managing cultural diversity - south korea
Post on 18-Mar-2016
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SOUTH KOREA
Doing Business In
대한민국
Pharmaceu;cal industry Sustainable development (renewable energy, electric car, urban transport)
Lines of business
Car industry (Hyundai, Kia) : First produc;on world rank Electronic industry : South Korea is the main semiconductors’ producer in the world
Steel industry : First produc;on world rank Sheepbuilding
Main sectors
Growth sectors
The world of Work Decision making & hierarchy Predominance of the hierarchy
Formali;es respect
Working condi7ons Legal dura;on of working ;me : 40 (or 44) hours per week
Contract of employment : ‐ Permanent employees: Regular team
‐ Non‐permanent employees: Part‐;me worker, temporary worker, daily worker, entrusted employees
Average monthly gross wages : 3.551.046 that is 2 557 euros
Trade Unions Main trade unions : KCTU & FKTU
Nearly 11 % of unioniza;on
Strikes and demonstra;ons
Expatria;on in South Korea
French companies in South Korea Sector Companies
Insurance AXA
Car industry Renault
Banking Crédit Agricole
Professional services KPMG Consul;ng Inc. Deloi]e Consul;ng
Construc;on industry Lafarge SA
Retailing Carrefour SA Decathlon
Adver;sing JCDecaux SA
Telecommunica;on Orange
Employability of French expatriates
Reduced employability French subsidiaries implanted in South Korea mostly employ Korean workers (at 99%)
In 2007, nearly 300 execu;ves worked for French companies implanted in South Korea
Tourism Hotel trade Services in general Tex;le industry
Recrui7ng sectors
Geert Hofstede
Korea France
Power distance 60 68 Hierarchical society : indivuals are not equal Centraliza;on Boss gives orders, the subordinate expect to be told what to do
blind trust insuperiors and their choices Respect important to elder people
Power Distance
People belong to ‘in groups’ that take care of them.
People are loyal to their group
People use more the “we” than the “I”
Hofstede and Trompenaars
South Korea France
Individualism/collec;vism
18 71
Individualism/Collec;vism
« Working in order to live » People value equality Solidarity Quality of their working lives Compromising & Nego;a;on
Geert Hofstede
Korea France
Feminity 39 43
Feminity/Masculinity
Hofstede South Korea France Uncertainty avoidance
85 86
France and South Korea are very much alike Rigid codes and behaviour Highly structured Norms : Security, punctuality, precision, hard work and tradi;on
Uncertainty avoidance
Hofstede South Korea France Long term Orienta;on
75 39
‐ Have to serve the durability of the company ‐ persistence ‐ ordering rela;onships by status and observing this order ‐ thrin ‐ having a sense of shame
Long Term Orienta;on
Trompenaars South Korea France Universalism/par;cularism
Par;cularism Par;cularism
South Korea has high par;cularism: belief that circumstances dictate how ideas and prac;ces should be applied Legal contracts are onen modified People onen change the way in which deals are executed
Universalism/Par;cularism
Gesteland Korea France
Monochronic/polychronic
Moderate Monochronic
Variably monochronic
Ponctuality Rigid Schedule and deadlines Mee;ng seldom interupt
Monochronic/Polychronic
Gesteland South Korea France
Reserved or expressive
Reserved Expressive
Speak sonly Do not interrupt each other Prefer silence One’s arm distance Avoid con;nuous eye contact Important not to lose face ! : Will not admit to not knowing an answer Refrain from open cri;sm and face to face cri;sm
Reserved/Expressive
Edward T. Hall South Korea France High context / Low context
High Context High Context
Confusianism each individual is born in the middle of predetermined rela;onships and have to accomplish du;es’ posi;on in the hierarchy structure
strong emphasis on how a message is said rather than on just the words used
emphasis on face‐saving Link between High context and feminity unofficial rules are as important as wri]en rules
High/Low Context
Gender: South Korea in the 107th posi;on
South Korean women can have difficul;es to succeed in business but not foreign women
Special a]en;on to the appearance and attudes
‐ Mee7ngs :
Uncertainty avoidance and long ;me orienta;on so : . First mee;ngs do not to focus on work ; Focus on rela;onship . Expect to give an receive gins ‐ Business Cards :
High power distance so : . Emphasise on ;tle, . Accept business card with both hands ‐ Party and dinner with collegues : Accept if proposed to go : important business rela;onship building
Do’s Do maintain an element of modesty and humility with a Korean. (important in the Korean culture) Do make direct eye‐contact when adressing Korean business professionals . Do present business card with both hands, with a transla;on in Korean on the other side. Do wear a dark‐colored suit for Korean business mee;ngs Don’ts Don’ts use large gesture or facial expressions. Don’ts talk and laugh loudly in public. Don’ts sign a card with red ink. Red ink is used for death people. Do not remove your jacket unless the most senior South Korean does so.
Thanks for your a]en;on !
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