HUMAN RESOURCE STRATEGY PLAN FOR THUAN PHUOC
SEAFOOD & TRADE CORPORATION IN NEXT FIVE YEARS
The Thuan Phuoc Seafood & Trading Corporation was established by IPO the Sea food &
trading Thuan Phuoc in the year 2007. After change to Joint stock, during the unstable
world economic situation, financial crisis and the downside of world economic during
2008’s has not recover up to now still. The difficult economic situation has effected
heavily on the business of all Vietnam companies including the Thuan Phuoc Seafood &
Trading Corporation. Facing that situation, Thuan Phuoc has to relook at how to make the
best use of the human resources. Thuan Phuoc needs to build up a strategic plan on
Human Resources for the next five years.
Select clear plan on develop human resources for the organization in theory
Analyze, evaluate the actual current situation of their human resources in tem of
quantity, quality, structure and manage the development on human resources of
Thuan Phuoc during the recent years
Suggest the plan and come out with a solution to develop their human resources in
the near future to fit into the new business situation
Objective of the plan:
The strategic plan focus on building up the objective related to develop the human
resources in the Thuan Phuoc Seafood & Trading Corporation
The area of the plan:
The content: Study on theory & practice on develop the human resources in the
Company to come out with some solution to develop the human resources until
The areas: The areas to analyze is in all the departments and factories which is
operating under the management of Thuan Phuoc company
Timelines: Using the statistic on human resources of the company from 2009 to
2011, come out with suggestion for develop their human resources until 2015 and
the vision till 2020
At the company like the Thuan Phuoc Seafood & Trading Corporation, there are no study
on development plan on human resources so this strategic plan will put in order, choose
the best solution on develop the human resources, analyze the current situation on
manage the development of their human resources on last recent time, suggest solution to
develop their human resources up to 2015.
1) CONCEPT AND THEORY:
1.1. Understand Human resource
a. What are Human Resources?
Human Resources are all the abilities on physical strength and mental power of
people use during the working process. It also consider as manpower of a person – the
most important resources in all the factors when running a business of an
b. The Human Resources:
There are different concepts on human resources, some said it is the resources from
people, some said it cover all factors like quantity, quality or the structure of the
people development in the present and in the future. The human resources can be
understood in different ways, but it will always include quality, quantity and the
mechanism of people.
c. Develop the Human resources:
There are many different understanding on how to develop the human resources. In
fact, to develop the human resources is to improve the quality of the human resource.
Improve the quality of the human resource is the results of Education, Training and
developing employees within the organization. To develop the human resources in the
organization is to make sure the size of the quantity and quality is suitable to the
current situation and the development of the organization in the future.
d. The important of the develop human resources with the organization development .
To develop the human resources is to improve the skill and knowledge of the employees
and it will help to develop the organization. Develop the human resources will increase
the labour productivities, the effectiveness and increase the labour quality and all these
will help to improve the business.
1.2. The main content to developing human resources in organization.
1.2.1. Make sure the management has the sufficient number of employees required
Talking about number of human resources in the organization, the first question we have
is to ask is how many employees in the company now and how many more we need in
the future. To make sure the organization always have enough manpower, they need to
have good plan on human resources and do well on recruitment.
a. Human Resources Plan:
To plan on human resources is a long process which needs to be studied well &
carefully implemented to make sure the company has a correct number of employees,
the quality of employees and right people for right job. That study will require good
analyzes to find out the need of the company to fulfill the mission of the organization
and build up a good plan to fulfill those needs.
b. Recruitment process:
Recruitment is very important part in the human resources management which
including: have clear job description, select resume and select right person to make
sure that quantity & the quality can fulfill the requirement of company development
1.2.2: Improve the quality of human resources:
Base on current human resource, organization need to improve the quality of their current
human resource by:
a. Valuating the actual result of every employee: We can evaluate by points, ranking,
compare between peers, observation or target management
b. Training & develop employee’s skill.
1.2.3. Maximizing the current human resource: Develop the human resource in the
organization is also depends a lot on how they utilize their human resources. To use their
human resources effectively, the organization will improve the labour productivities &
a. Assign task: For present, assign task in the organization have 3 types:
Assign job base on the job function
Assign job base on industry
Assign job base on how complicated the job is
b. Collaboration: There are 2 types of collaboration in the organization
Collaboration base on space
Collaboration base on time
1.2.4. Focus on building up a good benefit package for employees to motivation them
a. Physical benefit: Basic salary, allowance, bonus, benefit…
b. Visible benefit: promotion, working environment…
1.3. Factors which effect the human resource development process in the
1.3.1. External Factors:
a. The complexity on labors: The current labour market comes from deferent type of
people from deferent region all over Vietnam. They have deferent religion, level of
education, culture, ages... The more diversified the labour market is, the more
complicated human resource management and development is.
b. Education and Training: The training quality provided to employees before
working for the company will decide the human resource development policies of
the company in the future
c. The changing in technologies, industry and sciences: The development of new
technologies, industries & science has a big effect on the human resource of
organization. It will affect the human resource development policy of the
organization because employees are the people who must understand and own new
technologies to make use of it for the operation of the company they are working
d. Challenges on Economic: The economic world is changing rapidly together with
global challenges are increasing forcing companies to change to adapt with it.
They need to come out with right decision to support the business and to be more
effective. They may need to restructure the company on employees to reduce cost.
Besides, to attract the highly skilled employees they need to have attractive benefit
package with competitive salary offer.
e. The change in training & development policies from government: When new law,
decisions from government change then companies also need to change their
strategies to adapt to it.
f. The labours market: The labours market situation changes like salary rank, the
number of unemployment is how the actual situation of the market. This statistic
needed to be collected and analyzed to be used effectively in the human resource
planning of the company.
1.3.2. Internal factors:
a. Company needs.
b. Company structure and size
c. The factors on labours and leaders
2) THUAN PHUOC SEAFOOD & TRADING CORPORATION FOUNDING &
Thuan Phuoc Seafood & Trading Corporation was established in 1987 in Danang as
Thuan Phuoc Seafood & trading limited company. The company started it’s operation
with new company structure based on license number 3203001489 issues by Da Nang
Planning & investment department on 29/6/2007. The main business operation is focus
on production and exporting of frozen seafood.
2.1.2 Organization structure.
At the moment beside the different functioning department, the company also has 03 subcompany and the total employees is 2000 people (at Dec 2011)
2.1.3. The business result for the period from 2009 to 2011
Table: The business operation and result 2009-2011
% Ratio plus/ minus (+/-)
Profit before tax
Source: Sales & Marketing Department – Thuan Phuoc Seafood & Trading Corporation
2.2. Analyzing the current human resource situation in Thuan Phuoc Seafood &
2.2.1. Analyze the current situation of Human resource on quantity & structure.
a. Quantity: Number of employees is increasing year after year from 1,400 people in
2009 to 1,650 people in 2010 and 1,855 people in 2011. The increase amount is
around 15.10% per year during 2009 to 2011.
Structure by sex: The number of female employees are much higher than male, the
number of female employees keep increasing in number but declining in
percentage. In the year 2009 female employees were 1,260 people covering 90%
of the total employees & the year 2011 they have 1,540 female covering 83.02%
of total employees.
Structure based on job requirement: The employees in this company are mainly
direct workers. In the year 2009 the company had 1,320 workers (94.29%), year
2010 they had 1,550 workers (93.94%) and year 2011 the number of workers were
1,728 workers covering 93.15% of total employees in the company.
Structure by age: Thuan Phuoc employees have wide ranking age group, from 18
years old to 55 years old. The number of employees who are less than 24 years old
cover the most in the company & keep increasing since 2009 to 2011. In the year
2009 the number of employees who under 24 years old is 882 people cover 63%,
year 2010 is 1,132 people cover 68.61% and year 2011 is 1,337 people cover
Structure follows the years of service: There are number of employees who have
around 20 years of service in the company mainly management team since
company start the establishment up to now.
Structure by type of work: There are 3 deferent groups of employees in the
company and they are: Management team, skilled workers and normal workers.
Workers cover the most in their human resources. Year 2009 there are 1,320
workers cover 94.29%, year 2010 is 1,550 workers cover 93.93% and 2011 is
1,728 workers cover 93.15%.
2.2.2. Valuation company human resource base on quality:
Management team: As we can see in the table below the management team
mainly graduated from University or higher, this is their strong point. In term of
quantity, it is increasing year by year but by not much. Most of them have not yet
gone through management training so in the human resource strategy, we need to have
a plan to have good leadership skill training for this team.
Table: Statistic on management team
Have been trained
b. Level A
c. Other level
4. Computer skill
b. Level A
c. Level B
d. Level c
e. Other level
Source: Admin Department
Skilled workers are trained and skilled in the job that they do but most of them have
never had training in management skill. This is a potential group who can be the next
management & leader team for the company. We will need to have a clear plan to
train & develop them.
Workers group: The group who graduate high school level cover around
50% on total number of workers
2.3. Valuation the human resource development of the company from 2009 to 2011
2.3.1. Quantity of employees compare to the needs.
a. The number of employees keeps increasing year by year, to adapt to the expansion
of the company’s requirement.
b. Plan on human resource for future: The Company has not yet had any plan for
long term on human resources. The plan mainly focuses on recruiting enough
number of workers to fulfill the need when ever a new sales contract is signed.
Job description: The Company has a job description for some management
role; however, they don’t have any job description for other roles yet.
Recruitment: The new staff who joint in each year are mainly skilled and
normal workers. However, for the skillful group the recruitment result is enough
for 2009 & 2010 but in the year 2011 the number of staff successful recruited only
cover 76% of the actual need (19 out of 25). The survey with 230 staff on how
they get the job there are; 159 people apply and go through normal process cover
69.1% and other 71 people get the job because of other reason cover 30.9%.
Source: Thuan Phuoc Seafood & Trading corporation
2.3.2. Improvement Human Resource in the company:
Performance valuation: The Company pays some attention on job valuation
however this task is not consistent and mainly focuses on direct workers only. The
performance valuation is done every quarter and every year, this is used as a base
for bonus payment. According to one survey conducted, most of the staff who
were question believe they did their job quite well or very well in which the
amount of staff believe they did their job well is 85.2% Source: Thuan Phuoc
Seafood & Trading corporation
Training & development: Although the leaders paid attention on training &
developing employees however they did not have good plan and implementation.
The training mainly focuses on some high senior leaders, for other employees
there are some skill improvement courses only. There are also no training
department in the company
The survey result with 230 people who just started with the company less
than 6 months, 203 people said they get proper training and the rest said no
For training there are 174 people said they never been in any training
courses cover 75.7% number of people have been asked, 54 said sometime
and only 2 said they often attend training
Source: Thuan Phuoc Seafood & Trading Corporation
2.3.3. Assigning the right job for right person: During recent years the assigning of job
for employees were not done properly, example: not finding the people who studied that
specific job, the pressure of deliver goods on time so people from deferent department
need to support or internal movement of staff to finish the job which sometime is not the
strength of the staff.
2.3.4. Benefit package: Salary, allowance, bonus
About benefit package, company follows the job grade policies. Result from survey show
22% of employees think the benefit is suitable for their performance, 53.9 said not really
fit to their job requirement and 43.9% said not fit at all.
Source: Thuan Phuoc Seafood & Trading Corporation
2.3.5. Valuation and analyze on human resources in Thuan Phuoc Seafood & Trading
The human resources in Thuan Phuoc develop both by quantity and quality.
The number of employees is increasing year by year since 2009 to 2011. That
means the number of staff in first stage is enough for the business requirement. In
term of quality, it also keeps improving. The education level of employees is better
year after year.
In the recent years, the understanding on how important the human resource is
to the company is improving. Company leaders start to focus on clear & fair
recruitment process. The recruitment process also pay more attention on putting
the right person for the right job base on their qualification.
The quality of their human resource is not high, they are mainly general workers
without proper skills. This can provide enough manpower for process in the
factory but in terms of development, there are limited especially on training and
development on employees career
Do not have a good plan on recruitment or staff skill development.
Benefit package is not attractive enough to motivate staff loyalty.
Still assigning unqualified staff to do skilled required work and most of the time
without good training or coaching program
The human resource department is under the administration department and don’t
have enough people with knowledge to handle the human resource job or to advice
to the management team on good human resource management.
Have no good human resource management plan
Not yet have good policy to invest on human resources, the salary policy is base
on ranking not on actual performance.
Not yet have good performance valuation methods
Have no training fund to use to develop employees skill
3. SOLUTION TO DEVELOP THE HUMAN RESOURCE FOR THUAN PHUOC
SEAFOOD & TRADING CORPORATION.
3.1. Factors which affect the human resource development
3.1.1: Diversified of the labours.
To develop the human resources of the company, we need to have good a plan & strategy
to manage & make best use of the diversified labour and turn it become an advantage for
3.1.2. Education & training:
Most of direct workers are high school graduated, this can be an advantage. Company can
have plans to train them on new technologies, implement new process which they can
adapt & learn quickly if the training program is clear and easy to understand.
3.1.3. The changing of new technologies:
With the global trend & the world opening up and together with the rapid development of
new technologies, it will good advantage for the management to implement new
technologies to the process to produce products and even implement it into the human
resource management. Thuan Phuoc company should invest in new technologies to
support the company business growth & their employees also need to growth together
3.1.4. Legal environment: Our policies, labour law is quite complicated. Need to
understand well when dealing with human resource
3.1.5. Economic environment:
Expand & develop to export market
Expand & develop the local market
Expand the size of factories & increase the processing size.
3.1.6. Increasing competitors
In Da nang there are 17 Seafood process plants and 7 are Joint stock companies, 09
limited companies & 01 private company. In the current difficult situation, the cost of
electric, water, transportation increasing, the loan interest rates are all increasing, and it is
difficult to get loans, therefore it’s important for all seafood processing companies to
workout good plan together to manage to reduce cost, increase sales and to improve their
competitiveness in the market.
3.2. The need to develop human resource in Thuan Phuoc Seafood & trading
Base on the study of current situation & plan to expand business in the future we can
clearly see the need to have long term plan to develop the human resources of the
3.3: Mission & strategy to develop the company from now to 2015, vision to the year
Continue to grow from difficulty, make the best use of the internal resources, and focus
on find new contract to expand the export market to achieve the yearly target. Aim to be
in the top 10 of the seafood processing & export company.
3.3.2: Business plan from 2013 to 2015
The target which company set out for 2012 is almost same as 2011 to try to maintain their
business through the difficult economic situation. From 2013 to 2014 they must focus on
yearly growth of between 20 to 23%. Plan 2015 if their plan can work well, focus the
revenue will increase to reach 2,700 billion VND.
3.3.3: Mission & principle to develop company human resources from now to 2020.
Company principle is to implement a comprehensive solution to develop the human
resource. To study & valuated the abilities and position of each key employees, build up
policies to motivate staff for them to have more responsibility, passion and contribution
to the company. Provide more training to employees especially the high quality
employees on new technologies and management skills.
3.4.Some solution on human resource development in Thuan phuoc Seafood &
3.4.1. Solutions to ensure the quantity of the employees.
a. Create good plan on human resources: use the analyses of the past to focus on the
need on number of staff for the future. Focus to show the need on number of staff
of the company for the year 2013 is 2,050 people, 2014 is 2,200 people and 2015
is 2,400 people.
b. Create a new recruitment process and plan suitable to the recruitment plan of the
company. First step needed, is to build up a new recruitment process which
focuses on improve whatever which is not very good in the old process. Base on
the need of each department to create a good plan on recruiting new staff to fulfill
the departments’ needs.
3.4.2: Solutions on career development for current employees in the company.
Build up a good model on career plan: The principle of good career plan is to match
the individual ambition and the opportunities in the company. The is good for the linemanagers as they know how to assign task to their staff to give them a chance to
improve themselves. The career development plan can be followed up in 2 ways:
Development in the long term
Development based deeply & widely on the job itself.
3.4.3. Solutions to support improvements the human resources quality in the company.
Solutions focused on training to meet the requirement for career
development & skill improvement of existing employees
Understand the training needs: To understand the training need, the
Human resource department needs to do a survey and to study and
analyze the results base on the performance valuation table and the
actual abilities of employees. To create courses based on the valuation
of the employees to improve their skill and to support their job.
Implement the training courses
Improve the job valuation performance for all position within the
company. To have good job valuation system, the HR department needs to have a
complete statistic on the job requirements, build up a job valuation performance
standard to each job grade/ position. Good job valuation should have both
financial & non financial requirement. It also should base on what to achieve &
how to achieve
Build a clear training plan for each type of job to make sure
employee is ready to do their task. Base on our survey, most of staff said they need
clear training before start their job. The plan created needed to be implemented
with a strict timetable and should be strictly follow
Create suitable, effective and interesting training program, to
improve the trainees skill on their jobs and to create a teamwork environment
Training to improve the management skill for key staff
Create competitive benefit package to keep employees loyal to
the company and this can also attract good people from outside the company
3.4.4. Solutions on how to get best use of exiting resources:
a. Complete the organization chat and make sure to put right person on the right job
b. Empower the line managers team to manage their own team effectively
3.4.5. Solutions on motivating employees.
a. Complete the benefit package which well reward employees in term of salary,
bonus and other benefit
b. Enhance the working environment to motivate the staff.
1. The strategy plan is based on the theory on how to develop the human resources in
general & in the specific company. We also study and analyze the actual situation
to point out what is the positive & negative in current human resource
management process then suggest the best solutions to develop the human
resource plan to meet the requirement of expansion & development for the
business in the near future.
2. Based on our study we can see the human resource development plan of the
company still have some limit & not suitable to the current business requirement.
The number of employees is increasing since 2009 to 2011 based on expansion of
the business, however there is the need to analyze the business requirement to
come out with correct number of employees needed for the business, the
improvement of employees quality, to do this, the recruitment process also need to
improve. The company also needs to have a good & proper training program to
develop employee’s skill and lead them to have clear career plan. They also don’t
have competitive benefit package, the current package is not attractive enough to
attract talent from outside the company & also not attractive enough to keep talent
within company. They also need to have long term plan for direct workers for
them to see the benefit to stay loyal with company and not depend to much on the
outside labour market base which before was based mainly on the sales contract.
3. From the study above, our strategy plan have come out with some solutions to
resolve the issues which company was facing for short term and long term to have
a comprehensive plan to develop the human resource of the company. These
solutions will be implement in the actual practice and will be modify during the
implementation if needed to meet the changing of the market when doing
1. For the Board of Director: The Board of Director is the highest level in the
company who can decide and implement any decision on behalf of the company.
However, the Board of Director who are also the leaders position in the company
management so the Board of Director need to come out with good strategy &
business plan base on the contribute ideas from all department. Every year in the
share holders meeting the Board of Director need to provide enough information
to the share holders and special focus must be on policy & fund to support the
development of human resource within the company like training, increase salary,
bonus and other benefits.
Company management: For those who also member of Board of Director need to have
clear picture & understand the need for the business to manage company business in the
right way and achieve good results. They also need to focus and understand what support
their employees need from the management team, and also to evaluate the employees
fairly. Good employees rewarded, like promotions or increase their salary before the
regular time to motivate them to contribute their best to the company. Continue to have
good plan to expand the business & focus to complete the deal to rent 20,000m2 in Tho
Quang industrial to build new factory and also quickly start the plan to build apartments
for workers from other province to have good & stable residential so they will stay long
term with the company.