Year-end Promotions, Re-structuring, and New Assignments: Korea’s Corporate Culture 2016
Year-end organization wide promotions, re-structuring, and new assignments for teams are part of Korean corporate culture. Top to bottom within Korean companies they occurs sometime between early December and early January, with the changes to senior leadership happening first, and team level changes as a norm made known the week just before or between Christmas and New Year’s Day.
After the Holidays, teams then report back to work. Some assume new roles frequently in departments they have little experience–requiring employees to acquire new skills–sink or swim. Meanwhile others are en-route to assignments in overseas operations; a challenge for those working outside Korea for the first time. In the days that follow those shuffled brief their replacements, as staff remaining in their jobs update new management teams on the status of projects and issues.
Some years we do see less re-organization of the teams, departments, and division—some years more. The later can be driven by leadership looking to “shake up” the organization to spur growth. All said, change is commonplace and an accepted side of Korean business.
This year’s concerns in the Korean economy had prompted the major Korean groups to initiate a November early start to the year-end re-structuring…. But no sooner than announced, the Korean Presidential scandals has required the Groups to re-consider, pushing off the early annual move. This said, LG, CJ and Kolon have finally started their annual shifting of staff…… Media reports Samsung and SK to do so very soon, too… with the Hyundai Motor Group planning to announce promotions of executives at the end of the month.
So what to look for later this month.
The top Chaebol will post their promotions and provide some insight on trends. For example, we’ll see public announcements in the Korean language business media on a total number of the leading chaebol executives promoted–those advancing from General Manager (bujang) to Director (e-sa), and above. The Chaebol usually also comment on whether this year’s promotion number is more or less than in the past and “why.”
More recently the number of female employees who are made executives with a Group has been highlighted, a gradual move upward by women in the ranks. This is in contrast to a time when they were considered temporary staff and not long-term staff on track to be considered for management.
Finally, for teams below Director, time in rank promotions follow a model of 3-4 years for each of the first tiers up to Manager. For each upper managerial level—Deputy General Manager and General Manager– 5 years in a common tenure between each grade level.
For global teams, I suggest you congratulate those promoted, but also be sensitive to team members who were passed over… time in grade just one criteria for promotion.
Questions? Comments? Just ask
Everything Korea, December 26 Episode, New Year Greetings
Like many Asian countries, South Korea has two different New Year days—one that follows the solar calendar and one that uses the lunar calendar.
Traditionally the lunar New Year’s, called So-nal, has had greater cultural and familial significance (In 2017 the 3 day holiday will be celebrated on January 27 – 30).
As for the solar New Year’s celebration, in 1896, as part of reforms instituted to Westernize and modernize Korea, the Gregorian calendar was adopted, along with some of the West’s holidays such as the January 1st New Year’s celebration.
Today I find South Korea’s celebration of the Jan. 1 New Year similar to celebration in America. For example, Koreans make New Year’s resolutions where they promise to exercise regularly, eat fewer sweet things—such as chocolates and candy—or endeavor to study harder.
It’s appropriate to wish your Korean colleagues a seasonal greeting this week prior to the holiday, just as you will wish your non-Korean friends “Happy New Year.”
The good news is …
The Korean New Year greeting is “Sae hae bok mani ba deu say yo.” It is a great phrase to learn because it will also be used again at the lunar New Years celebration in late January.
Again, pronounced: sae hae bok—mahne—bah deu say yo.
Oh, one more thing. This is the last Vodcast of 2016. Look for my upcoming thoughts for 2017 out early in 2017.