Question

What are some recommendations to international firms that are planning on managing in South Korea about organizational behavior specificities of that country that should be important when creating policies about that country.

Answer 1

Though Korea is very Westernized, they still follow their tradition culture that affects business and organizational culture significantly. Thus it becomes necessary for us to craft policies according to their culture

• South Koreans harmony and balance, expressed as Kibun – a harmonious state of mood/balance. it is disrespectful to disturb others Kibun, by rebuking them in public or confronting them. Koreans give their answers positive and avoid negative answers/ Conflicts. Contrast with American behavior- direct and clear communication. They give negative information, late, and in an indirect/ ambiguous way. So, it is necessary to create communication policies that go along with this. Eg memos, addressing queries, performance reviews etc can be made private so that negative conversations don’t take in public. Communication should be more in polite and friendly way
• People owe loyalty to their parents, authorities etc. People show their loyalty by respecting their orders. They usually don’t conflict with superiors whereas in America it is agreeable to voice their own opinions. Juniors may not come out in open to raise issues. So a private area and private communication may be necessary. Emails may be helpful to seek opinions form juniors.
• High uncertainty avoidance- Koreans value structured situations. Rules, procedures and decision making should be clearly documented to show what is expected and how to behave in s situation
• High power distance is a characteristic of traditional societies like South Korea. Seniors enjoy high respect and authority. Senior members may not treat juniors as equal to them though they respect them. So seniors may not negotiate with juniors from other countries. Only people of equal decision-making power should be allowed to negotiate with Korean counterparts. South Koreans are friendly, and their culture gives importance to group ties-Collectivism.South Koreans love belonging to a group and working for the group. Individual ambitions are secondary to them. Business may have many family members in them. It may take longer for them to take business decisions because they will have to discuss with many family members. Policies should allow for time in decision making
• Benevolence- South Koreans do business that is mutually beneficial. To do business with a company we may need an introduction through a common ally. So policymaking should favor relationship building
• Korean management style(K-Type management) is characterized by top-down decision-making, seniority + merit-based pay, and personal loyalty. So compensation should be both seniority-based and merit-based. Decision making should allow for communication flow across the top and consent from top management
• The organization structure is centralized and they value procedures / formal rules. So, the Organisational structure should be formalized with hierarchy
• Gift giving is common. Inexpensive gifts are given. Senior members are given gifts that are of more value (not necessarily more expensive). Hence, gift giving should be allowed and rules regarding gift giving should be clear