Pieces of advice for start-up about Human Resource management

Issues

Human resource management is an important functional activity that has a great impact on the success or failure of businesses, especially start-up businesses.

However, start-up businesses with limited resources, especially the limitation of financial resources, are not really interested in human resource management

In this article, the author will discuss some important issues that entrepreneurs should be noted during the start-up period.

Human Resources Management is one of the biggest issues of start-up

1. Human resource management based on personal experience and subjectivity

In the early start-up years, business owners often focus on technology and market. Business owners in the start-up phase must simultaneously take care of multiple tasks from strategic issues to technology, market, finance, accounting, personnel, etc.

This process suitable for the requirements of fast, flexible, low-cost, appropriate handling of problems with organizational structure and uncompleted personnel.

But in return, in the start-up phase, the enterprise management capacity of the business owner is considered as a too tight shirt compared with the goal and development ambition of the business owner himself. Therefore, a lot of business problems arise and it’s hard to breakthrough or have a systematic solution because business owners face difficulties in making decisions.

Many startups manage their employees by personal experience and subjectivity

The most remarkable thing here is that very few business owner recognize the limitations of them-self and take action to solve it like learning, hiring expert, etc.

If the business owner overcomes himself to learning and has a reasonable solution to complement his own limitations on human resource management, the success probability of the business will be much higher. Because after all, all the causes of business failure also come from the lack of qualified personnel to run and drive businesses with lead to unadaptable to market changes.

Startups prevent to overcome the safe zone to study about human resources will soon fall

2. Unclear in roles and weak in manage conflicts between co-founders

Many people choose to start a business together. Group start-ups help business owners deploy ideas, promote each other’s strengths, mobilize resources and share risks. According to “Startup Insider”, most successful private enterprises have a starting point from a start-up group.

But everything has the other side of the coin. Risk comes from conflicts between co-founders because of differences in views, disputes about benefits and failure to manage changes in decision-making methods appropriate to development period.

Unclear in role will lead to conflict

In the beginning, when things were difficult, co-founders were quite united and bite the bullet together; but when the business is prosperous, having good financial results is also the time when conflicts arise. Many co-founders have to part ways in the early years because of personal conflict in executive management.

This problem comes from the basic reason is that the management system is not running well. Co-founders not assigned roles and clear agreement with each other to management. The management process does not change from “instinct” to the “system”.

The management system not running well will cause company serious damage in long-term

This issue requires co-founders to agree with each other right from the beginning days when starting a business about management method to prepare for future periods. Because when businesses go into orbit, the company needs to have a leader who has ability and capable of making decisions.

3. Lack of solutions to retain talents

The reason usually given is that the start-up period is lack of resources, especially with finance, so it’s difficult to attract talents. Therefore, enterprises tend to hire and use manpower with low salary, and with capacity sometimes not meet the requirements.

This is a big mistake for ambitious start-ups want to have fast growth due to innovation, and want to attract investors.

Attracting talents is one key point for a successful start-up. There are two elements that impact the ability to attract talents:

  • Owner do not have capacity to use talents:

When working with an expert employee, owner easily loses their vision and cannot control the talent. Moreover, lack of HR management skill can also make personnel to discouraged with their job and soon will lead to giving up.

  • The attractiveness of the start-up idea:

When the start-up idea is clear and has a high potential to succeed, this is the key to attract talents. In opposite, if you are not sure about your vision and future, candidates will feel not stable and hard to attract talents to become your companion.

Retain talents and they will cover you in storming days

There are diversity solutions for this issue, most start-up use company’s stock to attract talent employee to join them in running business. With creative or technology start-up, the company’s value after 5 years may multiply a thousand or million times the present value.

Another regular solution is to hire or collaboration with experts. This will help start-up to use the expert skills and knowledge with a very low fee. Vision and passion of startups also receive assistance and support from experts.

4. Lack of invest in system and building corporate culture

Due to the size of small businesses, many businesses do not focus on recruiting specialized personnel to manage human resources; as well as lack of attention to standardization of processes and human resource management systems.

Invest in your system and company’s culture from the beginning, and you will never regret about that

Inadequately focused activities include recruitment, assessment regulations, application of KPI systems, wages and benefits, labour regulations and corporate culture … Due to lack of systematic, works are handled much according to the affair and affection.

In particular, common problems arise in terms of employment contracts, job vacancies, intellectual property violations, loss of business secrets due to employee quit. On the other hand, company culture is also a strong weapon to keep talents by your side.

5. Loss the control of the business due to lack of understanding of corporate governance

Enterprises in the start-up period have a large growth and high investment demand. The main capital mobilization solution of enterprises in the start-up phase is by calls for funding to increase capital and expand owners.

However, many business owners refuse to develop and accept strategic investors because of the risk of losing control of the business. In contrast, many business owners chose wrong strategic investors, so they quickly have to transfer control of their own business, losing their “spiritual children”.

Be smart for not become a sheep and losing your spiritual children, cause the world out there is full of wolves.

The solution is that business owners need to consult from legal, human resource experts, and study about corporate governance.

There are many possible solutions. First of all, you need to choose the right investor.

The right strategic investor often does not require control of business management because they respect the holder of the business idea and believe that only when this person continues to run the business than the business can succeed.

And finally, there are many forms of investment contracts to attract more shareholders to contribute to capital. Shareholders enjoy preferential dividends, but still, can maintain voting and veto rights.

Cre: vceo.vn

How to Deal With Job-Search Depression

Nowadays, people are wrapped up in work too much that they forgot “you are more than your job”.

Looking for a new job but having zero luck getting hired can be, put it lightly, incredibly demoralizing.

As it turns out, “the data supports the conventional wisdom,” said Dan Witters, a principal and research director at the Gallup National Health and Well-Being Index.

While research shows that people experience an increased sense of well-being just after losing their jobs, that trend reverses if they’re still hunting after 10 to 12 weeks. On top of the obvious financial stress that comes with being unemployed or underemployed, these groups also suffer from worse physical health, with rates of depression rising among the unemployed the longer they go without finding work.

Feeling depressive for job search? Let’s we help you to solve it

The solution to job-search depression isn’t as easy as hitting the pavement and sending out more résumés. Even strong candidates aren’t guaranteed success, creating “this constant uncertainty of not knowing when the job search will end,” said Michelle Maidenberg, an adjunct graduate professor of cognitive behavioural therapy and human behaviour at the Silver School of Social Work at N.Y.U. with a private practice in Harrison, N.Y.

Dealing emotionally with this sort of adversity is a skill few of us have been taught, and it requires building new habits in our personal lives.

If it feels as if your well-being is on hold while you focus on bigger things — like a job hunt — consider this: The emotional and mental health outcomes of unemployment can create “a feedback mechanism where the longer you go, the harder it is on your emotional health,” Mr. Witters said. “The worse your emotional health is, the harder it is to find a job.”

Whether you’re suffering from job-search depression or happily employed, learning the coping mechanisms needed to deal with things like uncertainty and loss of control will always come in handy, Dr. Maidenberg said.

“So much of who we are is wrapped up in work, but you are more than your job,” said Alison Doyle, a job search expert at the Balance Careers, part of the Balance family of sites, which offer advice on such topics as personal finance, careers and small business.

When people imagine job-search depression, they often attribute it to financial instability and frequent rejection, but it turns out that “identity is a much bigger piece of the puzzle than people had previously thought,” said Dawn R. Norris, an associate professor of sociology at the University of Wisconsin-La Crosse and the author of “Job Loss, Identity, and Mental Health.”

“In fact, many of the people in my study said it was the most important thing to them, even beyond financial problems,” she said. Those who listed financial concerns as their top source of stress often cited a perceived loss of identity as a close second.

The perception that we are our work is a major reason the job search, and receiving constant messages that we aren’t who we think we are, is so distressing.

“If your identity is threatened, you need an identity-based solution,” Dr. Norris said.

The solution: Recognize that your personality is made up of a diverse range of experiences, interests and values — not just your employment status — and “have other areas in your life that you can lean on as a source of joy and confidence.” This is pivotal to coping with job loss, Dr. Maidenberg said.

You should appreciate your self more

Besides the loss of income and identity that can come with being out of work, there’s also the loss of day-to-day structure. Sending out emails while wearing sweatpants on the sofa might seem like a fantasy to some, but after a while, the loss of scheduled time can lead to feelings of anxiety, depression and disconnection, Dr. Norris said.

The solution: Create structure for yourself, both inside the job hunt and out. Setting strict office hours can help keep the search from bleeding into every area of your life, with deadlines pushing you to work more efficiently. Simple rules, like a “No LinkedIn after 6 p.m.” policy, or a mandatory lunch hour, will give you the space to focus on other interests and relationships and mentally recharge.

The stress of a job search can also make people feel as if they don’t deserve down time, but working overtime and pushing to the point of burnout will only exacerbate feelings of isolation and negativity. This can have an impact on both your mental health and your job prospects, Mr. Witters said.

“It’s a feedback mechanism where the longer you go, the harder it is on your emotional health,” he said. “The worse your emotional health is, the harder” it can be to successfully chase down job leads and dazzle interviewers.

Treat your job hunting like a job

Mr. Witters said research showed that setting and reaching goals had a strong inverse relationship to depression.

“If you’re out of a job, one of your goals is going to be to find one,” he said. “That is a goal that is going unrealized.”

The solution: Whether you plan to send out a certain number of cover letters, or accomplish something that’s totally unrelated to your job search, try to “do a few things outside your comfort zone that are still achievable,” Ms. Doyle said. Doing so, she added, can make you “feel much better about yourself.”

Avoiding the temptation to set overambitious goals is especially important, she said, since failing to accomplish them will negatively affect your well-being and can even slow your overall progress.

While it might feel hard to appreciate smaller successes, especially if they seem mundane or aren’t directly connected to the job hunt, the power of small wins means these moments can have a major impact on our mental and emotional health.

Set a goal for what you are doing will keep you on the way


4. Learn new skills

The stress of the job hunt can make it easy to miss out on the benefit of unemployment: more free time.

The solution: “Look at the time in a way as a gift,” said Ms. Doyle, who recommended volunteering or taking free online classes.

Though using your free time to pursue new hobbies and skills “tends to bite the dust when you’re focused on finding a job,” Mr. Witters said, “there is a good inverse corollary to depression and learning new and interesting things.”

This can also be an opportunity to explore hobbies that you were too busy to nurture and probably won’t have time for once you land a job, Dr. Maidenberg said. Trying out new things and discovering other talents and interests can help us strengthen our identities and enjoy new sources of fulfilment.

If you’re interested in pursuing activities that relate to your professional skills, keeping your résumé up-to-date isn’t the only benefit, Dr. Norris said. “Depending on what aspect of your identity is threatened, finding something to do that’s similar enough” — a former manager could coach children’s sports, for instance; a laid-off E.M.T. might take a public safety course — can help reinforce the feeling that you are still the same person you were before, she said.

Learn for new skills and you may realize that you have other talents that you never think about

One of the best ways to take a mental break from the job search, and to reaffirm the parts of your identity that don’t have anything to do with your career, is to spend time with family and friends, Dr. Maidenberg said. It’s also a good way to combat the isolation that many job seekers face.

Putting yourself out there isn’t always easy, especially given that there’s “definitely a stigma” around unemployment, Dr. Maidenberg said. Research shows that the long-term unemployed spend less time with family and friends, and embarrassment can contribute to people avoiding social interactions, Mr. Witters said.

If you’re finding it hard to socialize, start small, Dr. Norris said. Online communities and support groups are good places to start, as are clubs and networking events in your area. Just asking a friend to join you for coffee can help.

If you’re having a hard time prioritizing your health during your job search, go one step further and ask a loved one to act as your accountability partner, Mr. Witters suggested.

Keep in touch with people will help you overcome depression and heal your mental

“Having someone who’s encouraging you to pursue a healthy lifestyle and to be a better version of yourself,” he said, “helps alleviate the sense of loneliness and isolation and pessimism and despair that can come from prolonged unemployment.”

And if people ask what you do for a living?

“It’s fine to say, ‘I’m looking for my next opportunity,’” Ms. Doyle said. “The average person changes jobs nearly 12 times in their career, and not all of those changes are voluntary.” She added that “almost everyone’s lost a job, and people love to help people.”

Most importantly, she said: “Don’t feel bad that you’re unemployed, even if it’s your fault. It can happen to the best of us. You are not alone.”


Cre: New York Times

Auchan – don’t rate a company when it succeeds, look at when it’s fail

On 16 May 2019, after 5 years entering Vietnam, the France biggest retailer Auchan has officially announced to withdraw from Vietnam. The brand will sell all of its stores to an unpublished partner after a long period of time not making profit.

Beside of some “not very good” image of Vietnam’s consumers in the last days of this supermarket chain. The act of this brand with their employees in the transition times has made the public to think back about company culture in general and ethical of the HRM in particular.

So, what happened?

Vietnam’s consumers “wipe out” Auchan on its last days

Reasons leading to Auchan’s fail in Vietnam?

Founded in 1961, with headquarter in France and working in many industries include FMCG, commercial retail, real estate, banking, e-commercial, etc.

In general, there are three main reasons lead to the fail of Auchan in Vietnam.

Auchan leaving Vietnam after 5 years

Competitors

Since 2012, Vietnam witnessed the invading of a series of retailers and large brand entering Vietnam.

The competition for market share in Vietnam become more brutal with the strong investment of brands from Japan (AEON), Korea (Lotte), Thailand (TCC Holding – Mega Market), Vingroup (Vinmart), etc.

This leading to a decreasing in sales revenue and brand’s awareness when Auchan have to change their brand’s name 2 times (from S.mart to Simply and final is Auchan) before closing.

The competition of retail industry in Vietnam is very brutal

Business strategy

In 2014, Auchan entering Vietnam and starting their business by collaborating with big real estate company to build supermarket inside their building, apartment.

At the beginning, this seems to be a very smart move when Auchan can take advantages from the residents of the building. But in return, when located inside apartments, it’s will be very difficult to approach consumers in a far distance.

Moreover, the customer segment of Auchan is middle to high level. While GDP of Vietnam is still low (below 2.500 USD/ people), if Auchan comes to Vietnam in 7 -10 years later, when the GDP increased to 5.000-7.000 USD/ people, that would be a different story.

One more reason, is Auchan’s brand awareness. With Vietnamese, products from U.S or Europe are earn the hashtag of “best quality”. But Auchan cannot take advantage of their country’s brand name. Which has been used very well by Thailand, Japan and Korea brands.

Auchan build their supermarket right below building, apartment.

Market cultural

The retail trending of Vietnam is combination forms of entertainment, eating and shopping in one place like AEON Mall, Lotte Mart, Vincom.

The individual market will hard to compete, one realistic example is Parkson Mall of Malaysia which have to withdraw from Vietnam in 2018 after 13 years entering this market.

Shop&Go, Parkson, Metro and Auchan are four “big face” have to leave Vietnam after long period of time losses

Humanity and integrity withdraw

In recent days, the “online community” of Vietnam has had very good feedback on the action of Auchan leaders board when they are helping their employee to redirection their job after the announcement to close the company.

Particular, the Human Resources Director of Auchan – Tran Phuoc Tuan has written a letter on LinkedIn – the biggest social network for job search and recruitment – to call for assistance in looking for job for his employee. Mr.Tuan also posted a Google docs link to help employers to share their recruit positions.

Mr.Tuan letter on LinkedIn

The Auchan’s director – Arnaud Bouillet – also give his feedback and recommendation for his employee and sharing their CV to his network.

Mr. Arnaud Bouillet sharing his employee CV to his network

This kindly act had lead to the call to support Auchan’s three remained supermarkets. Although all of the brightness situations, the sadness is that they still keep the plan to withdraw from Vietnam in June.

Auchan will leave Vietnam on June 2019

For people who following the “value investment” style of Warren Buffet, then in Auchan case, the brand value of them has shown through the way they treat their employee when it comes to an end. Because it is more important than the way the company treat their employee when it’s on the growing peak.

If Auchan comes back to Vietnam one day, I believe they will be very welcome by customer and candidates who looking for job.

What do you think?

How much money can you make when you 21?

Recently, Forbes 100 has recorded the world’s youngest ever self-made billionaire title is just swapped from Mark Zuckerberg (CEO, Founder of Facebook) to Kylie Jenner (21 years old).

According to Forbes estimated Kylie’s Cosmetics (a cosmetics company of Kylie’s) value is over $900 million based on the last year grew revenue and market cap of the booming makeup industry. And Kylie Jenner owns all of it, add with the cash she already pulled from the profitable business. The 21-years-old is now the billionaire, with an estimated fortune of $1 billion.

So, who is Kylie Jenner? What made her a billionaire?

Kylie Jenner

Making money from 10 years old

Kylie Kristen Jenner was born on August 10, 1997, at Los Angeles, California, U.S with parents are both television personality. Kylie is a model, celebrity, television personality, fashion stylist, creator, designer, actor, singer and entrepreneur.

Kylie Jenner starting her career very soon when she first started her reality television series “Keeping up with the Kardashians” (one of the longest-running reality television series in the U.S ) on E! (an American pay television channel) in 2007 when she’s only 10 years old.

From 2007 – present, Kylie has participated, performed and starred over 11 television reality show, with over 187 episodes present, and is the main cast in 158 episodes. Kylie also joined in 8 music video, and play a role in the “Ocean’s 8” movie
in 2018.

All those activities are a premise for Jenner to build up her businesses based on her reputation.

Kylie Jenner 10 years old and now

Business

Kylie’s business career started in 2012 when she’s 15 years old. Kylie collaborating with the clothing brand PacSun (Pacific Sunwear of California Inc.), along with her sister Kendall they create a clothing line name “Kendall & Kylie”.

In July 2013, the Jenner sisters launched a jewellery line with Pascal Mouawad to create the Metal Haven by Kendal & Kylie jewellery collection.

In February 2014, she and Kendall launched a shoe and handbag line for Steve Madden’s Madden Girl line.

Although pretty success with her businesses, but all of these brands are not bring her to the title of “world’s youngest billionaire”.

In August 2015, Jenner announced she would be launching her lipstick line under the name Kylie Lip Kit and renamed to Kylie’s Cosmetics in February 2016. Also in this year, the number of kits produced rose from an initial 15,000 to 500,000.

Jenner invests more on the marketing and brand awareness of her brand beside of her reputation. In March 2016, Jenner released a 3 minutes promotional video directed by Colin Tilley and starring models Karin Jinsui, Mara Teigen, and Jasmine Sanders.

She also introduce her brand through many reality show with a million of audiences (both online and offline) with a fee of $0 for she is invited.

In June 2017, Jenner released 2 new cosmetics sets in collaboration with her sister and unceasing cooperation to launch a new product line with other celebrity, designer, model.

In 2018, Kylie’s Cosmetics recorded the sold of over $630 million worth of makeup product. Which rise the company value up to $900 million and making Jenner into the Forbes 100 list.

Kylie Janner may only 21 years old, but Up to May 2019, she has presided a business portfolio of 66 product line, brand, show, and music. And this number is constantly increasing over year.

The Kylie’s Cosmetics record the sold of over $630 million worth make up product in 2018

Although there are disagreements about the “self-made” title of Jenner because of her background. But there are points that we can not deny: She is brilliant, and have to work very hard to earn this result.

More over, how many people of us can make $1 billion when we at her age without inheritance?

What do you think?

Huawei’s answer for the sanction of U.S

Recently, the founder of Huawei – Mr. Ren Zhengfei in an interview on Bloomberg Television admitted that the sanction of U.S on Huawei can strongly affect the production line of them.

But he also affirmed that the sanction cannot destroy the smartphone business of this brand. And in future beside of developing their own software platform, looking for new suppliers, Huawei will also get back to the market and will even “not selling their products for the U.S”.

So, what makes Huawei so confident?

Ren Zhengfei – Founder and CEO of Huawei

Market share in China

According to the South China Morning Post, after quarter I-2019 the market share of Huawei reached 34% per cent and leading the market. While other producers like Apple, Samsung and Oppo have a market share in turn: 11.5%, 1%, 19.6%. Moreover, Huawei has a plan to grow to 50% at the end of 2019.

The smartphone market of China recorded the amount of 1,1 billion mobile phone users and the market value of 66,8 billion USD with the increasing rate of over 15% each year according to Statista quarter IV-2018 report.

With the backing of the government, a high-value market share in the world’s largest mobile market (over 50% global market), and a very strong financial potential go with technology. The sanction move of U.S may activate the independence of Huawei and stimulate its innovation.

Plus, in recent years, the Chinese’s companies has succeeded in making people think back about internal technology products. Before, Chinese people always believe that local companies can only be good with low-end products or houseware products.

China’s mobile market is taking over 50% global market

Political advantages

Although claiming that he’s not the politician, but Mr. Ren Zhengfei cannot deny that the rapidly growing of Huawei have a very tight connection with the Chinese government. In the past, the very first global contracts of Huawei to build the telecom infrastructure in Africa come from orders of government.

Recently, the allegations of U.S and its allies for Huawei spying activities via their 5G telecommunications equipment also prove the thesis about the relationship between Huawei and the Chinese government. You can learn more about Huawei history on Wikipedia.

The U.S’s sanction may slow Huawei’s production down but U.S and Europe are not the only ones have a technology to create chipset. One of the biggest competitor of the U.S and its allies – Russia is still silent since U.S-China commercial war begin. Huawei in particular and the Chinese government in general may get close with Russia, and this alliance is not what U.S and its allies may like.

Moreover, according to CafeF if China closes its gate with Apple in China, this brand will lose 1/3 its global sales. And stop providing services and devices to Huawei is also a large damning to the U.S and its allies brands.

With the taut situation of the China – U.S commercial war right now, no one can make sure anything.

The U.S – China commercial war is becoming complicated these days.

Conclusion

Agree or not, the truth is that Huawei is still the biggest private company in China. The last year sales revenue reported of Huawei has over helm Alibaba and Tencent.

gree or not, the truth is that Huawei is still the biggest private company in China. The last year sales revenue reported of Huawei has over helm Alibaba and Tencent.

With all the advantage in finance, political and technology, the fall of Huawei is impossible. Not to mention that the Chinese government will not allow Huawei to fall, for millions jobs Huawei create for this country and the revenues from tax of this company.

But as I analysed in the previous article “President Trump’s sanction on Huawei and commercial war of U.S – China”, recover Huawei will be difficult and take a very long time for its present situation.

What do you think?