The Hyundai Group
I. Title: The Hyundai Group
II. Time Frame: (1987 – 1989) The strikes of 1987 found their main base amongst workers in heavy industry, especially in Ulsan, the centre of Hyundai’s operations in South Korea.
III. Background of the study The Pressure built up during the harsh years of military dictatorship, economic boom, and management style had caused several labor strikes. For thirty years, South Korea had been ruled by a military dictator and growing calls for democracy had echoed through the 1970s and early 80s.
South Korea’s economic boom put Hyundai in a position wherein their strategy of low wages and hard work were no longer suffice in the face of rising competition from other developing nations and swelling demands from the country’s more independent youth generation. At Hyundai, employees viewed the owners’ style as authoritarian in which the consensus is what the boss says it is. Also, company had created an image that was unwilling to change with the times.
IV. Point of view Chung Ju Yung:
The founder of Hyundai, he is willing to tackle the impossible and unwilling to accept “no” from subordinates.
Hyundai Workers:
They want better working conditions and environment. They have been looked down on in Korea. They don’t have voices in management decisions and experienced erratic job schedules with lower wages.
V. Objectives 1. To improve the management style and cope with changes along with time. 2. To address the dispute between the management of Hyundai and its workers, such that the result will provide a positive sum that will satisfy both parties’ concern.
VI. SWOT analysis
Strengths:
1. The Hyundai group makes a wide range of products.
2. The company’s chairman is very persistent.
3. Workers are disciplined, para-military, single-minded, and self-sufficient machine.
4. The company has a good reputation.
5. The company has low cost of production thereby low-priced products.
Weaknesses:
1. Authoritarian leadership
II. Time Frame: (1987 – 1989) The strikes of 1987 found their main base amongst workers in heavy industry, especially in Ulsan, the centre of Hyundai’s operations in South Korea.
III. Background of the study The Pressure built up during the harsh years of military dictatorship, economic boom, and management style had caused several labor strikes. For thirty years, South Korea had been ruled by a military dictator and growing calls for democracy had echoed through the 1970s and early 80s.
South Korea’s economic boom put Hyundai in a position wherein their strategy of low wages and hard work were no longer suffice in the face of rising competition from other developing nations and swelling demands from the country’s more independent youth generation. At Hyundai, employees viewed the owners’ style as authoritarian in which the consensus is what the boss says it is. Also, company had created an image that was unwilling to change with the times.
IV. Point of view Chung Ju Yung:
The founder of Hyundai, he is willing to tackle the impossible and unwilling to accept “no” from subordinates.
Hyundai Workers:
They want better working conditions and environment. They have been looked down on in Korea. They don’t have voices in management decisions and experienced erratic job schedules with lower wages.
V. Objectives 1. To improve the management style and cope with changes along with time. 2. To address the dispute between the management of Hyundai and its workers, such that the result will provide a positive sum that will satisfy both parties’ concern.
VI. SWOT analysis
Strengths:
1. The Hyundai group makes a wide range of products.
2. The company’s chairman is very persistent.
3. Workers are disciplined, para-military, single-minded, and self-sufficient machine.
4. The company has a good reputation.
5. The company has low cost of production thereby low-priced products.
Weaknesses:
1. Authoritarian leadership