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The informal dimension of human resource management in Korea: Yongo, recruiting practices and career progression

Horak, S. (2017). The informal dimension of human resource management in Korea: Yongo, recruiting practices and career progression. International Journal of Human Resource Management, 28(10), 1409-1432.
DOI: 10.1080/09585192.2015.1089062   
Link: http://dx.doi.org/10.1080/09585192.2015.1089062

Abstract
This research reports on the influence of informal social networks in Korea (i.e., Yongo) on recruitment and promotions practices of large, small, and medium-sized enterprises (SMEs). By using a social network theory frame, this research contributes to the convergence-divergence debate in international Human Resource Management (IHRM). From our analysis, we can
conclude that large firms use Yongo and related practices on the upper management level, whereas SMEs draw on informal social networks on middle and upper management level. The influence of Yongo is weakened by the recent need for skillful employees with specialized competencies. We regard Korean HR practices as being in a state of ‘soft divergence’ because
Yongo still represents an influential factor in HR practices. Moreover, we refer to the debate on the persistence of informal relationships in East Asia by demonstrating that Yongo is a rather
culturally driven institution; hence, we assume that it may persist and not diminish any time soon. Finally, implications for practice are drawn by outlining the difficulties expatriates face without being able to establish Yongo-based ties and propose solutions.

Keywords
Korea, Human Resource Management, recruiting, promotion, social networks, Yongo


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