Avoidance as the first choice of default managemenr challenges in overseas Korean organizations.

• Author: Yang, Inju

INTRODUCTION

Korean companies have pursued localization of their foreign subsidiaries as a way of penetrating developed countries' markets. However, the level of localization, represented by the number and authority of local staff, and autonomy of their subsidiaries, is relatively low (Ahn, 1998). Korean managers do not appear to trust local nationals, and local nationals have a low opinion of their Korean bosses. Several explanations have been given as contributing factors of these practices: relative lack of international experience of Korean companies compared to American and Japanese organizations (Park and Sohn, 1998); lack of global human resource management (HRM) strategy (Bae, 2004); unfamiliarity with the local culture; and ethnocentrism (Ahn, 1998).

In this paper, we will review the behavioral assumptions and practices of Korean organizations overseas and the origins of these practices, considering in particular the causes of cross-cultural conflicts and their consequences. In the first section, the nature of Korean management is discussed. The importance of emotion in Korean organization is reviewed by investigating "jeong" exchange as emotional engagement and "nunchi" interaction as a communication process. In this vein, personalized informal social channels are examined as a critical consultation mechanism within domestic Korean organizations. In the second section, the behavior of Korean management overseas is considered, and how the cultural, emotional and communicational inf luences of the home (Korea) are replicated in the overseas management style even when management staff may not realize it. Finally, the issue of conflict management in the context of day-to-day interactions in an inter-cultural setting is reviewed.

CHARACTERISTICS OF KOREAN MANAGEMENT AND THEIR BEHAVIORIAL IMPLICATIONS IN OVERSEAS ORGANIZATIONS

While performance based evaluation is becoming more commonplace in Korea, traditional Korean human resource systems are characterized by lifetime employment and seniority-based evaluation (Ahn, 1998; Paik, and Sohn, 1998). Authority in many Korean companies is concentrated in senior managerial hierarchies, with major decisions requiring a formal procedure of approval from top levels of management (Chen, 1995). A common characteristic of the Korean management style is authoritarianism (Chang and Chang, 1994), reinforced by a clear hierarchical order and vertical communication (Jonathan, 1985). Such managerial behavior is acceptable in a hierarchy-based Confucian culture (Koo and Nahm,1997).

The globalization process in Korean companies in the last few of decades was quite different from that of Western firms or Japanese companies. Korean organizations tend to take more of a "learning by doing" approach rather than an intended strategic approach (Bae, 2004). There have been attempts to transplant headquarters" practices directly to their overseas operations without regard for cultural differences (Paik and Sohn,1998). The relationships between the headquarters and the subsidiaries are typified by the headquarters" dominance when their interests conflict (Ahn,1998). Subsidiaries of Korean firms, in most cases, have no international strategy for the adoption and establishment of HRM systems. Hence HRM issues are left to the Korean expatriate HRM managers" discretion (Bae, 2004). As a consequence, Korean managers transfer consciously or unconsciously what he or she is most familiar with; i.e. the home practice. Likewise, just as understanding an individual's behavior requires knowledge of their personal values and beliefs, so understanding an organization's behavior requires knowledge of that organization's management values and belief s (Bar-Tat, 1990) which in turn are influenced by societal values and beliefs. Therefore it is important to have an appreciation of the individual and organizational behavioral assumptions and values in the home country, Korea, which influence day-to-day (informal) organizational practice at home and overseas, especially those relating to conflict management.

CONFLICT MANAGEMENT IN DOMESTIC KOREAN ORGANIZATIONS

When they observe conflicts in the workplace, both Korean managers and subordinates intervene to bring about a resolution. Neither the supervisors nor the subordinates rely heavily on rules, policies, and procedures for managing disputes (Kim, Sohn, and Wall, 1999) as they are more inclined to personally assist in the resolution. The supervisors can be more assertive, especially when dealing with their own subordinates, and the subordinates tend to serve as deferential liaisons between the parties (Kim, et al., 1999). In a similar vein, the suppression of personal goals (Hwang, 1997-1998), and the use of a non-confrontational communication style in favor of maintaining a harmonious relationship (Chen and Chung,1994) are common conflict management approaches adopted in most Asian counties.

So how do values and belief systems underlie such practices? A critical issue here is to understand the nature of the social behavioral assumptions in Korea: the concepts of jeong and nunchi are central to this understanding.

CONFUCIANISM AND JEONG EXCHANGE IN KOREA

While Confucianism is not, strictly speaking, a religion but rather an elaborate code of social ethics, its impact on Korean culture has been pervasive (Lee, T H., 1998). Confucianism is a philosophy of humanity. Koreans apply the concept of family to other group activities such as organizations. The Korean word "hyo" (filial piety) encompasses not only one's immediate parents, but also previous generations through one's parents and horizontally through other senior people because they are somebody's parents (Yum,1987). In the work organization, these traditional values are ref lected in the subordinate's loyalty to the superior and the superior's benevolence toward the subordinates (Lee, TH.,1998). It is of ten considered an obligation for superiors to help subordinates, not only in their professional careers, but also in their personal lives (Chung, Lee, and Jung, 1998; Paik and Sohn, 1998), for example, by organizing marriage counseling for a staff member with marriage difficulties. Managers are expected to be mentors for their employees and at the same time make time to listen to their grievances about work as well as non-work related issues. These inherent roles are commonly expected and carried out in every Korean organization. Confucianism in Korea has been mainly manifested in the specific issues of human nature and feelings (Chung, 1995), which has reinforced the prevalence of a bond of empathy, similar to and an extension of family ties known as "jeong" in Koreans" everyday life. Jeong (the closest English translation is "empathy") promoted by a non-rational and emotional view of the world, binds social relations in Korea. Korean culture is often called a culture of jeong. Jeong is a complicated emotion with no simple definition--it can mean feeling, love, sentiment, passion, human nature, sympathy, heart, attachment, bond, or affection, that are felt in relationships by one person for another person, or for a group of people (collective) or even for objects. Jeong-exchange is hard-won, and not achieved easily. If you know someone for a long time, you may well develop jeong (Choi and Choi,1992).

Sympathy and concern for others are two major characteristics of those who practice jeong. Jeong in the broader sense can be examined via the concept of social capital. Social capital is understood roughly as the goodwill that is engendered by the fabric of social relations (Adler and Kwon, 2002). Through informal socializing outside of the workplace with other members, group members form group social ties. As jeong develops, the relationship moves gradually from being centered on instrumental, work-related purposes to having more affective elements, a change enabling transmission of a greater variety of resources, such as advice or support on personal issues. Jeong relationships as social ties can be appropriated for task-related advice, political support, strategic information, and emotional support.

Koreans tend to be fearful of breaking jeong at the expense of rationalism. In the Korean workplace, the official business of the day is conducted with polite formality, mainly based on organizational order and rank. However, regular events where teams or groups spend...