Human resource management using KPIs

In the context of widespread digital transformation across all sectors, the application of modern management tools such as Key Performance Indicators (KPIs) has become an inevitable trend. In Thai Nguyen, the implementation of KPIs in some educational institutions and businesses has initially shown clear effectiveness, opening up new directions in improving human resource quality, increasing labor productivity, and innovating management.

The application of KPI-based human resource management software at TNG Investment and Trading Joint Stock Company has contributed to improving labor productivity and employee work ethic.

Advances in university governance

The University of Information and Communication Technology ( Thai Nguyen University) is one of the largest training institutions in the field of information and communication technology in Thai Nguyen province, as well as the northern region. Currently, the university has nearly 10,000 students enrolled in 24 training programs, with a staff of 358 lecturers, employees, and workers.

Since 2023, the university has been one of the pioneering institutions in the area in applying KPIs to evaluate work performance. The higher education environment demands high academic standards and individual creativity, making the quantification of work performance a challenge. However, practice shows that KPIs can become an effective management tool, supporting the university in developing its faculty.

According to Associate Professor Phung Trung Nghia, Rector of the University of Information Technology and Communications: Applying KPIs helps improve the efficiency of human resource management and promotes innovation and creativity in the workplace. Performance evaluation is not imposed or rigidly controlled, but based on a system of indicators designed to suit the specific characteristics of the profession and linked to specific tasks such as teaching, research, student mentoring, and participation in professional activities.

Thanks to clear and quantifiable criteria, instructors have a basis for objectively reviewing their work performance, thereby adjusting their professional behavior in a positive direction. As a result, work efficiency also improves significantly.

The application of KPIs helps the faculty of the University of Information Technology and Communications (Thai Nguyen University) to be more proactive in their work.

Sharing his thoughts on the application of KPI indicators, Dr. Nguyen Thanh Hai, lecturer at the Faculty of Information Technology (University of Information Technology and Communications), said: "Applying KPIs helps lecturers be more proactive in their work, while clarifying the implementation roadmap and output results. Based on assigned indicators, each person can monitor their progress and evaluate their work efficiency in a specific and transparent manner. This approach has received the approval and satisfaction of the university's staff and lecturers."

In practice, the application of KPIs in evaluating the performance of faculty and staff at universities is becoming an inevitable trend, contributing to optimizing processes, increasing transparency, and improving quality. Compared to previous manual methods, which were time-consuming and prone to errors, KPIs bring significant efficiency to management.

Improve labor productivity and work ethic.

KPIs are not only effectively applied in the education sector but also in manufacturing and business. A prime example is TNG Investment and Trading Joint Stock Company, a large garment manufacturer in Thai Nguyen. Given the nature of industrial production, which demands high labor discipline and strict operational procedures, implementing KPIs within the company is a strategic step to optimize resources and improve efficiency.

From the outset, KPIs have served not only as a performance monitoring tool but also as a lever for changing employee mindsets and behaviors. Instead of working habitually, each employee has clear goals linked to specific indicators. Employees are no longer vague about evaluation criteria but understand expectations from management, thereby enhancing their sense of responsibility and proactiveness in their work.

Notably, KPIs at TNG are not rigidly applied according to a set template, but are designed flexibly for each production department. The system of indicators is built on the basis of actual capabilities and adjusted periodically according to the production and business situation. This approach contributes to creating consensus within the team, reducing conflict, and increasing transparency within the enterprise.

Ms. Nguyen Phuong Thuy, Head of the Human Resources Department at TNG, stated: "Through practical application, TNG has observed a significant increase in labor productivity. Sewing lines operate more efficiently, the rate of defective goods has decreased considerably, and order completion times have been shortened. This helps enhance the company's competitiveness in the market and creates opportunities to improve employee income, a key factor in retaining high-quality human resources."

The Ministry of Interior is studying the implementation of KPIs in the public sector, with the expectation of creating motivation and healthy competition among officials and civil servants. (In the photo: Officials at the Gia Sang Ward Public Administrative Service Center handling administrative procedures for citizens).

KPIs have become a powerful tool in human resource management. Rewards and disciplinary actions are now based not on subjective feelings but on concrete data, contributing to a fair and professional work environment. Furthermore, KPIs help to promptly identify bottlenecks in processes, creating opportunities for technical changes, improvements, and innovation.

According to Mr. Pham Anh Tuan, Vice Chairman of the Thai Nguyen Province Association of Small and Medium Enterprises: Several businesses in the province have applied KPIs to human resource management. Establishing KPIs is essential, helping business managers motivate subordinates to complete tasks and achieve goals; gradually moving closer to the unit's objectives. Therefore, improving the effectiveness of KPI application in the production and business activities of enterprises is extremely important.

However, Mr. Pham Anh Tuan noted that to effectively implement KPIs, businesses need to prepare the necessary infrastructure, strengthen internal communication to integrate KPIs into the corporate culture, and select consulting firms with practical experience. These are key factors in improving human resource management efficiency through KPIs.

The successful application of KPIs in several businesses and schools in Thai Nguyen province is clear evidence of the ability to realize modern management principles in practical conditions. In the context of deep integration and increasingly high demands for quality and competitiveness, the widespread adoption of KPIs in state agencies and units is essential. KPIs are not only a management tool, but also a "key" to unlocking innovation from within each organization.

Human resource management using KPIs (Key Performance Indicators) is a method that uses quantitative metrics to measure and evaluate the work performance of employees, departments, or the entire organization. KPIs help define goals, track progress, and make decisions related to compensation, bonuses, training, and human resource development.

Source: https://baothainguyen.vn/thoi-su-thai-nguyen/202508/quan-ly-nhan-su-bang-kpi-c0a2e32/