ASSIGNMENT 1 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

NGUYỄN LÊ TRẠNG
Student Name Student ID GBD210645
NGUYÊN

Class GBD1009 Assessor name TRẦN THỊ HỒNG NHUNG

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Table of content

1. Introduction to report ........................................................................................................................6

2. Introduction about the company ...................................................................................................6

2.1. Subaru’s background ..................................................................................................................6

2.2. Subaru’s mission and vision .....................................................................................................7

2.2.1. Subaru’s vision ......................................................................................................................7

2.2.2. Subaru’s mission...................................................................................................................7

2.3. Objective .........................................................................................................................................7

3. HRM strategy .........................................................................................................................................7

3.1. Industry of Subaru .......................................................................................................................7

3.2. External environment ................................................................................................................8

3.2.1. Economic factor ....................................................................................................................8

3.2.2. Social factor ...........................................................................................................................8

3.3. Internal environment .................................................................................................................8

3.3.1. Customers ...............................................................................................................................8

3.3.2. Suppliers ..................................................................................................................................9

3.3.3. Employees ...............................................................................................................................9

3.4. HRM strategy .............................................................................................................................. 10

3.4.1. The definition of HRM ...................................................................................................... 10

3.4.2. HRM strategic of Subaru ................................................................................................. 10

3.4.2.1. Employees’ motivation ............................................................................................ 10

3.4.2.2. Personal development ............................................................................................ 12

3.5. Relevance of HRM strategy, business objectives, and industrial characteristics13

3.6. Pros and cons of current HRM strategy, how HR function contributes to
sustainable performance ................................................................................................................... 13

3.6.1. Pros of current HRM strategy ....................................................................................... 14

3.6.2. Cons of current HRM strategy ...................................................................................... 14

3.6.3. The HR function contributes to sustainable performance ................................. 15

4. Subaru’s digital transformation ................................................................................................... 15

4.1. The definition of digital transformation ........................................................................... 15

4.2. The DX of Subaru ....................................................................................................................... 16

4.3. Influence of Subaru’s DX on the company’s HRM changes ......................................... 19

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 4.4. The relationship between business strategy and HRM orientation........................ 20

5. HRM practices .................................................................................................................................... 21

5.1. The talent acquisition strategy ............................................................................................ 21

5.1.1. Employer branding ........................................................................................................... 21

5.1.1.1. The definition of employer branding ................................................................. 21

5.1.1.2. The planning of employer brand for Subaru ................................................... 21

5.1.2. Recruitment ........................................................................................................................ 22

5.1.2.1. The definition of recruitment ............................................................................... 22

5.1.2.2. The planning of recruitment for Subaru ........................................................... 23

5.1.3. Selection ............................................................................................................................... 24

5.1.3.1. The definition of selection ..................................................................................... 24

5.1.3.2. The planning of selection for Subaru ................................................................. 25

5.1.4. Onboarding ......................................................................................................................... 25

5.1.4.1. The definition of onboarding ................................................................................ 25

5.1.4.2. The planning of onboarding for Subaru ............................................................ 26

5.2. The relevancy of talent acquisition proposals in DX .................................................... 26

5.3. The strengths and weaknesses of HRM in relation to creating sustainable

organizational performance and achieving business objectives ......................................... 27

6. Conclusion ............................................................................................................................................... 28

7.References................................................................................................................................................ 29

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Table of figure

Figure 1: Subaru's logo ...........................................................................................................6

Figure 2: Maslow's pyramid ................................................................................................ 11
Figure 3: EyeSight: commitment to the stereo camera (Source: Subaru Corporation) 16
Figure 4: Fusion of stereo camera and AI (Source: Subaru Corporation) ...................... 17
Figure 5: Driver Monitoring System (DMS) (Source: Subaru Corporation) ..................... 18
Figure 6: Development of driver assistance features (Source: Subaru Corporation) ... 18
Figure 7: Automatic Collision Notification (Source: Subaru Corporation) ...................... 19

Table of table

Table 1: Subaru's overview ....................................................................................................7

Table 2: Benefits and drawbacks of internal recruitment ............................................... 22
Table 3: Advantages and disadvantages of external recruitment .................................. 23

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 1. Introduction to report
This report supports Subaru's HRM in digital business transformation. It will emphasize
finding outstanding talent with a thorough understanding of digital transformation and
the market for the company. The main objective is to develop a talent acquisition
strategy for the Subaru company. The main body of the report includes an overview of
the SUBARU organization, the company's name, industries, vision, and mission
statement. Furthermore, the report examines the link between the company's goals
and objectives, industry dynamics, and HRM strategy. Digital transformation and its
impact on corporate HRM will be covered. In addition, this report recommends a talent
acquisition strategy, focusing on the specific tasks of employer branding, recruitment,
and candidate selection. Finally, evaluate the advantages and disadvantages of the
talent acquisition plan in improving the organization's long-term performance, and
accomplishing financial goals.

2. Introduction about the company

2.1. Subaru’s background
Subaru is known as a global
transportation manufacturing company
with two main business segments:
automobiles and aircraft.

In 1917, Subaru was started as Nakajima

Aircraft Company. By 1953, the
company's automobile business was
growing strongly, which motivated the
business to start a new beginning called
Fuji Heavy Industries. The company has
produced cars with innovative designs
and is highly appreciated. This is a
statement about the breakthrough of
the company's auto business.
Figure 1: Subaru's logo
In 2017, the company changed its name
to Subaru Corporation, a business that
creates new technological value and thereby strengthens relationships with customers.
In addition, Subaru develops and manufactures a variety of aircraft. Subaru is Japan's
leading aerospace enterprise.

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 Company name Subaru Corporation
Ebisu Subaru Bldg. 1-20-8, Ebisu, Shibuya-ku,
Head Office
Tokyo 150-8554
Phone number +81-3-6447-8000
Website https://www.subaru.com/index.html
President Tomomi Nakamura
Table 1: Subaru's overview

2.2. Subaru’s mission and vision

2.2.1. Subaru’s vision
According to Subaru Corporation (2021) in Mid-Term Management Vision “STEP”
Processing Briefing, the company's vision is to become a powerful brand in the market
by putting the customer first. In addition, the company tries to make every effort every
day to meet the diverse needs of society and fulfill the company's social responsibility.
Thereby making Subaru a company trusted by customers around the world and
resonated.

2.2.2. Subaru’s mission

The mission of Subaru is to offer consumers cars that are reliable, safe, and fun to
drive. With a dedication to quality and excellence in all facets of the company, Subaru
seeks to be a recognized and trusted brand (Subaru,2023).

2.3. Objective
According to Subaru Corporation (2021) in Mid-Term Management Vision “STEP”
Processing Briefing, Subaru has very high business goals. The company aims to
maintain and expand its market share, specifically continuing its efforts to capture 5%
of the market share in the key US market. The company aims for industry-leading
margins (8%). Subaru targets an ROE of at least 10% and an equity ratio of 50%.

3. HRM strategy
3.1. Industry of Subaru
Subaru operates in two business areas: automobiles and aerospace (in which,
automobiles are the core business of the company). The business is a manufacturer,
repairer, and sale of automobiles and their components. The company always tries to
create new technological values for its products. In addition, Subaru also cooperates
with Toyota Motor Corporation to create cars with better and better quality.
In addition, Subaru is also in the aerospace business. The industry dates back to 1917.
Subaru develops, manufactures, repairs, and provides technical support for multi-
purpose helicopters, more than 15 models of drones, and flight simulators. Subaru is
responsible for the production of the center wing of the Boeing 787 and the center wing
of the Boeing 777 & 777X.

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 3.2. External environment
3.2.1. Economic factor
According to the statistics of the World Bank (2021), Japan's GDP per capita income is
39,313 USD in 2021. This number has decreased compared to 2019. The increase in the
number of Covid-19 cases and the heavy impact of the pandemic has impacted the
world economy in general and the Japanese economy in particular. On the other hand,
the GDP per capita growth rate in 2021 has reached 2.1 %, an increase of 6.3%
compared to 2020 (World Bank, 2021). This has shown that the Japanese economy is
gradually recovering and growing again.

According to Trading Economics (2023), in December 2022 Japan has the highest
inflation rate in 32 years. This affects the revenue of companies in Japan as inflation
reduces the purchasing power of the currency. Global interest rates increased sharply,
businesses had to pay many loans with high-interest rates.

3.2.2. Social factor

The World Bank (2022) estimates that there be roughly 125 million people living in Japan
as of 2022. It has the 11th largest population in the world. The percentage of people
that are working age is 61%. Japan has long struggled with issues related to an aging
population and a decreasing labor force. The population of the nation is aging at the
quickest rate in the globe. The administration is trying to fix this problem.

The intellectual level of the Japanese is very high. Because the government values
education highly and makes investments in it. Literacy rate almost 100% (World Bank,
2022).

Japan boasts some of the most distinctive cultures in the world, from tradition to
modernism. This culture has a strong feeling of national identity and distinctive traits.
The Japanese have a very unique concept that becomes a model for the world: loyalty,
discipline, solidarity, sharing, religious reconciliation, and noble military spirit (Đức,
2022).

3.3. Internal environment

3.3.1. Customers
Subaru Corporation always strives to put customers first in its business activities. The
company collects customer feedback on the quality of products and services. In
addition, Subaru's staff is trained to provide the best customer service.

Subaru always sincerely answers customers' questions and difficulties. The company
discloses the various methods of contacting its customers. Comments and comments

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from customers will be received and transferred to relevant parties. Subaru uses those
contributions to improve the quality of products and services and make
recommendations.

According to the Subaru Sustainability Report (2021), the company has expanded its
customer satisfaction survey. The Group has received high ratings from more than 80%
of customers. Subaru takes the customer's perspective very seriously and will work
together to further improve it.

3.3.2. Suppliers
Subaru works very closely and has its principles. According to Subaru Corporation in
SUBARU Supplier CSR Guidelines (2021), the group selects suppliers of goods and
services not only based on products, but also from many perspectives including
corporate governance, and the social environment.

Establishing principles with suppliers is what the company hopes to both promote and
expand business activities.

Firstly, suppliers must ensure the safety and quality of the materials. Suppliers must
provide materials that are easy to use, environmentally friendly, etc. In addition,
suppliers need to provide appropriate information regarding materials and services.
Therefore, the company can answer and provide information about the product to
customers. Moreover, the materials need to be safe, meeting the safety regulations in
each country and region. In particular, Subaru always requires suppliers to provide
quality materials.

Secondly, suppliers must ensure human rights and labor issues. Avoid discrimination,
respect human rights, ban child labor, ban forced labor, etc.

Thirdly, Suppliers must ensure environmental issues. They need to carry out
environmental management, chemical management, resource-saving, etc.

Next, companies and suppliers must comply with regulations on the management and
protection of confidential information.

Finally, Subaru will disclose information on the financial position and results of
operations to its suppliers in a timely and appropriate manner. The company strives to
maintain and develop relationships and create trust with suppliers.

3.3.3. Employees
According to Subaru Corporation (2021), the Company owns 36,910 employees. Subaru
always creates better opportunities for employees to develop their careers, creating
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opportunities for employees to learn and improve their professional knowledge. In
addition, the group focuses on health and safety for employees. They have developed
a Basic Health and Safety policy. In particular, Subaru established the Central Health
and Safety Committee to provide health care services to employees. This is to protect
employees from occupational accidents, diseases and to improve the working
environment. To help employees balance work and life, the company always provides
a comfortable and dynamic working environment, diversifying working style options, ...
Monthly, Subaru publishes an internally shared journal to promote employee
motivation and communication.

3.4. HRM strategy

3.4.1. The definition of HRM
According to Armstrong and Taylor (2020), HRM is a comprehensive, integrated, and
cohesive strategy for the work, promotion, development, and welfare of employees in
organizations. The goals of HRM are:

- Support the company to achieve its business goals through the development and
exploitation of human resources (HR) integrated with business strategy (strategic HRM).

- Ensure the development of a high-performance work culture

- Ensure the company has talented people with good skills and engagement. Create a
positive relationship between management and employees. Create a comfortable and
trusting workspace.

- Encourage the use of an ethical approach to human resource management.

Strategic human resource management (Strategic HRM or SHRM) is the formulation of

policies, strategies, and human resource development to create the competencies and
behaviors of employees so that the company can achieve its business goals (Armstrong
and Taylor, 2020).

3.4.2. HRM strategic of Subaru

3.4.2.1. Employees’ motivation
Employees play an extremely important role in the company's business activities. Every
company has its strategy to motivate its employees. These strategies mainly focus on
Maslow's hierarchy of needs. Subaru managers have proven the effectiveness of their
methods of motivating their employees by becoming a famous corporation.

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 Figure 2: Maslow's pyramid

According to Desmet and Fokkinga (2020), human must first satisfy basic physiological
needs, then move on to higher needs of security and safety for themselves. Next,
people want social needs. This need is based on mental and emotional factors.
Furthermore, people want the need to be respected, loved, and recognized for their
achievements. In the end, people want to prove themselves, follow their dreams,
hobbies and bring good values.

Subaru Corporation has applied Maslow's hierarchy of needs in human resource

management. According to Subaru Corporation (2021), the Group always meets the
physiological needs of employees (eating, drinking, transportation, clothing, ...) with
salary and bonus schemes, and dormitories for employees away from home or foreign
employees, uniforms for employees. Secondly, Subaru puts the safety and security of
its employees first. The Group has developed a Basic Health and Safety policy. In
addition, the company also established the Central Committee for Safety and Health to
protect employees from occupational accidents and diseases and improve the working
environment. In particular, the enterprise strictly manages the health of employees in
terms of physical health, mental health, and organizational health. Thirdly, Subaru
strives to meet the relationship and emotional needs of its employees. The Group
creates a healthy and comfortable working environment. From there, it will promote
collective cohesion and develop relationships. The corporation has launched Subaru
Communication Park on its network. This is a forum where employees in various
positions can communicate. Furthermore, the organization Subaru always cares for
and respects its employees. Enterprises understand the needs of employees and make
them feel the most special attention. Finally, Subaru always creates opportunities for

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each employee to express themselves. Opportunities for independent self-
development and learning opportunities for employees are focused on by the group.
From there, employees can give their best efforts, creating value for themselves and
the business.

3.4.2.2. Personal development

Subaru emphasizes supporting each group employee to embrace new opportunities
and challenges. The Group focuses on the development of each individual, giving them
better opportunities to perfect and develop their careers. In addition, the enterprise
always creates learning opportunities by the desired outcomes of employees. Through
individual development, Subaru will enhance the corporate value of the group (Subaru
Corporation, 2021).

According to Subaru Corporation in Sustainability Report (2021), in March 2022, Subaru

will establish a system and environment to support the development of each employee.
New training programs provide a variety of learning opportunities for employees to
develop skills appropriate to their qualifications.

The new training program includes:

- Philosophical Sharing Program: This program helps employees gain a deeper

understanding of Subaru's vision. It provides an opportunity for employees to share a
sense of belonging with Subaru. From there, each employee will try to act to achieve
the Group's vision.

- Vocational Training and Career Support: This program provides employees with a face-
to-face opportunity to face potential career paths face-to-face.

- Business Skills Support Program: All employees from ranks to general staff are
selected to support programs to develop business skills. The company always
encourages employees to choose programs that align with their goals, develop
strengths and improve weaknesses.

- Globally Focused Talent Development: In addition to improving their foreign language

skills, Subaru encourages employees to develop leadership skills and cross-cultural
cooperation to play an active role globally.

- Managerial Talent Development: The company develops management training

programs to create a generation of talented managers.

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 3.5. Relevance of HRM strategy, business objectives, and industrial
characteristics
Subaru is a great corporation when it comes to adapting and leveraging its strengths,
including using HRM based on industry characteristics and business goals. Human
resource is an important part of helping the company achieve its business goals. But
this is also a challenge that Subaru must be aware of and constantly strive for. Subaru's
HRM strategies are always responsive to employee needs. In addition, the Group also
promotes building a comfortable, positive, and friendly working environment. So it can
create value for employees and engage people. These things motivate and motivate
Subaru employees to create value for themselves and the business. Moreover, it helps
the company's business goals to be accomplished through HRM strategies.

Subaru's HRM strategies always emphasize talent development and training. Talent
plays a huge role in the corporation's development. Through personal development,
Subaru can enhance the brand's appeal in the marketplace and enhance corporate
value. This is also the Group's business goal. Therefore, the HRM strategy always sets
out training and skill development programs for employees. Through programs,
Subaru can train generations of highly qualified and potential employees. They will help
the company's business goals be met on time.

Based on industry characteristics, Subaru offers appropriate human resource

management strategies. Subaru's business is in the automotive and aerospace
industries. Therefore, every HRM strategy is related to the company's industry. The
company always recruits employees with qualifications related to automotive
engineering and aeronautical engineering. For management levels or other
departments, the enterprise selects suitable employees. The characteristics of the
automobile manufacturing industry, and the public aviation space are quite dangerous
and require good health. Therefore, HRM strategies always emphasize the safety and
health of employees.

3.6. Pros and cons of current HRM strategy, how HR function contributes
to sustainable performance
It can be argued that Subaru's HRM strategies are among the best and most effective.
Employees create value for the company and also expect to receive the right benefits
in return, so the company understands their psychology. The organization has been
successful in attracting and training talented people. However, HRM strategies can also
have downsides that make individuals decide to work at Subaru.

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 3.6.1. Pros of current HRM strategy
Subaru's human resource management strategy has many advantages, it is suitable for
the current situation of the company.

Firstly, Subaru has created a friendly, comfortable, and attractive working environment
for employees. When working in a modern environment and as expected of employees,
they will feel stimulated, have more creative inspiration, and be inspired to do better.

Secondly, Subaru's HRM strategies are focused on occupational safety and employee
health. Subaru realizes that the challenge of human resource management is not only
to stabilize the team but also to ensure that employees are always in the best condition
to devote themselves to work. The company's wellness programs have contributed to
improving business performance. Besides, it can also help to engage employees and
build camaraderie. From there, employees feel happier, and more secure and bring
more value to the company.

Thirdly, Subaru Strategies provides opportunities for employees to learn, train and
hone their skills. A strong staff is a team with good knowledge and skills. The company's
training programs allow employees to develop themselves, develop their strengths, and
improve on their weaknesses. From there, employees can confidently carry out the
company's projects, boosting productivity and efficiency more than before. Besides,
they get many good opportunities to develop themselves and have a good impression
of the company. So it builds employee trust and loyalty.

Finally, all HRM strategies create opportunities for people with disabilities and support
employees of the LGBT community. Subaru does not want to ignore talented people
whether they are people with disabilities or people in the LGBT community. The
company always tries to create an environment for people with disabilities to shine,
eliminating discrimination issues against the LGBT community. It has created an equal
working environment and motivated employees to work enthusiastically. In addition, it
also enhances the value of the business and builds a beautiful image in the eyes of the
public.

3.6.2. Cons of current HRM strategy

Besides the benefits Subaru receives, HRM strategies also have their drawback. Firstly,
HR strategies lack adaptability. Human resource management systems usually follow a
specific schedule and plan. But humans are not numbers or machines that can work
according to an existing program. HR strategies may work for one employee but not for
another. Secondly, the more HRM strategies Subaru builds, the more it costs. The cost
of developing policies on occupational safety, health, or working environment costs a

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lot. Finally, employee training strategies carry high risk. No one can guarantee that
training company employees will stay and work for them. The Company does not
guarantee that there is sufficient capacity and time to exploit employees to recoup the
training costs.

3.6.3. The HR function contributes to sustainable performance

According to ÇALIŞKAN (2010), research shows that there is a positive relationship
between HRM strategies and organizational performance. People are the main
resource of the organization and business performance largely depends on them. The
capacity of the staff is an important factor in ensuring the performance of the business.
Therefore, if the company develops and implements effective HRM strategies, it will
have a positive impact on the company's performance.

For Subaru Corporation, the HRM strategy can create a sustainable performance for
the company. Because they recognize the value that employees bring to the company.
Subaru focuses on building human resource management activities such as selection,
training, working environment, etc. to improve employee capacity. From there it can
help the company achieve higher performance.

Subaru's HRM strategies focus on training the talent that drives sustainable
performance. The Group recognizes that employees in the organization must have the
necessary competencies, knowledge, and abilities. Employee competence is an
important part of implementing business plans. In addition, the company is operating
in the 4.0 era, its business activities are also gradually applying a digital transformation
(including human resource management). Human resource management strategies
applying digital transformation make management work more efficient. Moreover, the
duties of employees are also easily performed when applying scientific technologies.
From there, it increases the performance of the business.

4. Subaru’s digital transformation

4.1. The definition of digital transformation
According to Schwertner (2017), digital business transformation is the application of
digital technologies to business areas and leads to a fundamental change in the way a
company operates. Successful digital transformation needs to go hand in hand with
company restructuring and business process optimization in line with business
strategies. Effective digital business transformation requires solid planning and
leadership with the right skills, knowledge, and experience. The company builds a
digital transformation strategy to improve customer experience, increase efficiency,
improve innovation, improve decision-making, and transform businesses.

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 4.2. The DX of Subaru
The development of scientific technology makes the automotive industry fluctuate in
all business activities (manufacturing, management, planning, distribution to dealers,
...). Subaru sees consumer demand shifting from goods to experiences. Therefore,
Subaru's DX strategy uses data and digital technology in business operations
(production, management, ...) to create the best customer experience.

For production, Subaru has applied digital transformation to automotive

manufacturing and aerospace. It has created a new wave in the automotive industry in
Japan and around the world. EyeSight 4.0 driver assistance technology is the invention
that makes Subaru different when applying AI technology. Subaru researched this
invention to support customers' enjoyment and peace of mind when using the product
(Subaru Corporation, 2022). Specifically:

- EyeSight's commitment to the stereo camera:

According to Subaru Corporation (2022), Subaru Eyesight uses a stereo camera and a
unique recognition algorithm. The camera records everything it can see with high
precision in three dimensions. From there, Eyesight can analyze and grasp the shape
of objects in front, measure their distance, calculate their speed, and determine their
position. It also excels at detecting line shapes and predicting their movements.
Therefore, the stereo camera is enough to help the driver with information gathering
and effective judgment (Figure 2 is a concrete demonstration of the stereo camera
EyeSight technology).

Figure 3: EyeSight: commitment to the stereo camera (Source: Subaru Corporation)

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 - Fusion of stereo camera and AI:

Subaru holds the performance of EyeSight by applying AI judgment to its

recognition. This combination takes EyeSight to the next level. It helps the driver to
detect the controllable areas of the car (Subaru Corporation, 2022). For example: If
a person is driving on a snowy road and the curb is completely obscured, AI can
recognize the drivable areas and find a driving route. In particular, AI technology can
find a way to dodge and control the car when the car in front suddenly brakes. From
there it will reduce traffic accidents and the level of danger (Figure 3 is an illustration
of the combination of stereo camera and AI).

Figure 4: Fusion of stereo camera and AI (Source: Subaru Corporation)

- Driver Monitoring System (DMS):

Subaru Corporation (2022) states that Subaru introduced a driver monitoring system in
2018. The technology can recognize individuals. In particular, it also detects driving
behavior (inattentiveness, drowsiness, ...) to warn the driver. Subaru will continue to
research and develop driver assistance systems (DMS) to enhance the customer
experience (Figure 4 shows how to apply Subaru's driver assistance system).

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 Figure 5: Driver Monitoring System (DMS) (Source: Subaru Corporation)

- Development of driver assistance features:

According to Subaru Corporation (2022), Subaru is combining EyeSight with map

locators and radar both front and rear. This development aims to perfect driver
assistance technologies, specifically autonomous driving. For example, Technology will
assist the driver in changing lanes, decelerating automatically around turns, assisting in
traffic jams, etc. (Figure 5 illustrates the development of driver assistance features).

Figure 6: Development of driver assistance features (Source: Subaru Corporation)

- Advanced Automatic Collision Notification (AACN):

Subaru is rolling out an enhanced automatic collision warning feature in the Japanese
market. In the event of an accident, this system will automatically report the collected
data to the center. This algorithm is used to estimate the rate of death or injury to
assess whether an ambulance should be called (Subaru Corporation, 2022) (Figure 6
frames the enhanced automated and notification system workflow).

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 Figure 7: Automatic Collision Notification (Source: Subaru Corporation)

4.3. Influence of Subaru’s DX on the company’s HRM changes

Digital transformation is growing strongly and it affects all business activities including
human resource management. For Subaru, the adoption of digital into business
operations has transformed HRM strategies. Specifically:

Firstly, Subaru uses technology to recruit, retain, attract, and develop human resources.
Subaru puts recruitment information on its website to attract more talent around the
world. Traditional Subaru recruiting practices have been superseded by scientific
developments. Digital transformation helps HR managers with in-depth and
comprehensive analysis of employee performance levels; greater efficiency in
recruitment, such as replacing manual resumes and screenings, automatically
completing such tasks in seconds; transparency and better access to previously closed
data sets, real-time employee monitoring; Automate trading tasks.

Secondly, HR managers and employees in the digital era have not only professional
knowledge but also technology knowledge (Feech, 2022). Managers in particular and all
employees of Subaru in general need to know how to access, analyze, evaluate, and
share information as well as how to apply new information technologies. In addition,
they need to consider technology as a companion in the process of working at Subaru.
They need to meet the skills and enhance their skills in digital transformation, and at
the same time must adapt to the change of the digital environment.

Thirdly, Digital Transformation changes the way people are managed in the company.
Subaru has digitized employee information for easier management.

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Finally, digital transformation changes the way employees train and work. Subaru
employees can work remotely, from home or at different locations without the need to
visit the company. Modern technology has revolutionized teaching techniques, such as
showing work-related videos, online courses, computer-based learning, and reading
through soft copies.

4.4. The relationship between business strategy and HRM orientation

Reidy (2020) believes that human resources are the most valuable asset of a company.
Companies that know how to link HRM to business strategy will gain a competitive
advantage in the market. Buller and McEvoy (2012) state that the alignment between
human resource management activities and business strategy as a way to help improve
performance. If an enterprise changes its business strategy, it must adjust the direction
of human resource management. This combination will reduce operating costs, help
innovation, improve quality, and have a positive impact on company performance (Lee
at all, 2010).

In the 4.0 era, digital transformation affects the company's business strategy. According
to Schwertner (2017), applying science and technology to build new business models
can lead to higher profits, higher competitive advantages, and higher performance.
Companies transform their business processes, operations, and workforce innovation.
Bengtsson and Bloom (2017) point out that digitalization has greatly affected human
resources. Digitization will make HR management processes more agile and efficient.

It can be seen that the company's business strategy is closely related to human
resource management. With the development of science and technology, this
connection has become closer.

Subaru applies digital transformation to transform the customer experience. The

application of technology has changed the company's business objectives. The
corporate strategy has changed, and the direction of human resource management has
also changed. In addition to developing internal human resources in each division,
Subaru also plans to create a dedicated IT department. Subaru is focused on training
internal workers, artificial intelligence scientists, and engineers to transform the car
manufacturing process. Subaru's human resources must be talented with a deep
understanding of technology and data analysis.

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 5. HRM practices
5.1. The talent acquisition strategy
5.1.1. Employer branding
5.1.1.1. The definition of employer branding
Employer branding is a strategy of all companies around the world. It is related to the
company's efforts to build and develop a good image of the business through the eyes
of current and future employees that this is a desirable place to work (Armstrong and
Taylor, 2020). Employer branding plays a very important role in the company's human
resource management. Through employer branding, the recruitment strategies of
enterprises can be highly effective. Talented people always have their requirements
and needs commensurate with their values. Building a strong employer brand, and
spreading values that are superior to competitors will help the company become one
of the top employers and win the recruitment competition. When building a strong
employer brand, enterprises can reduce recruitment costs. Because talented
candidates will come and run for themselves. In addition, a strong, distinctive, and
outstanding employer brand will help businesses retain top talent – especially young
talent. A famous business, employees will be very proud to be a part of the company.
Combined with special benefits such as modern offices, and health care programs, ...
will help increase satisfaction higher, leading to better work performance. Few
employees turn down the ideal workplace.

5.1.1.2. The planning of employer brand for Subaru

In the digital era, Subaru needs plans to build the strength of its employer brand in the
market. Here are the suggested plans for Subaru to build its employer brand:

Firstly, Subaru needs to understand the value the business brings to current and future
employees. Subaru claims that it will bring happiness to all employees and customers.
Create a compelling promise and brand for talent. Subaru continues to create a healthy
and comfortable working environment, helping to strengthen the relationship between
employees and between employees and businesses. Subaru should invest in a work
environment with modern technology, entertainment facilities, and wellness programs
for employees.

Secondly, Subaru should promote policies on rewards, benefits, and policies to support
employees' retirement, childbirth, etc.

Thirdly, Subaru enhances the quality of the management team and the way they
manage the organization. Subaru's staff management team needs to be highly
specialized, care about employees, and know how to effectively manage employees. In

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particular, the management team must also apply digital transformation to the way
they manage employees.

Finally, Subaru needs to strengthen training programs and create development

opportunities for all employees.

5.1.2. Recruitment
5.1.2.1. The definition of recruitment
Finding, tracking, identifying, and attracting potential candidates is the human resource
recruitment process. The recruitment process helps the company find the most
suitable candidates with the skills and expertise for current and future vacancies
(Muscalu, 2015). Recruiting personnel is important for the company. It helps businesses
to supplement the missing human resources, find talent and help businesses develop
more. According to Armstrong and Taylor (2020), there are two sources of recruitment:
internal recruitment and external recruitment. Most companies recruit personnel from
these two sources to find and fully exploit talent.

- Sources of internal recruitment organization:

According to Muscalu (2015), recruit internal resources by promoting employees to

vacancies through company monitoring and evaluation; rotate employees from one job
to another when the company properly assesses the employee's ability; recruit
employees through internal referrals; retired employees can continue to support the
company.

Internal recruiting has advantages that help the company, but it also has its
disadvantages. Table 2 will list its benefits and drawbacks:

Benefits Drawbacks
- Reduce costs and recruitment time for - A less diverse workforce, lacking new
businesses ideas when the difference in knowledge
- Employee promotion will motivate between generations of employees.
employees to work - Conflict will occur between the employee
- Understand employee strengths and who is not promoted and the employee
weaknesses who is promoted
- Employees don't take time to adapt to - Employee favoritism and bias issues
the company's environment and culture - The rotation of working positions will
- Exploit the sides and abilities of make it difficult for employees to adapt to
employees. new roles and new tasks.
Table 2: Benefits and drawbacks of internal recruitment

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 - Sources of external recruitment organization:

When internal resources cannot provide potential and suitable employees for the
positions, the organization recruits human resources from external sources. External
recruitment must be well-planned and well-coordinated (Muscalu,2015).

For external recruitment, the company can recruit at social media channels such as
Facebook, Instagram, and Twitter, ... These media channels have high traffic volume
and are a great place to find talent. The company can recruit on the company's website,
universities, and colleges. The company can also recruit human resources through
agencies and job centers (Armstrong and Taylor,2020).

Table 3 will list the advantages and disadvantages of external recruiting:

Advantages Disadvantages
- Access to large amounts of talent from - Cost and time to recruit talent
anywhere. - Unable to find out the employee's
- Build a diverse team with many strengths and weaknesses in a short time
talented, creative and innovative - Employees take a long time to adapt to
employees. the company's culture
- Minimize internal competition - Competition among employers is
increasing
Table 3: Advantages and disadvantages of external recruitment

5.1.2.2. The planning of recruitment for Subaru

In the battle for talent, Subaru needs to utilize the strength of its internal workforce and
try to attract talent from the outside. To help the company achieve its goals, Subaru
should apply internal and external recruitment.

For internal recruitment, Subaru needs to carefully monitor and evaluate employees
for promotion. The company must ensure that the employee has sufficient knowledge,
and skills and is fully suitable for the position. Regarding retired personnel, Subaru has
policies to invite them to experience sharing programs for employees. In this 4.0 era,
expertise and digital transformation are different between the previous generation and
the next generation. The younger generation is lacking in work experience. Therefore,
Subaru invites retired personnel to the positions of advice, and sharing experience is
the most appropriate. Referred candidates need to have tests and interviews to test
their abilities. The entire internal recruitment process needs to be selective, monitored,
transparent and fair. This will help the company choose good employees, and avoid
time loss and internal conflicts.

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For external recruitment, Subaru needs to invest in recruitment plans. The candidates
not only have professional knowledge but also are pioneers in applying scientific
technology to their work. The job description needs to fully describe the nature of the
job, benefits, and professional requirements of the employee and especially not violate
the employee's democratic rights. Recruitment information will be updated in the
recruitment section of the company's website. In addition, Recruitment Information will
be published on social networks such as Facebook, Twitter, ... Subaru can link with job
centers or agencies to recruit talent. But the company has to self-examine and interview
closely.

5.1.3. Selection
5.1.3.1. The definition of selection
According to Gatewood, Feild and Barrick (2015), before businesses open job offers to
candidates, it is necessary to collect and evaluate information about candidates to find
talent called "selection". The selection process is bound by the market, legal and future
interests of the organization and individuals.

Armstrong and Taylor (2015) state that the purpose of the selection process is to select
the person with the most potential, suitable for the job position of the company.
Selecting a good candidate can help increase the overall performance of the
organization. On the other hand, the talent acquisition process is time-consuming and
costly for the organization. If you choose the wrong candidate, it will cause a great loss
to the company. Depending on the industry and institutional characteristics of each
business, they can select talent through many different steps. But the selection process
will focus on testing and interviewing to evaluate each candidate.

For the test, the business earns valid and reliable evidence of their level of ability,
intelligence, character, qualities, aptitudes, and achievements.

According to Armstrong and Taylor (2020), companies can use structured interviews
and unstructured interviews. The structured interview is a method of data collection
based on prepared questions for candidates. This method helps businesses collect
complete information about candidates. But it is not flexible, the scope is limited. The
unstructured interview has questions that are out of order and not predetermined. The
interviewer asks open-ended questions and based on the candidate's answers to
conduct the interview.

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 5.1.3.2. The planning of selection for Subaru
In the 4.0 era, Subaru must choose the right people to help the company grow. The
basic requirements for employee selection are as follows:

- Maintain a good attitude in the face of work pressure

- Flexible, agile, reliable, honest

- Physical and mental health

- Understand the automotive industry

- Knowledgeable and tech-savvy

Subaru's proposal for recruiting employees is as follows:

- In the first round, the company uses a candidate tracking and screening system
(Applicant Tracking System - ATS). ATS can screen out suitable candidates for the
company through keywords. Next, Subaru tests the candidates for IQ and EQ. Finally,
candidates undergo health and drug testing.

- In the second round, Subaru will conduct candidate interviews in the form of face-to-
face and personal interviews. Interviews are a combination of structured and
unstructured interviews. Interviews will focus on the ability to handle situations,
communication skills, and creativity.

- In the third round, Subaru will test the candidate's knowledge application practice, and
ability to use science and technology. This test helps companies find skilled candidates.

- In the final stage, the company will negotiate job opportunities for candidates and
issue job offers

5.1.4. Onboarding
5.1.4.1. The definition of onboarding
According to Ziden and Joo (2020), onboarding is an important process in welcoming
new employees to an organization. It affects employee motivation, job satisfaction, and
organizational commitment. Bauer (2004) states that there are two types of
onboarding: informal referrals and formal referrals. An informal referral is when an
employee learns about a new job without organization. Formal introductions are the
responsibilities and procedures an organization uses to help new employees adjust to
their new job in the business.

According to Nalband, Jadhav, and Salunke (2017), there are four core aspects (four C's):

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- Clarification is something related to the new employee understanding the job
requirements, the criteria for completing the task, and the company's expectations of
the new employee.

- Compliance is a company that communicates regulations, rules, laws, and policies to

new employees.

- Culture is the company standard for new employees.

- Connection refers to the establishment of a relationship between individuals when

joining an organization to be effective.

5.1.4.2. The planning of onboarding for Subaru

Subaru uses a formal onboarding process that covers all policies and procedures to
help new hires adjust to the culture and job.

Firstly, Subaru needs to give new hires a warm welcome. All departments greet new
employees and lead new employees to introduce the company. The company can place
small gifts in the workplace of new employees, which can increase the good impression
of the new employees on the company. In the first stage, Subaru assists new employees
to complete the necessary procedures.

Secondly, Subaru educates new employees about the rules and regulations. The
company creates the most favorable conditions for them to adapt and understand the
company culture. Building connections among employees is paramount. It will bridge
the gap between old and new employees. Also, it helps in increasing the productivity of
the company.

Thirdly, Subaru will organize training and orientation for new employees. This process
will include an on-the-job or comprehensive training program. It will help new
employees understand their roles and responsibilities. In addition, it provides them
with the opportunity to develop their skills and increase their knowledge.

Finally, Subaru has always supported new and former employees. HR must adopt a
mindset that increases the motivation of new hires. Set smart goals so employees know
what to expect. Reviews are conducted monthly to recognize the new hire's efforts and
help improve his or her performance.

5.2. The relevancy of talent acquisition proposals in DX

The labor market has a great influence on a company's human resource management
planning. When the characteristics of the labor market are diverse and rapidly
changing, companies must have the right strategy. The characteristics of labor demand
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include education level, experience, and knowledge... The labor market is faced with
many competitors for new talents. With digital transformation, Subaru needs people
with comprehensive knowledge and skills to achieve the company's goals. Therefore,
the talent acquisition plan proposed above is of great help to Subaru's recruitment and
selection process.

The proposed recruitment and selection plan is reasonable. In terms of digital

transformation, changes in human resource management planning are critical for
Subaru. The industry at Subaru is complicated. When it comes to numbers, it gets more
complicated. Therefore, human resource management programs must ensure talent
retention and attract large numbers of talent. The proposed HRM fits perfectly.

5.3. The strengths and weaknesses of HRM in relation to creating sustainable

organizational performance and achieving business objectives
According to the General Statistics office of Vietnam (2022), Vietnam's population has
more than 99 million people, of which the labor force accounts for 68.5% and increases
by 0.8% compared to 2021. The report on the labor market situation of the General
Statistics office of Vietnam (2022) states that the labor force who have been trained
from the "beginner" level or higher accounted for about 13.5 million people, accounting
for 26.2% and increasing by 0.1% compared to 2021. Besides, the rate of loss in 2022 is
22.1%, down from the previous year. Thus, the Vietnamese labor market still has many
positive aspects. The labor force, the number of people with jobs, and the proportion
of people with occupations increased. The unemployment rate is falling. This is the
bright spot of Vietnam's labor market in 2022.

Rapid economic growth increased digitization, and automation force Vietnam to adapt
and look to the future. Thus, the Vietnamese government is providing access to skills
and knowledge for workers. Vietnam prioritizes the development of highly skilled
workers. The government has taken steps to strengthen workforce training to meet
labor market needs. Vietnam continues to strengthen cooperation between
businesses, universities, vocational training, and cooperation with international
organizations that can help develop more skilled human resources. The Vietnamese
government considers science and technology a top national policy.

Currently, Subaru is not yet operating in Vietnam. The company in Vietnam is only an
agent to sell products. If Subaru applied the above human resource management
recommendations to this labor market, there would be pros and cons:

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Pros:

- The appeal of an international employer brand. Subaru is a leading automobile

manufacturing company in Japan and the world. Vietnam labor is very eager to work in
a well-known company like Subaru. Subaru is a professional and reliable environment
for human resources in Vietnam.

- Human resource management strategies are more likely to retain employees. Subaru
has always been committed to creating an ideal working environment for its
employees. They focus on offering attractive benefits and diverse incentives to their
employees.

- Sustainability in the context of Vietnam. Vietnam is a country with strong economic

potential in the future, and this is a period when Vietnam is experiencing strong growth.

Especially since Vietnam chose neutrality to bring about growth. For foreign investors,
economic stability and a sense of security are of paramount importance.

Cons:

- Competition for human resources in Vietnam is becoming increasingly fierce. Vietnam

promotes international integration and attracts foreign companies. Foreign companies
not only have to compete with each other, but also compete with domestic companies.

- Difficulty finding high-quality human resources. Despite Vietnam's strong economic

development, the proportion of skilled human resources is low. In addition, Vietnam is
a developing country that has applied many scientific and technological achievements.
However, the proportion of human resources with knowledge and proficiency in the
use of technology is low.

6. Conclusion
According to the research above, HRM is a crucial component that must be
incorporated into a business in order to achieve long-term success. The study also looks
into the value and role of human resource management as a company expands.
Implementing HRM is an intentional process that changes over time. It may be
examined in a number of areas, such as people management, hiring and selection
procedures, incentive structures, and employee motivation staff. HRM makes sure that
a business has a proactive approach to work, which results in better planning and
utilization of the work as well as greater prospects for employee progress.

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