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CONTENT
INTRODUCTION................................................................................................................1
CHAPTER 1. LITERATURE REVIEW...........................................................................2
1.1. DEFINITION OF RECRUITMENT AND SELECTION...........................................................2
1.2. THE ROLE OF RECRUITING AND SELECTING EMPLOYEES.............................................3
1.3. PLANNING FOR AND RECRUITING HUMAN RESOURCES................................................3
1.3.1. Personnel policies................................................................................................4
1.3.2. Recruitment sources.............................................................................................5
1.3.3. Recruiter traits and behaviors.............................................................................7
1.4. SELECTING EMPLOYEES AND PLACING THEM IN JOBS.................................................7
1.4.1. Selection process..................................................................................................7
1.4.2. Job applications and résumés..............................................................................8
1.4.3. Employment tests and work samples...................................................................9
1.4.4. Interviews...........................................................................................................10
1.4.5. Selection decisions.............................................................................................11
CHAPTER2. RECRUITION AND SELECTION ACTIVITIES AT VIETNAM BANK
FOR AGRICULTURE RURAL DEVELOPMENT (AGRIBANK VIETNAM) – SOC
SON BRANCH...................................................................................................................12
2.1. GENERALS OF AGRIBANK VIETNAM..........................................................................12
2.1.1. Agribank Vietnam..............................................................................................12
2.1.2. Soc Son branch..................................................................................................13
2.2. RECRUITING AND SELECTING EMPLOYEES AT AGRIBANK SOC SON.........................14
2.2.1. Organisation chart.............................................................................................14
2.2.2. Job description...................................................................................................19
2.2.3. Recruitment policies..........................................................................................20
2.2.4. Recruitment process...........................................................................................21
2.2.5. Selection methods..............................................................................................23
2.2.6. Labor contract...................................................................................................24
2.3. EVALUATION OF RECRUITMENT AND SELECTION ACTITIVITIES AT AGRIBANK SOC
SON...................................................................................................................................24
2.3.1. Strengths............................................................................................................24
2.3.2. Weakneeses........................................................................................................25
CHAPTER 3. RECOMMENDATIONS TO IMPROVE RECRUITMENT AND
SELECTION ACTIVITIES AT AGRIBANK SOC SON...............................................26
3.1. DEVELOPMENT PLAN OF AGRIBANK SOC SON..........................................................26
3.1.1. Business plan.....................................................................................................26
3.1.2. Human resource management plan...................................................................27
3.2. RECOMMENDATIONS PROPOSED TO AGRIBANK SOC SON..........................................28
3.2.1. Pushing up computing training program for officers and employees...............28
3.2.2. Concretizing job description..............................................................................28
3.2.3. Diversifying recruitment sources.......................................................................29
3.2.4. Diversifying ways of advertising recruitment information................................30
3.2.5. Improving selection methods.............................................................................30
3.2.6. Innovating selection criteria..............................................................................32
3.2.7. Evaluating recruitment results...........................................................................32
CONCLUSION...................................................................................................................34
REFERENCES...................................................................................................................35
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LIST OF FIGURES AND TABLES

FIGURE 1.1. HUMAN RESOURCE MANAGEMENT PRACTICES........................................4


FIGURE 1.2. HUMAN RESOURCE PLANNING.................................................................5
FIGURE 1.3. THREE ASPECTS OF RECRUITING..............................................................6
FIGURE 1.4. SELECTION PROCESS..............................................................................10
FIGURE 2.1 ORGANISATION STRUCTURE...................................................................17
FIGURE 2.2 JOB ANALYSIS.........................................................................................21

TABLE 2.1 REPORT IN JUNE, 2014.............................................................................16


TABLE 2.2 REPORT OF THE NUMBER AND QUALITY OF STAFF IN FIRST SIX MONTHS
OF 2014 – SOC SON BRANCH.............................................................................19
Table 2.3 Recruitment criteria.................................................................................22
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INTRODUCTION

Human resource always plays an important role in operating any organization. An


organization can only function effectively when its employees perform well their
job, constantly develop their ability to work and try their best for the overall
development of the company. To have a high quality workforce, the organization
must ensure the implementation of good human resource management, strategy
including from reasonable recruitment, work assignment, performance evaluation
and remuneration policies.
One of the most important functions of human resource management is recruitment
and selection activities which decide the quality of the staff and the company’s
business performance. Through recruitment, managers can find out the right
candidates for the right position. To improve the efficiency of business operation,
the company need establishing and implementing appropriate recruitment and
selection policies.
In fact, many enterprises have not been fully aware of the important role of human
resource as well as recruitment and selection activities which lead to lack of
effectiveness and efficiency in human resource management. Therefore, during my
internship, I decided to choose the topic: “Recruitment and Selection activities at
Agribank Vietnam – Soc Son branch” for this report.
The report will be divided into three parts:
CHAPTER 1. LITERATURE REVIEW
CHAPTER 2. RECRUITMENT AND SELECTION ACTIVITIES AT
AGRIBANK VIETNAM – SOC SON BRANCH
CHAPTER 3. RECOMMENDATIONS TO IMPROVE RECRUITMENT AND
SELECTION ACTIVITIES AT AGRIBANK SOC SON
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CHAPTER 1. LITERATURE REVIEW

1.1. Definition of recruitment and selection


Human resources is the set of individuals who make up the workforce of
an organization, business sector, or economy. "Human capital” is sometimes used
synonymously with human resources, although human capital typically refers to a
more narrow view (Source: Fundamentals of human resource management /
Raymond A. Noe . . . [et al.].—4th ed.).
The challenges faced by Domino’s are important dimensions of human resource
management (HRM), the policies, practices, and systems that influence
employees’ behavior, attitudes, and performance. Figure 1.1 emphasizes that there
are several important HRM practices that should support the organization’s business
strategy: analyzing work and designing jobs, determining how many employees
with specific knowledge and skills are needed (human resource planning), attracting
potential employees (recruiting), choosing employees (selection), teaching
employees how to perform their jobs and preparing them for the future (training and
development), evaluating their performance (performance management), rewarding
employees (compensation), and creating a positive work environment (employee
relations).
Figure 1.1. Human resource management practices

Source: Fundamentals of human resource management / Raymond A. Noe . . . [et al.].—
4th ed, p. 39
One of the most important steps in HRM is recruiting and selecting employees.
Recruiting consists of any practice or activity carried on by the organization with
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the primary purpose of identifying and attracting potential employees. And through
personnel selection, organizations make decisions about who will or will not be
allowed to join the organization.

1.2. The role of recruiting and selecting employees


The role of human resource recruitment is to build a supply of potential new hires
that the organization can draw on if the need arises. In human resource
management, After that, Selection begins with the candidates identified through
recruitment and attempts to reduce their number to the individuals best qualified to
perform the available jobs. At the end of the process, the selected individuals are
placed in jobs with the organization.

1.3. Planning for and recruiting human resources


Figure 1.2. Human resource planning

Source: Fundamentals of human resource management / Raymond A. Noe . . . [et al.].—
4th ed, p.162
The first step in human resource planning is forecasting. The primary goal isto
predict which areas of the organization will experience labor shortages or surpluses.
The second step in human resource planning is goal setting and strategic planning.
The purpose of setting specific numerical goals is to focus attention on the problem
and provide a basis for measuring the organization’s success in addressing labor
shortages and surpluses. The goals should come directly from the analysis of labor
supply and demand. For whatever HR strategies are selected, the final stage of
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human resource planning involves implementing the strategies and evaluating the
outcomes. When implementing the HR strategy, the organization must hold some
individual accountable for achieving the goals. That person also must have the
authority and resources needed to accomplish those goals. It is also important that
this person issue regular progress reports, so the organization can be sure that all
activities occur on schedule and that the early results are as expected.

1.3.1. Personnel policies


Figure 1.3. Three aspects of recruiting

Source: Fundamentals of human resource management / Raymond A. Noe . . . [et al.].—
4th ed, p. 174

A company’s personnel policies are its decisions about how it will carry out human
resource management, including how it will fill job vacancies. Several personnel
policies are espe- cially relevant to recruitment:

• Internal versus external recruiting—Organizations with policies to “promote


from within” try to fill upper-level vacancies by recruiting candidates internally

• Lead-the-market pay strategies—Pay is an important job characteristic for almost


all applicants.

• Employment-at-will policies—Within the laws of the state where they are


operating, employers have latitude to set polices about their rights in an
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employment relation- ship.

• Image advertising—Besides advertising specific job openings, organizations may


advertise themselves as a good place to work in general. Advertising designed to
create a generally favorable impression of the organization is called image
advertising.

1.3.2. Recruitment sources


Internal Sources

As we discussed with regard to personnel policies, an organization may emphasize


internal or external sources of job applicants. Internal sources are employees who
currently hold other positions in the organization. Organizations recruit existing
employees through job posting, or communicating information about the vacancy
on company bulletin boards, in employee publications, on corporate intranets, and
anywhere else the organization communicates with employees.

External Sources

Despite the advantages of internal recruitment, organizations often have good


reasons to recruit externally.37 For entry-level positions and perhaps for specialized
upper-level positions, the organization has no internal recruits from which to draw.
Also, bringing in outsiders may expose the organization to new ideas or new ways
of doing business. An organization that uses only internal recruitment can wind up
with a workforce whose members all think alike and therefore may be poorly suited
to innovation.
 Direct Applicants and Referrals
Even without a formal effort to reach job applicants, an organization may hear from
candidates through direct applicants and referrals. Direct applicants are people
who apply for a vacancy without prompting from the organization. Referrals are
people who apply because someone in the organization prompted them to do so.
 Advertisements in Newspapers and Magazines
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Open almost any newspaper or magazine and you can find advertisements of job
openings. These ads typically generate a less desirable group of applicants than
direct applications or referrals, and do so at greater expense. However, few
employers can fill all their vacancies purely through direct applications and
referrals, so they usually need to advertise. An employer can take many steps to
increase the effectiveness of recruitment through advertising.
 Electronic Recruiting
In recent years, employers have shifted using their spending on job advertisements
away from print ads to online job advertising or a combination of the two. A recent
survey by the Conference Board found that the number of online job ads rose by 24
percent over the previous year. Online recruiting generally involves posting career
information at company Web sites to address people who are interested in the
particular company and posting paid advertisements at career services to attract
people who are searching for jobs. Company’s are also visiting network sites such
as Linked In and Facebook to find job candidates.
 Public Employment Agencies
Employers can register their job vacancies with their local state employment office,
and the agency will try to find someone suitable, using its computerized inventory
of local unemployed individuals. The agency refers candidates to the employer at no
charge. The organization can interview or test them to see if they are suitable for its
vacancies. Besides offering access to job candidates at low cost, public employment
agencies can be a useful resource for meeting certain diversity objectives.
 Private Employment Agencies
In contrast to public employment agencies, which primarily serve the blue-collar
labor market, private employment agencies provide much the same service for the
white- collar labor market. Workers interested in finding a job can sign up with a
private employment agency whether or not they are currently unemployed.
 Colleges and Universities
Most colleges and universities have placement services that seek to help their
graduates obtain employment. On-campus interviewing is the most important
source of recruits for entry- level professional and managerial vacancies.
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1.3.3. Recruiter traits and behaviors

Characteristics of the Recruiter

Most organizations must choose whether their recruiters are specialists in human
resources or are experts at particular jobs (that is, those who currently hold the same
kinds of jobs or supervise people who hold the jobs).

In general, applicants respond positively to recruiters whom they perceive as warm


and informative. “Warm” means the recruiter seems to care about the applicant and
to be enthusiastic about the applicant’s potential to contribute to the organization.
“Informative” means the recruiter provides the kind of information the applicant is
seeking.

Behavior of the Recruiter

Recruiters affect results not only by providing plenty of information, but by


providing the right kind of information. Perhaps the most-researched aspect of
recruiting is the level of realism in the recruiter’s message. Because the recruiter’s
job is to attract candidates, recruiters may feel pressure to exaggerate the positive
qualities of the vacancy and to downplay its negative qualities. Applicants are
highly sensitive to negative information. The highest-quality applicants may be less
willing to pursue jobs when this type of information comes out.

1.4. Selecting employees and placing them in jobs

1.4.1. Selection process


The process of selecting employees varies considerably from organization to
organization and from job to job. At most organizations, however, selection includes
the steps illustrated in Figure 1.3. First, a human resource professional reviews the
applications received to see which meet the basic requirements of the job. For
candidates who meet the basic requirements, the organization administers tests and
reviews work samples to rate the candidates’ abilities. Those with the best abilities
are invited to the organi- zation for one or more interviews. Often, supervisors and
team members are involved in this stage of the process. By this point, the decision
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makers are beginning to form opinions about which candidates are most desirable.
For the top few candidates, the organization should check references and conduct
background checks to verify that the organization’s information is correct. Then
supervisors, teams, and other decision makers select a person to receive a job offer.

Figure 1.4. Selection process

Source: Fundamentals of human resource management / Raymond A. Noe . . . [et


al.].—4th ed, p.195

1.4.2. Job applications and résumés


Nearly all employers gather background information on applicants at the beginning
of the selection process. The usual ways of gathering background information are
by asking applicants to fill out application forms and provide résumés.
Organizations also verify the information by checking references and conducting
background checks.

Application Forms

Asking each applicant to fill out an employment application is a low-cost way to


gather basic data from many applicants. It also ensures that the organization has cer-
tain standard categories of information, such as mailing address and employment
his- tory, from each. Figure 6.3 is an example of an application form.

Employers can buy general-purpose application forms from an office supply store,
or they can create their own forms to meet unique needs. Either way, employment
applications include areas for applicants to provide several types of information:
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• Contact information—The applicant’s name, address, phone number, and e-


mail address.

• Work experience—Companies the applicant worked for, job titles, and dates of
employment.

• Educational background—High school, college, and universities attended and


degree(s) awarded.

• Applicant’s signature—Signature following a statement that the applicant has


pro- vided true and complete information.

Résumés

The usual way that applicants introduce themselves to a potential employer is to


submit a résumé. As with employment applications, an HR staff member reviews
the résumés to identify candidates meeting such basic requirements as educational
background, related work per- formed, and types of equipment the person has used.

1.4.3. Employment tests and work samples


When the organization has identified candidates whose applications or résumés
indicate they meet basic requirements, the organization continues the selection
process with this narrower pool of candidates. Often, the next step is to gather
objective data through one or more employment tests. These tests fall into two
broad categories:

1. Aptitude tests assess how well a person can learn or acquire skills and abil-
ities.

2. Achievement tests measure a person’s existing knowledge and skills. For


example, government agencies conduct civil service examinations to see
whether applicants are qualified to perform certain jobs.

Before using any test, organizations should investigate the test’s validity and
reliability. Besides asking the testing service to provide this information, it is
wise to consult more impartial sources of information.
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In some situations, employers may also want to know about candidates’


personalities. For example, one way that psychologists think about personality
is in terms of the “Big Five” traits: extroversion, adjustment, agreeableness,
conscientiousness, and inquisitiveness. There is evidence that people who score
high on conscientiousness tend to excel at work, especially when they also have
high cognitive ability. For people-related jobs like sales and management,
extroversion and agreeableness also seem to be associated with success.28
Strong social skills help conscientious people ensure that they get positive
recognition for their hard work.

1.4.4. Interviews
Interviewing Techniques

Interview techniques include choices about the type of questions to ask and the
number of people who conduct the interview. Several question types are possible:

 In a nondirective interview, the interviewer has great discretion in choosing


questions. The candidate’s reply to one question may suggest other questions
to ask. Nondirective interviews typically include open-ended questions about
the candidate’s strengths, weaknesses, career goals, and work experience.

• A structured interview establishes a set of questions for the interviewer to


ask. Ideally, the questions are related to job requirements and cover relevant
knowledge, skills, and experiences. The interviewer is supposed to avoid
asking questions that are not on the list.
• A situational interview is a structured interview in which the interviewer
describes a situation likely to arise on the job and asks the candidate what he
or she would do in that situation. This type of interview may have high
validity in predicting job performance.

• A behavior description interview (BDI) is a situational interview in which


the interviewer asks the candidate to describe how he or she handled a type
of situation in the past. Questions about candidates’ actual experiences tend
to have the highest validity.
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1.4.5. Selection decisions


How Organizations Select Employees
The usual process for arriving at a selection decision is to gradually narrow the pool
of candidates for each job. This approach, called the multiple-hurdle model, is
based on a process such as the one shown earlier in Figure 1.3. Each stage of the
process is a hurdle, and candidates who overcome a hurdle continue to the next
stage of the process. For example, the organization reviews applications and/or
résumés of all can- didates, conducts some tests on those who meet minimum
requirements, conducts ini- tial interviews with those who had the highest test
scores, follows up with additional interviews or testing, and then selects a candidate
from the few who survived this pro- cess. Another, more expensive alternative is to
take most applicants through all steps of the process and then to review all the
scores to find the most desirable candidates. With this alternative, decision makers
may use a compensatory model, in which a very high score on one type of
assessment can make up for a low score on another.

Communicating the Decision


The human resource department is often responsible for notifying applicants about
the results of the selection process. When a candidate has been selected, the
organiza- tion should communicate the offer to the candidate. The offer should
include the job responsibilities, work schedule, rate of pay, starting date, and other
relevant details. If placement in a job requires that the applicant pass a physical
examination, the offer should state that contingency. The person communicating the
offer should also indicate a date by which the candidate should reply with an
acceptance or rejection of the offer. For some jobs, such as management and
professional positions, the candi- date and organization may negotiate pay, benefits,
and work arrangements before they arrive at a final employment agreement.
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CHAPTER2. RECRUITION AND SELECTION ACTIVITIES AT VIETNAM


BANK FOR AGRICULTURE RURAL DEVELOPMENT (AGRIBANK
VIETNAM) – SOC SON BRANCH

2.1. Generals of Agribank Vietnam

2.1.1. Agribank Vietnam


In 1988, the Agricultural Development Bank of Vietnam was established by Decree
No. 53/HDBT dated 26 March, 1988 of the Council of Ministers (now the
Government) with the reform of the financial system and the introduction of
commercial banks in Vietnam.
The Agricultural Development Bank of Vietnam was created out of the State Bank
of Vietnam (SBV): from all provincial branches of SBV, Agriculture Credit
Division, funds at different provincial/district branches of SBV; specifically,
Agribank was formerly the Agriculture Credit Department of SBV with personnel
from Commercial Credit Department, Bank for Investment and Construction,
Department of Accounting, and a number of functional units.
In the context of the world economy and Vietnam in particular facing many
dificulties in the economic crisis, Agribank remains sustainable development.
Agribank had the total assets of VND 617,859 billion (approximately 20%
GDP), rised by 10% compared with 2011. As the biggest commercial bank in
Vietnam in terms of fund resources, assets, and the bad debts is controled. In 2012,
Agribank win the title such as: Top 10 biggest enterprises in Vietnam – VNR500;
Top Asean Enterprise, Top brand name of Asean; Top Bank for Payment; Top Banks
of Vietnam. In 2013, Agribank held the 25 year universal (March 26, 1988 – March
26, 2013).
Agribank is the largest bank in Viet Nam in terms of capital, assets, workforce,
operating network and customer base. As of October 2013, the leading role of
Agribank has been confirmed by:
+ Total asset: VND 671,846 billion
+ Total fund resource: VND 593,648 billion
+ Equity: VND 29,605 billion
+ Total outstanding loans: VND 523,088 billion
+ Operating network: 2,400 branches and transaction offices nationwide
13

+ Personnel: 40,000 staffs


Agribank has always focused on the innovation and application of banking
technology in favour of business administration and the development of an
advanced banking services network. Agribank is the first bank to accomplish the
Project “Intra Payment and Customer Accounting System” (IPCAS) funded by the
World Bank. The finalised IPCAS has enabled Agribank to provide local and
foreign customers with modern banking products and services with extensive safety
and accuracy. At present, Agribank is serving millions of households and
enterprises.
Agribank is the biggest commercial bank in VietNam with an operating network of
2,300 branches and transaction offices nationwide which have been connected
online. In 2010, Agribank has extended the network by opening its first branch in
the Kingdom of Cambodia.

2.1.2. Soc Son branch


Vietnam Bank for agriculture rural development (Agribank Vietnam), Soc Sơn
branch was born according to Decree No.51/QĐ-NH dated 27/06/1988 by General
Director of State Bank of Vietnam ( now Governor of State Bank of Vietnam), with
initial name Soc Son Bank for agricultural development which is directly under
Hanoi Bank for agricultural development. In 1990, it was renamed Agricultural
Bank of Soc Son. In 1996, it was officially renamed Vietnam Bank for agriculture
rural development – Soc Son branch.
On the very first days, Soc Son branch had to deal with many challenges: the large
number of employees – up to 107 but only 7 members had university degrees. At
that time, Soc Son was considered a poor district with poor facilities, weak business
network, which led to the difficulties for currency trading activities. By the end of
1988, the operation results of branch achieved: total capital was 1,623 million,
debit balance was 1.593 million, 85 million overdue loans for 5.3% of the total debit
balance. In this situation, the bank continued to push up the business operation in
conformity with innovative ways that the Party and State selected. Soc Son branch
has solved prolems step by step to be “a mature child” of Agribank Vietnam. The
officers and staff at branch always try to innovate working methods to overcome
14

difficulties, especially in period of economic crisis. The latest report of Agribank


Soc Son on business results in first six months of 2014 following: (Unit: Million
VND)
Table 2.1 Report in June, 2014

(1) 2013 (2) 6/2014 (3) Ratio (4)


(4)=(3)/(2)
Total capital 2,897,490 3,091,402 6,7%
Domestic currency 2,836,373 3,028,357 6,8%
Outstandings loans 1,182,460 1,197,578 1,3%
Outstandings bad debt 36,936 161,205 436,4%
Source: Accounting department – Agribank Soc Son
According to the figures in the table above, we can easily realize that the
outstanding bad debts of 2014 has experienced a remarkable increase. The ratio
shows 436,4%. This figure indicates that there are some problems with auditting
and setting price on quality of borrowers. These problems can reduce the
effectiveness of currency activities of Agribank Soc Son. Increasing outstanding bad
debts means increasing allowance for bad debts which leads to decrease in cash
flow.

2.2. Recruiting and Selecting employees at Agribank Soc Son

All the recruiting and selecting activities comply with Decree No.188/QĐ-HĐQT-
LĐTL dated 28/02/2007 issued by Board of Directors of VIETNAM BANK FOR
AGRICULTURE RURAL DEVELOPMENT (AGRIBANK VIETNAM)

2.2.1. Organisation chart

Soc Son branch is governed by one general manager, two deputy managers and six
departments:

Figure 2.1 Organisation structure


15

Source: Human resource department – Agribank Soc Son


Job description of each department
 Planning department:
+ Directly manage capital, promote new plan about customer services, fund
raising and capital development;
+ Support for General manager in building business planning in short term
and long term;
+ Manage information of development plan, plan implementation;
+ Responsible for risk management in caplital;
+ Other tasks assigned by General manager.

 Accounting department:
+ Prepares and updates the accounting plan, the balance sheet and the
statements of the Bank; draws up the Bank’s annual budget and follows its
implementation;
+ Keeps the books as prescribed by law, follows the smooth functioning of
the accounting system and makes the necessary arrangements thereof;
+ Repares the reports of extra budgetary funds;
+ Is responsible for the fulfillment of the financial obligations of the Bank;
+ Keeps, follows and controls the accounting records of foreign exchange
transactions of the Head Office;
+ Gives instructions to the branch offices and to the banks on the related
matters.
 Foreign exchange department:
+ Purchase and selling all kinds of foreign exchange and banknotes pursuant
to the Law on the Protection of the Value of the Vietnamese Currency;
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+ Responsible for transaction related to buying and selling in the foreign


exchange and banknotes markets within the Money Markets and Treasury
Department, and the transactions related to foreign exchange remittances for
public sector and invisible transactions.
+ Maintain the foreign exchange deposit accounts of the Vietnamese workers
abroad and conducting transactions related thereto.

 Computing and Marketing department:


+ Acts as intermediary in the foreign exchange and banknotes markets in
order to obtain a more efficient utilization of the funds in the banking system,
and operates, when necessary, in the name and on behalf of the Bank,
ensuring smooth functioning of the markets;
+ Makes arrangements in the foreign correspondent banking relationship;
the sale of government papers by “auction” and “outright sale to public”
methods;
+ Executes the credit transactions of the Bank with the Treasury, public
institutions and the banking system;
acts as the reporter of the Discount Committee of the Head Office;

 Internal control department


+ Inspects all operations of the branch and representative offices abroad to
ensure that they are executed in compliance with the regulations; conducts
examinations and inquiries within the limits of the powers and duties granted
by the Banks Act and other related laws;
+ Follows and controls the transactions of the branch offices to ensure that
they are executed in accordance with the regulations;
+ Follows and audits the existence and movements of the cash and in kind
values in order to verify whether they correspond to the records;
notifies the illegal activities and important troubles concerning the security
and works of the branch.

 Human resource department


+ Provides proposals to the top management for setting the branch’s
personnel policy and for its effective application;
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+ Recruits the personnel suitable to the Bank’s needs, determines their


employment conditions and employs them in the organization according to
their qualifications;
+ Conducts and follows the matters of all kinds pertaining to personnel;
+ Informs the employees of the regulation pertaining to personnel, personal
rights, and social security;
+ develops an effective training system in accordance with the Bank’s
general objective and policy as well as technological, economic and social
developments.

Table 2.2 Report of the number and quality of staff in first six months of 2014 – Soc Son branch

No. Norms 06/2013 06/2014


Total number of employees 109 107
Female 64 63
1 Gender
Male 45 44
2 Party member 37 36
3 The minority 0 0
Politics High 0 0
4 Intermediate
Level 98 98
Doctor 0 0
Master 4 4
Professional University degree 96 96
5 College degree 3 2
level Senior banking 0 0
High school 4 3
Others 2 2
University degree 2 2
Foreign Level C 65 64
6
language level Level B 14 14
Level A 8 8
University degree 2 2
Level C 5 5
7 Computing level
Level B 80 79
Level A 9 9
8 Age <= 30 30 30
31 – 35 33 33
36 – 40 17 17
41 – 45 5 5
46 – 50 11 11
51 – 55 11 10
56 – 60 2 1
18

Average 36,85 36,50


Source: Human resource department – Agribank Soc Son
This table shows that from 2013 to 2014, the number and quality of staff at
Agribank Soc Son have seen a small change. The total number of employees just
decreases by 2 peoples because of retirement. Almost the staff remain unchanged.
The reason is that during the last 3 years, Vietnam has experienced economic crisis,
many companies try to downsize human resource to maintain the operation, not
except for Agribank Vietnam. Therefore, the Bank almost does not recruit
employees to cut down the costs and assure that the needs of staff shall be satisfied.

2.2.2. Job description


The job description of the Bank was built according to regulations for staff and
officers of the Bank, which complies with Decree No.20/QĐ-HĐQT-LĐTL dated
17/02/2003 regulated by Board of Directors of Agribank Vietnam. The job
description process begins with the job analysis and includes four parts as showed
following:
Figure 2.2 Job analysis

Source: Human resource department – Agribank Soc Son


After analysing the job, the Bank carries on collecting the information by asking
some experts and supervisors, some people who have experience doing the job. The
information includes job characteristics for each department, the required
19

qualifications and experience. Then the job outline is developed. The next step is to
specify job description and job specifications. The job description is divided into
four parts: tasks, duties, responsibilities and accountabilities. In job description, the
Bank clearly defines the tasks of each department and the responsibilities of top-
level managers like General manager, Chief finance officer, Chief accountant…
However, there is no job description for each position of employees. This is one of
major weaknesses of Agribank Vietnam in general and Soc Son branch in particular.

2.2.3. Recruitment policies

2.2.2.1. Recruitment objectives


Recruitment plays an important role in all organizations and is the core task of
human resource department. For Agribank, they create their own vision with some
specific objectives of recruitment. Firstly, they want to obtain the number and
quality of employees who are suitable for thư positions, not only the talented
employees, so that the bank can gain the competitive advantages. Moreover, on the
way expanding the market and diversifying business areas, Agribank needs more
and more employees who are specialized in many fields related to finance and
banking, insurance and metalware as well. The recruitment process must be carried
on democratically, publicly and clearly.

2.2.2.2. Recruitment criteria


 General criteria
+ Clear background with necessary diplomas and training certificates
+ Physically fit to take on the position
+ Officers and professional employees must satisfy job requirements.
Those who graduate with high level are given recruitment priority
+ Without criminal liability, debt, imprisonment
 Specific criteria for each type of position

Table 2.3 Recruitment criteria

Skills Qualifications
20

Officers & + Good management skill + College diploma or higher


+ Good at initiating ideas, + Foreign language: C level
managers
strategy planning or higher
+ Good leadership skill + At least 5 years working in
+Good human skill
finance and banking
+ Have wide knowledge in
+ At least 3 years working in
economic, politics and society
department of promoted
position
+ High politic level
Employees + Good teamwork skill + Intermediate level in
+ Good at comprehending job
applied position
requirements + Understand State bank
+ Basic comuting skill
laws

Specialists + Good at analysing and + Have wide knowledge in


collecting data State bank laws and Credit
+ Good communication skill
area
+ Actively initiate ideas, give
+ College diploma or higher
solutions
in applied department
+ Have good training skill
+ Finished management
+ Good at writing documents
course
+ Foreign language: level C
or higher
+ Have scientific research
recognized by Agribank
Vietnam

Source: Human resource department – Agribank Soc Son

2.2.4. Recruitment process

2.2.4.1. Building recruitment plan


 On annual first quarter, when building business plan, each branch
including Soc Son branch draw recruitment plan, based on:
+ Labor demand to meet business operation
+ Actual situation of labor and labor fluctuation (if any)
+ Effectiveness, efficiency of labor
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+ Compensation policies
 Content of recruitment plan:
+ The number of employees needed including assessment and direct
admission (show clearly for each)
+ The office or vacancies needed or specific labor
+ The qualifications needed for position
 Recruitment plan must be submitted to Agribank Vietnam accompanied
by business plan

2.2.4.2. Approving recruitment plan


After collecting recruitment plans of each branch, labor and wage department
submit to General manager to get the approval of recruitment plan. After the
appoval of Board of Director, the General manager publicly announce to each
branch.

2.2.4.3. Implementing recruitment plan


 Recruitment announcement:
At least 7 days before collecting application forms, branch must publicly
announce via mass media such as newspapers, radios or television, also post
on the notification board of office.
 Content of recruitment:
+ The number of employees needed
+ The vacancies and specific description
+ Job requirement, required qualifications and traning certificates
+ Time of labor contract after recruitment
+ Wage and other compensation policies
+ Basic working conditions including place, starting point, the number of
working hours, break time, safety and hygiene needs
+ Other needs of employees
+ Needed documents included in application form
+ Time of colleting application forms, time of examination and
assessment
 Registration dossiers for recruitment:
+ Application form (Sample 1 in annex)
+ 1 copy of labor records or curriculum vitae
+ Copies of diplomas, certificates for applied position
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+ 1 copy of medical certificate recognized by The Ministry of Health


service
+ Other documents based on job characteristics
Dossiers must be packed carefully with 3 envelops named recipient
clearly.

2.2.5. Selection methods

2.2.5.1. Competitive examination


 Objects: The participants who are 18 years old and over and satisfy
general recruitment criteria mentioned above
 2 rounds
+ Paper tests: includes English test, Computing test, Professional skill test
+ Interview: participants pick up a number and have 10 minutes to
prepare. The maximum score is 10 and the final score is the average of
two figures marked by two examiners.
 Exam board:
+ Responsible for organising and allocate proctors for test rooms
+ Organise and arrange the guardian around test areas
+ Perform test regulations strictly
+ Carry out test procedure
 Examiner Committee:
+ Collect tests of participants
+ Mark exam papers
+ Make decision on standard mark

2.2.5.2. Assessment
 Objects: Officers working for Agribank at least 15 years or attain
honourable awards recognised by Agribank Vietnam or State of Vietnam.
One child of these officers are given recruitment priority.
All objects in assessment must be recognised by General manager in written
paper.

2.2.5.3. Direct admission


 Objects:
+ Excellent university degree, good morality
+ Student abroad with excellent post-university degree and professional
qualifications
+ Objects in Social policy (The minority…)
23

Direct admission shall be regulated by Board of Directors.

2.2.6. Labor contract


 Job offer: The next step in selection process is job offer to those applicants
who have crossed all the previous hurdles. It is made by way of letter of
appointment.
 After trial period, final decision is made by the branch and the labor contract is
completed.

2.3. Evaluation of recruitment and selection actitivities at Agribank Soc Son

2.3.1. Strengths
The information showed above indicates that recruiting and selecting activities at
Agribank Soc Son has some strengths following:
+ Build up recruitment plan clearly which fit with business plan and development
orientation of Agribank Vietnam
+ Draw a clear criteria system for recruitment and selection which describe required
skills and qualifications for applied postions.
+ Take advantage of Internet to spread out the recruitment information to candidates
effectively.
+ Clear selection methods.
+ The number and the quality of employees almost satisfy the labor demand of
branch and fit with the actual situation of Agribank Vietnam.
+ Recruitment coucil and examiner committee are regulated clearly with their
obligations and authority.
+ Recruiting and selecting activities are publicly announced and comply with Labor
law and regulations of Ministry of Labour.

2.3.2. Weakneeses
Besides some strong points, Agribank Soc Son needs to improve some weakneeses:
+ Lack of job description for each position, each role in each department which
leads to shortcoming in evaluating job performance.
+ Limited advertisement forms for recruitment.
+ Lack of innovation in selection methods.
24

+ Recruitment sources are not mentioned clearly


+ Lack of recruitment policies to attract the talented.
25

CHAPTER 3. RECOMMENDATIONS TO IMPROVE RECRUITMENT AND


SELECTION ACTIVITIES AT AGRIBANK SOC SON

3.1. Development plan of Agribank Soc Son

3.1.1. Business plan


Agribank, the largest State-owned commercial bank, will carry out its restructuring
plan over the next three to four years, said bank chairman Nguyen Ngoc Bao. This
plan will be instructed to branches icluding Soc Son branch.
The plan was submitted to the Government before the Tet (lunar new year) holiday
and was expected to be approved this month, Bao told the online newspaper
VnEconomy.
The plan would call for the branch to implement a sustainable restructuring process,
addressing its organisation, network system and technology, as well as products and
services.
If Agribank Soc Son achieves a reasonable credit growth of around 10 per cent, it
would be able to lower its bad debts to 3 per cent during 2015-20. Increased
financial transparency would also help Agribank Soc Son manage its risks and
increase its financial capacity. Agribank Soc Son have annouced some targets:
+ Total capital: 3.647.854,36 (million VND) (increase 18% compared with 2014)
+ Outstanding loans: 1.496.972,5 (million VND) (increase 25% compared with
2014)
+ Outstanding bad debt: less than 3% out of total outstanding loans
+ The ratio of loans for rural development: 80% out of total oustanding loans

To achieve these targets, Agribank Soc Son plans to focus on some key tasks:
Diversify deposit products combined with flexible and appropriate interest rate
policy; allocate capital mobilization targets associated with remuneration policies to
maintain capital stability and growth; regularly check the behavior of teller, improve
communication skills to save time for customers, build a reasonable policy to
improve customer service for regular customers and potential customers.
26

For credit activities, along with giving solutions to solve difficulties for local
enterprises, Agribank Soc Son gives priority for credit growth in the agricultural
sector, rural development, manufacturing enterprises; while enhancing the quality of
credit control, regularly inspect loans to ensure that funds are used for the legitimate
purposes and effective uses.
In addition, the branch also focuses on the development of utility products and
services, perform cross-sell products and services, give incentive allowances and
discounts for regular customers; broadcast brand name by local media such as
newspapers, television, radio to promote products and services, sponsor for social
security programs, offer passbook for the poor, raise fund for education
development and health service.
Moreover, the branch also pay strong attention to the effectiveness of Marketing
activities to find out the appropriate forms of communication to promote sales of
services and products along with social welfare activities in ordre to expand brand
name of Agribank.

3.1.2. Human resource management plan


Conference of Executive Committee of Agribank stated 10 key tasks in the next
period. Among them, there are three important urgent tasks: Implementing planned
contest "Agribank Talented Officer 2014" in each branch since August to 10/2014;
Together with implementation of Social Security; motivate solidarity among
employees to overcome challenges and accomplish target performance.
In near future, Agribank Soc Son tries to complete four key tasks assigned by
Agribank Vietnam and motivate officers and employees to participate in training
class so that they can improve their professional skills contributing to effectiveness
of branch’s operation.
For the application of information technology in operation, the branch plan to
implement various activities such electronic data storage; preparing for
computerization project of managing work systems, training program, managing
wage and labor.
Because of economic crisis, Agribank Soc Son along with Agribank Vietnam will
continue downsizing to ensure the wage and compensation policies in favor of
27

employees and Agribank’s operation. After overcoming economic crisis, the branch
will recruit more staff based on the demand of each department. Therefore,
Agribank Soc Son will keep the number of employees at 107 until June, 2015. After
that, Agribank Soc Son will recruit one position to fill in a vacancy because of
retirement and try to increase the number of employees to 115 by the end of 2015 to
meet the target capital per employee of branch. Moreover, Agribank Soc Son also
try to be independent of Agribank Vietnam in recruitment and selection activities to
make decision itseft.

3.2. Recommendations proposed to Agribank Soc Son


According to the actual situation of recruitment and selection activities at Agribank
Soc Son and the human resource plan in the next period, I have some
recommendations proposed to Agribank Soc Son:

3.2.1. Pushing up computing training program for officers and employees


Because of the fact that Agribank try to computerize the management systems, the
first urgent task should be building training courses for officers and employees at
Agribank. There are many transactions which occur everyday and much of
information which needs to be stored, so the electronic programs will help to
facilitate the data storage activities. It seems to be quite difficult for many people to
change the habit of working with paper and old methods. Therefore, the role of
computerization shoul be propagated widely and deeply among employees so that
they can realize the effectiveness and efficiency when applying computerization.
They need to be given instruction to use new methods and get familiar with new
management system. The branch can send them to Officer Training School or hire a
computing expert to guide them to use new methods.

3.2.2. Concretizing job description


Agribank Vietnam in general and Soc Son branch in particular, is not really
successful in job description. In fact, many enterprises have to deal with this
problem. They just stop at describing job characteristics of each department and
ignore the detail of each position. The job description of each role requires
professional analysis from experts, Agribank Vietnam has invited some experts of
28

this problem to describe specific tasks of each employee. However, it seems not to
come into reality till now. It can not be denied that job description is a difficult task
of every enterprise, but if we can have solution for this, the Bank will accomplish
more successes. The Bank including Soc Son branch should apply job description
for each role in the organization like what the Chief accountant is responsible for
and how these tasks are completed, what an employee of HR department is in
charge of and how…Once this problem is solved, the job performance will be
higher and it will be easier for managers to evaluate results of each employee.

3.2.3. Diversifying recruitment sources


 Recruiting staff from colleges and universities :
In recent years, Agibank has not focused on this source of employer which tends to
promise for a higher quality workforce. Therefore, the company's officers should
organize more workshops on job-seeking from this source.
The branch should coordinate with the University to select the best students
participating in recruiting plan. Cooperation could begin with the junior and the
senior, who basicly have the professional skills and knowledge, enabling them to
make use of this knowledge. With coordinating, organizing seminars for students, or
giving talented students priority, will help the company attract more talented people
who can work for long-term, also reduce the recruitment expenses. Therefore, using
this source of human resource can be a wisdom idea.
 Employment agencies:
Currently, these agencies specialize in providing outsourcing services to recruit
senior management positions, positions which are difficult to find suitable person
(headhunter services). With some advantages such as: Professional service, fast,
convenience. Enterprises can find the appropriate senior staff through this source to
create fair employment opportunities to all candidates, a way to avoid unfair
assessment and lack of objectivity.
 Recruiting from internal sources:
When recruitment begins with internal source, the branch should have a clear policy
to avoid unfair problems among employees. The person who is not selected will be
given priority in the next cycle of recruitment so that he/she will feel comfortable to
29

continue the job and try their best to be promoted next time. This source is also a
wisdom idea in case that the branch needs to fill in vacancies because of
transferring officers or someone who leave the job unexpectedly.

3.2.4. Diversifying ways of advertising recruitment information


Currently, the method of posting recruitment information on the branch’s website
and employment websites can attract more and more talented employees. However,
Soc Son branch has not built its own website, so the information cannor reach the
cadidates directly. Therefore, the branch needs to focus on this approach. With ads
on websites, employment information can quickly and easily reach candidates. The
recruitment information of the branch has always been designed as a general pattern
which are not attractive enough to the candidates. The branch needs pay more
attention to the design, presenting recruitment information clearly, attractively to
readers.
Overall, in the recruitment information on the recruitment website, the branch
should focus more on the content of introduction to Agribank and the branch so that
the company will promote its image to the employee. The company should provide
the incentive factors to attract candidates such as salary for that position, bonuses,
advancement opportunities, training opportunities ... As a result, the candidates can
make the decision correctly.
The company should also establish Facebook Fanpage to share information about
hiring, recruiting employees as well as the branch’s policy to be able to interact with
more candidates, increasing choice for talented employees.

3.2.5. Improving selection methods


 For multiple-choices tests: the branch needs to constantly change and update the
test bank with various content which fit with the job requirements.
 Interview: Interview questions given to the candidates should be concise, easy to
understand, create opportunities for candidates to present their opinions.
Interviewers should lead the candidates to the main point of the presentation.
 Besides the structured interview as common, the Bank should use various
interview techniques, such as:
30

+ Nondirective interview: The interviewer asks broad questions that allow the
interviewee a lot of latitude in answering. Nondirective interviewing can be used in
job interviews, marketing research, news reporting. Nondirective questions solicit
broader responses. Examples of such questions are: "What are your goals for the
next five years?" and "How would you boost our sales in the first six months on the
job?" The most common nondirective question is a simple "Tell me about yourself."

+ Situational interview: the interviewer should lead the candidates to some actual
situations that may occur during the working process, or place the applicant in a
conflict problematic situation where she or he has to make assessment and decisions
to resolve it. This interview technique not only check the speed of response to
questions but also check the ability of candidates to deal with challenges.

Depending on the position and recruitment goals, Agribank Soc Son should use
different ways to compare and make decisions accurately. There are some methods
to make comparison for different objectives:
+ The first way: just select the candidates who achieve success in their work, fulfill
the requirements of the postions they applied for . This method was used to recruit
officers and top managers, promote middle-level managers or higher and transfer
qualified staff between departments.
+ The second way: make decision through a comprehensive system to select the
candidates who meet the requirements about professional knowledge and skills ...
test results and interviews; synthesise results in order from top to the required
extent, the candidates who have results defined in this range will be selected . This
method used for recruitment and training when transferring staff; promotion of
middle-level managers back down; transfer of employees.
+ The third way: Analysing the results of group work related to ability of each
candidate. This method can be used for higher training.
Agribank Soc Son should pay more attention to the decision-making on selecting
low-level managers to ensure the criteria for exiting job and potential capabilities
for future promotion.
31

3.2.6. Innovating selection criteria


For the information given by Agribank Soc Son as well as Agribank Vietnam, we
can realize that the criteria system for recruitment and selection of this Bank has
remained unchanged for a long time. There are some of them which seem not to be
suitable any more. Agribank Soc Son can be an initiator in changing some criteria.
For example, the criterion for foreign language is level B and higher based on each
position. This should be changed to fit with the current trend and improve the
quality of staff and officers. Level B or C may not satisfy the job requirement of
each position. The officers should have ability to use English for special purposes,
such as English for major of Banking and Finance applied for Chief finance officer,
English for translation applied for staff of writing room or TOEIC certificate for all
staff as entrance criteria. Level B or C of English sometimes does not cover all the
skills needed for a specific position and the test bank may not be updated constantly.
That is why we need to diversify the requirements for foreign language. Moreover,
other criteria also need to be changed and updated to match with the higher
requirements of economy in which each bank has to deal with more competitors to
gain competitive advantages.

3.2.7. Evaluating recruitment results

The branch seems to ignore evaluating recruitment result while it reflects the
quantity and quality of new staff which directly relate to the business performance.
Therefore, in next period, the branch should evaluate the recruitment and selection
activities periodically, based on some index:
+ Total number of application forms for each recruitment season: This index
measures the degree of effective communication, the interaction between recruiter
and candidates, the number of records received may be due to the company's
reputation or good communication, possibly due to attractive jobs.
+ The percentage of candidates who meet the basic requirements in accordance with
company standards = Total number of candidates satisfying requirements/ Total
number of candidates participating in the recruitment.
32

If this index is high that means the branch inspires the core values to candidates
successfully. If the ratio is too low, it means that the branch has problem in
communicating with candidates about the criteria and job specifications.
+ Index of effective recruitment advertising:
Index of effective recruitment advertising = Total cost / total number of records
+ Recruitment time: the average amount of time from the point of approving the
recruitment plan to the point when the branch fulfills recruitment and selection
activities. This indicator forces the HR department to speed up the recruitment and
selection process to avoid delay in business plan of the Bank.

This method not only helps the branch to manage the quality but also the
improvement of recruitment and selection activities of human resource department.
Once they can control these indexs, they can build the solutions to strengthen the
operation of branch, find out the best choice to optimize the effectiveness of
recruitment and selection activities, save time and money for the branch in
particular and for the Bank in general.
33

CONCLUSION

Business activities are operated and controlled by human and that is the reason why
human resource is a core value of every organization from the smallest to the largest
ones. However, it seem not to be simple to select an effective workforce to meet the
requirements of a company. Therefore, recuitment and selection activities are
regarded as the starting point for success of human resource management.
Recruiting activities can include internal efforts, college hiring fairs, technical and
vocational events, and traditional newspaper advertisements. Based on current
needs of human resource and forecasts for future, a recruitment manager needs to
direct efforts toward the best option for recruiting the right candidates that requires
identifying knowledge and qualities the company seeks and desires in an employee
including the necessary skills and knowledge for the position itself, such as a
specific degree or certification, and the desired personal qualities, such as a
preference to hire employees with good moral and ethical standards. The actual
recruitment and selection activities at Agribank Soc Son have been reflected in this
report so that we can undersatnd more about human resource management in a
bank.
It is impossible to avoid all mistakes due to the lack of information, experience and
analysis skills. I would like to receive comments from my teachers and friends to
help me complete this report.
Finally, I would like to thank Agribank Soc Son enabling me to do my internship
there and thank Mr Ho Tuan – Head of Human resource department who gives me
materials and instructions to write this report. I want to thank my supervisor, Ms
Phuong Dung for her instructions.
34

REFERENCES

1. Raymond A. Noe . . . [et al.], 2004, Fundamentals of human resource


management —4th ed.
2. Vietnam Bank for Agriculture and Rural Development, 2003, The system of
institutions, part 12
3. Vietnam Bank for Agriculture and Rural Development, 2007, Decision No. 188/
QĐ/HĐQT-LĐTL on regulations of recruitment and selection activities
4. Vietnam Bank for Agriculture and Rural Development, 2007, Decision No.1377
/ QĐ/HĐQT-TCCB on regulations in organisation and operation of each branch
5. Vietnam Bank for Agriculture and Rural Development, 2012, Decision No.1015
/QĐ-HĐTV-TCCB on amendments of Decision No.1377 /QĐ/ HĐQT-TCCB
6. http://agribank.com.vn/92/828/library/annual-report.aspx
7. http://www.doko.vn/luan-van/hoat-dong-huy-dong-von-o-ngan-hang-no-ptnt-
soc-son-thuc-trang-va-giai-phap-328594
8. http://en.wikipedia.org/wiki/Vietnam_Bank_for_Agriculture_and_Rural_Devel
opment