Situation of recruitment of TOTO Vietnam Co, Ltd, recommendations to improve the quality of recruitment

INTRODUCTION 1. Rationale As we know, among a lot of resources in an organization, human plays the most important role in bringing success for the organization. In fact, an enterprise with strong financial resource just makes no sense without human resource. Hardly, any activity in an enterprise is left untouched directly or indirectly by people. Therefore, if making use of this resource, an enterprise will have big advantages to compete with other enterprises in international market. The first step to build a skillful team of employers is recruitment. Making a good recruitment process helps an enterprise have a reasonable organizational structure and be strong enough to survive and develop. On studying the recruitment process at the company, I decide to choose the research project “Situation of recruitment of TOTO Vietnam Co., Ltd; recommendations to improve the quality of recruitment”. 2. Objectives The objectives of the project are to analyze the situation of recruitment at TOTO Vietnam Co., Ltd; identify the existing problems and give some recommendations to improve the quality of recruitment. 3. Methodology The methodologies using to conduct this research project are analysis and synthesis materials, reports in the company; observation, and interviews for information. 4. Scope of the study Among many other aspects of human resource management, the study just focuses on the situation of recruitment at TOTO Vietnam Co., Ltd and gives recommendation to improve the effectiveness of recruitment at the company. 5. Structure of the study This research is divided into three main chapters: Chapter 1: Overview of TOTO Vietnam Co., Ltd Chapter 2: Current situation of recruitment of TOTO Vietnam Co., Ltd Chapter 3: Recommendations to improve the quality of recruitment of TOTO Vietnam Co., Ltd. CHAPTER I: OVERVIEW OF TOTO CO., LTD AND TOTO VIETNAM CO., LTD 1.1. Introduction to TOTO Co., Ltd 1.1.1. The establishment and development of TOTO Co., Ltd The company was incorporated in 1917 as Toyo Toki Company, Ltd., in Kokura, Japan, with assets of ¥1 million. The company's inception took place during the Taisho era, a time of great social and economic change during which the Japanese economy grew and expanded, and the number of urban dwellers increased. As the demand for new, modern, urban housing increased, so did the demand for TOTO's ceramic products, and in 1920 the company introduced to its production facilities Japan's first tunnel kiln--a long narrow kiln with products carried on conveyors. Throughout the company's first half-century, TOTO's fortunes would parallel the growth and activity of the Japanese economy as a whole. In 1937 it had finished construction of a second sanitary ware manufacturing facility in Chigasaki. By 1965, manufacturing had risen to nearly four times that of the mid-1930s. The average family consumed 75 percent more goods and services than before the war, and during the 1950s and 1960s, TOTO began manufacturing new products, such as bath fittings. In 1964 TOTO ventured into the modular products field for the first time when it began manufacturing prefabricated bathrooms. The company kept pace with increased demand for its products by opening four more plants in the Kokura area, a plant in Shiga, and another located near the Chigasaki plant, which had been built before the war. By 1970, when Japan was experiencing water shortages, TOTO had developed a toilet that used only 1.6 gallons per flush. That year, the company also began manufacturing enamel baths and changed its name from Toyo Toki to TOTO LTD. In the 1980s, under the leadership of Hiroshi Shirakawa and then Yoshine Koga, TOTO took giant strides in expanding both its product line and sales organization. New products, such as modular kitchens, vanity units, high-quality ceramic tile, water heaters, whirlpool bathtubs, high-tech toilets, "washlets" (microcomputer-controlled toilet seats with a warm-water washing feature), precision measuring tools, optical connectors, and magnetic discs contributed to explosive growth in sales in the 1980s. In 1986 TOTO established the Cera Trading Company, the function of which was to import and market other manufacturers' plumbing products in an effort to expand TOTO's total market share. Beginning with the company's first joint venture with Kawasaki in 1986, resulting in the formation of the Nihron Yupro Corporation, TOTO was by the end of the 1980s doing business in France, Germany, Indonesia, Korea, Thailand, Hong Kong, Taiwan, and the People's Republic of China. Further overseas expansion came in the 1990s. TOTO entered the U.S. market in 1990 through the formation of a sales company called TOTO Kiki U.S.A., Inc. In 1992 TOTO expanded its U.S. presence with the opening of a facility for the manufacture of water-saving toilets, which was located in Atlanta and was operated through a newly formed subsidiary, TOTO Industries (Atlanta), Inc. The success of this venture led to the addition in 1996 of a second plant to the Atlanta operations. Also in 1996 TOTO established a third U.S. subsidiary--TOTO U.S.A., Inc.--which was set up to coordinate the company's U.S. activities. China was a second market that TOTO targeted for significant expansion in the 1990s. In fiscal 1994 the Beijing TOTO Co., Ltd. was established to produce toilets and other sanitary ware. In June 1996 Nanjing TOTO Co., Ltd. began production of cast-iron bathtubs, and one month later TOTO Dalian Co., Ltd. began making faucets. In 1995 TOTO set up TOTO (China) Co., Ltd. to coordinate the company's overall activities in that nation. To further increase its line of new products, TOTO completed construction in 1991 of a new research and development laboratory at the Chigasaki plant. Among the new products that TOTO subsequently introduced was the Revlis (Silver) line of water-related products designed for senior citizens. The most important milestones of TOTO Co., Ltd: 1917    TOTO Ltd. was established as Japan’s first manufacturer of vitreous china ware1946    TOTO Ltd. started manufacturing faucets and fittings1958    TOTO Ltd. began manufacturing FRP bathtubs1970    TOTO Ltd. developed “Aqua-Electronics” and began manufacturing cast-iron bathtubs1977    TOTO Ltd. established P.T. SURYA TOTO INDONESIA as first overseas manufacturing company1980    TOTO Ltd. launched multi-function toilet seat “Washlet”1990    TOTO KIKI U.S.A. INC. was established 1996    TOTO China Co. Ltd. was established2002    Introduced NEOREST EX with Washlet integrated            TOTO Viet Nam Co. Ltd. was established2008    TOTO Asia Oceania Ltd. was established as Asian regional head office in Singapore. 1.1.2. The main products and subsidiary companies of TOTO Co., Ltd TOTO LTD is a leading Japanese manufacturer of plumbing products, including toilets, urinals, faucets, toilet seats, water heaters, and new ceramic materials; and system products, which include modular bathrooms, system toilets, modular kitchens, modular vanity cabinets, indoor and outdoor tiles, artificial marble countertops, and plastic and enameled cast-iron bathtubs. The wash-let is the TOTO product that brings about the most immediate and revolutionary change in the way you use the bathroom. Though traditionally being a business specializing in water-related household products, TOTO has further expanded its product line into non-household projects such as those for hotels and offices. The company's overseas operations include sales companies and branches in China, Hong Kong, Singapore, South Korea, Taiwan, the United States, and Vietnam; and manufacturing companies in China, Germany, Indonesia, Malaysia, the Philippines, South Korea, Taiwan, Thailand, and the United States. Despite TOTO's increasing global presence, the vast majority of its sales are generated domestically. Principal Subsidiaries In China: TOTO China Co., Ltd; Beijing TOTO Co., Ltd; TOTO Dalian Co., Ltd; Nanjing TOTO Co., Ltd In USA: TOTO U.S.A., Inc; TOTO Kiki U.S.A., Inc In Hong Kong: TOTO Kiki (H.K.) Ltd In Viet Nam: TOTO Vietnam Co., Ltd In Germany: TOTO Europe GmbH, TOTO Germany GmbH In Singapore: TOTO Asia Ocenia Pte .Ltd 1.2. Introduction to TOTO Vietnam Co., Ltd 1.2.1. The establishment and development of TOTO Vietnam Co., Ltd TOTO Vietnam Co., Ltd which was found in 2002 is one of the international subsidiary companies of TOTO Co., Ltd. It is a 100% Foreign Investment Company. The Company has two branches which are based in Hanoi and in Ho Chi Minh City. The following information is the details of the company: Company name: TOTO VIETNAM Co., Ltd. Address: Lot F-1, Thang Long industrial Park, Dong Anh, Ha Noi, Vietnam Tel: (84-4) 38811926 Fax: (84-4) 38811928 Date of Establishment: 1 March, 2002 Operation Start: March, 2004 General Director: Mr. Takeshima Koji Investment License, No. : 012043000171 Investment Capital: US$ 75,000,000 Legal Capital: US$ 40,000,000 Site Area: 72,023m2 Production capacity: 1,100,000 pcs annually No. of employees: 1,839 people from the local population and 9 foreigners Email: info@totovn.com Website: www.totovn.com The most important milestones of TOTO Vietnam Co., Ltd Receiving Investment License: 01 March, 2002 Ground Breaking Ceremony of 1st Factory: 27 August, 2002 Opening Ceremony of 1st Factory: 01 March, 2004 Oversea export: 15 March, 2004 Ground Breaking Ceremony of 2nd Factory: 28 February, 2005 Opening Ceremony of 2nd Factory: 08 September, 2006 Receiving Certificate: ISO 9001-2000: 05 April, 2005 JIS A5207 : 03 August, 2006 JIS B2601 :16 January, 2009 ISO 14001-2004 : 15 January, 2008 1.2.2. The production operation of TOTO Vietnam Co., Ltd Toto Vietnam Ltd., Co., the wholly Japanese first started to construct its second factory of porcelain sanitary wares in Thang Long industrial park with the total capital of 52 million US dollars. Situated in the area of 4.6 ha, the factory is considered to be the first ever in Southeast Asia with a modern manufacturing chain using plastic mould. Upon its operation in June, 2006, the factory delivered the average of 750,000 units annually, of which 50% exported to the United States, China and Japan. The plant helps increase TOTO Vietnam's capacity to 1.2 million products a year, meeting the demands for domestic market and for export Toto Vietnam first factory was started in 2002 and second factory was opened in 2006. The reason for setting up factories in Vietnam was due to the big target market and the diligent workers in Vietnam. Toto Vietnam spent a total of USD 70 million investments for setting up both factories in Vietnam, of which USD24 million was invested for the first factory and USD 48million was invested for the second factory. Toto Vietnam’s first factory is in charge of making plastic mould and they can make 2 to 3 times per day. The second factory is responsible for robots machines, Resin mounding purpose and they can make up to 72 times per day. Toto Vietnam focus more on exports as 60% of the goods are exported to other countries and 40% of the goods is produced for the domestic. Raw materials are obtained from Vietnam itself and from countries like Australia and China. The goods are produced in Vietnam and then shipped to East Asia Countries, USA and Germany. The most important milestones of TOTO Vietnam Co., Ltd: Receiving Investment License: 01 March, 2002 Ground Breaking Ceremony of 1st Factory: 27 August, 2002 Opening Ceremony of 1st Factory: 01 March, 2004 Oversea export: 15 March, 2004 Ground Breaking Ceremony of 2nd Factory: 28 February, 2005 Opening Ceremony of 2nd Factory: 08 September, 2006 Receiving Certificate: ISO 9001-2000: 05 April, 2005 JIS A5207 : 03 August, 2006 JIS B2601 :16 January, 2009 ISO 14001-2004 : 15 January, 2008 1.2.3. The lines of business of TOTO Vietnam Co., Ltd The main business lines of the company are machineries and equipments including: Manufacturing; selling and exporting all kinds of sanitary were and any other equipment related to sanitary ware; Importing spare parts for process of manufacturing and assembling all sanitary ware; Refining and exporting raw materials for production of sanitary ware; Export and import business (except for the items forbidden in accordance with the relevant laws and the items restricted in accordance with the international commitments in the treaties of which Vietnam is a member ). CHAPTER II: THE CURRENT SITUATION OF RECRUITMENT AT TOTO VIETNAM CO., LTD 2.1. Overview the recruitment process at TOTO Vietnam Co., Ltd Recruitment and selection is the process of identifying the need for a job, defining the requirements of the position and the job holder, advertising the position and choosing the most appropriate person for the job. Recruiting employees with the correct skills can add value to the company. Furthermore, recruiting workers at a wage or salary that the company can afford will help reduce costs. The following is the chart of recruitment process: Figure 2.1 Chart of recruitment process at TOTO Vietnam Co., Ltd Stage 1: Define requirements Stage 2: Attract potential employees Stage 3: Select right people Interviews Tests Job advertisement Job specification Job description (Source: Report of Human Resource Department of TOTO Vietnam Co., Ltd) The company often carries out Workforce Planning to find out how many workers and what types of workers are required. The workforce plan will establish what vacancies exist and managers then need to draw up a job description and job specification for each post. A job description is a detailed explanation of the roles and responsibilities of the post advertised. Most applicants will ask for this before applying for the job. It refers to the post available rather than the person. A job specification is drawn up by the business and sets out the kind of qualifications, skills, experience and personal attributes a successful candidate should possess. It is a vital tool in assessing the suitability of job applicants and refers to the person rather than the post. These documents are an important part of the recruitment and selection process and provide the basis as to where the job may be advertised and whether an applicant is suitable for the post. They also help provide a framework for questions to be asked at an interview. 2.2. Recruitment methods of TOTO Viet Nam Co., Ltd 2.2.1. Internal recruitment Internal recruitment applies to the staff within the company. They are given a chance to apply for a given vacant positions. This method helps save time and money for the company. The Human Resources Department (HRD) plays a significant role in making decisions related to this kind of recruitment. The following is the chart of internal recruitment sources of TOTO Vietnam Co., Ltd: Figure 2.2 Chart of internal recruitment sources of TOTO Vietnam Co., Ltd: (Source: Report of Human Resource Department of TOTO Vietnam Co., Ltd) Among the above five sources of internal recruitment, transfers and promotions are the two common sources in the company. For these sources, the employees in the company are transferred from one department to another according to their efficiency and experience or promoted from one department to another with more benefits and greater responsibility based on efficiency and experience. 2.2.2. External recruitment External recruitment is applied when the company looks to fill the vacancy from any suitable applicant outside the company. The only way the company uses is advertisement. The company posts the recruitment information on the company website or the job site named in order to attract qualified people outside of the company to apply for jobs. 2.3. Selection steps at TOTO Vietnam Co., Ltd 2.3.1. Collection and investigation of applications The company asks applicants to provide a Curriculum Vitae (CV).  This is a document that the applicant designs providing the details which are listed in the following table: Table 2.1: Details in CV required by the company: Personal details Name, address, date of birth, nationality Educational history Including examination results, schools/universities attended, professional qualifications Previous employment history Names of employers, position held, main achievements, remuneration package, reasons for leaving Suitability and reasons for applying for the job A chance for applicants to ‘sell themselves’ Names of referees Often recent employer or people who know applicant well and are ideally independent (Source: Report of Human Resource Department of TOTO Vietnam Co., Ltd) Once the company has received all the applications, they analyze and select the most appropriate ones.  When analyzing applications, the company splits the applications into three categories as following table: Table 2.2: Three categories of application split by the company: Those to reject Candidates may be rejected because they may not meet the standards set out in the job specification such as wrong qualifications or insufficient experience or they may not have completed the application form to a satisfactory standard Those to place on a short list Often comprises 3-10 of the best candidates who are asked to interview Those to place on a long list The company will not normally reject all other candidates immediately but keep some on a long list in case those on the short list drop out or do not appear suitable during interview.  The company would not want to incur costs putting them through the selection process, such as interviews, unless they have to. (Source: Report of Human Resource Department of TOTO Vietnam Co., Ltd) 2.3.2. Selection of the best applicants 2.3.2.1. Tests At first, the company asks the candidates to do two kinds of tests. They are IQ test and English test. The purpose of the company is to select out the candidates who are creative, flexibility and good at English. The IQ test includes 30 questions. It contains spatial, mathematical, logical, and linguistic tasks, as well as common knowledge questions. The time given to complete the test is 25 minutes. 2.3.2.2. Interviews After the two tests, the company continues to make two or more face- to- face interviews with the candidates who have the marks accepted by the company. Once each interview passes, some certain candidates are rejected until the amount of qualified candidates meets with the human needs of the company. There are often four people in the company take part in an interview. They are the human resource director, divisional director, manager and leader. The purpose of the interviews is to find out the suitable employees who have the required skills and qualifications, especially passion for the job and faithfulness with the company. The interviewers use the questions which have been written in advance. They have a written description of the experience, skills, and personality traits of an ideal candidate. These experiences and skills are compared to specific job tasks. Some questions are often asked in the company’s interview are: Tell me about yourself? What do you know about our company? Why do you want to work for our company? Why should we hire you? What experience do you have in this field? What are you looking for in a job? What kind of salary do you need? Do you have any questions for me? Similar to other companies, these are some common questions which the candidates can be asked. However, as a Japanese company, there is a need for the candidates to appear faithful with the company. So, it is an advantage for candidates who express the willing to work for the company for the long time and devote to company’ growth even when they have little working experiences. 2.3.2.3. Selection decisions The company selects the final candidates and informs them by phone or email. Before being accepted as employees of the company, candidates must take a health examination held by the company to ensure weather or not they can work for the company in the long terms. 2.4. Training new employees Training is important as it enables new employees to become productive as quickly as possible. It avoids costly mistakes by new employees who do not know the procedures or techniques of their new jobs. Within two first months, new employees have to take on work under the supervision of a leader. In probationary period, they are taught by the leader in terms of the working skills. The leader will follow and train them during working time such areas as: Learning about the duties of the job Meeting new colleagues Seeing the layout of the premises Learning the values and aims of the company Learning about the internal workings and policies of the company As two months ends, if their performance is good, they will be accepted to be official employees of the company. 2.5. Achievements and limitations in recruitment at TOTO Viet Nam Co., Ltd 2.5.1 Achievements in recruitment at TOTO Viet Nam Co., Ltd In the recent years, company has seen a progress in human resource management. The quality and quantity of the employees in the company are more and more improving which contributes to raise the revenue and profit for the company as well as the income for workers. 2.5.2 Limitations in recruitment at TOTO Viet Nam Co., Ltd External recruitment of the company hasn’t been enlarged in terms of methods. The company only posts the recruitment information on the company website and job site so it might restrict the number of people who apply for the jobs. The company has not had a good treatment to the employees. The salary has not responded to their work. Some counterproductive behaviors cost the company a lots to hire and train new employees. The following table is demonstrated in detail the counterproductive behaviors of workers. Table 2.2.Counterproductive behaviors of workers of the company from 2008 to 2010 Year 2008 2009 2010 Absenteeism 8% 10% 11.5% Turnover 12% 14.5% 17% (Source: Annual report of TOTO Viet Nam Co., Ltd on human resource management from 2008 to 2010) As above table, two common forms of counterproductive behaviors of employees are absenteeism and turnover. From the year 2008 to the year 2010 the company sees the increasing rate of absenteeism and turnover in which the turnover rate is higher and higher. During three years, it has increased of 5%, especially in 2010; this rate is at high level of 17%. Besides, the absenteeism rate is still high, in fact, 11.5% in 2010. In comparison with the rate of 2008, it increases as much as 3.5%. It takes the company a lot of financial resource to replace workers. In addition, it hurts the business and negatively affects to productivity of the company which causes decreased revenue. CHAPTER III: RECOMMENDATIONS TO IMPROVE THE QUALITY OF RECRUITMENT AT TOTO VIETNAM CO., LTD 3.1. Solutions to improve the quality recruitment sources 3.1.1. Coordinating with universities and colleges The students at universities and colleges are important external sources of recruitment. Coordinating with universities and colleges is essential for the company to select outstanding students to apply for the jobs after their graduation. Moreover, this coordination helps students have the chance to match the theories which they study at the universities with the real practices. Besides, the company should put certain conditions for the students to reach in such terms of the grade, skills, good communication, etc. The students who meet with these conditions will be introduced by their lecturers to intern at the company so that their chance to be recruited by the company is widen. 3.1.2. Permitting for internship The company should accept the students who submit applications for internship at the company. During the internship of students, supervisors can observe, and examine the abilities and skills of these students. Thanks to this, the company can choose the best students who can meet the requirements of the job and recruit them into the right positions. This method may cost the company a lot of money, however, the company attracts qualified employees and does not have to spend time collecting and investigating applicants, even preliminary interviewing in recruitment process. Furthermore, these students who are selected will fast response to working environment of the company. The quality of employees from this kind of recruitment is very high. Therefore, to improve the competition, the company should pay attention to this source of recruitment. For the students who apply for the job without the company’s advertisement, desire to work for the company and be willing to wait until when the company starts to recruit, company should receive these applications and store them at administrative department for later interviews. This approach could bring many benefits to the company. 3.2. Solutions to improve the quality of recruitment 3.2.1. Widening the channels for recruitment advertisement Recruitment is now very popular on the Internet. Also, Internet is a very useful tool for finding information, especially recruitment information. These are some popular job sites which applicants can find reliable information like: www.tuyendung.com, www.kiemviec.com, www.vietnamworks.com, www.jobviet.com .The company should widen the channels for job advertisement publication and exploit them effectively, particularly the recruitment site for free. Along with the job site on Internet, magazines are widely used for recruitment advertisement. The company should find out the balance between performance and cost to exploit this recruitment channel. 3.2.2. Improving interview methods The company should form a group of interviewers including the manager, the head of department, the director, the leader. The success or failure of the interview depends on the attitude of the interviewers to the candidates. At first time of the interview, the interviewers should create an open and comfortable atmosphere so that the candidates feel more confident to express themselves. The interviewers should turn the interview into a talk in which they ask the candidates about major skills, and let the candidates have the chance to give questions again. Creating such interviews helps bring effectiveness for the company’s recruitment. 3.2.3. Improving training and developing employees In the recent years, the company has paid many focuses on training and had many achievements. However, it is necessary for the company to enhance the quality of this activity. For the managers, the company should hold courses training professional skills for them, so that they can improve their management skills. For new employees, the company should help them have the chance to get response to their job positions. Probation is the period of time in which the company can check the fit between candidates and their job positions in order to avoid the job losses. Also, the company should create the conditions for candidates to get familiar with the company and job. Therefore, there is a need to do such practical actions as: Raising staff guide: The guide is responsible for giving instructions, observing the candidates during their job, then making comments about candidates. Probation does not mean working without wage; it should have the incentives to encourage candidates to work. Making an assessment during the trial of the candidates. If the company does this activity well, the company will be staffed with skilled employees, highly qualified managers who are dynamic, sensitive, simultaneously with the bond between team members, between parts of the company which helps create favorable conditions for companies to achieve the objectives: to build the company reputation, product quality, increase sales, increase profits. 3.3. Solutions to improve treatment to the employees The company should provide inducements such as pay, career opportunities, job security, promotion opportunities, etc to meet the needs of employees. There is a need of promoting, pay raising, training the workers to improve their skills. On the one hand, this avoids the fact that many underpaid employees may perform poorly or leave for better job elsewhere. On the other hand, it encourages workers to make more contributes to the company in terms of effort, ability, loyalty, skills and time which helps improve the effectiveness of business and increase the profit for the company. A good treatment plays an important role in human resource management. Therefore, the company should pay much more attention to improve the treatment to their employees. It is very beneficial to the company in keeping loyalty of employees and developing their working effectiveness. Furthermore, with good treatment, the company also attracts other talented people in the global market to apply for jobs in the company. Taking advantage of this method is necessary, because it helps TOTO Vietnam Co., Ltd has a skillful workforce who make huge contributions to the company’ growth. CONCLUSION In globalization context, human resource has become more and more important to enterprises and played a key role in the growth of enterprises. Therefore, it is very necessary for enterprises to well perform recruitment in order to ensure an effective human resource that makes contributions to develop the enterprises. Being aware of the importance of recruitment, TOTO Vietnam Co., Ltd has paid more attention to improve the effectiveness of this activity and had many achievements in the recent years. However, there are also some existing problems which are being solved step by step to enhance the quality of the employees in the company. In this research project, by going through the current situation recruitment of the company, pointing out the limitations, I have given some appropriate solutions to improve the effectiveness of recruitment for the company’s growth. In the period of probation at TOTO Vietnam Co., Ltd, I have learned many things. I had an opportunity to learn about the process and reality of recruitment at the company in particular and other companies as a whole. As a student, it is very useful for me to know what companies require and wish to have from the applicants. Thanks to that, I am aware of the skills which I have had and have to try hard to achieve so that I can find a good job after graduation. Therefore, studying this project helps me have more knowledge in order to prepare for the jobs in the future. REFERENCES Annual report of TOTO Vietnam Co., Ltd on human resource management Report of Human Resource Department of TOTO Vietnam Co., Ltd. TABLE OF CONTENTS Acknowledgement List of figures and tables