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A framework of significant human resource management practices in Vietnam

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This paper aims at conceptualizing a framework of human resource management practices (HRMPs) that will work effectively in Vietnam. qualitative research is applied, based on a survey of 388 companies located in Ho Chi Minh city, Vietnam. | 46 Tran Kim Dung & Truong Thi Lan Anh / Journal of Economic Development, 24(4), 46–63 A framework of significant human resource management practices in Vietnam TRAN KIM DUNG University of Economics HCMC – tkd@ueh.edu.vn TRUONG THI LAN ANH Institute of Management and Technology Promotion – anhttl@imt.vn ARTICLE INFO ABSTRACT Article history: This paper aims at conceptualizing a framework of human resource management practices (HRMPs) that will work effectively in Vietnam. qualitative research is applied, based on a survey of 388 companies located in Ho Chi Minh city, Vietnam. HRMPs in Vietnam can be measured using seven criteria. Apart from the four traditional HRM functions, which are recruitment selection, training development, performance appraisal and compensation, HRMPs in the Vietnamese context involve three additional criteria: leading change and motivation, both based on traditional soft practices, and talent management, which is based on contemporary hard practice. The validity and reliability of the HRMPs has been confirmed. It was found that the role of HRMPs explains 43 per cent of the variation in a firm’s business performance. The findings imply that HRMPs in Vietnam, despite lagging behind global trends, are on track to catch up with them. The trend of adopting HRMPs in Vietnam continues with the emergence of traditional HRM soft practices and contemporary HRM hard practices. The typical framework of most common HRMPs in Vietnam implies that there is a need to design appropriate training programs for both HR professionals and line managers. Received: Mar. 21, 2017 Received in revised form: July 04, 2017 Accepted: Oct. 25, 2017 Keywords: Business performance Human resource management practices Vietnam Tran Kim Dung & Truong Thi Lan Anh / Journal of Economic Development, 24(4), 46–63 1. Introduction Traditionally, h uman resource management practices ( HRMPs) have focused only on the factors that distinguished the HRM functions from the .