ChemRez Technologies HR POLICIES FOR SOUTH KOREA

Learning Team – 1A - Darshak S J - Dianne Sison - Madhuranath R - Tanmoy Dey - Vincent Bermejo

ASIAN INSTITUTE OF MANAGEMENT Cohort-7 | MBA 2012

OVERVIEW

Organizational Design & Culture

General HR Practices

Recruitment, Training & Development

End of Services Policies

Labor Laws

Organization Structure President

(Philippines)

International Sales Manager (Philippines)

Country Sales Manager

Polystyrene

SP Manager

Polyster

SP Manager

Powder Coating SP Manager

O-Chemicals

SP Manager

Executive Assistant

Administrative Manager

Admin Staff Sales Support

Staff

Cultural Divide SOUTH KOREA PHILIPPINES

Autocratic Participatory

Closed Open

Age-Ranking System Meritocracy

Masculine Hybrid

Direct Non-Confrontational

General Practices and Ethics

• Confucianism : respect for seniority & high regard

for family and relationships • Patience in building long-term relationships • Gift giving as a regular practice • Body language: good posture and controlled gestures • Well-prepared capable teams • Disguised “no” and vagueness • Smart dressing

o Males: dark suits, shirt and ties o Females: smart suits or dresses

Manager and Team

• Natural team players

• Team leader respect by achievement, age, experience

• Paternalistic or Hierarchical leadership

• Process of consensus

Discrimination

• Gender

• Age

• Discrimination redress system

-Non-regular employees compared with regular employees

Working Hour Policy

• 5 day work schedule- Monday to Friday.

• 8 hours per day work requirement.

• No flexi timings and work from home option

Leave Policy

• Leave policy according to industry standard.

- 15 days a year

- additional sick and earned leaves

• Maternal and Paternal leave policy

- 90 days of paid leave

- basic pay compensation for leave

Compensation & Benefits

0

20,000

40,000

60,000

80,000

100,000

120,000

140,000

160,000

Supervisory Managerial Executive

Korean standard

Chemrez

Compensation

• Korean wages are twice as as Philippines

• Annual Base Salary + All fixed allowances + Variable Bonus, Sales Incentive, Profit Sharing and Other Bonus (if any)

• Pay 75%tile median industry standard salary to attract best talent.

Pay Policy & Appraisal

• Merit increment and performance bonus programmes

- Civil Service Regulation for Pay / Allowances ‘99

• Performance Based Pay (PRP) – weighted component structure

- Management by Objectives (MBO)

- Performance appraisal system

- 360 degree feedback

Recruitment

• Global culture Fast-changing Korean chaebol recruitment trend

• Recruitment channels

• Local workforce or Foreign workers, OFWs.

Training & Development

• Training programs

- seminars by industry experts

-training sessions by academes

• Learning Development

- on-the-job

- Targeted Development

End of Services Policies • Factors impacting a foreign employer

-Stringent Labor Laws that impose high penalty

-Low threshold for Employee Unionization

-Exigencies not clearly defined by law

-Restrictive legal redundancy procedures

-Collective bargaining can increase severance costs

End of Services Policies • Notice Period – 30 days or pay in lieu of

• Cannot terminate employees who were on leave for - o Medical treatment for Occupational Injury or Disease

o Maternity Leave

o Child Care Leave (Equal Employment & Support for Work-family Act)

• Severance Benefits can become expensive

• Redundancy actions involve Ministry of Labor directly o Foreign employers cannot make Korean employees redundant

o Supreme Court mandates employers to exhaust other steps before layoff

o To dismiss more than 10 employees, report needs to be filed with MoL

o 30 days advance notice to employees and the Ministry of Labor with details – reasons for dismissal, method of notice, criteria for selection, etc.

Thank You