Korean corporations, or so-called 'chaebols', are HUGE and intentionally diverse. Many were started in 1945 after Japanese surrender and began flourishing in 1953 at the end of the Korean war. Many are still controlled by dynastic families. The largest are therefore controlled by Korea's ‘Royal Families'.
The stock market value of all the companies which comprise the largest chaebol is said to exceed the combined value of the next nine corporations listed by market capitalisation. Given that exports generate on average more than 50% of South Korea's economy, this top chaebol alone reportedly accounts for 20%-30% of the nation's GDP on average.
Predictably there is fierce competition to win a long and secure career working for one of these national-turned-global juggernauts. Twice yearly the largest corporations arrange entrance exams for up to 200,000 applicants at exam centres all across the country to kick off the formal selection process.
These applications are themselves preceded by years of regular daytime schooling (9am-4pm), zealous night-time cramming (5pm-9pm) and additional sports, music or language classes at the weekends to add some non-academic excellence with which to desperately distinguish one's application from the thousands (and thousands) of others. This effectively transforms high school and university into a gruelling, ceaseless, manically competitive scramble to gain a foot-hold in a sheer corporate edifice which remains impenetrable to those who fail to make the grade.
The 5,000 candidates who are selected annually virtually redefine the word 'elite'. Most share a relatively narrow list of socially prestigious surnames, all have graduated from a handful of top universities and most were high-school buddies before that. For the lucky few it is a progression from playground peers to 'frat-rats' to corporate clique. One thing is for sure; for those who make it and for those that don't, life will never be the same again.
http://www.cnet.com/news/the-chaebols-the-rise-of-south-koreas-mighty-conglomerates/
Having won such coveted employment one might be forgiven for thinking that the pressure was finally off. However the selection process turns out to be just a prequalifier for a much longer trial; that of endurance and survival.
Aside from the entrance exams, candidates are selected on their academic record and social background to ensure that they are .. ‘worthy'. Little consideration is given to a candidate's readiness to work abroad, which would be logical given that most large Korean corporations are now formidable global competitors. When fresh graduates are told that they will be dispatched to Saudi for their first 18 months in the job, they accept this as a small fealty for winning their dream employment.
Cynically this is an endurance test, designed to sort the survivors from the quitters, which parallels the concept of basic training or boot camp. Like squaddies in the army, the dispatched graduates either sink or swim. Those that sink, usually resign and return home devastated that they lost everything that the dreams of their whole family were built on. For the survivors, the price of victory is the insecurity that the longer you endure and the higher you progress, the easier it is to have a career toppled completely.
Inhuman Resources
Somewhat mind-bogglingly, Korean business divisions are reorganised every 6 months; from the departments within the division, right down to the staff in each team of each group of each department. While the division heads decide the new structure of the division, it is Human Resources (HR) which has total autonomy on filling the structure with people.
Managers remain accountable for the performance of their team or group, however they get no say over who they keep or lose during the reorganisation, nor the size of the revamped team or any recruitment if necessary. HR will decide everything, not based on the manager’s input but based on rigorous systems which are astonishing to see outside of the military.
When such sweeping changes are made as often as twice a year, one wonders exactly how the efficacy of an organisation is judged on such short timescales. Given that people require time to adjust to the new structure, the responsibilities of each unit and the workflow between them, it would be no surprise if the staff spent most of their time simply trying to figure out how the company is wired.
Top Secret
To make the working environment even more exciting, the structure of the division remains a carefully guarded secret throughout the whole year. Employees may view the structure on their computers but are not allowed to save a copy, print it to paper or even to capture a screenshot of the organisation. Inevitably some have dared to use their smartphone to take a photo of their screen, which has resulted in some chaebols obliging each employee to either buy smartphones without cameras or else to simply surrender their phones each day when they report for duty.
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| Dream Job : Social status is a key factor |
Performance reviews
Each year staff are subject to an annual performance review and graded A to E. A proscribed percentage of each team must receive grade A (10% pay rise), grade B (5% pay rise), C (no pay rise), D (5% reduction) & E (10% reduction). The manager may decide which staff receive which grade, but the spread of grades is fixed, even if the performance of the whole team is great or dismal.
Recruitment and redundancy
HR sets recruitment criteria, assess candidates and assigns new recruits to managers when HR deems necessary and similarly HR sets redundancy criteria, assess candidates and dismisses them when HR decides appropriate. All this is done over, above and despite the opinion of the manager who simply has to deliver what is required with the team he is given.
After a few months in this environment, it comes as little surprise when a colleague approaches wearing a proud but tearful face to explain that he was honoured to be part of the team but he has been told to clear his desk so he wishes everyone continued success and happiness in their work without him.
Incredibly a person's 'untouchable' status is officially known to HR and to their team manager, who remain powerless to dismiss the individual, even if he contributes nothing on a daily basis, which often they don't. It is a sorry manager who is lumbered with untouchable staff by a knowing HR but his team is still expected to exceed expectations.
At higher levels, a person may become untouchable and therefore protected, if his discredited actions were instructed by his seniors. Sure, he knew he was doing wrong but he was powerless, he was ‘just following orders’. The reward for not implicating those above him is to be exiled to a new position created somewhere abroad from where he will continue to earn a tax free salary with expat perks while remaining conveniently absent from daily company business.
The Annual Admonishment
Against this background the highlight of the corporate year is reduced to a farcical piece of theatre, however all staff are still expected to take it seriously. This is when the CEO suspends normal business for an entire day, calls his 200 top managers into the massive boardroom, then invites his selected targets to stand one by one while he personally scolds them and exacts grovelling apologies, admissions of blame and promises of renewed effort from each of them. Meanwhile every other employee watches live on their laptop.
Once per year this ritual admonishing starts shorty after the 8am corporate broadcast as the CEO takes his seat on a raised platform with long rows of parallel tables stretching away in front of him. Protocol dictates that executive management take the central tables at seats closest to the CEO with the senior and upper management carefully arranged on the outer tables and further from the CEO.
One by one, the CEO calls each target to attention, whereupon the victim stands bowed with horizontal torso, hands clasped by his knees and eyes fixed firmly on his feet. The CEO then lambastes the hapless wretch with details of his failures, what his duties were, what he should have done, how he failed in those duties and shamed his co-workers, the CEO and the company.
Depending on the issues, the CEO's scrutiny focuses for 5-10 minutes on each target with approx 10 targets being held to account her hour.
Finally, with all the irony of a man who inadvertently steps under a bus while musing on the eulogy he may receive one day, the CEO then also apologises for putting his faith in so many undeserving managers whose failures have clearly wasted the good work and sacrifice of the loyal staff under them. The CEO implores everyone to redouble their efforts to make up for the lost ground and bring home the victory which the company richly deserves. This entire performance lasts 8 to 10 hours during which the rest of the staff finally see exactly what it is that they competed so hard for - and what they will have to endure if they wish to continue any further.
The Art of Apology
Social observers like to repeat the often-heard phrase that you can never apologise enough to a Korean. Certainly the mass media likes to regularly (and relentlessly) take foreign governments, dignitaries and moguls to task for failing to be 'sufficiently sincere' with their apologies. Regular targets include North Korea (no surprise), Japan (inevitably) and others who upset Korea's fragile sensitivities.
When Koreans themselves apologise, it is admittedly done very well, crossing over into some sort of art form. As often as not, when done well, a good apology will in time be rewarded with genuine forgiveness. In fact many business leaders have not only been forgiven by the state but even pardoned from their jail terms. The most recent example perhaps being the release of 14 'notable businessmen', including SK's Group Chairman, released in August 2015, imprisoned in 2013 for embezlement. Upon his release, holding a bible in fact, he bowed sincerely and apologised deeply "for causing concern to the public". From the awed reaction of the assembled crowd, clearly nobody expected an apology for the actual embezelment itself.
http://www.koreatimes.co.kr/www/news/nation/2016/05/116_184826.html
Probably the most high profile pardon so far was afforded to the former head of the Samsung Group in 2009.
http://www.ft.com/cms/s/0/983c3922-f423-11de-ac55-00144feab49a.html#axzz48jXkE9co
The problem with granting pardons to high-profile transgressors is that the crimes, and by extension the law, are perceived by the public to be flexible (at best) or worthless (at worst). The public then take this as a signal to enjoy a little flexibility with the law themselves.
Nut Rage
Deeply penitent Heather Cho, former Vice President of Korean Airlines (and, quite co-incidentally, daughter of KAL's Chairman and CEO) was charged with commanding the pilot to return to the departure gate at New York’s JFK International Airport after cabin staff served her macadamia nuts in a packet instead of on a plate.
During the trial, there were allegations of attempts to silence the witnesses however the cabin staff’s testimonies were supported by the passengers. Ultimately a one year prison sentence was issued for obstructing aviation safety, which carries a maximum possible 10 year sentence.
The case highlighted the increasing perception amongst the public that the children of chaebol moguls do not deserve, and cannot handle, the responsibilities of the positions that they inherit.
Corporate Apologies
These came thick and fast in 2014 and 2015
Everything from crashed airliners
http://www.washingtonpost.com/news/worldviews/wp/2013/07/08/asiana-airlines-president-bows-in-apology-for-crash-a-show-of-koreas-very-different-corporate-culture/
HR sets recruitment criteria, assess candidates and assigns new recruits to managers when HR deems necessary and similarly HR sets redundancy criteria, assess candidates and dismisses them when HR decides appropriate. All this is done over, above and despite the opinion of the manager who simply has to deliver what is required with the team he is given.
After a few months in this environment, it comes as little surprise when a colleague approaches wearing a proud but tearful face to explain that he was honoured to be part of the team but he has been told to clear his desk so he wishes everyone continued success and happiness in their work without him.
The Untouchables
The way to beat the system is to know something damaging to the reputation of a higher mandarin in the company, or better still, to have aided him in his skulduggery. In this way a person becomes 'untouchable' - at least until the downfall of said mandarin.Incredibly a person's 'untouchable' status is officially known to HR and to their team manager, who remain powerless to dismiss the individual, even if he contributes nothing on a daily basis, which often they don't. It is a sorry manager who is lumbered with untouchable staff by a knowing HR but his team is still expected to exceed expectations.
At higher levels, a person may become untouchable and therefore protected, if his discredited actions were instructed by his seniors. Sure, he knew he was doing wrong but he was powerless, he was ‘just following orders’. The reward for not implicating those above him is to be exiled to a new position created somewhere abroad from where he will continue to earn a tax free salary with expat perks while remaining conveniently absent from daily company business.
Chaebol humour
There was a joke in South Korea back in the 1990s. It went like this:
What would employees of the mighty Korean conglomerates -- the so-called chaebols -- do if they were accidentally confronted by a fearsome bear while strolling through the forest?
Hyundai employees would club the bear to death without hesitation.
Daewoo would call its Chairman Kim Woo-jung and await his command.
Samsung would hold a meeting -- with the bear still in front of them -- to discuss how to proceed.
LG would wait for Samsung's response, and then do the same
http://www.cnet.com/news/the-chaebols-the-rise-of-south-koreas-mighty-conglomerates/
There was a joke in South Korea back in the 1990s. It went like this:
What would employees of the mighty Korean conglomerates -- the so-called chaebols -- do if they were accidentally confronted by a fearsome bear while strolling through the forest?
Hyundai employees would club the bear to death without hesitation.
Daewoo would call its Chairman Kim Woo-jung and await his command.
Samsung would hold a meeting -- with the bear still in front of them -- to discuss how to proceed.
LG would wait for Samsung's response, and then do the same
http://www.cnet.com/news/the-chaebols-the-rise-of-south-koreas-mighty-conglomerates/
The Annual Admonishment
Against this background the highlight of the corporate year is reduced to a farcical piece of theatre, however all staff are still expected to take it seriously. This is when the CEO suspends normal business for an entire day, calls his 200 top managers into the massive boardroom, then invites his selected targets to stand one by one while he personally scolds them and exacts grovelling apologies, admissions of blame and promises of renewed effort from each of them. Meanwhile every other employee watches live on their laptop.
Once per year this ritual admonishing starts shorty after the 8am corporate broadcast as the CEO takes his seat on a raised platform with long rows of parallel tables stretching away in front of him. Protocol dictates that executive management take the central tables at seats closest to the CEO with the senior and upper management carefully arranged on the outer tables and further from the CEO.
One by one, the CEO calls each target to attention, whereupon the victim stands bowed with horizontal torso, hands clasped by his knees and eyes fixed firmly on his feet. The CEO then lambastes the hapless wretch with details of his failures, what his duties were, what he should have done, how he failed in those duties and shamed his co-workers, the CEO and the company.
Without lifting his gaze from his shoes, the accused then admits complete personal responsibility, without daring to suggest any mitigating circumstances. He promises he has learned from his mistakes; it will never happen again. Meekly he asks for one more chance to redeem himself with longer working hours, superhuman effort and unfailing determination so that he can correct his mistakes and turn his failures into success for the glory of the company.
Depending on the issues, the CEO's scrutiny focuses for 5-10 minutes on each target with approx 10 targets being held to account her hour.
Finally, with all the irony of a man who inadvertently steps under a bus while musing on the eulogy he may receive one day, the CEO then also apologises for putting his faith in so many undeserving managers whose failures have clearly wasted the good work and sacrifice of the loyal staff under them. The CEO implores everyone to redouble their efforts to make up for the lost ground and bring home the victory which the company richly deserves. This entire performance lasts 8 to 10 hours during which the rest of the staff finally see exactly what it is that they competed so hard for - and what they will have to endure if they wish to continue any further.
The Art of Apology
Social observers like to repeat the often-heard phrase that you can never apologise enough to a Korean. Certainly the mass media likes to regularly (and relentlessly) take foreign governments, dignitaries and moguls to task for failing to be 'sufficiently sincere' with their apologies. Regular targets include North Korea (no surprise), Japan (inevitably) and others who upset Korea's fragile sensitivities.
When Koreans themselves apologise, it is admittedly done very well, crossing over into some sort of art form. As often as not, when done well, a good apology will in time be rewarded with genuine forgiveness. In fact many business leaders have not only been forgiven by the state but even pardoned from their jail terms. The most recent example perhaps being the release of 14 'notable businessmen', including SK's Group Chairman, released in August 2015, imprisoned in 2013 for embezlement. Upon his release, holding a bible in fact, he bowed sincerely and apologised deeply "for causing concern to the public". From the awed reaction of the assembled crowd, clearly nobody expected an apology for the actual embezelment itself.
http://www.koreatimes.co.kr/www/news/nation/2016/05/116_184826.html
Probably the most high profile pardon so far was afforded to the former head of the Samsung Group in 2009.
http://www.ft.com/cms/s/0/983c3922-f423-11de-ac55-00144feab49a.html#axzz48jXkE9co
The problem with granting pardons to high-profile transgressors is that the crimes, and by extension the law, are perceived by the public to be flexible (at best) or worthless (at worst). The public then take this as a signal to enjoy a little flexibility with the law themselves.
Nut Rage
 |
| Nut Rage: Heather Cho - apologies from the rich and famous require a special sincerity |
Deeply penitent Heather Cho, former Vice President of Korean Airlines (and, quite co-incidentally, daughter of KAL's Chairman and CEO) was charged with commanding the pilot to return to the departure gate at New York’s JFK International Airport after cabin staff served her macadamia nuts in a packet instead of on a plate.
During the trial, there were allegations of attempts to silence the witnesses however the cabin staff’s testimonies were supported by the passengers. Ultimately a one year prison sentence was issued for obstructing aviation safety, which carries a maximum possible 10 year sentence.
The case highlighted the increasing perception amongst the public that the children of chaebol moguls do not deserve, and cannot handle, the responsibilities of the positions that they inherit.
Corporate Apologies
These came thick and fast in 2014 and 2015
Everything from crashed airliners
http://www.washingtonpost.com/news/worldviews/wp/2013/07/08/asiana-airlines-president-bows-in-apology-for-crash-a-show-of-koreas-very-different-corporate-culture/
To the theft of customer’s credit details
http://www.businesskorea.co.kr/article/3007/information-insecurity-public-apology-en-masse-resignations-korean-bank-ceos
http://www.businesskorea.co.kr/article/3007/information-insecurity-public-apology-en-masse-resignations-korean-bank-ceos
Never a dull moment ;)
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