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5035 GBD1101B Assignment 2 NguyenPhanThaoMy GBD220121

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ASSIGNMENT 2 FRONT SHEET

Qualification BTEC Level 4 HND Diploma in Business

Unit number and title Unit 3 Human Resource Management

Submission date Date Received 1st submission

Re-submission Date Date Received 2nd submission

Student Name Nguyen Phan Thao My Student ID GBD220121

Class GBD1101B Assessor name Nguyen Xuan Tho

Student declaration

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

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Table of Contents

I. INTRODUCTION ........................................................................................................................ 5

1.1 Introduction to the report .............................................................................................. 5

1.2 Introduction to the TH True Milk................................................................................... 5

1.3 Introduction to the TH True Milk Digital Business Transformation ...................... 7

II. An analysis of key internal and external factors affecting the preparation of

human resources to support the TH True Milk Digital Transformation Plan .................... 9

2.1 Investigate the external and internal factors that affect HRM decision-making

to support organizational development ................................................................................ 9

2.1.1 Influence Of Internal Factors .................................................................................. 9

2.1.2 Influence Of External Factors ................................................................................11

2.2 Discuss the key external and internal factors that affect HRM decision-making,

using relevant organizational examples to illustrate how they support organizational

development ..............................................................................................................................14

2.2.1 Internal Factors Affecting TH True Milk ..............................................................14

2.2.2 External Factors Affecting TH True Milk .............................................................16

2.3 Critically evaluate key factors affecting HRM preparation for the Digital

Transformation plan to make valid recommendations to improve sustainable

organizational performance ...................................................................................................17

III. The proposal of motivation plans to engage employees in the Digital

Transformation Plan ....................................................................................................................19

3.1 Learning and Development ..........................................................................................19

3.2 Rewarding Plans ..............................................................................................................23

3.2.1 Financial Rewards ....................................................................................................23


3.2.2 Non-Financial Rewards ...........................................................................................24

3.3 Illustrate and critically evaluate how the application of motivation plans

(including Learning & Development, rewarding plan) affect the TH True Milk Digital

Transformation (DX) plan ........................................................................................................25

IV. Determine strengths and weaknesses of HRM practices to make

recommendations for improving sustainable organizational performance ...................26

4.1 The strengths and weakness of HRM practices (Learning Developing, and

Rewarding policy) of the TH True Milk .................................................................................26

4.1.1 The Strengths and Weakness of TH True Milk learning and development

policy…………………………………………………………………………………………………………………………..26

4.1.2 The Strengths and Weakness Of TH True Milk Rewarding Policy ..................28

4.2 Some recommendations to improve the sustainable organizational

performance of the TH True Milk ..........................................................................................29

4.2.1 Make recommendations for improving sustainable organizational

performance learning and development policy ..............................................................29

4.2.2 Make Recommendations for Improving Sustainable Organizational

Performance Rewarding Policy ...........................................................................................30

V. CONCLUSION ..........................................................................................................................31

VI. REFERENCE ...........................................................................................................................32


I. INTRODUCTION

1.1 Introduction to the report

Businesses must continually innovate and produce if they want to survive and grow. One of

the significant trends, marked by the change of many firms, is digital transformation. Even

while manufacturing forms the backbone of every firm in every country on earth, there are

several additional support services that guarantee the company's success. The company

intends to do business digital transformation where it is on a mission to attract more excellent

people by capturing the company's market. As an HR administrator of TH True Milk, it is my

duty to record the essentials of HR administration, offer reliable data, and create an HR

strategy that will optimize the benefits of digital business conversion. In this report, the

human resources administrator of TH True Milk will summarize and present the digital

transformation plan. The report's major focus is on how internal and external influences

affect plans for employee training, learning, and development, pay policies, and digital

transformation goals. Besides, the assessment of influencing factors, strengths, weaknesses,

and suggestions for remedial measures will also be presented.

1.2 Introduction to the TH True Milk

TH True Milk (TH Dairy Foods Joint Stock Company) is a subsidiary of TH Group, established

in 2009 in Nghe An, Vietnam (Misaamis, 2022). Famous for producing high-quality, safe, and

"clean" milk belongs to TH Group - which was established under the financial advice of North

Asia Commercial Joint Stock Bank. The company has invested in a sophisticated management

system and operates a closed production process per international standards. With constant

efforts and dedication, TH True Milk entered the Top 100 Sustainable Enterprises in Vietnam

in 2022 and received the National Quality Gold Award in 2020 (Ngocbich, 2022). With its

vision, TH Group hopes to become “Vietnam's leading manufacturer” of clean food

products originating from nature. With a conscious mission close to nature, TH Group always

makes every effort to nourish Vietnam’s body and soul by providing food products that come

from nature – clean, safe, fresh, and nutritious (Wewin, 2022).


Figure 1 Logo TH True Milk

The biggest goal in TH True Milk's business strategy is to become the leading food

manufacturer in Vietnam based on clean products of natural origin. The desire to dominate

the clean food market in Vietnam and successfully build a food brand known not only

domestically but globally (Misaamis, 2022). Expand milk cattle to 400,000 by 2025, triple the

milk output, to meet 50% of the domestic market's demand for milk products (ThanhTrung,

2019). TH has also expanded its operations internationally with a $2.7 billion dairy and milk

processing project in Russia and set out to expand its market with agricultural projects in

Australia, successfully capturing challenging and high-demand markets for dairy products like

China, Singapore (AnhTuan, 2022).

Besides, we need to consolidate and redefine the market segment for customers with high

revenue, and then we need a new market for the customers that have been acquired. In

addition to providing fresh milk, TH True Milk also aims to diversify products, research, and

develop other products such as fresh milk, tomatoes, ice cream, butter, cheese, and other

clean products. Desire to become a strong brand, the top choice of Vietnamese consumers

for fresh and clean products (Misaamis, 2022). As part of TH True Milk's business strategy, the

brand aims to become the leading food producer in the Vietnamese market for clean

products of natural origin (Misaamis, 2022). When it entered the Vietnamese dairy market,

TH True Milk took advantage of the wealth of natural resources in Vietnam to ensure that it

filters out the finest from nature and brings clean milk to its people (Misaamis, 2022).
1.3 Introduction to the TH True Milk Digital Business Transformation

Digital business transformation involves integrating new technologies into all business

areas, leading to fundamental changes in an organization's operations (Schwertner, 2017).

Successful transformation involves reengineering and optimizing business processes

according to the strategy's goals. The goal is to enhance customer experience, efficiency,

innovation, decision-making, and business transformation. Leadership with sufficient skills

and experience is essential for leading digital strategy (Schwertner, 2017).

Figure 2 TH Group activates the system conversion project to SAP S/4 HANA

TH True Milk is one of the successful enterprises in digital transformation. This suggests that

TH True Milk is abandoning its traditional business model and adopting a more modern,

digital-focused model. So, in order to make progress in business, we need to boost digital

human resources transformation. In terms of managing human resources and leveraging

real-time analytics to make better business decisions, TH True Milk launched its SAP

SuccessFactors solution at one of Vietnam’s largest fresh milk producers in Ho Chi Minh City

in 2018 (Vietnamnews, 2018). TH Group accounts for about 40% of the fresh milk market in
Vietnam. (Vietnamnews, 2018). TH True Milk is aiming to become the leading producer of

dairy products in Vietnam. Accordingly, the company's goal is to meet 50% of the country's

fresh milk demand by 2020 (Vietnamnews, 2018).

In 2021, in order to sustain development and meet the need to expand the manufacturing

business, TH Group officially launched the TH Group’s Technology Platform Transformation

Project to SAP S/4 HANA. TH Group established the record for a "High-tech appliance-

focused dairy farm with the world's largest closed production process" in 2020, with the

help of the German SAP Enterprise Management Software Group and the British consultant

Deloitte launched the project to convert TH Group's technology platform to SAP S/4 HANA

(Trantrung, 2021). This TH project is a comprehensive, large-scale SAP technology conversion

project. With the mindset of "Combining Vietnamese intelligence, Vietnamese natural

resources with world high technology and modern management science", on March 3, 2021,

TH Group launched a project to upgrade its technology to SAP S/4 HANA, aiming to improve

productivity and quality of products and services (Trantrung,2021). For TH Group, the

transition to SAP S/4 HANA is a transformation - creating a launch pad ready to connect with

new modern supporting technologies such as IoT, Machine Learning, AI, and Big Data

(Trantrung, 2021). The rapid growth in the consumer goods industry is directly proportional

to the number of daily transactions. S/4 HANA's compatibility with various databases,

hardware, and software is one of its main advantages. The SAP system upgrade, completed

in the first half of 2021, will provide TH with one of the most modern platforms in

administration, operations, and production (Trantrung, 2021).


II. An analysis of key internal and external factors affecting the

preparation of human resources to support the TH True Milk

Digital Transformation Plan

2.1 Investigate the external and internal factors that affect HRM decision-

making to support organizational development

Organizational development is a systematic process of applying behavioral science principles

and practices that support the high goal of both improving organizations and making them

work more effectively through planned change (Basadur, Basadur, and Licina, 2012).

2.1.1 Influence Of Internal Factors

The term "internal environment" describes elements that affect an organization's

functioning and growth. These include organizational culture, leadership, employee

capabilities, technologies, internal procedures and systems, organizational structure, and

facilities (Jones & George, 2019).

Vision, Mission, and Objectives:

Digital transformation planning at True Milk requires careful integration of the organization’s

“Vision, Mission, and Objectives” with various internal factors that influence HRM decision-

making. The journey of digital transformation has also helped us pursue TH Group's vision

of True Happiness, in which we are steadfast in our mission of contributing to building a good

life, for social stability and commitment to supporting the community (HaiYen, 2020). Towards

the strategic goal of creating a healthy working environment, and high-performance staff

(HaiYen, 2020). HRM needs to recruit the best talent and help them integrate into the most

effective new jobs, boost team productivity, and make optimal choices to ensure that HR

decisions are in line with business strategy.


Organizational culture:

TH True Milk’s organizational culture is characterized by a strong commitment to

sustainability, ethical farming practices, and a focus on providing high-quality dairy products

to consumers. TH True Milk’s culture, values, and mission can be seen to influence HR

management decisions, including recruitment, retaining talent, and building employee

relationships. TH True Milk's "From Farm to Dining Table" philosophy is embedded in the

culture and human resources department ensuring that the production chain is closed from

the farm, the factory to the distribution system to the consumer (Bachviet, 2019).

Leadership:

Effective leadership is a key element at TH True Milk in promoting sustainable growth. Ms.

Quyen, the TH Group's director of human resources, reportedly stated officials and

employees at TH Group believe that 'Vietnamese intellect' is one of the three aspects

leading to strong company development from the strategic thinking of Ms. Thai Huong, there

is a lot of commitment and inventiveness in the culture (HongKieu, 2022). Human resources

decisions can include leadership development programs and succession planning. TH True

Milk outlines a roadmap for guiding development and internal promotion that can show the

influence of leadership on human resources management decisions.

Employee Capabilities:

The most important resource for every business striving to achieve a competitive edge is its

people (Dubra, 2010). Of all working ages, people from 19 different nations and cultures work

at TH (ThanhHa, 2021). Engagement and employee happiness will be key components of

human resource management. With a sizable staff, TH is known as a company that prioritizes

the welfare of its employees, creates a positive work atmosphere, respects diversity,

inclusivity and equality, transparency, and the right of everyone to free speech (HongKieu,

2022). HRM campaign will make it easier to supply and arrange personnel for each suitable

position. Besides, HRM will have to change the training plan to suit each level group of

employees must be divided into several batches to conduct training.


Organizational structure:

TH True Milk operates with the hierarchical structure of many large companies. It consists of

different departments and management levels, each with specific roles and responsibilities.

The organization is led by the Board of Directors (the company's top representative), followed

by the middle management (Business, Production, Finance, Human Resources, Marketing,

and R&D) and frontline staff (Mykieu, 2023). These are the main organizations responsible for

TH True Milk's long-term development strategy and goal-setting. TH True Milk's commitment

to sustainability and organic farming affects human resources management. HRM will have

to plan recruitment, training, and remuneration to the goals and direction of the corporate

governance apparatus.

Internal procedures and systems:

Properly organized internal processes and systems, supported by HR management decisions,

improve operational efficiency. TH True Milk has deployed SAP solutions to manage human

resources and leverage real-time analytics to help HRM make better business decisions.

Continuous performance discussions for management can record the outstanding

achievements of employees to encourage them to work (HaiYen, 2020).

2.1.2 Influence Of External Factors

The term "external environment" refers to the extensive circumstances and factors that

exist outside of an organization and have the potential to affect its operations and

performance. It includes factors like competition, regulations, technology, economics, the

environment, and sociocultural trends (Bateman & Snell, 2020).

Global Trade:

Global events such as trade disputes, can disrupt the supply chain and have a huge influence

on the development and management of human resources. TH True Milk has considered

many practical adaptation measures, especially during the complex COVID-19 epidemic that

has a negative impact on all aspects of society. But it's also an opportunity for TH True Milk

to turn risk into an opportunity for growth. TH True Milk to maintain its production chain
untouched by a complex epidemic, human resources decisions can be affected by the need

to manage a large workforce to meet the needs of the company (Vietnamplus, 2021). HRM

must respond by ensuring the workforce is adaptable the supply chain remains resilient

adapts to different labor laws, and ensures consistent cross-border staffing practices.

Labor market:

A narrow labor market can influence HRM decisions in attracting and recruiting talent. To

boost its human resources, TH True Milk has acquired its market share of Dalatmilk, which

owns over 2,800 cows and 3,300 hectares of land and is also launching a "worldwide"

campaign in cooperation with Russia (SonNgoc, 2015). TH True Milk needs to come up with

recruitment and retention strategies that differentiate it from its competitors. HRM needs to

tackle the high rate of discontinuation in the labor market which can lead to higher employee

dropout rates. To attract more human resources, HRM needs to have a clear strategy and

create more attractive wage and recruitment welfare packages.

Technology:

The human resources of TH True Milk will probably be significantly impacted by technological

advancement. It enables the company to improve its internal operations, core competencies,

target markets, and overall organizational structure. The TH Group started its journey of

human resource transformation in 2017 with a vision of technical application and a goal of

investing in people to invest in sustainable growth (HaiYen, 2020). With the online learning

management system being implemented and continuing to be implemented, our employees

have access to online training and development opportunities (HaiYen, 2020). The

deployment of new HRM technologies, training programs, and reporting on job changes

brought on by technology can demonstrate how technology advancements have affected

HRM.

Law and Regulations:

Every business is affected by laws and regulations. Businesses that want business and long-

term growth must comply with the law. It is the responsibility of the HR team to keep up-to-
date discussions on labor law and, more importantly, legal amendments to labor law (Sesame

HR, 2021). TH True Milk is a manufacturer of dairy products and must comply with strict food

safety regulations to ensure the quality and safety of products for consumers. In addition,

according to article 4. Principles of employment, Law No: 38/2013/QH13, employees have the

right to work, freely choose jobs and workplaces, have equality in employment opportunities

and incomes, and work under safe and hygienic conditions (Thuvienphapluat, 2013). For

example, The TH Group implemented the "Equal Employment Opportunities" policy,

prohibiting discrimination and harassment in the workplace based on various factors

(ThanhHa, 2021). Changes in employment laws, workplace safety regulations, or industry-

specific standards may require the HRM to adjust the company's policies and practices.

Economic environment:

In Vietnam, most dairy firms are being pressured by rising commodity prices, plus inflation

that is causing lower consumption (Vnexpress, 2022). This may significantly impact decisions

on managing human resources. Many commodities saw price increases during the COVID-19

era as global supply systems were affected by the shutdown (Vnexpress, 2022). This affects

milk production, as farmers have to pay more expensive expenses for processing fertilizers

and livestock feed (Vnexpress, 2022). TH True Milk has also adjusted prices to meet the

financial challenges. To maximize employment, put an emphasis on cross-training and skill

development for current staff. The business may effectively manage economic issues while

fostering long-term organizational development and growth by keeping an eye on economic

conditions and being flexible in its HR strategy.

Market Competition:

The amount of competition in the dairy sector has an impact on the HR choices made by TH

True Milk. TH has been successful in creating a corporate culture, has a great human

resources management strategy, offers appealing job opportunities, and often plans

engaging internal events to strengthen employee cohesiveness (HongKieu, 2022). Decisions

on human resources management that may conduct Hay Group Korn Ferry employee surveys
show that up to 90% of employees are proud to work for TH (HongKieu, 2022). HRM focuses

on attracting, paying, and retaining talent to deliver competitive advantages, career

development, and a unique corporate culture to stand out in a competitive market.

2.2 Discuss the key external and internal factors that affect HRM decision-

making, using relevant organizational examples to illustrate how they

support organizational development

2.2.1 Internal Factors Affecting TH True Milk

TH True Milk is a manufacturer of dairy products and thanks to the unceasing efforts of the

entire company's staff and management, the company won the Asia-Pacific International

Quality Award (Global Performance Excellence Award - GPEA) in 2021 in the highest

category called WORLD CLASS AWARD for large production types (ThanhHa, 2021). This will

also help HRM be more motivated to work and devote itself to helping the company honorary

awards. Large-scale dairy farms operated by TH True Milk in Nghe An, Vietnam, employ

cutting-edge technology for recycling waste and reducing resource exploitation as part of

their commitment to environmental sustainability (LeThanh, 2022). HRM needs to find

candidates that match the company's sustainable cultural and ethical values. HRM initiatives

should focus on motivation for employees by highlighting the company's commitment to

creating positive dynamics for society. This connection makes sure that HR strategies and

activities support TH True Milk's purpose and overall performance by being in accordance

with the company's values.

By June 2021, TH have more than 100 products entering the market for milk and healthy

beverages (ThanhHa, 2021). In recent years, due to the epidemic situation, TH turned the risk

into an opportunity to maintain a double-digit growth rate, higher than the industry's overall

growth rate. Even though the COVID-19 outbreak will have a significant negative influence on

the economy and consumer spending power in 2020–2021, TH's products are still loved and

welcomed by consumers (Thanh Ha, 2021). The thtruemart eCommerce website and the TH

eLIFE mobile app, both of which are compatible with iOS and Android devices, are examples
of TH's e-commerce channels (Suckhoedoisong, 2021). In particular, TH True Mart also has a

presence on e-commerce platforms Tiki and VnShop, and online market applications

Grabmart, NOW, and Baemin, VinID (Suckhoedoisong, 2021). According to the representative

of TH claims that TH's e-commerce channels have grown more than 90% over the same

period in 2020 in the first half of 2021 (Suckhoedoisong, 2021). To plan for this transition and

assist the process, a sizable number of personnel will be needed. HRM will be about recruiting

enough people. More than 10,000 employees in total are now employed by TH Group

projects (ThanhHa, 2021). Every strategy and plan the business develops can be implemented

because of the vast number of personnel. HRM initiatives will simplify arranging and

providing the right people for each job based on their qualifications.

The HR department may carry out a skills gap study to determine where the workforce needs

to develop. They may create tailored training programs to improve employee abilities and

support organizational development in light of this data. Receiving regular feedback on job

performance is a requirement for transparency in the workplace in TH (ThanhHa, 2021). 100%

of employees are regularly evaluated for their performance and career development. This

fosters an environment of openness that motivates staff to perform better and grow in their

careers (Thanh Ha, 2021). Overall, TH True Milk is able to mobilize a sizable, diversified staff

in support of significant organizational change because of effective human resource

management that focuses on satisfaction, growth, and transparent communication.

Recruitment, training, and compensation must be planned by HRM with career growth and

the organization of the firm management machinery in mind. HRM decisions need to take

into account the specific skills and qualifications required for roles in the company. For

instance, HR at TH True Milk will be seeking applicants with particular knowledge of milk

production procedures for the position of dairy technologist. HRM will recruit both young and

experienced candidates, from many other countries. This will make it possible for the

business to have a multicultural atmosphere with a variety of viewpoints for all ages. Success

with the digital transformation strategy will be achieved by fusing the creativity of youthful

employees with the wisdom and self-assurance of seasoned workers.


2.2.2 External Factors Affecting TH True Milk

Every business is affected by laws and regulations. Businesses that want business and long-

term growth must comply with the law. TH True Milk is a manufacturer of dairy products and

must comply with strict food safety regulations to ensure the quality and safety of products

for consumers. The closed production method used by TH Group is entirely compliant with

national and international norms (Nhandan, 2022). Maintain high standards for food safety

in Vietnam. For food safety and product quality, TH True Milk has attained ISO 22000:2005,

HACCP, and BRC certification (AnhPhuong, 2023). The dairy cattle farming practiced by TH

True Milk is subject to environmental laws controlling land usage, waste management, and

sustainable practices. TH True Milk's HRM must include a strategy, guiding principles, and

legally binding clauses that can't be broken. Legislation is the basis for HRM to operate and

comply. It needs to be deployed, and licensed and not appear low-quality products, affecting

consumers.

The Covid-19 pandemic has had a negative impact on every aspect of society. The epidemic

lasted for more than two years, turning the labor market upside down. However, TH True Milk

turned danger into opportunity. Since the pandemic's onset in Vietnam in March 2020, TH

has been one of the few companies to sustain production chains, double-digit growth, and

complete employee welfare (Vietnamplus, 2021). During the epidemic, TH still ensures the

production chain to maintained throughout the distribution system. At TH dairy farms, which

is the "home" of more than 45,000 dairy cows that require a lot of direct care workers, farm

leaders immediately proposed 17 epidemic prevention solutions; Build scenarios for on-site

and ensure over 1,700 agricultural laborers remained in good health after two epidemics

(Ngockhang, 2021). Unlike others who are struggling to maintain their position, TH True Milk

will expand its recruitment to ensure that the production chain for distribution can meet the

needs of consumers.

TH pioneered its own chain of retail outlets named TH True Mart throughout the provinces

of the country in addition to conventional and contemporary distribution methods; there are

currently over 300 TH True Mart (Suckhoedoisong, 2021). Therefore, HRM needs to recruit a
lot of people while making sure that the employees are qualified to handle the demands of

the company. People are discouraged from going shopping by the COVID-19 atmosphere.

Online orders will rise as a result. Especially when the COVID-19 outbreak broke out in the

southern provinces, the number of orders through this channel increased three to four times

the average (Suckhoedoisong, 2021). Plans to sell goods online will meet consumer wants and

preferences throughout the outbreak. The strategy is also successful when it combines the

necessary components with the appropriate market share at the appropriate moment.

2.3 Critically evaluate key factors affecting HRM preparation for the Digital

Transformation plan to make valid recommendations to improve

sustainable organizational performance

To critically evaluate key factors affecting HRM preparation for a Digital Transformation plan

at TH True Milk and make valid recommendations for improving sustainable organizational

performance, we need to consider various aspects:

• Economic environment: The TH Group, which produces goods that have long been

favored by customers, continues to be among the top brands with an annual growth

rate of two digits (Thanh. L, 2023). With spectacular growth as the only dairy brand in

the Top 5 to increase purchases and attract 130,000 more households by 2022, TH is

becoming more and more trusted to receive across the country (Thanh. L, 2023). The

total data from the e-commerce exchanges indicates that sales of TH True milk

products peaked in July 2023 at VND 8.7 billion and 35.8 thousand in output (Virac,

2023). The market for TH genuine milk grew to 8.7 billion in sales in July 2023, a higher

increase than in June 2023 of 61.5% (Virac, 2023). The fast-growing economy will force

the company to grow faster in digital transformation, employees will have to keep up

to date with their knowledge, and the company will constantly have to recruit highly

skilled employees. It is important to ensure that the workforce has the necessary digital

skills and capabilities. Recommendations HRM to conduct comprehensive skills

assessments to identify gaps. Develop a structured training and development


program, both internally and through external partnerships, to enhance or retrain staff

skills. Encourage continuous learning and create a culture that values and rewards

digital proficiency.

• Technology: These advances, and digital changes, make it easier for employees at

national branches to collaborate and evaluate leadership capabilities with a clear

vision, synthesizing data faster to make decisions. Vietnam's digital conversion

businesses are becoming more effective (NgocBich, 2022). By boosting worker

productivity by 30–40%, digital transformation may support 20–30% GDP growth.

Digital transformation can increase average corporate profits by 55%; save up to 50%

in managerial and human resources costs; and save 30-40% in time; while enhancing

customer experience, inter-departmental collaboration, and leadership information

management capabilities (NgocBich, 2022). Thanks to TH True Milk's agility in digital

transformation and resource optimization. TH True Milk products have reached almost

45% of the fresh milk market in Vietnam. According to Kantar's Brand Footprint 2022

research, TH True Milk is one of the top two milk brands and milk products preferred

by urban consumers (BaoAnh, 2023). Using more and more technology for remote

management and monitoring, TH True Milk’s leadership has a clear vision of digital

transformation. The leaders of TH True Milk need to actively take the initiative of digital

transformation and communicate its strategic importance to the HR department and

the organization as a whole. This can fix the vulnerabilities and review external digital

consultants. As well as encouraging employees to use data-based information to

make decisions. Therefore, investments are needed in data management methods,

tools, and platforms to analyze data and ensure compliance with data privacy laws.

➢ In view of the ever-changing technological progress, TH True Milk is encouraged

to create a team whose mission is to capture all the current technological trends.

In-depth investigation and re-training of new employees, in line with the

proposed digital initiatives. In addition, regular surveys of employee

effectiveness on digital strategies are needed. Give competitive salaries and


benefits to attract and retain digital talent. Implement employee introduction

programs to harness existing employee networks and identify potential digital

professionals. Keeping up with the trend will no longer be too much of a burden

on the staff with this strategy and everything will become clearer in the

departments. For the rapid growth of the economy environment, TH True Milk

needs to budget and allocate adequate resources for digital transformation is

crucial. Including budget disbursements and expenditure reports, you need to

work with the finance department to ensure that you have enough funding for

your digital transformation plan. Provides evidence of how these investments

have worked and how digital capabilities have improved. In addition, the need

to engage the staff and the organizational culture is very important. Cultivate a

culture of innovation and continuous learning. Use feedback mechanisms to

address employee concerns and celebrate success. Present cases where an

employee's idea leads to improvement. TH True Milk is always focused on

improving the quality of its employees rather than discouraging customers from

reducing their needs. Follow the proven technological trends of the technology

section. This may not be the best solution, but it will relieve stress for employees.

III. The proposal of motivation plans to engage employees in the

Digital Transformation plan

Motivating employees to actively participate in TH True Milk’s Digital Transformation is

essential to the success of the digital transformation plan. These motivation plans will focus

on Learning and Development, as well as Reward plans, to ensure that employees are aligned

with the organization's digital goals and actively contribute to the transformation process.

3.1 Learning and development

The goal of learning and development (L&D) is to make sure that firms have the educated,

competent, and motivated employees they require (Armstrong, 2020). This entails facilitating

employees' ability to gain knowledge and skills through personal experience, interpersonal
connections, coaching, mentorship, and direction from line managers and others, as well as

through self-managed learning and learning opportunities offered by the business

(Armstrong, 2020). There are five types of Learning and development:

Employee Orientation:

Noe et al. (2019) state employee orientation is an organized program for introducing new

employees to their jobs, and their peers, and facilitates adjustment to the new environment.

TH True Milk demonstrates the importance of providing employees with a decent level, of

career advancement opportunities and building a diversified, equal, transparent, safe, and

efficient working environment (TuongAn, 2022). New employee orientation is the perfect

opportunity for a company to make a good impression on a new employee. In addition, it

saves a lot of time after working with a new employee when human resources cover all

aspects of business in one direction. HRM must put in place a counseling program in which

seasoned workers are tasked with serving as counselors to new hires. Throughout the

acclimatization process, mentors may offer support, provide guidance, and answer queries

for newcomers. In order to make direct orientation more culturally relevant and job-specific,

HRM must invest in digital training solutions that streamline administrative processes and

allow workers to complete paperwork procedures and online training modules before their

first day of work. The difficulty may be solved and new hires can be empowered to contribute

to the success of the firm by applying these suggestions and adapting the orientation process

to the unique requirements of the organization.

On-job training:

On-the-job learning is defined as the mental actions and processes in the workplace that lead

to individuals acquiring job-related skills, knowledge, behaviors, and attitudes (Bering &

Doornbos, 2003). Every year, TH True Milk organizes strategic and systematic training

programs for employees with high qualifications and skills to be able to build a solid

foundation for the sustainable future of the Group. It's a necessary job, and it's also a

manager's job. On-job training helps HRM better manage, can reduce the number of
employees leaving the company, and cut some unnecessary costs. Employees can not only

learn from their colleagues but also from speakers and experts invited by the company. A

typical employee attends 39.3 hours of training annually. The average manager takes 20

hours of training and 10 hours of coaching. This is indicative of the "culture of learning" that

exists in TH (Vtv, 2022). On-job training does, however, have certain common drawbacks, such

as narrowing vision and lowering external environmental adaptation. In this case, on-site

training is overcrowded and uncontrollable, and there will be a number of employees who

feel depressed and tend to leave the organization. The digital transformation strategy for TH

True Milk is supported by the on-site training program. The True Milk Company offers hands-

on training sessions for the ERP application personnel of the digital transformation strategy

(Misaamiss, 2022). Organizations can avoid some problems and save money when workers

can create a digital plan instead of hiring outside help.

Off-job Training:

Blanchard and Thacker (2010) state that off-job training is when employees leave the

workplace to participate in training sessions, conferences, seminars, or workshops to

advance their knowledge and abilities. TH True Milk is at the forefront of its economic

partnership with Australia (Thanh. L, 2023). HRM at TH True Milk can choose the option of

sending staff members to affiliated businesses so they may learn, intern, get experience, and

experience different cultures. Employees may learn about the workplace culture and provide

positive traits to the company. Working at TH True Milk is always a professional experience

with a world-class staff and interaction between several professionals from both domestic

and foreign sources (MinhThu, 2023). TH also organizes programs to improve the health of

its employees, such as a weekly detox program, smoking cessation and reduction counseling

program, green lifestyle program, participation in sports activities, exciting movements, team

trips, and community charity (MinhThu, 2023). This approach benefits employees from a

broader and more practical understanding. HRM may emphasize connecting employees

more. Besides, the organization needs to take note of the disadvantages of this method.

When an employee is exposed to a new environment, it is more likely that the employee will
leave the old organization to move to the new one. This partnership of TH not only helps each

other economically but can also acquire new knowledge for employees and create a

successful digital transformation campaign.

E-Learning and Blended Learning:

The word "e-learning" refers to formal online training and Internet technology for learning

creation, delivery, facilitation, and administration (Armstrong, 2020). During the -19ndemic,

with the online learning management system being deployed and continuing, TH Group

employees have access to online training and development opportunities (HaiYen, 2020). This

makes it possible to save costs while helping employees to absorb efficiently with highly

interactive features. Moreover, this form allows the organization to connect with foreign

experts in a convenient way (HaiYen, 2020). Today, Vinamik is the leading dairy company in

Vietnam. However, TH is willing to take up the position of Vinamilk by taking a high market

share. Thus, the staff's knowledge and the organization's strength will be strategic for TH True

Milk to compete in the market. TH True Milk is constantly innovating and launching new

products to compete with its competitors. HRM must be flexible, resilient, and catch up with

trends quickly. TH True Milk's transformation plan is to expand sales through e-commerce

platforms such as Grabmart, NOW, and Baemin, VinID (Suckhoedoisong, 2021). By

implementing these proposals, TH True Milk can overcome the challenges of online learning

initiatives and create a more effective and attractive learning environment for employees.

This, in turn, will support the growth and development of the organization.

Training Evaluation:

According to Noe et al. (2019), training evaluation is the process of gathering the data

required to assess whether training is effective. The corporate director of human resources

at TH stated, "People are at the center of all of TH's operations." One of the centerpieces

of TH Group's human resources strategy is physical and mental health care for workers, in

addition to pay, income, work environment, training, and human development programs

(MinhThu, 2023). With regular direct interactions with coworkers, subject matter experts, and
leaders, employees will have the chance to grow personally and learn from their own work

while being supervised by their superiors. Additionally, there are a variety of activities for

developing human resources, from practical to open-minded, culminating in coaching

sessions and training programs for staff members (MinhThu, 2023). HRM needs to identify

specific KPIs related to training to improve productivity and reduce error. In addition to

quantitative assessments, HRM needs to collect qualitative feedback from trained staff. Ask

for their opinion on the relevance, effectiveness, and applicability of the company's training

content. With regard to digital transformation, it allows HRM to automate data collection and

analysis for the company.

3.2 Rewarding Plans

A reward system, in the opinion of Armstrong & Taylor (2020), is a combination of extrinsic,

material, and intangible advantages offered to employees in return for their contributions.

The goal of the incentive plan's design is to function equitably, inspire personnel, and meet

organizational needs. There are two types of rewards, financial and non-financial. TH True

Milk is flexible in applying both monetary incentives and non-financial honors to attract

employees and retain talent.

3.2.1 Financial Rewards

'Best Asian Workplace 2021' is the award that TH Group, the owner of the brand TH true

MILK, has just been honored by the leading Asian HR magazine (ThanhHa, 2021). The

workplace of TH True Milk is joyful and creative, and the staff members are given training

opportunities. Even on holidays and New Year's Eve, TH True Milk pays its employees.

Depending on the role, each employee receives 13 months' pay annually. There are many

promotions such as holidays, insurance, and discounts when buying company products. With

this development orientation, through a variety of activities, TH Group employees are cared

for and provided with the best welfare policies, including study/training opportunities paid

for by the Group (Vtv, 2022). That's what motivates the staff to try harder. More financial

incentives must be offered by HRM to encourage employees to actively participate in the


digital transformation strategy. Performance-based evaluation incentives and stock options

linked to digital milestones. The primary type of compensation is a bonus (symbolic wage;

income is a bonus determined by the volume of work completed). With this type of

compensation, workers will perform better since they will gain a variety of perks.

3.2.2 Non-Financial Rewards

Non-monetary encouragement involves more aspects of moral encouragement than

monetary rewards, which must be accurately defined. TH Group organizes activities with the

purpose of health training such as the "Run to the Sun" tournament to engage internal

employees, and dedicated service to be consistent and creative in the work (MinhThu, 2023).

It is also an activity to encourage the spirit of company employees to work together to

improve their health outside of working hours. TH True Milk should allow employees to be

flexible in terms of working hours and location. Promote healthy work-life balance by

arranging flexible work or remote work for digital roles. Some employees decide to work

certain days of the week, for example, if their home office is unsuitable or if they wish to

network with and pick the brains of their neighbors' coworkers. However, some employees

would rather work from home or at a coffee shop since it gives them more freedom to

produce original content for the business. Flexibility in employment positions can benefit

both individuals and companies. Less stress, more job satisfaction, better health, and cost-

and time-savings on travel will all benefit employees. HRM continuously builds incentive

campaigns for employees in the company. Instead of recruiting people who are financially

costly, HRM will set up a reward policy that is different from its competitors and a more

suitable welfare scheme to stimulate and search for talent in its internal HR team. Moreover,

this also increases the percentage of employees who are long-term attached to the company.

With the current digital transformation plan, they need breakthroughs and creativity from

their employees. The work of the digital transformation strategy can be connected to the

criteria for rewarding personnel.


3.3 Illustrate and critically evaluate how the application of motivation plans

(including Learning & Development, rewarding plan) affect the TH True

Milk Digital Transformation (DX) plan

TH True Milk, a Vietnamese dairy company, has embarked on a journey of digital

transformation to modernize its operations and adapt to the changing dynamics of the

market. TH’s digital transformation plan from upgraded SAP to SAP S/4 HANA has enabled TH

True Milk to apply high-tech achievements and the latest generation of management science

to create breakthroughs in productivity and quality of products and services. Release staff

from many direct activities, and increase labor productivity while ensuring implementation of

the Government's directives on disengagement (AnhLan et al., 2021). First, Learning and

Development, learning and development programs are essential in equipping employees

with the skills and knowledge they need to support digital transformation. TH True Milk puts

people above profits and invests actively in its staff to help them develop their abilities and

discover their full potential (Vtv, 2022). TH Group covers the entire cost of the course on

learning and training opportunities, staff being cared for, and providing the best welfare

policies (Vtv, 2022). This approach is effective, but there may be limitations if it is not in line

with the organization's goals. The training needs to be tailored to suit the specific needs of

the company and employees, with clear key performance indicators (KPIs) to measure the

impact of the training on TH True Milk's digital transformation plan. Secondly, the reward

plan is essential to motivate employees to be more motivated to actively engage and

contribute to the journey of digital transformation. Employees who need recognition,

financial encouragement, and opportunities to advance their careers are part of the reward

plan. At TH, not only do we create opportunities to improve our professional skills, but every

voice of our employees is always heard by our leaders (Vtv, 2022). Promoting job

transparency, 100% of employees are regularly evaluated for their performance and career

development. Every effort of each individual is always recognized, which is the driving force

that nurtures creativity in every staff member (Vtv, 2022). While reward plans can motivate

employees, they need to be carefully designed to ensure that the incentives are in line with
the objectives of TH True Milk’s digital transformation plan. The problem to consider is that

having too many financial incentives may cause employees to prioritize short-term gains at

the expense of the organization's long-term strategic objectives.

IV. Determine strengths and weaknesses of HRM practices to

make recommendations for improving sustainable

organizational performance

4.1 The strengths and weakness of HRM practices (Learning and

Development, and Rewarding policy) of the TH True Milk

4.1.1 The strengths and weakness of TH True Milk learning and development policy

The practices of human resource management (HRM), which include learning and

development policies, are essential for improving employee performance and skill. The

learning and development policy of TH True Milk has the following strengths and weaknesses,

all of which are substantiated by data:

STRENGTHS:

• Investment in Employee Skill Enhancement: TH True Milk invests in a variety of

training programs, seminars, and online courses for employees. In addition, TH also

makes it possible for employees to exercise together in the middle of the hour,

together daily through the “Happy Hour” and the “detox” program, etc (HongKieu,

2022). This demonstrates the company's commitment to improving knowledge and

skills and interconnecting its workforce. These initiatives can generate a highly skilled

and more adaptive workforce.

• Enhanced Innovation and Adaptability: HRM’s Learning and Development initiatives

can encourage employees to innovate and adapt more to the environment. TH has

completely changed the way of thinking about only going to college to become a

manager and get a high salary (Vtv, 2022). In my opinion, Mr. Su, the mechanical team

supervisor said that the improvements were made by the members of the team who
were mindful of the profession, always kept the spirit of work and learning, and always

motivated to move forward together. Leaders must pay attention and wholeheartedly

support ideas from employees to come to completion (Vtv, 2022). By acquiring new

skills and knowledge, employees are better equipped to adapt to industry changes and

contribute new ideas to the company's digital transformation effort.

• Support for Professional Growth: Through a statement from an employee at TH True

Milk, Mr. Linh said, "Thanks for participating in the Career Road Map 2020 training

program – an important training program for any employee who wants to advance in

the work that is currently working as Sales Supervisor in the Son La region comprising

a distributor, 6 employees, and 720 stores." (Vtv, 2022). As you can see, TH has

completely changed the thinking that college is the only way to be considered as a

manager, with a high salary (Vtv, 2022). HRM creates a learning and development policy

that supports employee career advancement leading to higher job satisfaction and

retention. Investing in staff development is an essential component of a strong HRM

strategy.

WEAKNESSES:

• Budget Constraints: With the belief that "people make business", TH Group invests

actively in its employees to help them develop their abilities and discover their full

potential (Vtv, 2022). However, the company's budget may be limited. Training

programs become less varied and of worse quality as a result. As you can see, well-

trained employees are valuable assets and benefits often outweigh costs.

• Overemphasis on Technical Skills: Through its organized training programs, TH

invests in highly specialized technical skills. However, it's possible that the company

ignores equipping its employees with soft skills to fit their culture and commitment to

sustainability. Soft skills are just as crucial for a digital transition to be successful.
4.1.2 The Strengths and Weakness Of TH True Milk Rewarding Policy

As part of TH True Milk's HRM practices, evaluating its Rewarding Policy entails analyzing its

strengths and weaknesses in order to provide suggestions for enhancing sustainable

organizational performance:

STRENGTHS:

• Financial Stability: Even in the midst of the COVID-19 epidemic, TH Group has had

double-digit growth, consistently introducing the greatest new goods for customer

demands and health (ThanhTu, 2022). According to the dairy industry's most recent

research, 100% of consumers are aware of the TH True Milk brand, and it now has a

leadership position in the fresh milk sector with a market share of around 45%

(ThanhTu, 2022). The organization's financial stability shows a strong reward policy,

which can boost employee confidence and reassure investors.

• Performance-based rewards: In TH's work environment, transparency is always a

priority. Conduct regular performance and career development assessments for 100%

of employees in the company. That shows that each individual's effort is always

recognized by the leader and motivated to foster creativity in each staff member (Vtv,

2022). The policy, combined with rewards based on achievement, motivates highly

performing employees to deliver exceptional results continuously.

• Employee Satisfaction: TH True Milk noticed a marked improvement in sustainability

indicators after implementing its reward policy. The representative said TH attaches

great importance to the elements of sustainable development, with products entirely

from nature and for public health. TH True Milk introduced its eco-friendly products,

the TH True Mart product bags and the TH True YOGURT yogurt spoon made from self-

destructing bio-plastics (ThanhDuong, 2019). Encourage clients to live sustainably and

spread the word about preserving the environment and reducing waste, particularly

plastic garbage. The events that TH arranged had a positive outcome, particularly when

it came to getting dads, moms, and kids involved and paying attention (ThanhDuong,

2019). By doing this, TH hopes that its consumers will contribute to spreading
environmental consciousness and creating a world with less pollution and plastic waste

(ThanhDuong, 2019). When employees feel appreciated through projects and

rewarded through TH’s reward policy, their job satisfaction tends to be higher, leading

to reduced dropout rates and increased organizational sustainability.

WEAKNESSES:

• Non-financial rewards are limited: In the midst of a complex pandemic, all of TH

Group's human resources, welfare, and remuneration policies have been kept stable

and improved (TranTrung, 2020). However, relying only on financial rewards can lead

to employee exhaustion and dissatisfaction due to a lack of non-financial recognition.

Non-financial recognition is essential toining health, cohesion, and overall job

satisfaction, especially in the digital transformation of the company.

• Short-Term Focus: Employees at TH are cared for and provided many benefits such

as a talent attraction policy, attractive remuneration regime, opportunity to raise

wages; excellent health insurance scheme, periodic health examinations,

study/training opportunities paid by the TH group, many activities meaningful physical

and mental health care for employees (TranTrung, 2020). This can affect over-focusing

on short-term financial rewards that may not be in line with the organization's long-

term goals, such as its digital transformation plan.

4.2 Some recommendations to improve the sustainable organizational

performance of the TH True Milk

4.2.1 Make recommendations for improving sustainable organizational

performance learning and development policy

The following suggestions, together with their supporting data, should be taken into

consideration in order to enhance TH True Milk's learning and development policy's

sustainable organizational performance:

• Diversify Training Programs: Through the unceasing effort to build a core capacity,

carrying in itself the qualities of dedication to serving – Integrity – Creativity –


Implementing the effectiveness of human beings (Vtv, 2022). Every year, TH organizes

strategic and systematic training programs for employees to make a positive change

for the growth of the Group (Vtv, 2022). Many other staff members have been given

free training and the opportunity to develop their careers TH brings. However,

recommended HRM to do so expand the range of training programs to include

technical and soft skills training as well as leadership development programs. This

enables employees to adapt better to the rapidly changing work environment of digital

transformation and meet a wide range of job requirements.

• Continuous Improvement: To get a glass of fresh milk TH True MILK meets

international standards right in Vietnam, TH has adopted modern technology, the end

of the world in dairy cattle concentration, processing, and milk distribution with a

closed production process "From green pastures to clean glasses of milk"

(Kinhtetrunguong, 2018). TH True Milk has changed its product policy to meet the

changing needs of markets and customers. Continuously creating a variety of food milk

products including organic, sugar-free, mixed milk, and many other options to satisfy

the preferences of a wide range of customers (Kinhtetrunguong, 2018). Encourage

HRM to regularly review and update the Learning and Development Policy to ensure

that it ensures that TH True Milk employees are consistent with industry trends,

emerging technologies, and changing organizational needs. New and updated training

programs help employees develop new skills and improve work performance. This can

lead to more creativity and positive contributions to the organization.

4.2.2 Make Recommendations for Improving Sustainable Organizational

Performance Rewarding Policy

Improving long-term organizational success requires improving the Rewarding Policy. The

following suggestions, backed by data, are for TH True Milk's Rewarding Policy:

• Tailored Rewards: TH has achieved the establishment of a strong corporate culture,

implemented an effective human resources management policy, offers appealing

employment benefits, and frequently hosts engaging internal events to strengthen


employee unity (Hongkieu, 2022). Furthermore, employees who share similar health-

oriented hobbies throughout the organization are connected through various groups,

including such as tree planting, cycling, jogging, badminton, and book clubs (Hongkieu,

2022). However, it should be recommended to adjust the reward to suit the interests

and needs of each employee through surveys. HRM needs to create a variety of

rewards for employees to choose from. In addition, there is a need to organize vacation

programs for the best employees. This could be a corporate trip, a tour contest, or an

exciting experience to reward an impressive employee.

• Performance-Based Rewards: The importance of job transparency is highly

appreciated at TH, where all employees are regularly evaluated for their performance

and career development (Vtv, 2022). Every effort of the individual is always recognized,

which is the driving force that nurtures creativity in every employee (Vtv, 2022). In the

context of its digital transformation plan, TH True Milk recognizes the importance of

performance evaluation and feedback but also acknowledges the need for a stronger

performance-based reward system. By implementing a clear performance-based

reward policy, HRM is encouraged to create a more efficient and motivating

environment, linking the individual's efforts to the organization's goals and success.

V. CONCLUSION

In short, the HR transformation plan to optimize employee success opportunities and turn it

into a sustainable investor has been re-presented, focusing on the influence analysis of

internal and external factors and plans to encourage and motivate employees in a variety of

ways, not only helping employees grow but also keeping them in the company to continue

working and developing the company. As the HR administrator of TH True Milk, the strategies

presented will help the company move further on the path of digital transformation and

excellence. In the future, TH True Milk will be even more successful with its digital

transformation plan and more profitable for businesses, benefiting consumers.


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