managerial styles of korean comp ani esl

8/8/2019 Managerial Styles of Korean Comp Ani Esl

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Presented by

Danish Jawed

Haider Farooq



The economic success of Korea can be traced tonumber of factors, the most important onebeing Competitiveness of Korean companies.

The Korean management system has threesources of influence.

Confucianism

This is the state philosophy of Korea for morethan 500 years



It is a complex system of moral, social, political,philosophical

, and quasi-religious thought thathas had tremendous influence on the culture

and history of East Asia. It might be considereda state religion of some East Asian countries,because of governmental promotion ofConfucian philosophies.



The organizational Structure of many KoreanCompanies is characterized by

High Degree of centralization

Formalization

Authority is concentrated in senior levels ofmanagerial hierarchies with major decision

entailing KYUL JAE ( A formal procedure oftaking approval from Top ²Management) thisinvolves taking many chops



For example SAMSUNG Group used 21CHOPS before taking a decision which tookseveral months to approve a project.

After KUN HEE HEE took over the group hedemanded that these chops to be cut down to 3.

Korean Companies usually has a Tall

hierarchical structure of organization.



Structure Starts with

Chairman

President

Vice President

Senior managing director

Managing Director

Department Manager

Section manager and continues till bluecollarworkers



The concentration of authority results partly fromthe fact that ownership and management are notseperated in most korean companies.

The owner family participates actively in themanagement.

A common practice is for owners to bring theirschool and hometown friends into management.

Sometimes top-management positions are filled bypeople from same geographical areas andsometimes by graduates from elite universities.



It includes:

1. Leadership and decision making.

2. Motivation

3. Communication



Father is the unquestioned and respected headin traditional families.

Authoriatan leadership is the acceptedmanagement norm under the centralizedstucture.



Koreans are highly motivated workers and arewell known for enduring long work days.

They are influenced by their traditional valuesaswell as realistic needs.

Korean employees tend to put heavieremphasis on intrinsic factors like wages andworking conditions rather than intrinsicfactors( creativity and achievement).



In korean companies formal communication ismainly achieved along vertical hierarchies.

Many korean employees are not good at open

communication and have difficulty in airingtheir views specially while opposing to anargument.

However many koreans are very good at freecommunication on informal occasionsespecially on one-to-one basis.



Recruiting and Training1. Most korean corporations classify employees into

3 categories: Top management; permanent; andtemporary.

2. Training is normally conducted through In-Housetraining programs.

Reward and Promotion System

1. Reward system is traditionally based on senioritybut performance matters a lot.2. In appraisal systems many korean companies not

only considers performance but also job attitudeand special ability.



Trade Unions

1. After the korean war, american style laborrelated legislation guranteeing the workers

right to organize and to bargain collectively.

Manufacturing Development strategies

1. Many korean companies follow the strategy of

choosing growth and maturity stages ofproducts.

2. This decreases potential market risk for thecompany.



Diversification Strategies

1. Large business groups have persueddiversification strategies in the past 3 decades

as part of national economic policy.

2. Government has also favored the developmentof large busineses that can compete powerfully

in the international markets.



The business in korea is experiencing a rapidchange.

Traditional managerial values and organization

structure are under growing pressure tochange accordingly.

Some changes have already taken place like

shift from seniority base to a more balancedreward system.

managerial styles of korean comp ani esl

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