The Hyundai Group Essay Example for Free

The Hyundai Group EssayThe strikes of 1987 found their main base amongst workers in heavy industry, especially in Ulsan, the centre of Hyundais operations in South Korea. III. background knowledge of the studyThe Pressure built up during the harsh years of military dictatorship, economic boom, and steering bolt had caused several labor strikes. For thirty years, South Korea had been ruled by a military dictator and outgrowth calls for democracy had echoed through the 1970s and early 80s. South Koreas economic boom put Hyundai in a position wherein their strategy of low wages and hard work were no longer do in the face of rising competition from other developing nations and swelling demands from the countrys to a greater extent independent youth generation. At Hyundai, employees viewed the owners room as authoritarian in which the consensus is what the boss says it is. Also, caller-up had created an attribute that was loth to change with the times.IV. Point of viewChung J u YungThe founder of Hyundai, he is leaveing to tackle the impossible and unwilling to accept no from subordinates.Hyundai WorkersThey want better working conditions and environment. They have been looked down on in Korea. They tire outt have voices in steering decisions and experienced erratic job schedules with lower wages.V. Objectives1. To improve the management style and cope with changes along with time. 2. To address the dispute between the management of Hyundai and its workers, such that the result will provide a positive sum that will satisfy both parties concern.VI. SWOT analysisStrengths1.The Hyundai con personal credit line makes a wide range of products.2.The companys chairman is very persistent.3.Workers are disciplined, para-military, single-minded, and self-sufficientmachine. 4.The company has a good reputation.5.The company has low cost of production thereby low-priced products.Weaknesses1.Authoritarian leadership style2.Top management is non committed to high -tech.3.The company adopted paternalism corporate management.4. Labor union issuesOpportunities1.Large market luck2.Potential market for ASEANThreats1.Rising competition2.High dependency on exports3.Technology gap to advanced countriesVII. Alternative courses of actionA.Go. Give an outgrowth in labor wages by 28% and bonk labor union.Advantages1.Workers rights are protected.2.Higher wages uphold employees to work.3.Voices of employees are heard with the formation of labor union.Disadvantages1.Additional costs are incurred in the part of Hyundai.2.Lessen the flexibility of workers.3.Workers whitethorn demand follow-up increase in their wages.B. No Go. Do not give an increase in labor wages and do not recognize labor unions.Advantages1.No additional costs will be incurred regarding labor wages.2.Employees cannot easily complain.Disadvantages1.Employees will continue their labor stike.2.Employees remain unsatisfied with the current wage.3.They will not be motivated to work hard.4.T he companys operation will continue to be break up and demand for products is not met.C.Encourage participative management style, recognize labor union and increase workers wages and adjust working hours.Advantages1.Employees satisfaction and commitment to work.2.With the formation of labor union, workers right are protected.3.Participative management style allows the voices of employee to be heard.4.Workers die hard to be loyal to the organization.Disadvantages1.Costly. An increased in labor wages lessens companys profit.2.Shortening working hours smother production output.3.Labor unions can limit the flexibility of workforce.VIII. RecommendationAlternative C which is to encourage participative management style, recognize labor union and increase workers wages and adjust working hours is considered as the best alternative course of action. With this alternative, the demands of the workers are satisfied as well as those of the management. Participative management style allows the interchange of ideas between the management and workers. Workers rights are protected because of the formation of labor unions. Moreover, operations in Hyundai will be stabilized.IX. ConclusionHyundai compete a vital role in Koreas economic development, and that was intricately interdependent with a summate of other forces such as government, economic and non-economic factor. The authoritarian type of government greatly influenced businesses as shown in the management style of the Hyundais founder Chung Ju-Yung.The call for change in management style, higher salary increase and demand for respect caused the workers to rebel. Participative management style, creation of labor union, increased in wages and cut down working hours answer the said problem. The solution benefited the workers and the management.X. Courses of actionGovernment actions are beyond the control of Hyundais management. The degree of respect demanded by workers varies individually.