Table of Contents INTRODUCTION2 SCENARIO ANALYSIS3 Task 1a3 Task 1b, c9 Task 1d14 Task 2a18 Task 2b20 Task 2c, d25 Task 2e30 CONCLUSION32 REFERENCES33 APPENDIX36 Appendix 1 – Job description for Vice President of Production36 Appendix 2 – Job description for Vice President of Marketing37 Appendix 3 – Person specification for Vice President of Production38 Appendix 4 – Person specification for Vice President of Marketing39 Appendix 5 – A sample job advert40
Appendix 6 – A sample job application form41 Appendix 7 – A sample CV45 Appendix 8 – An introduction of and a sample electronic cognitive test48 INTRODUCTION Working with and leading people is one of the major concepts of a person who wants to be a leader. A good leader must acknowledge what an organization really needs at a specific time. The role of the leader in an organization is very crucial that the leader can lead the entire organization to success or failure.
Herein, there is a case scenario of Kaisha Corporation – a Japan-based company seeks to expand its business in Danang City, Vietnam. However, there are so many problems as the company is still unfamiliar with the the business environment of the country and encounters difficulties in terms of culture, which is obviously indicated in a form of human resource. In this report, important issues of a brand-new company seeking to open its international business will be discussed and also appropriate remedies will be devised.
The possible issues of the company appear to be recruitment and selection system, legal, regulatory and ethical considerations, mix of knowledge, skills and experience required for the management team, dynamics within team, expectations of relationships between the headquarter’s executives and the local ones and empowerment. SCENARIO ANALYSIS Task 1a Identify characteristics required of the persons who will become members of the management team. How will the potential applicants be informed of the job opportunity at Kaisha Corporation?
The members who are going to be appointed in the management team should have some specific characteristics that are in harmony with the organizational culture. The characteristics of these persons can be determined through a job analysis, which is ‘the process of collecting, analysing and setting out information about the content of jobs in order to provide the basis for a job description and data for recruitment, job evaluation and performance management. Job analysis concentrates on what job holders are expected to do. (Armstrong)’.
Because Kaisha Corporation is still a new entrant to the local market in Da Nang and it needs a comprehensive structure and management system to adapt with the initial, new situation. Therefore, a setup of the intended management team should be devised. The setup includes the different positions of the team members as well as their corresponding functional departments. There are also clarifications on why these positions or departments are relevant to Kaisha Corporation in this such new situation: – One CEO, who is in charge of managing the entire joint venture company in Da Nang.
In the scenario of Kaisha Corporation, the CEO can act as an intermediary, is in charge of regularly reporting the performance of the joint venture company to the Boards of Management of the two parties. The basic function of a CEO is devising strategies and formulating policies to ensure that these goals and objectives are met. – One Vice President of Finance: The Vice President of Finance will be in charge of Finance Department. This department is alsways a top priority of any companies or types of business.
Whether non-profit or for-profit organizations, private or public sector ones, they all need a stable financial standing in any situations. This department can help a company finance properly and accurately. Because it assists the company in determining when and what amount of budget is reasonable, for example, to invest in a project, to pay the employees’ salary, to upgrade old-fashioned machineries, equipments or to procure new ones. – One Vice President of Marketing: the importance of marketing in the business practices nowadays is undeniable.
To a manufacturer like Kaisha Corporation, the performance of the marketing department has a significant impact on the capability of generating and promoting profit of the company. For example, the employees in the department are responsible for devising promotional events to enhance revenue or the vice president will be liaison with media to promote the company’s image in Vietnam consumer electronics market. – One Vice President of Production: to a manufacturer like Kaisha Corporation, this department is particularly important.
The Vice President of this department will be responsible for provide necessary knowledge and training related to production planning to the local Vietnamese workers. Specifically, the vice president will be responsible for communicating his understanding with the Vietnamese local workers about theory and practice in the use of technical know-how, of which Kaisha Corporation is the provider. – One Vice President of Human Resources: none of businesses can exist without any people working within.
Human resource is intangible but can be said to be the most important asset to any organizations. The basic function of a vice president of human resources is to attract, motivate and retain the most qualified employees and match them to jobs for which they are best suited. This is a position that requires a lot of knowledge, skill as well as experience to be successful in fulfill the job’s objectives. It is because there are no fixed, standardized principles in dealing with people, so the role of a HR manager in an organization is being greatly emphasized more and more nowadays. One Vice President of Engineering: people working in an Engineering Department usually tend to use the principles and theories of science, engineering, and mathematics to solve technical problems in research and development, manufacturing, sales, construction, inspection, and maintenance. They also build or set up equipment, prepare and conduct experiments, collect data, calculate or record results. The degree of importance of this department can be comparatively lower than the other departments in the organization.
However, its contribution to the effectiveness of the production performance should not be underestimated as it provides a significant assistance to the production planning. It can be said to help the company have a smooth production, so it can coordinate with the Production Department to contribute better product performance for the joint venture company. Above are basic, significant and necessary positions to a new entrant manufacturer like Kaisha Corporation. This setup can be flexibly changed according to specific business situations (e. g. inancial performance), necessity of new positions. Accordingly, addtional positions are possible when necessary. For instance, Kaisha Corporation will provide the technical know-how for the local branch in Vietnam. Assume, that Kaisha Corporation already has a R&D Department in the headquarter (as for a consumer electronics manufacturer like Kaisha, this department must or should be existing). So, the point is whether it is necessary to have another R&D Department in Da Nang. That is possibly where the company is going to hire employees for that department.
It would be risky, necessarily costly as the company still has no idea about the how many local labors are capable enough for such an important department. Besides, the quality of Vietnam’s labor training system has not been really good in recent years. It has resulted in the scarcity of high-quality labors in Vietnam in many recent years. Moreover, since high-quality labors/ talents are scarce, it is easily understandable that they are severely headhunted by big, influential local or long-standing foreign companies. Therefore, there would be negligeable possibility that R&D Department is necessary at this very initial time.
It may be useful but in the future and until the labor training system in Vietnam is comprehensive enough to provide a sufficient number of qualified labors to the labor market. According to the article 11 of Law on Foreign Investment in Vietnam, it is said that “Each party to a joint venture enterprise shall appoint members to the board of management in proportion to its capital contribution to the legal capital of the joint venture enterprise. In the case of a two-party joint venture enterprise, each party shall have at least two members on the board of management”.
This article implies that the ratio of Japanese to Vietnamese executives will depend on the ratio of legally contributed capital of the two parties. The article also states that each party shall have at least two members on the board of management. Therefore, the first thing that the company can be certain about is each party of the joint venture shall have at least two executives in the local management team. The next necessary thing is to determine an ideal ratio of Japanese to Vietnamese executives in the management team. This can be done by conforming to the legal requirements of Vietnam Labor Code.
It is said in Decree No. 34/2008/ND-CP, Article 5, clause 2 that “In the case of a foreigner internally transferring within an enterprise, at least twenty (20) percent of the total number of the managers, executive directors and experts of each enterprise with a commercial presence within the territory of Vietnam must be Vietnamese citizens. ” According to the above intended setup of the management team, there will be six positions to be occupied by both Japanese and Vietnamese executive. Thus, it means that there will be from one to two positions to be mandatorily and legally occupied by Vietnamese candidates.
In evaluation of whether Japanese or Vietnamese should account for the bigger number of the executives in the management, an analysis is conducted below to illuminate this matter: As mentioned above, there may be some questions that whether it is possible if Vietnamese candidates account for a greater number of executives in the management team. The answer is it is possible for them to achieve that thing, the possible barrier can be derived from Japanese culture in general and Japanese organizational culture in particular.
As we know, Japanese labors are well-known for their lifetime commitment and loyalty to the company. Thus, as for a Japanese organization, hiring Japanese is a top priority instead of non-Japanese. Especially, as for designing human resources for the board of management, there was a time that Japanese organizations consistently refused to appoint non-Japanese executives to such important positions. It is said in an old article of “The Age” newspaper, “In the past, Japanese have explained the refusal to put foreigners on their main boards because they do not speak Japanese.
They have also pointed out that non-Japanese would not be able to attend regular board meetings if they were resident in another part of the world. ” Another example is about Nomura Group, one of the major industrial and financial conglomerate groupings of Japan, appointed a non-Japanese executive to the board of management for the first time although it was founded in 1919. Another remarkable instance is about the more well-known Japanese automaker giant, Toyota, which officially appointed a non-Japanese executive to become the member of the board of management on 12 March, 2010.
Moreover, according to a research by Doudou Diene (Special Rapporteur of the UN Commission on Human Rights) in 2005, he expressed concerns about “deep and profound” racism in Japan and insufficient government recognition of the problem[][]. Therefore, it can be implied that only in case Kaisha Corporation cannot internally transfer Japanese executives (for example, due to shortage of internal human resources or that can significantly cause unfavorable arrangement of the internal human resources in the headquarter), recruiting non-Japanese will be considered, then.
If Kaisha allows the management team to have more non-Japanese executives’ involvement in the board of management, recruitment of Vietnamese can be top priority as the company can take advantage of the local Vietnamese human resource, which is much cheaper than the Japanese but still competent enough to fulfil all required, desired functions of vacant positions in the board of management. Assume, that Kaisha Corporation has a greater contribution of capital to the joint venture company than the Vietnamese party does.
Aside from that, Kaisha Corporation is the provider of technical know-how, which is extremely important for the joint venture company to exist and prosper in the local consumer electronics market. So, the ratio of Japanese to Vietnamese executives in the management would be four to two. This is a favorable ratio since it can guarantee and enhance the interest of the Japanese company if it is the bigger contributor of the joint venture company. Assume, the management team of Kaisha Corporation comprises only Japanese and Vietnamese executives. So, there must be two positions that are prioritized to be occupied by Vietnamese candidates.
In order to choose which positions should be occupied by the Vietnamese, first and foremost, it is necessary to identify distinctive characteristics, strengths or advantages of Vietnamese candidates over Japanese ones and whether those characteristics are particularly suitable to the intended vacant positions. In terms of educational level, since the general educational level in Vietnam has improved over the past few years. Vietnamese learners, especially young ones, have more and more opportunities to access the world’s information and knowledge with ease.
A lot of young Vietnamese managers are in charge of important positions in big, both local and international companies. It can be said that they are not much less competent than labors of other countries. Experience about the local market and practices can be the most valuable thing of Vietnamese managers to be appointed to the board of management in Kaisha Corporation. If Kaisha Corporation only accepts the ‘four-to-two’ mentioned-above ratio of Japanese to Vietnamese in the management team, there are two positions that should be occupied by the Vietnamese. These two positions are occupied only through external recruiment. The first position is the Vice President for Marketing Department. It is because local experience and practices are useful for a marketing manager to fulfil his/ her function. In this case, the company needs a candidate who has good understanding about the local market in Da Nang, especially about the consumer electronics market in the city rather than a marketing international theorist/ specialist. The marketing manager is also supposed to deal with local customers and that will be the basis for profit generation as well as customer relationship development. The second position is the Vice President for Human Resource Department. The best person for the Human Department should be a Vietnamese executive because the joint venture company is present within the territory of Vietnam and a majority of employees in the joint venture company will possibly be Vietnamese. Therefore, understanding of Vietnamese culture and people is a big advantage of a Vietnamese manager. The manager can act as a good motivator. The HR manager will probably spend a majority of his/ her time dealing with the workers, who are mostly Vietnamese.
He is supposed to communicate with the Vietnamese employees most of the time. If the HR manager is a Japanese, it considerably will not be highly effective because there would be a need for a translator. As discussed above, the rest of vacant positions should be occupied by the Japanese executives. The CEO position should be prioritized to be occupied by an internally transferred executive of Kaisha Corporation. Because that person could have a long-time experience working with the Board of Management in the headquarter of the Japanese company.
Therefore, that person would be reliable and effective clarifying visions and goals of the joint venture company and communicating them with the subordinate managers and employees. As for the Vice President of Production and the Vice President of Engineering, Japanese executives are an ideal option. The reason is that Kaisha Corporation is the provider of technical know-how for the joint venture company. Therefore, knowledge and understanding of Japanese executives about these technical stuff are considerably more relevant than those of Vietnamese ones. For example, one of the main duties of the ntended Japanese Vice President of Production as mentioned in the job description is to train local Vietnamese workers in the use of machinery and process control document or to plan and implement production methods and standard work instructions for the local Vietnamese workers. If a Vietnamese executive is put in charge of these work, initially it will possibly be take a significant amount of time for him/ her to catch those production requirements. Besides, as we know, production methods and standard work instructions of Japanese companies are usually well-organized and highly scientific.
So, above all, Japanese are appropriate to the Vice President of Production and that of Engineering. As for the Vice President of Finance, it does not matter whether Japanese or Vietnamese executives should be appointed to that position. Although financial mechanism can vary from country to country, from organization to organization, principles of financing are basically standardized. Thus, there is no guarantee that Vietnamese executives can do financing better than Japanese do or otherwise. However, as discussed above, Vietnamese party already have two executives in the management team of the joint venture company.
In other words, it has reached the allowable number of executives if Kaisha Corporation is affirmed to have a bigger contribution of capital to the joint venture company as stipulated in article 11 of Vietnam Law on Foreign Investment. Therefore, unless Kaisha Corporation allows a Vietnamese executive to be appointed to that position, the Vice President of Finance, in theory, will be a Japanese executive. In summary, a supposed organizational structure for the joint venture company is provided below including the job title and the corresponding nationality of the intended job holders: [pic]
Figure 1. The supposed board of management of the joint venture company In order to appoint the right applicants, a job description and person specification are needed to do so. In this case, the organization is intending to hire one Vietnamese and one Japanese manager. So there will be two job descriptions and two person specifications for both of them. Job description is developed from the job analysis, a job description sets out the purpose of a job, where it fits in the organization structure, the context within which the job holders functions and the principal ccountability of job holders and the main tasks they have to carry out. A job description for the Vice President of Production Department is provided and can be seen at the Appendix 1 on page 36. A job description for the Vice President of Marketing is also provided and can be seen at the Appendix 2 on page 37. ‘Person specification, also known as a job or personnel specification, sets out the education, qualifications, training, experience personal attributes and competences a job holder requires to perform her or his job satisfactorily. (Armstrong)’
A person specification for the Vice President of Production can be seen at the Appendix 3 on page 38. A person specification for the Vice President of Marketing can be seen at the Appendix 4 on page 39. There are various ways of informing potential applicants of the job opportunity at Kaisha Corporation. There are possibly two types of advertising media that can be used by the company. They are non-electric and electric advertising media. Non-electric advertising media can comprise newspaper, job advert and electric can be television, Internet (company’s official website), internal network (Intranet) and so on.
About non-electric advertising media, advertising in newspapers seems to be the most cost-effective way of informing potential external applicants. Newspapers are one of the traditional mediums used by businesses, both big and small alike, to advertise their businesses. One of the most important advantages of advertising in newspapers is that the company can reach a huge number of people in a given geographic area. In Da Nang, there are some popular newspapers that have the biggest viewers rating and view frequency in the city. They are “Cong An Da Nang” (website: http://www. cadn. com. vn), “Thanh Nien” (website: ttp://www. thanhnien. com. vn), “Nguoi Lao Dong” (“The Labour”, website: http://www. nld. com. vn). These newspapers have from one to three pages for “Advertising” section, the company has to write a job advert, register to the newspaper office (including advertising fee) to allow the job advert to be posted in the newspaper. A sample job advert for the job title of Vice President of Marketing in Kaisha Corporation can be seen at the Appendix 5 on page 40. Besides, there are many ideal places that the company can post the job advert including on the bulletin board of universities, job centers or job fair (career expo).
These are perfect places that definitely attract a huge pool of job seekers. As for electric advertising media, there is a tendency that nowadays employers prefer to use electric advertising media since it can save a lot of cost and time for companies. Specifically, in Vietnam, there is a rapid development of IT industry in the country. The number of local people knowing how to use computers and using them effectively and professionally have been rising very fast. Therefore, electronic advertising media is indeed effective in Vietnam.
However, only a few kinds of these advertising media that are considerably effective for Kaisha Corporation. For example, advertising on television can attract a large number of viewers but the company may encounter a tough competition with other adverts of other companies. Besides, viewers have their own concerns about the television channels they are watching and are usually not interested in or pay little attention to the adverts on television. As for recruiting internal applicants, Intranet can be used as an effective tool of gathering internal applicants fast and conviniently.
In terms of cost saving, there are many evidences that can convince any employers to use this kind of network. Users can view information and data via web-browser rather than maintaining physical documents such as procedure manuals, internal phone list and requisition forms. This can potentially save the business money on printing, duplicating documents, and the environment as well as document maintenance overhead. “PeopleSoft, a large software company, has derived significant cost savings by shifting HR processes to the intranet”. Gerry McGovern goes on to say the manual cost of nrolling in benefits was found to be USD109. 48 per enrollment. “Shifting this process to the intranet reduced the cost per enrollment to $21. 79; a saving of 80 percent”. With those word indescribable benefits, it is recommended that Intranet is prioritized to be used in recruitment of internal applicants. Another electric advertising media is through Internet. If possible, an official website of Kaisha Corporation should be created for not only recruitment purpose but also for potential applicants to find out information about the company.
On the website, there should be a “Recruitment information” section that posts an online application form for applicants to fill in. The application forms will be sent to and stored in the company’s database, the employers only have to check these application forms whether they are valid or not. If they are valid, the applicants will receive a call from the employers informing them about the date and time of the interview, for example. In this case, both employers and job-seekers are mutally beneficially. As for job-seekers, they do not need to directly go to the company’s office to fill the application form manually.
As for employers, they save a lot of time in checking applications forms. Everything is computerized for online application form, the employers even may not need to check the application forms sent to the database by themselves because in some computer database system, an application form can be automatically compared to a standardized one to check for validity. Besides, employers save a lot of money on, for example, printing, duplicating paper application forms as well as relatively the maintenance overhead. Task 1b, c
Suggest suitable methods for selection and selection process that Kaisha Corporation is likely to use in order to appoint the right quality employees. In appointing the right quality employees, a comprehensive, adequate selection process is truly necessary for Kaisha Corporation. Since the recruitment and selection team of Kaisha Corporation in Vietnam is still simple and the company has just launched its business in Vietnam. So, the company may not need a complicated selection process but that selection process should fulfill all the functions of a basic one. Following is the diagram of a typical selection process: pic] Figure 1. A typical selection process The above typical selection process follows a ‘bottom-up’ dimension. The principle of this process is that upper steps will be associated with relatively smaller area of the corresponding rectangles. In simple words, the more we go up, the smaller the area of the rectangle which represents the corresponding step will become. It is implied that after each step the number of candidates will become lesser as inappropriate, incompetent candidates will be rejected.
Only more appropriate, competent ones will be kept. As for the scenario of Kaisha Corporation in Vietnam, it appears that it is unnecessary, time-consuming and costly if the company implements the same selection process like the typical above one. Assume, the company will gather a wide pool of applicants thanks to their reputation and promising working conditions offered, for example. The question is that whether they will be able to successfully find appropriate candidates within the preset boundary of time (say, not so long) after going through all of the steps of the above selection process.
To save time and human resources, the management team should be successfully formed as soon as possible. Accordingly, some irrelevant steps if the above selection process can be removed. Besides, as discussed above, the company is going to recruit internal and external applicants. Therefore, it would be better if the intended selection process is categorized into two separate selection processes, selection process of internal applicants and selection process of external applicants. In other words, each kind of recruitment will be associated with a relative/ corresponding selection process.
The typical above selection process comprises three kinds of interview, so it would be better if there is only one interview and that is team interview since the company does not have much time and human resources to accommodate all three interviews. The team interview, ideally, will be before the medical exam and after the background investigation step. As for the selection process of internal applicants, employment test seems to be unnecessary as the company is seeking managerial positions and that kind of test almost does not evaluate the applicants’ capability objectively.
Medical exam is also necessary although medial profiles of the internal applicants are still kept in the company’s database. Because according to Vietnam Labor Law and Decree No. 8/2000/ND-CP on the proposal of the Minister of Labour, War Invalids and Social Affairs [‘Misniter of Labour’], foreign employees working in Vietnam must prepare a set of the application file, which comprises health certificate issued overseas or health certificate issued in Vietnam. The health certificate is valid only within six months from the date of issuance.
Therefore, if the health certificate of the applicant has expired, he/ she has to take a medical exam to be reissued the health certificate in order to work in Vietnam. In summary, the following diagram is provided below comprising selection process of both internal and external applicants. [pic] Figure 2. Two suggested selection processes of internal and external applicants 1. Completion of application form As for the selection process of internal applicants, Intranet can be used as an fast, effective tool of announcing and helping the internal applicants complete the application as soon as possible.
All of the employees in Kaisha Corporation are provided private emails. When there is a need of recruitment of internal applicants, a mail, which is attached with an electronic application form, will be sent to every private email of the employees through Intranet. The mail is supposed to announce the employees about the company’s need of internally transferring executives to work overseas in Vietnam under a joint venture agreement. The email supposedly asks the employees to optionally fill in the electronic application form if any of them want to work overseas in the joint venture company.
Filled electronic application forms will be automatically transferred to a computer database of the company to check for validity. Hence, there would be no need for issuance of non-electronic application form. That is how Intranet is useful and economic in an organization. As for the selection process of external applicants, electronic application form can still be used via the company’s official website. A sample of a non-electronic application form can be seen at the Appendix 6 on page 41.
Besides, a Curriculum Vitae is necessary as it is one of the items that must be attached in a set of an application file as stipulated in Decree No. 34/2008/ND-CP on Employment and Administration of Foreigners working in Vietnam, Article 4, clause 2 of Vietnam Labor Code. “A curriculum vitae is a written description of your work experience, educational background, and skills. Also called a CV, or simply a vitae, it is more detailed than a resume and is commonly used by those looking for work outside the U. S. and Australia. A curriculum vitae is also used by someone looking for an academic job, i. . in a college or university. ” A sample CV can be seen at the Appendix 7 on page 45. 2. Employment test “Employers often use tests and other selection procedures to screen applicants for hire. The types of tests and selection procedures utilized include cognitive tests, personality tests, medical examinations, credit checks, and background checks. Companies can legally use these tests, as long as they don’t use to them to discriminate based on race, color, sex, national origin, religion, disability, or age (40 or older).
Employment tests must be validated for the jobs they are being used to hire for and for the purposes for which they are being used. ” In the case of Kaisha Corporation, there are two kinds of employment tests that are considerably relevant to the joint venture company. Firstly, it is cognitive tests. “Cognitive tests measure a candidate’s reasoning, memory, perceptual speed and accuracy, and skills in arithmetic and reading comprehension, as well as knowledge of a particular function or job. ” For that purpose, cognitive tests are mostly suitable to evaluation of applicants who desire accuracy and perfection.
Take, for example, the function of the Vice President of Engineering. His/ her fuction, as discussed above, is “using the principles and theories of science, engineering, and mathematics to solve technical problems”. An introduction of and a sample electronic cognitive test can be seen at the Appendix 8 on page 48. Secondly, it is physical ability tests. “Physical ability tests measure the physical ability of an applicant to perform a particular task or the strength of specific muscle groups, as well as strength and stamina in general.  For that purpose, physical ability tests are mostly applicable for those who work in a harsh work environment most of the time such as the workers, or likely the production manager. Take, for example, the function of the Vice President of Production in the joint venture company. He/ she spends a specific amount of time on supervising production line in production area. Moreover, production manager tends to “work extended hours, especially when production deadlines must be met. In 2008, about a third of all workers worked more than 50 hours a week, on average.
In facilities that operate around the clock, managers often work late shifts and may be called at any hour to deal with emergencies. This could mean going to the plant to resolve the problem, regardless of the hour, and staying until the situation is under control. Dealing with production workers as well as superiors when working under the pressure of production deadlines or emergency situations can be stressful. Corporate restructuring has eliminated levels of management and support staff, thus shifting more responsibilities to production managers and compounding the stress.  3. Background investigation A background check or background investigation is the process of looking up and compiling criminal records, commercial records and financial records (in certain instances such as employment screening) of an individual. Background checks are often requested by employers on job candidates, especially on candidates seeking a position that requires high security or a position of trust, such as in a school, hospital, financial institution, airport, and government.
Results of a background check typically include past employment verification, credit score, and criminal history. These checks are often used by employers as a means of objectively evaluating a job candidate’s qualifications, character, fitness, and to identify potential hiring risks for safety and security reasons. In the scenario of Kaisha Corporation, background investigation is relevant as it can result in whether an applicant is allowed to work in Vietnam or not. Because it is stipulated in Decree No. 4/2008/ND-CP on Employment and Administration of Foreigners working in Vietnam, Article 3, clause 4 that an applicant “must not have a criminal record for a national security offence; and must currently be subject to criminal prosecution or any criminal sentence in accordance with the law of Vietnam and foreign laws. ” This clause has a significant impact on the background investigation step of Kaisha Corporation. The clause also implies that an applicant will not have any chance to work in Vietnam at all regardless of how perfect his/ her educational background is if he/ she does not have a clean criminal record. . Team interview As for the team interview of the selection process of internal applicants, the most important point can be about how to figure out the degree of knowledge and understanding of the applicants about the country, to which they are going to be transferred. The interviewers can give questions to find out how well the interviewees know or are informed of the joint venture company. The interviewees can be asked if they can picture out the situation, the possible problems and their initial plans for the first difficult period of establishment of the joint venture company.
The interviers can give questions, of which the implicative purpose are to warn the applicants about the difficulties they may encounter in terms of both profession and personal and to reject inappropriate candidates. As for the team interview of the selection process of external applicants, the interview can be facilitated in the same way as normal job interview. 5. Medical exam There would be some misunderstanding between physical ability tests and medical exam. Physical ability tests simply test whether an applicant’s physical ability is suitable to a particular job.
The test is used to evaluate how fit an applicant is to the job he/ she is applying for. On the other hand, the purpose of a medical exam is to investigate the current health status of an applicant thoroughly and comprehensively. In the case of Kaisha Corporation, if an applicant pass the medical exam, it also means he will be issued a health certificate by the company. This health certificate is required to be a part of the application file stipulated in the Decree No. 34/2008/ND-CP on Employment and Administration of Foreigners working in Vietnam, article 4, clause 2, sub-clause (d). 6.
Hiring decision After the second last step – the medical exam, the remaining candidates, of which the number are intended to be six as discussed above will be ‘potentially’ or ‘inofficially’ hired. These candidates will officially be hired once they agree with all of the terms of the labor contracts and then willingly sign on the contracts in a negotiation appointment decided by the employer. If any of these six best candidates do(es) not accept with any terms in the labor contract and decide(s) to quit, that person(s) will be rejected from officially being the member of the management team.
Instead, the employer can consider a ‘backup’ list of second best candidates to fill the gap. These candidates, of course, should be ranked in accordance to their competences as well as job fit or attitutional fit, for example. The number of ‘backup’ candidates to be considered will be dependent on that of previously rejected one(s) from the list of best candidates. These ‘backup’ candidates can be chosen according to their rankings in the ‘backup’ list. The candidates who gain the highest rankings will certainly be given a top priority in the employer’s hiring decision. Task 1d
Explain and apply the influence that the legal, regulatory and ethical considerations have to the selection process in Kaisha Corporation. There are some important legal requirements that Kaisha Corporation, as a foreign company, should take into considerations. They are also relevant to the selection process in Kaisha Corporation. These such legal requirements are stated in the Decree No. 34/2008/ND-CP on Employment and Administration of Foreigners working in Vietnam. For example, in Article 3 of this Decree, there are some conditions that foreigners must satisfy in order to work in Vietnam: 1.
Must be eighteen (18) years of age or older. 2. Must be in good health as necessary to satisfy the job requirements. 3. Must be a manager, executive director or an expert as stipulated in clauses 2 and 3 of article 2 of this Decree. 4. Must not have a criminal record for a national security offence; and must not current be object to criminal prosecution or any criminal sentence in accordance with the law of Vietnam and foreign laws. 5. Must have a work permit issued by the authorized State body of Vietnam, except in the cases stipulated in article 9. 1 of this Decree where a work permit is not required.
This article can help the company provide clear details for the job descriptions and/ or person specifications as it states clearly what should be needed for an employee’s personal background. For example, the company should make sure that the appointed or recruited employees must not be object to criminal prosecution or any criminal sentence. If not, it may have a significant damage on the company’s image and reputation. Besides, it is also stipulated the order and procedures for employing foreigners to work in Vietnam in clause 4 of article 4 of the Decree: ) At least thirty (30) days prior to recruiting employees, the employer must publish its need to recruit employees in a central or local newspaper (in written, oral, pictorial or electronic form) notifying the following matters: the number of employees to be recruited, the work, the specialist qualifications, the salary level, the working conditions and other necessary items which the employer requires. It shall not be necessary to publish the above-mentioned notice in a central or local newspaper if the employer recruits employees via a recruitment agency.
This clause is relevant to Kaisha Corporation as it states clearly that the company can recruit employees via a recruitment agency. So, it would be easier and cost effective if Kaisha chooses to externally hire Vietnamese candidates for the chosen positions. As the company is still unfamiliar with the Vietnam’s labour market and the recruitment and selection system of its subsidiary branch in Vietnam is still simple, recruiting employees via a recruitment agency seems to be a simple, effective and low-risky solution. ) Employers must provide complete information about the provisions of the law of Vietnam relation to rights and obligations of foreigners entering Vietnam to work; and foreigners must fully research such provisions of the law of Vietnam as supplied by the employer, and at the same time they must prepare the necessary documents and correctly comply with the provisions of this Decree. c) A foreigner wishing to work in Vietnam must submit to the employer the application file for registration for recruitment stipulated in clause 2 of this article.
An employer shall receive such file if it contains all the documents required by this Decree, and the employer shall then conduct procedures in accordance with this Decree to apply for issuance of a work permit for the foreigner to work in Vietnam. d) After issuance of a work permit, the foreigner and the employer must sign a written labour contract in accordance with the labour law of Vietnam, and the employer shall be responsible to forward a copy of the signed labour contract to the body which issued the work permit for such employee.
The contents of the labour contract must not be inconsistent with the contents of the issued work permit. Another important legal consideration is about foreigners entering Vietnam to work in the form of internal transfer within an enterprise as stipulated in Article 5 of the Decree: 1. Any foreigner working in Vietnam pursuant to article 1. 1(b) of this Decree must have a letter from the foreign enterprise appointing him or her to come to Vietnam to work at the commercial presence of such foreign enterprise in the territory of Vietnam, and must satisfy the conditions stipulated in article 3 of this Decree. . In the case of a foreigner internally transferring within an enterprise, at least twenty (20) percent of the total number of the managers, executive directors and experts of each enterprise with a commercial presence within the territory of Vietnam must be Vietnamese citizens. However, each foreign enterprise shall be permitted to have a minimum 1 of three managers, executive directors and experts who are not Vietnamese. 3.
The representative of a foreign enterprise which has established a commercial presence within the territory of Vietnam in accordance with the law of Vietnam shall be responsible to provide complete information about the provisions of the law of Vietnam relating to the rights and obligations of foreigners working within the territory of Vietnam, and foreigners must research and fully comply with the provisions of the law of Vietnam as supplied by the employer. 4. Foreigners must prepare all the documents stipulated in sub-clauses (b), (c), (d), (dd) and (e) of article 4. of this Decree. Article 4. 2 states that: An application file to register the proposed recruitment of a foreigner: the foreigner shall lodge two sets of an application file with the employer, the employer shall administer one set and the other set shall be retained by the employer to conduct procedures for registration for issuance of a work permit. Each set of the application file shall comprise: a) Registration slip regarding the proposed recruitment of the foreigner on the standard form prescribed by the Ministry of Labour. ) Legal record issued by the authourized body of the country where the foreinger resided prior to coming to Vietnam. If the foreigner has currently resided in Vietnam for six (6) months or more, then there need only be a legal record issued by the Vietnamese Department of Justice of the locality where the foreigner is residing. c) Curriculum vita of the foreigner on the standard form prescribed by the Ministry of Labour. d) Health certificate issued overseas or health issued in Vietnam in accordance with the regulations of the Ministry of Health. d) Copies of certificates of specialist or highly technical qualifications of the foreigner. A foreigner who is an artisan in a traditional occupation or trade or who has experience in an occupation or trade or in operating production or in managerial work and who does not possess certificates or diplomas must have a document from the authorized body of the country of his or her nationality certifying that he or she has at least five years’ experience in an occupation or trade, in operating production or in managerial work. ) Three colour photos (3cm by 4cm in size, bareheaded, frontal view, showing the face and ears clearly, without glasses, and on a white background) taken within the last six (6) months from the date on which the foreigner lodges the application file. 5. The representative of a foreign enterprise which has established a commercial presence within the territory of Vietnam shall conduct procedures requesting issuance of a work permit for a foreigner to work in Vietnam pursuant to this Decree, prior to such foreigner coming to Vietnam to work. Article 4. and article 5 point out clearly what is needed for employees who are transfered within a foreign company to work in Vietnam. This is relevant to Kaisha Corporation in terms that it has to be responsible for providing these information to the selected executives. These information will become the basis for necessary documents and papers in order to receive a work permit, which is extremely important to a foreign labour coming to work in Vietnam. As an international company going to expand the business in Vietnam, there are some ethical considerations that should be noticed by Kaisha Corporation.
Some of the issues can be about unethical headhunting, misleading advertisement and nepotism when it comes to selection process. Unethical headhunting can refer to the issue when the headhunters of big, influential companies attempt to recruit universities talents unfairly. They may race against each other to offer attractive contracts to these talents to work for their companies only. It leads to the issue that only big, influential companies can attract talents to work for them, while smaller, less influential companies are disadvantageous due to unethical headhunting.
Another matter is about misleading advertisement. In order to attract job seekers, some companies are willing to provide misleading information in their advertisements. Such information can be about the company and the vacant positions. Some misleading information can be, for example, about the salary, working conditions, working hours, promotional opportunities etc. Job seekers are the ones who will bear the consequence once the actual paid salary is lower than the salary offered in the advertisements. In this case, the job seekers are passive in the sense that they cannot picture out what eal working conditions they will be in until they have already signed the contract and worked for a specific time. When they realize the difference in the actual working conditions with the expected ones, it may be difficult for them to quit the job as they might be bounded by the contract term, for example, they may be forced to work until the contract is expired. The third issue can be about nepotism that can have a specific affect to the selection process. Nepotism seems to be more acceptable in Japan than in Vietnam.
Japanese employees are very loyal to the company and there is a fact that a Japanese company’s operation can be currently inspired by the ideology of the founder(s). In other words, the vision, mission devised by the founder(s) of a company can still be pursued in the present as well as in the future. Nepotism can be accepted in Japan partly because of this culture. The advantage of nepotism is that the executives who are chosen as they are the relatives of the family tend to be more loyal and responsible to the company than the others. The disadvantage of it is that it is criticized by job seekers in other countries including Vietnam.
Therefore, the company should make sure that they appoint the candidates (especially the Japanese ones) according to their competences, not their personal relationships. Task 2a Identify mix of knowledge, skills and experience necessary for the management team to fulfill its functions. In order to meet the company’s objectives and visions, the management team of the subsidiary branch should possess a mix of knowledge, skills and experience. These things are not contributed by a single one but all the management team as a whole. It is because each individual has own’s strengths and weaknesses and specilizes in some particular tasks.
Each management team member has to be an expert at his/ her own field. For instance, the Marketing Vice President, who is intendedly a Vietnamese person, is supposed to have outstanding knowledge about marketing while a CEO should possess a good leadership, communication skill and so on. Other vice presidents such as Finance, Production, Human Resources and Engineering ones are supposed to have relevant skills, knowledge and experience as mentioned in the job requirements. Knowledge can be said to be the most valuable asset of human being. Socrates (469 BC – 399 BC) once said “The only good is knowledge and the only evil is ignorance. As time passes, humans always highly consider knowledge as the most reliable fellow to the development of the entire human race. To know whether the management team is capable enough to fulfil its objectives or not, the first thing that should be judged is the knowledge of each team member. It is certain that each individual possess different aspects of knowledge and different degrees of absorbing knowledge. However, there are knowledge that should be shared within the management team in common and individually. The ‘collective’ knowledge can be the knowledge about the company’s major product, which is consumer electronics.
Particular knowledge about this type of product will be useful for the management to acquire the technical know-how provided by Kaisha Corporation. Besides, the management team should have a particular knowledge or understanding about the Vietnamese market in general and the Vietnamese consumer electronics in particular. These knowledge or understanding can become a basis for decision making or further development plan in the country. For example, the management team can discuss with the headquarter in Japan about the potentials and opportunities for investment in the Vietnamese consumer electronics market.
These knowledge can be acquired through books, newspapers, means of communication & media or through experience of learning and living in the country for a specific time. On the other hand, each member in the management team should also acquire knowledge, at which he/ she is expert. “Wearing the same shirts doesn’t make a team” (Buchholz and Roth). Indeed, a good team should not have totally alike individuals. Individuals share everything in common do not form a good team. Sameness can limit and reduce the team’s creativity and its willingness to change.
The management team of Kaisha in Vietnam includes six members. Each individual of these six members should specialize in or, in other terms, be an expert at his/ her own field. For example, the marketing vice-president is required to have basic learning and understanding about theory and implementation of marketing in a particular market or the production vice-president is supposed to oversee the production process, draw up a production schedule, work out the human and material resources needed and so on.
As for the CEO, he/ she needs a combination of different knowledge, such as knowledge about organizational structure and culture, theory of employee or subordinate motivation and delegation and all knowledge about business and economics that would be necessary for decision making. There are also skills that should be mastered by the management team. These skills are recommended for not only some particular businesses or companies but also a majority of businesses or companies nowadays. In the article “What do employers really want? Top skills and values employers seek from job-seekers” by Randall S.
Hansen and Katharine Hansen, there are some relevant, common skills that are required or desired by employers nowadays. The first important skill can be communication. According to the article, by far, it is the one skill mentioned most often by employers. If the management team members know how to use this skill effectively, it would be greatly beneficial to the business of the company. Through effective communication, the management team members gain trust and more willing to coordinate with each other. As for Kaisha Corporation, effective communication may help a lot in terms of decision making.
It is because when the company officially sets up business in Da Nang, or they are really doing business in the city, the Danang-based executives will frequently communicate with the company’s headquarter in Japan for possible solutions for specific issues as well as development plans or the company’s current operation/financial situation in Da Nang etc. Another important skill for the management team to fulfil its objectives is team working. One said “A championship team is a team of champions. ” A good team does not need a single individual, but a group of individuals.
It needs good, capable individuals to be easily successful but it also requires a good team spirit. According to a study by Shinichi Ichimura, Japanese labors can be confident that they are good at team working as they have been pursuing groupism, which is considered to be one of the success factors of Japanese management for years. But does it mean they will be successful if they impose the same ‘ideology’ on the Vietnamese Management system? Maybe they will but it might take a long time since Vietnamese labors in general still lack of or do not get used to team working.
This fact is considerably unfavorable to the management team as it may lead to the issue that the management team is divided by two ‘opponent’ sides, Japanese and Vietnamese. It is because the team may not be harmonious in terms of team working. Therefore, it is necessary for the team to master leadership skill. Leadership is stated as the “process of social influence in which one person can enlist the aid and support of others in the accomplishment of a common task. ”. As for the management team, this is a very important skill since all of the members of the team are at high-management level.
It means they are responsible for making important decisions and delivering tasks to the subordinates. The CEO is the most important position in the organization as he/ she will be responsible for not only the management team but also the entire organization. Decisions, guidelines of the CEO can design the major part of the company’s success. Certainly, the CEO cannot make precise decisions for all times, he/ she needs the corporate department managers, who specialize in some particular aspects and are responsible for helping and supporting the CEO to fulfil his/ her mission as well as the company’s visions and objectives.
Department managers/ vice-presidents also should learn to master leadership skill as they are not only led by the CEO but also lead the subordinates, lower-level management in their departments to accomplish the missions and objectives of the department. It is also a way of contributing to the success of the entire organization. Aside from the above-mentioned mix of knowledge and skills, the management team should also share some relevant experiences in common. As also mentioned in the job descriptions, each management position must have at least 5 years experience in his/ her job before applying to Kaisha Corporation.
Moreover, they should have the experience of working in an international organization. People who are internationally experienced usually know when conflicts may arise and how to handle them. In the case of Kaisha Corporation, the management team is a mixture of Japanese and Vietnamese executives, conflicts appear to be unavoidable. However, if the management team has some members who are experienced in working in an international environment, they will possibly deal with conflicts professionally.
In an international organization, valuable experience can be some specific understanding about the countries of the team members, especially the culture. People who are highly experienced in an international environment usually consider ‘culture conflicts’ or ‘culture shock’ as common, normal issues when they work abroad. Another experience that should be shared within the management team of Kaisha Corporation is the experience in consumer electronics industry. Experience in this area should be considered a top priority of the recruitment and selection requirements of the company.
Only those who are highly experienced in this area can fit the company better than they are just experienced in other industries. Moreover, if the management team tends to be highly experienced in consumer electronics industry, the team will probably have more chance to successfully fulfill the company’s objectives in Vietnam, which are to provide technical know-how to the local executives. If the team members are experienced in the consumer electronics industry, the technical know-how and instructions are likely to be easily and effectively absorbed by the members.
Therefore, the chance for success in the company’s business in Vietnam would be higher. Task 2b Analyze dynamics within teams, and provide suggestions on how to stimulate and promote team spirit to motivate team members in Kaisha Corporation. In implementation of the joint venture agreement, the management team will be formed with the mixture of both Japanese and Vietnamese executives. So, there are similarities and differences between Japanese and Vietnamese in terms of dynamics within teams. These dynamics within may comprise ecision-making, work-life balance, cooperative spirit, attitude toward authority and socialization outside of work. In terms of decision-making, there is a remarkable difference between Japanese and Vietnamese management system. The Japanese management tend to be group-oriented when it comes to decision-making. This is decribed by the term “Ringi” system in Japanese. “Ringi-sei, or bottom-up decision-making, is vital to the whole decision process in Japan, it allows the proposal to get commented on before the meeting so that people can have the opportunity to think about the proposal and to tack on ideas. . Therefore, the effectiveness of decision-making in Japanese management system can be high as the management can gather many, good ideas from the contribution of all of the employees in the organization. As for the decision-making aspect of Vietnamese management system, it seems to be less effective than that of the Japanese. According to a research conducted by Truong Quang and Nguyen Tai Vuong, it is obviously due to the control mechanisms of the Vietnamese management system. Accordingly, Vietnamese managers exercise control through close supervision.
Of the managers who responded to the questions, an overwhelming 75% said managers should not trust their subordinates. This can be the reason of the not-always-high employee morale and low productivity of Vietnamese Management System before Renovation Policy. This difference may have a negative effect on the effectiveness of decisions of the management team as a whole. Because the Japanese management requires or desires a “bottom-up” communication pattern make more effective decisions while the Vietnamese management is used to “top-down” communication pattern and it likely cannot be changed overnight.
Therefore, the Vietnamese autocratic leadership style may conflict with the Japanese democratic one. Either the Japanese or Vietnamese management does not desire the leadership style of the another, it may lead to the issue that the management team will be divided into two sides as they lose trust in each other. In terms of work-life balance, there is a significant difference between the Japanese and the Vietnamese labors in general. Although Japan and Vietnam are Asian countries, the points of view of people of the two countries differ from each other.
According to a research about Japanese Management in Southeast Aside by Shinichi Ichimura, one of the remarkable characteristics of Japanese labors is lifetime commitment or employment. It means the Japanese employees commit themselves to their company for the rest of their working lives, so that stable employment is taken for granted and job rotation or on-the-job training becomes routine. Japanese employees devote their life to the company much rather than to their personal lives. It can lead to high productivity and products capacity but it also has side-effect.
In Japan, it causes “Karoshi”, which can be translated literally from Japanese as “death to overwork” – occupational sudden death. Although this category has a significant count, Japan is one of the few countries that reports it in the statistics as a separate category. The major medical causes of karoshi deaths are heart attack and stroke due to stress. A recent measurement found that a Japanese worker has approximately two hours overtime a day on average. It is certain that the more time Japanese workers devote their time to the company, the less time they will spend on their personal lives, their family.
Although Japan is in Asia – a place where the culture lays a great emphasis on family togetherness, it is assumed that family tends to be considered as a burden to an individual’s career. This issue might arise since Japan became a developed country, or perhaps even earlier. Perhaps because Vietnam has not become a developed country like Japan yet, Vietnamese workers can be said to have a quite balanced work-life. It may be partly because they receive a good protection from the Vietnam Labor Law and effective support from the State of Labor Union in Vietnam.
One of the main factors that make Vietnamese workers have a quite balanced work-life is that most of them spend a great amount of time on their family and friends. It seems that if there is any difference in terms of any aspects between the Japanese and Vietnamese management, there will some complications or conflicts found within the entire management team. Difference in work-life balance is not an exception of that. The first problem is that it will be difficult for the promulgation of working policies, rules, principles or procedures that can be fairly agreed by all of the members of the management eam. Especially, these working policies, rules, principles or procedures are possibly, mostly promulgated by the Japanese management. For example, if the rule requires the Vietnamese management and employees to show commitment to the company by overtime working. There may be a chance that the Vietnamese employees will disagree or disobey with that such rule. The second problem is that the management team may have different work routine and completely different living styles.
For instance, the Japanese management get used to working overtime, it means that they will spend much time on work rather than hanging out or socializing with the Vietnamese management. If so, there may be less chance the ‘two-side’ management team can understand each other and it is definitely unbeneficial for a good team-work. In terms of cooperat
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