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LG Electronics Strategic Alliances and HR Management Case Analysis

Strategic Alliances and Human Resource Management


International businesses and globalization are akin when it comes to the need for a respectful as well as successful conduct business. So as to fully be able to grasp and be conscious of the things that are fundamental to ones operations will require that they recognize the culture of others. Being able to understand the customers is a vital aspect in all business in the entire world irrespective of where one is planning on selling their products or services. Along the same line, it is worthy to note that each and every culture has there customs, their history as well as a way of living. Every culture has a real and sensible reason as to why they are doing things the way they are doing them. Owing to this reason, one needs to be conscious and respectful of the culture of their client’s culture just as they are to theirs as this will ensure that the business and the clients have an efficient interaction. Business people who are having understanding of other cultures that are foreign to their native cultures are able to adapt to those other cultures and be able to interact with foreign clients as well as other international associates because they are able to understand other cultures and they show respect to what those other cultures dictate. Being able to understand other cultures is an important and crucial aspect for organizations, companies, individuals, businesses and even countries as it dictates the sort of interactions that they are able to sire (Morgan & Vardy, 2006). One need to remember to do their homework in that they need to fully understand as well as establish respect and trust for the various cultures that they are going to or that they are interacting with. As brought out in the sections of this paper, the discussion is mainly based on the economy of South Korea and the business connections in the South Korean economy, the positive as well as negative characteristics of the South Korean economy, an examination of South Koreas human resources and finally it taps on the evaluation of the strategic alliance partnerships, The paper draws all this content using LG Electronics as the case study. The vital aspect of this paper is to give an understanding of the varied work cultures and how they operate as well as respecting the businesses and normal life. Importantly, the paper enhances the knowledge to respect and understand differences even in businesses.

LG Electronics Strategic Alliances and HR Management Case Analysis

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  1. Explain the organization and purpose of chaebols.

The existing form of organization for businesses in Korea is chaebol. The chaebol is basically a diversified conglomerate of businesses that was founded in South Korea back in the 1960s. The origination of chaebols in South Korea brought about several global multinationals that are having big operations globally. In the Korean language, chaebol means a business family or plainly, a monopoly. The organization of chaebol includes a single company or several companies yet every chaebol is managed, controlled and owned by a particular family dynasty which is in most cases that of the group’s founder. The majority of large Korean companies are diversified conglomerates and LGE is just part one among them. Chaebols have a centralized ownwership structure with the founding family being the epicenter of power.

Chaebols are charged for creating imbalances in the economy as they do not give the small and medium businesses chances to develop as well. The Korean government has been forced to come in and try to neutralize the powers of chaebols and their influence over the years but the efforts have not been able to record much success.

There is some sort of similarity between the structure of chaebol and that of keiretsu business groups in Japan as well as there are clear cut differences among the two structures. The chaebols are controlled and owned by the founding families whereas the keiretsu are run by professional managers who are mostly not the owners of the companies. The same can be said about the ownership structure of the two, in chaebols, the ownership structure is centralized while in keiretsu it is decentralized.

  1. Identify the positive and negative characteristics of chaebols for the local economy and for the global economy, along with what role they play in the South Korean economy.

To begin with the positive, Chaebols are economies of scope and scale. Since they are diversified into different organizations, they are made up of varied companies that are capable of achieving economy scales. The companies forming the chaebol lower the average cost per unit via which increased production is achieved. The other positive is the knowledge and experience on diversified businesses.Chaebols has accumulated knowledge as well as experience coming in from the various companies making up the chaebol. In turn, this assists the chaebol when it comes to improving decion-making as well as finding new businesses. Reputation and brand name make the other positivity of chaebols. Having an established reputation and recognition for a specific chaebol makes the brand name easier to diversify. Chaebols also make it easy to raise and collect funds for capital projects as well as offer sponsorship for R & D (Burki, 2012).

Moving on to the negative traits of chaebols, they are lacking the transparency and autocratic business CEO. Since the chaebols are controlled by the founding families, the CEOs mostly double up as owners and thus making decisions is not always the best. This structure of chaebols also makes it hard for board or directors and auditors to take part in the decision making process of the chaebol. The other negative trait of chaebols is that they are prolonging the lives of unprofitable businesses. The management structure of chaebols is always growing in size and it reaches a point where now profitability is not a priority.This is explained by the aspect that when a business is deemed not to be worthy enough, it is maintained other than being cut out and this results in shrinking of smaller companies owing to insufficient capacity.

  1. Identify the characteristics of LGE’s human resources strategy. 

LGE has a working environ that is enabling its employees to demonstrate their full abilities, maintain focus on work as well as develop value for the clients. The LGE employees are encourages having creative and individualistic approaches to challenges as they maintain rigid emphasis on skills and performances.

Autonomy and creativity– LGE have respect for diversity and creativity and thus permits its employees to full act on their creativity. The other trait is competence in that LGE understands that competence is vital for performance and therefore they are considering competence as a vital factor in their decision making. Performance-based rewards are the other trait. LGE rewards the employees based on their performance as a form of motivation.

Training is the other trait where LGE educates its employees in a bid to encourage development and growth as well as instill professionalism that they need in the company. LG Electronics boasts of training centers all around the globe where they are offering varied educational programs to the LGE employees. Training is an opportunity that LGE offers to its employees as per their ranks and jobs with the aim and intention of encouraging them if not permitting them to apply the latest technological aspects to their day o day operations.

Also Study: Importance of Training in Human Resource Management

Rewards is the other human resource strategy at LGE as LGE uses a competitive and unique reward system where they are taking into account the situations of their employees by country, region as well as their job. The reward system used by LGE is to motivate the employees so as to perform better and enhance their life quality.

Equal opportunity is as well granted by chaebols. Having equal opportunities is fundamental to building trust among individuals. LG Electronics has equal opportunity to its clients and employees as a human resource strategy. By equal opportunities, LGE does not discriminate in terms of gender, religion, age, ones race or even nationality.

The other aspect is the long-term perspective. In LGE’s human resource policies, maintaining a long term perspective is a foundation. The human resource programs at LGE’s human resource are designed with a long term perspective in mind and they are implemented with persistence as well as dedication.

  1. Identify how this HR strategy is helping the company to deal with the diversity.

The workplace diversity improves LGE since it is giving varied view points when it comes to decision making. As thus, this widens the reach of the country and permits every individual to have an equal chance of developing. It is however worthy to note that diversity cannot be efficiently implemented without having a passionate approach as well as cooperation from the management so as to confront the issues as well as barriers that are likely to arise along the way (Glenn, 2010). As thus, implementation requires a number of efficient strategies including recruit diversity where individuals with different backgrounds are considered.

The other strategy is training of employees on diversity as this allows the employees to gain some pertinent issues from those with experience. Encouraging interaction is also a strategy as this ensures that when divert issues arise, they are discussed in non-confronting ways. These interactions encourage employees to learn better communication techniques and goals of their own.

HR Strategy also helps LGE with recruit diversity. Basically recruiting employees is the first step when it comes to implementation of a diversity plan. The individuals who are recruited need to have a particular background and be someone who is ready to embrace diversity. This can be ensured without necessarily discriminating against the applicants who are qualified and does not meet this particular criterion. The hiring process is made t cover more diversity issues. It is thus necessary that when looking for applicants, they need to be informed that they have to be culturally aware and be willing o work with various walks of people. It is also important to note that when recruiting employees, it is vital to look for individuals who resemble the demographics of the particular company (Harvey & Allard, 2015). This is because hiring employees with the clients they are going to serve in mind ensures that the organization better reaches out to its customers.

Fairness as well enhances diversity. Treating people fairly and with respect to their differences enables a firm deal successfully with diversity. Being fair in this case entails considering the culture of every individual and trying not to be insensitive lest you breed resentment and bring about feelings where particular employees feel left out when activities are organized in a way that they are not able to attend, say on their religious day.

Encouraging interaction is also a strategy that enhances diversity. Being able to identify diversity issues at the work place and discussing them with the employees in ways that are not confronting encourages the employees to learn more about communication strategies. The employees should also be encouraged to work with their fellows despite their cultural differences as this will enhance their talents and goals as well make them appreciate each other for their worth.

Firms also need to have conflict resolution plans that are keeping and having diversity in mind at every one point. Conflict inevitably arises due to diversification at the workplace and that it is mandatory to have a conflict resolution plan that works at mending any stained relationship at the workplace. Additionally, it is important to keep a close relationship with human resources when the firm is having people who are capable of handling conflict resolution strategies (Abbott & Meyer, 2015). It is the Human Resource professionals who are having helpful insights that directly benefits conflict resolution.

HR Strategy is also important to keeping an open door policy at work where the employees are comfortable in expressing their concerns to their co-workers and supervisors. Open-door policy removes the pressure that is mostly associated with having diverse groups in a workplace.

  1. LGE has established a number of strategic alliances with partners from all over the world. Select one of these alliances and analyze and evaluate its outcome

LGE is coming up with technological advances as well as identifying business chances via a number of partnerships with some other leading companies in the world. LGE maintains an open mind when coming up with new technologies through the partnerships that it enters with most successful companies. One such partnership is that between LGE and Intel where the two companies came together to promote the Intel Wireless Display (WiDi) technology. WiDi will be embedded in LGE TVs. Intel WiDi is a connection interface that permits instant high definition viewing of content in notebooks among other external mobile devices on large screen tvs, monitors or projectors.

  • Abbott, P., & Meyer, M. (2015). Get your HR system audited: HR standards: governance. HR Future4(Apr 2015), 34-35.
  • Burki U. (2012),Institutional Voids and Corporate Governance: A Conceptual Understanding: Retrieved from Url: https://search.proquest.com.libproxy.edmc.edu/cbcacomplete/docview/1040021188/2AC07E8B45A84AE8PQ/1?accountid=34899 Charlotte M. (2010) The changing role of Chaebol: Retrieved from Url: https://web.stanford.edu/group/sjeaa/journal102/10-2_09%20Korea-Powers.pdf
  • Glenn G. (2010): Diverse Workforce Requires Balanced HR Leadership: Retrieved from Url: https://www.workforce.com/articles/diverse-workforce-requires-balanced-hr-leadership
  • Harvey, C. P., & Allard, M. (2015). Understanding and managing diversity. Pearson.
  • Morgan, J., & Vardy, F. J. (2006). Diversity in the Workplace (No. 6-237). International Monetary Fund.


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