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A Case Study of Employees’ Performance at Prime Group Vietna

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A Case Study of Employees’ Performance at Prime Group Vietnam…. A Case Study of Employees’ Performance at Prime Group Vietnam.?ntroduction?ackground?istory?rime Group Co., Ltd was founded in 1999 in Hanoi. Originally named VinhPhuc Co., Ltd, the company had an annual capacity of two million sqm of ceramics. By the end of 2006, Prime Group had become one of the leading companies in Vietnam in ceramic tile production as well as a multi-functional group with five main areas of business: construction material, mining, transportation, real estate and trade.?s of 2013, Prime Group has become the leading group in producing construction materials in Vietnam (Tran, 2013). The company now employs 5,000 employees and has 10 factories in Vietnam that manufactures a broad variety of ceramics, granite, porcelain wall and floor tiles, decorative tiles, border tiles and also German clay roof tiles. Prime Group products are sold in many domestic markets and regions throughout the world. Prime Group is committed to unceasing innovation in technology and improving human resource quality so as to continually launch new lines of products with high standards and maintain the leading position in the construction material industry in Vietnam. The company also invests in sustainable development and contributes to the development of the community.?chievements ?rime Group’s thirteen-year path to its current position of a leading construction material manufacturing group in Vietnam owes itself to the company’s strategic focus on human resources. With an entrepreneurial and collaborative culture, Prime Group combined its internal strength derived from a united, well trained workforce with external help from an expansive network of organizations and unions. This approach resulted in a stable path to success for the company and a healthy business environment for the Vietnamese economy in general. Thanks to this strategy, Prime Group is now positioned as the top company producing construction materials in Vietnam (Tran, 2013). ?wards (since 2007) ?n 2010:?????Awarded the Banner in 2010 by the Prime Minister for being the leader of the emulation movement for business achievements.?????warded the Merit for achievements obtained from the emulation movement of good working and the establishment of a solid and strong labor union in 2010 by the Vietnam General Confederation of Labor (Decision No. 28/Q?TL??N dated 10/01/2011).?????warded the Merit for outstanding results of organization and performance of local cultural, sport and tourism in 2010 by the Ministry of Culture, Sport and Tourism (Decision No. 198/Q?VHTTDL dated 20/01/2011).??In 2009:?????Officially recognized for outstanding achievements of production and business and its active contribution to the development of the Vietnamese enterprise community by the Vietnam Chamber of Commerce and Industry (Decision No. 2840/PTM-T?T dated 29/09/2009).?n 2008:?????Awarded by the Government with the banner for being the leader in the emulation movement in 2008.?????warded by the Central Committee of Young Entrepreneurs Association of Vietnam with the Vietnam Gold Star Cup.?n 2007:?????Awarded the third labor medal by the President (Decision No. 1287/Q?CTN dated 08/11/2007).?????warded a merit from the Ministry of Industry and Trade dated 06/01/2008.?????warded a merit for the company’s compliance with the tax policy by the General Director of Directorate of Taxation with the (Decision No. 827/Q?CT dated 26/06/2008).?????warded a merit for excellent results in establishing, developing brand name and participating in the global economic integration by the National Committee of International Economic Cooperation (Decision No. 68/Q?UBQG dated 01/09/2008).?anagement System?rime Group has adopted a centralized management model that integrated a unified matrix to control and manage multiple aspects of operations such as Finance – Accounting, Procurement and Supply, Sales and Marketing, Production, Technology, Human Resource and Administration. The model includes:?.???Standardized system: Plan, policy, regulation, procedure, rules, standards and production norms are harmonized among Prime Group’s activities.b.???Planning system, policy and management system at company-level complies with the ISO 9000:2008 standard.c.???Prime Group applies Enterprise Resource Planning (ERP) in which realtime data are gathered in one place.?n general, Prime’s management system covers every aspect of business and renders a useful impact on the fulfillment of leadership, checks, assessment, and internal review. The system is continually and properly amended, supplemented and updated in order to meet the legal requirements, management system standards and leadership improvement.?owever, the management system of Prime Group is still facing some shortcomings and there is room for improvement:?????The unavailability of an orthodox, comprehensive and independently verified system;?????he unavailability of an official definition of validity and its scope between Prime Group and its member companies;?????lthough the promulgation and amendment is maintained, the control and internal audit process has been underperforming, which reduced the effectiveness of the system during its implementation;?????he online E-doc system is still limited while the update is not as expected; being only properly done at Prime Group level;?????he completion of ISO system for the member units is still under operation, to be finished at the end of September 2012;?????he decentralized system of the two relatively independent levels led to overlapping and inconsistency within the policy.?uman Resources ?ystematic Organization?rime Group directly manages the operation of its member companies, making decisions regarding recruitment, appointment, rewards, discipline and treatment of the board of directors as well as every management position of its member companies.?he scope of Prime Group’s management enables a unified solution to human resource cultivation, maximization and capability development as well as effective control of operation activities and fair treatment of employees at all levels.Human Resource Plan ?y clearly defining current working demands and investment plans for the near future, Prime Group and its member companies are able to maintain and control an effective human resource plan. For example, every position is analyzed from the beginning to the end to determine the pay rate. This approach helps optimize the time spent on the job, prevent strikes, enhance productivity and foster fair treatment.?o ensure harmonious human resource management throughout the entire group, Prime also utilizes a standardized analysis table, which serves as the basis for job description and procedures across its member companies.?he company establishes a unified system in order to define the human resources’ plan, recruitment, training and treatment plan as well as labor costs. This analysis table is the basis for the completion of job description and procedures as well as management norms. Besides, the company also implements thorough welfare and treatment policies which cover income, reward and welfare.?rime Group’s capability improvement program for management and employees focuses on three aspects: specialized knowledge, working skills and working attitude; and includes training courses together with communication and coaching programs. The company also has an appropriate policy on Environment, Health and Safety, and Labor Relations.???QUESTIONS : ?efer to Appendix 1.?espite all achievements of Prime Group Vietnam, problems in employees’ performance are still prevalent, such as:? The compliance of management in member companies is not good enough, ?The overall employee attitude and responsibility towards the company’s goals is rather low, ?Pro-activity towards self-improvement among employees falling behind external requirements of change, ?Employees’ contribution to the human resource plan being not as high as expected, and ?The effectiveness of work being rather low, resulting modest level of work results.?) Describe ONE (1) organizational development intervention that could resolve the problems listed above. (10 marks)?) Using Kotter’s Change Management Model, explain the details of the intervention process. (40 marks)?BusinessManagementHuman Resource ManagementSBM BSMH5133

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