Relationships Korea 2020
Korea 2020 The Progressive Workplace
This is the second of many sneak previews of my latest work in progress Korea 2020. Comments welcome on the progressive workplace.
“Even though my company practices flextime and has a 40-hour workweek policy, our department boss always looks at us badly if we come to work after 9 a.m., even though I work the full 40 hours,” said Kim.
When she started the job, Kim was optimistic about working at a company with policies that seemed so worker-friendly.
“Our company also has a policy that prevents senior colleagues from texting juniors about work-related issues after working hours and during weekends, but that rule is always ignored,” she added. “Nonetheless, our entire office is covered with posters promoting these campaigns, which I feel are just for show.”
Sneak Peek Korea 2020
Working Title Korea 2020 Sneak Peek 1
Korean facing business interactions
Cross-cultural Workplace Gaps
Happy Memorial Day…. some thoughts for a holiday read on the cross-cultural workplace.
Contracts, legal agreements, and business plans go hand in hand with global business. I was once told that in Korea the purpose of signing a contract or agreement was essentially to formalize the partnership. Over time terms would be subject to change and re-negotiation.
My Korea facing experience has been that agreements fundamentally solidify the working relationship. However, to maintain any partnership contractual obligations will require on-going changes to reflect business conditions. In contrast, a legal agreement in the West is immutable.
This week, I’d like to elaborate and bring into a broader cultural dimension re: the cross-cultural workplace.
This Culture (with a big C) lesson is Koreans in the workplace and business see and prefer most things as “ gray” ever-changing and subject to revision. What’s set on paper matters, but as just as a Roadmap.
This ties into the “balli-balli” mindset, too. See balli-balli, here, too.
In fact, Koreans in contrast to the Japanese see this “ flexibility’ as a competitive advantage…. They do craft elaborate and thoughtful business plans, organizational charts, job descriptions, and workflows — often crafted by junior and less experienced teams, but in reality, feel these are subject to change as circumstances shift. In the Korean workplace, the reality is all is ever evolving — shifting and adjusting daily.
In contrast western (US, UK, the Germans, AU) business feels most comfortable when we think through all the potential issues (often based on years of first-hand experience by senior executives) and then set things firmly on paper. In turn, any changes to for example, to a business plan, are subject to considerable scrutiny and critical thinking before altering.
As an option and best practice to working with both Cultures, first and foremost building the relationship and communications matters most. Misunderstandings will surface, but when both teams better understand each other’s mindset, we can move to collaboration and compromise.
In mentoring, I strive to build this understanding, pulling apart the issues to their cultural core, and sharing how to best build bridges and close gaps — something which is more art than science ☺ and not without its challenges in the cross-cultural workplace.
DS
Generational influences in the Korean workplace 2018.
Today we are witnessing increasing generational influences and a divide in the Korea workplace. Many firms are adapting to this change, as the workforce is increasingly a younger generation.
Much of the generational influences change is driven by an Old Guard mentality vs. the New Guard. The Old Guard, people in the 60s and 70s, holds to values and norms once common business practices in Korea. With the rise of the New Guard the older generation is increasingly marginalized as well as their influence.
This generational influences marginalization has accelerated with the latest round of Chaebol family succession well underway. As before with succession of the Chaebol Founders to a second generation of family control, which mostly occurred in the mid 1990s, all now is moving in to the third generation These heirs in the 40s are at the helm at Samsung, Hyundai Motor Group, and LG (as recent as this week), etc. In turn, management and trusted advisors surrounding these Chaebol heirs are now of the same generation, too.
In fact, as a prelude to the recent successions we’ve seen the exiting of older senior management, most stepping down and into retirement.
Between these groups we find a layer of managers and executives described by the term “sandwiched” — used to denote a generation now in their late 40s and into the 50s.
This age group has social, workplace and political views influenced by western education and work abroad that differ from those of the older generation of people in their 60s and 70s.
But in many ways their values, which emphasize the importance of collective organizations such as work, nation, and society, are still similar to those of the Old Guard generation.
As a result, the “sandwiched” group’s mentality often clashes with the younger generation whose top priority is individual freedom.
As one “sandwiched” executive shared “When I was a rookie, I didn’t have any choice but to be quiet when I had an issue or I disagreed with my superiors. But nowadays, the younger generation boldly express their opinions in the workplace.”
In turn, this younger generation now expects management to emulate this norm of open discussion and expression—a behavior that the Old Guard also find unacceptable and improper.
A Changing Workplace
The introduction of the “team system” and western norms by many Korean companies to address issues of a hierarchy system and to improve efficiency has increased the difficulty for the Old Guard to give direct orders to younger workers.
As noted a veteran manager, “Many young workers don’t recognize the authority of their seniors. They often say ‘we are all members of a team. No more, no less’.”
Other Concerns
Adding to the challenge, the younger generation sees many faults in both “sandwiched” managers and well as the Old Guard.
For example, the younger group argues that both older generations often erroneously blame others for problems. “They don’t realize the real problem. They are really stubborn and pigheaded. They are not ready to listen to younger workers.”
“They keep saying that we have to do this and that, but they never set a good example for us. Naturally, we don’t respect them at all,” said a young Seoul professional.
An Internal Challenge
Similar to today’s organizations in America, Korean organizations are presented with the internal challenge of creating harmony and cohesiveness among multi- generational employees.
Individuals from each generation (i.e. traditionalist, baby boomer, Generation X, or Generation Y) bring divergent values, beliefs, attitudes, and expectations based on their life experiences.
These multi-generational labels may not be used exactly the same in Korea, but the issues that Korean organizations face caused by the gap between different generations are the same.
Individuals of each generation group grew up in the same time period witnessing and participating in common historical events as well as political and economic changes.
Therefore, these individuals with similar frames of reference have an easier time building bonds and working together in harmony than working with individuals from other generation groups.
The particular characteristics of each generation deeply influence how employees think about many aspects of organizational behavior, such as motivation, satisfaction, creativity, innovation, loyalty, commitment, and teamwork.
This accentuates the importance of understanding the distinctive characteristics of each generation group in order to engender successful outcomes.
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Globalization and Trustworthy Management
Each weekend I turn my thought to sharing topics on Korea business. This week it’s my article on Globalization and Trustworthy Management from Korea Herald titled:
‘The Tall Man’ and the Globalization of Hyundai Construction
Hotel Architect Bill Swank opens Chaebol to West through Trustworthy Management
Bill was the first westerner hired by the Hyundai Group.
The story was written in 2013, but still timely.
Bill passed away in February 2014. It was an honor to know him. Bill was a huge advocate for my work.
Hyundai Motor Group Chaebol Reform
As a follow up to news on Hyundai Motor Group chaebol reform, we are seeing some interesting developments. First Samsung is one of the few Groups yet to reform their shareholder structure. That said, I feel they will adopt one similar to Hyundai’s recent plan– a hybrid from the traditional Korean Holding Corp. model.
For starters and some clarity regarding the spin-off and merger within the Hyundai Motor Group Chaebol reform, Hyundai MOBIS, the new de facto holding company still plans to further beef up its core auto parts business.
That said, operations for both domestic Korea modular and A/S parts will move over to GLOVIS as announced—overseas operations will remain under MOBIS.
In particular, MOBIS as the Group’s nerve center will focus more on R&D, and investing in future growth drivers like autonomous vehicles and connected cars.
Next… and getting lots of media coverage and in my opinion nothing that radical.
On Wednesday, Elliott Advisors, a hedge fund sponsor subsidiary of the U.S. fund, called on Hyundai Motor Group to step up its efforts to overhaul its governance structure after announcing it had acquired more than US$1 billion (1.05 trillion won) worth of stocks in three key affiliates of the Korean automotive group.
“While this step is encouraging, more needs to be done to benefit the companies and stakeholders,” Elliott said in a statement.
The hedge fund sponsor also called for a detailed roadmap to further enhance the Korean auto giant’s corporate governance, optimize balance sheets, and enhance capital returns at Hyundai affiliates.
Elliott Advisors said in the statement it looks forward to engaging with management and other shareholders directly on these issues and offering recommendations regarding the proposed plan.
In response, Hyundai said it will make continued efforts to enhance shareholder value and the worth of its affiliates while focusing on better communicating with shareholders.
I’ve also seen HMC sources note they plan to meet with Elliot teams during an upcoming investor event.
Again foreign investment in Korean publically held companies is nothing new.
For example, HMC’s total foreign ownership is about 46% of the Common Stock. Kia is at about 38%.
Elliott Advisors is estimated to own only a combined 1.4 percent stake in Hyundai Motor, Kia Motors and Hyundai MOBIS.
One more thing…
Did you have an opportunity to review my detailed 5 Page Report on Hyundai Motor Group Chaebol reform…. If not I please contact me… as has been very well received.
I’m also available to comment and answer questions as always…
DS
No One Does What You Do: Korean Business Advisor
As a trusted friend constantly reminds me, “Don, no one does what you do,” providing solutions as a highly respected Korean business advisor.
This noted…Contracts, legal agreements, and negotiations go hand in hand with business. I was once told that in Korea the purpose of signing a contract or agreement was essential to formalize the partnership. Over time terms would be subject to change and re-negotiation.
My Korea facing experience has been that the contract fundamentally solidifies the working relationship. However, to maintain the partnership contractual obligations the contract will require on-going changes to reflect business conditions. In contrast terms in legal agreement in the West are seen as immutable.
Challenges
Major differences in how Korean and Westerners perceive legal agreements can surface during the negotiation stage and even after the contract is in place. In particular, requests by Korean teams for changes to a Western company’s standard agreements and contracts can cause considerable frustration, especially for their legal counsel. In the West some “red lining” of a document may take place but legal teams may see unprecedented levels of questioning the most basic contractual language. Great patience may be required to walk Korean teams through the Western legal terminology and clarifications of what cannot be changed within the document to maintain compliance with international laws.
Finally, it is not uncommon for terms to be re-visited and questioned by other Korean departments—often with limited or no international legal or business experience— despite months of work between the Western and Korean lead teams!
Oh, one more thing
Ensuring success and sustainability in dealing with Korea-facing business partnerships will require well-communicated expectations and cross-cultural understanding. In particular, any business plan and strategy need to take into account differences in the cultural realities between the West and Korea.
It’s here I can help as a Korean business advisor proving solutions., and echoing my opening statement. “Don, no one does what you do.”
https://bridgingculturekorea.blogspot.com/2018/03/no-one-does-does-what-you-do-korean.html
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Gapjil and the Attack on Bullying
Gapjil ― bullying employees or forcing employees to be at one’s beck and call. A phenomenon associated with the hierarchical nature of Korean society and work culture.
This week we look at one of the more hard-hitting issues. As in past three posts, please feel free to share your comments. All welcome and appreciated.
Don Southerton author
Constant change is a trait of the Korean workplace. Most often change is initiated within the company as top down leadership mandates. Corporate restructuring within the major Korean Groups is common.
Shuffling of teams within departments and divisions annually is expected. That said, other factors contributing to change in the workplace today are outside forces, including the media and whistleblowers prompted by inappropriate actions by those in power in both the government and the private sector.
One not-so-surprising change is the growing push back and reporting of the strong arm or gapjil tactics in the workplace. One of the reasons is the heightened press coverage over instances of bullying by the members of the South Korean elite and privileged family businesses.
Linguistically, gapjil is a uniquely Korea term… and provides a look into Korea culture. The word, a newly coined term, is a colloquial expression referring to the arrogant or authoritarian attitude by someone in a position of power over others. The Korean culture of high power distance and strong hierarchical organizations have shaped and reinforced these attitudes. Sadly, gapjil is so much a part of the culture that we find individuals as subordinates on the receiving end of bullying-type situations guilty of the same actions to those below them.
The controversy and public scrutiny arise as Koreans become increasingly intolerant of the country’s biggest conglomerates, or chaebol, whose executives often act with impunity. The December 2014 “nut rage” incident gained worldwide attention and notoriety. The controversy centered on the overt belittling of a senior attendant by airline executive Heather Cho, daughter of the Korean Air Chairman, over the pre-flight serving of nuts, on board a departing Korean Air flight from NY’s JFK International Airport. The subsequent attempt by the Cho family and Korean Air to coerce employees to cover up the incident only added to public outrage. Similar “rages” continue to surface, adding to the fury over entitlement behavior among Korea’s elites.
Workplace Bullying
Workplace gapjil incidents have gone viral and Koreans have now started to perceive this as a serious problem. Previously, these incidents might have been dismissed or never reported for fear of retribution.
Studies report that the most frequently observed bullying behaviors are arrogant and crude language, abrupt task assignments, rejection of opinions, discrimination and character assassination.
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