Ineffective HR management at Nam Long Investment Corporation - NLIC

Abstract

In the past years from 2013 until 2016 Nam Long Group has had labor cost increasing year by year that affected profit to whole group in business then the organization need to be considered about its competitive advantage in the specific case of human resource management effectively in term of strategic human resource management alignment with HR practices within the Group. The interviews were proceeded to 9 Subsidiaries of Nam Long Group with 5 directors and 4 HR Managers. In which the depth interviews have been done with the 3 key companies of the Group like NK, NLTF, NLS to find out the supporting ideas for problem identification and solving the problem. Once employees leave a company this issue will cost company certain expenses. Those expenses are recruiting cost, training cost for hiring a replacement including advertising cost, administrative cost, interviewing cost…The above cost will contribute to make the profit of company is reduced. Sales staff who deal with customers day to day. Especially, high performance salespersons who have good relationship with customers whenever they leave they will bring experience curve out of company. New staffs will take time to make acquaintance to new environment, the speed of work is slow down which affects the productivity of sales not only for filling gap of resigned staffs but morale of existing sales staffs. The services to customers are not continuous to affects the repeat orders and loyalty from customer by providing inconsistent, un-high-quality service with well-trained staffs. All of these things will make customers turn into another competitors. Therefore, the revenue of company is decreased. The above-mention issues have been affected company productivity as company can’t utilize the experience curve from employees and availability of employees to make sure constant productivity.