copyright © wondershare software management and the new confucianism presenters: marko, kasia,...

Copyright © Wondershare Software

Management and the New Confucianism

Presenters: Marko, Kasia, Rasa, Victor and DJ Park

Understanding of Korean WorkplaceDaegu, April 4th 2011


New challenges for values

• Globalized economy + competition new challenges

• One of the changes - organizational structure and the inherent set of moral values

• The value system has its roots in the teachings of Confucianism

• The sense of entitlement and the feeling of deserv-ing more are growing


Korean workers and firms

• The organizational structure of a Korean company is highly centralized and hierarchical

• Salarymen – Male workers – Female workers• A typical example of a company structure in pro-

duction is as follows:– Kisa (technical superintendent) Banjang (supervisor) Chojang (foreman) Kongwon (worker)


Traditional Korean Corporate Culture

Corporate culture

Management structure

Corporate culture:• refers to an organization's values, beliefs, and behaviors,• it is concerned with beliefs and values on the basis of which people interpret experiences and behave, individually and in groups,

Firms with strong cultures achieve higher results because employees sustain focus both on what to do and how to do it.


7 Essential Attitudinal and Behavioral Characteristics

1. The centrality of work,2. Group harmony and the social contract,3. Personal relationships,4. Paternalism in superior-subordinate relationships,5. General job descriptions,6. Nonverbal cues,7. The decision-making process and personal account-

ability.


The Centrality of Work

• Koreans spend more time on the job than their in-ternational counterparts,

• Korean tradition of working extremely hard,• Described as: diligent, self-sacrificing, dedicated,

dependable,• Strong commitment to one’s employer and a na-

tional value of work centrality,


The Centrality of Work

The Korean term ‘eui-yok’ = ‘will’, ‘ambition’• Internal drive to succeed for the spiritual reward,• The heart of the company,• Determines the capacity of the company to compete and

survive,

KOREAN CONFUCIAN WORK ETHIC WESTERN PROTESTANT WORK ETHIC

• an employee’s work effort is group oriented • an employee’s work effort focused on indi-vidual advancement and achievements


Group harmony & the Social Contract

• The social contract predicated on a firm belief in preserving group harmony,

• Derives from Confucian thought: smooth, con-structive and conflict-free interpersonal relations at almost any cost,

• Supersedes any conception of individual rights,



“Ask not what your country can do for you;ask what you can do for your country.”

John F. Kennedy



“SAHOON” = a phrase or slogan that embodies the company’s most important values,

• LG – “harmony”• Daewoo – “creativity, challenge and sacrifice”• Sahoon vs. Western mottos: personalized nature;

derived from the family motto of the company founder.


Personal Relationships

• Developing and nurturing these relations is time-con-suming,

• Agreements between two parties change as business conditions change,

• Enhancing mutual benefits of both parties is the goal; a signed contract is simply symbolic of this.

The Korean company The Western company

• Relies on personal contacts and relation-ships

• Relies on written contracts


How to survive in Korean workplace

• Paternalism in Superior-Subordinate Relationship : Go to birthday party of Boss

• General Job Descriptions : Don’t say “That’s not my Job”

• Nonverbal Cues “nunchi”: The ability to read one’s mind or circumstances


Decision making and labor management relationship

• Decision making Process and personal accountability : “I made decision” Kim Woo-Choong, president of Dawoo

• Complicated labor-management relationship ex) Hyundai


Modernization of Labour Management Relations

• The 1970s and early 1980s• Initial Reforms: Enterprise Unions and Works Councils

• The 1987 Reforms• Declaration of Democratization. Strikes. Major pay increases.

• The 1990s and Beyond• The New Industrial Relations. Limitation of wage increases.


The New Confucianism: From Traditional Values to Managerial Professionalism

• The Management Revolution• Becoming world class players in the technology game

• Samsung: Change everything and become a first class company• By emphasizing quality over quantity• By reaching out to every corner of the globe• By having good timing


• LG: Vision for the Twenty-first Century

• Inegrating Strategy, Structure, and People in LG’s Vision 2000

• Enhacing customer satistaction • Advancing into promising industries• Becoming “insider in world markets”• Fostering divisional autonomy.


Hanwha: PRO-2000- 21 subsidiaries / close to $6 billion annual sales- New Challenges- Motto: « Thrustfulness, self-discretion and best effort »- Third reform:

1. Thinking and wiilingness have to change2. Merit, great respect, value of the employee3. Reorganization: 50% sales outside Korea for 2000

Sunkyong: Supex Pursuit- « Supex »: mix of Super and Excellence- Pursuit: relentless effort in the performance- Results: They get brain engagement from all the wor-

kers


Dongwon: Creating Valur for Customers- Diversifying its product line- Business plan: 1. To serve the customer 2. Respect

people 3. Create value - Bottom-up approach to decision making- Keep a link with employees at an emotional level

Haitai: Welcome the Future- To Diversify into value-added products- R&D goal: developing artificial flavors and substitute im-

ports- Becoming a global competitor due to product quality,

acces to raw materials, a good brand image, … - Help of government: low-cost loans from banks- North Korea, country of opportunities ?


Thank You!

copyright © wondershare software management and the new confucianism presenters: marko, kasia,...

Documents

kennedy slide

good timing slide

company structure

korean tradition

class company

social contract sahoon

korean workplace paternalism

centrality of work koreans