Free Articles  >>  Business And Finance >>  Page 2053  >> 

Human Resource Management in Thailand

HR Challenges

Business environments and consequently HR are now confronted with many more challenges than they faced in the past and these can include political conditions, economic changes, social changes, technology as well as other internal and external factors.

Political Instability in Thailand and the rest of the world

Numerous factors of late have threatened world peace and these include terrorism, political unrest, wars and the development of nuclear bombs. Thailand on the other hand has been affected by the 1997 Asian crisis with the devaluation of its currency the Thai Baht, the Bird and Swine flu epidemics in addition to internal conflicts which commenced in 2005 and came to a crescendo with the 2006 coup. The coup left the country volatile with internal conflicts between various sides and factions which are continuing. One must not forget the separatist issues in Southern Thailand which have also led to a significant number of deaths and which continue. From being a relatively unsophisticated country in the early 1990s, Thailand has developed into a more sophisticated Kingdom with changes to the legal environment causing Thailand to follow practices adopted by the rest of the world with respect to employment opportunities which are now benefiting employees.

Slow Economy

Following the world financial crisis which led to the demise of Lehman and Bear Stearns and many other financial institutions worldwide, economic growth fell in 2009 when compared to 2008 with less exports and the lack of finance becoming available.

Where it should have been reasonable to expect accelerated growth between the end of 2009 and the beginning of 2010, Thailand again became subjected to internal political conflict which culminated in a number of deaths within the greater metropolitan area of Bangkok.

Notwithstanding this, there has been some economic growth in 2010 as well as an increase in merger and acquisition activity and the stock market has boomed becoming the second most active and successful one globally at present. Of course the merger and acquisition activity can bring employees closer together as their roles will become extremely demanding before, during and after such activity.

It is also fundamental that any downsizing or terminations of members of the workforce should be managed professionally, ethically and sympathetically.

Social Challenges facing Thailand

The instability facing Thailand since 2005 which puts far more pressure on the Thai workforce means that employees have been expected to work harder and within an environment that is far more pressurised with often less finance to support it. Notwithstanding this, the cost of living has gone up and there also have been some natural disasters such as floods and the avian flu crisis causing the Thai workforce morale to be low.

It would appear that, fraud and corruption has also escalated as a result of the economic recession as a number of people look for a quick fix to assist the performance of their organisations. This factor is not solely a Thai problem but with the financial meltdown it has become more apparent in a number of other countries particularly in the US. It is important accordingly that a corporate social responsibility is instilled in the Thai workforce so that these types of breaches in future will be counter measured.

Other challenges include the fact that the workforce is not getting any younger which of course causes concern to organisations recruiting generation X employees to succeed the senior positions of baby boomers who are now gradually retiring. This can cause many challenges to employers having the mix of baby boomers, generation X and generation Y who have vastly different ideas, concepts and motivations. It is also important for employers to take note of the better educated workforce that now exists and HR must provide sound policies and strategies in order to attract, develop and retain better educated employees who expect far more sophisticated treatment and incentives than the baby boomers of the past.

Technology Change

Digital media has become an effective tool for a company to increase its competitiveness in the market. It also speeds up the business process and improves the overall performance of a company. The Internet, for example, has changed the way of communication and helps reduce costs on recruitment, manpower planning, and training.

Proactive HR people should have a broad knowledge and skills to cooperate with senior managers to create and implement an effective HR strategy. Therefore, HR should be considered as an interdisciplinary field to provide expertise support for overall business operations. As a result, HR should be seen as a strategic business partner and a reliable problem-solving expert.
About Author RSM Thailand :

RSM Thailand
<a href="" target="_blank"></a>

Article Source:
Article Url:

Article Added on Friday, April 15, 2011
Other Articles by RSM Thailand

Legal establishment and regulatory matters
When one understands the processes involved and the reasons for those processes, an entity incorporation or registration in Thailand is fairly straight forward, but unfortunately, it involves a semi-trailer load of documents, and a power of attorney needs to be provided to a Thai lawyer in order for the incorporation/registration of theentity in Thailand to proceed. Procedures for establishment First and foremost, a US corporation is usually required to obtain the ‘certification...

Public Entertainers Guide to Taxation in Thailand
Pursuant to the local Thailand tax laws, the income of a public entertainer is subject to personal income tax in Thailand. A foreign public entertainer who performs in Thailand is required to file a personal income tax return and pay Thailand personal income tax on the income earned for the performance, including any income that may be paid outside of Thailand for the performance and any benefits that the promoter in Thailand may provide to the public entertainer for the performance in...

Growing Your Business With A South East Asian Headquarters Company
If you are an international business, more than likely you are conducting operations in the SE Asia region through a network of distributors in the various countries in the region, and the establishment of a Headquarters company in the region not only makes business sense, it is often a must to manage the growth of the business in the region. Whilst the tax laws of Hong Kong, which only subject profits arising in Hong Kong to tax in Hong Kong, provided a natural advantage for a regional...

Guide to Expatriate Employment in Thailand
There are three distinct, but inter-related, laws that impact on expatriate employment in Thailand, and expatriates need to comply with all three of them: • Immigration law; • Labor law; and • Tax law. Immigration law Immigration law requires foreigners entering Thailand for work purposes to have a Category B Visa. These Category B visas are obtained from Thai Embassies and Consulates outside Thailand and the visa must be obtained prior to arrival in Thailand. Accompanying...

US ownership privileges in Thailand
Thailand’s foreign ownership restrictions Thailand’s Foreign Business Act (FBA) restricts non-Thai ownership of most types of business activities in Thailand to a maximum of 49%. The maximum foreign ownership limit of 49% is applied to a huge array of business activities in Thailand, as prescribed in the three schedules of the FBA, as follows: Schedule 1 Businesses – activities of media, agriculture, farming, primary industries, antique trading, trading in Buddha images, alms bowls...

Accounting audit and tax compliance
Accounting and audit compliance Thailand’s Accounting Act prescribes that all business entities in Thailand shall maintain books of accounts and supporting records in Thailand, and shall prepare annual financial statements in accordance with Thai Accounting Standards. The Thai Accounting Act also stipulates that all business entities in Thailand shall appoint an accountant, who is a Thai national holding a Bachelor of Accounting degree, and shall also appoint a Thai national auditor, who...

Choice of legal entity structure in Thailand
Private limited company By far the most prevalent form of entity that is used in Thailand is the private limited company. A private limited company is simply a company that has at least 3 shareholders (all of which can be US nationals and/or corporations once the Treaty privileges are invoked) and at least 1 director who is resident (domiciled) in Thailand (who may also be a US national). The liability of the shareholders is limited to the amount of the private limited company’s share...

Alien Land Condominium Ownership Rights in Thailand
Alien Land & Condominium Ownership Rights Under normal circumstances in accordance with Thai law, aliens (foreigners) and alien juristic persons are not permitted to own land in Thailand. However, certain aliens or alien juristic persons may acquire land for certain purposes as described below: Alien juristic persons (foreign business entities in Thailand including companies and partnerships) land ownership rights Alien juristic persons may be granted promotional privileges under...

Obtaining a Work Permit from the One Stop Service Centre in Thailand
To work legally in Thailand, a foreigner must usually obtain a work permit from the Alien Occupation Division, Ministry of Labour & Social Welfare or a provincial employment office. Foreigners will normally be granted under Thai immigration law a one year work permit after the submission of the original application. In order to obtain a one year work permit, various renewal applications may be required under Thai law during the months following submission. To speed up the process,...

US FIN 48 Time is running out to complete your review
US FIN 48 – the US Financial Accounting Standards Board Interpretation No 48 – Accounting for Uncertainty in Income Tax – applies to all US public and US private entities that prepare financial statements under US Generally Accepted Accounting Principles (US GAAP). If your entity in Thailand must comply with US GAAP and you have not yet done your FIN 48 review, your time is running out. The requirements under a FIN 48 review take a little bit of effort to do properly, and you need to...

Click here to see More Articles by RSM Thailand
Publishers / Webmasters
Article ID: 289331
DELINK URL from Authors Bio
REMOVE Article
Tell A Friend
Leave A Comment!
Download this article in PDF
Report Article!
Search through all the articles:

130 Users Online !
Related Articles:
Latest Articles:
Business And Finance >> Top 50 Articles on Business And Finance
Category - >
Advertising Advice Affiliate Programs Automobiles
Be Your Own Mentor Careers Communication Consumers
CopyWriting Crime Domain Names DoT com Entrepreneur Corner
Ebooks Ecommerce Education Email
Entertainment Environment Family Finance And Business
Food & Drink Gardening Health & Fitness Hobbies
Home Business Home Improvement Humour House Holds
Internet And Computers Kiddos and Teens Legal Matters Mail Order
Management Marketing Marriage MetaPhysical
Motivational MultiMedia Multi Level Marketing NewsLetters
Pets Psychology Religion Parenting
Politics Sales Science Search Engine Optimization
Site Promotion Sports Technology Travel
Web Development Web Hosting WeightLoss Women's Corner
Writing Miscellaneous Articles Real Estate Arts And Crafts

Disclaimer: The information presented and opinions expressed in the articles are those of the authors
and do not necessarily represent the views of and/or its owners.

Copyright © AwareINDIA. All rights reserved || Privacy Policy || Terms Of Use || Author Guidelines || Free Articles
FAQs Link To Us || Submit An Article || Free Downloads|| Contact Us || Site Map  || Advertise with Us ||
Click here for Special webhosting packages for visitors of this website only!
Vastu Shastra

India Hosting Services Provided By AwareIndia

Company IDS