IBS Center for Management Study
HR Problems in Hyundai Motor Company.
This situatio was written by Ekta Agarwal, under the path of Sanjib Dutta, IRRITABLE BOWEL SYNDROME Center pertaining to Management Analysis. It was put together from released sources, and is intended to be applied as a basis for discussion in the classroom rather than to illustrate either effective or ineffective managing of a supervision situation.
2004, IBS Centre for Administration Research. Every rights arranged. To order copies, phone +91-08417-236667/68 or write to IBS Center for Supervision Research (ICMR), IFHE Campus, Donthanapally, Sankarapally Road, Hyderabad 501 504, Andhra Pradesh, India or email: [email protected] org
HUMAN RESOURCES Problems in Hyundai Motor Co.
" If the company refuses to agree to our needs, we have no choice but to go on a full-fledged strike. As the union leader, I cannot control the anger of the union. вЂќ -Hyundai union head Kim Kwang-shik, July 1998. 1
" Laws and principles, along with dialogue and endanger, should be honored in dealing with labor issues. вЂќ
-Choi Kil-seon, director and CEO of Ulsan-based Hyundai Heavy Industries in an interview for the Washington Moments, June 2003. 2
The Hyundai Motor Company. (Hyundai), Southern region Korea's largest automobile maker was in the midst of acute labor problems back in the 1990s and early 2000s. Until the the middle of 1990s, Hyundai had been effective in controlling South Korea's traditionally bothersome labor unions. It had kept strikes away with nearly double-digit spend hikes and other benefits. But the Southeast Cookware crisis3 and the general downturn in the auto industry in the late 1990s pressured the company to restructure and cut down careers.
Yet , the Hyundai labor union and personnel rebelled resistant to the management's work to restructure the organization and the company faced strikes and worker unrest repeatedly coming from late 1990s to early on 2000s. People of the Hyundai group4 such as the Hyundai Development and Architectural and Hynix Semiconductor were facing economical troubles at the time, and had been on the edge of bankruptcy. Founder leader of the Hyundai Group, Chung Ju-yung commented, " We could losing each of our international competition. вЂќ5 Regretting the continuous labor unrest, he explained, " Pay have bending in 36 months and production has gone straight down. вЂќ6
The labor problems Hyundai faced were not an isolated case in South Korea. By the overdue 1990s, the chaebols got grown in large mismanaged structures numerous having a lot of unprofitable products. During the economic slump in the late 1990s, most of these chaebols felt the necessity to downsize. There was also increasing pressure through the IMF on the South Korean language government to attempt strict economical reforms and restructuring measures. The labor unions, which have traditionally recently been very strong and influential in South Korea, felt endangered. Since careers were being slice, social 1
Robert Head, " Auto layoffs spark general strike call in KoreaвЂќ, www.wsws.org, 23 July, 1998. Jong heon Shelter, " Korea jolted by simply labor protestsвЂќ, The Wa Times, 06 26, the year 2003. The Southeast Asian turmoil happened due to a deficit of foreign exchange that had triggered the value of foreign currencies and collateral shares in Thailand, Indonesia, South Korea and other Southeast Asian currencies to land drastically.
Hyundai Group, a sizable multinational conglomerate (or chaebol) of Southern Korea was involved in many organisations including ship crafting, car production, construction, selling, financing and electronics. Later on, some corporations of the group just like Hyundai Motor Company, Hyundai Heavy Industrial sectors, Hyundai Architectural and Construction were divide off into separate corporations. Lawrence Minard, " The Tiger was just nappingвЂќ, Forbes, Apr, 1991, Volume. 147 Issue 5, p140. Lawrence Minard, " The Tiger was just nappingвЂќ, Forbes, April 1991, Vol. 147 Concern 5, p140. 1 ...
Sources: 8. " Hyundai below pressureвЂќ, www.bbcnews.com, August eight, 2000.
9. " Hyundai plans turnaroundвЂќ, www.bbcnews.com August 17, 2150.
12. " Korean hits spread to HyundaiвЂќ, www.bbcnews.com, June twenty four, 2003.
Magazine http://www.inq7.net/wnw/2003/jun/26/text/wnw_1-1-p.htm Summer 25, the year 2003.
14. Jong Heon Lee " S. Korea jolted by labor protestsвЂќ The Washington Instances, June 26, 2003.
Week Online, This summer 26, the year 2003.
18. " Hyundai Electric motor strikes cause $580 mln in shed exportsвЂќ, www.wardsauto.com, July 40, 2003.