Seung-Ho Kwon - The Chaebol and Labour in Korea: The Development of Management Strategy in Hyundai

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The Chaebol and Labour in Korea

The Hyundai Business Group is the largest of the Korean conglomerates, or Chaebol, yet little is known about its labour-management strategies. In this book, detailed case studies of Hyundai's three core subsidiaries in construction,shipbuilding and automobile manufacturing, provide the basis for an examination of the labour-management policies and practices of this corporate giant.

Topics covered include:

• Labour-management strategies, from work intensification to the provision of welfare facilities.
• Management strategy towards trade unions, from confrontation and intimidation to the promotion of company sponsored unions.
• The organisation of work, from mechanisation and computerisation, to subcontracting and relocation of production facilities.
• The forces which shape these policies: the family ownership structure, the vertical and horizontal integration of subsidiary businesses and the responses of workers and their trade unions.

As Hyundai becomes an increasingly powerful global player, this book will prove to be of vital interest to policy makers seeking an exploration of the growth of the Chaebol and the impact of the current economic crisis on South Korean workplace industrial relations. It will also be essential reading for all those concerned with the study of labour management in newly industrialised countries.

Seung-Ho Kwon is a senior research fellow in the School of International Business at the University of New South Wales, Sydney, Australia.

Michael ODonnell is a senior lecturer in the School of Management and Policy at the University of Canberra, Australia.

Routledge/Asian Studies Association of Australia (ASAA) East Asia Series

Edited by Tessa Morris-Suzuki and Morris Low
Editorial Board: Dr Gemerie Barm (Australian National University),
Professor Colin Mackerras (Griffith University), Professor Vera Mackie (Curtin University) and Associate Professor Sonia Ryang (John Hopkins University)

This series represents a showcase for the latest cutting-edge research in the field of East Asian studies, from both established scholars and rising academics. It will include studies from every part of the East Asian region (including China, Japan, North and South Korea and Taiwan) as well as comparative studies dealing with more than one country. Topics covered may be contemporary or historical, and relate to any of the humanities or social sciences. The series is an invaluable source of information and challenging perspectives for advanced students and researchers alike.

Routledge is pleased to invite proposals for new books in the series. In the first instance, any interested authors should contact:

Professor Tessa Morris-Suzuki
Division of Pacific and Asian History
Research School of Pacific and Asian Studies
Australian National University
Canberra, ACT 0200 Australia

Dr Morris Low
Department of Asian Language and Studies
University of Queensland
Brisbane, Queensland 4072
Australia

Routledge/Asian Studies Association of Australia (ASAA)
East Asia Series

1. Gender in Japan
   Power and Public Policy
   Vera Mackie
2. The Chaebol and Labour in Korea
   The Development of Management Strategy in Hyundai
   Seung-Ho Kwon and Michael ODonnell
3. Sources of Postwar Japanese Nationalism
   Social Imaginaries and National Hegemony in the Process of Modernity
   Yumiko Iida

The Chaebol and Labour in Korea

The development of management strategy in Hyundai

Seung-Ho KwonandMichael ODonnell

First published 2001
by Routledge
11 New Fetter Lane, London EC4P 4EE

Simultaneously published in the USA and Canada
by Routledge
29 West 35th Street, New York, NY 10001

Routledge is an imprint of the Taylor & Francis Group

This edition published in the Taylor & Francis e-Library, 2003.

2001 Seung-Ho Kwon and Michael ODonnell

All rights reserved. No part of this book may be reprinted or reproduced or utilised in any form or by any electronic, mechanical, or other means, now known or hereafter invented, including photocopying and recording, or in any information storage or retrieval system, without permission in writing from the publishers.

British Library Cataloguing in Publication Data
A catalogue record for this book is available from the British Library

Library of Congress Cataloging in Publication Data
Kwon, Seung-Ho, 1964
The chaebol and labour in Korea : the development of management strategy in
Hyundai / Seung-Ho Kwon and Michael ODonnell.
p. cm.
Includes bibliographical references and index.
1. Hyndae Chonghap Sangsa (Korea)Management. 2. Industrial managementKorea (South)Case studies. 3. Industrial relationsKorea (South)Case studies. 4. Conglomerate corporationsKorea (South)Case studies. 5. Big businessKorea (South)Case studies. 6. CapitalismKorea (South)Case studies. 7. LaborKorea (South)Case studies. I. ODonnell, Michael, 1965- II. Title.

HD2980.Z75 H966 2001
331.20469095195dc21

00-050993

ISBN 0-203-36110-5 Master e-book ISBN

ISBN 0-203-37366-9 (Adobe eReader Format)
ISBN 0-415-22169-2 (Print Edition)

In memory of Ra Oksun and Seamus ODonnell

Figures

Changes in the business activities of Hyundai and the growth of subsidiary companies, 1946 to late 1960s

Changes in the organisational structure of Hyundai Engineering and Construction Corporation (HECC), 195071

An example of sectional work organisation in the Soyang River Dam Project, 1967

Employment structure in HECC, 19461950s

Classification of permanent,full-time employees by position and formal educational

qualification in HECC, 1966

Changes in the employment structure in HECC, 1950s to late 1960s

Changes in total sales of the five largest chaebol, 197583

Formal managerial structure of Hyundai from 1979

Kinship structure of Hyundai by managerial and family hierarchy, 1979

Changes in the kinship-based structure involving Chung Juyung's family members from the 1970s to early 1980s

Assembly production lines for a passenger car at Hyundai Motor Company (HMC), 1968

Production structure of HMC for passenger cars, 1975

Organisational structure for production work practices at HMC, 1960s and 1970s

Changes in the size of ships by Dead-Weight Tonnes (DWT),Hyundai Heavy Industries (HHI), 1973-82

Basic structure of the assembly production process in HHI

Changes in the hierarchical structure of work organisation for shipbuilding in HHI, 197481

Changes in organisational status of labour related units at Jubail workplace; before and after the strike of March 1977

Growth structure of Hyundai in 1994 by type of business, with foundation year

The managerial structure in Hyundai by kinship with Chung Juyung, since the 1980s

Organisational chart of HHI Trade Union, 1993

Decision-making flow structure for industrial relations policies and practices in Hyundai, 1990

Work organisation structure; a domestic workplace in a HECC steel frame bridge project, 1989

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