Formal and informal practices in contemporary Korean management
Yang, I., & Horak, S. (2019). Formal and informal practices in contemporary
Korean management. The International Journal of Human Resource Management,
30(22), 3113-3137. DOI: 10.1080/09585192.2017.1342683
Link:
https://doi.org/10.1080/09585192.2017.1342683
Abstract
South Korean human resource management (HRM), characterized by lifetime
employment and seniority-based promotion, has been suggested as an important
factor contributing to the growth of Korean companies. However, the Asian
financial crisis in 1997 raised questions about these practices, and Korean HRM
underwent drastic changes, mainly by adopting a more flexible labor market
approach. Despite Korean companies’ efforts since then to change their HRM to a
more Western (US) style, much research indicates persistent challenges, both
domestically and internationally. In an attempt to explain the challenges, we
argue, in this conceptual paper, that it is necessary to consider the informal
organization of Korean management in relation to formal organization. We suggest
there are complementary overlaps and close integration between formal and
informal organizational modes in Korean management. We fill a gap in the
literature on the role of informal organization with indigenous Asian notions
supporting the balance of opposition.
Keywords
Korean management, formal organization, informal organization, complementary
overlap.