends in technology easily penetrate into the
Vietnamese market. The prime example would be the increasing usage of social networks and
technology. Therefore, whether businesses might not apply technology in day-to-day operations
might be a shortcoming that halts organizational development. To keep up with the rapid pace of
global growth, Honda should concentrate on keeping updated with the latest trends in improving
technology and then integrate them into the HRM process. In the present society, there are a
variety of technologies that an organization can utilize to maximize effectiveness in human
resources and assignments. Turning to details, throughout the recruitment process, instead of
conventional methods like leaflets, using the Internet or social media as sources of recruitment to
post application forms or job descriptions might be a far-fetched idea in enterprises, one of which
is Honda. Besides, the following selection step can be done entirely online to considerably cut
time and resources. However, over-depending on technology would be a double-edged sword.
Automation in recruiting or selecting chains, when it might have errors, can lower work and
employee quality, which can be a real struggle to re-organize and alleviate risks. Therefore, it

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can be extremely essential for Honda Corporation to plan crisis management strategies for
unintended situations.

Consider Honda’s technology to dig deeper into. Technology is mainly implemented and
operated in manufacturing process while it might be not commonly use in HR practices. This
evidence can be Honda require candidates to commute to official test place to carry out selection
process instead of doing online, which might take time and resources.

1.4. Regulations and legal

Strikingly, when it comes to legal, the issue involving employment has been given attention in
Vietnam. To prove, there are a myriad of stringent punishment and judgement on employment
laws such as employees’ health and safety, discrimination, etc in Vietnam, which requires Honda
to take not only business objectives but also employees’ privileges into consideration.
Throughout the decision making process, Honda should cautiously throw a spotlight on
consideration of laws to avoid risks and create the best working environment for employees.
Besides, managers and leaders should ensure daily operations are in line with regulations.

Since then, Honda has effectively considerate and pay attention to the issue involving
employment laws and regulations. The proof might be proved through Honda’s employees’
feedback and attained rewards.

2. Internal factors
2.1. Business vision, mission and objectives

Vision and missions are roadmaps that provide a direction for the entire company, identifying
what it is, what it wishes to achieve in the long run, and what it wishes to become in the future.
(Iger,2022) Employees at different hierarchy have to stick to firm’s core mission to implement
their job responsibilities correctly and effectively. Therefore, business mission has a major
impact on the HRM functions as well. To exemplify, when the objectives of Honda is cutting
human resources and only retaining outstanding performers, the HRM department needs to
ameliorate the reviewing and supervising process with more standards, more policies, and stricter
management.

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  Vision: Lead the advancement of mobility and enable people all over the world to live
better lives. "

 Mission: Maintaining a global viewpoint, we are dedicated to supplying products of the

highest quality, yet at a reasonable price for worldwide customer satisfaction. "

First and foremost, the vision and mission of Honda largely missionized a direction for its
employees and HRM department. The recent survey stated that 57% of staff at Honda have been
inspired and motivated by its vision and mission. Whether Honda creates a clear and definite
vision and mission is conducive to guiding employees to the given goal, so that they might
heartily endeavor to improve skills and experience in order to meet the goals. Besides, by virtue
of business vision and mission, the HRM unit is in charge of focusing on human factors by
putting forward employee-centric policies from developing skills to job incentives. The proof is
sharply presented through a series of rewards that Honda attained, such as: "22 nd position in the
list of Top 100 best workplaces in 2020 assessed by Anphabe."

2.2. Employee characteristics

Firstly, undoubtedly, human resource management refers to the practice of shaping the skills,
conduct, and attitudes of employees, while human capital is the greatest asset for corporate
growth. Therefore, to summarize, HRM practices through their influence on employees
contribute to accelerating organization operations. It can be undeniable that the link between
HRM and employee characteristics is strong, but it might not be a one-way connection. This
evidence can be HRM unit helps in building employees’ commitment. Then worker attitudes can
be sharply by work outputs which reflect an appropriate level of HRM practices. Subsequently, it
might affect HRM decision-making if there is any limitation needed to make adjustments to
consolidate performance and corporate development as a whole. Hence, it can be undeniable that
employee work-related attitudes strongly influence HRM decisions within the organizational
development period.

2.3. Organizational structure

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An organizational structure is a system that outlines how certain activities are directed in order
to attain the best work outcome. These activities can include rules, roles, and responsibilities.
(Kenton,2021) Therefore, these factors directly impact on how HRM is designed and enforced.

2.4. Organizational culture

Basically, organizational culture is a series of factors including values, beliefs, codes of conduct,
and practices constituted by individuals within an organization over time. (Wong,2020) As a
result, it can be said that human beings have a direct correlation with organizational culture in
which they directly affect each other. Therefore, corporate culture strongly contributes to
attracting a talent pool due to the fact that it is a reflection of how human resources are managed
and treated. Besides, in the field of human resource management, a positive culture might have a
large impact on recruitment and retention.

2.5. Leadership

At the outset, leadership concerns directing and guiding employees within an organization in
numerous ways. There is a close correlation between leadership when shaping various outcomes.
The prime example can be that an MBO leader has a tendency to put forward objective-based
HRM practices such as reward management based on performance. Furthermore, leadership may
increase the impact of HRM practices on outcomes, or HRM practices may increase the impact
of leadership on outcomes. The CEO's charismatic leadership, for example, would boost the
positive link between advanced HR practices and organizational performance.

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 III. HRM practices in Honda
1. Recruitment and selection documentation
 Recruitment

First and foremost, undeniably, Honda has devised detailed recruitment documentation through a
myriad of online platforms like websites, social media, and so on. It consists of job description,
person specification and recruitment requirements. The proof can be presented as follows:

Figure 1. Honda job advertisement on 123job.vn website

As can be seen, Honda provides full information on job description, person specification and
recruitment requirements.

- Job description: automobile manufacturer

- Personal specification: manufacturing
- Recruitment requirement: age, gender, education, experience, and so on

Social media, especially Facebook can be said to be mostly enjoyed by work seekers because of
wide network of online users as well the effectiveness of AIDA model. To be specific, AIDA

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model is including Attention, Interest, Desire, and Action, is an advertising effect methods that
demonstrate a series of steps that a person undergoes during the process of drawing attention.
(Hanlon,2022)

Figure 2. Honda job advertisement on social media platforms

As can be seen, Honda's HR department has effectively attained Attention factors by virtue of
eye-catching and clear information as well as image. Besides, presenting benefits and publicizing
reasonable salaries gets Honda easier access to Interest of people and then Desire to work. The
effectiveness can be sharply proved through a myriad of feedback and interactions, which leads
to the Action factor. Despite that, Honda needs to

 Selection

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Following that, applicants who meet the required profile standards will be invited to undergoes
two main steps in selection process including test and interview. All members will be required to
pass two written tests: IQ and Foreign Language. Afterwards, qualified candidates mandatorily
engage in interview about the position they have applied for. Interview times might depend on
each specific position and notified to candidates through email and text message. The maximum
time of interview might be 40 minutes.

Strengths:

Concerning recruitment documentation, Honda has make a great preparation for recruiting and
selection from job advertisement with AIDA model to invitation message with full information
about time and place for test and interview.

Weaknesses:

However, several limitations do exist. Generally, Honda has not invested much in developing job
advertisements due to the low reach and frequency on several platforms such as printed
newspapers and online articles. It might wreak havoc on accessing to an amount of talent and
improving reputation because of non-professional feature in recruiting.

2. Recruitment and selection process

Putting initiative at the center, Honda constantly seeks new talent to renew and make remarkable
breakthroughs in standard-based society. Honda always puts forward numerous job opportunities
in different positions to help generations break the limit and. Recruiting through media like
websites, social media, and so on is mostly consumed by Honda Corporation. Moreover, the
selection process can be said to be simple and easily accessible to people from all walks of life.
In detail, the Honda selection process goes through four steps:

Step 1: Application form through emails or direct website contact

Step 2: Subsequently, applicants who have the qualified profile standards will be invited to
take part in a writing round. Turning to details, at the written test, all members will have to
pass 2 tests: IQ and Foreign Language

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 Step 3: Interviews: Candidates who have passed the written test will be invited to interview
for the position they have applied for. Interview time will be decided for each specific
position and notified to candidates via email and text message. The interview usually lasts for
around 20 minutes.

Step 4: After passing the entrance exam (written test and interview) and agreeing to accept
the job, they will become employees of Honda Vietnam. During the first two days of
receiving the job, the company will conduct training on labor rules and occupational safety.
After that, you will return to the professional room to start working as a Honda Vietnam
employee.

Strengths:

It can be seen that Honda often uses simple and popular methods of recruitment, from the
selection process to the way of promulgating recruitment. Despite that, the value of these can be
disputed due to the fact that in 2019, Honda officially rose to the twelve position in the top
working environments in the car industry. This positive movement can help in globalizing
Honda's image to attract not only more talented employees but also potential customers.

Weaknesses:

Because of applying conventional methods, Honda still has not made any advances or upgrades
in the recruiting process. To illustrate, online process such as online interview, online test has not
been a commonplace in Honda, which might be a real struggle for people living far, and even
foreign employee. Moreover, Honda receives numerous complaints about time-consuming
working approach from recruiting process to training programs with unnecessary and useless
stages.

3. Reward management

Human beings are one of the most pivotal elements that Honda always missionizes. A
collaborative and creative working environment with rewarding employee benefit programs
ignites its attraction to talented staff. To exemplify, reward management system might be
assigned with equity to the level of individual performance quality when completing assigned

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tasks. Honda always maintains a competitive salary and bonus policy, such as bonuses on special
days, along with the most transparent and fair career advancement opportunities. In addition to
financial incentives, Honda Automobile also has benefits packages to ensure employees' health,
happiness, and a stable long-term financial future:

(1) limited health care programs

(2) organize annual vacation program

(3) annual leave regime, vacation regime;

(4) Accidents and benefits for employees

Strengths:

Honda has taken good care of employees through a myriad of given rewarding system. It
absolutely does wonders for boost employees’ motivation, job satisfaction, thereby acceleration
sustainable corporate growth.

Weaknesses:

It can be reported that rewarding programs might be less attractive than other competitions’ for
the following reason:

- Time-consuming stages with numerous paperwork

- Unfairness in reviewing process
- Delay in time

Besides, bonuses policies or job increment, especially for over time staff might be inadequate
and unsatisfied, which would wreak havoc on job satisfaction as well as employees’ commitment
leading to absenteeism or poor performance . As well as that, it would jeopardize Honda’s image
as well as attracting the talent pool.

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