An academic research and recommendation project undertaken to consult on South Korean HR policies to ChemRez Technologies of Philippines. This paper is intended as an academic work only and any discrepancies or incorrect hypotheses may not be held against the author.

1. ChemRez
Technologies
HR POLICIES FOR SOUTH KOREA
ASIAN INSTITUTE OF MANAGEMENT Learning Team – 1A
Cohort-7 | MBA 2012 - Darshak S J
- Dianne Sison
- Madhuranath R
- Tanmoy Dey
- Vincent Bermejo

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

3. Organization Structure
President
(Philippines)
International
Country Sales
Sales Manager
Manager
(Philippines)
Executive Administrative
Assistant Manager
Sales Support
Admin Staff
Staff
Polystyrene Polyster Powder Coating O-Chemicals
SP Manager SP Manager SP Manager SP Manager

4. Cultural Divide
SOUTH KOREA PHILIPPINES
Autocratic Participatory
Closed Open
Age-Ranking System Meritocracy
Masculine Hybrid
Direct Non-Confrontational

5. 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

6. Manager and Team
• Natural team players
• Team leader respect by achievement, age,
experience
• Paternalistic or Hierarchical leadership
• Process of consensus

7. Discrimination
• Gender
• Age
• Discrimination redress system
-Non-regular employees compared with regular
employees

8. Working Hour Policy
• 5 day work schedule- Monday to Friday.
• 8 hours per day work requirement.
• No flexi timings and work from home option

9. 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

10. Compensation & Benefits
• Korean wages are twice as 160,000
as Philippines 140,000
120,000
• Annual Base Salary + All 100,000
fixed allowances + Variable Korean standard
80,000
Bonus, Sales Incentive, Chemrez
60,000 Compensation
Profit Sharing and Other
Bonus (if any) 40,000
20,000
• Pay 75%tile median 0
industry standard salary to Supervisory Managerial Executive
attract best talent.

11. 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

12. Recruitment
• Global culture Fast-changing Korean chaebol
recruitment trend
• Recruitment channels
• Local workforce or Foreign workers, OFWs.

13. Training & Development
• Training programs
- seminars by industry experts
-training sessions by academes
• Learning Development
- on-the-job
- Targeted Development

14. 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

15. 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.

16. Thank You