Fourth Cultural Post: Corporate Hierarchy
For my fourth Cultural Post I decided to discuss about the importance of the concept of hierarchy in the South Korean corporate world.
It is known that in South Korea, companies are strictly hierarchical, meaning that the important decisions are taken by the top executives and delegated down for their implementation. In fact the largest conglomerates (the "Chaebols") are family run companies where all the power and ownership resides within the family.
Besides that written hierarchy, another form that dominates is the hierarchy based upon personal relationships and loyalties. Koreans tend to do business and consider people they already know that are "secure", in this way, people who are well connected are considered as very powerful and valuable.
In respect to the confucian traditions, managers, who are respected just because they have the title, are expected to take care of the well being of their staff, which includes an interest in their personal life. In fact, the quality of relationship is the number one element to consider when doing business/working with someone. It is the most important factor that can determine a successful partnership/business deal; which means that one has to be patient and maintain a healthy and positive relationship to be able to, one day, collect the benefits.
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