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ChemRez Technologies - HR Policy Analysis for entering South Korea
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Transcript of ChemRez Technologies - HR Policy Analysis for entering South Korea
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