1.1.1.
1 The concept of human resource
Human resources are all the people's knowledge, skills, experiences, abilities, and creativity
relevant to the growth of each person and the nation, according to the United Nations (IRDM,
2021). As a result, in addition to other forms of physical capital like financial capital,
technology, and natural resources, human resources are also considered a source of wealth.
According to (ADP, 2020), any individual who receives payment for providing expertise or
information that aids a company in achieving its objectives is a human resource. People typically
demand the most management compared to other resources, like machinery or facilities, which is
why many firms offer specialized HR services.
There are still many varied perspectives on human resources and human resource development
today due to various methodologies. However, from the standpoint of economic development,
the population within the designated age range that can engage in labor is known as "human
resources." Human resources can be categorized into two categories: quantity, which refers to the
total number of people of working age who are compliant with state regulations and the amount
of work time that can be derived from them, and quality, which refers to the workers'
professional and physical well-being as well as their knowledge and skills (Nguyen, 2014).
As a result, when seen from various perspectives, the term "human resources" might have many
different meanings, yet when summarizing all of the ideas mentioned above, they all have
particular basic contents:
Human resources are the key component of the productive force holding the top place in society.
It is an essential and unstoppable resource for development that cannot be taken into
consideration alone, not just in terms of quantity or quality, but also in terms of a combination of
the two. It is defined as not only the segment of the population of working age but also
generations of individuals with strength and capacity for natural and social improvement.
[Link] Human resources at Commercial Bank
Without human resources, no organization's operations can function effectively. Human resource
management is therefore an essential component of all companies. The effective utilization of
human resources is a key factor in determining an enterprise's success or failure, which is true for
all organizations and businesses, including commercial banks in Vietnam, especially given the
current climate of global rivalry and integration.
At commercial banks, human resources are the elements that actively contribute to strategic
planning, establishing plans and programs, constructing business processes, and acting as the
guiding principle for all business and commercial banking activities (Dang, 2018)
Also, as digital technology has become more advanced, there has been a surge in cybercrime,
which has led to security flaws and indirectly created more opportunities for high-tech criminals
and hackers to operate more actively. Network security infrastructure is crucial for the economy
due to the ongoing growth of derivative financial products and cross-border financial services in
the era of integration, both for commercial banks in particular and the overall national economy.
Hence, the future provision of banking products and services will require the development and
improvement of the quality of commercial banking human resources in terms of banking
professional qualifications, digital technology operation abilities, and compliance. The
Vietnamese commercial banking system has been under tremendous pressure due to the
technological environment.
1.1.2 The concept of human resource management
The definitions provided by academics for HRM vary, ranging from a short and simple
explanation to a lengthy and detailed exposition. According to (Abdullah, 2009), HRM is the
"process of managing people skills to accomplish organizational objectives," to put it briefly.
The processes of selecting and recruiting people, paying them and offering benefits, enforcing
labor and employment regulations, and monitoring their safety and health at work are all seen as
components of human resource management.
As (Armstrong, 2006, p.3) stated in his book, the management of an organization's most valuable
asset, the employees who individually and collectively contribute to the fulfillment of its goals, is
referred to as human resource management.
a) Schuler's 5P Model
In order to get the best results for both employees and employers, the 5P's HR Model was
developed. It is an essential component of organizational development and performance
management. As its name implies, the foundation of this HR paradigm is composed of five
essential elements: goals, principles, procedures, people, and performance (Polc, 2023).
● Human resource philosophy
Any successful organization must have a clear understanding of how it views its people
resources, the role they play in overall business performance, and how they should be handled
and managed. The HR philosophy should also establish clear performance standards for
employees and offer advice on how to manage them effectively. The human resource philosophy
should also establish clear performance standards for employees and offer advice on how to
manage them effectively.
● Human resource policies
Every corporation needs them because they provide clear guidelines on how to manage issues
relating to people in the workplace, ensuring uniform and equitable treatment across the board.
Moreover, HR policies can help define an organization's culture, increase employee engagement,
and foster loyalty by giving important insight into the organization's beliefs and habits.
● Human resource programs
HR programs are created to support organizations in achieving their strategic goals by utilizing
specific programs, activities, and systems that improve organizational capacity, build healthy
connections, and increase workforce productivity. Organizations can establish a work
environment that supports the achievement of their intended business objectives and offers
employees the chance to advance their careers by implementing focused HR programs.
● Human resource practices
HR practices include a broad variety of tasks and obligations, including hiring and resource
allocation as well as employee interactions, training and development, performance
management, and incentive administration. Together with ensuring that they receive the proper
benefits and entitlements, HR procedures also entail ensuring that employees are treated fairly
and equally. And lastly, this department is accountable for monitoring personnel data, processing
payroll, and producing precise and up-to-date reports.
● Human resource processes
Every corporate organization must have HR processes because they provide a disciplined method
for managing human resources. In order to assure compliance with legal requirements, enhance
organizational effectiveness, and foster a healthy work environment, HR processes might also
involve reviewing and evaluating current HR policies, procedures, and practices as well as
implementing new ones.
Moreover, by promoting employee involvement in the process of defining their responsibilities,
the connection between HR strategy and operations is enhanced. The development of the
company’s business strategy can be influenced by the HR department through the process of
strategic human resource management.
1.2 Factors affecting human resource management
● Government regulations