Hyundai Motor Group Organizational Behavior

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Another aspect of change was in the structural organization of the company. The successor to Chung Ju-Yung, Mr. Se Yung Chung, redesigned the structure of Hyundai from a functional organization to a divisional organization in an effort to decentralize power, increase motivation, cost reduction and market diversification. These changes forced Hyundai to effectively downsizing because of macro-environmental factors. One such factor was the South Korea economic slump of the 90’s whereby the sales of the company were adversely affected because the company’s six plants were operating at only 40% of their capacity (Center for Management Research, 2014).
The tolerance of the company in accepting external business factors that influenced its existence was stained in the 1990s and 2000’s when the company experienced labor unrests. This further compounded the capacity of the company to continue employing a huge number of workers as its struggled to cut costs in the face of dropping sales. As a result, a lot of workers were laid off, and those retained suffered degrading pay grades and benefits.
Organizational Changes in Hyundai
The organizational changes instituted by Hyundai can be summed up by the company’s Human Resource Development agenda which is to develop creative talent and cultivate a collaborative culture in order to improve business performance and build value (Hyundai, 2014). This essentially means that the company is focusing on facilitating growth based on common goals and common values by positively motivating their workforce. Therefore, the company has instituted organization changes in the following capacities; leadership, workforce, and society. In regards to workforce management, the organization has instituted a four...

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