What Strategy for Human Resources Management in Crisis Time?

During this period, the Vietnamese economy had impressive growth, with annual GDP growth rate exceeding 7 per cent. More commercial banks were set up; real estate and stock markets advanced to have very large market capitalisation values; and FDI capital attraction set all-time record high. These in combination accelerated the formation of many companies - the development symbol of Vietnamese economy. Therefore, during this period, human resource business was very hot because the supply fell short of both “quality” and “quantity”. The number of senior personnel increased significantly but the concern for "quality" was just secondary for most companies because almost all quickly expanded in dimension, featured by their easy and unthinking expansion to new business lines, their rapid increase in total assets in many overlapping ways while personnel “property” was only present to fill the gap left by their “rush” expansion.

 

At the back of the overheating period, Vietnam's economy fell into recession on lack of a solid foundation. In the 2011 - 2012 period, the Vietnamese economy started to enter a difficult spiral since big assets and brand names did not create added value on lack of core competencies for development. This very large bubble and its consequences turned many big companies with brand names representative of their entire industries into seriously ill "patients" that weakened the entire society. Human resources management (HRM) in this stage "patched" and "fixed" the system to maintain the existence. Till this point of time, they started to think about high-quality human resources and their effects in the moment full troubles facing the economy.

 

Confidence crisis, even in the leadership, caused businesses to undergo disorientation in a certain period of time.

 

In this period, corporate governance must base on flexible strategies and drastic actions to change before the live and death of many companies surrounding them. To make a turn in this urgent situation, they must have specific accurate steps from business strategy to scientific personnel strategy and leadership art.

 

Relationship-based and overheating growth-driven development period is highly unlikely to make a comeback in the future. Leading companies in the world have long strongly focused on developing core competencies with highest differentiations. As said, companies in an industry not only need what is necessary for competition in such industry but also know how to create and differentiate there biggest advantages to compete effectively and sustainably.

 

There is a clear-cut evidence that almost all fast-growing industries in Vietnam have the presence of world-acclaimed global brand names. Thus, the current competition for development of each enterprise is no longer localised, subsidised or protected under a certain exclusive privilege (except for sectors the government holds monopoly). Competition is global in a “blood-covered ocean." Without preparations for really competitive foundations, it will be very hard for any businesses to survive in a long-term development plan and immediately remove its development goals and plans out of its core strategic business lines.

 

Psychological factors and leader cultural shifts are always big obstacles to commitments and strategic changes of enterprises, the past and its consequences are always useful lessons for them if their leaders know to seek progress, accept failures and modify their strategies for long-term operations.

 

Previously, good-performing companies are said to always have plans at hand and clear execution systems for each stage of development. However, the current situation seems to prove that what they have are not enough to response and flexible change in a changing business environment. Change administration requires businesses more flexible administration plans and structures than old standards. A bulky structure of multiple layers and overlapping governance matrix seems to be efficient previously but it will become confused and slow decision-making. Hence, they need to prepare for a very flexible change in governance and response to the market situation in a shrewd governance motif.

 

At that time, they need a very efficient and highly strategic HRM method to ensure quick modification and change in every specific plans. Internal communications impact, corporate culture construction, and focused personnel capacity enhancement are extremely important to change the awareness of employees in this period to achieve success.

 

Change administration for robust and sustainable development will lead to the refinement of existing personnel and the formation of successive force is a big task for business leaders during this period.

 

It is noted that a successful change administration must start from the superstructure of an enterprises. The lack of consistency and direction inside the leadership is the cause to many failures in making change and the most common phenomenon is the split-off” as we have heard from some big companies in the past time.

 

Enterprises can follow up and focus on some most important factors to develop. The first and foremost is internal communications. This is the primary goal to create a channel that connects the leadership with employees and vice versa. Building up the confidence and generating motivations always help employees feel eager and enthusiastic with their jobs, helping them fulfil their personal objectives and their units as well. Enterprises should also establish assignment system and evaluation system to gauge employee performances. Decentralisation and authorisation should be as high as possible to promote the initiative of employees. It is important to know that commissions and rewards are important components of personal incomes. Internal training must be carried out effectively and coherently. They need to streamline their apparatus to a maximum. They should also apply information technology to HRM to ensure time and analysis of employee indices.