ChemRez Technologies

HR POLICIES FOR SOUTH KOREA

ASIAN INSTITUTE OF MANAGEMENT Cohort-7 | MBA 2012

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

OVERVIEW
Organizational Design & Culture General HR Practices Labor Laws
Recruitment, Training & Development End of Services Policies

Organization Structure
President (Philippines)

International Sales Manager (Philippines)

Country Sales Manager

Executive Assistant

Administrative Manager

Admin Staff

Sales Support Staff

Polystyrene

Polyster

SP Manager

SP Manager

Powder Coating SP Manager

O-Chemicals

SP Manager

Cultural Divide
SOUTH KOREA PHILIPPINES

Autocratic Closed Age-Ranking System

Masculine Direct

Participatory Open Meritocracy

Hybrid 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

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.
160,000 140,000
120,000 100,000 Korean standard 80,000 60,000 40,000 20,000 0 Chemrez Compensation

Supervisory

Managerial

Executive

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 o o o Foreign employers cannot make Korean employees redundant Supreme Court mandates employers to exhaust other steps before layoff To dismiss more than 10 employees, report needs to be filed with MoL 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