5035 GBD1101B Assignment 2 NguyenPhanThaoMy GBD220121
5035 GBD1101B Assignment 2 NguyenPhanThaoMy GBD220121
5035 GBD1101B Assignment 2 NguyenPhanThaoMy GBD220121
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I. INTRODUCTION ........................................................................................................................ 5
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
2.2 Discuss the key external and internal factors that affect HRM decision-making,
development ..............................................................................................................................14
2.3 Critically evaluate key factors affecting HRM preparation for the Digital
3.3 Illustrate and critically evaluate how the application of motivation plans
(including Learning & Development, rewarding plan) affect the TH True Milk Digital
4.1 The strengths and weakness of HRM practices (Learning Developing, and
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
V. CONCLUSION ..........................................................................................................................31
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
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
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
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
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
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
according to the strategy's goals. The goal is to enhance customer experience, efficiency,
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
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
In 2021, in order to sustain development and meet the need to expand the manufacturing
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
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
2.1 Investigate the external and internal factors that affect HRM decision-
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).
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
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
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
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
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
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
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.
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.
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
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
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
have access to online training and development opportunities (HaiYen, 2020). The
deployment of new HRM technologies, training programs, and reporting on job changes
HRM.
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
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
development for current staff. The business may effectively manage economic issues while
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
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
2.2 Discuss the key external and internal factors that affect HRM decision-
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
candidates that match the company's sustainable cultural and ethical values. HRM initiatives
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
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
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
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
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
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
• 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. 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
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
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
the organization as a whole. This can fix the vulnerabilities and review external digital
tools, and platforms to analyze data and ensure compliance with data privacy laws.
to create a team whose mission is to capture all the current technological trends.
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
work with the finance department to ensure that you have enough funding for
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
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.
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.
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
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
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
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
Off-job Training:
Blanchard and Thacker (2010) state that off-job training is when employees leave the
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
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
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
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
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
'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
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.
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).
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
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
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
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
organizational performance
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,
STRENGTHS:
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,
skills and interconnecting its workforce. These initiatives can generate a highly skilled
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
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
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.
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
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,
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
indicators after implementing its reward policy. The representative said TH attaches
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-
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
rewarded through TH’s reward policy, their job satisfaction tends to be higher, leading
WEAKNESSES:
Group's human resources, welfare, and remuneration policies have been kept stable
and improved (TranTrung, 2020). However, relying only on financial rewards can lead
• Short-Term Focus: Employees at TH are cared for and provided many benefits such
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-
The following suggestions, together with their supporting data, should be taken into
• Diversify Training Programs: Through the unceasing effort to build a core capacity,
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,
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
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
(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
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
Improving long-term organizational success requires improving the Rewarding Policy. The
following suggestions, backed by data, are for TH True Milk's Rewarding Policy:
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
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
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
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