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Quy Asm2 5035

The document summarizes Vinamilk's digital transformation plan which focuses on transforming its traditional business model. Key aspects of the plan include expanding online sales and establishing Vinamilk Mart stores. The plan also involves digitizing business processes using ERP and CRM systems. To support this, Vinamilk's HR department needs to recruit more young digital talent and provide training to staff on customer service, IT skills, and foreign languages. The success of the plan will depend on motivating employees through rewards, learning opportunities, and addressing any issues that arise.

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0% found this document useful (0 votes)
210 views

Quy Asm2 5035

The document summarizes Vinamilk's digital transformation plan which focuses on transforming its traditional business model. Key aspects of the plan include expanding online sales and establishing Vinamilk Mart stores. The plan also involves digitizing business processes using ERP and CRM systems. To support this, Vinamilk's HR department needs to recruit more young digital talent and provide training to staff on customer service, IT skills, and foreign languages. The success of the plan will depend on motivating employees through rewards, learning opportunities, and addressing any issues that arise.

Uploaded by

Bùi Thu Hà
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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You are on page 1/ 19

ASSIGNMENT 2 FRONT SHEET

Qualification BTEC Level 4 HND Diploma in Business

Unit number and title Unit 3 Human resource management

Submission date Date Received 1st submission

Re-submission Date Date Received 2nd submission

Student Name DO THI QUY Student ID GBH200759

Class GBH1008 Assessor name LE THU HANG

Student declaration

I certify that the assignment submission is entirely my own work and I fully understand the consequences of plagiarism. I understand that
making a false declaration is a form of malpractice.

Student’s signature

Grading

P4 P5 M4 M5 D2 D3
 Summative Feedback:  Resubmission Feedback:

Grade: Assessor Signature: Date:


Internal Verifier’s Comments:

Signature & Date:


Contents
1: General introduction ...................................................................................................................................... 4
2: Introducing the digital transformation plan..................................................................................................... 5
3: The influence of internal and external factors on HRM supports the development of the digital
transformation plan ........................................................................................................................................... 7
3.1: Influence of internal factors...................................................................................................................... 7
3.2: Influence of external factors:.................................................................................................................... 9
4: Propose a motivational plan to engage employees ..................................................................................... 10
4.1: Reward .................................................................................................................................................. 10
4.2: Learning and development .................................................................................................................... 12
4.3: Evaluate the impact of the HRM proposal and make recommendations ............................................... 14
5: Conclusion .................................................................................................................................................. 15
References: ..................................................................................................................................................... 16
1: General introduction
To survive and develop, businesses must constantly innovate and create. Digital transformation is one of the important trends, marking the
transition of many businesses. Successful businesses often embrace and apply digital transformation early. As a human resource
administrator of Vinamilk, the proposals on the plan to recruit talents and apply digital transformation have been presented previously. The
digital plan involves digitization of business process, digital skills of employees, digital channels for interaction with clients. These factors
will support Vinamilk's plan to change customer experience and transform business model. However, in order to optimize the results of the
plan and retain talent, the human resources department needs more strategy. In this report, the human resources administrator of Vinamilk
will summarize and present the digital transformation plan. The influence of internal and external factors on the digital transformation plan,
compensation regimes, training, learning and development plans of employees is also the main content of the report. Besides, the
assessment of influencing factors, strengths, weaknesses and suggestions for remedial measures will also be presented.

About Vinamilk:

Vinamilk was established in 1976 on the basis of taking over 3 dairy companies. Up to now, Vinamilk has more than 40 years of brand
positioning and development. Vinamilk has become a familiar brand for many people. Vinamilk has more than 200,000 products on the
market: liquid milk, condensed milk, cheese, ice cream, yogurt,... (Vinamilk, n.d.). Vinamilk is holding an important position in the dairy
processing industry. Vinamilk holds more than 54.5% market share of liquid milk, 40.6% market share of powdered milk, 33.9% market
share of drinking yogurt, 84.5% market share of edible yogurt and 79.7% market share of condensed milk in Vietnam. Vietnam (Vinamilk,
nd). With a long-term and humanistic vision to become the leading belief symbol in Vietnam about nutritional products, Vinamilk always
takes the right steps. Vinamilk wishes that Vietnamese people will always be healthy and intellectual. That is why Vinamilk's mission is to
bring nutrition to the community with all love and responsibility. Core values are affirmed by Vinamilk in 5 words: integrity, respect, fairness,
ethics and compliance. Vinamilk always satisfies customers' needs, constantly improves, ensures quality, respects business ethics and
obeys the law (Vinamilk, n.d.). Vinamilk's business model is focusing on distribution to agents, supermarkets, and retail stores nationwide.
Vinamilk distributes directly to all provinces in Vietnam and internationally. Currently, Vinamilk has expanded to 46 units, including 1 head
office, 5 branches, 16 factories, 14 cow farms, 8 subsidiaries, and many distribution agents (Vinamilk, n.d.).

2: Introducing the digital transformation plan


Vinamilk is one of the leading enterprises in digital transformation. Vinamilk is known as an enterprise with a traditional business model,
through product distribution to agents, distributors, supermarkets, and stores. Therefore, to make progress in business, the digital
transformation plan will focus on transforming the business model. Vinamilk expands sales and product distribution to online sales sites.
There are many customers who cannot go out, go to the store and buy Vinamilk products, they can order through facebook, Shopee,
Lazada, Tiki, .. Sales trends will focus on using livestream, New retail format, utilizing online and traditional. Vinamilk set up its own branded
supermarkets such as: Vinamilk Mart. There will provide all Vinamilk's products, cleanly decorated, with their own highlights that make up
the Vinamilk brand. This plan has been implemented by TH Truemilk and is very successful. TH's revenue and profit numbers increased
exponentially. Revenue has reached VND 7000 billion, faster than the route that TH has created (Tuyet, 2019).Vinamilk implements a
digital transformation plan to increase interaction, experience, increase utility and promote customer trust. Moreover, it also helps Vinamilk
develop and achieve business goals. Regarding sales and distribution activities, Vinamilk uses an ERP management system. The system
will help Vinamilk handle many problems such as tracking and managing warehouses, tracking labor, production costs, processing orders,
etc. This is a system that has been used by many large enterprises. FPT is the place of origin and has many imprints with the ERP
management system. ERP gives FPT 83 sets of accounting books, corresponding to 83 accounting companies. ERP accompanies many
TABMIS projects with the Ministry of Finance, with Petrolimex, Vingroup, Vinasoy,... (Nguyen, 2022). Regarding machinery and farm
equipment, Vinamilk combines automation applications to increase productivity and ensure quality. Vinamilk's milk factory in Binh Duong
reaches 800 million liters of milk per year. Modern bacteriostatic production technology, removing 99.9% of bacteria. The robots
automatically transfer goods to the warehouse, with a capacity of 27,168 shipments. Vinamilk is considered a modern factory and meets
the needs of the market (fumee, 2021).

Digital transformation also changes HR plans. Vinamilk has increased the number of young employees who are creative, grasp trends and
know about technology. Vinamilk requires a sufficient level of foreign language and computer skills. These are important skills for
participating in digital transformation and globalization. Therefore, HRM had to change its recruitment plan. Besides recruiting experienced
candidates, the human resources department will also recruit young potential candidates, grasping trends and good information technology.
This has caused Vinamilk's personnel structure to change, adding a lot of potential young employees. The recruitment process also applies
online, allowing candidates to participate from anywhere. This is time-saving and effective even during the Covid 19 pandemic. With digital
transformation to change business models, expand distribution, establish Vinamilk Mart, human resources department. will recruit more
sales staff, shift leader, and warehouse manager so that Vinamilk Mart can have enough human resources to operate.

In terms of improving customer experience, the human resources department will continuously train and test the customer care department,
recruit more customer care staff to be able to meet the needs and solve it as soon as customers need it. . Vinamilk always receives and
listens to customer feedback, using multiple online channels to provide an integrated experience for customers. Vinamilk uses the CRM
system in its customer management activities. CRM simply means doing things related to strategy, using software to retain and understand
customers. Through CRM, Vinamilk will get specific data related to customers, helping Vinamilk understand customer needs and
psychology. The CRM software system works like Microsoft's Outlook program to allow email transactions, information analysis for
management, and to-do tracking. Sales department can shorten sales cycle, improve sales. Marketing department improves response rate
of marketing campaigns and customer service department improves customer service productivity with CRM (misa, 2020).
In short, Vinamilk has approached and applied digital transformation early. The digital transformation plan will help Vinamilk to thrive in the
dairy processing industry. Moreover, these are strategies to learn from large, successful enterprises, which will help the plan increase its
feasibility and effectiveness.

3: The influence of internal and external factors on HRM supports the development of the digital transformation plan
3.1: Influence of internal factors
*Number of employees:

People are always an important factor in a business. People are a factor that strongly influences the competitiveness of enterprises.
Organizations focus on building their core resources (Dubra, 2010). Vinamilk plans to expand its market on e-commerce platforms such as
Lazada, Shopee, Tiki, etc. Vinamilk will need a large number of employees to support the digital transformation process and plan. HRM
activities will revolve around recruitment to provide enough personnel. Vinamilk is an enterprise that has been operating for many years, a
large enterprise with a team of about 10,000 qualified employees (Vinamilk, n.d.). This will be an advantage for the HR strategy. With a
large number of employees, all strategies and plans offered by the company have enough human resources to do. HRM campaign will be
easier to supply and arrange personnel to each suitable position. HRM will recruit graduates of E majors - Commerce, Marketing, and
Digital Marketing will be given priority. Besides, HRM will have to change the training plan to suit each level. group of employees and must
be divided into several batches to conduct training.

In addition, Vinamilk deployed the Vinamilk Mart system to increase the good experience for customers. A large number of employees can
help new Vinamilk Marts open but still operate well and generate stable revenue. The company's sales staff can switch to Vinamilk Mart to
take charge of the work. This helps employees develop in a variety of environments and makes the company easy to manage.
*Staff qualifications:

Currently, Vinamilk owns a team of 10,000 employees with many different qualifications, mainly from colleges, universities, and above. For
specialist positions, Vinamilk requires a university degree or higher and includes experience requirements. Factory employees and sales
staff have lower requirements (Vinamilk, nd.). This directly affects the HRM strategy of the enterprise. HRM strategy will have to change to
match the company's recruitment purpose. Highly qualified candidates will influence how HRM needs to establish a plan to retain talent.
Good quality of employees is a strong point for HRM as these employees will be suitable for the digital transformation process. Highly
qualified employees will easily adapt to the change of digital transformation plan. With a plan to use ERP management software technology,
the level of staff will determine the speed of coverage and effectiveness of the plan. Employees with qualifications, experience and the
ability to learn quickly and catch up with social trends will be directed by Vinamilk to implement the plan in advance. Vinamilk is successful
not only thanks to its business strategy and financial strength but also its human resources (Tran, 2020).

*Enterprise structure:

Vinamilk's organizational chart includes General Meeting of Shareholders, Board of Directors, General Director, Directors of departments
(Vinamilk, n.d.). These are the key agencies to set goals and long-term development plans for Vinamilk. Leaders who set the goal that
Vinamilk will be at the forefront of innovation and creativity will continue to hold the position of a place with a desirable working environment.
HRM will have to plan recruitment, training, and remuneration to achieve the goals and direction of the corporate governance apparatus.
HRM will hire both young and experienced candidates, possibly from another country. This will help the company have a multi-cultural
environment, diverse in terms of perspectives and opinions according to each age group. With the digital transformation plan, success will
be achieved thanks to the combination of the creativity of young employees, the experience and certainty of long-term employees. The
campaign will be successful and meet the needs of customers.
3.2: Influence of external factors:
*Environment :

The Covid-19 pandemic has negatively impacted all aspects of society. The epidemic situation lasted for more than 2 years, causing the
labor market to turn upside down. The unemployment rate in the third quarter of 2021 was 3.98% while normally only 2%, up to 14.7 million
people (UK, 2021). However, Vinamilk has turned difficulties into opportunities. During the pandemic, Vinamilk still maintains its style and
flexibility in business. In the first quarter of 2020, revenue reached VND 13,241 billion, and profit after tax reached VND 2,597 billion.
Vinamilk's success is also reflected in maintaining the effective operation of all units, ensuring income for nearly 10,000 employees (Van,
2021). During the pandemic, consumers' demand for milk increased sharply, increasing by 10% in urban areas and 15% in rural areas.
The plan to develop the material area and the "Green Farm" eco-farm system is still being implemented on schedule. Unlike other
businesses that are having a headache because of maintaining their position, Vinamilk will expand to recruit more employees to be able
to meet the needs of consumers. Therefore, HRM will recruit more production staff, conduct training for employees to use automatic
machines and technology to operate the factory. HRM will recruit young, dynamic, and agile employees to shorten the training time to use
machines. Moreover, the plan to transform the business model, expand Vinamilk Mart, and open for sale on the e-commerce floor will
require more products than before. Therefore, HRM needs to recruit a large quantity but still have to ensure quality. The Covid environment
makes people not want to go out to buy goods. There are even areas where there is a ban on going out. As a result, online ordering will
increase. The plan to sell products on the online market will hit the needs and desires of people during the epidemic. That is also the
success of the plan when combining factors with the right market share at the right time.

*Law:

All businesses are affected by the law. Businesses that want to do business and develop long-term must comply with the law. Vinamilk is
a company with many years of development and always complying with the law (Vinamilk, n.d). Employees at Vinamilk are covered by
accident insurance 24/24 and all benefits according to the provisions of the Labor Code will be guaranteed. The Labor Code has a strong
impact on Vinamilk's policies, requirements, and contract terms. The Labor Code stipulates that the probationary period must not exceed
60 days for jobs requiring professional or technical qualifications from college or higher. The Labor Code stipulates that normal working
hours should not exceed 8 hours/day and not exceed 48 hours/week (thuvienphapluat, 2019). Vinamilk's HRM has planned to train new
employees within 1-3 weeks depending on the nature of the job. Regarding the insurance regime, ensuring the rights and safety of
employees, Vinamilk also strictly complies with the law. Vinamilk's HRM must have a plan, there are principles and provisions in the contract
that must not be violated, contrary to the provisions of the Labor Code. The law is a basis for HRM to operate and follow. For the DX plan,
Vinamilk expands its business model to the e-commerce platform, opening Vinamilk Mart will be managed by the provisions of the
Enterprise Law. The digital transformation plan needs to be implemented, licensed, and must not appear poor quality products, affecting
consumers.

4: Propose a motivational plan to engage employees


4.1: Reward
According to Armstrong, M (2020), a reward system is needed to ensure that employee contributions are recognized. The design of the
reward plan aims to motivate employees, satisfy the needs of the organization, and operate fairly. Reward plans and processes recognize
people according to their performance or contribution (Armstrong, 2020). Reward measures have existed for a long time and are
increasingly necessary for businesses (Chiang & Birtch, 2011). The purpose of human resource management is to meet the needs of
employees, customers, suppliers, shareholders, etc. The bonus plan will help improve business performance, shape employee behavior,
and develop. There are two types of rewards, financial and non-financial. Vinamilk is a company that flexibly applies both monetary
incentives and non-financial honors to attract employees. Vinamilk has always kept its position in the top of places with a desirable working
environment. In 2017, Vinamilk rose to the number 1 position of the top 100 best places to work in Vietnam (Vinamilk, n.d.). Employees at
Vinamilk are allowed to work in a good and creative environment and participate in training sessions. Vinamilk has a policy of bonus money
for employees, employees are entitled to share a part of the company's profits depending on the situation (Vinamilk, 2020). Employees at
Vinamilk are entitled to a salary even during public holidays and Tet holidays. Every year, each employee will receive 13 months' salary
depending on each job position. There are many incentive programs such as vacation, insurance, discounts when buying the company's
products. Those are the motivations that help employees try harder.

During the covid 19 epidemic, the difficult situation led to some workers having to work very hard to stay in the city. Vinamilk has made
decisions on plans for digital transformation, opening more farms, upgrading machines to give employees more job opportunities. In
addition, Vinamilk fully equips employees with masks, hand sanitizer, antibacterial spray, etc. to ensure the safety of employees. Vinamilk
uses both forms of reward to give employees a lot of motivation to contribute, from which both parties can benefit. However, Vinamilk does
not expect employees to use bad methods to win rewards or only work because of rewards. Vinamilk needs enthusiastic and dedicated
employees for the common purpose and mission of the business.

More importantly, at Vinamilk, the voice of employees is highly valued. Employees are entitled to give opinions and Vinamilk will listen and
absorb. Vinamilk organizes contests both to find talents and to absorb the contributions, creativity, and direction of employees. When
requests and aspirations of employees are recognized and answered, the relationship between employees and the business becomes
more sustainable and closer. When employees and businesses have the same voice and are ready for a common goal, Vinamilk has made
great progress. Vinamilk not only increased sales and profits but also received recognition, awards, and international reach.

HRM continuously sets up campaigns to motivate employees in the company. Instead of rambling recruitment, causing financial costs,
HRM will establish a more appropriate reward policy to stimulate and find talent in the internal human resources team. Moreover, this also
helps to increase the percentage of employees who stay with the company for a long time. With a digital transformation plan, businesses
need creativity from employees. That reward policy is what stimulates employees to be creative and constantly make a difference. From
there, there will be a wave of competition among employees to deserve to be rewarded.
Rewards will make employees more motivated to work. The conversion plan needs enthusiastic and dedicated employees. The criteria for
employees to be rewarded can be linked to the work of the digital transformation plan. With limitations such as opening for sale on e-
commerce floors and Vinamilk Mart, the company can set KPIs for employees. Employees who achieve or exceed KPIs will be rewarded
to a degree. In addition, employees are not allowed to adhere to principles in selling and dealing with customers. It is the motivation for
employees to sell and increase revenue for the organization. The benefit of the organization, increasing the good customer experience
with the business is the goal of the digital transformation plan.

4.2: Learning and development


The process of learning and developing is very important for employees in the enterprise. Learning and development are understood as
the process of ensuring an organization have a skilled workforce. This is achieved through corporate experiences, events, learning, and
coaching programs (Armstrong, 2020). The primary goal of a learning and growth strategy is to provide an environment in which everyone
learns and thrives.

On-job training

On-the-job learning is the mental actions and processes in the work-related, work-related process that lead to a change in knowledge
(Bering & Doornbos, 2003). On-job training and self-development naturally when employees learn useful things from the learning process.
Every year, Vinamilk organizes a training program for employees to improve their qualifications and skills. It is a necessary job and it is
also the duty of managers. Employees will quickly recognize the change if attached to the practice process. On-job training helps HRM
better, reduces the number of employees leaving the company, and cuts some unnecessary costs. Employees not only learn from their
colleagues in the company but also gain knowledge from speakers and experts invited by the company. However, on-the-job training has
the disadvantage of narrowing the employee's horizons. Employees are not exposed to the new environment, reducing their ability to adapt
to the environment. In some cases, too much on-job training makes employees bored and tend to leave the organization. The on-job-
training program greatly supports Vinamilk's digital transformation plan. For employees to apply the ERP software of the digital
transformation plan, Vinamilk organizes practical training and practice sessions. When employees can develop a digital plan, the
organization does not need to outsource human resources, avoiding several negative issues and saving costs.

Off-job training

Off-job training is the organization of sending employees to other businesses, organizations, or locations far from the workplace so that
employees can learn and make progress. This type of training helps employees work more effectively, being exposed to many different
cultural environments. Vinamilk not only cooperates with many brands in the same industry, but Vinamilk also cooperates with a variety of
brands: VietNam Airlines, Chr. Hansen Denmark, KiDo, ..Vinamilk choose to send employees to partner companies to study, practice, and
accumulate more knowledge. Employees can understand the work culture, learn good things to bring back to the business. Vinamilk also
has training sessions, hires experts to teach practical knowledge outside the business. This approach benefits employees from a broader
and more realistic understanding. HRM could put more emphasis on internal linking. Besides, the organization should also note the
disadvantages of this method. When employees are exposed to a different environment, it is more likely that employees will leave the
organization. In the digital transformation plan, Vinamilk cooperates with Kido with the desire to develop a wider and increase customer
experience. Therefore, Vinamilk can send employees to KiDo to practice. This not only increases the experience and acquires new
knowledge for Vinamilk employees, but also helps KiDo get more help. Two brands can work together to create a successful digital
transformation campaign.

E-learning

During the Covid 19 pandemic, businesses have deployed online learning via Zoom, GG Meet, Teams, etc. With the epidemic situation
still complicated, Vinamilk organized
training courses through GG Meet. This form helps Vinamilk save costs and helps employees save time. Staff only need to sit at home and
turn on the computer to be able to participate in the lesson. Moreover, this form helps the organization to connect with experts from abroad
conveniently. Besides, this form will not work if the employee is not serious and the organization cannot control the employee's performance
and progress. Online learning easily makes employees bored because it is theoretical, not practical. Both methods have a positive effect
on Vinamilk. It is a strategy to increase experience, knowledge, and motivation for employees effectively. Currently, Vinamik is the leading
dairy company in Vietnam. However, there are many competitive brands like TH ready to take Vinamilk's position. Therefore, the knowledge
of employees and the strength of the organization will be a strategy for Vinamilk to be competitive in the market. Employees after being
trained will have a better understanding of the job, have more skills, and are especially motivated to stick with the organization. Employees
will accompany the organization to achieve common goals. Especially with a brand that is always innovating and regularly launching new
products like Vinamilk, employees need to be flexible, responsive, and catch up with trends quickly. Vinamilk's digital transformation plan
aims to expand sales through e-commerce platforms: Shopee, Tiki, Lazada,... This plan will benefit from employees participating in the
training program. created online by Vinamilk. Vinamilk organizes training sessions related to technical knowledge, online sales trends, and
customer care. From there, it will increase revenue, increase the coverage of new products and solve customer problems immediately.

4.3: Evaluate the impact of the HRM proposal and make recommendations
The application of smart strategies will continue to be a lever for Vinamilk to go further. Look at FPT's combined financial and non-financial
reward system to see the ingenuity that needs to be learned. As for the honor event, FPT is an experienced enterprise and has had
monumental events honoring many deserving employees. Honoring and rewarding motivate employees to be timely motivated when they
have achievements. FPT has titles such as FPT Technology Officer, For the career of FPT/CTTV, Excellent Cultural Officer (applicable to
employees with 10 years of seniority or more), Emulation title (for individuals/ Collectively participate in emulation movements such as
iKen, Digital Transformation, OKR, etc. (chungta, 2020). Those are titles that require effort and creativity to achieve. The honoring ceremony
was held grandly but still had the warmth of the community. That is the atmosphere, working culture environment that most employees look
for. The award categories are publicized with transparent and clear conditions for employees to set work goals. On such occasions, staff
will make every effort to participate in the honoring ceremony. From there, the performance increases, the company will thrive. After the
honoring ceremony, employees will feel their efforts are worth it and will always make more effort. According to a survey by FPT, employee
engagement with the business increases markedly year after year. That is the result of FPT's policy of focusing on people. Vinamilk and
FPT are both large enterprises, both putting people at the center and leading in the trend of digital transformation. Therefore, Vinamilk
learns and draws lessons from FPT's strategies to get better results. Organizational satisfaction and employee motivation are a combination
of many factors. The labor market in Vietnam is increasingly volatile, which is a challenge for organizations and HRM. HRM must be flexible
to best benefit the organization. It is forecasted that the labor market will gradually shift to contracting and paying wages by-product (Pham,
2022). However, at Vinamilk, HRM should not follow this trend. In short, businesses need to develop by the set goals, the mission that the
business pursues, and the digital transformation plan that will benefit the business in the long run.

5: Conclusion
In summary, the digital transformation plan on transforming business models and increasing customer experience has been re-presented,
focusing on analyzing the influences of internal and external factors and plans to promote them. motivation for employees. As a human
resource administrator of Vinamilk, the strategies given will help Vinamilk go further in the path of digital transformation and outstanding
development. In the future, Vinamilk will be even more successful thanks to its digital transformation plan and bring more profits to
businesses, benefiting consumers.
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