MANAGING HUMAN RESOURCES (GROUP 2)

HUMAN RESOURCES MANAGEMENT (KOREA)

TRADITIONAL PARADIGM

SEÑORITY BASED HRM

Seniority is the length of time that an individual has served in a job or worked for an
organization. Seniority can bring higher status, rank, or precedence to an employee who has served for a
longer period of time.

PATERNALISTIC HRM

The management must assume a fatherly and protective attitude towards employees. Paternalism does
not mean merely providing benefits but it means satisfying various needs of the employees as parents
meet the requirement of the children.

AUTOCRATIC HRM

Authoritarian leaders provide clear expectations for what needs to be done, when it should be done,
and how it should be done.
There is also a clear division between the leader and the followers. Authoritarian leaders make decisions
independently with little or no input from the rest of the group.

GENERALIST HRM

They deal directly with employees, the issues generalists face are as varied as the individuals they serve.
The generalist does everything from explaining benefits and compensation to delivering training to
mediating disagreements between workers

PEOPLE BASED HRM

The idea that the competitive advantage of organizations can be driven by the accumulation of high-
quality human resources. The focus on human capital as a source of competitive advantage has led
organizations to compete in the talent war and to adopt a strategic management of people mainly
defined resource or people-based.

NEW PARADIGM

PERFORMANCED BASED HRM

Performance management is the continuing process of communication between managers and

employees, with the mutual goal of accomplishing the strategic goals of the company. It is the
foundation for employee performance and engagement in any organization that wants its employees to
reach their maximum potential and boost their productivity and success.

CONTRACT BASED HRM

DEMOCRATIC HRM
Democratic leadership is form of a participatory leadership where the leader takes into consideration of
sub-ordinates inputs while making the decisions. The staff is well informed beforehand regarding about
the activities they are involved and the matter concerned to them. The staff has participatory role
starting from planning, design and execution. This enables the staff to effectively deal with any problems
during the execution. The democratic leaders act like a coach motivating the staff and in still the team
culture in the organizations. The team work results in the large volumes of work in the short period of
time. The democratic leaders receive support from staff and appreciate the importance given to their
inputs. The democratic leader place trust on their staff allowing to them make decisions and develop
their goals. These leaders allow professional growth of their staff and encourage career growth based on
their performance. The employee reward and compensation is linked to the individual performance.

HUMAN RESOURCE MANAGEMENT (PHILIPPINES)

- WORKFORCE PLANNING
- RECRUITMENT and SELECTION
- EMPLOYEE RELATIONS
- COMPENSATION and BENEFITS
- PERFORMANCE MANAGEMENT
- TRAINING and DEVELOPMENT
- CAREER DEVELOPMENT
- ORGANIZATIONAL DEVELOPMENT
- CORPORATE SOCIAL RESPONSIBILITY

Talent management (KOREA)

Companies are aware of the need for more diversity so they recruit more broadly, beyond the
renowned universities, and put more emphasis on specific skills, abilities, and attitudes. Korean people
have always been individual achievers. Employees are becoming more individualist and more willing to
take charge of their own careers. Companies now put emphasis on job content, career opportunities,
and material reward.

Many companies have a signing-on bonus system, and an explicit fast track for the most
talented.

Companies cultivation of relationships with universities is important for firms to have access to
the best students. Large companies have high expectations concerning the qualification of the new
recruits.

The recruitment of permanent employees is increasingly formalized, with the use of internal
tests and assessment center.

Recruitment of some types of non-permanent employees involved in routine jobs is more casual.

Companies also have strict selection criteria for those whose individual or group performance
may directly impact upon company performance.

Talent management (PHILIPPINES)

 - SELECTION PROCESS
- SCREENING (SCREEN FOR EDUCATION AND EXPERIENCE
- SCREENING PRE-INTERVIEW
- TESTING
- FINAL INTERVIEW OR PANEL INTERVIEW
- CHARACTER AND BACKGROUND INVESTIGATION
- PHYSICAL AND MENTAL EXAMINATION

ORGANIZATIONAL BRANDING

- The organization promotes and cater the customers need through there emotions

RETENTION MANAGEMENT (PHILIPPINES)

- Companies today are doing all it takes to keep employees happy by offering them a slew of
benefits and thus retaining key talent. Does cash benefits in itself, make up for employee
happiness in Philippines?
- What makes a job satisfying experience? For many employees, the definition of a “great
career” involves a high wage only. However, other forms of compensation, cultural aspects, new
challenges, training and advancement opportunities may mean more to the ambitious
employee.

Educational Packages

Established companies in Philippines value employee contributions by offering them educational

packages for immediate family members and financial support.A recent Jobstreet.com survey indicated
that learning and development is one of the primary factors, employees consider when choosing a
company to work for. By allowing employees to take some days off to get additional certifications, the
companies showcase scope for human capital development.

Travel Packages

Employers allow deserving employees to move about the country and outside of it. These travel
packages may include perks, discounted airline tickets, all expense paid-trips or unlimited standby
travel. By allowing employees the privilege to travel, companies help them recharge and renew their
commitment to work. The travel also enables employees to see the world in a different perspective,
while teaching them lessons to tackle challenges and achieve success in new ways.

Bonuses and Profit Sharing

Offering bonuses is a way of acknowledging employee’s dedication, commitment and hard work to
boost confidence, morale and enhance productivity. Surprisingly though only 68% of the companies
surveyed by the People Management Association of Philippines (PMAP) offer a 13-month bonus while,
20% of the respondents say they provide 14-month bonus. A few Filipino corporations also give their
employees 15- month (10%) and 16-month bonuses (2%). The PMAP survey also revealed that one in
every five Filipino organizations provides profit sharing to employees.

Home Improvement and Grocery Reimbursements

Top MNCs in Philippines give their employees the opportunity to improve their homes while getting paid
to do so. As a result, it gives dignity to employees and inspires them to improve their productivity during
work hours. Some of the best Filipino companies also offer grocery reimbursements, which completes
the list of financial benefits offered to employees.

Career Management Programs

Along with financial rewards, leading enterprises provide career management programs that help
employees improve their current job performance. These programs are systems that encourage
employees to get involved in planning and other managerial responsibilities. These management
programs open a window of opportunities for career growth and internal promotion.

Sports Activities

Some Filipino employers help maintain work-life balance of employees through sport activities as this
equates to reduced healthcare costs. Also these activities serve as team-building exercise to strengthen
employee-management bond. Further, participation in sports helps reduce stress levels, improves
employee concentration and problem-solving skills, which further contributes to increased productivity
in the workplace.

Gymnasium

Companies with outstanding benefits package recognise the need to stay healthy and fit, which is why
leading Filipino organisations are starting to offer wellness programs to their employees. Some of these
benefits come in the form of gym reimbursements, while others in the form of a built-in fitness activity.
Such facilities do not just promote healthy lifestyle among employees, but also make for a happy and
productive workforce.

Social Functions

Apart from employee annual gatherings, top employers in the country organise social functions such as
company picnics, Halloween, and Christmas parties and other family oriented events for employees,
such that they can spend quality time with their families. Involving families into occasions do increase
employee engagement and boost morale.

Leave Conversions

Leave conversions allow employees the benefit of converting their unused sick leave and vacation leaves
into cash or to pay for their needs such as health insurance or retirement. Currently, about 48% of
Filipino companies offer leave conversion benefits, according to PMAP findings.

Meal Allowance and Subsidised Benefits

Some companies offer subsidised benefits to employees and meal allowances. According to PMAP
findings, 88% of companies offer meal allowance for their rank and file employees, while 62% provide
the same to managers and people in sales and field work. On the contrary, 75 in 100 provide rice
subsidies while only 60% of the companies surveyed provide clothing subsidies.

Mandatory Benefits
As mandated by law, companies are required to provide certain benefits that include 60-78 days of
maternity leave for new moms depending on the type of delivery and 7-day paternity leave for new
dads. Single parents are also given the prerogative of taking the leave of absence for seven days per year
for each child.

With employee benefits adding up and becoming more creative, it is easy to forget that they are just
perks and not mandatory at times. It is important to bear in mind that choosing the right company will
lead you to successful career path and also give you the much needed financial independence, which
everyone seeks.

RETENTION MANAGEMENT KOREA

Hours & Pay Regulations

Normal Working Hours

The standard workday is eight hours and the standard workweek is 40 hours, although the law allows for
flexible work-hour arrangements. Employers may require employees to exceed the standard number of
work hours in a day or week without having to pay overtime, provided that the average number of
weekly hours over a two-week period does not exceed 40 and that neither workweek exceeds 48 hours.
The maximum number of hours that may be worked in a week is 68 hours per seven-day week,
consisting of a maximum of 40 hours for the five standard working days and 16 hours for work over the
weekend, plus 12 overtime hours. However, under a new law passed in 2018, the maximum number of
weekly work hours were reduced to 52, consisting of 40 regular hours and 12 overtime hours. The law
takes effect in stages over a period of three years based on company size.

Effective July 1, 2018, employers with at least 300 employees were required to abide by the revised
maximum workweek. Employers with at least 50 employees and fewer than 300 employees must
comply with the changes by Jan. 1, 2020. Employers with at least five and fewer than 50 employees
must comply by Jan. 1, 2021.

Under a Working Hours Savings System, employees can take leave in lieu of compensation for their
hours spent on extended holiday or night work or they can work extended holiday or night work hours
to make up for hours they use for leave. Employers and worker representatives can work out specific
arrangements based on the situation of a particular company.

Employees under the age of 18 may generally work no more than seven hours per day and 40 hours per
week, although, by agreement with the youth and his or her parents, employers may extend this by one
hour per day or six hours per week.

Employers cannot require female employees to work between 10 p.m. and 6 a.m. or on holidays without
first getting their consent. Employers must obtain consent from both the Ministry of Employment and
Labor and the employee to schedule pregnant women or minors to work during those times. Labor
Standards Act, No. 12,325 of 1997 (as amended), arts. 50-55; Labor Standards Act Amendments, 2018.

Overtime
Overtime is defined as any hours worked beyond eight in a day or 40 in a week. When hours are
averaged over two or more weeks under a flexible work schedule, overtime is defined as hours worked
that put employees over an average of 40 a week. Workers get paid time and a half for overtime work of
fewer than eight hours, or 200 percent if eight hours of work are exceeded.

Employers generally cannot require employees to work more than 12 hours of overtime per week, but it
is permitted for employees working in some industry sectors if there is a written agreement between an
employer and a representative of employees. Within their first year after childbirth, women are
prohibited from working more than two hours of overtime per day or six hours per week. Labor
Standards Act, No. 12,325 of 1997 (as amended), arts. 53-56 (Korean); Labor Standards Act
Amendments, 2018 (Korean).

Night Work

In addition to any wage or overtime, a premium compensation at the rate of 50 percent of the ordinary
hourly wage must be paid for work performed between 10 p.m. and 6 a.m. This is termed the night-time
premium.

Under a Working Hours Savings System, employees can take leave in lieu of compensation for their
hours spent on extended holiday or night work or they can work extended holiday or night work hours
to make up for hours they use for leave. Employers and worker representatives can work out specific
arrangements based on the situation of a particular company. Labor Standards Act, No. 12,325 of 1997
(as amended), arts. 50-55; Labor Standards Act Amendments, 2018.

Breaks

Employees are entitled to unpaid breaks of 30 minutes for every four work hours and of one hour for
every eight work hours.

Employees get one day off per week with pay. The weekly holiday is typically Sunday, but there is no
requirement that it be. The one day need not be Sunday. If an employee works on the designated day
off, the employer must pay 150 percent of the ordinary wage.

Furthermore, a female employee who is within the first 12 weeks, or who has completed 36 weeks, of
her pregnancy may request a reduction of her daily work hours of up to two hours. Her employer must
accept this request. The employee’s salary may not be reduced during this reduced work schedule
period.

Public Holidays

The government mandates only one paid holiday: Labor Day (May 1). Employers may offer others but
are not required to do so. If the holiday falls on a weekend it is moved to the next workday. Employees
who are required to work on public holidays must receive 150 percent of pay for the hours worked.

Beginning Jan. 1, 2020, employers with at least 300 employees will be required to provide additional
public holidays for their workers. Employers with at least 30 employees but fewer than 300 employees
must provide additional holidays by Jan. 1, 2021, and employers with at least five but fewer than 30
employees must do so by Jan. 1, 2022. The government is planning to conduct a survey of public
holidays and is to release additional guidance on which public holidays will be a part of this practice at a
later date.

Labor Standards Act, No. 12,325 of 1997 (as amended), art. 56 (Korean); Labor Standards Act
Amendments, 2018, (Korean).

Annual Leave

Employees who have worked for their employers for at least one year are entitled to 15 days of paid
annual leave, and those who have stayed with a company for at least three years are entitled to an
additional day of leave for every two years of service. Employees are entitled to 11 days’ paid leave in
the first year of employment.

Total days off may not exceed 25 per year. Paid leave is forfeited if not used within one year of being
earned unless the failure to use the leave was caused by the employer, and employers are required to
begin reminding employees to use their annual leave on July 1 of each year. Employees can be
compensated for expired leave days, but only if the employer fails to give the employee three months’
written notice of the expiration.

Employees who work less than 80 percent of the annual workdays—not counting days off due to
occupational injuries or diseases or maternity leave—are entitled to one day of annual leave for every
month of full attendance at work. Employees may take advantage of leave days at their own discretion,
although an employer may change the leave period if it would seriously interfere with business
operations. Labor Standards Act, No. 12,325 of 1997 (as amended), art. 60 (Korean)

Minimum Wage

The minimum wage, which is applicable to all industries, is decided annually by the labor minister in
consultation with the Minimum Wage Council. The hourly minimum wage for 2018 is 7,530 won. In
2019, the rate will rise to 8,350 won.

In the event of a temporary shutdown of a business caused by the employer, employees must be paid
70 percent of their average wages. If a suspension is caused by unavoidable circumstances, an employer
can ask the Labor Relations Commission to be allowed to make lower payments. Minimum Wage
Commission (Korean).

Special Leave

Maternity and Nursing Leave

Female employees who give birth to a child are entitled to 90 days of paid maternity leave, of which 45
days must be used after childbirth, with the final 30 days compensated by the Unemployment Insurance
Fund. Female employees who have given birth to multiple children are entitled to additional leave: 120
days total of maternity leave, of which 60 days must be used after childbirth. Of this leave, 75 days are
paid maternity leave, with the final 45 days compensated by the Unemployment Insurance Fund.
Additionally, an employee who is nursing is allowed two 30-minute nursing periods daily if she has a
child younger than one year of age. Labor Standards Act, No. 12,325 of 1997 (as amended), arts. 74-
75; Act on Equal Employment and Support for Work-Family Reconciliation, No. 3,989 of 1987 (as
amended), art. 19.

Paternity Leave

Fathers are entitled to take five days off within the first 30 days after childbirth. At least three of the
days of leave must be paid.

Child Care Leave

Employees who have a child aged not more than 8 years or in the 2nd or lower grade of an elementary
school are eligible for one year of child care leave paid by the Employment Insurance Fund at 40 percent
of the normal wage.

Family-Care Leave

An employer is required to grant up to 90 days per year of family care leave if an employee requests
leave to take care of his or her family members.

Sick Leave

Employers are required to pay employees for sick leave only in cases of occupational injury or illness,
although many employers choose to offer paid sick leave for nonwork ailments upon receipt of proof of
illness from a doctor. Employers are required to grant a female worker one day of menstruation leave
per month upon her request. Labor Standards Act, No. 12,325 of 1997 (as amended), arts. 73, 79.

Military & Training Leave

South Korean men must serve two years of active military duty and are later required to complete
periodic training. Employers may not penalize employees for work missed due to military obligations. A
“skills-retention subsidy” is given to companies that help veterans who have high school diplomas build
on their vocational skills.

Fertility Treatment Leave

Employees are entitled to three days of leave for fertility treatment. Only the first day must be paid.
Employers are prohibited from taking disciplinary action against employees who request or take leave
for fertility treatment.

Additional Special Leaves

Leaves must be granted in connection with civic duties, including voting. Though not required by South
Korean law, special leaves also are generally given in connection with certain family events such as the
birth, death, or marriage of members of an employee’s family. Act on Equal Employment and Support
for Work-Family Reconciliation, No. 3,989 of 1987 (as amended), arts. 18-19.

EMPLOYEE ENGAGEMENT (PHILIPPINES)

About seven in 10 Filipinos are engaged in their work, making the Philippines among the most
engaged in Asia, according to a study.
 A report from outsourcing company Aon Hewitt showed that 71 percent of employees in the
Philippines and India are engaged in their work, ranking second from Indonesia with 76 percent.
According to Aon's 2018 Trends in Global Employee Engagement Report, the Philippines
recorded a six-point increase in work engagement, achieving an outlier status.
The study defined employee engagement as “the level of an employee’s psychological
investment in their organization.”

The Philippines, along with Malaysia and Indonesia, contributed to the bounce of the Asia-
Pacific region's highest engagement level at 65 percent of all employees last year.

"Malaysia (+4 points) and the Philippines (+6 points) achieved outlier status, while Indonesia
improved an incredible 15 points over the previous year," the report read.

EMPLOYEE ENGAGEMENT (KOREA)

South Koreans' failing belief in the value of hard work in recent years could hurt efforts
to motivate workers in a country currently struggling with low employee engagement and productivity.
Since peaking at 73% in 2010, the percentage of South Koreans who feel people in their country can get
ahead by working hard has drifted steadily downward. Less than half (47%) now feel this way.

A shortage of good job opportunities for young people may play a role in many South Koreans'
current lack of optimism about work. Residents aged 15 to 29 are particularly likely to have lost the
conviction that it is possible to get ahead by working hard -- just 36% felt this way in 2017, versus 51% of
South Koreans aged 30 and older. Youth unemployment reached a record-high annual rate of 9.9% in
2017, as one in five South Korean adults younger than 30 (21%) said it was a good time to find a job in
their area.

Economists have pointed to rigidities in South Korea's labor market as a drag on job creation in
the country. The traditional system emphasizes stable (often lifelong) employment and remuneration
based on seniority -- attributes that helped large conglomerates maintain high levels of employee
loyalty as they led the country's rapid industrialization beginning in the 1960s. However, these
characteristics are increasingly seen as a hindrance amid social and technological changes that require a
greater focus on flexibility and continual development.

Rigidity within the country's organizations may also be dampening employees' motivation and
productivity. As discussed in Gallup's recent State of the Global Workplace report, the country's
workforce -- like others in East Asia -- is characterized by a low level of employee engagement. The
report presents findings from a set of workplace engagement questions asked of employed adults in 155
countries. Results from South Korea indicate that just 7% of employees are engaged -- that is, highly
involved in and enthusiastic about their jobs. Further, a relatively high 26% of South Korean employees
are actively disengaged -- in other words, they are openly resentful that their workplace needs aren't
being met.

Career and professional development (PHILIPPINES)

- Training and Seminars

- Promotions, Performance Appraisal, and Additional Benefits
 - Team Building and Other Extra-Curricular Activities
- Professional Development Opportunities

Career and professional development (KOREA)

Korea has made enormous progress with regard to career development in the last 10 years to
set the structure of a nation-wide career development system tailored to different settings including K-
12, higher education, and employment services in the public and private sectors. Korea has actively
benchmarked services, programs, and policies of leading countries in the world and customized them to
a Korean context in a creative way. Korea seems to have a good structure thanks to the strong,
government-driven approach.

Challenges exist, however. First, the career development industry in Korea has grown
exponentially over recent years by number, perhaps not in quality. This probably is a natural process as
Korea has been expanding its capacity by, for example, employing Dedicated Career Teachers in most
schools, hiring Job Consultants at the higher education level, increasing the number of one-stop career
centers, and establishing relevant laws and policies. The improvement of career service quality comes
with the development of career professionals. Korea will soon be providing graduate degrees in career
development and implement four different career licenses following the NCS to resolve the quality
issue. A thorough review of this potential integration needs to be in place before implementing the
nationwide licenses. In addition, quality control of the 10 graduate career programs needs to take place
in order for career education at the K-12 settings to be successful from a long term perspective.

The role of the government in career development settings needs to be reconsidered to

empower private industry. For example, the government has been doing the majority of the work, while
not empowering private industry. Dedicated Career Teachers have experienced work overload, as well
as public sector career services employees. Also, a shortage of qualified career professionals and
increasing administrative tasks dealing with employment insurance, managing the government fund and
service and fund recipients have been causes for ineffectiveness (Kim, Rho, Finn, 2016). The government
has been monitoring private agencies by allowing them to register their certifications; however, as
noted before, there are nearly 400 career-related certifications but none of them is certified by the
government, which could indicate the lack of quality of the program and management of the agencies.
Also, the fact that only 0.4% of the private employment services agencies are accredited by the
government warranties more capacity building in the private sector.