- Agriculture: 3%
- Industry: 39.4%
- Services: 57.6% (2009.)
The South Korean management is born with a mix of three influences
- The Confucianism
- The American business
- The Japanese business.
If the Japanese Management style is more promoted abroad, there is, indeed, a distinction between three Asian management styles: Japanese, Chinese and Korean management. Each management is represented by a particular type of organisation:
“The large and complex networked Japanese business, known as the kaisha or in it extended forms the kieretsu. The large and complex family or clan based South Korean conglomerates or chaebols. The smaller but strongly networked and inter-connected overseas Chinese family business”
T.Modern, D. Bowles (1998)
Two of the most famous Chaebol is Samsung and Hyundai. The Chaebols are peculiar to Korean Management; they are large-scale enterprise organized in family owned conglomerate.
“The Chaebols have led Korea’s revival from a war devastated, agriculture- dominated economy into one of the most dynamic economies”
M. Chen (1995)
The Korean management is also described as a decisive management, with a strong vertical hierarchy, for the communication and the power. Influenced by its culture Korean manager have a traditional respect for their senior, the seniority have a big impact in management and more precisely in promotion. In addition of this “high degree of centralisation” (“senior management which is 80% of the authority”- T.Modern, D. Bowles (1998)), there are horizontal concentration with all the functional control.
With a Korea Management built on Chaebols, blood relationships have impact in management the company, “the Confucian value of filial piety is strongly emphasised in Korea; and hence primary loyalties do to one’s family or clan, rather than to the state or society in general”( T.Modern, D. Bowles (1998)).
The international aspect, due to the globalisation the Korean management have to adapt itself to the international manager in the company. This confrontation between the Korean management and others management is interesting in order to understand the proper Korean management style and how it is different from other.
Research problems
Even if the study about Asia management is very spread on magazine, newspaper, books, essay and case study and study of economic model like the Toyota Production System or Kaisan …etc; the Korean management is poorly promoted abroad. In general it is the Korean culture which is poorly promoted abroad.
According to a survey in 2009, which questioned 4,214 adults aged between 18 and 70 in 25 countries, foreigners associate South Korea with the following images in this particular order: technology (12 per cent), cuisine (10.7 per cent), soap operas (10.3 per cent), people (9.4 per cent), economic growth (6.2 per cent), the Korean War (5.4 per cent) and North Korea’s nuclear threat (4.1 per cent). These are the concepts that come to mind to foreigners when they heard the word South Korea. If the technology come first it is because the South Korea’s mobile phone are truly appreciate
Russians have the most positive image about Koreans among people in 25 countries, followed by Canadians, Saudi Arabians, Mexicans, Filipinos and Italians, according to this poll. The survey found that Koreans, meanwhile, were less popular in the United States, Japan, Germany, Hong Kong and Taiwan.
Furthermore because of the distance between the Korea and England and a financial investment reduced it will be difficult to directly go to the source in South Korea. The primary researches are complicated. However, all means possible will be put in place to meet as much as possible persons representing the South Korean Management or Korea community. As a non –Korean speaker the data which can be collected are limited to be in English, in French or Spanish as a last resort and it is not easy to found data about the main subject, a big part of the data collected until here are from the library online or outline and it is necessary to vary the source. Most of the data collected in the library are pretty old data. But this research have a subject, off the beaten track so it is more than interesting to collect data and find new.
Aims and objectives of the study
The main subject is the Management in South Korea, this research’s main objectives is to better understand this notion of Korean Management Style. The main point it is not only to describe and evaluate, but to show:
- How is it unique?
- How it differs from the Asian model?
- There is such a thing as Korean Management Style?
The aims for this study are:
- The national and business culture of South Korea
- The role of Chaebol
- Style of management
- Strategic management
- Comparative approach: a parallel with other management
- The confrontation with other management in a globalisation context
Outline theoretical framework, literature review
As said above all this study starts with Daussy’ book: Ida in the land of the morning calm. Until here, the research has revealed some very relevant articles and book. My secondary data includes journal article, academic article, academic book, review, survey, internet site, case study, newspapers reports…
In my idea to know more about South Korea Management the LSBU library give the possibilities to access to some relevant review : Management decision, and newspapers as Far eastern Economic Review, Financial Time, Harvard Business review for example and books :
- Chen, M. (1995) Asian management systems: Chinese, Japanese and Korean styles of business, London and New York
- Cherry, J. (1993) Republic of Korea, New York
- Rowle C. (2002) Managing Korean Business, London
- Hugh T. P., Yung C. (1994), The financial development of Japan, Korea and Taiwan, Oxford university
The Management decision review proposes an article very enthralling about South Korean Management by Modern, T. Bowles, D. (1998), Management in South Korea: A review, describes from A to Z the South Korea Management. The methodology and approach that has been used is based on literature study and interpretations of existing analysis presenting the South Korea Management in five parts: South Korea, Three Styles of Asian capitalism, Contemporary South Korea management, Parallels with France and Futures issues. This academic article, use the link between the Korean culture and the business to show that the Korean management is a very complex management with a lot of influence and with particular characteristic which make Korea one of the G-20 major economies. It is a very good base to start this study. Some other academic journal or books is very interesting like:
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Chen, M. (1995) Asian management systems: Chinese, Japanese and Korean styles of business, London and New York
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Kae H. (1997) Korea Management : Global strategy and cultural Information, Berlin and NY
Chen’s book with a comparison between the three Asian management (Japan, China and Korea) shows how each management is unique and has a proper way to survive. This second references is a critic about a book published about South Korea Management it is an article found outside of the library but very relevant. (To see more about the references and literature review cf. references)
Outline of proposed methodology
This study will use a range of secondary sources “Secondary data is data which already exists” (Hussey and Hussey, 1997). For this dissertation the secondary will be based with the access to the computer and to the library. Even if internet doesn’t propose a lot of relevant documentation some articles, academic journal, interview, government publications, company publications… will be interesting in order to be analysed. The access to the library is and will be a very good centre to found data with the book, the online and outline articles (academic or not), published case, magazine, report and newspaper (Far eastern Economic Review, Financial Times).As a non-Korean speaker, this is an obvious limitation since it is representing a restriction about the volume of data it will be possible to analyse.
This study will follow a qualitative and quantitative approach; the quality approach represents analyse of the secondary data and based on parallel approach between cases. It is completely understand that all the secondary data read will be analysed, compared, and reviewed when they will be put in this project. That quantitative approach will be used with the primary research:
The primary research will be used with various interview set up on January. The main point is to found Korean Managers in Korea or abroad and Korean firm in order to apply the theory with a practical approach. As previously stated Korea is a far away country so it is composed a restriction and it will be difficult to directly go to the source but internet and my relationships with some Korean person as Kim Jun-Soo (Korean Manager on his own company) will help me to set up interviews. After the interview set up the main point for the analysis will be to understand if the data read and analyse still here are relevant and represents the reality. So the analysis will be based on a comparative approach between theories and reality.
The research timetable, this entire research will be completed before the Monday 9th May 2011. At first, it seems like a very short period time passing it is completely true that to complete this study the work will be intense, but it is totally interesting and a subject off the beaten track which can be very memorable for some people.
Research timetable
For conclude it is important to highlight the importance of a research proposal, having a clear plan show the priority and a view of the future. This report is precious in order to understand the work which is waiting for the next days and months. Although this research timetable is perhaps lacking in detail, the study objectives have been set up and the methods to achieve them thought. In many aspects, some elements of this proposal will be changed, deepened, assess more or less relevant.
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References
- Chen, M. (1995) Asian management systems: Chinese, Japanese and Korean styles of business, London and New York
- Cherry, J. (1993) Republic of Korea, New York
- Rowle C. (2002) Managing Korean Business, London
- Hugh T. P., Yung C. (1994), The financial development of Japan, Korea and Taiwan, Oxford university
- Daussy, I. (2006), Ida au pays du matin calme, Korea
- Kae H. (1997) Korea Management : Global strategy and cultural Information, Berlin and NY
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Modern, T. Bowles, D. (1998),Management in South Korea: A review, MCB University Press UK. Management Decision 36/5 (p316-330)
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Sangjin L., Sang M. L (1997), Management style and Practice of Korean Chaebols, Management review, Vol. 29 Issue 4, (p95-110) California
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Sviatoslav M., Seung Chan P. (2010), South Korean Chaebols and Value-Based Management, Journal of Business Ethics (2010) 92:49–62.
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Su Sig C, (2008)Exploring the components of success for the Korean Chaebol, Journal of Business & Industrial Marketing23/5 (p311–322 ),Seoul Women’s University, Seoul
