Large change in thorough HR system
Outstanding changes in Staffing, Development system
North America Tour ProgramGlobal Executive MBA Career Development Program
2003’ LG Group: first large Korean conglomerate to announce a change to a holding company systemLGE got more freedom to pursue independent HR practices and encouraged transparency and professionalism in management
Lack
2.4. Strategic change into Star Model
There had been fundamental changes in HR strategies which can be described as an alteration from Bureaucracy model to Star model. The changes which cover thorough HR systems of LGE from staffing to promotion system became the foundation of massive growth of LGE from 2004 and afterwards.
One of the biggest changes from Bureaucracy Model to Star Model
to extend their term of officers.
Company promote their long plan.
Inequality between genders in reward systemLGE pursue gender equality as their shared values
Actual circumstances
Years of service : 5.02 years for women, 9.56 years for men
Gender ratio : Employee - about 16%, Directors - 1.6%
No chief directors
Fundamental cause
Inadequate supporting system for women
system to the parent company has several advantages. The parent company LG is responsible for financing and LG electronics makes efforts to increase its value and concentrates on its own business. In this system, the owner only suggests general ways to go and the independence of CEO’s management is guaranteed. Therefore, LGE can be managed effectively. The management can be transparent in that