Ready for global success? Strengths and weaknesses of Korean HRM

Fabian Jintae Froese

doi:10.1057/s41291-020-00109-z

Abstract

Fueled by a highly dedicated and highly skilled workforce, South Korea (henceforth Korea) has enjoyed tremendous economic growth and developed numerous successful global companies. In the past, Korean companies benchmarked Japanese and US HR practices. However, Korean companies are now at the crossroads, facing slowing economic growth rates, an aging population, changing gender roles, and an increase in foreign employees. This article reviews the strengths and weaknesses of Korean HRM and presents some tentative recommendations how Korean companies can respond to these challenges. If Korean companies intend to continue their global success, they are recommended to adapt their staffing strategy, organizational culture, and corporate language policies to embrace an increasingly diverse workforce.

Highlights

As a country lacking natural resources, it is astonishing how rapidly South Korea ( Korea) catapulted itself from a poor, developing country in the 1960s into an industrialized economy within a few decades
In line with socio-economic changes, Korean human resource management (HRM) evolved in three phases (Froese 2019): pre-1987, 1987–1997, and post-1997
Confucianism and Japanese HRM greatly influenced Korean HRM resulting in a seniority-based system and lifetime employment

Summary

Introduction

As a country lacking natural resources, it is astonishing how rapidly South Korea ( Korea) catapulted itself from a poor, developing country in the 1960s into an industrialized economy within a few decades. In the wake of these changes, Korean companies adopted a US-style performance-based HRM system and flexible labor markets. I analyze the strengths and weaknesses of Korean HRM and provide some tentative conclusions how Korean companies can manage today’s challenges. Korean companies have largely adopted “high performance” and “high commitment” HRM systems, emphasizing HR practices that motivate employees, develop abilities, and provide opportunities (Jiang et al 2012).

Results

Conclusion