South Korea Management Review

About 70 percent of South Koreans graduate from high school.

South Korea was annexed by Japan between 1910 and 1945.

President Kim Young Sam.

<p>The government embarked on a programme of economic revitalization and deregulation.</p> Signup and view all the answers

<p>The Organisation for Economic Co-operation and Development (OECD).</p> Signup and view all the answers

<p>Many Koreans feel deep suspicion and resentment towards Japan.</p> Signup and view all the answers

<p>Japan is regarded as an important economic rival.</p> Signup and view all the answers

<p>Achieving more than what was attained during recent decades by the Japanese.</p> Signup and view all the answers

<p>Market sources drive Anglo-Saxon companies to meet short-term expectations.</p> Signup and view all the answers

<p>Chaebols focus more on relationships with the government and banks rather than just the market.</p> Signup and view all the answers

<p>Chaebols are described as being closely-knit and competitive in spirit.</p> Signup and view all the answers

<p>Historical influences shape how countries modernize and organize access to capital and human skills.</p> Signup and view all the answers

<p>Leadership often takes pride in their humble origins and the recent founding of their businesses.</p> Signup and view all the answers

<p>Anglo-Saxon companies prioritize short-term gains, whereas Japanese companies emphasize long-term strength.</p> Signup and view all the answers

<p>Chaebols expand rapidly and produce major international brands.</p> Signup and view all the answers

<p>They maintain close relationships with the Korean government.</p> Signup and view all the answers

<p>Traditional Confucian values, particularly diligence and harmony, enhance the work ethic of Korean workers.</p> Signup and view all the answers

<p>Lee Byung Chul, Samsung's founder, focused on creating a collegial atmosphere within the company.</p> Signup and view all the answers

<p>High wages and job security are the primary motivational factors for Korean employees.</p> Signup and view all the answers

<p>The traditional reward and promotion system in South Korean companies is based on seniority.</p> Signup and view all the answers

<p>Samsung experiences a significantly lower level of employee unrest compared to Hyundai.</p> Signup and view all the answers

<p>Fukuyama indicates that Korean businesses tend to be hierarchical, authoritarian, and centralized.</p> Signup and view all the answers

<p>The instinct for survival drives Korean employees, influenced by historical instability and poverty.</p> Signup and view all the answers

<p>Performance is increasingly recognized as a crucial factor for bonuses in Korean workplaces.</p> Signup and view all the answers

<p>A belief in formalisation, centralisation, and control.</p> Signup and view all the answers

<p>Experience of military conscription and reservist duty.</p> Signup and view all the answers

<p>It refers to delayering management structures to reduce costs.</p> Signup and view all the answers

<p>Colbertisme is a mercantilist philosophy prioritizing national interests in industrial policy.</p> Signup and view all the answers

<p>The concentration of power and control over key economic activities.</p> Signup and view all the answers

<p>Professional management is becoming an increasingly powerful and well-qualified elite group.</p> Signup and view all the answers

<p>It aims to manipulate external interests in favor of national economic goals.</p> Signup and view all the answers

<p>Balancing short-term cost reductions with stronger leadership qualities.</p> Signup and view all the answers

<p>Substantial problems arise when the eldest son is incompetent or uninterested in leading the corporation.</p> Signup and view all the answers

<p>They recruit from lineages, clans, localities, and regions.</p> Signup and view all the answers

<p>It draws on extensive pools of individuals, providing a broader selection than just immediate family.</p> Signup and view all the answers

<p>He noted that they started as family businesses and many remain family-owned and family-managed at high levels.</p> Signup and view all the answers

<p>Regionalism refers to the practice of recruiting managers based on their geographic origin, focusing particularly on certain provinces.</p> Signup and view all the answers

<p>It allows companies to maintain family control while accessing a larger talent pool.</p> Signup and view all the answers

<p>They grew under pressure from the state, which influenced operational and organizational changes.</p> Signup and view all the answers

<p>They enable South Koreans to transcend narrow familism by fostering broader connections through lineage and regional affiliations.</p> Signup and view all the answers

<p>They may experience a perceived loss of control from the corporate center in South Korea.</p> Signup and view all the answers

<p>It was seen as the end of a feudalistic arrangement where workers displayed strong loyalty in exchange for job security.</p> Signup and view all the answers

<p>Outside of the workplace, there was effectively no social security net provided by the state.</p> Signup and view all the answers

<p>The week-long occupation of Hyundai Motor Company in 1992 by workers.</p> Signup and view all the answers

<p>Delayering, downsizing, and redundancy of many managerial and administrative staff.</p> Signup and view all the answers

<p>It broke down the family spirit among workers and their companies.</p> Signup and view all the answers

<p>15,000 riot police stormed the factory to end the workers' occupation.</p> Signup and view all the answers

<p>It worsened drastically due to the economic crisis and resulting unemployment.</p> Signup and view all the answers

South Korea was under Japanese rule from 1910 to 1945.

South Korean president from 1993 to 1998, focused on economic revitalization and deregulation.

South Korea's effort to improve its economy by decreasing government control and improving competition.

An international organization dedicated to economic cooperation and development; South Korea wanted to join it.

A powerful businessman or leader in Asia, especially in the context of Korean business.

Complex relations between South Korea (a former Japanese colony) and Japan, marked by economic rivalry and lingering resentment.

The majority of South Korean workers have a high school education or higher.

Korean business practices and management styles are described in the text as being impacted by desire to outperform the Japanese.

Chaebols are significantly influenced by Korean government and historical modernization processes.

Companies can get funding from markets, governments, banks, or personal connections.

Market-driven capital prioritizes short-term gains and maximum returns.

Japanese companies prioritize long-term strength and connections within their networks (like groups of companies), rather than just short-term gains.

Chaebols, similar to Japanese counterparts, are often run by founding families.

Chaebols are major players in international markets (and have globally recognized brands).

Leadership of Chaebol companies is typically proud of their humble origins, often emphasizing recent origins.

Chaebols are described as being even more closely knit and competitive than their Japanese counterparts. This competitiveness is often driven by having strong family connections within the company.

Korean workers are motivated by traditional values (like diligence and harmony), realistic needs, and a desire for security and high wages; company size and seniority also influence their motivation.

Samsung, under Lee Byung Chul, prioritized a collegial atmosphere, resulting in lower employee unrest compared to Hyundai.

Hyundai, under Chung Ju Young, employed a more authoritarian management style compared to Samsung

Korean businesses often operate with a hierarchical and centralized structure, especially those run by founding families.

In South Korean companies, seniority is a key factor in wages, but performance becomes increasingly important for bonuses.

High wages and job security are among the most important motivational factors for Korean employees

Samsung's approach to worker relations was associated with lower levels of workplace conflicts or strikes compared to companies with a more authoritarian style.

Confucian values, such as diligence and harmony, have contributed to a strong work ethic in Korea.

A mercantilist economic philosophy where the nation-state's interests drive industrial policy, competition, and international trade. It aims to control foreign interests to benefit the nation.

Characterized by strong hierarchy, formalized processes, and a central focus on control. This contrasts with the 'empowerment' trend in some Western companies.

Dominated by family-owned and controlled businesses, with strong influence in key economic activities. This has raised concerns about power concentration.

A growing group with increasing influence and qualifications, contributing to the country's economic development. This group plays a role in mitigating concerns about family-owned businesses.

Historic and continuing involvement in industry and trade, often with a determined approach to shape the economy. This aligns with the Colbertiste philosophy.

A potential challenge arising from downsizing management structures to reduce costs. This could lead to a shortage of skilled managers.

A growing concern about the dominance of family ownership and control, and its potential impact on power dynamics and economic opportunities.

South Korean companies often prioritize family ownership and management, even as they grow and require professional managers.

When a family business needs to find a successor, difficulties arise if the eldest son is incompetent or uninterested in taking charge.

South Korean companies often recruit employees from family lineages, clans, or regions to maintain control, especially when immediate family members aren't suitable.

As South Korean companies expanded, they needed professional managers to handle operations, leading to recruitment from lineages, clans, and regions.

Lineage and clan-based recruitment allows for access to a large pool of potential employees within a close-knit network.

South Korean companies often recruit from specific regions, like Kyongsang provinces, Kyonggi, and Seoul, creating regional hiring patterns.

Concepts like lineage, clan, and regionalism act as bridges to social connections, allowing South Koreans to expand their networks beyond immediate family.

Lineage and clan-based recruitment, while potentially nepotistic, can provide a large pool of potential employees, helping to reduce the negative consequences of nepotism.

Korean corporations, as they globalize, are facing a difficult decision: empowering overseas managers may lead to perceived loss of control by headquarters in South Korea.

The new labor law in South Korea was interpreted by some as the end of a loyal worker-company model, transitioning towards a more individualistic workforce.

South Korea's state-provided social safety net is weak, leaving workers more vulnerable outside of the workplace.

The 1992 strike at Hyundai Motor showed the fragility of the 'family spirit' work model, highlighting worker dissatisfaction.

The industrial relations climate in South Korea is described as sensitive and prone to conflict, influenced by factors like mass unemployment.

The 1997-1998 economic crisis in South Korea led to mass unemployment and structural changes in the workforce, causing uncertainty and instability.

Korean companies responded to the economic crisis by restructuring, reducing layers of management and personnel, leading to redundancy.

With increased unemployment and restructuring, Korean workers face a higher level of uncertainty and instability in their jobs.